STI ETF Singapore: Complete Guide 2026 (ES3 vs G3B, Yields & How to Buy)

Singapore’s benchmark index ETF — covering dividends, CPFIS eligibility, broker comparisons and 2026 yield data.

The STI ETF is an exchange-traded fund listed on the Singapore Exchange (SGX) that tracks the Straits Times Index (STI) — Singapore’s benchmark of 30 blue-chip companies. Two versions exist: ES3 (SPDR STI ETF) by State Street and G3B (Nikko AM STI ETF). Both have a 0.30% TER, pay quarterly dividends yielding approximately 3.5% per annum, and are CPFIS-OA eligible — making them a rare CPF-investable equity option for Singapore investors.

Not financial advice. All figures are for educational reference only. Data as at May 2026 unless noted.

Table of Contents

What Is the STI ETF?

The STI ETF is an exchange-traded fund that tracks the Straits Times Index (STI), Singapore’s premier stock market benchmark comprising 30 of the largest and most liquid companies listed on the SGX. These include DBS Group, OCBC Bank, UOB, Singapore Telecommunications (Singtel), CapitaLand Integrated Commercial Trust, and other blue-chip names that form the backbone of Singapore’s economy.

There are two STI ETFs available to Singapore investors, both listed on the Singapore Exchange (SGX):

• ES3 — SPDR Straits Times Index ETF by State Street Global Advisors (SSgA). Launched in 2002, it is Singapore’s oldest and most liquid ETF with assets under management (AUM) of approximately SGD 1.6 billion as at Q1 2026. ES3 is the more widely traded version, with higher daily trading volume.
• G3B — Nikko AM Singapore STI ETF by Nikko Asset Management. Launched in 2009, with AUM of approximately SGD 600 million as at Q1 2026. G3B tends to have slightly lower bid-ask spreads on certain days, making it a competitive alternative for smaller investors.

Both ETFs hold the same 30 constituent stocks of the STI in proportion to their market capitalisation. They distribute dividends quarterly — collecting the underlying dividends from constituent companies and passing them to unitholders after a small withholding. The STI is a price-weighted, dividend-distributing index: all dividends are paid out rather than reinvested, which makes these ETFs appealing to income-seeking investors.

Unlike global ETFs such as CSPX or VWRA — which are listed on the London Stock Exchange and track global or US indices — the STI ETF is SGX-listed, denominated in Singapore dollars (SGD), and invests purely in Singapore equities. This makes it far simpler to buy through any Singapore brokerage, and critically, makes it one of the very few equity ETFs eligible under the CPF Investment Scheme Ordinary Account (CPFIS-OA).

ES3 vs G3B: Key Facts at a Glance

Source: SGX, State Street Global Advisors, Nikko Asset Management factsheets, May 2026

Why Singapore Investors Choose the STI ETF

The STI ETF offers a unique value proposition that no other ETF can replicate for Singapore investors: it combines SGX-listing convenience, CPFIS eligibility, SGD denomination, quarterly income, and blue-chip Singapore equity exposure in a single low-cost product.

Here are the key reasons Singapore investors buy the STI ETF in 2026:

1. CPFIS-OA Eligibility
Both ES3 and G3B are approved CPFIS-OA investments. This is rare — most equity ETFs, including global giants like CSPX and VWRA, cannot be bought with CPF savings. Singapore investors with substantial CPF-OA balances (beyond the minimum sum) can deploy this capital into the STI ETF and potentially earn above the 2.5% CPF-OA interest rate through dividends and capital appreciation. This makes the STI ETF a compelling alternative for CPF investors who would otherwise leave money in the OA at a fixed 2.5% rate.

2. No FX Risk or FX Conversion Costs
Because both ETFs are denominated in SGD and invest in SGX-listed Singapore companies, there is no currency conversion required. Unlike buying CSPX (priced in USD/GBP) or VWRA (GBP), which incurs FX spread costs of 0.15–0.50% per transaction, the STI ETF is a clean SGD-in, SGD-out investment. For investors sensitive to FX exposure or costs, this is a meaningful advantage.

3. Quarterly Dividend Income
The STI’s constituent companies — banks, real estate investment trusts, and telecommunications firms — are among Singapore’s most reliable dividend payers. ES3 and G3B both distribute quarterly, making the STI ETF one of the most income-friendly equity ETFs available to Singapore retail investors. As at May 2026, the trailing dividend yield is approximately 3.3–3.7% per annum.

4. Simplicity and SGX Accessibility
The STI ETF can be purchased through virtually any Singapore brokerage — CDP-linked brokers like DBS Vickers, POEMS, UOB Kay Hian, and digital brokers like Syfe Brokerage and moomoo Singapore. Unlike LSE-listed ETFs that require an international brokerage account (IBKR, Saxo), the STI ETF works with a simple SGX-connected local broker. This simplicity makes it particularly popular with first-time investors and those who prefer to keep investments in the local ecosystem.

Dividend Yield and Historical Performance

The STI ETF has delivered consistent dividend income over the past decade, though total returns (dividends + capital appreciation) have lagged global equity benchmarks like the S&P 500. Understanding this trade-off is critical for any Singapore investor evaluating the STI ETF.

Here is the approximate dividend yield history for ES3 (SPDR STI ETF):

Source: SGX, State Street Global Advisors ES3 annual reports. Past performance is not indicative of future results. Total return figures are approximate.

The STI ETF’s 5-year average dividend yield of approximately 3.4% is competitive with Singapore Savings Bonds (which currently yield around 2.8–3.1% for 10-year terms) and meaningfully above the CPF-OA rate of 2.5%. However, unlike SSBs or the CPF, the STI ETF carries equity market risk — as seen in 2020, when a -11.8% price decline more than offset that year’s dividend income.

For investors seeking a comparison, you can use our Singapore retirement calculator to model how a STI ETF allocation might grow over time alongside other assets like S-REITs or bonds.

Expense Ratio and Total Costs

Both ES3 and G3B carry a Total Expense Ratio (TER) of 0.30% per annum. This is deducted from the fund’s assets daily and reflected in the ETF’s net asset value (NAV) — investors do not see a separate line-item charge. On a SGD 50,000 investment, this translates to approximately SGD 150 per year in management fees.

How does this compare with other options?

• CSPX (iShares S&P 500 UCITS ETF): 0.07% TER — significantly cheaper, but tracks the S&P 500 (US market), not Singapore. Read our CSPX ETF buying guide for a full comparison.
• VWRA (Vanguard FTSE All-World UCITS ETF): 0.22% TER — broader global exposure at lower cost than the STI ETF, but not CPFIS-eligible and requires a foreign brokerage account.
• Direct STI stock investment: Zero TER, but you would pay brokerage commissions on 30 individual stocks, rebalancing costs, and significant time managing the portfolio. The STI ETF’s 0.30% TER more than pays for itself in administrative convenience.

One important nuance: because the STI ETF invests in Singapore-listed companies, there is no foreign withholding tax on dividends at the fund level. Singapore does not impose dividend withholding tax on residents. This contrasts sharply with global ETFs like CSPX (which incur a 15% US dividend withholding tax at the fund level under the Ireland-US tax treaty). For dividend-focused investors, the STI ETF’s gross yield is the net yield — nothing is deducted before distribution.

Is the STI ETF CPFIS Eligible?

Yes — both ES3 (SPDR STI ETF) and G3B (Nikko AM STI ETF) are approved investments under the CPF Investment Scheme — Ordinary Account (CPFIS-OA). This is one of the STI ETF’s most significant advantages over virtually all other equity ETFs available to Singapore investors.

To invest your CPF-OA savings in the STI ETF, you must first have funds in excess of the minimum CPF-OA balance ($20,000 must remain in the OA at all times). The investable amount is the balance above this threshold. Here’s how a CPF scenario plays out:

Source: CPF Board CPFIS rules, May 2026. Dividend yield based on ~3.5% trailing yield estimate; actual yield will vary. Not financial advice.

Important caveats: the STI ETF carries equity market risk. In a down year (as in 2020), your CPF investment could fall in value below what you put in — you would not earn the guaranteed 2.5% CPF-OA rate on that portion. The CPF Board recommends investors assess their risk tolerance before investing CPFIS savings. For more on deploying CPF savings effectively, see our guide on CPF investment strategy Singapore.

How to Buy the STI ETF in Singapore (Step-by-Step)

Because ES3 and G3B are SGX-listed, you can buy them through any broker with SGX access — including CDP-linked brokers and custodian-model brokers. Here is a step-by-step guide for the most popular platforms:

Option 1: Syfe Brokerage (Best for Beginners)

Syfe offers commission-free ETF trading on SGX with no minimum deposit. It is a custodian-based broker (shares held in Syfe’s name, not your CDP account). Steps: (1) Open a Syfe Brokerage account — use our Syfe referral code for exclusive sign-up bonuses; (2) Fund with SGD via PayNow or bank transfer; (3) Search for “ES3” or “G3B” in the app; (4) Select “SGX” exchange; (5) Enter number of units and place a limit order or market order; (6) Monitor your dividend payments quarterly in the app.

Option 2: moomoo Singapore (Best for Active Traders)

moomoo offers competitive commissions of SGD 0.99–1.99 per trade for SGX stocks and ETFs. It is also a custodian broker. For a full breakdown of fees and features, see our moomoo Singapore review. Steps: (1) Open moomoo SG account; (2) Fund SGD; (3) Search “ES3” or “G3B” under SGX; (4) Place order.

Option 3: DBS Vickers / POEMS / UOB Kay Hian (CDP-Linked)

Traditional brokers link directly to your Central Depository (CDP) account, so shares are held in your own name. This matters for CPFIS investing — to use CPF-OA funds, you must use a CPFIS-approved agent bank and broker (DBS, OCBC, UOB). Brokerage commissions are typically 0.18–0.28% per trade (min SGD 18–25). Steps: (1) Open CDP account at SGX if you don’t have one; (2) Open a trading account with your preferred CDP-linked broker; (3) To use CPFIS, link your CPF-OA account via your agent bank (DBS/OCBC/UOB); (4) Search for ES3 or G3B; (5) Place order — SGD settles T+2.

Minimum Investment

Both ES3 and G3B trade in board lots of 100 units on SGX. As at May 2026, ES3 trades at approximately SGD 3.45–3.60 per unit, so a minimum purchase is approximately SGD 345–360. G3B trades at similar levels. There is no ongoing minimum — you can buy one lot and hold indefinitely.

STI ETF vs Alternatives

The STI ETF is not the only way to invest in Singapore or build a passive income portfolio. Here is how it compares with the main alternatives available to Singapore investors as at May 2026:

Source: SGX, iShares, Vanguard, MAS, CPF Board, May 2026. CSPX and VWRA yields reflect fund distributions; CSPX is accumulating so yield is reinvested. Yields are approximate and will vary.

For Singapore investors who want both local dividend income and global growth, the most common strategy is to combine the STI ETF (for Singapore exposure + CPFIS) with CSPX or VWRA (for global growth exposure). The STI ETF also complements the best S-REITs in Singapore 2026 as a lower-volatility counterpart in a local income portfolio.

If you are interested in higher-yielding income options within the SGX ecosystem, our Singapore REIT ETF guide covers the Lion-Phillip S-REIT ETF and Nikko AM-Straits Trading Asia ex Japan REIT ETF in detail.

Who Should Buy the STI ETF?

The STI ETF is ideal for Singapore investors who meet one or more of the following criteria:

The STI ETF is ideal if you:

• Want to invest your CPF-OA savings in equities and potentially earn above the 2.5% OA rate
• Prefer quarterly dividend income in SGD without FX risk
• Are a first-time investor who wants simple, low-cost exposure to Singapore’s blue-chip companies via a local brokerage
• Want Singapore “home bias” in your portfolio alongside global ETFs like CSPX or VWRA
• Are building a passive income Singapore portfolio and want an equity ETF to complement your S-REIT holdings

Consider alternatives if you:

• Want higher total returns — over the past 10 years, the S&P 500 has significantly outperformed the STI on a total return basis. If capital growth is your primary goal, CSPX or VWRA may be more appropriate
• Want higher dividend yields — S-REITs typically yield 5–7%, compared to the STI ETF’s ~3.5%. For maximum income, see our passive income Singapore guide
• Want global diversification — 100% Singapore equity exposure concentrates your portfolio in a small market. The STI’s 30 stocks are heavily weighted toward banks (DBS, OCBC, UOB = ~45% of the index), reducing diversification
• Are comfortable with international brokerages — if you can open IBKR or Saxo, accessing CSPX or VWRA at lower TER and broader global exposure may be more efficient for long-term wealth building

For SRS (Supplementary Retirement Scheme) investors, both ES3 and G3B can be purchased with SRS funds through brokers like DBS, OCBC, and UOB, providing an additional tax benefit on contributions. Combine the STI ETF with a Singapore retirement planning calculator to model your long-term outcomes.

Not financial advice. Always assess your own financial situation and risk tolerance before investing. Consider consulting a licensed financial adviser if needed.

Frequently Asked Questions

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