In recent years, investors have become more aware of investing in low-cost passive Exchange Traded Funds that can be bought and sold like stocks.
The upside to these ETFs is they tend to have low management fees.
In the case of the Straits Times Index (STI) ETF which gives you exposure to the Singapore Market, they both have management fees of just 0.30%.
However I don’t think it’s a great investment and here’s why.
Singapore Market and Hence STI ETF is Not GreatThe STI ETF tracks the Singapore stock market which has been in doldrums for the last decade.
To give you an idea, when I started investing in 2010, the STI was hovering around 3,200… more than 10 years later it’s still hovering at 3,200.
To give you some perspective:
US Market: +16.5% per annum
Hong Kong Market: +9.5% per annum
Singapore Market: +5.3% per annum
