Mutual funds top holdings are all ETF I already share in the other thread and I have invested already. Pay $100 buy so many ETF good except for expense ratio. But those I find are from FSM Spore, dollarDex, poems. I find FSM Msia choices limited hope they increase their fund offering to benefit Msian investors

Yes it is like pay $100 buy into many stocks. But index tracking ETF got flaws. If all stocks in the index fare badly, then the ETF share price will drop (KWEB ETF saga in SA thread is classic example). Such passive index tracking ETF die die must buy stocks that is in the index. But mutual funds got fund managers they can siam like buy stocks not in the index etc but they ask for more monies hence expense ratio higher in mutual fund.

Active non-index tracking ETF starting to gain traction but since active expense ratio slowly creeping up. I will not be surprised soon they hit 1%

THEmactic have the same risks as well

Only thing to do is to check the tracking error against the index

Good promotion pity FSM Spore don't have. But wondering UT investor have you all think of also diversify into ETF? SA, Syfe and Bogleheads a lot of ETF supporters for low fees basically. It doesn't hurt to diversify your investment instrument to include ETF. I understand some investors have reservation of using overseas broker like IBKR so prefer to keep to local brokers for own personal reason.

FSM Spore has a unique ETF RSP program which I am not sure why FSM Msia don't have. In this ETF RSP, you pay very low fees less than $1 for my case to DCA the ETF you want based on a list of ETF in their approved program. The reason ETF investors using IBKR is the low 35 cents fee else I doubt they go for IBKR and DCA every month more which include forex exchange incurred etc.

ETF need not be just US centric it can be SGX,HKEX centric for those more comfortable with Asian market ETF for which I am. So UT investors time to consider ETF too. For Asian market ETF IBKR is not really that cheap which is why when ETF investor mention they use IBKR highly likely they only go for US listed ETF. For Asian ETF there are more other alternative.

And let me repeat again, despite the ETF supporters for low fees and better performance, let me confidently say there are UT annualized return which is comparable to ETF. If ETF is so good, they would have made UT disappear in the investing arena but it is not. Hence to reap the best of both worlds is to invest in both instruments.

I have since late last year. But strictly SGX,HKEX ETF no US ETF as those are expensive in FSM ETF RSP. You have to know if you go for the ETF RSP aka regular savings plan there are limitations as you are not DIY buy,sell from the stock exchange. I believe they consolidate everyone monies and buy,sell bulk order else how to explain I only need to pay less than 1 dollar fee for each buy fee?

Limitations
1. Can only buy once a month cutoff at 8th of each month
2. Can only sell once a month cutoff at 15th of each month. If you want to DIY sell (timing the market for e.g) those that are bought via RSP you go by their comm fee of XXX dollars very expensive
3. Only a list of approved ETF are offered in their RSP program so if you fancy some ETF and not in the list you cannot use this RSP. You need to DIY buy from market again at XXX dollars very expensive

This ETF RSP only good for really buy and hold investors (those looking to time in and out market no good due to limitations above). Minimum 50 for DCA amount but for some like Gold ETF it is 300.

E.g of HKEX fees
Exchange Settlement Fee(0.00400%) SGD 0.87
Exchange Stamp Duty(0.13000%) SGD 0.00
Exchange Trading Fee(0.00500%) SGD 0.01
Exchange Transaction Levy (FRC)(0.00015%) SGD 0.00
Exchange Transaction Levy (SFC)(0.00270%) SGD 0.00
Processing Fee (0.0%) SGD 0.00 (aka FSM processing fee)
Total Fees SGD 0.88

E.g of SGX fees
Exchange Clearing Fee(0.03250%) SGD 0.03
Exchange Settlement Instruction Fee SGD 0.37
Exchange Trading Fee(0.00750%) SGD 0.01
Processing Fee (0.0%) SGD 0.00 (aka FSM processing fee)
Total Fees SGD 0.41

Looking at so many fees levied by the respective SGX,HKEX stock exchanges for each buy,sell transaction I can roughly understand why even IBKR unable to offer 35 cents yet. Even Tiger, moo also cannot so we wait for one good broker can offer 35 cents for SGX,HKEX.

To share just got my first HKEX ETF dividend via FSM Spore ETF RSP. It has no tax just like S-Reit stocks. But unlike UT where one can choose to take or reinvest dividend there is no such option. Second the dividend will be in HKD and no auto conversion into your country currency. If you want need to manually convert using FSM currency converter subject to the rate that time.

Now in FSM I have two other currencies besides own SGD. CNH for China UT dividend and HKD for HKEX ETF dividend. The ETF I have is ChinaAMC HK banks (3143) which explain why got dividends. Most other HKEX ETF don't have dividend.

China stocks,ETF,UT are severely beaten at this point in time and most investors have stop DCA or going in so a little dividends during this waiting period give some warm feeling.

I hope FSM Msia to come out the ETF RSP soon just like FSM Spore. There is a demand definitely else the 0% FSM processing fee would not have extended one more year. Most investors are after SGX HKEX ETF. US ETF few takers since cheaper alternative is out there unless one prefer local broker over overseas broker.

So far there is 3 I know of
1. NikkoAM-StraitsTrading Asia ex Japan REIT ETF SGX CFA
2. CSOP iEdge S-REIT Leaders Index ETF SGX SRT
3. UOB APAC Green REIT ETF SGD Class Units SGX GRN

All three is inside FSM ETF RSP. I think there maybe some overlap in the stocks. 1 has the longest history and 2,3 are pretty new. Between 2 and 3 I pick 2 reason I don't believe in all these new trend green esg etc. Such mandate actually limit to what kind of stocks can be inside the ETF. What if a good performing make monies stock say tobacco maker for e.g becuz not green so cannot be included ? Monies talk loudest IMHO.

Conclusion I would choose 1,2 or take both. I already have a monthly pay dividend Asia Pacific REIT UT so never go for the SGX REIT ETF which pays quarterly too long wait for me.

How do dividends work in unit trust funds?
........
However, dividends are not returns on your investment.

So, what happens when your unit trust pays dividends?
......
Each time your unit trust fund pays out your dividend, the Net Asset Value (NAV) of each of your units will decrease accordingly.

Read for more complete pictures...
https://www.cimb.com.my/en/personal/life-go...-they-work.html

Useful article indeed. Also that’s a nice hack; the managed portfolio allocations would be a good place to start.

Most can't even beat their own benchmark.

googled and found this,...hope it can provide you with some info while you wait for value added responses

How to Tell the Difference
The easiest way to determine if an ETF is active or passive is to read the prospectus.
For example, the ARK Innovation ETF (ARKK) summary prospectus says that it’s an “actively-managed exchange-traded fund” in the “Principal Investment Strategies” section on the first page.
Simply scanning the prospectus for the word ‘active’ may be sufficient.

Active prospectuses also typically highlight investment strategies, like finding ‘undervalued securities’ or using a ‘bottom-up’ approach.
For example, a PIMCO active ETF prospectus says, “PIMCO will utilize a bottom-up approach to seek to identify asset classes and securities that are undervalued,” which suggests an active approach.

The final tell-tale sign of an active ETF is the lack of an underlying index.
While active ETFs may mention benchmark indices, they will never have an underlying index since investment managers select the assets.
That said, some strategies blur the line between active and passive because they use underlying indexes, as we’ll see next.

Blurring Active and Passive
The techniques we’ve covered can help you determine if an ETF is active or passive, but it can still be difficult to tell in some cases.
In particular, smart beta ETFs use proprietary indexes weighted by factors other than market capitalization.
One could argue that these indexes essentially automate stock picking, making them more active than passive.

more,...
https://www.dividend.com/active-etfs-channe...%20first%20page.

Any idea what is the value of this "total return basis"?

I think i have came across this fund. Its target is to return say 8% pa. So its benchmark is 8% and have no other similar benchmark available.

sorry mind to tell which funds is that?

While waiting for his responses,
I googled and found this fund has that kind of benchmark too

From the Product Highlights Sheet...
Nikko AM Singapore Dividend Equity Fund - MYR Class
https://www.fsmone.com.my/admin/buy/reports...ceMYNAMSDEM.pdf

Most probably the benchmark are highly correlated to the fund's mandate

I got this email today:

Dear Valued Customer,

Thank you for investing with FSMOne.


We have been informed by Affin Hwang Asset Management Berhad (“AHAM”) that they intent to change the distribution policy of Affin Hwang Select SGD Income Fund (the “Fund”) to allow the Fund to declare income distribution out of its capital. Currently, distribution of income by the Fund can only be made from realised gains or realised income.

The proposed change would allow the Fund the ability to distribute income on a quarterly basis in accordance with its distribution policy. While AHAM intend to continue declaring distribution from the Fund’s realised gains and / or income, the ability to declare distribution out of the Fund’s capital would enable the Fund to better meet its objective of providing investors with regular income distributions, even when the Fund has insufficient realised gains and / or income to do so.

I'm not very sure but this doesnt sound like a good idea....?

Previously it distribute dividend by realised gains or income means they sold stocks off or get stock dividends to give out the dividend to holders. Now with the change it means in order to continue giving it maybe taking from the capital of the fund instead. By right capital should be used to invest to get more profits and stock dividends so the fund can grow and not use to pay holders dividends. With lesser capital how to invest more?

But yet from holder point of view I want to have my dividends consistently not to be missed so fund manager feel pressured to fulfill that wish else holders withdraw from the fund no more job for fund managers

Come to think more about it,...
Unless there are changes to the SC guidelines on unit trust funds....
https://www.google.com/url?sa=t&source=web&...BUr2eM3M3FcpvF3

Google and found that,... Just not sure if it is still valid or latest or genuine.

🤔 SC must hv changed that, else,.
🤔 Since I think it is an epf approved fund,... Hope it is not, Epf request for constant good dividend pay out? 🙏🙏