A Low-cost Way to Participate in Singapore’s Long-term Growth Story
Tracking the performance of the Straits Times Index, the market barometer for Singapore, the SPDR Straits Times Index ETF offers investors the opportunity to gain diversified exposure to the leading companies traded on the Singapore Exchange (SGX) and participate in Singapore’s long term growth potential in a single transaction, at relatively low cost.
With a history dating back to 1966, the Straits Times Index tracks the performance of the top 30 eligible companies listed on the SGX, making it the core, strategic building block, especially for Singapore-based investors.
Participate in the growth story of Singapore and beyond
The index constituents comprises 30 largest and most liquid locally-listed companies with substantial proportion of revenue coming from Singapore.
Invest in many household names4
The index’s top holdings include well-known bellwether Singapore companies including the “Big Three” Singaporean banks (DBS Group, OCBC and UOB), SingTel, Singapore Airlines, CapitaLand, City Development as well as the Asia-Pacific focused conglomerate, Jardine Matheson and many more.
Many stocks in the Straits Times Index have been paying consistent dividends throughout the past years.
Using SPDR Straits Times Index ETF as Core in a Core-Satellite Strategy
A core-satellite strategy seeks the broad market return as the “core” portion of a portfolio, and seeks additional diversification and returns in a “satellite” strategy which adds non-core market exposures.
Broad-based ETFs, such as SPDR Straits Times Index ETF, can be used as the core of an investment strategy. Sector, commodity-based, or other ETFs can be used to add a cost effective and efficient satellite portfolio to complement the “core” broad market portfolio exposures.
Such a strategy has the additional benefit of blending the general market risk of the core portfolio with the potentially riskier or more concentrated satellite portfolio exposures. This helps diversify risk as investors seek other forms of return beyond the broad market.
How to Invest
Directly through your securities account
The SPDR Straits Times Index ETF is flexible and easy to trade. Investors can buy and sell them like shares during Singapore trading hours, typically through a stock broker or a bank.
Through regular saver plan
For those who do not wish to risk timing the market, you may consider investing regularly (usually monthly) through a regular saver plan if your bank or broker offers such an option.
Through CPF Investment Scheme
The SPDR Straits Times Index ETF is an eligible investment under the CPF Investment Scheme, thus you have an option to invest in the Fund using your CPF savings, which may potentially help enhance your retirement nest egg.
Through Supplementary Retirement Scheme
In addition, you can invest in the SPDR Straits Times Index ETF through the Supplementary Retirement Scheme (SRS). It is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings.
4Source: State Street Global Advisors, as of 31 May 2020. Index’s top holdings shown are as of the date indicated above, are subject to change and should not be relied upon as current thereafter. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future.
This document may not be reproduced, distributed or transmitted to any person without express prior permission and may not be distributed and published in jurisdictions in which such distribution and publication is not permitted.
The prospectus in respect of the offer of the units (the "Units") in the SPDR® Straits Times Index ETF (the "Fund") is available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSGA", Company Registration number: 200002719D, regulated by the Monetary Authority of Singapore). Investors should read the prospectus before deciding whether to acquire Units in the Fund. The value of Units and the income accuring to such Units may fall as well as rise. Units in the Fund are not obligations of, deposits in, or guaranteed by, SSGA or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Past performance figures are not necessarily indicative of future performance of the Fund. Investors may wish to seek advice from a financial adviser before making a commitment to purchase the Units. In the event that Investors chooses not to seek advice from a financial adviser, he should consider whether the product in question is suitable for him.
Investors have no right to request SSGA to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
The Fund is not in any way sponsored, endorsed, sold or promoted by SPH Data Services Pte
Ltd or Singapore Press Holdings Ltd (collectively “SPH”) or FTSE International Limited (“FTSE”). SPH and FTSE bear no liability in connection with the administration, marketing or trading of the Fund. No warranties, representations or guarantees of any kind are made in relation to the Straits Times Index (“Index”) or the Fund by FTSE or SPH. All intellectual property rights in the Index vest with SPH.
Diversification does not ensure a profit or guarantee against loss.
This advertisment or publication has not been reviewed by the Monetary Authority of Singapore.
Singapore: State Street Global Advisors Singapore Limited, 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501.
All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
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This advertisement or publication has not been reviewed by the Monetary Authority of Singapore