Are you based in Singapore? Tired of meagre profits and thinking of dabbling your luck in better Stock Market options? What better option than investing in S&P 500?
Standard & Poor's 500, or simply, S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the U.S.
Furthermore, it is also the most commonly followed index with a market cap of 33.4 Trillion USD (Dec 2020). Hotshot companies like Tesla, Apple, Johnson and Johnson are among its top 10 performers.
Similar to the other indices managed by S&P Dow Jones Indices, it is free-float capitalisation based but is in stark contrast to Russell 1000 which is strictly rule-based.
The components of the S&P 500 index are selected by a committee based on eight primary criteria:
Now, on to modes of investment.
These are more costly in Singapore and are not widely available (accessible only via select brokerages from Singapore). Their cost depends on the additional charges incurred when buying an MF.
As of Sept 2020, extra charges included:
The main MF available to Singaporeans is the Infinity U.S. 500 Stock Index Fund managed by Lion Global Investors.
The cheaper, widely accessible, popular option to invest in stocks.
Firstly, choose the specific S&P 500 in which you wish to invest. There are plenty!
Thereafter, one needs to consider 3 things prior to investing:
Furthermore, the ETFs are available via various traders in the SGX (SPDR S & P 500 [S27]), NYSE (VOO, IVV, SPY), and UCITS/ LSE (VUSA, VUAA, etc).
To conclude, whichever option you choose to go with, the investment should always be done considering the weightage of the firm and careful comparison of the:
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