STI ETF

[Potato_Wedges]

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?

Fully agree. Pointless really.

 

[reddevil0728]

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

If anybody knows they will be making infinite profit already

 

[Nyan]

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?

what about the capital gains after the covid 19 is over.

 

[reddevil0728]

what about the capital gains after the covid 19 is over.

Do you know when it will be over?

Need to be so aggressive with your cpf money?

 

[K20A]

$0.04 dividend on 25 Aug. Hopefully, can recover by year end.

 

[Nyan]

Do you know when it will be over?

Need to be so aggressive with your cpf money?

lol confirm la bro. sit on 2.5% for what. i dont even need it for the next few years.

 

[reddevil0728]

lol confirm la bro. sit on 2.5% for what. i dont even need it for the next few years.

So if next few years Covid become more deadly, market tank even more than every before, you are ok? Then if u ok then u proceed lor ur money ur call

 

[Nyan]

So if next few years Covid become more deadly, market tank even more than every before, you are ok? Then if u ok then u proceed lor ur money ur call

alot of things can happen. but it's a risk im willing to take.

 

[yumsang]

alot of things can happen. but it's a risk im willing to take.

Sg is with you.
How many more 100billion can we fork out?
if another 6mths to 1 year still no workaround then the world HUM liao

 

[Thoreldan]

Personally I won't invest cpf. I see it as my bond-like component.

Guaranteed 2.5 to 4 % where to find ?

Furthermore sti etf is really sucky

I use my cash for equity investment instead.

 

[yumsang]

wah sti jin ho cheong

 

[kehyi4]

$0.04 dividend on 25 Aug. Hopefully, can recover by year end.

erm, the div is $0.059 hor, pls don't undersell ES3 :3

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3#dividend

 

[reddevil0728]

alot of things can happen. but it's a risk im willing to take.

Ya go for it then.

 

[Mecisteus]

what about the capital gains after the covid 19 is over.

If you do a lumpsum and your timing is very good, of course the returns can be higher. Or much lower on the flip side.

My 4-6% pa expectation is if you just do a DCA over long term.

 

[MajinBuui]

Normal times I keep cpf oa untouched earn 2.5%, I still think at current price now is a good time to buy-in every 50 points/100points STI drop.

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3
now PE is about 9.02

earnings yield is around 11.0864%.
maybe instead of current earnings, from now till forever STI companies only manage to earn 60% of current earnings.
earnings yield becomes 6.6518%
minus expense ratio becomes 6.3518%.

2.5% vs 6.3518%

I still think worth to buy.

 

[5408854088]

Singapore stocks open lower on Friday; STI down 0.5%

https://www.businesstimes.com.sg/stocks/singapore-stocks-open-lower-on-friday-sti-down-05

 

[IamLucy]

Yeah ... I also worry sti will never go back to former glory ... good that you had a buffer of reduced earnings in ...

A pity that things like global index and US already recovered so much ... left this sti here ...

Normal times I keep cpf oa untouched earn 2.5%, I still think at current price now is a good time to buy-in every 50 points/100points STI drop.

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3
now PE is about 9.02

earnings yield is around 11.0864%.
maybe instead of current earnings, from now till forever STI companies only manage to earn 60% of current earnings.
earnings yield becomes 6.6518%
minus expense ratio becomes 6.3518%.

2.5% vs 6.3518%

I still think worth to buy.

 

[reddevil0728]

Yeah ... I also worry sti will never go back to former glory ... good that you had a buffer of reduced earnings in ...

A pity that things like global index and US already recovered so much ... left this sti here ...

That worry scenario you are painting is very scary you know, it's like gonna have 50% unemployment?

 

[Mr. Wood]

if it is true dat the stock market is fwd looking by 6 mths, then we hav to brace for more unemployments, retrenchments, slow exports.

 

[reddevil0728]

if it is true dat the stock market is fwd looking by 6 mths, then we hav to brace for more unemployments, retrenchments, slow exports.

6 months 1 year etc is arbitrary number.

It is really about investor sentiments.

Economy and stock market diff thing