How do I buy SPDR S&P 500 ETF in Singapore? Is there a RSP for this? - Seedly

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Asked by Anonymous

Asked on 24 Jan 2019

How do I buy SPDR S&P 500 ETF in Singapore? Is there a RSP for this?

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Hi anonymous, this is how you can buy the SPDR S&P500 ETF:

  1. Open a CDP account

  2. Open a brokerage account with brokerages such as Vickers, POEMS etc

  3. Buy online

You can't really "RSP" into an ETF as it is not a fund but a security that is listed on the SGX. Besides, as there is a min brokerage fee per transaction, if you buy small amount of say $1000 per month, the cost of transaction is too high and it will eat into returns.

Hope this helps!

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Cheng You Yi
Cheng You Yi

25 Jan 2019

To add on, you can consider buying on a quarterly basis rather than monthly basis to reduce the cost of transaction.

Not possible to rsp into S27 (stock code for counter) here in Singapore. With a minimum of 10 shares per lot (if I'm not wrong), you are looking at about USD 2650~ at a minimum for each transaction if you choose to buy through the sgx listing. On the US side (SPY is the US equivalent ETF), its minimum one share per transaction, but depending on your broker, fees can kill. Not to mention the 30% withholding tax on dividends. What's your objective for buying into the S&P500?

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Jonathan Chia Guangrong
Jonathan Chia Guangrong

25 Jan 2019

Annualised returns for s27 or SPY are about 8.99% since inception. If you can stomach some volatility and have a long term holding period, may be a good choice. Pair it with bonds to balance out your portfolio so that your downside poses less risk. For me, I'd rather not hold SPY but trade options on it instead. Much better returns compared to buy and hold.
Question Poster

25 Jan 2019

Thanks for your expert views, Jonathon.
Yixiong Chang
Yixiong Chang
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Top Contributor (Dec)

Level 5. Genius
Updated on 25 Jan 2019

In Singapore, u can only rsp into few etf counters, like the STI etf and few provided by nikkoAM. Eg, POSB investsaver, Philips Share buiders plan etc

If u want to rsp into etf, u have to go to overseas brokers.

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