DBS STI ETF Starts Trading
Saturday, February 28th, 2009
DBS STI ETF started trading yesterday.
According to the notice filed by DBS, 2,411,410 units were created at an issue price of $1.62 per unit. This works out to a total fund size of about $3.9 million.
It looks that the amount of funds raised is quite small. As the fund has a minimum trustee fee of $48k per year, this means the expense ratio would exceed 1% (at the current fund size).
Unless DBS can get more institutional interest into this fund, the small fund size will most likely mean it will be a loss making ETF for them.
As a comparison, Streettracks STI ETF has 256 million units in circulation with a fund size of almost $400 million.
