STI ETF

[Iyarash11]

Ya, trying to explain to you this part "I really don't understand why people want to invest in STI ETF."

since you don't understand

if nothing happen to Singapore market ... will STI ETF ever run into problem?

if it can just keep going replicating the index, paying out dividend, and in time to come some capital gain, then this is the reason why I invest in it.

 

[reddevil0728]

if nothing happen to Singapore market ... will STI ETF ever run into problem?

if it can just keep going replicating the index, paying out dividend, and in time to come some capital gain, then this is the reason why I invest in it.

People don't realise, if STI can't give them the returns they want, just don't invest in it. By talking down STI is like trying to suggest the big companies in Singapore should fail. So unless the person doesn't work or have friends and family working in Singapore, it's like asking for themselves to be retrenched. They may be able to do well in investment, but they will end up having no job.

 

[platee]

People don't realise, if STI can't give them the returns they want, just don't invest in it. By talking down STI is like trying to suggest the big companies in Singapore should fail. So unless the person doesn't work or have friends and family working in Singapore, it's like asking for themselves to be retrenched. They may be able to do well in investment, but they will end up having no job.

Wow since when you're in this forum. Thought you some siao on army guy.

 

[Tool18]

People don't realise, if STI can't give them the returns they want, just don't invest in it. By talking down STI is like trying to suggest the big companies in Singapore should fail. So unless the person doesn't work or have friends and family working in Singapore, it's like asking for themselves to be retrenched. They may be able to do well in investment, but they will end up having no job.

As boring as the this ETF is , I agree with this . ES3 will always be in my portfolio no matter its contribution .

 

[pytha6ora$]

Accumulated 20k shares @ avg $2.72. Im happy with any yield above 4%.

Quite happy when there are ppl saying es3 is boring. Different strokes for different folks.

 

[Iyarash11]

My 2 cents on current STI are supported by govt simulus packages and US market raise.
But when more economics data coming in after countries opening up, we will see the real figures.
That's why i aiming STI will go down below 2490 before climbing up again.
Invest cannot 感情用事。

Q2 bad results should not bring STI much lower, maybe just slight correction -100pts since "market is forward looking and already priced in"

 

[Mecisteus]

if nothing happen to Singapore market ... will STI ETF ever run into problem?

if it can just keep going replicating the index, paying out dividend, and in time to come some capital gain, then this is the reason why I invest in it.

It all depends on your views with SG going forward.

Will you think SG can continue to prosper and grow? Or the country will just collapse?

Since I am a Singaporean, rationally I would want the former to happen. So STI ETF is definitely appropriate to invest in if you believe in this.

The good old days of high growth rates with SG economy were gone. You need to expect lower growth rates as SG is already developed.

Thus, I am just expecting a modest single digits returns only for STI ETF in the long term.

On the other hand, do keep an allocation with stocks from the global market.

 

[d5dude]

It all depends on your views with SG going forward.

Will you think SG can continue to prosper and grow? Or the country will just collapse?

Since I am a Singaporean, rationally I would want the former to happen. So STI ETF is definitely appropriate to invest in if you believe in this.

The good old days of high growth rates with SG economy were gone. You need to expect lower growth rates as SG is already developed.

Thus, I am just expecting a modest single digits returns only for STI ETF in the long term.

On the other hand, do keep an allocation with stocks from the global market.

I'm also Singaporean so I want the country to do well too, but the reality is that many things have gone wrong in the last few years, this is why our local companies have done so poorly. Many companies on the STI are in terminal decline because they simply have not caught up with the world, many of them are just poorly run, the only stuff thats worked are reits, but thats just living off the land, it won't work forever.

Developed economies can have high quality companies too, I dun think it has much to do with expected returns.

 

[skpuppy]

Why ppl insisting on buying STI ETF when SG companies are faring so badly? Even if economy is good or recovered, can SIA go back to their heydays of > $20+? So many options to invest, die die want to plough into big hole? Patriotism?

 

[reddevil0728]

I'm also Singaporean so I want the country to do well too, but the reality is that many things have gone wrong in the last few years, this is why our local companies have done so poorly. Many companies on the STI are in terminal decline because they simply have not caught up with the world, many of them are just poorly run, the only stuff thats worked are reits, but thats just living off the land, it won't work forever.

Developed economies can have high quality companies too, I dun think it has much to do with expected returns.

Then just don’t invest in SG stocks lor? Whether they do badly or not doesn’t impact you on the investment front anymore.

Whether they are run poorly or not is a different conversation? Will you quit your job in Singapore and go overseas just cause they are being run poorly?

 

[d5dude]

Then just don’t invest in SG stocks lor? Whether they do badly or not doesn’t impact you on the investment front anymore.

Whether they are run poorly or not is a different conversation? Will you quit your job in Singapore and go overseas just cause they are being run poorly?

We are discussing ES3 investment here, not talking about jobs.

 

[reddevil0728]

Why ppl insisting on buying STI ETF when SG companies are faring so badly? Even if economy is good or recovered, can SIA go back to their heydays of > $20+? So many options to invest, die die want to plough into big hole? Patriotism?

Different strokes for different folks. And information asymmetry.

It’s like people will ask you, why are you risking forex risk? Pure gamble?

Sometimes it’s also about “optimism”, aligning long term interest.

You want to invest in SG stocks because you hope that it does well, cause it also impacts you, family and friends livelihood unless you don’t live and work in Singapore. So patriotism to oneself?

 

[reddevil0728]

We are discussing ES3 investment here, not talking about jobs.

You don’t see the linkage?

You also didn’t see that I say just don’t invest in ES3?

 

[d5dude]

You don’t see the linkage?

You also didn’t see that I say just don’t invest in ES3?

What linkage? There are many foreign MNCs in SG, dun assume that everyone is working for local companies.

And yes thats what my earlier post was about... that ES3 is a bad investment.

 

[Mr. Wood]

Why ppl insisting on buying STI ETF when SG companies are faring so badly? Even if economy is good or recovered, can SIA go back to their heydays of > $20+? So many options to invest, die die want to plough into big hole? Patriotism?

nobody say die die must buy SG stocks. whatever fits yr investment style and portfolio, go ahead.

 

[Mr. Wood]

STI ETF was the obvious choice until very recently. many years ago, there are no cheap brokerage fees allowing ordinary ppl to DCA into the stock mkt. and we all know ILPs investments suck profits. So came I think was MAS and the big banks who introduced DCA into STI ETF. The banks did not actively promote STI becos there are just too little fees to be made. Until recently came robos and overseas brokers who charge as little fees, then the big banks oso offered more products.

 

[reddevil0728]

What linkage? There are many foreign MNCs in SG, dun assume that everyone is working for local companies.

And yes thats what my earlier post was about... that ES3 is a bad investment.

Yep so you just made it clear that you don’t see the linkage.

You don’t have to be working for a local company to be impacted. We are talking about STI which consist of the 30 “largest” locally listed company. If they aren’t doing well, it impacts the entire economy. So even if one might be working for a MNC, having a bad local economy are you saying it wouldn’t impact them at all?

The reason why MNCs are setting up shop in Singapore is, in addition to many many other reasons, is also cause they can make money in Singapore. If the whole economy is bad because the biggest local companies aren’t doing well, resulting in depressed in consumer spending because those working for them aren’t earning as much, which resulted in MNC having lower locally derived revenue, do you think they wouldn’t pull out of Singapore and people who work for MNCs end up also losing their job???

Yes it might be a bad investment in relative terms for people who invest in other things.

But for people who are only comfortable putting their money in the bank earning meagre interest, investment in STI ETF might be better than that.

 

[reddevil0728]

nobody say die die must buy SG stocks. whatever fits yr investment style and portfolio, go ahead.

Agreed. Nobody forcing anyone to invest in SG stocks. Not happy with returns, just don’t buy. There are way more people out there who’s happy with just SG stocks. Who are we to say they are wrong?

 

[d5dude]

Yep so you just made it clear that you don’t see the linkage.

You don’t have to be working for a local company to be impacted. We are talking about STI which consist of the 30 “largest” locally listed company. If they aren’t doing well, it impacts the entire economy. So even if one might be working for a MNC, having a bad local economy are you saying it wouldn’t impact them at all?

The reason why MNCs are setting up shop in Singapore is, in addition to many many other reasons, is also cause they can make money in Singapore. If the whole economy is bad because the biggest local companies aren’t doing well, resulting in depressed in consumer spending because those working for them aren’t earning as much, which resulted in MNC having lower locally derived revenue, do you think they wouldn’t pull out of Singapore and people who work for MNCs end up also losing their job???

No? The MNCs are here to take advantage of SG's low taxes, rule of law, good infrastructure and cheap/good workforce, why would Singtel doing poorly affect a company like Apple or Google?

Most MNCs dun set up shop in SG to take advantage of SG's tiny market (read above), the office here usually serve as a regional base to tap into the SEA market and sometimes, the greater China market. Anyway all these is irrelevant... I dun see how investing in local companies is going to change anything, it will fail if its bad, investing in a bad company isn't going to make it good.

Yes it might be a bad investment in relative terms for people who invest in other things.

But for people who are only comfortable putting their money in the bank earning meagre interest, investment in STI ETF might be better than that.

This is a joke right? If you know there are better investments out there then why put your money in this bottomless pit? The point of this discussion is not to figure out if it makes sense to put more money into a bad investment, its to figure out if ES3 is a bad investment.

 

[reddevil0728]

No? The MNCs are here to take advantage of SG's low taxes, rule of law, good infrastructure and cheap/good workforce, why would Singtel doing poorly affect a company like Apple or Google?

Most MNCs dun set up shop in SG to take advantage of SG's tiny market (read above), the office here usually serve as a regional base to tap into the SEA market and sometimes, the greater China market. Anyway all these is irrelevant... I dun see how investing in local companies is going to change anything, it will fail if its bad, investing in a bad company isn't going to make it good.

Guess you aren't seeing it still. Firstly I said "in addition to many many other reasons".

Secondly...

have you asked yourself why we have low taxes? If the economy is not doing well, which resulted in lower tax revenue, and because the economy isn't doing well, the government have to step up aid to the people but they don't have as much tax revenue for them to do so, what do you think they will do next?

Same goes why why do you think Singapore has good rule of law, good infrastructure and cheap/good workforce?

If Singtel or other similar firms can't earn enough to invest in infrastructure, do you think we will still have good infrastructure?

Singtel doing poorly might not have a direct impact on like Apple or Google, but you don't see the greater downstream repercussion? Those big local companies employ a large chunk of the local work force. If they don't do well, and have to retrench people, and Singapore has high unemployment, which resulted in depressed consumer spending, which in turn have much greater repercussions.

As I said, in terms of investment, those people who are more well read might find way better investments out there as compared to STI ETF, but one shouldn't talk down (curse) the STI ETF just because they aren't getting the the returns they want from it, unless one, or friends and family doesn't work in Singapore. That's my point

This is a joke right? If you know there are better investments out there then why put your money in this bottomless pit? The point of this discussion is not to figure out if it makes sense to put more money into a bad investment, its to figure out if ES3 is a bad investment.

Well on a theoretical basis, you are right, why not invest in something else that is better.

But the world doesn't always operates on theory. There could be many other reasons, so hence "different strokes for different folks"? People want to invest in STI ETF because it is a "bad investment" is their problem no? Why you so angst for them?