Why I Am Bullish on STI ETF
If you are new to investing in Singapore and have limited funds, the $STI ETF(ES3.SI)$ would be an excellent ETF to invest in. The STI ETF is an ETF that tracks the index of the top 30 biggest companies listed in the Singapore Stock Exchange.
The current top 10 companies are DBS, OCBC, UOB, Singtel, Jardine Matheson, Capitaland Investment, Ascendas REIT, Capitaland Integrated Commercial Trust, Singapore Exchange and Keppel Corp.
The STI components are reviewed quarterly and are based on their market capitalisation.
The analysts are bullish and have forecasted that the STI Index will rise in 2022 and their year end value are as follows - DBS at 3550, UOB Kay Hian at 3500 and CIMB at 3750. These forecasts imply a rise of 13% to 21%!
$STI ETF(ES3.SI)$ also pays a steady dividend twice yearly too. The dividend yield ranges from 2.6% to 3.77%.
Best of all, the Top 3 largest components of STI ETF are the 3 Singapore banks - DBS, OCBC and UOB forming 40% of the ETF.
In summary, $STI ETF(ES3.SI)$ is a great ETF to invest in if you have limited funds, do not know how or do not have time to pick stocks and want to invest in the future of Singapore.
Since I am Singaporean, I believe that Singapore has a bright future and investing in $STI ETF(ES3.SI)$ is my way of participating in Singapore's growth story. It is low cost, diversified and minimises my risk. It is also tax free and there is no foreign currency exchange risk too.
Go Long Go Strong Go$STI ETF(ES3.SI)$ ! That's my maxim.
@TigerEvents -SG stocks
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Still prefer s & p for long term