Investors who wish to ride on the growth of the Singapore stock market now have more options to choose from, as European asset manager Amundi has just launched their fund. This makes Amundi the third player to track the Singapore’s benchmark Straits Times Index (STI) to enter the space, and the first unit-trust-based index fund tracking the STI.
But for experienced investors, how does the newest Amundi Singapore Straits Times Index Fund compare to existing options? And does it make sense for us to invest there instead of accessing it directly on the Singapore Exchange (SGX)?
This is the question I asked myself when it was announced earlier this month that Singapore-based robo-advisor Endowus has partnered with asset manager Amundi to launch the Amundi Singapore Straits Times Index Fund.
How to invest in the Straits Times Index (STI)
The Straits Times Index (STI) is made up of the 30 largest blue-chip companies listed in Singapore, and generally serves as a benchmark index for Singapore’s stock market returns. It has historically offered a decent dividend yield than other regional bourses, with lower volatility than global equity benchmarks due to Singapore’s robust banking, real estate, telecommunications, and industrial sectors.
Prior to this, if you were an investor who wanted to get exposure to the performance of the STI, you could buy either one of the two Exchange Traded Funds (ETFs) here – the SPDR STI ETF or the NikkoAM Singapore STI ETF:
- The SPDR Straits Times Index ETF was listed in 2002. Between January 2020 to July 2025, its assets under management increased by 131% to $1.92 billion.
- The Nikko AM Singapore STI ETF was listed in 2009. Between Jan 1, 2020, and July 14, 2025, its assets under management increased by 195% to $973 million.
Investors who looked mainly at AUM size tend to favour the SPDR Straits Times Index ETF, whereas investors who prefer a more local fund manager usually gravitated towards the Nikko AM Singapore STI ETF. In my case, I chose the latter.
So, is the newest Amundi Singapore Straits Times Index Fund worth considering?
What to know before you invest in the Amundi Singapore Straits Times Index Fund
EndowUs states that the Amundi Singapore STI Fund has the lowest total expense ratio (TER) when compared to the other STI ETFs in the markets right now.
Enjoy low-cost access to diversification with the Amundi Singapore Straits Times Fund offering the lowest total expense ratio among peers, with a management fee of just 0.15% p.a., and no transaction or sales charges. Available for Cash and SRS investments.
– EndowUs
This is true, but there are a few things you should note.
Firstly, while the management fee of 0.15% p.a. is indeed the lowest among other STI funds, investors using the EndowUs platform will have to pay an additional recurring EndowUs fee ranging from 0.15% – 0.6% every year.
Hence, if cost is your main concern, then buying one of the 2 STI ETFs on SGX directly would be the lowest-cost option for you. When I first started writing about STI ETFs on this blog, both options charged a similar expense ratio of 0.30% p.a. then, but this has since dropped further.
State Street has reduced their fees to 0.28% p.a. now, whereas NikkoAM’s expense ratio in the same audit period came in at a lower 0.26% p.a.
Next, you should note that the Amundi STI fund is not an ETF.
What Amundi is offering is a unit trust that is only available via robo-advisory platform EndowUs for now, which means the fund is not listed on the SGX. This means that what you’re buying is a product that you will not be able to trade it on the open SGX market, nor can you own it in your CDP to buy/sell using any other brokerage platforms. All of your transactions will have to be made through EndowUs only.
Who would buy the Amundi Singapore STI Fund, then?
There will always be different investment products to cater to the different needs of various investors. And in Singapore, the market is certainly big enough for a third player.
Existing EndowUs customers will likely find the Amundi Singapore STI fund to be an attractive option to add more Singapore exposure into their existing portfolios on the platform since they are already paying for their annual EndowUs fees anyway.
However, I don’t think it makes sense for a new customer to open an EndowUs account just to invest in the STI via this Amundi unit trust.
As for self-directed investors, buying directly via one of the 2 STI ETFs listed on the SGX still makes more sense in terms of cost, ownership and control. I find it hard to imagine this group of investors switching over to the newest player.
What do you think?
With love,
Dawn
