The Dividend Snowball: How To Own Singapore's Banking Giants Without the Heartache

🌟🌟🌟Compounding is like the financial equivalent of rolling a tiny snowball down Bukit Timah Hill. At first, it looks insignificant. But as it rolls, the snow picks up more snow. In the investing world, your money makes the babies, and then those babies have babies, until you are suddenly sitting on a generational empire.

In Singapore the kings of this compounding kingdom are our local banking giants: $DBS(D05.SG)$OCBC Bank(O39.SG)and $UOB(U11.SG). Together they command over 50% of the entire Straits Times Index or STI. They are not just banks. They are the structural tollbooths of South East Asian wealth.

However the recent selloff of DBS, OCBC and UOB have caused much heartache especially if you are a new investor.

The smartest stress free way is to invest in $STI ETF(ES3.SG). In just 1 powerful trade, you own the best 30 blue chips stocks trading on the Straits Times Index.

Apart from the 3 local banks, the top 10 Holdings include $Singtel(Z74.SG)$SGX(S68.SG)$ST Engineering(S63.SG)$Keppel(BN4.SG)$CapLand IntCom T(C38U.SG)$JMH USD(J36.SG)and $YZJ Shipbldg SGD(BS6.SG).

The top 10 companies alone represent over 81.7% of the entire ETF. When you buy this ETF, you are not speculating on unproven startups. You are buying a highly concentrated block of dominant market leaders.

When the local banks experience a sharp short term selloff, it temporarily drags the entire index down. But for a true believer of the Warren Buffett mindset, that price dip is just the long hill getting a little steeper, giving your snowball even more room to pick up speed.

This current selloff, I am buying more $STI ETF(ES3.SG). Will you join me in this bargain hunting spree?