I'm 23 and in my penultimate year. I want to earn passive income by investing in ETFs through DBS Invest-Saver RSP. Which out of the 4 ETFs available will give the best dividends? - Seedly
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Anonymous

Asked 2w ago

I'm 23 and in my penultimate year. I want to earn passive income by investing in ETFs through DBS Invest-Saver RSP. Which out of the 4 ETFs available will give the best dividends?

I'm planning to invest $1000/mth initially to take advantage of the low price now. After a few months, i will lower it to $150/mth

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Updated 11h ago

The REIT is the only possible one but it is expensive to trade (0.82%).

The three others (STI, SG bonds) are really bad investments. Also it seems they have only these 4 ETFs because they want to lead the retail investor to buying from their 'extensive list' of unit trusts (=mutual funds). Because of their high annual fees and inferior performance of stock picking actively managed funds versus passive indexing, mutual funds are one of the worst traps retail investors could fall prey to.

The only thing you need maybe is something like an MSCI World ETF, MSCI ACWI ETF or SP500 ETF. Also, when You're young you're not dependent on dividend income. Better select accumulating instead of distributing ETFs.

What also to avoid, here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

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Zi Shuen
Zi Shuen, Economics at NTU
Level 5. Genius
Answered 1d ago

Dont go for the DBS one, the options are super limit (and I am sorry, but STI ETF's return just won't cut it).

Instead, go for:

  1. FSM One RSP. They have more varieties of ETF to choose from, such as VOO, FTEC, CQQQ, etc

  2. Robo advisors such as StashAway, Syfe, EndowUs, Kristal.Ai

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JG
Joey Gaeth
Level 5. Genius
Answered 2w ago

If you're a beginner investor and is going for DCA approach, i'd recommend using FSMOne RSP rather than DBS. If you want to invest in STI, fsmone also have, and i believe at much cheaper fees. Nonetheless, i don't recommend sg etfs because the growth is bare and dividends is not significant since u dca, so if u going for dividends, there's only reits. DCA using Fsmone rsp into VT as a global etf is a good, diversified way to start.

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