What is the difference between a blue chip stock and an ETF? Is a blue chip stock a single stock, while STI ETF is a basket?

Hello there!

Blue chip stock is defined as large size, financially stable, and has been in the business for a very long period of time. An example of blue chip stock in Singapore is DBS.

An Exchange Traded Funds or ETF is an investment fund which aims to track a particular index. ETF comprises a basket of securities or asset class that allows an investor to diversify their portfolio. In Singapore, our index is called Straits Times Index or STI in short. STI tracks 30 largest companies by market capitalisation which is essentially the share price multiply by shares outstanding. There are several blue chip companies in the STI.

You can trade STI ETF on SGX just like how you would buy a blue chip stock on an exchange.​​​