Returns of my STI portfolio after 10 years

As we all know by now, the Straits Times Index has been on an incredible bull run.

In fact, it is now commonly referred to as the Super Terrific Index. 😀 

So I decided to write another feel-good post about my returns from investing in STI, which should be higher than the 6.4% CAGR (compound annual growth rate) reported in my previous post. 

I have collected $25,734 in dividends over the last 10 years. I started DCA on 24 Apr 2014. 

So, how much have those returns netted me?

To get a clear picture, I looked at the Compound Annual Growth Rate (CAGR) of my investments. Think of CAGR as the smoothed annual rate of return—it tells you what your average yearly growth rate would have been if the investment had grown at a steady rate from start to finish, without considering the ups and downs in between.

This CAGR is computed using the FV() formula in Google Sheets, which stands for Future Value. In my case, I plugged in the lump sum invested at the start, the number of periods invested in months, and the final portfolio value.

Without dividends included, I achieved a CAGR of 5.10%. 

With dividends included, my CAGR increases to 8.2%! 

With this CAGR of 8.2%, it means my portfolio will double in 8-9 years.

Results are as of 22 Jul 2024. 

In summary:

Metric	Value
Dividends Collected	+$25,734
Unrealised Profits	+$31,111
Simple Returns	+36.23%
CAGR (Excluding Dividends)	+5.10%
CAGR (Including Dividends)	+8.20%

Let’s compare this to the ever-popular S&P 500 index.

According to Wikipedia, since its inception in 1926, the S&P 500 has delivered a compound annual growth rate (CAGR) of approximately 9.8% including dividends (around 6% after inflation).

So yes, my STI portfolio CAGR of 8.20% still trails the long-term performance of the S&P 500. But this is home ground for me, and I’m genuinely happy to see the Straits Times Index (STI) holding up reasonably well—especially with dividends included. It goes to show that solid, long-term investing in local markets can still yield respectable returns.

Anyway, since I’m Singaporean, don’t mind me blowing my own trumpet a bit here (referring to the Singapore stock market). 🇸🇬📈

STI is poised to go higher. Let's see what the future brings!