Comments on Moneytalk: Which ETFs on SGX are cash-based ?

Hi Jen, If you are trading, I suppose it does not...

2011-03-28T22:28:00.861+08:00

Hi Jen,

If you are trading, I suppose it does not make much of a difference. Perhaps it only means a counter with fluctuating prices. The risk is more applicable towards those who invest in ETFs.

The risk is that the counterparties of the ETFs fail to pay the difference for the ETF and the index that it is suppose to track. Current regulations limits the percentage of the assets of the ETF that is exposed to each counterparty. But when you have a systemic failure of the financial system as witnessed in the US financial crisis, no single financial institution is immune to the rundown.

Kay

Hi Kay, I chanced upon your posts on the ETFs as ...

2011-03-24T19:06:19.325+08:00

Hi Kay,

I chanced upon your posts on the ETFs as I am beginning to trade on ETFs.

Does it mean that swap-based ETFs are more vulnerable and exposed to more risk compared to the 5 cash-based ETFs?

Thks,
Jen

Hi, Before the split, the price of the STI ETF sh...

2009-11-21T22:24:50.652+08:00

Hi,

Before the split, the price of the STI ETF should be approximately 1/100 of the Straits Times Index. I believe the reason for the split was to increase the liquidity of the STI ETF and it was very illiquid in the past.

Kay

Hi Kay, Could you kindly help me understand why ST...

2009-11-21T18:14:42.784+08:00

Hi Kay,
Could you kindly help me understand why STI ETF can do a 10 for 1 stock split in Jan 2008? More specifically, how does it achieve such a high price before the split? Then, the STI was just under 3500, I thot the STI ETF value should be approx 1/1000 of STI; ie S$3.50 maybe. Many thanks Kay.

Hi meng, I'm currently not vested in any unit...

2009-11-17T20:55:38.778+08:00

Hi meng,

I'm currently not vested in any unit trusts thus I'm not able to answer this question of yours.

Kay

Hi Kay, any idea what is the cheapest way to buy ...

2009-11-17T00:47:52.493+08:00

Hi Kay,

any idea what is the cheapest way to buy unit trusts? any other cheaper alternative to fundsupermart?

thanks

meng

Hi Phyllis, I do not have an easy answer for this...

2009-11-12T22:03:17.883+08:00

Hi Phyllis,

I do not have an easy answer for this as you have pointed out the issue for unit trusts correctly. Swap-based ETFs carry counterparty risk while unit trusts have higher charges. Another method would be to purchase cash-based ETFs listed on the US market that tracks the China market but then again, there is the problem of estate duty and dividend are taxable at 30%. Thus this is something which you may have to consider.

Kay

Hi Kay, Your post on the cash-based ETF is what i ...

2009-11-11T08:15:09.241+08:00

Hi Kay,
Your post on the cash-based ETF is what i had always wanted to know. It is so informative.

So, if i want access to the china market and Lyxor China is swap-based. Does it mean that it is better to invest in unit trusts despite the higher charges ? What will you do? Thanks

Regards
Phyllis