Thursday, January 14, 2021

Invest in broad based ETF

 An individual should invest in an exchange traded fund (ETF) to enjoy exposure to the blue chip shares that are included in the market index. An ETF usually has an expense ratio that is less than 0.5% per annum.


I present below the ETFs that are popular with individual investors in Singapore. They track the S&P 500, Nasdaq, China stock and Singapore stock.

The 1 year return of the Nasdaq was the best. However, the PE ratio of the component shares are at a high level.

The 1 year return of the S&P 500 and the China stocks are around 20%. They are quite attractive.

The 1 year return of Singapore stocks have been disappointing.

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