The Straits Times Index (“STI”) have recently hit new highs as compared to the last few years. Investors who are keen to gain exposure to the STI can look to do so through SPDR Straits Times Index ETF (SGX: ES3) and Nikko AM Singapore STI ETF (SGX: G3B). These 2 ETFs are relatively similar in terms of holdings and operational costs, which you will be able to find the breakdown in the article.
There will not be a frequent update on the STI components given that they are relatively unchanged throughout the year. Even if there are changes to the STI components, it will likely only affect the smaller components on the list who are being replaced by more favorable ones. In this article, you will be able to find the table of breakdown further below of the top 10 STI components, which weigh a total of 76.31% of STI.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Photo source: https://drwealth.com/best-and-worst-singapore-stocks-of-2023/
Operating Costs
The SPDR Straits Times Index ETF (SGX: ES3) has a total of approximately 0.615% p.a. of expenses, where breakdown as below based on their website and prospectus:
- Management Fee: 0.300% p.a.
- Trustee Fee: 0.035% p.a.
- Expense Ratio: 0.280% p.a.
Website: SPDR® Straits Times Index ETF
The Nikko AM Singapore STI ETF (SGX: G3B) has a total of approximately 0.535% p.a. of expenses, where breakdown as below based on their website:
- Management Fee: 0.200% p.a.
- Trustee Fee: 0.045% p.a.
- Expense Ratio: 0.290% p.a.
Website: Nikko AM Singapore STI ETF
When comparing both, the difference in operating costs is approximately 0.080% p.a. which is negligible.
Holdings and Dividend Contribution
Investors who are holding on to the STI ETFs will be able to receive a dividend yield of approximately 3.96% from the top 10 holdings based on their dividend payout for the calendar year 2024. This is based on their individual dividend yields proportionate to their weighting in the ETF. Given that the 2 ETFs are very similar, I have extracted the holdings of Nikko AM Singapore STI ETF (SGX: G3B) as of 21 November 2024. Do note that the operating costs of the respective ETFs will lower the final dividend payout. However, there are another 20 STI components which will help to alleviate the impact.
| Stock | Ticker | Weight | Individual Dividend Yield | Dividend Received Through ETF |
| DBS Group Holdings Ltd | D05 | 24.29% | 5.10% | 1.24% |
| Oversea-Chinese Banking Corporation Limited | O39 | 16.38% | 5.22% | 0.86% |
| United Overseas Bank Limited | U11 | 12.42% | 4.75% | 0.59% |
| Singapore Telecommunications Limited | Z74 | 6.52% | 5.49% | 0.36% |
| Jardine Matheson Holdings Limited | J36 | 3.24% | 5.21% | 0.17% |
| Singapore Exchange Limited | S68 | 2.91% | 2.75% | 0.08% |
| CapitaLand Integrated Commercial Trust | C38U | 2.91% | 6.76% | 0.20% |
| Keppel Ltd. | BN4 | 2.58% | 5.10% | 0.13% |
| CapitaLand Ascendas REIT | A17U | 2.58% | 5.85% | 0.15% |
| Singapore Airlines Limited | C6L | 2.48% | 7.56% | 0.19% |
| Total Top 10 | 76.31% | 3.96% |
A brief overview of the latest holdings is as below.
Singapore being a financial hub, it is not surprising that DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39) and United Overseas Bank Limited (SGX: U11) are the largest components in the STI, contributing a total of approximately 53.09% of the overall weight.
Next in line is Singapore Telecommunications Limited (SGX: Z74), contributing to 5.49% of the overall weight of STI. It is the largest telecommunications operator in Singapore and its Australian subsidiary Optus is the second-largest operator in Australia. Singtel has done well the last few years, though recently they have made senior management changes, appointing a new chief corporate officer. This remains to be seen if the direction of Singtel will change.
Jardine Matheson Holdings Limited (SGX: J36) is next as the 5th largest component in STI. Jardine Matheson is a diversified Asia-based group founded in China in 1832, whereby they have a wide range of businesses in Southeast Asia. Recently for 2024Q3, they have reported ‘stronger performances’ across all businesses, with increased earnings from its financial services, heavy equipment and mining, infrastructure and logistics divisions. It is approximately 3.24% of the overall holdings.
Singapore Exchange Limited (SGX: S68) is the Singapore-based exchange conglomerate that facilitates the listing of Singapore shares. The share price has hit a recent high, having reported a good set of earnings. Its weight is 2.91% in STI.
CapitaLand Integrated Commercial Trust (SGX: C38U) and CapitaLand Ascendas REIT (SGX: A17U) are the 2 Real Estate Investment Trusts (“REITs”) in the top 10 of STI, combined weight of 5.49% of the index. These REITs give exposure to retail, commercial, business space and industrial properties.
Keppel Ltd. (SGX: BN4) consists of several affiliated businesses that specializes in property, infrastructure and asset management businesses. Keppel Ltd divested its offshore marine (“O&M”) business to Sembcorp Marine in February 2023, and since then they have performed reasonably well. Its weight is 2.58% in STI.
Singapore Airlines Limited (SGX: C6L) is Singapore’s national carrier and have done reasonably well the last few years recovering from the disruptions of Covid-19. Its weight is 2.48% in STI.
Background
The Straits Times Index (“STI”) is a market capitalization weighted index that tracks the performance of the top 30 companies listed on SGX.
One thought on “Straits Times Index ETF: 24 November 2024 Components Review”