Hi, Im 22 and have around $5k that I would like to invest. Currently have a DBS Vickers account and looking to invest long-term. Should I start with STI ETF (ES3), or Lion Phillip S-REIT ETF (CLR)? - Seedly
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Anonymous

Asked on 20 Aug 2020

Hi, Im 22 and have around $5k that I would like to invest. Currently have a DBS Vickers account and looking to invest long-term. Should I start with STI ETF (ES3), or Lion Phillip S-REIT ETF (CLR)?

What about A35, VWRA, IWDA...? super overwhelmed but I really want to get started. Is it a good time now? Given the covid-19 situation. Please help.

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X_Y

Level 5. Genius

Updated on 20 Aug 2020

Let me help you out a little here. I will base my comments on what investments you have suggested as I assume you have done a little bit of homework and respect your shortlisted options.

When starting out to invest, you do not want too much volatility (i.e wide swings) in your portfolio. Too much of it will kill you psychologically. Thus, start with a diversified portfolio that consists of assets all around the world. This leaves you with IWDA and VWRA. Both are rather similar with a correlation of 0.99933 (See below). Thus, just choose 1.

Next, your approach is to build in your position gradually through a Dollar Cost Averaging (DCA) method, can be monthly and quarterly. If Vickers charges a high commission, you got to increase your DCA horizon (eg. quarterly or semi-annually). Or comb through this forum for recommendations on good platforms.

After you start to own assets all around the world and pick up a few investment strategies along the way, you can start to look at other regions, themes and sectors and start drilling down into specific assets that you are good at. The more depth you drill down, the more specific your risk/return/volatility will be.

I have done up some charts for you based on what you have listed (See link below). Take a look and hope they help to give you some perspectives.

Link: https://dl.orangedox.com/fund-analysis-pdfs

File Names:

ISHARES CORE MSCI WORLD (IWDA LN Equity)_updated_200820

VANG FTSE AW USDA (VWRA LN Equity)_updated_200820

LION-PHILLIP S-REIT ETF (SREITS SP Equity)_updated_200820

NIKKO AM SINGAPORE STI ETF (DBSSTI SP Equity)_updated_200820

ABF SINGAPORE BOND INDX FUND (SBIF SP Equity)_updated_200820

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Lee John

Lee John

Level 8. Wizard

Answered on 20 Aug 2020

Neither. Better off putting your money in a robo which invests in a diversified portfolio which can maximise your risk appetite for the most growth.

Looking at your options, it seems you are unsure of whether to take a growth or dividend approach. For someone young like yourself, go with growth since you have not amassed a critical sum of capital for dividend investing.

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Given your age, I would suggest something that is higher risk with the potential of higher returns. You currently does not have much commitments to consider, like housing loan, children, retirement. Investing in STI would be a bad move because it does not increase much as compared to the US market.

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Jaye

Level 6. Master

Answered on 20 Aug 2020

How long is your long term, is it 10 years? You might want to answer that first.

Next, I would strongly discourage investing in STI and S-REIT. I would instead look for S&P 500 (e.g. VOO) or indices like for e.g. Vanguard Total Stock Market Index Fund (VTSAX) & Vanguard Total Bond Market Index Fund (VBTLX)

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