Understand that there are two types of ETF in singapore, SPDR STI ETF and Nikko AM STI ETF. Then what are STI index (https://sg.finance.yahoo.com/quote/%5ESTI?p=^STI) . Are they different? - Seedly
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Anonymous

Asked on 11 Oct 2018

Understand that there are two types of ETF in singapore, SPDR STI ETF and Nikko AM STI ETF. Then what are STI index (https://sg.finance.yahoo.com/quote/%5ESTI?p=^STI) . Are they different?

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered 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

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Level 9. God of Wisdom
Updated on 13 Mar 2020

You can see the tracking error since inception of the Nikko one here somehow:

STI 500 versus the 2 STI 500 ETFs

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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.

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Luke Ho
Luke Ho, Money Maverick at Money Maverick
Level 7. Grand Master
Answered on 11 Oct 2018

They're a little different in their tracking error and cost, but the general objective and stocks invested are the same.

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