At just 0.03% a year?
Can use your SRS somemore? 👀
Now this caught my attention.
I attended an ETF session by SGX and DWS Investments on Friday, where we discussed UCITS ETFs, how investors select them, and something that is often overlooked, liquidity and execution.
Quite timely too, because Xtrackers by DWS is expected to list four ETFs on SGX on 13 October:
XUS: S&P 500
XWR: MSCI World
XND: Nasdaq 100
EUS: S&P 500 Equal Weight
The indices aren't new.
What's interesting is how Singapore investors can access them.
All four are Irish-domiciled UCITS ETFs, traded in SGD on SGX, expected to be SRS eligible and accumulating, so dividends are automatically reinvested.
There is also a tax angle worth knowing.
Because they are Irish-domiciled, the funds benefit from the 15% Ireland-US treaty withholding-tax rate on US dividends, versus the full 30% highlighted by DWS. Over many years of compounding, every little bit counts.
Of the four, XUS caught my eye first.
Maybe because I like to keep things simple. 😄 It tracks the good old S&P 500. Nothing fancy.
But the TER is just 0.03%.
That's S$3 a year for every S$10,000 invested, based purely on the TER.
I actually had to look at the 0.03% twice. 😂
And with a minimum lot size of just 1 share, it's quite friendly for those who prefer to DCA regularly too.
But one point from the session is worth remembering.
Cheap doesn't automatically mean better.
Liquidity, bid-ask spreads and actual trading activity matter too. Darren Tan from Flow Traders gave a useful demonstration on ETF liquidity and execution, which is something investors sometimes overlook when comparing ETFs purely by fees.
That's something I will be watching after these ETFs start trading.
But I think there is a bigger story here. For years, Singapore investors looking for low-cost global exposure have often looked overseas. Now, more of that investing toolkit is coming closer to home.
SGD. SRS. UCITS. Accumulating. Low fees.
Maybe the question is slowly changing from:
"Which overseas market should I buy my ETF from?"
to...
"Do I still need to go overseas?" 🤔
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