STI Serves for Tracking the Performance of Listed Companies in Singapore Exchange
The Strait Time Index is used as a market barometer in SGX market for the market capitalization weighted index by tracking the performance of top 30 listed companies on Singapore exchange.
The Strait Time Index changes over time in its 30 STI index components & in this manner, STI adapts new businesses. The index helps to represent the largest active stocks on the Singapore stock exchange. SGX consists of two ETFs that monitor Strait Time Index through investment in weighed constituents, which are ‘SPDR Straits Times Index’ ETF and ‘Nikko AM Singapore STI’ ETF that trades in the lot sizes of 100 units.
SPDR Strait Time Index ETF VS Nikko AM Singapore STI ETF:
The SPDR Strait Time Index ETF generates returns that closely correspond to the performance of Strait Time Index. The fund is invested in 30 STI index component stocks which vary in percentage of the total net asset.
The investment objective of Nikko AM Singapore STI ETF is to generate good returns & reproduce it, in the stock market. These ETFs are passively controlled by ETF managers; therefore ETFs have particular charges which are less than the actively managed investment funds.
Any retail investor can trade at free of cost through Nikko AM Singapore STI ETF without any pre-conditions for eligibility, whereas to trade in SPDR STI ETF, your assessment will be done to be eligible to trade in Specified Investment Product (SIP).
Index Diversity of Stocks:
The 30 stocks in STI Singapore diversified in a manner that it represents 5 varying sectors and 19 different industries which are based on the Global Industry Classification Standard (GICS).