facebookHi, wondering if G3B STI still makes any sense to do a DCA. Returns a year is a bout 4% dividends which isnt attractive. Should I sell once the market recovers or is there something I am overlooking? - Seedly

Shawn Teo

15 Aug 2020

Stocks

Hi, wondering if G3B STI still makes any sense to do a DCA. Returns a year is a bout 4% dividends which isnt attractive. Should I sell once the market recovers or is there something I am overlooking?

Can you really make decent returns with the G3B STI nowadays or is there better vehicles or investments?. If there are alternative options, why do some people still invest in the G3B STI

Discussion (7)

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Kevin

15 Aug 2020

Mechanical Engineering at Nanyang Technological University

Think it's something you can have, not should have if you can afford to DCA consistently into it over a long time. I feel its a relatively okay-ish way to contribute to your passive income stream but like what many say, it's not the best!

Nope, STI ETF is really bad imo. It is good for beginner who just want to get started in investing, but it is not wise to hold it over the long term (opportunity cost)

You will fare much better by investing in VOO, VTI, QQQ, CQQQ, and many more. STI ETF is just never the first and best choice

Look at the number of companies in STI. How many of them are GLC?

The dividend could be a pro argument.

but who could promise that 4% will be distributed in the future?

and S-REIT ETFs have (had?) even higher yield.

then look on the STI comparison chart in this link (where dividends however are not included)

https://seedly.sg/questions/what-is-your-genera...

Treat them as dividend paying holdings. Cash-cow. Lack of competition, therefore, yields are of high...

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