Why STI ETF Is A BAD Investment?
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- Опубліковано 25 сер 2024
- Warren Buffett had always told investors to invest in index funds. For Singaporeans, the index funds would be the Straits Times Index, or STI ETF. There are many people recommending STI ETF, however I do not believe that it is a good investment. Here’s why.
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Underrated financial youtuber! This guy deserves more likes! For his jokes too
sidetrack i loled when u said u had no idea why u brought up sang nila utama
Your video is getting better and better and I am learning more and more each week. Keep it going 😀
Appreciate how you always talk about investments (seemingly confusing matters) in very simple terms. I'm sure ur UA-cam channel will continue to grow! Cheers Kelvin :)
Thanks!!
You can lower US dividend tax by investing in US through Ireland based ETFs. They pay only 15% tax on dividends.
Damn thanks so much for the info!
Nice video, just a small clarification does the long term STI return of 6% include the dividend yield as well. If not then the long term total return of STI is close to 10% isn't it(assuming 4% dividend yield). At 10% total return, the return levels look okay in SGD terms.
Please also do suggest which global ETFs are good to choose for Singapore investors. Thanks
I think despite of an investment being a good or bad one, we should not forget: "Do your OWN due diligence". Never rely on the work of others, coz at the end of the day, investment is a personal thing, it's a lonely road. You can either blame yourself, or pat yourself in the back. Thanks Kelvin, your videos are food for thought and allow myself to reflect on my portfolio every now and then :)
Appreciate it! Thanks kevins👍🙏
As an American, Singapore's currency is likely to gain value over the dollar because the new administration is printing a lot of money which devalues our currency so I hold a little bit of Singapore for currency hedge. That said, you should have exposure to both IMO.
Thank you Kelvin. Extra video per week now, then? Mondays and Fridays? Either or, thank you for your insightful videos.
One more thing. "Thanks Sky, Thanks Floor". 101% funny.
No promises haha, i try my best
Yes. I look forward to his video too. The content is meaningful and informative.
Agree with most of your points. For SG investors though, I’m curious how the STI total return including dividends vs SPY minus the 30% tax. Might close the gap slightly though I still think it won’t even be close. Just to make yourself feel better haha.
Not even close. But to be fair, this decade is US best decade, previously STI was outperforming SPY iirc.
It is important to note that GDP growth is not very well correlated with stock market returns. Especially in developing nations where the creation of private companies (generally very small) expands the gap between GDP growth and stock market growth.
Hi Kelvin, I still a newbie and just started learning, and Im looking at dollar cost averaging for the long term in S&P 500 ETFs (say 20 years). Would you go for a local based or US based ETF that tracks the S&P 500 index? Hope to hear your thoughts on that!
really enjoy your content and the jokes! keep it up and hope to see more videos from you!
Thanks!! Will be uploading every week :)
Kelvin, Thks for sharing. May I know which website you use to check each stock dividend history?
Hi, it's simplywalls: simplywall.st/stocks/sg/real-estate/sgx-m44u/mapletree-logistics-trust-shares#dividend
Very helpful, thanks.
thank you for the advice.
Thanks for the educational yet entertaining video! Just got a question, you mentioned in the video that dividend stocks wouldn't be affected if the market crashes, but wouldn't company tend to lower their dividend payout if their company underperforms during the market downtime?
Ya, they will be affected. But the drop wont be as bad as stock prices
Cheers on another great vid Kelvin! Just want to double check that the dividends from STI ETF (ES3) are completely tax-exempt. Reason being is that in the past, I've been declaring a small portion of it as an additional income in IRAS. From the Singapore Tax Voucher I receive semi-annually, there's this (d) "Other Income" which has a fine note stating that a unit holder, other than a qualifying investor, is required to declare in his tax return.. hmm.
Check this out, it says dividends received are non taxable. Unless u are a partner of the company or dividend paid by co-op www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Dividends/
nice video, really helps a lot, but one question here, which websites are u using ah, can recommend meh
U mean broker? I’m using ibkr
Keep up the humor, enjoying every minute of it. I'm ok with 4% return wo exchange risk, so it's good for me.
Hands down my favorite financial UA-camr. Thank you, Kelvin for sharing your incredible knowledge and extra thank you for your jokes. I die laughing everytime! ❤️
Thanks haha
Mc Laosai earn my subscribe and like. Keep up the humor.
Thanks haha
The problem with STI ETF is the amount of government linked companies are or owned by Singapore Government. Also, it is totally skewed by the banks.
Thanks sky thanks floor for your great sharing! 🌹
Wow! An extra video this week! Will this be regular?
No promises haha, i just try my best :)
@@KelvinLearnsInvesting awesome! Always looking forward to your videos
Good analysis. Thanks for sharing. Do you know whether STI ETF is the type holding physical shares of the component companies or using derivatives?
It should be the physical shares, if derivatives it will appear as another name in their holdings
Good video
Custodian requires you to change to the market currency. If you sell the stock, it will be keep in the currency account. If Forex are not good, you can still hold onto the currency. Anyway if you are an investor, you will seldom sell your stocks. Forex is not a big concern if the currency are not weak like ringgit.
Hi, nice video indeed! I want to invest my SRS funds which means only Singapore based stocks or EFTS .. can you suggest any? I am looking for green energy related funds if possible . Thank you very much in advance!
I'm unsure abt green energy. But u can try to search here secure.fundsupermart.com/fsm/funds/fund-selector
Set payment method to "srs available"
@@KelvinLearnsInvesting , thank you so much !.. 🙏
Dear Kelvin, STI ETF is not a bad investment. It depends on your risk appetite and your age profile.
I agree. STI is good for people who prefers a much more stable investment than crazy tesla
I like your humble opinion, kelvin gor gor..... ☺️
STI ETF 4% average is actually better 2.5% OA 🤗🤗
Very good independent analysis of the STI ETF with a witty humour to match. Love it.
Omg i LOLed at the mac lao sai 🤣
One thing i learnt from this channel is to watch funny cat videos during my free time! Jokes aside, great video by the way! :)
Excellent info. But better to pay 30% withholding tax with excellent growth rather than STI.
As singaporean, its not easy to access other indexes without paying too much fees for low capifal so sti etf is an attractive appeal
Actually low cost etfs like ishares and vanguard is easily accessible thru low cost brokerage like ibkr, tiger, moomoo.
@@KelvinLearnsInvesting i see. Thanks for clarifying.
When sti etf change it characteristics?
I watched your sg reit vid and found ascendas and maple tree logis good. which one do u recommend more and how long to hold? can I buy 1 day before their scheduled dividend days and get payed how often do they payout?
i like mapletree log more, best to hold both though. In theory u can buy before dividend date, but its a bad idea because stock price will rise before the date, then drop immediately after the date, so best to js buy & hold. I think mapletree pays 4 times a year, ascendas pays 2 times a year.
Hope u can do a review on SGX SPDR S&P 500 🙂 Your jokes r candid haha
Hi Kevin, learning from your videos on investing. I never invest before, do you suggest investing in STI ETF and what is the best platform to do this? Thanks!!!
U can invest in sti if u prefer stable stocks. Tiger broker is cheap broker
But I don't see any bad of STI if you can buy SPY too. Even currency risk takes up the tax portion, profit is more than STI still
Might only be for now, previously sti did outperformed spy
Buay Tahan your joke...getting better each time🤣
Can advise what platform you use to compare the ETF charts?
u mean tradingview.com?
Hi! Good evening shifu!
Edit: Hahah!! The lord of the rings part is dam funny
Shifu I have an interesting topic for you ... seeing that you are such a nice person... also can be thought of as being related to investment as it fosters better relations, which may lead to a more prosperous financial prospect ... because "guan xi" is impt in financials. The topic is:
How do you personally deal with negative/sour people who purposely try to tear you down or say something unpleasant to you just to get a rise (reaction) out of you for no reason you can think of.
Personally, I ignore. But your answer in a video may help a lot of your viewers.
Currently in 2021 what dividend stocks is good for purchasing?
Follow this guide to find :D
ua-cam.com/video/erWDgh_f9fA/v-deo.html
Are you saying the only reason to invest in STI is for the dividend stocks? > so might as well just buy the best ones instead of the index
I personally feel that way. Growth stocks in SG can't perform as well as US growth stocks. But SG dividend stocks are really good bcos its not taxed
Never touch Singapore stocks 😂
Which ETF is good for a newbie to start investing?
Check these out:
ua-cam.com/video/Bc0sPsp_n9o/v-deo.html
ua-cam.com/video/fnf7svYgwEo/v-deo.html
let's say my monthly expense is 500sgd, how much and how long will i need to invest in order to achieve financially freedom? how to calculate ah?
Check this out: ua-cam.com/video/fOLI5o8acCo/v-deo.html
Hi! What website do you use to check if dividends given out has been growing? @ 9:05
Ohh, it's this: simplywall.st/stocks/sg/real-estate/sgx-m44u/mapletree-logistics-trust-shares#dividend
The free version only allows you to check 10 stocks per month :(
Every $100, 30% is US Tax? So my return must be more than $130x to not lose money? How can I avoid/lower this ?
Yea, US tax 30% on dividends. You can lower by investing in ireland domiciled etfs which are listed in London stock exchange. They only tax 15% instead
Hi! So would it be better if we invest in S&P500 instead of STI ETF?
S&P500 has higher risk and reward, while STI gives more stability. So it depends which you prefer
@@KelvinLearnsInvesting Understood. Thank you!!!
Hi kelvin, do I need to take sgx elearning to invest etf?
When opening broker, they will ask if u have experience. Otherwise they will ask u to take e learning course first
I'll never order McSpicy in the same mindset again after this vid..
😂🤣
Likewise!
可以放华语字幕吗？
2:17 "watching finding nemo with your niece for the 10th time in the week" sounds toooo specific
Specific point is specific
Position trading using STI ETF in CPF is another way to add additional income.
What does this mean in simpler terms? @koolkat Austin
When foreigner buy dividend stocks in singapore, do i have to pay tax .
If you are working in singapore, you dont have to pay capital gains tax
Yes. Love it. Passive income is the key financial freedom.
hi, how long do you usually hold your ETFs for?
I'll hold as long as fundamentals doesn't change, or when i found a better investment opportunity.
I love ASCENDAS! thanks :)
I still don't understand why is there a mix of viet and English language in your CC
The auto translate thinks i'm talking vietnamese :o
It's quite ironic that the UA-camr who argues about lack of diversification as a con for investing in STI ETF, has an investment portfolio where the majority is in a SINGLE STOCK 🤣
Purpose of investing in etf is to diversify. Diversification or not is up to individual
Hi Kelvin, what equipment do you use to film and what editing software?
I use my one plus 3t phone, premiere pro
Good stuff
Thanks :D
Today not Monday leh😂.. But still first
#2021 #NewYearNewMe #NewYearMoreUploads
@@KelvinLearnsInvestingangpow lai lai😂
Huat ahhh
My investment strategy...invest in companies which Temasek holdings had a major stake in it e.g Capitaland. Also I follow Warren Buffett strategy "Be fearful when others are greedy and be greedy when others are fearful". When others are busy dumping stocks in Mar 2020, I'm busy "collecting" them, but only the good ones ^_^
Whats Temasek's annual return?
@@KimKim-hh7jf not sure. Temasek holds about 51% of capitaland and their dividend yield is about 4%.
Well said. 👏👏👏
I don't see any- much growth in SG stocks... That's why I feel investing in local companies is ONLY for dividends... Other than that, everything invests overseas have MUCH MUCH MUCH better returns than SG stocks... and yes, my name is given by u HAHAHAH.. Imma use it for good.
Lolol nice name
STI ETI moves like a turtle. 5% to 10% ROI is pathetic! Consider investing in the US stock market which will 2X, 3X or even 4X your money.
Buy sp500 is better
Or buy FAANG stock hold for long term and do nothing you already can earn until siao
What is FAANG ?
@@doraemxn1037 Facebook, Amazon, Apple, Netflix and Google
i was almost about to atart my STI ETF journey, until i saw this
I have about 20k in my sti etf. Thinking of selling those to buy tsla 🤨
but on the bright side, they do give good dividend yield at 4%, and now STI is recovered about 20% from pandemic.
Yup, their dividend is quite good tbh
Your satisfaction with steady dividends is the real reason why STI has not grown much over the decades despite singapore moving from third world to first. Singapore citizens are mostly offspring of farmers and coolies. Started poor, uneducated and very risk averse and rather superstitious.
The Pioneer Generation and the Merdeka Generation almost all wage earners. Hardly any risk takers and innovators. Plus civil service attract most of the best students.
And post-1965 generation got infatuated with USA-style materialism, consumerism and freedom political ideology because they came of age during the mid-80s. This generation mostly very arrogant and show-off, and like to blame govt.
Only the GenZ, those born after 2000, have risk taking and innovation drive to succeed. But they have bad role models if their parents are from post-1965 / Gen X, Gen Y.
yes it’s McLaoSai!
But we still like it :D
Buy Tesla, lemonade, bitcoin.
All... all in?? :D
TSLA FTW🚀🚀
Unlimited cash cheat code i died 🤣
The video title abit misleading