SPDR STI vs Nikko AM STI

sgx:es3
sgx:g3b

#1

For indices tracking STI, we have offerings from SPDR and Nikko AM. If you are looking to buy above board size lot of 1000, will it be always preferable to go for SPDR due to lower expense ration? Or am I over-analysising the minuscule differences?

Also, I know that they are both physical ETF. Does anyone know if they use some derivatives? If so, how much is the % of derivative used?

Thank for reading and thank in advance for replying


#2

SPDR, Nikko AM has a higher management fee, less liquid and larger tracking error.


#3

I prefer SPDR as they have a longer track record


#4

I previously also thought about it and chose ES3. Cannot remember exactly why but I think is the following reasons.

  1. ES3 has lower expense ratio 0.3% vs 0.35%.
  2. Trading volume of ES3 is way higher than G3B. I believe that would lead to smaller spread although I never compared them.
  3. For whatever reason, ES3 dividend yield is higher than G3B (at least based on SGXcafe unless I am doing something wrong). Or is it because G3B performs share buyback instead of distributing all dividends?

Anyway, if I have to choose again, I will choose ES3 again based on above reasons :slight_smile:


#5

But POSB Invest chooses Nikko AM STI … I would have preferred SPDR STI


#6

what does spdr mean? funds?


#7

It is because of this -> https://www.spdrs.com.sg/etf/fund/spdr-straits-times-index-etf-ES3.html


#8

I started my ETF journey with POSB Blue Chip saver (G3B), decided to do it my own and jumped ship to ES3 as well for the above reasons.


#9

so it is simply sti etf?


#10

@jpeg Yes :slight_smile: