STI ETF

[churnmaster]

One of the advantages of investing in STI is that there is no currency risk. With oil prices rallying this is one of the things to be considered while investing in EM assets and also some DM assets.

 

[stanlawj]

At the end of the day, its for each investor to weigh the pros and cons of investing in STI ETF and DYODD. I've shared my STI purchases so you can roughly gauge the return

But I've always wondered whether the STI haters own investment portfolio performance actually beats the STI performance and by how much?

After all, if STI is so bad, must be that the STI haters portfolios should easily beat STI by double, triple, 10x ... so instead of just saying STI ETF bad, I don't know why I haven't seem them sharing their own portfolio and entry prices, so that we can compare, and maybe follow them instead of buying STI ETF

But this year, VWRD might be a better buy if it is correcting... but with my luck, STI will probably outperform VWRD this year.

Early sell signal for STI ETF (when The Edge praises STI)
https://www.theedgesingapore.com/ca...latility-gain-strength-and-set-outperform-hsi
Don't forget to lock in profits for your 20,000 shares when the time comes. 2022 is the year STI reaches fair value.

 

[crystalnox]

But this year, VWRD might be a better buy if it is correcting... but with my luck, STI will probably outperform VWRD this year.

Wow that's very optimistic.

 

[limster]

Early sell signal for STI ETF (when The Edge praises STI)
https://www.theedgesingapore.com/ca...latility-gain-strength-and-set-outperform-hsi
Don't forget to lock in profits for your 20,000 shares when the time comes. 2022 is the year STI reaches fair value.

I'm terrible at selling shares. I tried trading before to learn how to sell better, but only made small profits and waste so much time staring at screen. So now I just buy and hold, though I am slowly selling to get rid of small holdings of individual stocks and replacing them with ETF, because buy and hold is generally more applicable to ETFs.

I've been holding a whole lot more than the 24,000 I bought in March 2020 (6 x,4000= 24,000) STI ETF for more than 10 years and its my biggest holding (but luckily less than 10% of my overall investment portfolio because I have so many counters). Average buying price under $2.50 plus every year I collect average of 3% dividends... since I'm so bad at selling...

But I guess I can reduce concentration risk by ensuring the % of VWRD and LSPU in my portfolio increases, which is my target this year.

 

[lasnoblur]

selling away this laggard (8% of portfolio) after XD in Feb.

 

[yumsang]

selling away this laggard (8% of portfolio) after XD in Feb.

why laggard? why selling?

 

[yuzu28]

I'm terrible at selling shares. I tried trading before to learn how to sell better, but only made small profits and waste so much time staring at screen. So now I just buy and hold, though I am slowly selling to get rid of small holdings of individual stocks and replacing them with ETF, because buy and hold is generally more applicable to ETFs.

I've been holding a whole lot more than the 24,000 I bought in March 2020 (6 x,4000= 24,000) STI ETF for more than 10 years and its my biggest holding (but luckily less than 10% of my overall investment portfolio because I have so many counters). Average buying price under $2.50 plus every year I collect average of 3% dividends... since I'm so bad at selling...

But I guess I can reduce concentration risk by ensuring the % of VWRD and LSPU in my portfolio increases, which is my target this year.

Bro i agree with you. There's really no right or wrong answer as long as your objectives can be achieved. Myself has no luck in trading and stonks, and ended up in losing money. I treat it as school fees. So, now I just concentrate on collection etfs and some stronger stocks. I'm holding I think close to 25k shares of ES3 in different accounts. So, I'm getting rid of those that I bought around 3.1 in SRS. Later will buy back if below 3.

 

[light84]

I'm terrible at selling shares. I tried trading before to learn how to sell better, but only made small profits and waste so much time staring at screen. So now I just buy and hold, though I am slowly selling to get rid of small holdings of individual stocks and replacing them with ETF, because buy and hold is generally more applicable to ETFs.

I've been holding a whole lot more than the 24,000 I bought in March 2020 (6 x,4000= 24,000) STI ETF for more than 10 years and its my biggest holding (but luckily less than 10% of my overall investment portfolio because I have so many counters). Average buying price under $2.50 plus every year I collect average of 3% dividends... since I'm so bad at selling...

But I guess I can reduce concentration risk by ensuring the % of VWRD and LSPU in my portfolio increases, which is my target this year.

I doing the same thing too. Holding ES3 for dividends since I bought a lot in 2020. Plan to unload once ES3 hit 3.8 to 4. This year focus is to load heavily on VWRA

 

[stanlawj]

I doing the same thing too. Holding ES3 for dividends since I bought a lot in 2020. Plan to unload once ES3 hit 3.8 to 4. This year focus is to load heavily on VWRA

There is no fundamental economics to support ES3 at 3.80 or 4.00. Better to sell at whatever price when it breaks the uptrending line.

 

[yumsang]

cannot have the best of both world, div and capital gain

 

[1l92041H]

I doing the same thing too. Holding ES3 for dividends since I bought a lot in 2020. Plan to unload once ES3 hit 3.8 to 4. This year focus is to load heavily on VWRA

feels like a bet on man city in the early 2010s and changing to man u just in case since they are historically stronger

 

[churnmaster]

STI is displaying better relative strength compared to many other indexes . . Just ride the wave as far as it goes.

 

[d5dude]

One of the advantages of investing in STI is that there is no currency risk. With oil prices rallying this is one of the things to be considered while investing in EM assets and also some DM assets.

Overweighting STI = currency risk since theres no guarantee that the SGD will do well over the next 20-30 years, this is on top of the concentration risk you get from the index itself e.g 3 banks make up 45% of index, limited global footprint, etc.

And I have no idea how oil prices have anything to do with EM or DM assets, I assume this is a short term market timing strategy or something of that sort.

 

[d5dude]

cannot have the best of both world, div and capital gain

Why not? Many companies that have been growing earnings for years consistently also pay dividends, dividends have nothing to do with whether you get a positive or negative return from investing in a stock, its all about earnings.

 

[churnmaster]

Overweighting STI = currency risk since theres no guarantee that the SGD will do well over the next 20-30 years, this is on top of the concentration risk you get from the index itself e.g 3 banks make up 45% of index, limited global footprint, etc.

And I have no idea how oil prices have anything to do with EM or DM assets, I assume this is a short term market timing strategy or something of that sort.

Since I'm earning and spending in SGD, I tend to look at returns in terms of SGD. If you look at the last 10-15 yrs, you will see that SGD has appreciated against most currencies, be it EM or DM. And looking at the fiscal situation of many of the large and promising EMs , I see that Singapore is much better off fiscally and this should lead to continuation of SGD appreciation over the next few years.

Higher oil price is a big negative for many EMs as their import bills go up putting additional burden on their forex reserves and also on their fiscal balances incase they are forced to reduce their import tariffs and taxes to lower the burden on the end consumers.

I'm in no way saying be overweight STI .... but for now there is a strong case to be invested in SGD denominated assets especially with STI displaying relative strength over other indexes.

 

[stanlawj]

Since I'm earning and spending in SGD, I tend to look at returns in terms of SGD. If you look at the last 10-15 yrs, you will see that SGD has appreciated against most currencies, be it EM or DM. And looking at the fiscal situation of many of the large and promising EMs , I see that Singapore is much better off fiscally and this should lead to continuation of SGD appreciation over the next few years.

Higher oil price is a big negative for many EMs as their import bills go up putting additional burden on their forex reserves and also on their fiscal balances incase they are forced to reduce their import tariffs and taxes to lower the burden on the end consumers.

I'm in no way saying be overweight STI .... but for now there is a strong case to be invested in SGD denominated assets especially with STI displaying relative strength over other indexes.

My conviction: SELL STI ETF and go into SGD cash to protect profits.
Opposite to you.
This sudden run-up from 3.30 to 3.40 onwards looks like it is driven by margin debt of speculators.

 

[pylpoh]

just sold all of my es3 a few minutes ago

 

[starbugs]

Since I'm earning and spending in SGD, I tend to look at returns in terms of SGD. If you look at the last 10-15 yrs, you will see that SGD has appreciated against most currencies, be it EM or DM. And looking at the fiscal situation of many of the large and promising EMs , I see that Singapore is much better off fiscally and this should lead to continuation of SGD appreciation over the next few years.

Higher oil price is a big negative for many EMs as their import bills go up putting additional burden on their forex reserves and also on their fiscal balances incase they are forced to reduce their import tariffs and taxes to lower the burden on the end consumers.

I'm in no way saying be overweight STI .... but for now there is a strong case to be invested in SGD denominated assets especially with STI displaying relative strength over other indexes.

Well said. It's not that we don't want to think outside of SGD, but MAS uses SGD appreciation to fight inflation, so foreign returns in SGD terms are often crimped off by forex losses. The USD will probably be hit by a massive devaluation in our lifetimes when US politicians play the debt ceiling game once too often. The only currency that I can think of that would outperform SGD is the CNY and that's why I have some of the China bank stocks.

 

[stanlawj]

just sold all of my es3 a few minutes ago

I support your move. Even if my sell call timing is too early, the remaining possible upside (gains) for STI ETF (3.40 to 3.60) is only 7%.

Right now the market is expecting at least 4 rate hikes. US economy is already entering a recession an economic growth deceleration as stimulus is being ramped down gradually. Also, for the largest trading partner with US: if China stocks are decoupled from US, then it wouldn't have crashed today. There is no evidence of China stocks decoupling from US stocks yet (note: I said China stocks, not China economy). I see this as a clear sign that stocks of trading partners with US will be hit hard.

If the Fed actually carries out fewer rate hikes this year, the SG bank stocks will topple. 17th March 2022 is the date the Fed will start announcing 1st rate hike.

The soon to be announced Singapore Budget 2022 on the 18th Feb 3.30pm is quite predictable: more taxes and wealth extraction from society to repay the spent govt reserves. Nothing stimulating from the Govt, because Govt cannof afford it anymore.

 

[apriliasiao]

just sold all of my es3 a few minutes ago

Just the opposite of you. Holding it dearly @ $2.5