SGX lists two active ETFs that track the STI – the SPDR® Straits Times Index ETF and Nikko AM Singapore STI ETF. Both ETFs are non-SIP, pay dividends and trade in board lot sizes of 100 units.
In the 2015 year through to 6 March, combined turnover of the two ETFs amounted to S$124.1 million, up 88% from the same period last year.
Over the last three years ending Feb, these two ETFs averaged returns of 22.5%. More information on the comparative returns of ETFs can be found on the SGX ETF Screener here.
Exchange Traded Funds (ETFs) are open-ended investment funds listed and traded on an exchange. ETFs such as the SPDR® Straits Times Index ETF and Nikko AM Singapore STI ETF aim to track the performance of an index, in this case the Straits Times Index (STI). The upshot is that these two portfolio products provide investors access to the moves and dividends of the Straits Times Index (STI).
The STI is regarded as the benchmark index for the Singapore stock market and is made up of 30 constituents that represent more than half of the total market capitalisation of all primary and secondary stocks listed on the Singapore Exchange (SGX). The 30 constituents span a wide range of industries and international income which provides for diversity of performances within the Index.
