Should I go into RSP for STIETF? If not what should I go into?

If you really want to rsp into an Etf for dividends, may want to consider the reit etf that is offered via dbs if you are really not keen on individual stocks. And investing into the STI Etf is not a good idea as well. From what I recall the dividend yield offered by the STI Etf may not offer a dividend yield at the range you are looking at. Plus the movement of the Etf is rather range bound.

Actually, if you are open to individual stocks, can look into reits with good sponsors like mapletree. The yield will meet your expected dividend range.

Hi anon,

I would not recommend doing RSP into the STI eTF.As an ETF, for capital gains, it is mediocre at best, for dividends, you are looking at 3% onwards, which is not exactly fantastic either.

On the platform wise, it is my current understanding that POEMS SBP does give you the most choice in terms of what you can RSP into. You may consider doing around $3000-$5000 a month into a few counters for the next 3 - 4 years, based on your current cash holdings.

However do take note that SBP only applies to equities. What you can do is to consider a multi asset strategy to better manage the risk of your portfolio. This includes

• Fixed income funds for around 3%-5% yield, underlying asset would be bonds, this will add stability to your portfolio

• Equity and REITs for 4% to 6% yield, although these have higher risk associated with them (although you did say that you don't have time to invest in individual stocks, so look at holding only a handful of good ones via POEMS SBP)

• Deferred annuity for 3% - 5% yield, which will be immune to market conditions and hence form part of your basic floor for income solutions

What you'll want to achieve is a portfolio giving a low volatility, stable and predictable income. As an example, you can start by earmarking around 1/4 of your funds to deploy via SBP over 3 - 4 years as I have mentioned earlier. 1/4 can be used to RSP into fixed income funds. 1/4 can be used to set up a deferred annuity and the last 1/4 will be held as a warchest to be deployed ad-hoc when opportunity manifests itself (you'll have to monitor the market for this, or work with someone who can advise, manage and monitor your portfolio).

If you do not have time to invest in stocks, etf is a way to go. Besides focusing on the sti etf which is Singapore based, you can venture to overseas etf such as the NASDAQ or S&P via vanguard. As you are quite a high net worth customer, dbs or other banks maybe able to source around for you the most efficient way to invest in etfs via their brokerages

Otherwise consider foreign brokerage such as IB or TD ameritrade

For ETFs, the only one you can invest in SG is STI ETF or Nikko ETF, both of which gives you about ~3% pa. For higher yield ETFs, you gotta look overseas, but of course you got to manage your risks, and also some countries do actually tax your dividends, like US.

If you are looking for 4-5%, I would recommend REITs, should be able to get your aim of 4-5% pa. However with that said, not all REITs are solid too, there are only a few. Take the time to research on them and build your own conviction before investing in them. For a start, you can look at the Healthcare & Retail REITs in Singapore :)