As of 2020, there were 7602 ETFs on the market, according to Statista. By the time you finish reading this, the number will have risen.
SPDR Strait Times Index ETF (ES3)
The SPDR STI ETF, which is managed by State Street Global Advisors (SSGA), monitors the performance of the Straits Times Index (STI), a market capitalization weighted index that tracks the top 30 businesses listed on the Singapore Exchange (SGX).
It gives you access to the largest stocks on the Singapore stock exchange. Telecommunications, oil and gas, financial services, and consumer services are just a few examples.
This ETF is a terrific place to start if you’re new to investing. You’ll also recognize the stocks in its portfolio. This may give you the courage to begin investing your money while also preventing you from becoming overwhelmed by the more complex mechanics of analyzing particular companies.
Although all of the stocks in the STI are listed in Singapore, their fundamental businesses may not be restricted to the country.
Nikko AM Singapore STI ETF (G3B)
The STI ETF is available from Nikko Asset Management. The Nikko AM Singapore STI, like its SPRD counterpart, tries to mirror the Strait Times Index, which tracks Singapore’s top performing firms. It enables you to buy shares in Singapore’s blue chip businesses that you are familiar with, providing you a sense of confidence.
The Nikko AM STI ETF was introduced seven years after the SPDR ETF, thus it’s no surprise that it has a lower Assets Under Management (AUM).
It has the same low expense ratio of 0.30 percent per year and, at the time of writing, a lower tracking inaccuracy of 0.17 percent. (The SPDR STI ETF, by comparison, has a tracking inaccuracy of 0.29 percent.)
Xtrackers MSCI Singapore UCITS ETF (O9A)
The MSCI Singapore Index was designed to track the performance of the major and mid-cap businesses on the Singapore stock exchange. The MSCI Global Investable Market Indexes (GIMI) Methodology is used to select the 19 equities that make up the index.
The MSCI Singapore ETF is an excellent alternative to the STI ETF, as it can provide investors with exposure to Singapore’s faster-growing mid-cap and growth companies. Given the current market, these companies may be able to contribute to increased growth in the coming years, as I stated on Facebook.
The contrasts between the STI ETF and the MSCI Singapore ETF were compared in further depth here.
The iShares MSCI Singapore ETF (NYSEARCA: EWS) is listed in the United States, whereas the Xtrackers MSCI Singapore UCITS ETF (SGX:O9A) is listed in Singapore.
ABF Singapore Bond Index Fund (A35)
The ABF Singapore Bond Index Fund is one of the largest and oldest exchange-traded funds (ETFs) in Singapore. It invests in the constituents of the iBoxx ABF Singapore Bond Index, which tracks high-quality Singapore government bonds as well as bonds from quasi-government institutions like Temasek and HDB.
It has been developing steadily and steadily over the years, making it one of the most successful. As of March 31, 2021, it has S$983 million in assets under management (AUM).
At first glance, as with many of us, purchasing from this ETF is discouraging, especially for inexperienced players, as the figures appear to be scary. However, because it is a well-established ETF, it is low-cost and low-risk, as seen by its consistent performance year after year since its inception.
SPDR S&P 500 ETF (S27)
“The smartest thing to do for most individuals is to own the S&P 500 index fund,” Warren Buffett stated. The first three exchange-traded funds (ETFs) have exposure to the Singapore market. But what if you wanted to purchase a piece of one of the world’s largest corporations?
The majority of them are listed in the United States at the time of writing, and several are included in the S&P 500 index.
The SPDR S&P 500 ETF is very similar to the SPDR STI ETF, although it tracks the S&P 500 index instead of the STI index. The S&P 500 Index is made up of the top 500 stocks on the New York Stock Exchange. These businesses are well-diversified across many industries, with information and technology leading the way, followed by financials, health care, energy, and real estate, to name a few.
The ETF is traded on the Singapore Exchange under the symbol S27. This means you can invest in US markets through your local broker and profit from the growth without having to learn about macroeconomics, business foundations, and other topics.
Lion Phillip S-REIT ETF (CLR)
REITs are attractive investment vehicles due to their consistent (and frequently substantial) dividend payouts. However, not all REITs are safe; Covid has highlighted the retail REITs’ fragility in 2020.
Investors can gain exposure to high-quality S-REITs through the Lion Phillip SREIT ETF. The MorningStar Singapore REIT Yield Focus Index is the benchmark. MorningStar is an investment research organization established in Chicago that is well recognized for its investment research.
You’ll get the best of both worlds as an investor, with exposure to a well-balanced SREIT portfolio and dividends. The dividend yield of this ETF is one of the highest in 2020, at 6%.
Nikko AM-StraitsTrading Asia ex Japan REIT ETF (CFA)
The Nikko AM Asia ex Japan REIT ETF is another interesting alternative for those interested in REITs in Asia.
Retail REITs, Diversified REITs, Industrial REITs, Office REITs, Specialised REITs, Hotel & Resort REITs, and Healthcare REITs are just some of the sub-industries you’ll be exposed to.
This ETF pays a dividend yield of around 5% and provides investors with a nice mix of REITs from different APAC countries.
Phillip Sing Income ETF (OVQ)
REITs are advantageous because they are required to pay out a portion of their earnings as dividends. What if you wish to branch out from real estate?
The Phillip Sing Income ETF selects the top 30 dividend stocks in Singapore using a factor-based strategy. They track the MorningStar Singapore Yield Focus Index, which selects firms based on Business Quality, Financial Health, and Dividend Yield, according to their product sheet.
The current expected dividend yield is around 5%. The cost ratio for this ETF is 0.7 percent per year.
Financial services (39.1%), REITs (17.5%), Industrials (16.6%), Telecommunications (16.6%), Consumer (7.4%), and others are among the industries you can invest in (2.4 percent ).
SPDR Gold Shares ETF (O87)
It may not have occurred to you, but you can also obtain exposure to other asset classes by investing in ETFs.
Gold is a prominent asset class. The SPDR Gold Shares ETF is a Singapore Stock Exchange-listed exchange-traded fund that allows you to simply invest in gold. This gold ETF is the most traded ETF on the Singapore Exchange as of July 2020.
This ETF was created to make investing in gold as an alternative asset class easier for investors. It keeps track of gold bullion prices by holding physical gold bars.
The Trust buys gold bars and stores them in their London vault or a sub-vault. custodian’s You will not be responsible for purchasing, keeping, or selling physical gold bullion.
Nikko AM SGD Investment Grade Corporate Bond ETF (MBH)
The ABF Bond ETF is more than enough for most investors. The Nikko AM SGD Investment Grade Corporate Bond ETF, on the other hand, might be worth looking at if you’re looking for a bigger return.
It is compared to the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, which measures the performance of non-government investment-grade bonds denominated in SGD. These are associated with a higher level of risk in exchange for larger potential yields.
It’s a modest ETF, with a fund size of S$603.31 million (as of June 2021), but it’s given owners a 3.69 percent return since its launch.
Which ETF should a beginner invest in?
- Companies from developing economies are represented by the Schwab Emerging Markets Equity ETF (NYSEMKT:SCHE).
- Vanguard High-Dividend ETF (NYSEMKT:VYM) invests in stocks that pay higher dividends than the market average.
- NYSEMKT:SCHZ Schwab U.S. Aggregate Bond ETF Bonds of various types and maturities are available.
- The Vanguard Total World Bond Fund (NASDAQ:BNDW) is a mutual fund that invests in bonds from around the world. International and US bonds of varied lengths and maturities are included.
- The Nasdaq-100 Index, which is strong on tech and other growth stocks, is tracked by the Invesco QQQ Trust (NASDAQ:QQQ).
You’ll see that Vanguard and Schwab are heavily represented on this list. There’s a reason for this: both are committed to providing Americans with low-cost access to the stock market, therefore their ETFs are among the most affordable in the industry.
Step 3: Let your ETFs do the hard work for you.
It’s crucial to remember that ETFs are primarily designed to be low-maintenance investments.
Newer investors have a nasty habit of reviewing their portfolios far too frequently and reacting emotionally to large market movements. In reality, over-trading is the primary reason why the ordinary fund investor underperforms the market over time. So, once you’ve invested in some terrific ETFs, the best suggestion is to leave them alone and let them do what they’re supposed to do: generate exceptional long-term investment gains.
ABF Singapore Index Fund: What Is It?
A wealthy individual may consult a private banker for guidance and management of his or her government and corporate bond portfolio. Unfortunately, the average investor has access to only a small number of bond options. In that instance, a Bond Unit Trust or Bond ETF would be a better choice because he can diversify his portfolio with less money.
In comparison, I favor a Bond ETF over a Bond Unit Trust because the former has far lower fees than the latter. Compounding effects can be beneficial, but compounding expenses can be detrimental!
Because it invests primarily in sovereign and quasi-sovereign bonds issued or guaranteed by the government of Singapore or any government of the People’s Republic of China, Hong Kong Special Administrative Region, Indonesia, Korea, Malaysia, Philippines, or Thailand, the ABF Singapore Bond Index Fund is classified as a low-risk product.
The majority of the portfolio assets as of 30 April 2017 were Singapore Government bonds, which have been rated AAA for at least 19 years by all three main credit rating agencies (Standard & Poor’s, Moody’s, and Fitch). Furthermore, Singapore Government Bonds are among the highest-yielding AAA-credit-rated government bonds in the world. The Fund also buys quasi-government bonds from companies like HDB, Temasek, and LTA. These Singapore Government and Quasi-government Bonds are both categorized as risk-free.
Overall, the ABF Singapore Bond Index Fund is an excellent choice for the patient investor who enjoys moderate and steady returns.
Is voo available in Singapore?
To purchase VOO ETF, I recommend using a normal regulated brokerage. There are no custodian fees or account inactivity fees with standard chartered. Commissions are very reasonable, with a minimum of $10.
Is DRIV a decent exchange-traded fund (ETF)?
In the Technology Equities ETFs category, DRIV is currently ranked #39 out of 100 ETFs. Vanguard Information Technology ETF (VGT), SPDR Select Sector Fund Technology (XLK), and ARK Innovation ETF are all popular ETFs in this field (ARKK).
ARKK outperformed DRIV by 84.3 percent over the last six months, while VGT and XLK returned 24 percent and 20.3 percent, respectively.
Many experts anticipate that by 2021, the worldwide vaccine deployment momentum would have slowed. However, the industry’s growth should be aided by a growing reliance on technology for even fundamental needs, as well as the expansion of remote working arrangements. The Technology Equities ETF should gain a lot of traction in the coming months because to its broad exposure to the most important industries in this sector.
DRIV is rated a “Strong Buy” by the four components of the overall POWR Rating because of its strong short- and long-term bullishness and underlying industry strength.
DRIV should rise dramatically in the near future as the electric vehicle industry continues to disrupt the broader automobile industry with its innovative prowess. Because two of its major assets, TSLA and AAPL, are presently working on autonomous vehicles, DRIV’s performance should mirror their progress.
How do I purchase an ETF in Singapore?
ETFs are one of the most straightforward and cost-effective ways to begin our investment journey. ETFs have gained even more attention and appeal in recent years, and have now surpassed active investing in terms of popularity. There are currently around 7,600 ETFs listed around the world (as of 2020).
While many ETFs are designed to give wide market exposure, their diversity and complexity have grown over time. Aside from duplicating country indexes, ETFs for extremely particular business sectors, regions, and asset classes, as well as more intricate leveraged and synthetic ETFs, are now available.
What Is An ETF?
ETFs are traded on stock exchanges and aim to mirror an index’s performance. Broad country-based indices, such as the Straits Times Index (STI), Hang Seng Index, or S&P 500 Index, can be used. It can also mimic tighter indexes that monitor certain industries, geographic regions, or asset classes. We can purchase and sell them because they are listed on stock markets, just like we can buy and sell other stocks and bonds.
How To Invest In ETFs In Singapore?
Because ETFs are traded on a stock exchange, the most frequent way to invest in them is through a stock brokerage account, just like how we buy and sell stocks in Singapore. There are 45 ETFs listed in Singapore, according to the Singapore Exchange (SGX). Because some ETFs are listed in many currencies, the actual number may be lower. Apart from the Singapore Exchange, most local stock brokerage accounts also give us access to other major stock exchanges across the world. As a result, we can invest in ETFs registered on these foreign markets.
Regular Shares Savings (RSS) plans are another way to invest in ETFs in Singapore. In Singapore, there are now four RSS providers; some of them also allow us to invest in individual equities or ETFs that are listed on foreign exchanges.
Also see: A Step-By-Step Guide To Investing In Singapore Using Regular Shares Savings (RSS) Plans
Investing through robo-advisory platforms in Singapore is a third avenue for investors to obtain exposure to ETFs. In Singapore, there are at least 11 robo-advisory platforms, with nine of them employing ETFs as part of their offerings. The ETFs that robo-advisory platforms mostly employ are exposed to broad indexes listed in the United States.
#1 Low Barrier Of Entry For New Investors
ETFs are a great method for new investors to get started because they don’t require much in the way of investment knowledge or expertise. Investors would also save time by not having to constantly monitor or rebalance their portfolios.
#2 Low-Cost Method To Invest
When compared to actively managed funds, ETFs usually have cheaper management fees. This is because ETFs simply replicate the index and follow the instructions on what to invest in. We can save money by not hiring an active fund manager to pick stocks or time stock prices.
The S&P 500 ETF, for example, has a net cost ratio of 0.0945 percent. The overall expense ratio of the STI ETF is 0.3 percent. Generally speaking, the larger the ETF, the lower the expense ratio it may charge.
Also see: A Complete Guide To Investing In Singapore’s Straits Times Index (STI) ETFs
#3 Instant Diversification
We can theoretically create our entire portfolio with just one investment in an ETF, depending on the index that the ETF tracks.
For example, just investing in the S&P 500 ETF will provide us access to over 500 blue chip firms, accounting for roughly 80% of the market capitalization in the United States. Furthermore, this investment will be diversified to include IT (26%), healthcare (13%), consumer discretionary (12%), financial (12%), communications (11%), industrials (9%), consumer staples (6%), and other sectors.
#4 Passive Approach To Investing
We are removing the decision to pick equities from our hands by investing in ETFs. We’re merely allowing the index to determine which equities we should buy.
We will essentially get the market returns of the US market if we invest in a broad country index, such as the S&P 500. This manner, we don’t want to time or beat the market; instead, we just wish to earn market returns over time.
Another advantage of taking a passive strategy to investing is that we don’t have to keep such a tight eye on our money. This is due to the fact that most indexes have a process for selecting and deleting member stocks. This means that if a stock fails to meet the criteria, it is automatically withdrawn from the index and, by default, the ETF. This is why, unlike individual companies, a solid index (and the ETFs that track it) may last a long time.
#1 ETFs Always Underperform The Index
We can never expect spectacular gains when we invest in an ETF. As previously said, it’s the equivalent of electing to earn only the market return.
We also have to pay brokerage costs when we buy (or sell) an ETF. We must pay management fees and other expenditures when we invest in an ETF. As a result, we will never achieve the return that the index provides. We will, however, earn a return that is just little less than that.
Is VOO suitable for newcomers?
If you’re a newbie looking to diversify your portfolio with more than one fund, you’ll want to start with large-cap companies. These firms often have well-established, diverse businesses that can weather adversity better than smaller firms, providing portfolio stability.
Investing in the Standard & Poor’s 500-stock index a group of 500 firms that is primarily deemed reflective of the US economy is one of the most popular ways to buy large caps. It covers a wide range of market segments, including technology, utilities, consumer stocks, and more. Even the index’s smallest firms are far from “little” – the bottom of the index includes equities like Lennar (LEN), America’s largest home construction company by revenue, and Under Armour (UA), a $6.7 billion sporting apparel manufacturer (UAA).
The Vanguard S&P 500 ETF (VOO, $249.59) is one of three ETFs that track the S&P 500 index, giving investors exposure to all 500 companies. The S&P 500, on the other hand, is market cap-weighted, which implies that the largest stocks account for the largest percentage of the index. As a result, VOO and its peers are significantly invested in firms like Apple, Alphabet (GOOGL), and Microsoft (MSFT) – all of which have market values in the hundreds of billions of dollars. As a result, they have the most impact on the VOO’s performance.
VOO’s expenditures are only 0.04 percent, which implies that for every $10,000 invested in the fund, you will only pay $4 in annual fees. As a result, it’s one of the finest Vanguard ETFs for building a low-cost portfolio, as well as one of the best broad-market funds for beginners.