To The Moon

🌟🌟🌟Historically the month of September has earned the title of the worst performing month for stocks but not this September for me.  My  Index ETFs from 3 different markets are up : SPTM  from the US $SPDR Portfolio S&P 1500 Composite Stock Market ETF(SPTM)$ Straits Times Index from Singapore $STI ETF(ES3.SI)$  and KWEB from China  $KraneShares CSI China Internet ETF(KWEB)$   are all up!

SPTM seeks to track the total return performance of the S&P Composite 1500 Index.  This Index represents approximately 90% of the investable US stock market.  SPTM consists of stocks included in the S&P500 Large Cap  Index, the S&P Midcap 400 Index and the S&P Small Cap 600 Index.

SPTM does the heavy lifting for me as it selects those stocks that have positive aggregate earnings over the 4 most recent quarters as well as the most recent quarter and removing those non performing ones.

While SPTM is just up 0.30% in the past 6 days, it recently reached its 52 week high at USD 70.13.  SPTM is now up 20% year todate and in 2023, SPTM has risen 32%.  But if you look further back to 5 years ago, SPTM has since skyrocketed 91% and 359% since its inception in October 2000.

The Top 10 holdings include the Magnificent 7 - Apple, Microsoft, Nvidia, Amazon, Meta Platforms, Google and Tesla as well as Berkshire Hathaway, Broadcom and Eli Lilly.

The Top 10 holdings weightage is 32%.  Total number of holdings is 1508.  The expense ratio is 0.03%, which is among the lowest compared to competing ETFs.  Dividends are paid every 3 months.  The current dividend yield is 1.29%.  SPTM goes ex dividend on December 23 2024.

I have invested in SPTM since 2021 and have dollar cost averaged into this ETF.  I find that SPTM offers me comprehensive coverage into the US markets at a cost that is really good value for my money.  I am happy with the 30.8% capital growth so far after 3 years of holding SPTM.

Another ETF  in my core portfolio is $STI ETF(ES3.SI)$  which tracks the Straits Times Index giving me exposure to the Top 30 Blue Chips stocks in Singapore.  

On September 23, the Straits Times Index (STI) was up 0.38% at 3,638.54 which was a 17 year high.  I was thrilled to see that the STI ETF hit SGD 3.70. 

The Top 10 holdings include the  3 major Singapore Banks - DBS, OCBC and UOB as well as other Singapore blue chips such as Singtel, Capitaland Integrated Commercial Trust, Capitaland Ascendas REIT, Jardine Matheson Holdings, Singapore Airlines, Singapore Exchange and Keppel Ltd.

The 3 Singapore banks take up 49% of the STI ETF.  It would seem that investing in STI ETF is almost like investing in the Big 3. Dividends are paid twice a year in February and August.  The current dividend yield is 4.38%.

I have invested in STI ETF for almost 4 years now and it is currently up 25% for me.  I am so glad that the Singapore Market is showing green shoots of recovery with the jumbo cut of 0.50% by the Feds.  All 3 Singapore banks hit new 52 week high as well as the SReits recently, driving the growth of STI ETF.  

What I like best about investing in STI ETF is that the dividends are taxed free and there is no conversion rate to worry about.

A recent addition to my portfolio in August is $KraneShares CSI China Internet ETF(KWEB)$  However it has shown the fastest growth among the 3  ETFs that I own. 

KWEB tracks a market cap weighted index of overseas listed Chinese Internet companies.  These are among the biggest and strongest Chinese conglomerates.  The Top 10 holdings include Alibaba, Tencent Holdings, Meituan, JD.com, PDD Holdings, KE Holdings, Trip.com, Baidu and Netease. 

The Top 10 holdings weightage is 63%.  Total number of holdings is 33.  The expense ratio is 0.70%.  The current dividend yield is 1.36% paid once a year.  The last ex dividend date was December 27 2023.

Performance wise KWEB was up 3.9% on Friday and a huge 25% in the past 5 days.  KWEB reached a 52 week high this week at USD 34.16.  In contrast its 52 week low was USD 22.69 per share.  In 2023 KWEB is up 24%.  However if we look back 5 years ago, KWEB is down 17%.

While past performance is not indicative of its future, I believe that KWEB has a huge upside potential.  With the blitz of stimulus measures by the Chinese authorities, there is an air of optimism that it is time for KWEB and other Chinese stocks to go up like a rocket to the moon!

Having 3 different ETFs with different country exposure gives me a diversified portfolio.  But with the expectations of further rate cuts by the Feds and more stimulus measures by the Chinese authorities, this is the perfect confluence of events to really lift up the returns on my portfolio.

So September is definitely a Blessing for me, not a Curse.  However the markets do not move in a straight line and there will certainly be volatility ahead.  But with a long term horizon I am bullish that all 3 ETFs will continue their upward trajectory in the future.

The stock  market is voting machine in the short term but in the long term it is a weighing machine.  Volatility is the price I am willing to pay for outsized gains in the long term. 

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