STI Exchange Traded Fund

Dear Mr. Tan,

Can you kindly explain the difference between investing in Singapore equity and STI ETF?

REPLY

The STI ETF (exchange traded fund) is invested in about 40 Singapore shares that comprise the STI market banchmark. It has an annual expense ratio of 0.3%

There are many funds that are invested in Singapore equity. The actual shares that are invested in the fund are selected by the fund manager. The annual expense ratio vary from 1% to 2.5%, depending on the fund.

I prefer to invest in the STI ETF.