Blue chips, which often refer to stocks that make up the Straits Times Index (SGX:^STI), are a favourite among Singapore investors. The SPDR STI ETF (SGX: ES3), an exchange traded fund which mimics the movement of the STI, represents a quick way to participate in some of the biggest companies in Singapore without committing too much capital. The other benefits of an ETF include lower fees and instant diversification. In simple terms, if you buy the SPDR STI ETF, you will own a small piece of all 30 listed companies inside, which are worth S$291 billion in net market capitalisation as at the end of August 2021. However, before you consider investing in an index-tracking fund, there are a few key things you need to know about the index (figures are as of 31 August 2021, unless otherwise stated):

1. The largest company in the STI is DBS Group Holdings Ltd (SGX: D05) with a net market cap of S$53.8 billion.

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