facebookWith a high risk appetite and monthly DCA of around 300, should I invest in SG REITs or global ETFs? - Seedly

Anonymous

04 Aug 2020

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General Investing

With a high risk appetite and monthly DCA of around 300, should I invest in SG REITs or global ETFs?

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Ng Wei En

11 Jun 2020

Analyst at Mastercard

If you have a high risk appetite, you can look at a mix of ETFs with lower weightage on S&P500 ETFs and higher weightage on a mix of ETFs in emerging markets, innovation and technology which have recorded very high gains in recent months. But then again, past performance is not indicate of future results. However, DCA of $300 might be difficult for you to pick a basket of ETFs due to transaction cost. You can consider looking at kristal.AI and you may find ETFs that match your interest and risk appetite. They do not charge transaction fees for first 25 trades per calendar year up to $50k AUM.

SG Reits will be relatively lower risk as you are looking to gain more from dividends(5% on avg based on past) as opposed to capital gains since prices are usually more stable. However, special circumstances like the recent Covid-19 situation saw SG-Reits took a beating. It has since recovered quite a bit but going forward, the recovery of SG-Reits and dividend yield is still unclear. But one thing that is noticeable is , SG-Reits pays well in dividends and are relatively stable in price based on history.ā€‹ā€‹ā€‹

Global ETFs for the long-term, if you are really blind to short-mid term fluctuations as you held out (high risk appetite)

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