Traders 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 Occasions Index (STI) to enter the house, and the primary unit-trust-based index fund monitoring the STI.
However for knowledgeable traders, how does the latest Amundi Singapore Straits Occasions Index Fund examine to current choices? And does it make sense for us to speculate there as an alternative of accessing it straight on the Singapore Change (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 Occasions Index Fund.
Learn how to spend money on the Straits Occasions Index (STI)
The Straits Occasions 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 a good dividend yield than different regional bourses, with decrease volatility than world fairness benchmarks on account of Singapore’s sturdy banking, actual property, telecommunications, and industrial sectors.
Previous to this, for those who have been an investor who wished to get publicity to the efficiency of the STI, you would purchase both one of many two Change Traded Funds (ETFs) right here – the SPDR STI ETF or the NikkoAM Singapore STI ETF:
- The SPDR Straits Occasions Index ETF was listed in 2002. Between January 2020 to July 2025, its belongings underneath 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 underneath administration elevated by 195% to $973 million.
Traders who regarded primarily at AUM dimension are inclined to favour the SPDR Straits Occasions Index ETF, whereas traders preferring a extra native fund supervisor normally gravitated in direction of the Nikko AM Singapore STI ETF. In my case, I selected the latter.
So, is the latest Amundi Singapore Straits Occasions Index Fund value contemplating?
What to know earlier than you spend money on the Amundi Singapore Straits Occasions 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 Occasions Fund providing the bottom whole expense ratio amongst friends, with a administration price of simply 0.15% p.a., and no transaction or gross sales fees. Accessible for Money and SRS investments.
– EndowUs
That is true, however there are some things you must word.
Firstly, whereas the administration price of 0.15% p.a. is certainly the bottom amongst different STI funds, traders utilizing the EndowUs platform should pay a further recurring EndowUs price starting from 0.15% – 0.6% yearly.
Therefore, if price is your major concern, then shopping for one of many 2 STI ETFs on SGX straight 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 diminished 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 must word 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 implies the fund will not be listed on the SGX. Which means that 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 every other brokerage platforms. Your entire transactions should be made by way of EndowUs solely.
Who would purchase the Amundi Singapore STI Fund, then?
There’ll at all times 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 prospects will seemingly discover the Amundi Singapore STI fund to be a lovely 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 suppose 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 straight through one of many 2 STI ETFs listed on the SGX nonetheless makes extra sense by way of price, possession and management. I discover it laborious to think about this group of traders switching over to the latest participant.
What do you suppose?
With love,
Daybreak
