Is it better to invest in SSB or STI ETF? - Seedly
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STI ETF

Singapore Saving Bonds (SSB)

Investments

Asked by Anonymous

Asked on 18 Feb 2019

Is it better to invest in SSB or STI ETF?

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Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 4. Prodigy
Answered on 20 Feb 2019

Hi,

Investing in STI ETF will be a better choice.

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They are 2 different asset classes. You can't compare the 2. You can't compare Fixed Deposit to Property, same here, you can't compare stocks to bonds.

However, a balanced portfolio will need both stocks and bonds.

The rule of thumb is to have your age as the % of your portfolio in bonds, the rest in stocks.

So if you're 25 years old. A 75% Equity and 25% Bond portfolio would be ideal if you're planning for retirement.

And for your equities, I'd diversify globally and wouldn't personally touch the Singapore stock market.

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Zann Chua
Zann Chua
Level 6. Master
Answered on 18 Feb 2019

Hello! This will depend on what is your primary investment goal. If you need the money in a couple of years it maybe a better choice to invest in SSB, but if your goal is for the long term, STI maybe the better choice. This question will also depend on your risk appetite, STI has a larger risk as compared to SSB. There is no definite answer as to which is better, investing in a both is also not a bad choice.

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STI ETF will be more likely to have more returns as they are stocks but will be riskier and more volatile. SSBs are backed by government and low risk but lower returns. See your risk appetite, goals and so on to determine which suits you or you can just invest in both.

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