Fund cost is relative. It depends on what do we benchmark with.
If we benchmark with active manage fund like Unit Trust or Mutual Fund, then STI ETF is low cost.
If we benchmark with SPDR 500, then STI ETF is high cost. SPDR 500 has Forex risk.
IMO, I don't mind to pay 0.3% of invested fund. For example, if I invest $100K, then the cost will be $300 per year. After minus off the fund cost, I probably still able to get 2.8% dividend.
Fund cost is relative. It depends on what do we benchmark with.
ReplyDeleteIf we benchmark with active manage fund like Unit Trust or Mutual Fund, then STI ETF is low cost.
If we benchmark with SPDR 500, then STI ETF is high cost. SPDR 500 has Forex risk.
IMO, I don't mind to pay 0.3% of invested fund. For example, if I invest $100K, then the cost will be $300 per year. After minus off the fund cost, I probably still able to get 2.8% dividend.