A lot of other blogs talks about the virtues of the STI ETF index ( ES3 ).   For most beginners, buying the entire index makes sense. As ETFs generally have low management fees, holding the ETF for a long term yields solid dividends and you get to make a general bet on the Singapore economy.   But what if you are an intermediate investor and want better performance on the STI index?   One way is to understand that the STI index is a capitalization-weighted index. This means that the position of an individual stock when you buy the index is proportional to its market capitalization which is its (stock price x number of stocks). Anyone who buys the index is in essence always buying a larger proportion of stocks which has done well previously as its market capitalization has gone up before.   One possible winning strategy is to buy ......