Key takeaways from SGX press release yesterday relating to index investing :

  1. This change in standard board lot size from 1,000 to 100 will take effect from 19th Jan 2015.
  2. The reduction in board lot size will also specifically apply to two index Exchange Traded Funds – SPDR STI ETF and ABF Singapore Index Bond Fund. All other ETFs will retain their original lot size.

Thus, you can more easily implement a classic 3-fund index portfolio from 2015. In terms of affordability, a local equity component (100 shares) will only cost S$300+ while a local bond (100 shares) component will cost S$100+. A global equity component such as Vanguard Total World Stock Index will cost USD$60+ per share at today’s price.