SPDR STI ETF VS Amova Singapore STI ETF: What’s The Difference Between The 2 STI ETFs Listed On SGX?

For those new to investing, putting your money in a benchmark country index is one of the easiest and safest ways to start growing your wealth. In Singapore, the benchmark index is the Straits Times Index (STI), and there are two STI ETFs – SPDR STI ETF and Amova Singapore STI ETF (previously known as Nikko AM STI ETF) – that we can invest in.

What Is A Benchmark Index?

A benchmark index of a country usually refers to the largest and most liquid stocks listed on its stock market. In Singapore, the Straits Times Index (STI) is made up of the 30 largest stocks (by market capitalisation) listed in Singapore.

Combined, these companies account for approximately 80% of the entire market value of stocks listed in Singapore. Hence, how the 30 STI constituent stocks perform can be representative of how the overall Singapore market performs.

The STI is comprised of:

Read Also: Here’s How The Stocks Within The Singapore’s Straits Times Index (STI) Have Changed Since 1998

Country indexes can be found across all major economies. In Hong Kong, the benchmark index is the Hang Seng Index (HSI) made up of 50 of the strongest stocks listed in Hong Kong. In Australia, it is the ASX 200, comprising 200 of the strongest liquid stocks listed in Australia. In the USA, it is the S&P 500, made up of close to 500 of the strongest stocks listed on the New York Stock Exchange (NYSE) and NASDAQ. The FTSE 100 is the 100 largest stocks listed on the London Stock Exchange (LSE).

A benchmark index also serves the purpose of allowing investors to measure (or benchmark) their investment portfolio performance against the market returns. Of course, investors should aim to beat the market returns in any given year, otherwise, we would have been better off investing in the benchmark index rather than taking additional risks or actively trading our portfolio.

How To Invest In The Benchmark Index?

We can’t invest directly in the benchmark index. We have to rely on exchange traded funds (ETFs) that track the benchmark index by replicating its component stocks.

In Singapore, there are two ETFs that track the Straits Times Index: 1) SPDR STI ETF; and 2) Amova Singapore STI ETF. We can invest in these ETFs in the same way we typically invest in other stocks listed on SGX – via a brokerage account.

With just a single investment into either of the STI ETFs, investors are able to gain broad exposure to the Singapore market.

Read Also: Complete Guide To Investing In The STI ETF

Which STI ETF Is Better – SPDR STI ETF or Amova Singapore STI ETF?

Since there are two STI ETFs, the common question is which should investors choose?

Both the SPDR STI ETF and the Amova Singapore STI ETFs aim to track the Straits Times Index (STI) as closely as possible. Here’s a comparison of its differences.

#1 Fund Managers

The most obvious difference is that the two STI ETFs are managed by different fund managers. The SPDR STI ETF is managed by State Street Global Advisors Singapore Limited, one of the largest fund management firms in the world. State Street Corporation can trace its history back to 1978 and has over US$5.7 trillion of assets under management.

Amova Singapore STI ETF is managed by Amova Asset Management Asia Limited (previously known as Nikko Asset Management Asia), one of the largest asset managers in Asia. Amova Asset Management has over US$274.3 billion of assets under management, and was founded in 1959.

In this regard, both can be said to be equally matched as they are managed by highly reputable and stable fund management firms.

#2 Track Record

The SPDR STI ETF (ES3) was listed on the SGX on 17 April 2002, while Amova STI ETF (G3B) was listed on the SGX on 24 February 2009.

As the SPDR STI ETF has been around longer, it has a longer track record we can rely on for information. Nevertheless, both have been around for more than 10 years to look at their past track record.

Read Also: Active Investing VS Passive Investing, Lump Sum VS Dollar-Cost Averaging: Which Investment Strategy Suits You Best?

#3 Fund Size

A larger fund is typically looked upon as more trusted, stable and better able to enjoy economies of scale.

Since the SPDR STI ETF has been around longer, it has also been able to capture a larger slice of investments into the STI ETF. The SPDR STI ETF has S$2.97 billion under management, while the Amova  STI ETF has S$1.35 billion under management.

#4 Performance

The performance of an ETF is usually based on how closely its returns are able to track the index it is trying to replicate. This also means that it will almost always underperform the market, as it charges a management fee and incurs trading costs while trying to match the benchmark returns.

The SPDR STI ETF delivered a 1-year annualised return of 33.16% (as at February 2026). In the past five years, the SPDR STI ETF has delivered an annualised return of 15.55%.

The Amova STI ETF delivered a 1-year annualised return of 33.86% (as at February 2026). In the past five years, the Amova STI ETF delivered an annualised return of 15.76%.

Comparatively, the Straits Times Index delivered a 1-year return of 34.37% over the same period and a 5-year annualised return of 16.26%.

Source: Amova Asset Management, State Street Global Advisors

As you can see, both the STI ETFs achieved a slightly lower return compared to the benchmark STI. The Amova STI ETF managed to deliver a slightly better 1-year and 5-year performance. Nevertheless, the difference between the two is not big.

#5 Expense Ratio

The total expense ratio (TER) measures how much of a fund’s assets are used for its operations, including for administrative and miscellaneous reasons. The biggest component of a fund’s expense ratio is typically its fund management fees. Obviously, the lower the expense ratio, the better it is for investors.

The SPDR STI ETF has an expense ratio of 0.28% per annum, while the Amova STI ETF has an expense ratio of 0.24%.

#6 Tracking Error

If we ignore management fees, performing worse off than the market is always frowned upon. However, for ETFs, performing significantly better than the index may not be viewed as an entirely positive thing. This is because the job of an ETF is to replicate the market returns as closely as possible.

The difference in replicating the market returns is usually referred to as tracking error. The SPDR STI ETF has a rolling 1-year tracking error of 0.2125% (as at February 2026), while the Amova STI ETF has a 3-year annualised tracking error of 0.15% (as at February 2026).

The Amova STI ETF seems to have a slightly lower tracking error. However, the way the two STI ETFs report it is different. SPDR STI ETF reports a 1-year rolling tracking error, while the Amova STI ETF reports a 3-year annualised tracking error. One possible explanation is that the tracking error may be smoothed out over a longer period.

#7 Dividend

The component stocks within the Straits Times Index (STI) usually pay out dividends. In fact, Singapore stocks are known to pay some of the best dividends across Asia. These dividends will be paid to the respective ETF, which will subsequently pay out these dividends to its investors.

Both SPDR STI ETF and Amova STI ETF have a distribution policy of paying out dividends semi-annually. This means that the ETFs do not pay out dividends immediately after receiving them from the underlying investments. Instead, both STI ETFs hold on to the dividends, and pay it out at regular intervals.

According to the SGX ETF Screener, SPDR STI ETF has a dividend yield of 3.60%, while the Amova STI ETF has a dividend yield of 3.69%.

Read Also: Here’s How You Can Build A Dividend Income Portfolio To Replace Your Wage In Singapore

 Why The STI ETF Makes A Logical Investment

The STI ETF is a viable investment for both beginners and experienced investors.

For beginner investors, it offers a safe way to get started even without much investing knowledge or experience. We also don’t have to monitor our investments too closely, and can embark on a passive investing strategy, as our portfolio is instantly diversified with the 30 strongest stocks listed in Singapore. Of course, we can use this as a springboard to learning more about investing, and eventually setting aside a portion of our portfolio to invest in individual stocks in Singapore and even outside of Singapore.

Moreover, indexes are also regularly reviewed and adjusted, and any changes made to the index will be replicated by our fund managers. As fund managers are just replicating the adjustments made to indexes, their fund management fees are typically much lower than actively managed funds.

For experienced investors, it can be used as a great complementary passive investment strategy to diversify our risk, even as we take on riskier investments in the market.

Read Also: Step-By-Step Guide To ETF Investing In Singapore

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