Investing your hard-earned money is never an easy thing. You need to be mindful of all the investment options and be fairly alert to evaluate the best ones to shortlist for your own benefit. If you are a beginner to this investment journey, ETFs are what we would recommend the most. ETFs (Exchange Traded Funds) offers absolute ease, liquidity and flexibility when it comes to trading and earning. ETFs, in simple words, are a way you can track the entire stock market and invest accordingly. Now, a natural question that can arise out of this is, there are other ways you can track the stock market – by mutual funds; then why choose ETF over everything else? Where mutual funds are far more expensive and are professionally managed, incurring major back end expenses, ETFs offer the same benefits in lesser rates. Also, they are passively managed, thus reducing further expenses as well.
So, how do you find the best ETFs in Singapore? Singapore, being one of the booming financial hubs, it offers tremendous options when it comes to ETFs. Hence, we will list some of the top ETFs in Singapore to make your research process easier and help you invest better.
SPDR STI ETF
If you are looking for the ‘X best-performing stocks’ and need proper evaluation, SPDR STI offers just that. STI (Straits Times Index) will list down literally the best companies in trading on the SGX. This will give you a full-fledged idea about where and when to invest and not. It won’t be a wrong claim if one says that SPDR STI is a beginners’ guidebook to investing in the Singapore stock market. Moreover, it has more credibility because it doesn’t just list a particular sector of industry but deals with the entire industry as a whole. Hence, the many perks of SPDR STI have drawn it as one of the top ETFs in Singapore. It is also said that, since 2002, SPDR STI has been rewarding investors with massive annualized returns of 3.8%, excluding dividends. And, if dividends were to be added to the overall returns, it comes up to 7%, which is one of the absolute best.
Nikko AM Singapore ETF
Nikko AM, sort of mirrors the SPDR STI ETF in terms of objectives of replicating the top thirty companies from the Straits Times Index. Nikko AM Singapore is also one of the major and most trusted ETFs after SPDR, which is claimed as a remarkable height that the ETF has achieved. Nikko AM is a fairly established ETF with 0.3% of the expense ratio on the investors’ side. This is similar to that of the SPDR ETF again. The ETF has successfully rewarded its investors with an average reward of around 11.65% over the past three years. Nikko AM Singapore is the best solution to those investors who are looking to enter the stock market investments with absolute ease, reliability and affordability. This competitive Nikko AM Singapore ETF is one of the most reliable ETFs in Singapore with almost negligible drawbacks.
ABF Singapore Bond Index Fund
As mentioned before, ETFs deal with a whole range of trading, and the ABF Singapore Bond Index is one of the examples allegiant to the fact. Moreover, if you are the one who is always on the lookout for investing safely, without any fear of the stock market crashing midway, this ETF is the one to your rescue. ABF Singapore Bond Index offers safe handling of your assets. Also, the greatest takeaway that the ABF Singapore Bond Index has is that it offers a ‘group buy’ for a bunch of bonds that are issued by the most credible government entities such as the HDB, LTA and Temasek Holdings. The returns of the ABF Singapore Bond Index Fund may not be quite appealing to investors as compared to the other ETFs in Singapore, but it deals with an expense ratio as low as 0.26%. Thus, the credibility of this ETF has a strong holding in the minds of the investors who are trying to deal with investments that are less risky.
Phillip SGX APAC ETF
Singaporeans, undoubtedly have a thing for stocks with dividends. The positioning of the Phillip SGX APAC ETF has been made keeping in mind the exact thing. They have even given a tagline to the ETF that would encourage Singaporean investors to invest in this particular ETF – ‘get your regular dividend fix’. If you are aiming for a package that will offer you the list of the top SGX companies offering high-dividend in one compiled list to help you make your investment decisions better, Phillip SGX APAC ETF is the destination you have been looking for. Dividends are paid in the month of June and December, every year, so timely rewards are not a concern for investors. Meanwhile, this dividend stock also yields a 5% dividend every year, with almost 0.7% of expense ratio.
Ishares MSCI Singapore ETF
Ishares MSCI Singapore ETF deals with the financial, industrial and real estate sectors of the country. Basically, if you are looking to invest your money in large to mid-cap companies, Ishares MSCI Singapore measures the performance of those companies. This gives you a clear insight into your investment options for those companies. The Ishares MSCI Singapore makes up for one of the greatest options because it holds a large portfolio of assets – 39.3% financial assets, 21.4% real estate companies and 18% industrial segment. Hence, this ETF has rewarded the most amount of returns in the three-year term of a surging 48.8%, which is the highest in the industry.
The top ETFs in Singapore do not just limit to those listed above. The above-listed ones are just to make you aware of the most beneficial ones if you are the one who is just starting out with the concept of ETFs. However, the more you delve into the investment business and do your research well in understanding the various plans and strategies available to you, whether ETFs or not, the more you are to make the right investment decisions and benefit accordingly.