ES3.SI SPDR Straits Times ETF - A Great Way To Invest in Singapore
πππOne of the best and easiest way to invest in Singapore's stock market is $STI ETF(ES3.SI)$
In just 1 trade, you gain instant access to Singapore's best and largest companies. STI ETF is also the bellwether of Singapore's economy.
The Top 10 holdings include our 3 local banks $DBS GROUP HOLDINGS LTD(D05.SI)$
Jardine Matheson Holdings, Capitaland Ascendas Reit, Capitaland Integrated Commercial Trust, Keppel Ltd, Singapore Airlines and Singapore Exchange.
Our 3 Big Banks take up 45% weightage of the STI ETF. The Top 10 holdings weightage is 69% of the ETF.
The expense ratio is 0.30%. Dividends are paid every 6 months. The current dividend yield is 4.07%. STI ETF goes ex dividend on February 9 2024 and the payment date is February 24 2024.
STI ETF is the oldest and the largest ETF by market capitalisation in Singapore, established on 11 April 2002. Assets Under Management is SGD 1.5 billion.
DBS is the Top holding in STI ETF with a weightage of 19.3%. It is also the largest and safest bank in Asia. It has won many awards including The World's Best Bank for 6 consecutive years.
OCBC is the 2nd largest bank in Singapore with extensive network across ASEAN and Greater China. OCBC also owns Great Eastern Holdings, the largest insurance group in Singapore and Malaysia in terms of assets and market share.
UOB is the 3rd largest bank in Singapore. In 2023 UOB acquired Citibank's consumer banking businesses in Malaysia, Indonesia, Thailand and Vietnam. With the completion of the acquisition, these 4 markets are expected to provide a SGD 1 billion boost to UOB on a full year basis.
All 3 Singapore Banks have wide moat due to extensive network in the region, have rock solid balance sheet and are profitable.
Singtel is the largest telecom operator in Singapore and its Australian subsidiary Optus is the 2nd largest operator in Australia. Singtel also has substantial stakes in Telkomsel in Indonesia, Bharti Airtel in India, AIS in Thailand and Globe in the Philippines.
Jardine Matheson Holdings is a conglomerate that owns Jardine Pacific, Jardine Motors, Hong Kong Land, Dairy Farm, Mandarin Oriental and Jardine Cycle & Carriage.
Performance wise STI ETF is up 4.23% in the past year.
It is a slow and steady kind of ETF, even a little boring. What I really like about STI ETF is that it offers diversification at a low cost and minimises my risk on investing in single stocks. Just as a comparison STI ETF's last closing price is only SGD 3.24 versus DBS at SGD 32.51.
With STI ETF, I have the power of 30 of Singapore's best stocks nicely bundled into 1 ETF. Best of all I get to collect dividends every 6 months while I wait for capital growth. How good is that!
Go Long Go Strong Go STI ETF!
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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