To The Moon

🌈🌈$STI ETF(ES3.SI)$  and $Nikko AM STI ETF(G3B.SI)$  are 2 ETFs that track the Straits Times Index and are the bellwether of our Singapore economy.  In just 1 trade I gain access to 30 of Singapore's strongest and largest companies. 

Our 3 Singapore local banks take up the top 3 spots with $DBS GROUP HOLDINGS LTD(D05.SI)$ at 20%, followed by $OVERSEA-CHINESE BANKING CORP(O39.SI)$ at 14% and $UNITED OVERSEAS BANK LIMITED(U11.SI)$ at 12%.  Together they form 46% of the STI followed by Singtel, Jardine Matheson, Capitaland Integrated Commercial Trust, Capitaland  Ascendas, Capitaland Investment, Wilmar International and Keppel Corp.

Both ETFs have the same expense ratio of 0.30%.  They both pay dividends half yearly.  However STI ETF has SGD 1,522 million Assets Under Management compared to Nikko AM  STI ETF with SGD 630.82 million.  STI ETF is also  more liquid than Nikko AM STI ETF with 632,883 volume versus 130,039 volume. 

The current dividend yield for STI ETF is 3.46% versus Nikko AM STI at 3.20%.

Performance wise, both ETFs are similar.  In the past year, STI ETF is up 3% versus Nikko AM ETF at 3.07%.  Both ETFs performed better than the US SPY ETF which is down 9%.

So which ETF is better?  I would choose STI ETF if I want to trade as the volume is higher and it is more liquid.   I also prefer STI ETF as the current dividend yield is slightly higher than Nikko AM STI ETF. 

As a proud Singaporean, I believe in the future of Singapore with a sterling reputation of a integrity and reliability as one of the best financial centres in Asia.  Investing in both STI ETF and Nikko AM STI ETF for long term, is a bet on the future of Singapore.  Both ETFs give me the maximum bang for my bucks and minimise my risk on individual stocks. 

Go Long Go Strong Go STI ETFs! 

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