25-07-2013, 10:36 AM
ETFs do not necessarily mean safe either. There seems to be more and more ETFs that dump a bunch of stuff inside, label it "safe" simply because it is "diversified".
Remember the CDOs? Throw a bunch of junk bonds inside, and the top tranches can be sold as AAA securities simply because the odds of all junk defaulting at the same time is low.
I have nothing against the STI ETF but i wonder how many who buy it realises that 40% of the weight is in DBS, UOB, OCBC and Singtel.
Remember the CDOs? Throw a bunch of junk bonds inside, and the top tranches can be sold as AAA securities simply because the odds of all junk defaulting at the same time is low.
I have nothing against the STI ETF but i wonder how many who buy it realises that 40% of the weight is in DBS, UOB, OCBC and Singtel.