Being an avid reader and observer of financial matters, Kay has set up this platform to post his views on financial topics with a focus on investments. Some of the topics that he hope to discuss in this platform includes fundamental analysis, valuation of companies, monetary policies, stock markets and other financial matters. It is hoped that through this platform, he will be able to offer readers an independent view and opinion on financial matters. He also hope to learn and gain more knowledge through exchanges with other readers. Currently, he is also a blogger on one of the CPF Board's websites @ IM$avvy.sg here.
Kay can be contacted at kay@moneytalk.sg
19 comments
Hi Kay,
Understand that you advocate investment in STI ETF.
Could you indicate what is the dividend yield in the last few years?
Another of my concern is liquidity. I have invested in the Singapore Index Fund managed by the Singapore Consortium Pte Ltd. The fund charge a front end fee of 2% with no charge for redemption. There is also a small management fee but I find it comfortable in the sense that when I want to redeem the fund, I can also sell it back to the fund manager. While for STI ETF, my concern is that there could be no buyer when I need see my shares. This is why I hesitate to buy STI ETF. Waht is your comment?
Hi,
It is rather difficult for me to tell you the dividend yield for the last few years. This is because the dividend yield depends on the price which you bought the STI ETF since dividend yield is dividends/price of STI ETF. Thus if you bought it at a low price, the dividend yield will be high and vice versa. A rough range would be around 1% to 5%. The dividends in the past can be found @ http://info.sgx.com/webcorpinfo.nsf/revamp+new+list+of+corporate+distributions/?OpenView&RestrictToCategory=STI%20ETF.
Liquidity is not so much of a concern unless you are investing in a huge amount. The trading volume of the STI ETF can hit 100 lots easily these days. Even in the festive season now where the overall market volume is very low, the trading volume of the STI ETF can hit around 50 lots. Generally, the trading volume is around a few hundred lots so unless you are thinking of buying or selling 100 lots, liquidity should not be an issue.
I took a quick look at the Singapore Index Fund. The management fee is small indeed at 0.65% but the management fee for the STI ETF is even smaller at 0.3% thus the STI ETF is slightly better. Perhaps you can consider investing in the STI ETF for any subsequent investments if you are now more comfortable with the issues that we have discussed. I hope it helps ! (:
Hi Kay,
Will the company who manage STI ETF go bust?
Hi Soon Yin,
It's very hard to say whether the company who manages STI ETF will go bust cos no one can be absolutely sure of what will happen in the future. I think the more important thing to know is what will happen to the funds attributed to unitholders if the STI ETF go bust.
Kay
Hi Kay,
Can you enlighten us on OCBC 5% subordinated note due 2011 that was supposed to be swapped for a 5.6% note due 2019, callable in 2014 with step-up interest.
I am interested in buying the note that due in 2019 but my remiser as well as the bank officers from OCBC are not able to provide any info on how I can get hold of the note.
Henry
Hi Henry,
Unfortunately, I am not well-versed in this area thus I'm afraid I will not be able to help you regarding this.
Hi Kay,
Need your advise. With min to trade , tec . 1k .Is it better to trade on ETF or Singapore Bond with banks ? which is better as in return ?Tks
Hi Belinda,
I'm not sure if I get what u mean. If you have around $1,000, it would be better to save up until you have a few thousand dollars before you buy any ETFs since the brokerage fees is likely to take up a significant portion of your capital. Otherwise, you can buy the DBS STI ETF 100 since 1 lot is only around a few hundred dollars.
If you can hold for at least a few years, the ETFs is more likely to post a better return than the Singapore Government Bonds.
Kay
Hi Kay,
You got me right. I was just thinking with min to trade which is better ? Thank for your advise.
You have excellent postings in your blog. Good work. Can I copy some of your article into sengkang.com forum to share on your posts?
Hi Walter,
It will be my pleasure. Feel free to post my articles on the forum. I will appreciate it if you can add links back to my site on the forum for the articles.
Kay
Hi Kay
I appreciate your fast response and kind gesture on my request. I will quote the source and link of the article. Thank you. :)
Hi Kay,
I stumbled upon your blog when I was searching the web. I must say, your site is very informative and well structured.
I wanted to ask, if I buy US ETF, will I be taxed on capital gains after my shares are sold?
Hi James,
Thanks for the compliment. Capital gains are not taxable if we buy US ETFs. However, do take note that the dividends are taxable at 30%. Another thing you may wish to take note that there is estate duty if I'm not wrong but i can't remember the exact detail so this is something that you may wish to find out.
Kay
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I would think that ETF is a good and safe way to buy a summary of a particular stock indice.
Instead of US ETF, i prefer to do stock investing on china ETF for e.g. luxor china.
ETF may be a good and safe way to invest if one is too lazy to monitor the stock. Personally, i still think that property investment is more solid approach
ETF is more stable but it is also implying that its gain will be high in general
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