Asked on 23 Nov 2020
With $2k, should I go for STI ETF or Robo-Advisor?
Sudhan, Content Strategist (Investment Lead) at Seedly
Updated on 24 Nov 2020
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.
Jiayee, Salaryman at some company
Top Contributor (Dec)
Answered on 23 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 do monthly updates on my portfolio returns so you can take a look here.