If you’ve just started working, and you’re looking to kick-start your investment journey, you may have already heard of the Straits Times Index (STI) ETF. It’s an appealing proposition for the beginner investor: just park some money aside every month, and passively wait for the magic of compound interest to build your nest egg over time.
However, it may not be as simple as that. Before you start investing in the STI, here’s what you need to know about it.
What is the Straits Times Index ETF?
An Exchange Traded Fund (ETF) is an investment fund that pools investors’ money to buy a group of stocks, bonds or other investments. ETFs are typically passively managed to track an index. This means that the fund manager of an ETF will replicate an index, rather than selecting individual stocks or assets to buy or sell.
A stock index is a number that ......