S&P 500 vs Nasdaq-100 vs Dow Jones: Key Differences Explained

The S&P 500, the Nasdaq-100, and the Dow Jones Industrial Average (DJIA) are the three flagship benchmarks of the U.S. stock market, each representing a different slice of the American economy. 

The S&P 500 reflects the broad market of 500 large-cap companies across all major sectors. The Nasdaq-100 focuses on the largest non-financial companies listed on the Nasdaq exchange, heavily tilted toward technology and growth. Meanwhile, the Dow Jones Industrial Average tracks 30 of the biggest and most established U.S. blue-chip firms, offering a more concentrated, price-weighted view of corporate America.

Over the five years leading up to the first half of 2025, their growth tells the story clearly: the S&P 500 is up roughly 54 %, the Nasdaq-100 has surged over 85 %, and the Dow has gained about 43 %. 

These differences in performance reflect not only sector composition but also underlying risk profiles—making it vital for investors to choose the right index to match their goals, whether they’re growing CPF-OA funds, building SRS portfolios, or simply diversifying beyond local assets.

US indices quick overview

Data as of 27 June 2025

What is a stock market index?

Think of a stock market index as a scorecard for a specific slice of the market. According to S&P Global, it’s a “statistical measure of change in a securities market.” In simple terms, an index bundles together a group of stocks to provide a single number that represents their collective performance.

Instead of tracking hundreds or even thousands of individual company prices, investors can look at an index’s level to gauge the overall health, trend, and sentiment of a market segment. For example, the S&P 500 reflects the average performance of 500 of the largest U.S. companies, while the Nasdaq-100 focuses on the biggest non-financial firms listed on the Nasdaq exchange, with a heavy tilt toward technology.

These indices serve as benchmarks—yardsticks that both professional fund managers and individual investors use to measure the success of their own strategies. If a portfolio delivers returns that beat its chosen index, that’s generally seen as outperformance. If it lags, it suggests the investor might have been better off simply tracking the index itself.

Ultimately, stock market indices simplify an overwhelming sea of data into a single, understandable measure—helping investors see not just where the market is, but where 

S&P 500 overview

The S&P 500 is widely considered the benchmark for U.S. equities—and, by extension, a proxy for global risk appetite. It tracks the performance of 500 of the largest publicly listed U.S. companies, offering investors exposure to the breadth and depth of the American economy. But behind its familiar ticker lies a carefully engineered portfolio shaped by strict rules, sector dynamics, and the sheer weight of corporate giants.

Index characteristics

• Number of constituents: 504 (as of May 30, 2025)
• Total index market cap: US $52.6 trillion
• Largest constituent weight: 6.8 %
• Top 10 constituents combined weight: 35.8 %
• Median market cap: US $35.7 billion
• Smallest constituent: US $153 million
• Largest constituent: US $3.42 trillion

The index is float-adjusted and market-cap-weighted, meaning companies with higher free-float market capitalisations exert more influence on index movements. This ensures the S&P 500 reflects where investor dollars actually go—not just equal slices of 500 names.

Composition and weighting

The index employs a free-float, market-capitalisation-weighted methodology, meaning companies with larger market values have greater sway over daily moves. This weighting approach ensures the index reflects where investor dollars actually flow.

As of June 2025, the top 10 holdings vividly demonstrate this concentration of market power:

Source: slickcharts.com, as of 27 June 2025

Combined, these ten companies account for about ~36 % of the entire index—highlighting just how much “big tech plus big brand” shapes the S&P 500’s daily swings.

This concentration can deliver outsized gains when mega-cap tech outperforms, but it also means that index investors carry significant exposure to the fortunes of a small set of dominant firms. 

For this reason, even passive investors need to be aware of what’s inside the index they track—because buying the S&P 500 isn’t the same as buying “the entire market” equally, but rather a carefully weighted slice tilted toward the giants of corporate America.

Sector breakdown

Despite that top-heavy tilt, the S&P 500 still covers all 11 GICS sectors, providing a broad snapshot of the U.S. economy. As of May 30, 2025, the sector weights highlight just how tech-heavy the market has become:

Source: S&P Global GICS® sectors, as of May 30 2025.

Together, information technology, financials, consumer discretionary, and communication services account for around 66 % of total index weight. This broad yet uneven distribution helps smooth out sector-specific shocks while still capturing the key drivers of the U.S. economy.

Selection criteria

S&P 500 is a carefully curated benchmark designed to represent the largest, most liquid, and financially sound U.S. equities. Inclusion isn’t automatic—it depends on meeting a series of rigorous, transparent criteria, updated regularly to keep pace with market changes.

Market capitalisation requirements

• Minimum unadjusted market cap of US $20.5 billion, raised in 2025 to reflect market growth.
• At least 50 % of that must be in free float, meaning shares available for public trading.
• This threshold targets companies in the top 85th percentile of the U.S. equity market.

Earnings requirements

• Must show positive GAAP earnings in the most recent quarter plus the sum of the prior four quarters.

Liquidity and trading volume

• Float-adjusted liquidity ratio of at least 0.75.
• Minimum average daily volume of 250,000 shares over the prior six months.
• Annual dollar value traded relative to market cap must exceed 0.75.

Exchange listing rules

• Companies must be listed on an eligible U.S. exchange like the NYSE (including Arca or American), NASDAQ (all tiers), or CBOE markets.

U.S. domicile and public float

• Must be classified as a U.S. company with primary business operations in the U.S.
• At least 10 % of shares must be publicly floated to ensure sufficient liquidity and tradability.

Certain securities are never eligible, including:

• Limited partnerships, MLPs
• Closed-end funds, ETFs, ETNs
• Royalty trusts, tracking stocks
• Preferred stock, convertible bonds
• ADRs and non-U.S. listings

Committee oversight and discretion

• The index isn’t purely rules-based: a dedicated committee reviews all additions and deletions.
• The committee considers sector balance, industry leadership, and market representativeness.

Ongoing maintenance

• The S&P 500 has no set rebalancing date. Changes happen as needed, usually announced with at least three business days’ notice.
• Importantly, these criteria apply only to new additions. Existing members aren’t automatically dropped if they temporarily slip below thresholds, helping reduce unnecessary turnover..

S&P 500 index recalibration

The S&P 500 doesn’t follow a rigid quarterly overhaul. Instead, it recalibrates continuously and as needed, with changes made throughout the year to keep pace with corporate actions and market shifts. 

Managed by the S&P Dow Jones Indices Committee, the index is reviewed monthly, but additions and deletions can occur at any time—reflecting mergers, acquisitions, bankruptcies, or companies newly meeting eligibility criteria.

Historically, about 90 % of constituent changes happen outside traditional quarterly dates, averaging around 27 changes per year. Quarterly reviews in March, June, September, and December primarily handle technical updates like share count and float adjustments, rather than wholesale rebalances.

While the index holds scheduled quarterly reviews each March, June, September, and December, these are primarily for technical maintenance—adjusting share counts or float weights. They rarely result in wholesale changes. Notably, the June 2025 quarterly review saw no constituent changes, despite analyst speculation that firms like Robinhood could be added.

Here’s a snapshot of S&P 500 additions in 2025 (as of June 9):

And the removals over the same period:

Nasdaq-100 overview

The Nasdaq-100 is one of the world’s most closely followed equity indices, widely seen as the definitive benchmark for U.S. technology and growth stocks. Unlike broad-market indices, it specifically tracks 100 of the largest non-financial companies listed on the Nasdaq exchange, providing concentrated exposure to America’s most innovative and disruptive businesses.

Behind its familiar name lies a carefully engineered index, shaped by strict eligibility criteria, a modified market-cap-weighting approach, and a deep emphasis on technology and consumer-driven growth.

Index characteristics

• Number of securities: 101 (representing 100 companies with some dual share classes)
• Index weighting: Modified market-capitalisation weighted to reduce over-concentration
• Excludes: All financial industry companies (e.g. banks, insurers)
• Launch date: 1985
• Historical performance: Outperformed broad-market benchmarks over many periods, with ETFs like Invesco QQQ beating the S&P 500 in 7 of the last 10 years as of early 2025

This focus on large-cap, non-financial Nasdaq listings has made the Nasdaq-100 the go-to measure for investors seeking targeted exposure to technology-driven growth.

Composition and weighting

Unlike the S&P 500’s straightforward cap-weighting, the Nasdaq-100 uses a modified market-capitalisation methodology designed to reduce excessive concentration in any single name.

Key weighting constraints:

• No single company can exceed 24 % of index weight.
• Companies above 4.5 % weight collectively can’t exceed 48 % of the index.

This two-step approach ensures the index remains investable while still representing real market leadership.

Top 10 companies (approx. June 2025):

Source: slickcharts.com, as of 27 June 2025)

Combined, these ten names represent about 68 % of the entire index—highlighting the strong tech bias that defines the Nasdaq-100’s character.

Sector breakdown

The Nasdaq-100 is famously tech-heavy, with sector allocations that make it much more concentrated than broad indices like the S&P 500.

Source: invesco QQQ, as of 31 Mar 2025)

This composition delivers high-growth potential but also comes with greater volatility, given its reliance on technology and consumer trends.

Selection criteria

The Nasdaq-100 is a carefully constructed benchmark designed to represent the largest, most liquid, and most innovative non-financial companies listed on the Nasdaq exchange. Inclusion isn’t automatic—it depends on meeting a series of strict, transparent criteria that focus on liquidity, size, industry exclusions, and market accessibility.

Exchange listing requirements

• Companies must have their primary U.S. listing on the Nasdaq Global Select Market or Nasdaq Global Market.
• Dual listings on other U.S. exchanges are generally not allowed, except for those established before January 1, 2004, and continuously maintained since.
• Excluded securities include SPACs before business combination, “when-issued” securities, and other non-standard instruments.

Industry exclusions

• Financial industry companies are completely excluded under the Industry Classification Benchmark (ICB).
• No banks, insurance firms, brokerages, or mortgage companies are permitted.
• Real estate companies are eligible unless structured as REITs.

Market capitalisation ranking

• There is no fixed minimum or maximum market-cap threshold.
• Instead, inclusion is based on ranking by float-adjusted market capitalisation.
• The annual reconstitution process ranks companies to select the largest 100 eligible non-financial Nasdaq-listed firms.
• Multi-class share structures are permitted, with company weighting based on combined market value of all eligible share classes.

Liquidity requirements

• Companies must meet a minimum three-month average daily traded value of $5 million USD.
• This dollar-based threshold replaced the older share-volume rule to ensure consistent liquidity standards across a wide range of stock prices.
• The requirement ensures all index members are highly tradable and investable for large institutional funds.

Seasoning requirements

• Securities must be listed and trading for at least three full calendar months on Nasdaq.
• For the December annual reconstitution, companies must be listed by the last business day of August.
• SPAC trading history prior to business combination does not count toward seasoning.

Free float requirements

• Companies must maintain at least 10 % of shares in free float.
• This ensures adequate public ownership and replicability for index-tracking funds.

Corporate governance and reporting

• Companies must not be in bankruptcy proceedings.
• No definitive agreements for acquisition, delisting, or other structural changes that would make them ineligible.
• Must be current with SEC quarterly and annual reporting requirements.
• Financial statements must have valid audit opinions.

Nasdaq-100 Index recalibration

The Nasdaq-100’s primary recalibration happens annually in December, when the entire index is reconstituted to reflect updated market capitalisations and eligibility.

Annual reconstitution process:

• Reference date: Last trading day of November.
• Announcement: Second Friday of December.
• Effective date: Third Friday of December.

Method:

• Top 75 companies automatically included.
• Current members ranked 76–100 retained.
• Members ranked 101–125 may stay if they were in the top 100 last year.
• New positions filled by highest-ranked non-members.

Quarterly rebalancing also occurs in March, June, September, and December. These reviews focus on share-count adjustments and ensuring compliance with weighting constraints (24 % single-company cap; 48 % aggregate cap for large constituents).

Special rebalancing can be triggered if weights breach caps outside scheduled dates. Historically, these are rare but effective tools to maintain balance—most recently used in July 2023 to address concentration among mega-cap tech stocks.

Dow Jones Industrial Average overview

The Dow Jones Industrial Average (DJIA) is one of the world’s most iconic stock indices—a long-established barometer of American economic health. Unlike modern market-cap weighted benchmarks, the Dow offers a curated, price-weighted snapshot of 30 of America’s most prominent and enduring companies.

Index characteristics

• Number of constituents: 30
• Weighting methodology: Price-weighted, not market-cap weighted
• First published: 1896 with 12 companies; expanded to 30 in 1928
• Current divisor (as of late 2024): ~0.1627
• Index level movement: Every $1 change in a component’s share price moves the index by ~6.15 points

The DJIA’s price-weighted design means companies with higher stock prices exert more influence on index moves, regardless of market capitalisation. This legacy structure maintains continuity with the index’s history while still adapting to modern corporate dynamics.

Composition and weighting

The Dow’s composition is deliberately selective, focusing on companies with broad investor appeal, strong reputations, and sustained earnings power. Unlike market-cap indices, stock price alone drives weight, producing a unique hierarchy:

Top 10 Weighted Components:

Source: slickcharts.com, as of 27 June 2025

Combined, these top 10 account for over 54 % of the entire index weight, underscoring the outsized impact of high-priced stocks in the Dow’s methodology.

Selection criteria

The DJIA is a carefully curated benchmark. Unlike purely quantitative indices, it relies on a qualitative committee-driven process to ensure only America’s most important companies are included.

Key requirements:

• U.S. incorporation and headquarters. Constituents must be American companies.
• Strong reputation. Companies need to be well-established, financially sound, and widely followed by investors.
• Consistent earnings and growth. Members should show sustained profitability and robust business models.
• Broad investor appeal. Companies must attract significant institutional and retail interest.
• Sector balance. The committee actively manages the index to avoid over-concentration in any industry and ensure broad economic representation.
• Stock price consideration. A guideline suggests the highest-priced stock should not exceed about 10 times the lowest, preserving index stability in its price-weighted system.
• Listing requirement. Companies must be listed on major U.S. exchanges, specifically the NYSE or NASDAQ.

These criteria reflect the blue-chip character of the Dow, aiming to capture firms that are not only large and liquid but also symbolic of American industrial and corporate leadership.

Dow Jones index recalibration

Unlike indices with rigid rebalancing dates, the Dow recalibrates on an as-needed basis.

Ongoing maintenance details:

• Changes are not scheduled quarterly but occur in response to corporate events (e.g. mergers, bankruptcies, spin-offs) or evolving market dynamics.
• The Averages Committee—composed of members from S&P Dow Jones Indices and The Wall Street Journal—meets regularly to evaluate the index composition.
• Historical turnover has been low, averaging fewer than one change per year since 1929, preserving index stability.
• Recent updates highlight its adaptability, such as Amazon joining in 2024, NVIDIA replacing Intel, and Sherwin-Williams replacing Dow Inc.
• Changes are typically announced 1–5 days before they take effect, giving markets time to adjust.
• The Dow Divisor is adjusted continuously to maintain index continuity despite stock splits, dividends, or structural corporate changes.

This committee-driven, adaptive approach ensures the Dow Jones Industrial Average remains relevant, stable, and trusted, balancing historic legacy with modern economic realities to serve as the enduring gauge of American corporate health.

What is Dow Divisor

The Dow Jones Industrial Average (DJIA) is unique among major stock indices for its price-weighted methodology, which relies on the Dow Divisor to maintain consistency over time. 

Unlike the S&P 500, which reflects the combined market capitalisation of its constituents, the DJIA is calculated by adding up the stock prices of its 30 component companies and dividing by the Dow Divisor.

This divisor is a carefully maintained constant that adjusts for corporate actions such as stock splits, spin-offs, and special dividends. Without it, routine corporate changes would create artificial swings in the index that don't reflect real market movement. For example, if a company in the index executes a 2-for-1 stock split, its share price would halve overnight, incorrectly pulling the Dow down if the divisor weren’t adjusted. By recalibrating the divisor in these cases, the index value remains consistent, isolating real price movements from technical corporate actions.

As of 2024, the Dow Divisor is approximately 0.15265312230608. This small value has the effect of magnifying changes in component stock prices: a $1 move in any single component results in about a 6.55-point move in the overall index. This structure means that high-priced stocks carry more weight in driving the DJIA’s movements, regardless of the company’s total market capitalisation.

Ultimately, the Dow Divisor ensures the index remains comparable and meaningful across decades of corporate evolution, mergers, splits, and economic change. It preserves the DJIA’s role as a reliable, long-term barometer of the U.S. economy, reflecting the collective performance of 30 of America’s most prominent and enduring companies in a simple, consistent, and historically rooted calculation.

The different weighting rules explained

Price performance & volatility

Source: Curvo

Recent years highlight sharp differences in performance and risk among the Dow Jones, S&P 500, and Nasdaq-100. In 2023, for example, the Nasdaq-100 soared 55 %, while the S&P 500 gained 26 % and the Dow rose 16 %. Yet in 2022, tech’s downside was clear: the Nasdaq-100 fell –33 %, much worse than the S&P 500’s –18 % or the Dow’s –7 %.

These swings reflect sector concentration. The Nasdaq-100 is heavily tilted toward technology—often over 55 – 60 %—plus large allocations to consumer discretionary and communication services. This focus delivers strong upside in growth markets but exposes investors to sharper corrections.

The S&P 500, while tech-heavy, remains more balanced across all 11 GICS sectors, typically with ~30 – 33 % in technology and meaningful weights in financials, health care, and industrials. The Dow’s 30-stock, price-weighted design ensures sector diversity by committee oversight, keeping individual sectors like technology or financials usually capped around 20 – 25 %, offering a steadier, blue-chip profile with less volatility overall.

How to buy the S&P 500, Nasdaq-100, and Dow Jones from Singapore

For Singapore investors eyeing the world’s most watched indices—the S&P 500, Nasdaq-100, and Dow Jones Industrial Average—there are three main ways to gain exposure. Each comes with distinct trading features, tax implications, and cost considerations that can shape your long-term returns.

1. NYSE-listed ETFs

The most direct approach is to buy the big-name ETFs exactly where they originated: on U.S. exchanges. 

These are among the world’s largest, most liquid ETFs, with daily trading volumes in the billions of dollars. That liquidity translates to ultra-tight bid–ask spreads—often just 1 cent.

Pros:

• Lowest trading costs and best pricing transparency.
• Access to options markets for hedging or income strategies.
• Widely supported by international brokers like Interactive Brokers, Saxo, moomoo, Tiger, and DBS Vickers.

Cons:

• You’ll need to trade in USD, so FX conversion costs apply.
• Dividends face a 30 % U.S. withholding tax.
• Non-U.S. residents are subject to U.S. estate tax on assets above US$60,000—potentially exposing your heirs to up to 40 % taxation on your holdings.

For many sophisticated investors, the liquidity and simplicity of buying the “original” ETFs outweigh these tax frictions—but it pays to know the rules before committing.

2. SGX cross-listings

Singapore’s stock exchange offers a local alternative: cross-listed versions of these major U.S. ETFs.

• S27 is the SGX listing of the SPDR S&P 500 ETF Trust (SPY).
• D07 is the local ticker for the SPDR Dow Jones Industrial Average ETF Trust (DIA).
• There is no Nasdaq-100 ETF listed on SGX.

These SGX tickers represent the same U.S.-domiciled funds—they’re not new funds created in Singapore, but local trading channels for the exact same underlying assets.

Advantages:

• Trades in SGD during normal Singapore hours (9:00 am–5:00 pm SGT).
• Settles via CDP, making it easy to hold in local broker accounts.
• S27 is CPF-OA approved, making it one of the few ways to get S&P 500 exposure with CPF money (subject to the 35 % foreign-equity limit).

Limitations:

• Despite local trading, they remain U.S.-domiciled. This means 30 % withholding tax on dividends and exposure to U.S. estate tax.
• Liquidity on SGX is much thinner than on NYSE. While S27 averages decent volume (around S$4–6 million daily), spreads can widen during quiet sessions, and D07’s turnover is even lower.
• No SGX-listed Nasdaq-100 fund currently exists, leaving local daytime investors without a convenient Nasdaq tracker.

In short, SGX cross-listings offer Singapore-dollar pricing and CDP settlement convenience but do not avoid the U.S. tax regime.

3. Tax-optimised option: Ireland-domiciled UCITS ETFs

For investors focused on maximising after-tax yield and simplifying estate planning, the best option often lies in Ireland-domiciled UCITS ETFs. These funds are listed on European exchanges like the London Stock Exchange (LSE) and are designed specifically for non-U.S. investors.

Examples include:

• CSPX (iShares Core S&P 500 UCITS ETF)
• VUSA (Vanguard S&P 500 UCITS ETF)
• CNDX (iShares Nasdaq-100 UCITS ETF)
• CIND  (iShares Dow Jones Industrial Average UCITS ETF)

Benefits:

• 15 % dividend withholding tax (thanks to the U.S.–Ireland tax treaty), instead of 30 %.
• No exposure to U.S. estate tax—these funds are considered Irish-situs assets.
• Available via brokers with LSE access (IBKR, Saxo, FSMOne, Endowus).

Considerations:

• Trades are in USD, GBP, or EUR, with FX conversion required.
• Some UCITS versions may have higher total expense ratios (e.g., 0.15–0.20 %) than their U.S. cousins.
• Trading volumes are generally lower than NYSE but still substantial enough for most investors.

Tax considerations at a glance

Where to buy the S&P 500, Nasdaq-100, and Dow Jones from Singapore

Once you know how to invest in the S&P 500, Nasdaq-100, or Dow Jones, the next question is where to buy them in Singapore. Investors here typically choose between traditional brokerages, robo-advisors, and regular savings plans (RSPs), each with its own strengths and trade-offs.

1. Traditional brokerages

Brokerages offer direct access to US-listed ETFs like SPY, QQQ, and DIA, as well as Irish-domiciled ETFs such as CSPX or CNDX for better tax efficiency. They're best for investors wanting full control over timing, choice of ETF, and costs.

2. Robo-advisors

Robo-advisors simplify investing with automated portfolios that include broad US market exposure through diversified ETFs. They’re ideal for investors wanting hands-off management, regular rebalancing, and professional oversight.

3. Regular savings plans (RSPs) and mutual funds

RSPs make dollar-cost averaging easy for retail investors wanting systematic exposure to US markets, often with low monthly minimums and no need for active management.

Frequently asked questions (FAQs)

Why do multiple ETFs track the same index? Competition among issuers benefits investors. Major providers like State Street (SPY), Vanguard (VOO), and BlackRock (IVV) offer S&P 500 ETFs with varying fee structures, trading volumes, and features to attract different investors. This competition helps drive fees lower over time—SPY’s expense ratio is 0.0945%, while VOO and IVV both offer 0.03%.

How do these ETFs differ if they track the same index?

While they aim to replicate the same benchmark, they differ in cost, fund structure, liquidity, and operational efficiency. SPY’s older Unit Investment Trust (UIT) format has restrictions on dividend reinvestment and cash management, whereas VOO and IVV use modern Registered Investment Company (RIC) structures that allow more flexibility and securities lending to offset costs. Liquidity also varies: SPY is highly traded with minimal spreads, making it a favourite for institutional traders.

What about Nasdaq-100 ETFs?

Investors can choose between QQQ (0.20% expense ratio) for maximum liquidity and trading volume, and cheaper alternatives like QQQM (0.15%) that are aimed at buy-and-hold investors willing to trade off a little liquidity for lower costs.

Why consider Irish-domiciled ETFs over US-domiciled ETFs?

For Singapore investors, Irish-domiciled ETFs like CSPX or CNDX are more tax-efficient. They benefit from the US-Ireland tax treaty, reducing dividend withholding tax from 30% to 15%. Crucially, they also avoid US estate tax exposure, which can reach 40% on assets above US$60,000.

How big is the tax difference in practice?

For a S$100,000 portfolio yielding 2%, the annual dividend withholding tax is about S$600 with US-domiciled ETFs (30% tax) versus S$300 with Irish-domiciled ones (15% tax). Over decades of compounding, that tax saving can significantly increase net returns.

Can I buy Irish-domiciled ETFs from any brokerage?

No. Only platforms with London Stock Exchange access, such as Interactive Brokers and Saxo Markets, offer these ETFs. Popular retail brokers like Moomoo and Tiger Brokers generally limit you to US-listed ETFs.

What’s the difference between distributing and accumulating ETFs?

US-listed ETFs distribute dividends in cash quarterly. Many Irish-domiciled ETFs come in accumulating versions (like CSPX) that automatically reinvest dividends, making them tax-efficient and simpler for long-term compounding without reinvestment effort.

What are the risks with US estate tax?

Non-US investors holding more than US$60,000 in US-situs assets (including US-domiciled ETFs) may be subject to up to 40% estate tax upon death. Irish-domiciled ETFs avoid this exposure entirely, making them better for estate planning.

Why does liquidity matter when choosing ETFs?

Highly traded ETFs like SPY and QQQ have minimal bid-ask spreads and large daily volumes, reducing trading costs for large or frequent trades. Long-term investors who buy and hold may prioritise low expense ratios over intraday liquidity.

Are CPF and SRS funds eligible for investing in US indices?

Yes, but usually via Singapore-domiciled unit trusts rather than direct ETFs. 

Is cost the only thing that matters?

No. Taxes, platform reliability, customer support, ease of use, and access to desired ETFs all matter. For long-term investors, tax efficiency—like the 15% vs. 30% withholding tax difference—often outweighs small differences in headline fees.