Sunday, June 28

Using Fund Characteristics Of STI ETF As A Purchase Decision

Posted by at
It has been 4 years since I wrote my last post. A lot of information is now available on easily online as compared to a few years ago when I first wrote about the STI ETF.

Some information is now available on the website of the SPDR Straits Times Index ETF.

I do get questions from time to time on when is a good time to purchase the STI ETF. You can click on this link to access the official website for the SPDR STI ETF.


On the website, you can refer to some information on this ETF under the fund characteristics section.



The price/earnings ratio or in short, the P/E ratio can be used a gauge to decide if the ETF is cheap enough for entry. The P/E ratio is taken from the selling price of the item divided by its earnings. In this case, since the STI ETF is tracking the Straits Times Index (STI), this can be taken to mean that it is the ratio of the total market price or capitalization of the companies that consists of the STI to the total earnings of these companies.

We are looking for a ratio as low as possible since this essentially means that the lower the P/E ratio, the lesser the number of years it takes for the earnings to pay back the purchase price.

If you do a search on STI P/E chart, you can easily glean information online such as the charts below.



At its current P/E ratio of 13.36, it looks like it is below the long term average although it is not as low as the global financial crisis during 2008 though I would probably term that as a rare event.

4comments

  1. Kevin L.June 30, 2015 at 3:00 PM

    I have benefitted from your blog posts previously, and glad to see you back with a post on STI ETF.

    ReplyDelete
  2. KayJuly 2, 2015 at 11:20 PM

    It's good to hear from you. I hope to keep this blog running though I may not be writing that frequently :)

    ReplyDelete
  3. Instant Loans IncJune 28, 2016 at 11:48 AM

    Do you need a quick loan? We offer loans at 3% interest rate. We give out personal loans, auto loans, mortgage loans, agricultural loans, business loans. We give out amount between $5000 to $20 Million dollars. Repayment period is between 1 to 25 years. To get more information: zionfinance01@gmail.com

    ReplyDelete
  4. UnknownAugust 5, 2016 at 2:01 AM

    Dear valued customer,

    Do you need Financial Assistance?
    Do you seek funds to pay off credits and debts?
    We give out loan with an Interest rate of 1.00%

    Please, contact us for more information: pergocf@fastservice.com

    Kindly write us back with the loan information;
    - Complete Name:
    - Loan amount needed...$, €, £:
    - Loan Duration:
    - Purpose of loan:
    - City / Country:
    - Telephone:
    - Name of the Site:

    Please, contact us for more information: pergocf@fastservice.com

    Yours Sincerely,
    Mrs. Ceren Kelly
    pergocf@fastservice.com

    We look forward to hear from you ASAP.

    ReplyDelete

Subscribe to: Post Comments (Atom)