Is it wise to start a RSP using NIKKEI AM STI ETF for beginners? I am currently a student and I am interested in learning how to invest? - Seedly
Seedly logo
Seedly logo
 

Investments

Savings Accounts

Career

Robo-Advisors

Anonymous

Asked on 03 May 2020

Is it wise to start a RSP using NIKKEI AM STI ETF for beginners? I am currently a student and I am interested in learning how to invest?

0 comments

3 answers

Answer Now

Answers (3)

Sort By

Hey there! The STI ETF is very heavily concentrated on financials side of Singapore (ie. not very diversified). The returns, gauging from history, has been lacklustre too. If you are in for the long term, consider a S&P500 ETF instead. You can try the Irish-domiciled ETFs since the withholding tax is only 15% compared to the NYE stock market of 30%.

Financial planning is an integral part of life. You can reach me at this platform to find out more.

0
👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Nikko Am STI ETF is one way for beginner to start investing. The upside is that there are less considerations to worry about, including withholding tax, foreign exhcnage risk, and custodian fees. However, due to the nature of Singapore's economy (which the fund invest in), the growth potential is severly limited. You may see growth in a few years, but it will not be a lot. One other way is to invest in foreign country's stock market where the chance for growth is higher. An example would be the US. investing overseas will be more complicated and I would advise reading up more about it first.

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

No start with SP500 like VOO, VUSA.

Or with global ETF like VT.

STI is not a good index, compared to SP500.

0
👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post