Quick question about STI

[iwanthp]

Hi there! I recently went to open a SCB trading account (still pending havent open yet) and was thinking in investing in the STI stocks! However i read that to purchase SG stocks theres a minimum of 100 shares per lot and that STI the price now (according to the iphone stock app) is 3443?? Does that mean i need to purchase a total of $3443 x 100 to purchase the STI? Coz i just started and my capital aint that big maybe only a few thousand for now as im still studying :/

 

[Perisher]

You can't buy STI directly. ETF is the way to go, it tracks STI. 2 popular ones are G3B and ES3, you will realise their price is just $3++, which if you times 100 shares, it's $300++ which is what you should be able to afford.
Do note SCB charges min $10 for every trade, buy or sell so, calculate it yourself if you still think 100 shares is worth it. I will usually go by thousands instead of hundreds to make the comms worth paying.

 

[JuniorLion]

Alternatively, use POSB Invest-Savers. They will invest a fixed amount for you every month (minimum: $100).

There are other similar ones like OCBC Blue Chip Investment Plan, UOB Regular Investments Savings Plan, etc.

Here are some links:
POSB: https://www.posb.com.sg/personal/investments/investing-in-funds/invest-saver
OCBC: https://www.ocbc.com/personal-banking/investments/bluechip.html
UOB: http://www.uob.com.sg/personal/invest/unit-trusts/regular-investment.page
MayBank: http://www.maybank-ke.com.sg/latest-offerings/listing/sgd0-commission-with-monthly-investment-plan/
Standard Chartered: https://www.sc.com/sg/_pdf/OUT-RSP.pdf

 

[Shiny Things]

Hi there! I recently went to open a SCB trading account (still pending havent open yet) and was thinking in investing in the STI stocks! However i read that to purchase SG stocks theres a minimum of 100 shares per lot and that STI the price now (according to the iphone stock app) is 3443?? Does that mean i need to purchase a total of $3443 x 100 to purchase the STI? Coz i just started and my capital aint that big maybe only a few thousand for now as im still studying :/

Just riffing off Perisher’s post a bit:

The STI is an index that tracks the performance of 30 selected Singaporean stocks. You can’t invest in an index directly, but what you can invest in is an exchange-traded fund (ETF) that tracks the STI by buying those 30 stocks in the right proportions. You end up with about the same performance as the STI, plus you get dividends as well (the STI doesn’t think about dividends).

The two active ETFs that track the STI are, as Perisher mentioned, G3B and ES3. You can buy them through your regular brokerage, or, if you’ve got a POSB Invest-Saver account, you can buy G3B through that. They’re basically identical; either one is fine.

The lot size of both of those is about $300-ish, but the good thing about POSB Invest-Saver is that you can buy less than $300 at a time - you can buy as little as one share at a time, with regular, no-fuss debiting from your bank account, so you don’t even need to think about it.

 

[sgdividends]

Hi there! I recently went to open a SCB trading account (still pending havent open yet) and was thinking in investing in the STI stocks! However i read that to purchase SG stocks theres a minimum of 100 shares per lot and that STI the price now (according to the iphone stock app) is 3443?? Does that mean i need to purchase a total of $3443 x 100 to purchase the STI? Coz i just started and my capital aint that big maybe only a few thousand for now as im still studying :/

Nope.

100 shares of sti etf (es3) only about $3.46 times 100....about 346 bucks plus 10 bucks min comm..

The ETF price (es3)is roughly the STI divded by 1000 for 1 share.now it is $3.46 per share.

 

[camholicx]

Is it good time to buy now

 

[JuniorLion]

Is it good time to buy now

Can be lower if you want to wait, no point buying on a high.

 

[Maeda_Toshiie]

Is it good time to buy now

I think none of us have a crystal ball that tells us what the STI will be in the next 1 month, 6 months, 1 year, 5 years, 10 years, 20 years, etc.

Moral of the story, slowly buy into the market and stop fretting over market fluctuations.

 

[iwanthp]

Thanks for the replies above! Will consider them too ) Anyone can advice whether is G3B or ES3 better for long term investing? Seen online where some have said ES3 has higher dividends each year but G3B has lower costs and less tracking error :/

 

[JuniorLion]

Thanks for the replies above! Will consider them too ) Anyone can advice whether is G3B or ES3 better for long term investing? Seen online where some have said ES3 has higher dividends each year but G3B has lower costs and less tracking error :/

ES3 has longer history, though.

 

[Maeda_Toshiie]

Thanks for the replies above! Will consider them too ) Anyone can advice whether is G3B or ES3 better for long term investing? Seen online where some have said ES3 has higher dividends each year but G3B has lower costs and less tracking error :/

They track the same index physically (optimized or not) so their returns should be the same (capital + dividend). ES3 should have a slightly lower TER (I don't know where you get that G3B has a lower TER).

 

[makav31i]

Just riffing off Perisher’s post a bit:

The STI is an index that tracks the performance of 30 selected Singaporean stocks. You can’t invest in an index directly, but what you can invest in is an exchange-traded fund (ETF) that tracks the STI by buying those 30 stocks in the right proportions. You end up with about the same performance as the STI, plus you get dividends as well (the STI doesn’t think about dividends).

The two active ETFs that track the STI are, as Perisher mentioned, G3B and ES3. You can buy them through your regular brokerage, or, if you’ve got a POSB Invest-Saver account, you can buy G3B through that. They’re basically identical; either one is fine.

The lot size of both of those is about $300-ish, but the good thing about POSB Invest-Saver is that you can buy less than $300 at a time - you can buy as little as one share at a time, with regular, no-fuss debiting from your bank account, so you don’t even need to think about it.

Actually for POSB Invest Saver, you cannot buy as little as one share at time...The minimum investment amount is $100/month...You cannot decide when to purchase the shares and at what price...

 

[Maeda_Toshiie]

throw ah!! all your coffin money in today invest ah! Sell house, sell wife, sell barbie doll raise money.

if you investing means you believe the price is going up in future so unless the world is ending how can waiting for share price to drop works. DCA is a scam la. now you flip the situation, economy recession so market is going down but why would you want DCA. just buy at the low point of recovery. gong gong finished DCA is a scam by companies to earn fees from you.

who can prove DCA earns a higher returns net of fees? who who! who!!

Noted.

Ok, since you make the call that the market is going down, why don't you sell everything and short the market right the F now? NPNT.

 

[Mecisteus]

who can prove DCA earns a higher returns net of fees? who who! who!!

DCA is Dollar Cost Averaging

Do you understand what is average?

 

[iwanthp]

They track the same index physically (optimized or not) so their returns should be the same (capital + dividend). ES3 should have a slightly lower TER (I don't know where you get that G3B has a lower TER).

Oh yes yes im so sorry i mixed them up its ES3 that has a lower TER hahaha

 

[jq1130]

Just riffing off Perisher’s post a bit:

The STI is an index that tracks the performance of 30 selected Singaporean stocks. You can’t invest in an index directly, but what you can invest in is an exchange-traded fund (ETF) that tracks the STI by buying those 30 stocks in the right proportions. You end up with about the same performance as the STI, plus you get dividends as well (the STI doesn’t think about dividends).

The two active ETFs that track the STI are, as Perisher mentioned, G3B and ES3. You can buy them through your regular brokerage, or, if you’ve got a POSB Invest-Saver account, you can buy G3B through that. They’re basically identical; either one is fine.

The lot size of both of those is about $300-ish, but the good thing about POSB Invest-Saver is that you can buy less than $300 at a time - you can buy as little as one share at a time, with regular, no-fuss debiting from your bank account, so you don’t even need to think about it.

Hi Shiny Things,
if i plan invest $300/month SPDR STI at MaybanK KimEng or i save up $1000 invest lumpsum STI ETF ?
Any suggest for new invest STI ETF?
Thanks

 

[havetheveryfun]

DCA is to average down lei.. why kum gong average up. In a rising market how can DCA work. Market must crash in future more than dividend income also in order to average down and also net off brokerage fees from the monthly buy sell.

Who is the Kum gong. Who who! Who!! Faster sell house! Sell Wife! Throw coffin money invest everything lump sum.

*I’m not vested. Throw coffin money at your own risk

DCA is not to purely average down.

In a rising market how can DCA work? Simple, what if the prices never go back down? Like DJ which just keeps rising and rising? If you had DCA-ed DJ when it was still only around 20k last year Oct, you would be sitting on a tidy sum of profits.

Actually, DCA only works in a rising market..you don't mind getting the shares at a higher price because you know it will go even higher (due to inflation, higher popn growth, etc and what not) there is no point in DCA-ing a market that is falling for sure 100% because you would only be sitting on losses after more than a decade.

 

[xyziop]

DCA is not to purely average down.

In a rising market how can DCA work? Simple, what if the prices never go back down? Like DJ which just keeps rising and rising? If you had DCA-ed DJ when it was still only around 20k last year Oct, you would be sitting on a tidy sum of profits.

Actually, DCA only works in a rising market..you don't mind getting the shares at a higher price because you know it will go even higher (due to inflation, higher popn growth, etc and what not) there is no point in DCA-ing a market that is falling for sure 100% because you would only be sitting on losses after more than a decade.

Correct me if I am wrong, but dca works as long as the index is volatile.
The only reason I can think of that makes dca a losing strat over long time horizon is when the index trades sideway over that same time frame.

But for people dca-ing into nikkei at its all time high then I think they are still in the red?