Tuesday 7 May 2024

Returns on regular DCA of STI ETF over 10 years

 

I came across this blog where the writer calculated the returns from diligently dollar cost averaging into the STI ETF over the 10 years. The results are not fantastic but 4% CAGR still beats CPF OA. 

Finance Opti: Is STI really the Super Terrible Index? My returns after investing 10 years

Its great that there are financial bloggers who produce substantive quality content as opposed to financial influenzas who try to stretch out publicly available information you can read in 1minute into multiple long form youtube videos.

As I have shared in this blog and in internet forums, my approach to buying STI ETF is to only buy in when it is below $3. This means that I bought during the GFC, 2016, and 2020 (Covid-19) crashes/corrections. My reason for buying is that it is a safe bet that STI will recover to >3000, and when I buy STI ETF at a discount, it means I am paying "less" for the yield that it offers.

I primarily use CPF-OA to buy STI ETF since there are various restrictions concerning what you can use CPF-OA for. With Endowus and other Robo-advisors today, perhaps the restrictions are not as bad as when I first started out of course.

I also include for reference, current year to date returns of STI vs S&P500:


STI vs S&P500 YTD - 8.8% vs 0.7%



Link to my 2017 blogpost: BuyafterCrash: STI 3,000: What's the plan?

Link to my 2020 STI ETF purchases: BuyafterCrash: Averaging down progress

Link to my 2016 STI ETF purchasesBuyafterCrash: Returns after regularly Investing in STI ETF in 2016

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