The options for Singaporeans to form a portfolio that is

  • diversified
  • low cost or cost effective
  • easy to managed long term
  • fundamentally sound
  • passively managed as opposed to active management

is difficult to carry out.

Unit Trusts and Exchange Traded Funds are standard ways to form that.

The problem with Unit Trust is that sales charge comes up to at least 1%, and their expense ratio at the lowest for passively managed is 0.95%, which is rather high. We are talking about the Infinity Global Stock Index Fund. You can read my write up over here.

There is a Global ETF listed on the SGX that satisfy for the above requirement. This is the MSCI WORLD Index UCITS ETF issued by Deutsche Wealth Management (Factsheet here). The expense ratio is half of the unit trust at 0.45%, there is no death or inheritance tax issue as opposed …