The STI ETF refers to the Straits Times Index Exchange Traded Fund. If you have been a regular reader of Dollarsandsense.sg, you will know that this is one of the financial products that we believe the average Singaporean should consider investing in.
In the Singapore Stock Exchange, we have an option of two fund managers for the STI ETF. They are the SPDR STI ETF, which is Singapore’s first locally created exchange traded fund, and the Nikko AM STI ETF.
The table below is a summary of some of the key points of both funds.
|Nikko AM STI ETF||SPDR STI ETF|
|Managed by||Nikko Asset Management||State Street Global Advisors|
(As of 11/30/2015)
|SGD 97.30 million
|SGD 229,241.25 million
Of the Net Asset Value NAV) per annum
Of the Net Asset Value (NAV) per annum
|Stock Code on SGX||G3B||ES3|
There is also a very slight difference in the percentage of funds allocated to each sector:
Nikko AM STI ETF:
SPDR STI ETF:
Source: State Street Global Advisors
There are a few ways in which people can invest into the STI ETF. Each of these methods we mention below would be based on the investor preference and the amount of capital he or she has.
(1) Investing In STI ETF Through Any Brokerage Account
One way to invest in the STI ETF is to buy it using any brokerage account that gives you access to the SGX market. The brokerage fee differs for the various brokerage firms in the Singapore market.
Below is a table of some of the more commonly used brokerage firms in Singapore.
|Brokerage firm||Minimum fees||Trading fees|
|DBS Vickers||SGD 25||0.28%|
|Maybank Kim Eng||SGD 25||0.275%|
|OCBC Securities||SGD 25||0.275%|
|UOB Kay Hian||SGD 25||0.275%|
|Standard Chartered||SGD 0||0.20%|
Trading fees percentage reduces when your contract amount exceeds SGD 50,000.
Do note that Standard Chartered holds your shares through a custodian account. That means shares bought using its brokerage account do not go into your individual Central Depository account (CDP)
(2) Invest Into STI ETF Using A Monthly Investment Plan
There are investors who may choose to invest into the STI ETF using this second method due to a few reasons.
- Reduce the hassle of having to monitor the market closely to find a “ good” price to invest in.
- Having limited capital and hence, a smaller amount of being invested each month would make more sense.
- Lack in discipline when it comes to saving, and hence, a monthly-automated investment plan is a solution to help save up.
At a minimum investment of SGD 100 per month, investors can choose to invest regularly into the STE ETF. Some of the companies offering such monthly investment plans are OCBC bank offering the OCBC Blue Chip Investment Plan, POSB offering the Invest Saver, and Maybank Kim Eng with the Monthly Investment Plan.
Fees of each are as per the table below:
Blue Chip Investment Plan
|Maybank Kim Eng
Monthly Investment Plan
|Minimum investment sum||SGD 100||SGD 100||SGD 100|
|Invested into||Nikko AM STI ETF||Nikko AM STI ETF||SPDR STI ETF and
Nikko AM STI ETF
SGD 5 per shares
(Whichever is higher)
(When amount invested is less than SGD 1,000)
|Dividends||Credited into respective bank account|
Bonds and Fixed Income