For years, telling a Singaporean to buy the STI instead of the S&P 500 was a bit like recommending kopi-O over a flat white. Predictable and sensible—but hardly exciting.
Whereas, the S&P 500 ETF was where the action seemed to be, with Nvidia, Apple and the rest of Wall Street’s biggest names doing the heavy lifting.
Then, came 2026.
This year, the STI delivered twice the S&P 500's return, and most investors probably didn't even take notice. No Nvidia-fuelled hype, or Trump driven headlines. Just Singapore’s conventional mix of banks and blue-chip stocks quietly outperforming the US market.
So, what happened? More importantly, does one standout year mean you should ditch your S&P 500 ETF and go all-in on Singapore?
Let’s look at the numbers objectively. By the end of this guide, you’ll know: how the two ETFs performed in 2026, why the gap opened up, which one (or whether both) makes sense for your portfolio, and where you can buy them.
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1. What are the STI ETF and S&P 500 ETF?
STI ETF
The STI ETF tracks the Straits Times Index (STI)—the 30 largest companies listed on the SGX. Think of it as a slice of Singapore Inc.: the three local banks, Singtel, ST Engineering, the big property players and other blue-chip names.
Buy a unit and you get exposure to all 30 companies without having to pick individual stocks. Less stock-picking, less guesswork.
There are two main ETFs that track the STI:
If you've been Googling "Nikko AM STI ETF" and found it under a different name, don’t panic. Nikko Asset Management recently rebranded to Amova. The fund has taken on a new name but the same ticker (G3B) and index: Amova Singapore STI ETF.
Best for: Investors who want Singapore exposure, regular dividends and a relatively low-cost core holding. The ETF has historically paid around 3%+ in dividends, distributed twice a year, so you can collect income whether the market is having a good day or not.
Watch-out: The three local banks make up half the index, while financials account for roughly 60% of the fund. This means when banks are winning, the STI flies. However, if they tumble, there aren’t many other sectors to cushion the impact.
That’s exactly why people look to overseas markets in the first place, which brings us to the flip side of this conversation.
S&P 500 ETF
The S&P 500 ETF tracks America's 500 largest listed companies: Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and 494 others. It’s one of the world’s most popular indices for good reason: one ETF gives you exposure to the US market and some of the biggest companies in the world.
Here's where most Singaporeans trip up. There is no S&P 500 ETF listed on the SGX. You can't buy it the same way you did with ES3.
Instead, many Singapore investors use Ireland-domiciled UCITS ETFs listed on the London Stock Exchange and traded in US dollars.
Why go for an Irish-domiciled ETF instead of US-listed VOO or SPY?
One word: taxation. Not exactly the most exciting, but it makes a real difference to your returns over time:
- Irish UCITS ETFs generally face 15% withholding tax on US dividends.
- US-listed ETFs such as VOO and SPY face 30% withholding tax on US dividends for Singapore investors. It may expose you to US estate tax if you hold US-situs assets when you die. Not exactly the kind of surprise you want.
Hence, the London-listed Irish versions can be more tax-efficient for Singapore investors, even if their stated expense ratios look similar.
Accumulating ETFs automatically reinvest dividends back into the fund. Works well if you’re all-in on long-term compounding, but don’t expect regular cash payouts to land in your account like they do typically with an income-distributing STI ETF.
2. How have they performed in 2026?
Here's how the two compare as of mid-August 2026:
Figures are as at mid-August 2026 and will change. These are index/price returns; your actual return will depend on your entry point, fees and dividends.
The STI ETF (ES3) returned about +23.5% year-to-date as of end-July 2026, noting record highs and 5,690 points in August. On the other hand, the S&P 500 tracked +12.4% (total return, with dividends) as of 20 August. It’s still an expected performance, though it pales in comparison to Singapore’s booming performance.
Note: those S&P 500 returns are quoted in US dollars. If your expenses are in Singapore dollars, a stronger SGD can eat into your returns during conversion. In other words, the gap could look even bigger from an SGD investor’s perspective.
Not bad, right? For once, staying home paid off.
This raises a bigger question: was 2026 a lucky break, or was there something more substantial that’s driving Singapore stocks higher?
3. What's driving the performance gap?
A good year doesn't come from nowhere. Three things lined up for STI’s performance in 2026.
- Banks plus high interest rates equaled a very good year for our index. With rates still relatively high, DBS, OCBC and UOB continued to enjoy healthy margins. Since they make up half the STI, STI directly benefits from their growth.
- The Government is investing in the local market. The Monetary Authority of Singapore (MAS) rolled out its Equity Market Development Programme, starting with S$5 billion in 2025 and an additional S$6.5 billion announced during Budget 2026, to reinvigorate the SGX by getting more capital to flow into Singapore-listed companies.
- Other companies rallied alongside the banks. ST Engineering, Sembcorp, Singtel, SGX and property names (UOL) also had strong runs. Retail investors got in on the action too, with trading activity hitting a 12-year high and months of consistent net buying.
Meanwhile, the S&P 500 had a solid year, despite cooling off after several blockbuster runs. Some investors also started rotating out of tech stocks,which did much of the heavy lifting in previous years.
Markets take turns, and 2026 is Singapore’s turn to shine. At this point there’s only one question that really matters: which one should you invest in?
4. Which one should you invest in?
One good year doesn't make a strategy. The STI beating the S&P 500 in 2026 tells you what already happened—not what’s going to happen in 2027.
Rather than chasing last year’s winner, pick the ETF that fits the kind of investor you are.
It doesn’t have to be mutually exclusive. In fact, most investors hold both:
- STI ETF for income and a home-market anchor.
- S&P 500 ETF for growth and exposure to a broader global market.
That way you're not betting your entire portfolio on whether Singapore or America has the better decade.
The one rule to keep in mind: past performance doesn't guarantee future returns. Whichever way you go, invest for the long term rather than chasing last year's market leader.
Once you've picked your mix, it’s down to one step to owning either ETF: choosing the right brokerage account.
5. Where to buy them: comparing brokerages
Whichever ETF you're eyeing, you'll need a brokerage account to buy from. The STI ETF trades on the SGX, while S&P 500 UCITS ETFs trade on the London Stock Exchange (LSE). Not every broker has access to both markets, so it’s worth doing due diligence before signing up.
Here’s how the main brokerages available to Singapore investors stack up.
Fee figures compiled from broker-published rates, August 2026. Some brokers run zero-commission promos that expire, so always check the current rate card.
If you're only buying the STI ETF (ES3 or G3B): almost any broker works locally. Low-cost app brokers (like moomoo, Webull, Tiger and Longbridge) are popular for minimal commitment and beginner-friendly user experience.
If you prefer to hold the STI ETF held under your name than with a custodian, traditional brokers (POEMS, OCBC Securities, UOB Kay Hian, CGS) offer this option at higher fees.
If you’re looking to invest in the S&P 500 UCITS ETFs (CSPX, VUAA, SPYL), only a handful of brokers offer the product: Interactive Brokers, Saxo and FSMOne. IBKR is the usual pick for its low FX conversion and commissions, while FSMOne offers flat fees and a strong ETF selection.
Compare the full line-up, fees and current promos before you commit:
With the account set up, there's one thing left: how to turn all of this into a move you'll make.
6. The bottom line
Forget about which ETF “won” and decide how you want to invest. If you’re looking to build steady income streams and a home-market anchor, pick a low-cost broker to invest in an STI ETF.
Looking for long-term global growth? Consider a broker with access to the London Stock Exchange and dollar-cost average into an Ireland-domiciled S&P 500 UCITS ETF. Want the best of both worlds? Split your monthly investment between the two and automate it. That way, you don't have to keep guessing which market will come out on top next year.
Whatever you choose, building wealth is more about starting early, and staying consistent. Pick your broker, set up your recurring investment, and let time do the heavy lifting.
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