Buyers who want to journey on the expansion of the Singapore inventory market now have extra choices to select from, as European asset supervisor Amundi has simply launched their fund. This makes Amundi the third participant to trace the Singapore’s benchmark Straits Instances Index (STI) to enter the area, and the primary unit-trust-based index fund monitoring the STI.
However for skilled traders, how does the most recent Amundi Singapore Straits Instances Index Fund evaluate to current choices? And does it make sense for us to take a position there as an alternative of accessing it immediately on the Singapore Alternate (SGX)?
That is the query I requested myself when it was introduced earlier this month that Singapore-based robo-advisor Endowus has partnered with asset supervisor Amundi to launch the Amundi Singapore Straits Instances Index Fund.
The way to spend money on the Straits Instances Index (STI)
The Straits Instances Index (STI) is made up of the 30 largest blue-chip firms listed in Singapore, and usually serves as a benchmark index for Singapore’s inventory market returns. It has traditionally supplied a good dividend yield than different regional bourses, with decrease volatility than world fairness benchmarks attributable to Singapore’s sturdy banking, actual property, telecommunications, and industrial sectors.
Previous to this, if you happen to have been an investor who wished to get publicity to the efficiency of the STI, you may purchase both one of many two Alternate Traded Funds (ETFs) right here – the SPDR STI ETF or the NikkoAM Singapore STI ETF:
- The SPDR Straits Instances Index ETF was listed in 2002. Between January 2020 to July 2025, its property below administration elevated by 131% to $1.92 billion.
- The Nikko AM Singapore STI ETF was listed in 2009. Between Jan 1, 2020, and July 14, 2025, its property below administration elevated by 195% to $973 million.
Buyers who seemed primarily at AUM measurement are likely to favour the SPDR Straits Instances Index ETF, whereas traders preferring a extra native fund supervisor normally gravitated in the direction of the Nikko AM Singapore STI ETF. In my case, I selected the latter.
So, is the most recent Amundi Singapore Straits Instances Index Fund price contemplating?
What to know earlier than you spend money on the Amundi Singapore Straits Instances Index Fund
EndowUs states that the Amundi Singapore STI Fund has the bottom whole expense ratio (TER) when in comparison with the opposite STI ETFs within the markets proper now.
Take pleasure in low-cost entry to diversification with the Amundi Singapore Straits Instances Fund providing the bottom whole expense ratio amongst friends, with a administration payment of simply 0.15% p.a., and no transaction or gross sales prices. Out there for Money and SRS investments.
– EndowUs
That is true, however there are some things you need to observe.
Firstly, whereas the administration payment of 0.15% p.a. is certainly the bottom amongst different STI funds, traders utilizing the EndowUs platform should pay an extra recurring EndowUs payment starting from 0.15% – 0.6% yearly.
Therefore, if value is your important concern, then shopping for one of many 2 STI ETFs on SGX immediately could be the lowest-cost possibility for you. After I first began writing about STI ETFs on this weblog, each choices charged an analogous expense ratio of 0.30% p.a. then, however this has since dropped additional.
State Road has lowered their charges to 0.28% p.a. now, whereas NikkoAM’s expense ratio in the identical audit interval got here in at a decrease 0.26% p.a.
Subsequent, you need to observe that the Amundi STI fund is not an ETF.
What Amundi is providing is a unit belief that’s solely accessible through robo-advisory platform EndowUs for now, which suggests the fund just isn’t listed on the SGX. Because of this what you’re shopping for is a product that you just won’t be able to commerce it on the open SGX market, nor are you able to personal it in your CDP to purchase/promote utilizing some other brokerage platforms. Your whole transactions should be made via EndowUs solely.
Who would purchase the Amundi Singapore STI Fund, then?
There’ll all the time be completely different funding merchandise to cater to the completely different wants of varied traders. And in Singapore, the market is definitely large enough for a 3rd participant.
Present EndowUs clients will probably discover the Amundi Singapore STI fund to be a gorgeous possibility so as to add extra Singapore publicity into their current portfolios on the platform since they’re already paying for his or her annual EndowUs charges anyway.
Nonetheless, I don’t assume it is sensible for a brand new buyer to open an EndowUs account simply to spend money on the STI through this Amundi unit belief.
As for self-directed traders, shopping for immediately through one of many 2 STI ETFs listed on the SGX nonetheless makes extra sense when it comes to value, possession and management. I discover it arduous to think about this group of traders switching over to the most recent participant.
What do you assume?
With love,
Daybreak
