I would just invest in the stock directly instead of the STI, if the stock is something that I would like to have a position in.
The Nikko STI ETF just buys into the largest 30 companies by market capitalization. Now, just because a company has a large market cap, does not mean that it is a fundamentally good company to invest in. Plenty of examples from past years, companies like Noble and Starhub used to be part of the STI. So the STI does get dragged down by some stocks that lag the market.
I would rather look at fundamentals and find a good stock. Sifting through 30 stocks is not as time consuming as sifting through S&P500's 500-plus components.
However if this is too time consuming, or your capital is not high enough to buy a single stock, then diversifying through a Singapore equity UT is better than taking no action at all.
Yes, I would. Only if that company has growth potential that can outweigh Nikko AM STI ETF. But of course, I got to do my due diligence and make sure its fundamentals is rock solid with a clear growth trajectory before I invest. And subsequently in the long run, I will sell off Nikko.
For me, Nikko ETF & STI ETF serves as a base ground for investing initially, because it is already diversified. When I get more experience knowing how to invest and identify stronger companies, that's where I will opt out of Nikko and focus on just the company itself.
Yes I would If the company has solid fundamentals and is a quality company.
When you buy into an i...
Read 5 other discussions with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts