The index tracks the top 30 listed companies on the Singapore Exchange (SGX).
Collectively known as blue chips, they are often regarded as well-established with strong reputations and solid financial standing.
While they are less volatile, they are by no-means risk free.
Sector Allocation
The STI’s 30 blue chip stocks cut across multiple industries of Singapore’s diverse economy.
The index, however, is heavily weighted towards financials, namely the three largest banks in Singapore and Singapore Exchange Ltd (SGX: S68).
Together, DBS Group Holdings Ltd (SGX:D05), Oversea-Chinese Banking Corporation Ltd (SGX: O39) and United Overseas Bank Ltd (SGX:U11), make up nearly 50% of the STI, slightly more than half the index.
Real estate is another key contributor with constituents like CapitaLand Integrated Commercial Trust (SGX: C38U) and CapitaLand Ascendas REIT (SGX: A17U), making up around 16% of the STI….
