I have owned the STI ETF at the high point of 3.46 and watch it get all the way down to 3.09. Those that are dollar cost averaging should be happy about this.
However, I can’t help to notice that there really isn’t much difference in the value of the holdings in the portfolio.
Six months in and prices are still almost at the same place. You don’t really see any of your Kingsmen Creatives, Boustead or ARA that corrected more that you can opportunistically grab.
I wrote a post some time ago comparing the 3 banks and STI ETF returns.STI ETF does better.
Since the 3 banks ends up making up a large part of the STI index together with Singtel, its not surprising that this drawdown is much more due to the banks than anything else.
The uncles will be happy that they can buy these stalwarts at a lower price.
But my thoughts are, why not just buy the STI ETF instead? Seems to me the returns you get even after dividends are the same if not lower for the banks, investing in the STI ETF is an opportunity should the SATS, Keppel become power houses of Singapore.
Patience. Cash is also a position. Cash is also a call option for opportunities.
When times its hard to find value, read up more on different businesses to sharpen your business prospecting knowledge.
To get started with dividend investing, start by bookmarking my Dividend Stock Tracker which shows the prevailing yields of blue chip dividend stocks, utilities, REITs updated nightly.
Make use of the free Stock Portfolio Tracker to track your dividend stock by transactions to show your total returns.
For my best articles on investing, growing money check out the resources section.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- The Dangers of Income Planning with a Fixed Inflation Rate (such as 3% p.a.) - September 25, 2023
- New 6-Month Singapore T-Bill Yield in Late-September 2023 Should Stick to 3.75% (for the Singaporean Savers) - September 21, 2023
- A Concentrated, High-Quality Fixed Income Financial Independence Income Strategy Has Enough Uncertainty - September 20, 2023
so1trg
Thursday 30th of January 2014
I see value in Vard.
Kyith
Thursday 30th of January 2014
Whoa not really an expert in that. Order book is not my forte