I am a fresh graduate, looking to start my investment journey through ETF. I can safely manage $300 monthly. Is it a good amount to start? - Seedly
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Anonymous

Asked on 14 Jul 2020

I am a fresh graduate, looking to start my investment journey through ETF. I can safely manage $300 monthly. Is it a good amount to start?

I am looking to buy into STI ES3 and IWDA as a start to have an exposure to both local and international market. STI through POSB or FSMone, and IWDA through Stanchart. Is $150 a month for each ETF enough to start?

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JC

JC

Level 6. Master

Answered on 14 Jul 2020

Would suggest you to do a lump sum (e.g invest every quarter) instead of monthly as your amount is quite small. If you do it as $150/month, you’ll be incurring quite a hefty brokerage fee. Also, in my opinion, STI isn’t really worth investing tbh as the returns just isn’t as attractive compared to the international market. Perhaps you can consider replacing it with EIMI. With IWDA and EIMI, your portfolio will be pretty diversified.

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Joey Gaeth

14 Jul 2020

I agree with JC as well that STI etf should just be skipped once and for all. 👍🏻 Especially since your investment amount is quite small, you probably won't see any returns, significant at all, as compared to if you invested into a global etf (IWDA) or a country core equity (US's VOO or China's MCHI). Also, if you want a local exposure, I'd say go for sg reits or blue-chip stocks like banks for dividend income rather than hoping for any significant income growth because that won't happen in sg (if you're looking at >10% annualised return). I'm assuming you're in your early 20s and should rather be focusing on income growth rather than dividends.
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