It is the time of the year that our domestic index Exchange Traded Fund (ETF), the State Street SPDR Straits Times Index (STI) ETF declares its first of two dividend payouts for the year 2020.
SPDR® Straits Times Index ETF
The State Street SPDR (the acronym is pronounced “spider”) Straits Times Index ETF is one of the oldest ETF in Singapore with a Fund Inception Date of 11-April-2002 and a SGX Listing Date of 17-April-2002. As per the factsheet, the Straits Times Index is maintained by FTSE International Limited and represents the performance of the top 30 eligible companies. The Index constituents are reviewed semi-annually in March and September and are diversified across all sectors. The 30 constituents of the Straits Times Index can be found on the SGX link here.
The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the Straits Times Index (“Index”). The Fund 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.
Some key information of the STI ETF :
- Stock Code = ES3
- Board Lot Size = 10 (with effect from 16 September 2019). This is incorrectly stated as 100 in the fact sheet.
- Distribution Frequency = Semi-annual : February and August
- Number of Holdings = 30
- Remarks = The STI ETF is notably overweight on financials with the three local banks (DBS, UOB and OCBC) making up approximately one-third of the weightage.
STI ETF Dividend Payout
Ex-date for dividend payout is 10 February 2020 (Monday) so take note if you’re going to be making any transactions soon. The dividend distribution will be payable on 24 February 2020. Below is a screenshot of the actual announcement.
- Feb 2020 Dividends : SGD $0.056 (1.74% yield based on $3.21 price)
- Aug 2019 Dividends : SGD $0.064 (1.99% yield based on $3.21 price)
Combining this payout and the last payout, STI ETF dividend total of $0.12 presents a total yield of 3.73%.
Although the performance of STI ETF has lagged relative to the global market, the dividends continues to provide me with much needed passive income.
Vanguard Total World Stock ETF (VT) went on a crazy run last year. My index portfolio which included STI ETF and SSBs was a little muted in comparison.
Earlier this month, I had ‘Marie Kondo’-ed my finances by getting rid of excess baggage since new year, new start? I transferred the remnants of my STI ETF sitting in my Standard Chartered trading account and transferred them over to my CDP account for $10.70 – gained nothing out of it except for mental de-cluttering, to be honest.
Because the accounts were linked, I had to make the transfer first and complete it, before I could close my trading/settlement accounts and then the savings accounts. And the credit card. Made a trip to StanChart bank, signed a form to effect the transfer (prepare your information in advance e.g. CDP account number, trading account number, etc) and waited.
A few days later, the bank called and asked me to deposit $10.70 into my savings account to fund the transfer. Once that was done (logged in my CDP account to see the additional units of STI ETF), made another visit to StanChart to close my accounts.
This was one thing which didn’t make any tangible difference but I felt I needed to do it, in order to de-clutter myself mentally.
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