STI ETF Singapore: Complete Guide to Nikko AM & SPDR (2026)

Dividends, share prices, expense ratios, and which STI ETF is right for you — all the data you need.

The STI ETF tracks the Straits Times Index — Singapore’s benchmark of the 30 largest SGX-listed companies — and is available in two versions: the Nikko AM Singapore STI ETF (ticker: G3B) and the SPDR Straits Times Index ETF (ticker: ES3). Both are listed on the Singapore Exchange (SGX), eligible for CPF and SRS investment, and distribute dividends semi-annually. As at Q1 2026, both ETFs yield approximately 3.5–4.0% per year with total expense ratios under 0.30%.

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

Table of Contents

What Is the STI ETF?

The STI ETF is a passively managed exchange-traded fund that replicates the performance of the Straits Times Index (STI) — Singapore’s most widely followed stock market benchmark. The STI is a market-capitalisation-weighted index of the 30 largest and most liquid companies listed on the Singapore Exchange (SGX), spanning sectors including banking (DBS, OCBC, UOB), real estate investment trusts, industrials, and telecommunications.

There are two main STI ETFs available to Singapore investors:

• Nikko AM Singapore STI ETF (SGX ticker: G3B) — managed by Nikko Asset Management, launched in 2009
• SPDR Straits Times Index ETF (SGX ticker: ES3) — managed by State Street Global Advisors, launched in 2002

Both ETFs are domiciled in Singapore, listed on SGX, and denominated in Singapore Dollars (SGD). Crucially, both are approved for investment using CPF Ordinary Account (OA) funds under the CPF Investment Scheme (CPFIS), as well as Supplementary Retirement Scheme (SRS) funds — making them among the most accessible investment vehicles for Singapore residents building their retirement portfolio.

Unlike global ETFs such as CSPX or VWRA that are listed on the London Stock Exchange and track international indices, STI ETFs provide concentrated exposure to Singapore’s domestic equity market. This makes them the natural “home base” holding for Singapore investors who want local equity exposure alongside broader global diversification through a passive income Singapore strategy.

Key Facts: Nikko AM vs SPDR at a Glance

Source: SGX, Nikko AM, State Street Global Advisors fund factsheets, April 2026

Why Singapore Investors Buy the STI ETF

The STI ETF is often the first investment many Singapore residents make — and for good reason. It offers broad, low-cost exposure to Singapore’s blue-chip equity market in a single trade, using funds from your brokerage account, CPF OA, or SRS account.

1. CPF Investment Scheme (CPFIS) Eligibility
Both G3B and ES3 are on the CPFIS approved list, meaning you can invest your CPF Ordinary Account funds (up to the investable limit after retaining SGD 20,000) into STI ETFs through a CPFIS-linked brokerage account. If you’re exploring whether this fits your retirement plan, the Singapore retirement calculator can help you model the impact.

2. No Withholding Tax on Singapore Dividends
Unlike US-listed ETFs such as VOO or QQQ, which carry a 30% US dividend withholding tax for Singapore residents, STI ETFs distribute dividends from Singapore-listed companies with no dividend withholding tax for Singapore tax residents. This is a meaningful advantage for income-focused investors.

3. SGD-Denominated — No Foreign Currency Risk
STI ETFs are priced and pay dividends in Singapore Dollars. There is no USD or GBP exposure, eliminating the FX conversion costs and currency risk that come with buying LSE-listed ETFs like CSPX or VWRA.

4. Sector Diversification Across Singapore’s Economy
The STI’s 30 constituents cover Singapore’s most significant industries: the three major local banks (DBS, OCBC, UOB) account for roughly 45% of the index weight, alongside REITs, Singtel, Keppel, CapitaLand, and more.

5. Liquidity and Low Minimum Investment
Both G3B and ES3 trade on SGX during market hours with tight bid-ask spreads. As at April 2026, both ETFs trade at approximately SGD 3.50–3.60 per unit, making them accessible even with a small starting capital.

STI ETF Dividends and Dividend Yield

Both STI ETFs are distributing structures — they pay out dividends to unitholders twice per year, typically in February and August. The STI ETF dividend yield tracks the aggregate dividend yield of the 30 STI constituents, which has historically ranged between 3.0% and 5.0% depending on market conditions. The three local banks — which together make up roughly 45% of the index — are the primary dividend drivers.

Source: SGX announcements, Nikko AM and State Street factsheets. DPS = dividend per share/unit. Past distributions are not a guarantee of future payouts.

Worked example — dividends on a SGD 20,000 investment:

A Singapore investor holding SGD 20,000 in STI ETF units (at ~SGD 3.55 per unit = ~5,634 units) receiving an annual dividend per unit of SGD 0.132 would collect approximately SGD 744 in annual dividends — a cash yield of ~3.7% on cost. No withholding tax applies to these dividends for Singapore tax residents. Compare this to best S-REITs in Singapore 2026, which may offer higher yields but come with individual stock risk.

Expense Ratio and Total Costs

Both Nikko AM and SPDR STI ETFs charge a Total Expense Ratio (TER) of 0.30% per annum. This is deducted from the fund’s net asset value daily and is not charged separately — it simply means the fund’s return is 0.30% less than the gross index return each year.

To put this in concrete SGD terms: on a SGD 50,000 portfolio, the annual management cost is approximately SGD 150 per year. On SGD 100,000, it’s SGD 300 per year. These are among the lowest-cost ways to own Singapore equities.

Beyond the TER, investors should account for brokerage commissions when buying and selling. Using a Syfe referral code to open a Syfe Brokerage account gives you access to commission-free trading of SGX-listed ETFs including G3B and ES3 — eliminating the typical SGD 10–25 per trade commission at traditional brokers.

Source: Syfe, DBS Vickers fee schedules, April 2026. Assumes one buy and one sell transaction per year.

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

Both G3B and ES3 are standard SGX-listed securities. You can buy them through any SGX-connected broker. Here are the most popular options for Singapore retail investors in 2026:

Option 1: Syfe Brokerage (Best for Beginners — Commission-Free)

Syfe Brokerage offers commission-free trading of Singapore stocks and ETFs. Steps: (1) Open an account via the Syfe referral code and sign-up bonus page; (2) Fund via PayNow or bank transfer; (3) Search for G3B (Nikko AM) or ES3 (SPDR); (4) Enter the number of units; (5) Place a market or limit order during SGX trading hours (9am–5pm SGT).

Option 2: FSMOne (Best for Regular Savings Plans)

FSMOne offers a Regular Savings Plan (RSP) for ETFs starting from SGD 50/month — ideal for dollar-cost averaging. Use the FSMOne referral code when signing up. FSMOne also supports CPF and SRS purchases of STI ETFs.

Option 3: CPF Investment Scheme (CPFIS)

To invest CPF OA funds in STI ETFs: (1) Ensure your CPF OA balance exceeds SGD 20,000; (2) Open a CPFIS-linked brokerage account at DBS, OCBC, UOB, or Maybank; (3) Transfer funds from CPF OA via the CPF Board portal; (4) Buy G3B or ES3 through your linked broker. For a deeper dive, see the CPF investment strategy Singapore guide.

Option 4: SRS Account

SRS contributions can be invested in STI ETFs through your SRS operator bank (DBS, OCBC, or UOB). SRS contributions are tax-deductible, and dividends within an SRS account are not immediately taxable — a meaningful benefit for higher earners. See the Singapore T-bills 2026 guide for a comparison of other SRS-eligible fixed-income options.

Option 5: moomoo Singapore

moomoo offers competitive commissions and a user-friendly app for SGX trading. See the full moomoo Singapore review for details on fees and account opening before getting started.

Nikko AM vs SPDR STI ETF: Which Should You Pick?

Both ETFs track the same index at the same TER. The differences are small but worth knowing:

Source: SGX, fund factsheets, April 2026. AUM figures are approximate.

Verdict: For most long-term passive investors, either ETF is perfectly fine. ES3 (SPDR) has larger AUM and tighter spreads, making it marginally more cost-efficient for large lump-sum purchases. G3B (Nikko AM) is widely used in Regular Savings Plans. If your broker offers both, the difference in real-world outcomes over a long holding period is negligible.

Who Should Buy the STI ETF?

The STI ETF is ideal if you: want low-cost Singapore equity exposure in SGD with no FX risk; are looking to invest CPF OA funds above the SGD 20,000 threshold; want semi-annual dividend income from Singapore’s blue-chip companies; are a beginner wanting a simple, SGX-listed product; or are building a core-satellite portfolio with Singapore as the domestic “core” position.

Consider alternatives if you: want global diversification (pair the STI ETF with VWRA or CSPX for international exposure); prefer accumulating structures; are seeking higher yields (S-REITs typically yield 5–7%); or want exposure to US or global tech growth (the STI has minimal technology weighting).

Many Singapore investors hold STI ETFs alongside Singapore Savings Bonds guide and broader global ETFs to build a well-rounded, SGD-anchored portfolio. Use the Singapore retirement calculator to model different allocation scenarios for your situation.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Please consult a licensed financial adviser before making investment decisions. All data as at April 2026.

Frequently Asked Questions

Ready to Buy Your First STI ETF?

Open a brokerage account and start investing in Singapore’s blue-chip index today. Use our referral links for exclusive sign-up bonuses.