- He buys 2,891 shares of NikkoAM STI ETF at $3.46 each on 9 April, with a total capital of SGD 10,002.86.
- He then sells his shares at $4.12 on 8 July, after having collected $0.0917 in dividends per share in July.
- The total cash back in his pocket? $11,910.92 + $265.10 in dividends = $12,176.
- Result = $2,173.16 or 21.7% profit.
Here’s a fun fact: Investors who picked the Singapore markets during the April crash over the S&P 500 would have made higher returns during this same period of time.
You might be wondering, how is that possible? Weren’t the STI Index gains of 18% dwarfed by the S&P 500’s 25% rise?
But it’s true, especially if you’re a Singaporean investor. That’s because we earn in USD but spend in SGD for our living costs here. And that means forex differences matter.
Here’s the math:
Investor 1: Buys into Singapore
Imagine Investor 1, a Singaporean who decides to buy the NikkoAM STI ETF (G3B) during April’s ultimate low.
