How to Buy Straits Times Index (STI) ETFs in Singapore: 2026 Guide

The Straits Times Index closed 2025 at approximately 4,645 points, delivering a total return of 22.7% — its strongest annual performance in years. Yet many Singapore investors still hold a majority of their savings in fixed deposits and CPF, earning rates that now lag behind what Singapore's largest blue-chip companies are paying out as dividends. 

The STI's constituent stocks collectively yield roughly 3–5% in annual dividends, sourced largely from DBS, OCBC, and UOB — banks that collectively earned record profits throughout 2020 - 2025.

This guide cuts through the noise: what the STI actually contains, which ETF to buy, how to execute the trade on a brokerage in Singapore, and how to deploy CPF or SRS funds to do it tax-efficiently. Whether you are investing for the first time or adding to an existing portfolio, the mechanics are simpler than most people assume.

What is the Straits Times Index (STI)?

The Straits Times Index is Singapore's headline equity benchmark — the equivalent of the S&P 500 for the United States or the Hang Seng for Hong Kong. It tracks the 30 largest companies listed on the Singapore Exchange (SGX), weighted by free-float market capitalisation, and is maintained jointly by FTSE Russell and SPH Media Trust. 

The index is rebalanced quarterly — in March, June, September, and December — meaning the list of 30 constituents can change if a company's market cap slips or a new entrant qualifies.

The STI represents roughly 75–80% of total SGX market capitalisation. That dominance means the index's performance is closely tied to Singapore's broader economic health — particularly its banking sector, which alone accounts for more than half the index.

Top STI constituents

The three local banks are the index's gravitational centre. Together, DBS, OCBC, and UOB account for approximately ~50% of the entire STI — a concentration that makes Singapore's benchmark highly sensitive to interest rate movements and regional credit cycles.

*Source: FTSE Russell, weight as at closing on 31 December 2025

Sector breakdown

The STI's sector tilt is both its strength and its limitation. Financials dominate — approximately 55–60% of the index sits in banks, insurers, and financial services. REITs and property contribute roughly 10–12%, telecoms around 5%, and industrials and conglomerates the rest.

*Source: FTSE Russell, weight as at closing on 31 December 2025

Understanding STI ETFs: ES3, G3B and GAB

Rather than buying all 30 STI stocks individually, you buy a single ETF that replicates the index. Three ETFs currently track the FTSE Straits Times Index on SGX — ES3, G3B, and GAB.

ES3 and G3B are both distributing — they pay out dividends as cash. GAB is accumulating — it retains dividends inside the fund and reflects them in the NAV, giving automatic compounding without any manual reinvestment. 

All three are managed by reputable institutions, Singapore-domiciled, and carry some of the lowest expense ratios available for Singapore equities.

ES3 – SPDR Straits Times Index ETF

ES3, managed by State Street Global Advisors Singapore, is the oldest and most liquid of the three STI ETFs. Launched in April 2002, it commands the largest AUM and the tightest spreads on SGX — a practical advantage when trading larger positions or when you want straightforward execution.

*Source: State Street / SGX fund factsheet

Why choose ES3? It is the default choice for most investors: longest track record, deepest liquidity, and a 0.28% TER. If you are deploying a large sum or want the most established STI vehicle, ES3 is the straightforward pick.

G3B – Amova Singapore STI ETF (S$D, Distributing)

G3B is managed by Amova Asset Management Asia Ltd (formerly Nikko Asset Management). It is the distributing share class of the Amova Singapore STI ETF, listed on SGX since February 2009. Like ES3, it pays semi-annual cash dividends and is fully CPFIS-OA and SRS eligible. Its TER is marginally lower than ES3.

*Source: Amova / SGX fund factsheet

Why choose G3B? Its 0.25% TER is the lowest among the distributing STI ETFs. Over a 20-year DCA horizon, even a 0.01% difference compounds meaningfully. Choose G3B if minimising ongoing cost is your priority and you prefer cash dividend payouts.

GAB – Amova Singapore STI ETF (S$A, Accumulating)

GAB is the accumulating share class of the same Amova Singapore STI ETF that underlies G3B — the same benchmark, the same portfolio, but a fundamentally different dividend treatment. Instead of paying cash dividends, GAB retains all distributions inside the fund and reflects them in the NAV. This means your investment compounds automatically: you never receive a dividend cheque, and you never need to manually reinvest. GAB listed on SGX in September 2025, making it the newest of the three.

*Source: Amova/ SGX factsheet

Why choose GAB? If you do not want to actively manage dividend reinvestment — and especially if you are in accumulation mode (not drawing income) — GAB's accumulating structure does the compounding for you. 

At a stated TER cap of 0.26%, it is also one of the cheapest of the three on paper. The main trade-off: GAB's short track record (listed Sep 2025) means spreads and liquidity data are limited.

Side-by-side comparison

How to buy STI ETFs in Singapore

Buying an STI ETF involves six steps: deciding your account type, opening a CDP account, choosing a brokerage, funding your account, placing the trade, and tracking your dividends. First-timers can complete the entire setup in under a week; if you already have a brokerage account, the trade itself takes minutes.

Step 1: Choose between a CDP-linked or custodian account

When you buy an STI ETF in SGX, your shares are held in one of two ways. 

• A CDP-linked account registers the units directly in your name at Singapore's Central Depository — you receive full shareholder rights, including AGM invitations and voting privileges, and all your holdings across different brokerages consolidated under a single CDP number. 
• A custodian account holds the units in the broker's nominee account on your behalf; legal ownership sits with the broker, though you retain the financial benefit. Custodian accounts typically carry lower minimum commissions and are the default structure for most digital brokers.

For long-term STI ETF investors who want clean ownership records and dividend auto-crediting to their bank via the Direct Crediting Service (DCS), a CDP-linked account is the conventional choice. Custodian accounts suit cost-sensitive investors comfortable with the nominee structure.

Step 2: Open a CDP account

The Central Depository (CDP) account is free to open and takes approximately 15 minutes online via the SGX website using Singpass MyInfo. You must meet three eligibility criteria: 

• you must be at least 18 years old; 
• you must not be an undischarged bankrupt; and 
• you must hold an account with one of the designated banks — DBS/POSB, OCBC, Citibank, HSBC, Maybank, UOB, or Standard Chartered — to enable the Direct Crediting Service, which automatically credits dividends and corporate actions to your bank account.

For Singapore Citizens and PRs applying via MyInfo, you will need your NRIC number (as your Tax Identification Number), your bank account details, and a scanned copy of your signature.

Foreign residents additionally need their country of tax residency and Tax Identification Number; US tax residents must also submit Form W-9. Once submitted, CDP sends a confirmation letter by post, after which you can link your account to any approved brokerage. Some brokerages will also handle the CDP application on your behalf — typically within 10 business days.

Step 3: Choose a brokerage

Your choice of account type (Step 1) determines which brokerages are available to you. CDP-linked accounts give you direct ownership and are standard for long-term SGX investors. Custodian accounts are offered by most digital brokers and typically carry lower minimum commissions, making them more cost-effective for smaller trades.

CDP-linked brokerages

Below are the main CDP-linked options for buying ES3, G3B, and GAB on SGX, ranked by minimum commission.

Source: StashAway, brokerage fee schedules as of January 2026. All SGX trades also incur a clearing fee of 0.0325% and an SGX access fee of 0.0075%, plus 9% GST on the brokerage commission.

Custodian account brokerages

Custodian brokerages hold your units in a nominee account. They tend to offer lower minimum commissions than CDP-linked alternatives — a meaningful cost saving when you are starting with small trade sizes. You will not receive full shareholder rights (no AGM invites, no voting), but for passive ETF investors who simply want low-cost market exposure, this trade-off is generally acceptable.

Source: StashAway, brokerage fee schedules as of January 2026. Custodian accounts for SGX-listed securities. SGX clearing (0.0325%) and access fees (0.0075%) still apply. Check each broker's platform for the latest rates.

Step 4: Fund your account

Transfer SGD to your brokerage via FAST or bank transfer — most accounts credit within minutes. For a first purchase of 1 lot of ES3 or G3B (100 shares), budget approximately S$330–380 depending on the current price, plus brokerage commission and SGX fees. There is no minimum balance requirement on the CDP account itself.

Step 5: Search for the ticker and place your order

On your brokerage platform, search for ES3 (SPDR STI ETF), G3B (Amova S$D, distributing), or GAB (Amova S$A, accumulating). SGX trades on weekdays from 9:00 AM to 5:00 PM Singapore time, with a pre-open session from 8:30 AM. STI ETFs are traded in board lots of 100 units. You have two order types:

•  Market order: executes immediately at the current best available price. Fast and certain, but you have no control over the exact fill price — use this when the spread is tight (typically 1–2 ticks for ES3 and G3B).

•  Limit order: you specify the maximum price you are willing to pay. The order sits in the queue until a seller matches your price. For ETFs with moderate liquidity, a limit order set 1–2 ticks above the last-done price typically fills within minutes during market hours — this is the recommended approach.

Step 6: Track settlement and dividends

After a successful trade, settlement occurs at T+2 — your ETF units appear in your CDP account two business days later. Dividends are credited automatically to your CDP-linked DCS bank account: both ES3 and G3B pay semi-annually (amounts not guaranteed). GAB does not distribute cash — dividends are retained in the NAV automatically. No action is required on your end.

Investing in STI ETFs through StashAway

Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. These platforms typically use ETFs to build diversified portfolios based on your risk profile.

A popular robo-advisory platform in Singapore, StashAway offers ETF Explorer, allowing users to explore and filter 80+ asset classes chosen for optimal value to create personalised portfolios based on their risk tolerance and investment goals. In less than one minute, users can go from idea to investment for a flat fee of $1 USD per transaction.

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Can you buy STI ETFs with CPF or SRS?

ES3 and G3B are both approved for CPF Investment Scheme (CPFIS-OA) and Supplementary Retirement Scheme (SRS) investments — a meaningful advantage over many global ETFs that are restricted to cash accounts only. GAB listed in September 2025 and its CPF/SRS eligibility status should be confirmed with your broker before investing.

Using CPF OA to invest in STI ETFs

Under the CPF Investment Scheme, you can invest your Ordinary Account (OA) savings in approved ETFs after setting aside a minimum S$20,000 in your OA. This floor is mandatory and cannot be invested — it is CPF's baseline protection for housing needs.

The mechanics: you open a CPFIS-OA investment account with an approved operator (DBS Vickers, OCBC Securities, or Phillip Securities), and your OA funds are used directly to purchase units of ES3 or G3B. There is no transfer of cash to a separate brokerage wallet — the transaction draws from CPF directly.

Using SRS to invest in STI ETFs

The Supplementary Retirement Scheme lets you contribute up to S$15,300 per year (Singapore Citizens and PRs) or S$35,700 (foreigners) from your own savings, receive a dollar-for-dollar tax deduction on contributions, and invest those funds in ETFs with all gains and dividends growing tax-deferred until withdrawal.

SRS withdrawals at retirement age (currently 63) are subject to a 50% concession — only half the amount withdrawn is added to assessable income, and spread over 10 years, most retirees pay minimal or zero tax. For a high-income earner in the 22% or 24% tax bracket, SRS contributions to STI ETFs deliver an immediate tax saving plus long-term equity compounding — a combination that is difficult to beat.

Both ETFs can be purchased through your SRS operator (DBS, OCBC, or UOB) using the same CDP + brokerage process described above.

How much does it cost to invest in STI ETFs?

STI ETFs rank among the cheapest equity investments available in Singapore — by a wide margin compared to unit trusts and actively managed funds. Here is what you will actually pay:

*GAB TER is Amova's stated cap intention; no separately audited figure available yet. Source: Amova, SGX, brokerage fee schedules as of early 2026.

Annual cost on a S$10,000 position - comparison

ES3: S$28/year in TER (0.28% p.a., deducted from NAV)

G3B: S$26/year in TER (0.26% p.a.)

GAB: ~S$25/year in TER (0.25% cap intention)

Two trades (buy + sell) via digital broker: ~S$5-10 for all three.

Total annual holding cost, buy-and-hold: ~S$26-38 (0.26 - 0.38% of investment).

Compare: typical unit trust at 1.5% p.a. = S$150/year on S$10,000 - 5x more expensive

Strategy: making your STI ETF investment work harder

A one-time lump-sum purchase is the simplest approach, but most long-term investors improve their outcomes through consistent, systematic investing.

Dollar-cost averaging (DCA) eliminates the timing problem. By investing a fixed amount at regular intervals — say S$500 every month — you automatically buy more units when prices are low and fewer when prices are high. Over years, this smooths your average entry price without requiring you to predict market direction.

Three platforms make DCA into STI ETFs straightforward:

•  DBS Invest-Saver — automatic monthly purchases of ES3 or G3B from S$100/month; commission 0.82% (cash) or 0.50% (SRS)

•  POEMS Regular Savings Plan — monthly investment from S$100 across CPF, SRS, or cash; commission 0.08–0.18%

•  OCBC Blue Chip Investment Plan — monthly STI ETF purchases from S$100/month; 0.30% commission

Dividend reinvestment is the second lever. At a 4% dividend yield on a S$10,000 position, you receive approximately S$400 per year. Manually reinvesting that into additional ETF units each time dividends arrive — rather than spending them — adds meaningful compounding over a 10–20 year horizon.

DCA over 10 years:

Monthly contribution: S$500

Total contributions over 10 years: S$60,000

Assumed total return: 7% p.a. annualised (dividends reinvested)

Portfolio value at year 10: approximately S$86,900

Gain above contributions: ~S$26,900 (44.8% above what you put in)

Tax implications of STI ETFs

Singapore's tax framework is unusually favourable for domestic equity investors — and STI ETFs sit in the most tax-efficient corner of that framework.

No capital gains tax. Singapore does not tax capital gains from equity investments. If you buy ES3 at S$3.00 and sell at S$4.50 after five years, the S$1.50 per share gain is yours to keep entirely. [Source: IRAS Capital Gains guidance, link needed]

No dividend withholding tax. All three ETFs — ES3, G3B, and GAB — are domiciled in Singapore and track Singapore-listed companies. Dividends from SGX-listed companies are paid from after-tax corporate profits, and Singapore does not impose a further withholding tax on these distributions for Singapore-resident investors. For GAB specifically, dividends are not distributed at all — they are retained within the fund's NAV — so the withholding tax question is moot.

Why Singapore domicile matters:

US-domiciled ETFs (e.g. SPY, VOO) impose 30% withholding tax on dividends for non-US investors.

Ireland domiciled ETFs (e.g. CSPX) reduce that to 15%.

STI ETFs (ES3, G3B): 0% withholding - the full dividend reaches you.

SRS tax efficiency (recap): contributions are tax-deductible; dividends and capital gains grow tax-deferred; withdrawals after retirement age are 50% exempt and spread over 10 years.

STI ETF vs individual Singapore bank stocks

Many investors wonder whether they should buy DBS, OCBC, and UOB individually rather than paying 0.30% in ETF fees. The trade-offs are real:

*Data as of early 2026. Bank dividend yields subject to payout policy changes.

The honest answer: many experienced Singapore investors hold both. Bank stocks for their higher dividend yield; the STI ETF for broader diversification that captures non-banking growth. An 80/20 or 70/30 split between individual banks and the ETF is a common portfolio construction approach.

Risks of investing in STI ETFs

STI ETFs carry real risks that deserve direct attention, not hedged disclaimers.

Banking sector concentration

When the three local banks sneeze, the STI catches a cold. DBS, OCBC, and UOB represent nearly half the index. A severe credit cycle, a property market correction in Singapore or Hong Kong, or a significant cut to dividends would depress the STI disproportionately relative to more diversified global indices.

Limited technology exposure

Singapore's market has negligible exposure to high-growth technology companies. The STI has structurally lagged the S&P 500 over the past decade in capital appreciation terms — and that gap is likely to persist as tech continues to dominate global equity returns. Investors seeking technology-driven growth need to look beyond the STI.

Interest rate sensitivity

Bank net interest margins — and therefore earnings and dividends — are positively correlated with interest rates. As global rates moderate in 2025–2026, the tailwind that drove banks to record profits in 2022–2024 is easing. The STI's near-term outlook is more muted than its 2024 performance might suggest.

SGD currency risk

The STI is denominated in SGD. For investors whose home currency is not SGD, exchange rate fluctuations add a layer of return volatility beyond the index's equity movements.

Frequently asked questions

Here are the questions most first-time STI ETF investors ask.

How much money do I need to start investing in the STI ETF?

The minimum is 1 lot (100 shares). At current ES3 prices of approximately S$3.30–3.50 per share, you need roughly S$330–350 plus brokerage commission. Some regular savings plans (DBS Invest-Saver, OCBC Blue Chip Investment Plan) allow you to start from S$100/month with fractional lots.

ES3, G3B or GAB — which should I choose?

All three track the same 30-company FTSE STI index. ES3 (0.28% TER) is the oldest and most liquid — the safe default for most investors. G3B (0.26% TER) is marginally cheaper and pays semi-annual cash dividends, like ES3. GAB (0.25% TER cap) is the accumulating share class of the same Amova fund as G3B — it pays no cash dividends but reinvests them automatically in the NAV, making it ideal for investors in accumulation mode who want hands-off compounding. GAB only listed in September 2025, so its track record and liquidity are limited — verify CPF/SRS eligibility before investing.

Can I use my CPF to buy STI ETFs?

Yes for ES3 and G3B — both are CPFIS-OA approved. You must maintain a minimum S$20,000 in your OA before investing any surplus; CPF SA funds cannot be used for ETFs (OA only). For GAB (listed Sep 2025), verify CPFIS eligibility with your broker as its approval status may not yet be confirmed. [Source: CPF Board, link needed]

Do I pay tax on STI ETF dividends?

No. Singapore-resident investors pay zero withholding tax on dividends from Singapore-domiciled ETFs like ES3 and G3B. For GAB, no dividends are distributed at all — they are retained within the NAV — so the question does not arise. There is also no capital gains tax on profits from selling any of the three ETF's units.

What happens to my ETF units if the fund manager closes down?

ETF units are held in your CDP account — separate from the fund manager's balance sheet. If State Street (ES3) or Amova Asset Management Asia (G3B/GAB) were to wind down their Singapore operations, your units would either be transferred to another manager or redeemed at NAV. Your investment is not at risk from fund manager insolvency.

Should I buy the STI ETF as a lump sum or through regular savings?

Both work. Lump-sum investing is statistically superior in rising markets — you capture returns sooner. Regular DCA reduces timing risk and suits investors who want to smooth out market volatility. If you are starting with a large amount and concerned about timing, a 3–6 month spread is a reasonable compromise.

Can foreigners and PRs in Singapore buy STI ETFs?

Yes. SGX accounts are open to permanent residents and eligible foreigners. They can also contribute to SRS accounts (up to S$35,700/year) and invest in ETFs through that structure. The tax treatment of dividends and gains is the same as for Singapore Citizens.

Bottom line

Three SGX-listed ETFs now give you full exposure to Singapore's 30 largest blue-chips: ES3 if you want the deepest liquidity and longest track record; G3B if you want marginally lower ongoing cost with semi-annual cash income; GAB if you want automatic compounding without ever touching a dividend. All are Singapore-domiciled — zero withholding tax on distributions, zero capital gains tax on profits — and ES3 and G3B are both CPFIS-OA and SRS eligible. The mechanics are straightforward: open a CDP and brokerage account, buy in minimum board lots, and let the index do the work.

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