You might be wondering, how is that possible? Weren’t the STI Index gains of 18% dwarfed by the S&P 500’s 25% rise? But it’s true, especially if you’re a Singaporean investor. That’s because we earn in USD but spend in SGD for our living costs here. And that means forex differences matter. Here’s the math: Investor 1: Buys into Singapore Imagine Investor 1, a Singaporean who decides to buy the NikkoAM STI ETF (G3B) during April’s ultimate low. He buys 2,891 shares of NikkoAM STI ETF at $3.46 each on 9 April, with a total capital of SGD 10,002.86. He then sells his shares at $4.12 on 8 July, after having collected $0.0917 in dividends per share in July. The total cash back in his pocket? $11,910.92 + $265.10 in dividends = $12,176. Result = $2,173.16 or 21.7% profit. Investor 2: Chooses the S&P 500 Now imagine Investor…
