Exchange traded funds (ETFs)

If you are a busy professional who have no time for stock research but would like to build a diversified investment portfolio with global exposure, then exchange traded funds (ETFs) may be for you.

Generally, there is still a lack of awareness among retail investors on this class of investment probably because ETFs passively track indexes. Thus, it may take the thrill out of stock picking. Nonetheless, ETFs offer an alternative path to seek returns from the market.

Broadly speaking, ETFs is a type of collective investment scheme that pooled money from investors and invested according to the fund’s objective. In a way, it is similar to unit trust. However, the main difference between unit trust and exchange traded fund is that the former is actively managed by professionals while the latter passively track a specified index. Because of this, ETFs are open-ended investment funds and are traded on a stock exchange.

The interesting thing about ETF is that it replicates an index and do not try to outperform the underlying index.Take for example, if an ETF tracks the Straits Times Index (STI) which declines in value, the ETF would produce a return that reflects the drop in value.

Stock investing

There are several advantages in investing in exchange traded funds. Firstly, if you have limited capital but would like access to blue chips, then ETFs offer a low cost and simple way for you to own index stocks. For example Nikko AM Singapore STI ETF offers investors an opportunity to invest in the top 30 companies listed to SGX.

Secondly, retail investors do not [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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SGX launches stock and company information portal StockFacts for investors

Singapore Exchange (SGX) launched a new research and company fundamentals portal on its website.
The portal, called SGX StockFacts, has several features, including:
  • A comprehensive research database, covering stock fundamentals for all SGX-listed companies
  • Customised search, giving investors flexibility to filter stocks across 20 screening criteria
  • New proprietary tools, including S&P Capital IQ Alpha Factor Composites, which ranks stocks based on eight investment style classifications
  • Ability to chart a company’s financials for the last five years
  • Downloading and printing of company snapshots for easy analysing
Mita Natarajan, Head of Corporate Services, Listings, SGX, said: “SGX has enhanced many aspects of the stock market in recent months. The SGX StockFacts portal, which presents vital research and stock fundamentals on all SGX-listed companies in a user-friendly way, is yet another improvement to add value to investors and companies. It will help investors make more informed investment decisions, raise the visibility of our companies and add vibrancy to the stock market.”
SGX StockFacts is collaboration between SGX and S&P Capital IQ, a business unit of McGraw Hill Financial and a provider of multi-asset class research, data and analytics.

It can be accessed through SGX’s corporate website at www.sgx.com/stockfacts. The url for the press release is http://www.sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/sgx-launches-stock-and-company-information-portal-stockfacts-for-investors.

My view on StockFacts
To build wealth and make money through stock investment, you must first and foremost have access to objective data. The good thing about this platform is that it provides research database free-of-charge to investors. The fundamentals for all SGX companies are mostly covered, like ROE, debt, cash flow and dividend yields. But beyond these, I think the best feature for novice investors should be the S&P Capital IQ Alpha Factor Composites, which are metrics showing the company’s ranking in eight categories that are likely to affect its price. The platform is quite

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SGX Stock with Favorable Yield

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments.

SG Wealth Builder does not accept any liability whatsoever for any direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this article. The information and opinions in this publication are not to be considered as an offer to sell or buy any of the securities discussed. Opinions expressed are subject to change without notice.
  
Singapore is a well-known country for integrity, reliability, quality, productivity, rule of law, and enforcement of intellectual property rights. These things are crucial in the knowledge economy. The country is also a good place for foreign investments. It is a one-stop agency which facilitates and supports local and foreign investors in both manufacturing and services sectors, as they move up the value chain to achieve higher sustainable returns and seek out new business opportunities. I am sharing a brief description about one of the sgx dividends which is performing well from past five years. 

OSIM International Limited is a Singapore-based company which is engaged in marketing, distributing and franchising of healthy lifestyle products. It creates designs, develops and markets well-being lifestyle products through its specialty retail outlets worldwide. The products of the company include message chairs, foot massagers, neck & shoulder massagers, head massagers, fitness equipment, diagnostic equipment, vitamin & supplement and luxury tea.

The company has divided into business into two segments. The first is retail and the …

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IPO: My views on Far East Hospitality Trust

Some time back ago, I received a query from a reader asking for my views on Far East Hospitality Trust IPO. As mentioned in one of my previous posts, normally I refrain from giving advice on IPO, especially business trusts or REITs.

I must admit that my knowledge in business trusts and REITs is lacking. But then again, investors need to understand that business trusts and REITs are very different from shares trading in the stock market.

The structure and nature of the business model can be quite complicated for the man in the street to comprehend. For example, investors need to know that REITs are actually managed by external managers and are backed by sponsors which are usually major property developers or shipping companies.

IPO

Sometimes, there may be non-transparency concerning party-related transactions, so there might be cases of poor disclosures to investors. In addition, the assets are financed not only by unit holders, but also through bank loans as well.

Borrowers have to top up their loan facilities, should underlying asset values fall below a certain point. So investors need to understand the leveraging risks of business trusts and REITs as well and not just be seduced by the compelling yield.

Buying a IPO can be risky and so far, I have not invested in any IPO. I always believe that there is a need to have three years of track records of profits and positive net operating cash in order to consider a company good to invest.

If an investor bought an IPO based on the potential DPU or hope to make a killing from speculation, then I think that is no different from gambling. Investing requires painstaking research and taking calculated risk. This would requires companies to release detailed financial information so that investors can make informed …

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Best Online Stock Trading System in Singapore: POEMS

I started my wealth building journey 20 years ago when I started trading shares through my brother’s account, POEMS. If you are wondering what does POEMS stands for, it is an acronym for Philips Online Electronic Mart System. POEMS is an electronic platform established by Philips Pte Ltd in 1996 for buyers and sellers to trade equities, futures, forex, spot gold, silver and unit trust. POEMS charges commission fees for both buying and selling transactions.

Online Trading
During the late nineties when online trading was still at an infancy stage, many Singaporeans were still very skeptical of trading stocks online. Most people were horrified at the concept of buying stocks without certificates (just think of paying for goods without receipt given to you over the counter). At that time most Singaporeans are also used to rely on their brokers to trade because of tips and advice that stockbrokers can offer. In addition, there is the broker’s fear that their jobs would be on the line once internet trading render their services obsolete.

Trading

Due to advancement in technology and the increasing ownership of computers in many Singapore families, a lot of Singaporeans start to realize the advantages of online trading. Furthermore, brokers’ fears that internet trading would spell the end of their careers were unfounded as stockbrokers are still needed to provide value-added expertise views to traders.

Thus, setting the stage for the online trading boom since 2000. Nowadays most Singaporeans prefer online trading because of the convenience and lower transaction costs compared to buying stocks through brokers over the phone. It is during this period of time, POEMS underwent tremendous changes and went to achieve many performance awards. Today, the company has 6 investor centers round the island located in Raffles City Tower, Toa Payoh, Bukit Batok, Raffles Place, Marine

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