Nikko AM Singapore STI ETF

G3B.SI : Singapore Exchange



Share Price in SGD. As of 05:03:27 SGT

#1 - Diversified Singapore blue-chip names 

The Straits Times Index comprises of the 30 largest companies listed companies on the Singapore Exchange by market capitalisation. 

This would include well-established household names that many Singaporean would be familiar with, such as DBS, UOB, Singtel and Capitaland. 

The index offers diversification across a range of sectors such as banks, real estate, industrials and telcos.

The index has provided a dividend yield of 3% to 4% per annum historically (February 2014 to February 2019).

STI breakdown of industries.png
Source: Bloomberg, FTSE, as of 28 February 2019

#2 - Exposure to Asia's growth

The STI offers exposures to the stable longer term growth potential of Singapore, as well as the fast growing Asian region.

It is estimated that about half of the revenue of companies in the STI are generated outside of Singapore. For example, close to 75% of Singtel's operating profits in FY18 were generated in countries outside Singapore such as Australia, Indonesia and India.  

Also, a few companies in the STI are foreign based companies with their core business outside Singapore. For example, Thai Beverage is a large beverage producer which generates the bulk of its revenue in Thailand. 

STI revenue breakdown

#3 - Strong corporate governance 

Singapore has been ranked consistently amongst Asian countries for its strong corporate governance standards. 

This would provide some assurance to investors of Singapore blue chip stocks that these companies have a robust governance framework and shareholder protection laws.