are there any reason to buy sti etf over the 3 local bank stocks? I'm curious as it seems the returns of the 3 local bank stocks are better in terms of capital appreciation and dividend since the 2008 crisis.
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The risk is different. With the STI ETF, it is diversified and you may never fear any delisting, collapse. The Banks constitute a major percentage of the STI but one is exposed to sector risk. So its going to be a case of alpha vs beta and how much risk adjusted return you would accept.