STI ETF a.k.a. SPDR Straits Times Index ETF

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(31-03-2014, 10:56 AM)Art or Science Wrote: Much to learn as I've just started investing.

Looking at your previous posts, it seems that
1) you want to invest
2) you are looking at DBS vs OCBC (i.e. banking stocks)
3) you are not sure about valuation etc.

Perhaps the better thing to do is just to buy the STI ETF.

Generally, if you buy $1 of the STI, you are buying (off the back of my mind)
30+c of banks (i.e. DBS/OCBC/UOB),
10c of telcos (starhub, singtel),
15c of the Jardine Group,
15c of properties (CapitaLand, Global Logistics, CDL etc),
5c of Commodities (Olam, Noble etc)
and 20c of others (SPH, SIA Engine etc)

Felix has pointed out the the banks normally trade at roughly the same PE as the STI. This is not a coincidence but largely because of the fact that the banks occupy so much of the STI.

I will think if you like the banks, want exposure to the sector and not sure what you are doing, then the STI might be a better bet - you get roughly 40% exposure for each $1 placed and it comes with better diversification.
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STI ETF a.k.a. SPDR Straits Times Index ETF - by AlphaQuant - 31-03-2014, 11:31 AM

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