Martin Lee @ Sg
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DBS STI ETF

DBS Asset Management (DBSAM) will be launching the DBS Singapore STI ETF on 25th February 2009. This will be the second STI ETF listed on SGX, the first being StreetTRACKs STI ETF.

The ETF is suitable for investors who would like a passively managed and low-cost fund that tracks the STI index. The initial offer period of the DBS STI ETF will be from 12 to 18 February. You will be able to apply for them via DBS or POSB ATM machines. They will be teaded in lots of 100 units.

With the launch of this ETF, there will be about 25 ETFs listed on SGX. The rest of the ETFs can be found here:

Singapore listed ETFs

As DBSAM has indicated that this will be the first of many ETFs that will be created by them, we can look forward to the growth of the ETFs market in Singapore and more choices for Singaporean investors.

Prospectus can be found here:

DBS STI ETF Prospectus

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14 comments
James says 9 years ago

Anybody knows the ticker for Inverse ETF for STI index?

Reply
Iqtidar says 10 years ago

My company prohibits trading in Oil, Gas and Energy futures. Does the STI ETF trade in such ?

Reply
    lioninvestor says 10 years ago

    Hi Iqtidar,

    The component stocks of STI are shown here:

    http://sg.finance.yahoo.com/q/cp?s=^STI

    Not too sure how your restriction works but a few of these companies might have oil futures for hedging.

    Reply
VSL says 10 years ago

LionInvestor,

I tried buying the DBS STI ETF 100 at 3 different POSB/DBS ATMs during the 2nd last and last day of the IPO. All of them rejected me saying:-

“This ATM does not issue receipts nor STI ETF shares”.

There is no news about the outcome of this IPO in the media nor on DBSAM’s website. I find this strange.

Do you know what happenned? Was the IPO closed early due to over-subscription? Was the computer system jammed due to overload traffic? Tks.

Reply
    lioninvestor says 10 years ago

    Hi VSL,

    I don’t think it was closed early as this is an open ended application. They will allocate to you as long as you apply.

    Not too sure why your application didn’t succeed but as it turns out, this might be better for you. STI has dropped since 18th and if the price doesn’t go up, you might be able to buy it at a lower price once it starts trading.

    Reply
VSL says 10 years ago

Same question here. What are the fundamental differences between the new DBS STI ETF 100 and the earlier STI ETF (by streetTRACKS)? Does streetTRACKS STI ETF use a different basket of underlying securities with different weightages compared to DBS STI ETF 100? The smaller board lot size and slightly cheaper mgmt fees of DBS STI ETF 100 does not distinguish this product sufficiently from its earlier “competitor”.

Assume I plan to buy STI ETFs. Which of the two products should I put my money on? Or should I split my investment both ways? Tks.

Reply
    lioninvestor says 10 years ago

    The basket should be the same since they are both based on STI. These are 2 similar products, so there won’t be major differences.

    StreetTRACKS has the advantage of being CPF approved. In fact, it is not subject to the 35% stocks limit cap for OA. Perhaps DBS STI ETF will also get CPF approved in the future.

    Knowing that more and more people are investing in ETFs, DBSAM is trying to get a slice of the pie. For now, it appears the fees are slightly lower but that might vary from year to year. I don’t like the spread though – quoted to 2 decimal places.

    All this competition is good for us consumers. I am looking forward to more ETF; I understand there will even be inverse ETFs.

    Reply
streettrack says 10 years ago

STI ETF (State Street) has been around since 2002. why is DBS copying?

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Collin says 10 years ago

If its to be listed on exchange, there shouldn’t be any management/annual fees right?

Also, what will be the price if we subscribe during the initial offer period?

Thanks.

Reply
    lioninvestor says 10 years ago

    Hi Collin,

    There’s a fee to manage the ETF. ie buying/selling securities from the funds to match the STI index.

    The initial price will be based on 1/1000 of the closing price of STI on the last day of the initial offer period (rounded to 2 decimal places).

    Reply
      SWN says 10 years ago

      Hi Lioninvestor,

      Does the current STI ETF use the same formula for calculating the price? If so, it would appear that DBS STI ETF sounds cheaper at 1.70 (assuming STI is at 1700 level).

      Reply
Rhin says 10 years ago

Hmmm… no mention of the annual charges. Wonder if it would be comparable to Vanguard’s low charges.

Reply
    lioninvestor says 10 years ago

    Hi Rhin, I added a link to the prospectus.

    Annual management fee 0.2% (max 0.5%)
    Trustee fee 0.08% (min 48k, max 0.15%)

    Reply
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