The STI ETF is probably the single most recommended starting point for new investors in Singapore, and for good reason. It offers instant diversification across the 30 largest companies on the Singapore Exchange, low fees, and semi-annual dividends, all without needing to pick individual stocks. Here is what the STI ETF actually is, how the two available versions compare, and what you need to know before investing.
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What Is the STI ETF
The STI ETF is a passively managed exchange-traded fund that replicates the performance of the Straits Times Index (STI), Singapore’s benchmark index tracking the 30 largest companies listed on the Singapore Exchange (SGX). Rather than trying to beat the market, the fund simply holds the same 30 stocks in roughly the same proportions as the index itself, which keeps costs low and removes the guesswork of stock picking.
There are two versions of the STI ETF available to Singapore investors, and this is where a lot of first-time investors get confused, since they track the same index but are run by different fund managers.
SPDR STI ETF (ES3) vs Nikko AM STI ETF (G3B)
The SPDR Straits Times Index ETF trades under the ticker ES3, while the Nikko AM Singapore STI ETF trades under G3B. Nikko AM’s Singapore operations were rebranded to Amova Asset Management in 2024, so you may also see G3B referred to as the Amova STI ETF, though the fund itself is unchanged.
| Feature | SPDR STI ETF (ES3) | Nikko AM / Amova STI ETF (G3B) |
| Expense Ratio | 0.30% p.a. | 0.30% p.a. |
| Dividend Frequency | Semi-annual | Semi-annual |
| Approximate Trailing Yield | ~3.3% to 3.6% | ~3.5% to 3.8% |
| Fund Size | Larger, more established | Smaller |
| CPF OA / SRS Eligible | Yes | Yes |
Since both funds charge an identical 0.30% expense ratio and track the exact same index, the practical difference between them is small. ES3’s larger fund size generally means tighter bid-ask spreads and better liquidity, which matters more if you are trading frequently or with larger sums. For most long-term investors dollar cost averaging monthly, either fund gets the job done, and which one you pick often comes down to which your brokerage or regular savings plan supports.
STI ETF Dividend: How Much and When
Both STI ETFs distribute dividends semi-annually, typically in January or February, and again in July or August each year, collected from the 30 underlying STI companies and passed through to unitholders as cash. The three Singapore banks, DBS, OCBC, and UOB, are consistently among the largest contributors to this dividend pool given their weight in the index.
For Singapore tax residents, no withholding tax applies to STI ETF dividends, which is a genuine advantage over some overseas-listed ETFs where dividend withholding tax can eat into your returns. Dividend amounts are not guaranteed and fluctuate year to year depending on how the underlying companies perform.
How to Check the Current STI ETF Share Price
Because ETF prices move throughout every trading day, I will not quote a specific number here since it would be outdated almost immediately. You can check the live price of ES3 or G3B directly on the SGX securities page, or through your brokerage app. As a rough guide for scale, both funds have historically traded in the mid-single-digit dollar range per unit, though this changes over time as the underlying index moves.
Is the STI ETF a Good Investment
The STI ETF suits investors who want broad Singapore market exposure without the effort of researching individual stocks, and its low 0.30% expense ratio compares favourably against actively managed Singapore equity funds, which typically charge 1.0% to 1.5% per year. The main drawback is concentration: the STI is dominated by financials and a handful of large caps, so you are not getting the same diversification you would from a broader regional or global index fund.
For income-focused investors, the STI ETF’s dividend yield sits below what you could earn from carefully selected individual dividend stocks or REITs, though with considerably less company-specific risk. See my Best Dividend Stocks in Singapore guide if you want to compare the tradeoffs.
How to Buy the STI ETF
You can buy ES3 or G3B through any SGX-linked brokerage account as a normal stock purchase, or automate your purchases through a regular savings plan. This is where dollar cost averaging comes in naturally: DBS Invest-Saver, POSB Invest-Saver, and OCBC’s Blue Chip Investment Plan all support monthly investing into the STI ETF from as little as S$100 a month, letting you build a position gradually rather than needing a large lump sum upfront.
Both ES3 and G3B are also approved under the CPF Investment Scheme for Ordinary Account savings above the first S$20,000, and are eligible for SRS investment, giving you flexibility in which pool of money you use to invest.
STI ETF FAQ
What is the difference between SPDR STI ETF and Nikko AM STI ETF?
Both track the same Straits Times Index at an identical 0.30% expense ratio. The main practical differences are fund size (SPDR’s ES3 is larger and more liquid) and which one your specific brokerage or savings plan supports.
Does the STI ETF pay dividends?
Yes, both versions pay dividends semi-annually, sourced from the dividends of the 30 underlying STI companies, with no withholding tax for Singapore tax residents.
Can I buy the STI ETF using my CPF or SRS?
Yes, both ES3 and G3B are approved for CPF Ordinary Account investing above the first S$20,000, and are eligible for SRS investment.
Is the STI ETF good for beginners?
Generally yes, since it offers instant diversification across Singapore’s largest companies at low cost, without requiring individual stock analysis. It is often recommended as a starting point before investors branch into individual stocks or other markets.
Bringing It Together
The STI ETF remains one of the simplest ways to get diversified exposure to the Singapore stock market, and the choice between ES3 and G3B matters far less than actually starting and investing consistently. If you are just getting started, pairing the STI ETF with a regular savings plan and understanding how your returns compound over time will matter more than which specific ticker you choose. See my Compound Interest Calculator guide for how those regular contributions actually grow over the years.
Disclaimer: This is not a sponsored post and not financial advice. Figures cited are based on publicly available fund factsheets and financial publications as of 2026 and change over time. Always verify current prices, yields, and fees directly with SGX or the respective fund manager before investing.