Tuesday, April 29, 2014

Dual Currency SGX ETFs


Above are the dual currency ETFs listed on the SGX. There are other SGD ETFs as well, such as the Nikko STI and the SPDR STI. There is also the UOB China ETF, ABF Bond ETF and the Australia Cash ETF. The last few are not very enticing options. The full list of ETFs can be found here.

The good thing about SCB Online Equities Trading is that they do have all of these ETFs to be traded without the minimum commission as well. However, there is an interesting part to note, which is:



So, the dividends are paid out in USD? That is very confusing, especially since I do not have a USD account with any of banks or brokers, so how would I be credited the dividends? Auto converted at the prevailing rate and deposited into my account?

Since I am specifically only trading SGD denominated SGX tickers with SCB, I have decided not to bother the other banks with my questions as long as SCB can give me a satisfying answer to my question. Ideally, they would do just that - convert the dividends to SGD and credit my bank account or securities account that I have with them.

If that is the answer, that I would actually consider strongly investing in the fixed income ETFs very strongly! That would mean that with a slightly higher capital outlay (about SGD$1,200 for 100 shares of those ETFs), you are able to get (1) less lumpy cash flow of quarterly instead of semi-annually and (2) diversification of underlying assets!

I would definitely strongly consider in investing in them then! I'm very excited to find out SCB's answer to my question regarding this!

More information about the dual currency listings can be found here.

1 comment:

  1. I would always consider investing in the fixed income as there is great chances of profit and less chances of loss. You have written great post on Dual Currency SGX ETFs . Kudos to you!
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    ReplyDelete

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