facebookWhich S&P500 etf listed on which market would you recommend to someone in Singapore? Do you prefer a S&P500 ETF or an international stocks ETF? - Seedly

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Anonymous

05 Mar 2020

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SeedlyAMA

Which S&P500 etf listed on which market would you recommend to someone in Singapore? Do you prefer a S&P500 ETF or an international stocks ETF?

AMA The Fifth Person

Discussion (13)

What are your thoughts?

Hello!

Regarding this question, I definitely think that if you are a beginning investor, most professionals would advise you to invest in the S&P 500, and by proxy its ETF. This is because the S&P 500's composition is made up of the United State's 500 largest companies by market capitalization, which essentially provides fantastic diversification opportunities, and create stable market returns. More importantly is the ability of the S&P 500 to bounce back from recessions - thus far the S&P is on a long term uptrend, and after every recession we see that the S&P is able to bounce to twice, even thrice the previous high before the next business cycle hits. This general uptrend gives you great certainty that a "buy and hold" strategy will be able to generate positive total returns at the end of the day if you hold in for the long term. International stock markets may not have ability to do so, as evidence by Japan, whose stock price have yet to really break out from the real estate bubble highs of the 80s.

Essentially, it is on the assumption that the market will continuously grow at a steady pace that buy and hold strategies, and thus passive trading strategies, can provide steady returns in the long run. The ETF that is recommended by Mr Victor Chng is an excellent example of a passive ETF that has low fund management costs, ensuring that you obtain the maximum returns.

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Victor Chng

Victor Chng

07 Jun 2019

Level 7Β·Co-Founder at Fifth Person Pte Ltd

Hi,

I prefer S&P 500 ETF, you may want to consider Vanguard S&P 500 ETF.

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** **Is S&P500 etf suitable to be converted to warrwants.What are they on Singapore stock market?tha...

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