While both ETFs do not show a strong trending capability — in particular upwards, among the two, the relative strength comparable indicates that the STI ETF is stronger. Despite this, the trading range of the STI ETF is likely to be narrow, with support and resistance at $3.25 and $3.44 respectively.
For traders and investors, ETFs are an easy way out when sectors and individual stocks appear ambivalent.
The two most traded ETFs on the Singapore Exchange (SGX:S68
) are the STI ETF and Lion-OCBC Securities Hang Seng Tech ETF (HSTECH). The latter attempts to replicate the performance of the Hang Seng Technology Index comprising technology stocks listed in Hong Kong which are mainly H-shares.
