Traders who want to experience 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 speculate there as an alternative of accessing it straight on the Singapore Trade (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.
Find out how 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 provided an honest dividend yield than different regional bourses, with decrease volatility than world fairness benchmarks on account of Singapore’s strong banking, actual property, telecommunications, and industrial sectors.
Previous to this, should you have been an investor who needed to get publicity to the efficiency of the STI, you could possibly purchase both one of many two Trade 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 belongings 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 belongings below administration elevated by 195% to $973 million.
Traders who appeared primarily at AUM measurement are inclined to favour the SPDR Straits Instances Index ETF, whereas traders preferring a extra native fund supervisor often gravitated in 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 value 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.
Get pleasure from low-cost entry to diversification with the Amundi Singapore Straits Instances Fund providing the bottom whole expense ratio amongst friends, with a administration charge of simply 0.15% p.a., and no transaction or gross sales expenses. Out there for Money and SRS investments.
– EndowUs
That is true, however there are some things it’s best to observe.
Firstly, whereas the administration charge of 0.15% p.a. is certainly the bottom amongst different STI funds, traders utilizing the EndowUs platform must pay an extra recurring EndowUs charge starting from 0.15% – 0.6% yearly.
Therefore, if value is your essential concern, then shopping for one of many 2 STI ETFs on SGX straight can 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, it’s best to observe that the Amundi STI fund is not an ETF.
What Amundi is providing is a unit belief that’s solely out there through robo-advisory platform EndowUs for now, which suggests the fund is just not listed on the SGX. Which means what you’re shopping for is a product that you simply 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 another brokerage platforms. All your transactions must be made by way of 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 assorted traders. And in Singapore, the market is definitely large enough for a 3rd participant.
Current EndowUs clients will doubtless 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 smart 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 straight 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
