STI vs ISF Which Is a Smarter Choice?

STI and ISF stocks are two popular investment options in the financial market. STI, which stands for Straits Times Index, is a benchmark index tracking the performance of the Singapore stock market. On the other hand, ISF, or iShares MSCI Singapore ETF, is an exchange-traded fund that provides exposure to a diversified portfolio of Singaporean stocks. Investors often compare these two options to determine which may offer better returns, diversification, and risk management in their investment portfolios.

STI or ISF?

When comparing STI and ISF, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between STI and ISF.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. STI has a dividend yield of 1.61%, while ISF has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STI reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.09%. On the other hand, ISF reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with STI P/E ratio at 11.78 and ISF's P/E ratio at -21.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STI P/B ratio is 0.94 while ISF's P/B ratio is 1.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STI has seen a 5-year revenue growth of 0.03%, while ISF's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STI's ROE at 8.10% and ISF's ROE at -7.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩15420.00 for STI and ₹1.65 for ISF. Over the past year, STI's prices ranged from ₩13620.00 to ₩43250.00, with a yearly change of 217.55%. ISF's prices fluctuated between ₹0.22 and ₹1.70, with a yearly change of 672.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.