How To Buy STI ETF In Singapore?
Are you thinking of how to buy STI ETF? There are certainly various ways to invest in STI ETF. This depends on the investor’s investment quantum and preference.
One of the key reasons why people buy STI ETF is due to its very low cost of ownership as compared to buying individual top 30 SGX stocks separately. You can either invest directly for STI ETF like a stock via security firms such as POEMS and Maybank. For those who prefer regular investment plans, you can need to compare the current fees of these regular monthly investment plans to be charged by the service providers.
|POSB||OCBC||POEMS||Maybank Kim Eng|
|Types of STI ETF||Nikko AM STI ETF||Nikko AM STI ETF||SPDR STI ETF||Nikko AM STI ETF|
|Investment Plan||Invest-Saver||Blue Chip Investment Plan||Shares Builder Plan||Monthly Investment Plan|
$5 (whichever is higher)
|For < $1k, $6.
For > $1K, 0.2%/$10 (whichever is higher)
|< $1K, 1% >$1k, 0.18%
|Selling||Full redemption||Odd lot||Odd lot|
|Fees if invest @ $100/mth||$1||$5||$6||$1|
|Fees if invest @ $500/mth||$5||$5||$6||$5|
|Fees if invest @ $2000/mth||$20||$6||$10||$3.60|
|Yearly Fees if invest @ $100/mth x 12||$12||$60||$72||$12|
|Yearly Fees if invest @ $500/mth x 12||$60||$60||$72||$60|
|Yearly Fees if invest @ $2000/mth x 12||$240||$72||$120||$43.20|
Note: The information presented above is dated on 3 Apr 2016 to replace SCB with Maybank Kim Eng. The service provider may change their terms and conditions or incorporate promotional offers to lure new customers for a limited period of time. Other usual fees such as clearing, trading fee is not presented in this table.
Which Option To Buy STI ETF Is Better?
Before you decide which option is better, you need to understand the risks and benefits of investing in STI ETF and your own risk profile and experience. Here are two suggestions for your considerations:
If you are new to investing in ETFs or you have smaller investment capital to play with say a monthly investment amount of $100, POSB Invest Saver plan could be a good choice. Such regular saving plan can instill discipline in your regular investing habit at a very low cost of owning such STI ETF units. As it is an automatic deduction from your saving account, a one time setup will save you a hassle of doing this on every month unless you wish to adjust the monthly investment amount.
For experienced and value investors
If you have invested stocks before and you are very particular about the returns of your investments, My personal preference is to invest STI ETF via POEMS. This is mainly because it is my own preference to look at the chart of STI Index to invest a certain amount at the right opportunistic time to boost my overall returns. The attractiveness of STI ETF is increasing especially when STI Index is trending downing by a whopping 21% from its recent peak at 3539 (dated 15 April 2015) to 2793 (dated 2 Oct 2015).
How to buy STI ETF through POSB Invest-Saver?
Step 1: Log onto your iBanking account
Step 2: Click on “Investment & Trading” >> “Exchange Traded Fund Regular Savings Plan” >> “Setup Exchange Traded Fund Regular Savings Plan”
Step 3: Select the Exchange Traded Fund of choice and key in your intended monthly investment amount
Step 4: You are required to click on the hyperlinks to read the Prospectus and Product Highlights Sheet carefully which contain details of the ETF that you had selected
Step 5: You are also required to click on the hyperlink to the Terms and Conditions Governing Investment in Funds and tick the checkbox before you continue with the application.
Step 6: Confirm & submit your order
You can also invest through POSB Invest-Saver for the Nikko AM Singapore STI ETF at any of our ATMS by following these steps:
Step 1: Insert your ATM/ Debit card and enter your PIN. Go to service menu
Step 2: Select the option “Regular Savings Plan for Exchange Traded Fund (RSP ETF)”
Step 3: Select the option “RSP Set up/Change of subscription amount”
Step 4: Read the Terms & Conditions (“Terms”). You may obtain the full Terms & Conditions Governing Investment in Funds from our branches or from www.posb.com.sg/investsaver
Step 5: Confirm that you agree to accept the Terms by clicking on the “Continue” button on the screen
Step 5: Select your Tax Status and key in your intended monthly investment amount
Step 6: You will receive an ATM receipt confirming your application.
Upon successful setup, the Bank will send you a confirmation letter to inform you that your investment into the POSB Invest-Saver is set up and when the first deduction will take place.
The above write up is to share how to buy STI ETF and it should not be construed as an investment advise.