To The Moon

🌟🌟🌟When I first started investing and did not know which Singapore stocks to buy, I came across STI ETF $STI ETF(ES3.SI)$   This is Singapore's oldest ETF established since 11 April 2002 and the largest with Assets Under Management of SGD 1.586 billion.

STI ETF represents 30 of Singapore Best Blue Chip Stocks in just 1 trade.  The Top 10 holdings include the 3 Singapore Big Banks DBS, OCBC and UOB. 

STI ETF also includes Singtel, Capitaland Integrated Commercial Trust, Jardine Matheson Holdings, Capitaland Ascendas REIT, Singapore Exchange and Singapore Airlines. 

The 3 Singapore banks take up 50% weightage of the STI ETF holdings alone.   So investing in STI ETF is almost like investing in these 3 banks but for a much lower cost.  All 3 banks share prices have been on a tear this year.  $DBS Group Holdings(D05.SI)$  is up 34.5% year todate while $ocbc bank(O39.SI)$  is up 25% year todate followed by $UOB(U11.SI)$  which is up 21%.

$Singtel(Z74.SI)$  has done well too as it has jumped 31% year todate.  Another outstanding performer is Singapore Exchange which is up 19.3%.

The main catalyst I believe is the cutting of interest rates by the Feds.   The Singapore economy is also doing well.  This can be attributed to a stable government with prudent fiscal management, diverse industries as well as a skilled workforce.  The Fintech sector in Singapore has been experiencing exponential growth, making it a hotbed for job opportunities.  Fintech is a blend of finance and technology which focuses on delivering financial services through innovative solutions.

As a result the STI ETF has done well too.  It is currently up 15.5% year todate and in 2023, it has risen 16.9%.  In fact the Straits Times Index has hit its highest level since 2007 when it reached 3,633.18 points on 20 September 2024.  This is a 17 year high! 

The Feds has just started its interest rate cutting cycle and there is more to come.  With lower interest rates in the offing, I believe Singapore stocks especially the SReits will do well in the future.  Interest rates with the local banks have been falling recently and so did the Singapore Treasury Bills. 

The STI ETF pays dividends twice a year.  The current dividend yield is 4.73% which is much better than putting money into the savings accounts and Treasury Bills.  On top of that STI ETF has capital growth too. 

I have invested in STI ETF 4 years ago and have been dollar cost averaging into it.  This is just about the cheapest way to invest in Singapore stocks.  At the last closing price of SGD 3.61 compared to DBS's price of SGD 38.66, the STI ETF offers phenomenal value for money to invest in the future of Singapore. 

Today is the last day of Tiger Brokers' National Day promotion where there is Zero commission fees for all Singapore stocks and ETFs.  Plus there is an exciting chance to win awesome prizes such as a Staycation at Singapore 5 star hotel, The Fullerton.  

The STI  ETF is my tactical bet on the future of Singapore and encompasses the best Singapore companies in just 1 ETF.  What a powerful ETF it is!

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