facebookI’m thinking of starting to invest $1.5k in STI ETF and $500 in S&P next month onwards using DCA. Is it wise considering that it’s bearish for STI ETF and yet all time high for S&P ? - Seedly
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Anonymous

Asked on 21 Sep 2018

I’m thinking of starting to invest $1.5k in STI ETF and $500 in S&P next month onwards using DCA. Is it wise considering that it’s bearish for STI ETF and yet all time high for S&P ?

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How do you intend to buy into the S&P through a DCA method? I'll assume you are referring the S27 SGX counter? There is no automatic way of buying into S27 and the minimum share lot is 10, which works out to be US$2650~ per transaction based on today's prices.

If you are buying to SPY, you are looking at perhaps 1 share a month based on your $500 contribution. Which doesn't make sense, as the brokerage fees will be quite high.

Unless you are thinking of buying into the Infinity S&P500 fund issued by LionGlobal, in which case I'll suggest you stay far away. The fees are rather high which will eat a big chunk of your paper gains over time.

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Kenny Tan

19 Feb 2020

I'm interested to know how you DCA into the S&P500 too. Thanks

Jonathan Chia Guangrong

Jonathan Chia Guangrong

19 Feb 2020

Hi Kenny. I don't dca into the S&P500. Don't have any active dca facilities at the moment. There is no passive way to dca into the S&P500. You need to manually do so.

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Geraldo L.

Geraldo L.

Level 7. Grand Master

Answered on 26 Feb 2020

Nobody knows where the market is going, that's why a DCA strategy is good because it gives you a plan to buy consistently regardless of whether the market is up or down. Personally, I would overweight more on the global indexes rather than STI ETF.

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Thank You!
Can you clarify
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MT2020

MT2020

Level 7. Grand Master

Answered on 26 Feb 2020

If you are doing dca, you should not time the market as you will be consistently buying every month ...

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