Historical Rolling Returns - DCA into STI

[BBCWatcher]

as i said earlier, everything in your cpf and property is tied to singapore future. u wanna whack all your wealth on it, thats your personal choice. who knows maybe sg outperform every mkt in the future and u huat big with your concentrated risk. but ask those japanese who invest in their nikkei if they would do so if given the choice again.

Two thumbs up for this argument. To amplify your argument, in 2016 Singapore will probably rank as the 39th largest economy in the world, just behind Denmark. Singapore's economy would be equivalent to about 1.6% of the U.S. economy alone. Invest only in Singapore and you're missing about 99% of the world. That's not reasonable portfolio diversification, not even close. Could you imagine investing only in Denmark? Arguably investing only in Denmark would be slightly more diversified than investing only in Singapore.

We can certainly quibble about how much investing to do outside Singapore, but, at least for investors rising above the middle class, zero is the wrong answer.

That said, there are various global and non-Singapore regional investment vehicles available in Singapore. A lot of them are junk because, for example, they have high costs. I don't believe in buying junk to diversify. That's a big problem in my view, that (aside from traditional CPF) there aren't enough low cost options for investors of modest and moderate means. Singapore doesn't have anything like a Vanguard "Target" fund with no sales charges in or out and low expenses, and that's a shame.

 

[Mecisteus]

Good sia.

I buy since 2013. My returns is about 1.7%.

Don't worry. You are only into the 3rd year. During this period, STI has been sideways.

Like what BBCWatcher said, do consider other passive index funds from global regions or sectors as diversification.

This passive plan is just an insignificant portion of my overall portfolio.

 

[doody_]

I have bought ES3 regularly for the past 2 years. As of 24/1/2017 XIRR including dividends is 4.16%.

 

[K|muRa^84]

Good sia.

I buy since 2013. My returns is about 1.7%.

good?

i did a XIRR calc for the past 6 yrs to compare betw ES3 and IWDA

8% vs 2.3%

 

[stam]

good?

i did a XIRR calc for the past 6 yrs to compare betw ES3 and IWDA

8% vs 2.3%

IWDA 2.3% only???

Posted with My iPhone 7plus HardwareZone Forums app

 

[Mecisteus]

IWDA 2.3% only???

Posted with My iPhone 7plus HardwareZone Forums app

I think it is the other way round.

 

[K|muRa^84]

Yeah iwda 8%

 

[doody_]

Is that inclusive of dividends? Need to be specific for ES3.

For the same 2 year period, my XIRR for IWDA is almost 8% as well, not including the slight bonus from USD appreciation.

 

[Mecisteus]

Is that inclusive of dividends? Need to be specific for ES3.

Should be inclusive of dividends. ES3 was at a higher price during the start of the 2 year period. Last 1.5 years, ES3 was flat. So returns based on price alone should be slight negative or flat. Add dividends then slight positive returns.

Basically, all ETFs from other regions are giving higher total returns compared to STI for the last 2 years. You get good returns if you stick to the plan.

I am absolutely certain some of them will tend to sell or stop at some period of the year. So it is good to sign up for a forced savings plan like POSB IS, OCBC BCIP, KE MIP or Phillip SBP.

 

[Mecisteus]

1.5 years later, I am too lazy to update the latest data. But I got something to share which I posted on the other thread.

http://forums.hardwarezone.com.sg/112324379-post2430.html