Asked by Anonymous
Asked on 11 Oct 2018
The STI index is basically the top 30 companies listed on the SGX based on market capitalisation. The two ETFs that track the STI basically offer a simple way to invest in these companies via a fund, rather than going out there and purchasing shares in all 30 companies separately. How the two differ are via their expense ratio and how closely they track the STI itself
STI index is a market index that tracks the top 30 companies listed on Singapore Exchange. SPDR and Nikko follows the index. So if you want to buy into STI index, you buy either 1 of them. Most people say that SPDR is better just saying. But Nikko is not that bad since both are following the same thing. Just that the SPDR expense ratio is slightly lower.
They're a little different in their tracking error and cost, but the general objective and stocks invested are the same.