124 views
Photo by Cottonbro Studio via Pexels.

STI dollar-cost averaging yields 5.7% CAGR since 2019

The STI generated a 37% total return, outperforming other indices.

Dollar-cost averaging (DCA) into Straits Times Index (STI) exchange-traded funds (ETFs) has delivered an indicative compound annual growth rate of 5.7% since 2019, according to Singapore Exchange's (SGX) market update.

Over the same period, the STI generated a 37% total return, outperforming the Financial Times Stock Exchange Asia Pacific (FTSE APAC) Index's 31% return and the FTSE APAC ex-Japan Index's 28%. The STI’s trailing dividend yield of 5.0% is also notably higher, almost double that of its regional counterparts.

Despite market volatility, DCA has kept pace with lump-sum investing by allowing investors to accumulate units at lower prices during market downturns, SGX noted. As a result, DCA has emerged as a viable alternative to lump-sum investing, enabling gradual exposure to ETFs and stocks over time.

The most popular Singapore-listed ETFs used by DCA investors include the Nikko AM STI ETF and the Lion-Phillip S-REIT ETF.

Follow the link s for more news on

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.