I received SPDR STI ETF Annual Report in my mail. One thing that caught my attention was the portfolio turnover ratio. The portfolio turnover ratio is indicative of the change in activity inside a unit trust, or most investments managed as a fund. SPDR STI ETF have the following expense ratio and portfolio turnover profile: Expense Ratio

• 2015: 0.30%
• 2014: 0.30%

Portfolio Turnover Ratio

• 2015: 0.94%
• 2014: 2.03%

I grabbed Nikko STI ETF’s 2013 and 2014 data: Expense Ratio

• 2014: 0.38%
• 2013: 0.42%

Portfolio Turnover Ratio

• 2014: 8.95%
• 2013: 6.93%

Not always a fair comparison, but in the same year 2014, SPDR have a much lower portfolio turnover. Expense Ratio is an important consideration because over the long run in passive index investing, cost matters. However, Portfolio turnover is a cost as well and one that should not be taken lightly. Nikko ......