What do you think of STI ETF? i am considering to B & H in the future for "safety in numbers". Am i correct to say that? But is it a worthy B & H even after all the fund's "expenses"? If i use CPF OA money to buy, is it still viable considering foregoing 2.5 to 3.5 % of interest p/a? All opinions are welcome. (Er.....sorli, i only got very basic arithmetics ).
(12-05-2012, 10:09 AM)Temperament Wrote: [ -> ]What do you think of STI ETF? i am considering to B & H in the future for "safety in numbers". Am i correct to say that? But is it a worthy B & H even after all the fund's "expenses"? If i use CPF OA money to buy, is it still viable considering foregoing 2.5 to 3.5 % of interest p/a? All opinions are welcome? (Er.....sorli, i only got very basic arithmetics only).
I used to have STI ETF, long before it became 'SIP' and now I can't invest unless I go for 'SIP' exams!
Anyway, STI ETF also pays dividend twice a year. The last one for Dec11 = 5.5ct ; Jun11 = 4.5ct. The payout depends on the amount they collected from the STI component stocks. Oh ya, it's one of the rare few non-synthethic ones ie. not using Derivatives (pls do chk yourself). The Yield should be enough to cover OA 'opportuniy cost' but will fluctuate depending on your entry price and Dividend Payouts.
I have not checked the ETF's expenses but I just assumed that it's a lot lower than Unit Trusts. Even Warren Buffett recommends ETF vs Funds (like our Unit Trusts) cos' of the much lower expenses, for those who doesn't know how to invest in stocks well...
STI ETF does have a little derivatives for certain purpose I remembered STI was holding Golden Agr warrants for one reporting period last time I checked.
Nikko STI ETF(f.k.a DBS STI ETF) holds a little currency contract I read in one of their reports.
but they are considered safe as the exposure is minimum and non-speculative in nature.