Sunday 4 July 2010

STI ETF - Simple to buy but doesn't mean no emergency exit risk!

STI ETF is simple to buy at disciplined regular intervals i.e. no need to monitor and time the market; but it doesn't necessary mean no emergency exit risk!

Passive buy-and-hold long-term investors also must take note of your emergency exit risk if you ever need to liquidate huge sum of money from your STI ETF holding in a very bad market condition like the one in Q1 2009.

STI ETF has crashed to the low at $1.50 on 10 Mar 2009

Probably, STI ETF is a good investment strategy for long-term passive investors who want to buy slowly over a long time frame for wealth preservation and then liquidate the wealth slowly over long time frame or pass it as wealth to the next generation.


Read more 5 Myths About ETFs - Part 4

1 comment:

  1. I myself trade STI ETF...very fun....due to low volume, i made use of this "weakness" to make money out of it

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