Insights of STI ETF 100

Ok, one of my two winning counters currently is the STI ETF 100, as mention before, it is like a pure equities unit trust but the difference is that it is listed on the stock exhanges where we can get access to real time prices and trade throughout the day. (Note: Unit trust only trades once a day). Like unit trust, it gives investors great diversification.

Components of the ETF:


The ETF aim to tracks the STI index with these 50 companies. Thus, with this ETF, you get to have some holdings in each of the 50 companies from the table. If you observe carefully, you may notice that most of the companies are blue chips and their stock prices are very expensive on the exhanges. Thus with a small capital, you do not have a luxury to own them.

The ETFs has provided investor an alternative to own those stocks as it require a smaller capital. However, it disadvantages is that with diversification, it offer a less attractive capital gain then each of the individual stocks.

Finally, I feel that the ETF is good for beginners are the prices are more stable than each of the individual stocks.