Investing in ETFs with my CPF Money

Today's post will be on: how much can I invest in ETFs using CPF monies.
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1) What is an ETF?
An ETF is an Exchange Traded Fund, a fund traded on financial markets (SGX, NYSE etc) like a stock.
For more information on what ETF is, you can find out more HERE

2) Am I Eligible to CPF Investment Scheme (CPFIS)
All CPF members are eligible if you

1. are at least 18 years old
2. are not an undischarged bankrupt
3. take the SAQ (Self-Awareness Questionaire)*
4. have more than $20,000 in your Ordinary Account or more than $40,000 in your Special Account**

*You can start on the SAQ online via the link HERE.

**Your first $60,000 in your combined CPF account earns an extra 1%, which is why the CPF recommend you to invest the only amount in excess of that $60,000.

Recommended Read: The 4% Shortfall In Your CPF Retirement Fund

3) What can I invest in?
What you can invest in shown in the table below:

Source: CPF

4) How much can I invest in ETFs using my CPF monies?
Yes, you may invest your CPF money in Singapore listed ETFs approved by CPF.
However, there are some rules & regulations regarding this.
You may only
    a) use your CPF OA for investing in ETFs
    b) use funds in excess of $20,000 in your OA
    c) list of available ETFs can be found HERE.

5) What is the cost associated with using my CPF for investments in ETFs?
There are 2 costs associated with investing in ETFs with your CPF.

1. Your brokerage fees
   Your account will have to be opened with 1 of the 3 banks in Singapore (DBS, OCBC, UOB). Brokerage fees depends on the broker and the amount invested.
2. Your ETF fund fees
   This depends on which ETF you are buying. Most ETFs charge a low fee.
   The fees are used to pay the fund management team for providing the product.

Recommended Read: Save in CPF or Invest in Nikko AM STI ETF?

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