I am a beginner planning to invest a starting amount of 2k instead of leaving it in a bank account, I am also able to set aside about $100 every month. My question is go for STI ETF or Robo-Advisor? - Seedly
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Melvin Lim

Asked on 23 Nov 2020

I am a beginner planning to invest a starting amount of 2k instead of leaving it in a bank account, I am also able to set aside about $100 every month. My question is go for STI ETF or Robo-Advisor?

With $2k, should I go for STI ETF or Robo-Advisor?

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    Hi Melvin, it depends on your investment objectives really.

    If you are looking for income, the STI ETF has a historical distribution yield of 4% (source: https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3), which is impressive amid the low interest rate environment.

    The STI is not that bad after all and I feel investors are seriously overlooking it. I penned my thoughts here: https://blog.seedly.sg/investors-overlooking-straits-times-index/

    However, if you feel there's better growth with a US index (or other indices) and you don't need the income for now, going the robo path might be better.​​​

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    Pls dont buy sti, super terrible index. rather go with robo

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    Chris

    Chris

    Level 6. Master

    Answered 1w ago

    Short answer: Choose the roboadvisor. Assuming you're a young adult, capital appreciation is probably the most important for you. Going through a robo-advisor, which can invest in global/US equities is probably a better bet for you!

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    M

    myfinancemarathon

    Level 5. Genius

    Answered on 27 Nov 2020

    Given that you just started investing, I highly recommend you going with Robo-advisors with a global portfolio. This will give you a more diversified portfolio and greater growth potential.

    I personally have investments in 3 of them namely Syfe, StashAway, and DBS DigiPorfolio.

    I do monthly updates on my portfolio returns so you can take a look here.

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    Axel Blasé

    Axel Blasé

    Level 5. Genius

    Answered on 27 Nov 2020

    Robo-advisors. Look into Stashaway, Syfe or even Singlife or Autowealth.

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    FO

    Frederick Ong

    Level 2. Rookie

    Answered on 26 Nov 2020

    Hi, STI etf is slow growth which i will nvr touch. You can try SYFE "100% equity" which invest to etf like QQQ ETF which holds apple amazon google and more. U can put a lump sum of 2k and 100 per month :) hope the advice helps

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    Zack Chow

    Zack Chow

    Level 2. Rookie

    Answered on 26 Nov 2020

    My sti lose money, robo earn. Sti mainly banks and right now, its low interest rate environment. Check historical performance of sti and you realised that it has stagnant.

    Tldr. Kinda regretted putting my money in sti

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    Robo

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