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Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
SGX
AMEX/
NYSE
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
SGX STI ETF IS MSCI India 100US$ Lyxor Cmdty 10US$ GLD 10US$ AMEX/ NYSE MSCI Singapore Powershares India Greenhaven Commodities Index SPDR Gold Shares
Introduction
Ease of trading
Cost of trading
Other factors
Advice
US compared to Singapore
Higher Trading Volume Greater Liquidity Longer Market Hours
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Market Hours
SGX
9am 5pm
AMEX/ NYSE
Enter orders pre-market and afterhours Up to 24 hours
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Bid/Ask Spread
US listed ETFs have a better Bid/Ask Spread
AMEX/ NYSE 1 2 3 4 5 MSCI Singapore Powershares India Greenhaven Commodities Index SPDR Gold Shares Short S&P 500 ProShares US$0.01 US$0.01 US$0.06 US$0.01 US$0.01 Typical Spread $0.01 $0.07 $0.01 $0.22 $0.16 SGX STI ETF IS MSCI India 100US$ Lyxor Cmdty 10US$ GLD 10US$ DBXT S&P Short 10 US$
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Similar expense ratios Expense ratio is only marginally higher in the US than in Singapore
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Taxes
US Dividends are taxed at 30% Foreigners investing in the US will not be taxed on capital gains Singapore Dividends derived in Singapore are taxable
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Swap-based ETF
Performance pegged to derivatives (swap arrangement)
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Futures Contracts, Options on Futures Contracts, Local Currency andreduce Generate extra revenue to Forward Currency Exchange Contracts, Money management fees, etc. Market Instruments
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Investor
ETF Sponsor
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Investor
ETF Sponsor
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Cash-based ETF or swap-based ETF? Securities Securities lending programme lending? Investment Futures contracts Do not invest in futures contracts outside of the Options on futures contracts and options but invests in swap disclosed Other types of options and agreements, including credit portfolio holdings swaps defaults Cash and cash equivalents Money market funds
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Cash-based ETF Cash-based. or swap-based Full Replication ETF? Securities No. lending? Investment outside of the disclosed portfolio holdings
Swap-based. Representative Sampling Strategy. Securities lending programme Futures contracts Options on futures contracts. Other types of options and swaps Cash and cash equivalents Money market funds
ONLY 5 Cash-Based ETFs listed on SGX: ABF SG Bond ETF, CIMBFTASEAN40 100 US$, DaiwaFT ShariaJ 100 US$, DBS STI ETF 100 and the STI ETF are the only 5 ETFs listed on SGX that are cash-based
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Cash-based ETF or swap-based ETF? Securities lending? Investment outside of the disclosed portfolio holdings
Swap-based. Representative Sampling Strategy. Securities lending programme Futures contracts Options on futures contracts Other types of options and swaps Cash and cash equivalents Money market funds
The type of market does not determine the level of third-party risks an average investor will be unknowingly exposed to.
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Currency Risk
Most ETFs are denominated in USD
DBS STI
STI ETF
S$ABF SG
BOND
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Availability of Options
Options traded on the US market ETFs as their underlying Amplify his returns using cheap options Warrants
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Shorting
SGX Disallows naked shorting Insufficient inventory available Higher interest rates AMEX/ NYSE Naked shorting can easily be done Larger inventory of shares Lower interest rates
Introduction
Ease of trading
Cost of trading
Other factors
Advice
Advice
Telegraphic transfer costs
We recommend US ETFs.