STI ETF
Straits Times Index ETF — Singapore Blue-Chip Index Fund Investing — Singapore investing guide with key metrics, examples and 2026 data.
The STI ETF is an exchange-traded fund that tracks the Straits Times Index (STI), Singapore’s benchmark index of 30 largest, most liquid companies listed on SGX. Two STI ETFs are available: Nikko AM Singapore STI ETF (SGX: G3B) and SPDR STI ETF (SGX: ES3). Both provide diversified exposure to Singapore blue chips with annual dividend yields of approximately 3.5–4.5%.
Not financial advice. All figures are for educational reference only. Data as at Q1 2026 unless noted.
Table of Contents
Contents — Click to expand
What Is the STI ETF?
The STI ETF is a passive index fund that replicates the performance of the Straits Times Index (STI), Singapore’s premier stock market benchmark. The STI comprises the 30 largest and most liquid companies listed on the Singapore Exchange (SGX), spanning banking, real estate, telecommunications, industrial, and consumer sectors. Investing in a STI ETF gives you proportional exposure to all 30 constituents with a single trade.
Two STI ETFs are listed on SGX:
- SPDR STI ETF (SGX: ES3): Managed by State Street Global Advisors, launched in 2002 — Singapore’s oldest and largest ETF by AUM. Expense ratio: 0.30% p.a.
- Nikko AM Singapore STI ETF (SGX: G3B): Managed by Nikko Asset Management, launched in 2009. Expense ratio: 0.30% p.a. — identical to ES3.
Both ETFs hold the same 30 STI constituent stocks, making them functionally identical. The key differences are in liquidity (ES3 typically has higher trading volume), dividend payment timing, and availability on specific platforms. The STI ETF is one of the most beginner-friendly investment products available to Singapore retail investors — ideal for those wanting broad Singapore market exposure without stock-picking.
How STI ETFs Work
STI ETFs use full physical replication — they hold actual shares of all 30 STI constituent companies in proportion to their index weights. The top holdings as at Q1 2026 include DBS Group (~15%), OCBC (~12%), UOB (~9%), Singapore Telecommunications (~7%), and CapitaLand Integrated Commercial Trust (~5%). Banking stocks dominate, comprising approximately 35–40% of the index weight.
STI ETFs pay dividends — typically quarterly for G3B and semi-annually for ES3. Dividends come from the underlying dividend income of the 30 constituent stocks, net of the 0.30% annual management fee. As at Q1 2026, the trailing 12-month dividend yield for both STI ETFs is approximately 3.8–4.2% per annum, making them attractive for income investors alongside S-REITs.
STI ETFs can be purchased through any SGX-connected brokerage in Singapore — DBS Vickers, OCBC Securities, Tiger Brokers, moomoo, and others. The minimum board lot size is 100 units. As at Q1 2026, ES3 trades at approximately S$3.30–S$3.50 per unit, meaning a minimum investment of approximately S$330–S$350 for 100 units.
Both STI ETFs are eligible for the Regular Savings Plan (RSP) offered by DBS, OCBC, and UOB — allowing monthly investments from as little as S$100 via automatic deductions, ideal for dollar-cost averaging.
STI ETFs in Singapore’s Investment Landscape (2026)
The STI has delivered approximately 4–5% annualised total return (price + dividends) over the past 10 years, underperforming global indices like the S&P 500 (approximately 11–12% annualised). Singapore’s market concentration in banks and property leads to high correlation with interest rate cycles.
However, the STI ETF offers specific advantages for Singapore investors: dividends are exempt from Singapore income tax, the STI is denominated in SGD (no currency risk), and the ETF is CPF-eligible under CPFIS for both ES3 and G3B using OA funds.
For retirement-focused investors, the STI ETF serves as the Singapore equity allocation in a diversified portfolio. It complements S-REITs (for real estate income), gold ETFs (for diversification), and CPF (for guaranteed returns). Our passive income Singapore guide covers how STI ETFs fit into a complete income-generating portfolio.
The Singapore Exchange also offers the Nikko AM REIT ETF (CFA) for focused REIT exposure — see the Singapore REIT ETF guide for a comparison of REIT ETF options versus owning REITs individually.
Real-World Examples
RSP investing: An investor contributes S$500/month to Nikko AM STI ETF (G3B) via OCBC’s Blue Chip Investment Plan (BCIP) from 2016 to 2026. Over 10 years, total investment = S$60,000. With the STI’s approximately 4.5% annualised total return over this period, the portfolio value at end-2026 is approximately S$74,000–S$76,000 — a gain of S$14,000–S$16,000.
Dividend income: An investor holding 10,000 units of ES3 (approximately S$34,000 at Q1 2026 prices) receives approximately S$1,360–S$1,430 in annual dividends at a 4.0–4.2% yield — tax-free passive income.
For dividend yield comparison with individual Singapore blue chips, use our Dividend Yield Calculator.
Why STI ETF Matters for Singapore Investors
The STI ETF is Singapore’s most accessible and beginner-friendly equity investment product. For investors who don’t want to pick individual stocks or REITs, the STI ETF provides instant diversification across Singapore’s 30 largest companies with minimal cost (0.30% p.a.) and regular dividend income.
For those starting their investment journey, the STI ETF combined with a CPF contribution strategy and T-bills for short-term savings forms a strong foundation. As portfolios grow, individual REIT selection can supplement the ETF for higher yield — our Best S-REITs 2026 guide provides the research needed to make that transition. Our Retirement Planning Calculator can model how an STI ETF RSP contributes to your long-term wealth accumulation.
Frequently Asked Questions
What is the difference between ES3 and G3B STI ETF?
ES3 (SPDR STI ETF) and G3B (Nikko AM STI ETF) both track the same Straits Times Index with the same 0.30% p.a. expense ratio. Key differences: ES3 has higher trading volume and longer history (since 2002). G3B pays dividends quarterly while ES3 pays semi-annually. Both are CPF-eligible and available on major Singapore brokerages. Either is suitable for long-term index investing.
What is the dividend yield of the STI ETF in 2026?
The trailing 12-month dividend yield for both STI ETFs (ES3 and G3B) is approximately 3.8–4.2% per annum as at Q1 2026, reflecting dividend income from the 30 Straits Times Index constituents. The yield is tax-free for Singapore individual investors. Yields vary year to year depending on dividend payouts by the underlying companies.
Can I use CPF to buy STI ETF in Singapore?
Yes — both SPDR STI ETF (ES3) and Nikko AM STI ETF (G3B) are approved under the CPF Investment Scheme (CPFIS) and can be purchased using CPF Ordinary Account funds. However, you must have at least S$20,000 in your OA before investing. The 2.5% OA guaranteed rate means you should only invest CPF if you expect ETF returns to exceed this hurdle.
Is the STI ETF a good long-term investment in Singapore?
The STI ETF is suitable for investors wanting low-cost, passive exposure to Singapore blue chips. Over 10 years, total returns have averaged approximately 4–5% p.a. — decent but below global market returns. The STI’s concentration in banks and real estate means it performs well in rising rate environments but can lag during tech-driven global bull markets. It suits conservative investors seeking dividend income and Singapore market exposure.
How do I invest in STI ETF via Regular Savings Plan in Singapore?
DBS, OCBC, and UOB all offer Regular Savings Plans (RSP) that include STI ETFs. DBS Invest-Saver, OCBC Blue Chip Investment Plan (BCIP), and POSB Invest-Saver allow monthly contributions from S$100 (DBS/POSB) or S$100–S$200 (OCBC). The plans automatically buy units monthly, enabling dollar-cost averaging without paying per-trade brokerage commissions.
Start Investing Smarter in Singapore
Use our free tools and referral bonuses to put your knowledge into action.