Asked on 08 Apr 2019
Hello! This is a good question as im sure that many people here are probably wondering the same thing!
Here is my personal take on this!
Here is a brief overview of the difference between SSB and ETF taken from one of the seedly blog post.
I personally would prefer to invest in ETF as comapred to SSB since the returns are likely to be higher as seen from the table above. Also, since you are still young, you can still afford to take risks. Therefore, even though the risk of ETF is likely to be higher, you should still take this risk since you are still young.
As seen from the table, if you are looking at investing it would be better to invest in ETF since SSB is used to achieve savings goals rather than investing goals.
Hope this helps!
Hey there! I would personally suggest ETF if you want to experience the feel of "investing" where you will see price fluctuation as opposed to SSB where it's rather fixed in terms of price. As what Nicholas mentioned, there are many useful articles Seedly has did up, so do take a read at them
ETF will give more returns usually depends on which ETFs you invest in. If you want to start, I would recommend start by learning the basic from personal finance blog like seedly and so on. You can also start reading some books. https://blog.seedly.sg/read-me-first-your-personal-finance-journey-starts-with-this-article/
It really depends depends on your risk profile. If you are very conservative and not willing to take any risk, SSB will be a better option since you can always take your money back with no capital loss. However, if you are a risk taker, willing to take some risk and to learn more about investing, ETF will be a better option. As the saying goes, higher risks higher returns. The returns from ETF will be better compared to the returns from SSB.
For me I have both ETFs and SSB contributions. My SSB is more like a liquid fixed deposit, whereas ETF is for investment.
If you don't have the time to monitor the ETFs I would rather you go for a more stable option such as SSB. It already gives you the 10 year interest rate upfront before you put your money into it.
However if you really want to start on investments, looking into the prices, managing more risk, then ETF.
This is all individual.
For me SP500 ETF (VOO) and Lion-Phillip S-REIT
are superb investments, the former for growths and dividends,
the latter principally for dividend yields of REITs in a superb country.
ETF & SSB are the easier way to start off an 'auto-pilot' investment plan.
You can consider doing a $100 per month investment with POSB Invest Saver STI ETF, and park a certain some of money with SSB.