SPDR STI ETF ES3 Dividend (August 2024)

The State Street SPDR Straits Times Index (STI) Exchange Traded Fund (ETF) pays out dividend payouts bi-annually i.e. twice a year in February and August.

Most recently, our Singapore domestic equities index tracker SPDR STI ETF has declared its dividend payout of SGD $0.086 for August 2024.

Overview – SPDR Straits Times Index ETF

The State Street SPDR (pronounced as spider) Straits Times Index ETF is one of the oldest ETFs in Singapore.

• Fund inception date is 11 April 2002
• SGX listing date is 17 April 2002

That’s pretty impressive with a history of over two decades!

The Straits Times Index, maintained by FTSE International Limited, represents the performance of the top 30 eligible companies.

The 30 constituents of the Straits Times Index can be found on the SGX.

Meanwhile, the Index constituents are reviewed semi-annually in March and September and are diversified across all sectors.

The Fund’s investment objective is to replicate as closely as possible, before expenses, the performance of the Straits Times Index. It will seek to achieve this objective by investing all, or substantially all, of its assets in Index Shares in substantially the same weightings as reflected in the Index.

Key Information About The STI ETF

• Stock Code → ES3
• Board Lot Size → 1
• Distribution Frequency → February and August
• Benchmark → Straits Times Index
• Total Expense Ratio → 0.26% p.a.
• Number of Holdings → 30

The STI ETF is notably overweight on financials with the three local banks (DBS, UOB and OCBC) making up approximately 51% of the weightage.

With the inclusion of the Frasers Centrepoint Trust into the STI, the holdings of the STI ETF have already been updated and are a huge play on the financials and real estate sectors at about 70% in total.

STI ETF Dividend Payout (4.39% Yield)

The ex-date for the August 2024 dividend payout was 13 August 2024, and the dividend distribution was paid out on 27 August 2024.

It is important to highlight that investors will only receive the upcoming dividend if they buy the ETF before the ex-dividend date.

On the ex-dividend date, the opening price will decline by the distribution amount because they will not receive the declared dividend payment.

The distribution for the SPDR STI ETF in February 2024 is SGD $0.073 (see chart and technical).

Many of us would be happy to know that STI ETF has been on a good run for the past year when compared to Singapore-based REITs (e.g. Syfe REIT+) or the global market (e.g. Vanguard VT).

The dividend yield of STI ETF is pretty attractive, but if we zoom out, it looks suspiciously like it has been flat-lining for the past 15 years.

If you are looking to invest passively in the entire Singapore market, the SPDR Straits Times Index (STI) ETF is the best option.

With a relatively stable performance (which could be a bad thing), low fees (0.26%), and exposure to a range of sectors, the ETF is a cost-effective way to diversify your portfolio and see it as sort of a dividend play.

As mentioned, it would be prudent to consider the weightage of the 3 Singaporean banks.

Using The STI ETF In The Bogleheads 3 Fund Portfolio

The Bogleheads three-fund portfolio is a portfolio which uses only basic asset classes, usually —

• A domestic stock “total market” index fund
• An international stock “total market” index fund
• A bond “total market” index fund

What if I had invested equally into the following on 1 Jan 2020 before the pandemic happened?

• Global Equities $VWRA
• Singapore Equities $ES3
• Singapore Bonds $A35

We would have done OK even though it isn’t fantastic.

The superior performance of global equities would have saved the day and given us combined returns of 18%.

I Use StocksCafe To Manage My Portfolio

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If you are interested in tracking your portfolio (including Singapore Savings Bonds) with a high-quality tool that is super affordable, I am using StocksCafe by Evan (click here to learn more).

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Kevin started Turtle Investor when his net worth languished at negative $25,755. His desire to turn things around led him to build passive income from investments and side hustles that pay for his daily expenses and vacations. You can learn more about Kevin here.