17, September 2015: The Straits Times Index Exchange Traded Fund (STI ETF) is widely used by investors who trade on the Singapore Stock Exchange (SGX). Current information about STI is spread over many different locations, and the respected Singapore finance education firm BigFatPurse.com provides a time-saving, educational service by presenting key STI facts and developments all in one place.
The majority of active investors understands that a fund or unit trust consists of pooled money with a fund manager who decides where to allocate the capital and make returns on behalf of the investor. An ETF works the same way with two points of difference. The first difference: The ETF is traded on a stock exchange so it can be bought and sold just like a stock.
The second difference: An ETF utilizes passive management and a unit trust requires active management. An ETF tracks a particular index and the fund manager does not make any individual decisions about which stock or assets in which to invest. The ETF fund manager only needs to replicate the stocks determined by the index and follow their performance closely.
The Straits Times Index was introduced in 1998 and was constructed jointly by Singapore Press Holdings, Singapore Stock Exchange and a professor from National University Singapore. It is an index of the top 30 companies listed by SGX and is the indicator used most widely to represent the general Singapore stock market.
Investors who check BigFatPurse.com will find thorough discussions of topics such as these: What is the STI? What is an ETF? Investing in the STI ETF, STI ETF dividends, how to buy ETI ETF, using CPF to invest in ETI ETF, monthly investment plans for STI ETF, and dollar cost averaging or lump sum investing.
To find out more about STI ETF, visit the link here. It is the most comprehensive article on the Straits Times Index Exchange Traded Fund. The website also contains specific sections on trading for income, investing in stocks, courses and resources.