Dear readers, it was reported that Mapletree Logistics Trust has been added to the Straits Times Index with Golden Agriculture stock being removed in parallel from the index with effect from 5 Dec 2019. With the addition of Mapletree Logistic Trust into the Straits Times Index, these are now more Reits and Trusts inside the Straits Times Index stock right as follows:
1.Ascendas Reit
2.Capitaland Commercial Trust
3.Capitaland Mall Trust
4.Mapletree Commercial Trust
5. Mapletree Logistic Trust
These Reits and Trusts will no doubt add more elements of defensiveness to the Straits Times Index and at the same time with their high dividends nature could increase the dividend yield of the Straits Times Index ETF as a whole. Hence, it is going to be good news for all investors of the STI.
I have long expected of the incorporating of more Reits and Trusts into the index as the macro stocks environments become more challenging and testing many of the what is often touted the blue-chips stocks. That said, the constant review of the STI constituent stocks is going to make the STI an always resilient index fund since only the strongest companies of the Singapore stocks will be in the index at any one point in time.
And that is partly why Sg Stocks Investing’s mantra is to weigh one’s portfolio on Straits Times Index stock ETF while leaving the other pockets of the portfolio to investing in potential multi-bagging stocks on the international front.