(ETF Discussion) SGX: Nikko AM STI ETF (SGX: G3B)? - Seedly
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Asked 4w ago

(ETF Discussion) SGX: Nikko AM STI ETF (SGX: G3B)?

Discuss anything about this ETF and if you would buy or sell this ETF. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment.

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Nikko AM Singapore STI ETF is managed by Nikko Asset Management Asia Limited — one of the largest asset managers in Asia.

The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the Straits Times Index (STI), or upon the Manager giving three (3) months' prior written notice to the Trustee and the Holders, such other index which tracks the performance of Singapore listed equity securities. The Straits Times Index is compiled and calculated by FTSE International Limited and represents the top 30 companies listed on the SGX-ST Mainboard ranked by full market capitalisation.

Information accurate as of 22 July 2020.

Fund Details

Inception Date

  • 24 February 2009

Base Currency

  • SGD

Fund Size

  • SGD 354.32 million (As of July 2020)

Total Expense Ratio

  • 0.30%

Distribution Frequency

  • Semi-Annual

3-Year Annualised Tracking Error

  • 0.17%

Performance

Fund Holdings

The Nikko AM STI ETF is heavily weighted with financials, with DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank account for 38.3% of the ETF.

Sector Allocation

In terms of industry allocation, financials take up a huge 41.1% of the ETF, followed by REITs, and industrials.

Investors

The Nikko AM STI ETF is suitable for

  • Investors who want the familiarity of investing in Singapore blue-chip companies

  • Investors looking for a low cost and simple way to get exposure to the Singapore stock market

  • Investors who don’t have time or resources to perform individual stock picking or company research

The Nikko AM STI ETF provides immediate exposure to the top 30 companies in Singapore, and it is great for beginners who are starting out to invest but are not willing to take the risk of overseas investment. However, it is heavily weighted on financials, which is an issue if you are looking diversification. Furthermore, historical performance has shown that the STI has underperformed other regional or global indexes, and hence this is another thing that investors should consider before putting their money into the Nikko AM STI ETF

Another ETF that tracks the STI is the SPDR STI ETF (SGX: ES3).

References were made to Nikko AM STI ETF Fact Sheet. Click here to read more!​​​

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