STI ETF

[Squaredot]

It’s not comparable one you know right.

Cannot compare absolute $

care to explain why cannot compare?

Both ETF are tracking STI.

 

[zoneguard]

care to explain why cannot compare?

Both ETF are tracking STI.

1. Their prices actually differ from each other.
2. The XD dates are different, meaning the accumulated dividends from the underlying assets will be different as different assets give off dividends at different dates.

 

[gasband]

care to explain why cannot compare?

Both ETF are tracking STI.

I buy into ES3 simply because I started long time go and ES3 has been around longer. While they both track STI, they also have differences in terms of fund size, tracking error, expense ratio etc. With the exception of this year, ES3 had given bigger dividends in terms of value in previous years. But yet absolute value is one thing, the cost of your investment will determine whether the dividend is worth it. For example, if the cost of person a whose cost of ES3 investment is $3, the dividend he received will be more "profitable" in terms of percentage compared to someone whose cost of investment in G3B is $3.5 for example even if the absolute value is higher.

Just my simplistic thoughts.

 

[wutawa]

I suggest u replace sti etf with es3 to avoid confusion.

 

[reddevil0728]

care to explain why cannot compare?

Both ETF are tracking STI.

It’s the % that matters.

You can have 2 ETFs tracking the same index. One is priced at $1 the other is priced at $5.

If the index goes up by 10%, the $1 etf becomes $1.1, the $5 etf Becomes $5.5.

A dollar $5 etf doesn’t mean it’s more expensive than a $1 etf

 

[MajinBuui]

Ya i think there are a few ETFs you can invest with CPF OA beyond the first 20K. But of course CPF money you just need to evaluate its worth investing because you are looking at 2.5% base interest rate right now and also whether you foresee using this CPF anytime soon. So do your own analysis and if you think you can make alot more than 2.5%, then why not. But with any investment like this, there are always risks or you might need a long time before gains can make sense. Make sure factor these into your decision. Just an opinion.

Thanks for sharing, I dont touch my cpf money for investment during normal times...just looks like a decent price to start averaging in.
as long as can achieve slightly above 2.8% P.A (since risk free rate of cpf oa is 2.5% and es3 expense ratio is 0.3%) should be better than putting inside CPF OA.
shiok sia only the 3 banks in STI ETF earn free friction cost from me buying and free earning quarterly fee just from me holding on to this.

Do any of you utilise cpf oa for STI etf or is there any other better choice etf for cpf investing?

 

[Squaredot]

It’s the % that matters.

You can have 2 ETFs tracking the same index. One is priced at $1 the other is priced at $5.

If the index goes up by 10%, the $1 etf becomes $1.1, the $5 etf Becomes $5.5.

A dollar $5 etf doesn’t mean it’s more expensive than a $1 etf

I understand your point.
But your example is not relevant for these two STI ETF, they are about same price

 

[crystalnox]

I understand your point.
But your example is not relevant for these two STI ETF, they are about same price

They accumulate and distribute dividends over different time frames. That alone will make their absolute dividend $ incomparable.

 

[Squaredot]

They accumulate and distribute dividends over different time frames. That alone will make their absolute dividend $ incomparable.

different time frame means different accounting period

 

[weng0202]

Thanks for sharing, I dont touch my cpf money for investment during normal times...just looks like a decent price to start averaging in.
as long as can achieve slightly above 2.8% P.A (since risk free rate of cpf oa is 2.5% and es3 expense ratio is 0.3%) should be better than putting inside CPF OA.
shiok sia only the 3 banks in STI ETF earn free friction cost from me buying and free earning quarterly fee just from me holding on to this.

Do any of you utilise cpf oa for STI etf or is there any other better choice etf for cpf investing?

I have 24k shares of ES3 using my OA. At 4% dividend already better returns than cpf. Haven't count in the potential capital gain in the future when the dust settles for this pandemic.

 

[crystalnox]

different time frame means different accounting period

You are referring to comparing the recent dividends from the two right?
ES3 $0.059
G3B $0.0662

ES3 accumulates dividends roughly from Feb to Aug.
G3B accumulates dividends roughly from Jan to Jul.

So that's two months off from each other.
Those companies that distribute dividends in Jan will be captured in G3B's Jul dividend but not in ES3's Aug dividends.
While those companies that distribute dividends in Aug will only be captured in ES3's Aug dividends and not G3B's Jul dividend.*

*estimation/not official figures but the idea is there

 

[audiovideo]

I have 24k shares of ES3 using my OA. At 4% dividend already better returns than cpf. Haven't count in the potential capital gain in the future when the dust settles for this pandemic.

following your footsteps

 

[Thoreldan]

I have 24k shares of ES3 using my OA. At 4% dividend already better returns than cpf. Haven't count in the potential capital gain in the future when the dust settles for this pandemic.

U bought the 24k shares lump sum ?
What price did u enter ?

 

[MajinBuui]

I have 24k shares of ES3 using my OA. At 4% dividend already better returns than cpf. Haven't count in the potential capital gain in the future when the dust settles for this pandemic.

I also starting to buy and accumulate, but i highly doubt this year can get 4% dividend.

3 banks kena request by MAS to limit dividend payout.
Singtel dividend cut
Keppel never ending harsh winter since 2016.
SIA SATS gg for dividend
Genting mayb also gg dividend
those real estate one i think also DPU drop i think

 

[Squaredot]

You are referring to comparing the recent dividends from the two right?
ES3 $0.059
G3B $0.0662

ES3 accumulates dividends roughly from Feb to Aug.
G3B accumulates dividends roughly from Jan to Jul.

So that's two months off from each other.
Those companies that distribute dividends in Jan will be captured in G3B's Jul dividend but not in ES3's Aug dividends.
While those companies that distribute dividends in Aug will only be captured in ES3's Aug dividends and not G3B's Jul dividend.*

*estimation/not official figures but the idea is there

Thank you bro, good explanation!

 

[reddevil0728]

I understand your point.
But your example is not relevant for these two STI ETF, they are about same price

Yea so the absolute number doesn’t mean anything.

 

[Mecisteus]

Not advisable to use CPF OA to invest in STI ETF.

The returns from STI ETF don't justify the risk premium by investing with your CPF OA.

Your cash is earning near 0%. My expected returns on STI ETF is probably 4-6% only.

Your CPF OA is already earning at least 2.5%. Do you think 4-6% is worth the risk?

 

[audiovideo]

What is the risk to invest with cpf oa?
2.5% vs 4-6%?
Cash earning 0%?

 

[reddevil0728]

What is the risk to invest with cpf oa?
2.5% vs 4-6%?
Cash earning 0%?

The risk might be -0% if your time horizon ain’t long enough or invest wrongly

 

[yumsang]

The risk might be -0% if your time horizon ain’t long enough or invest wrongly

ok... can tahan till end next year or mid 2022