This is an account of how I have managed my Supplementary Retirement Scheme SRS portfolio since 2023. After three years of manual stock-picking and tracking the “Dogs of the STI”, 2026 marks my shift towards simplification and cost-cutting. Here is how my strategy evolved and why I am moving my SRS funds into the Amova STI ETF (G3B).
Table of Content
The Why Behind SRS
The Supplementary Retirement Scheme (SRS) is a voluntary Singapore government initiative to complement the Central Provident Fund (CPF). SRS offers attractive tax benefits.
For years, I treated SRS as a tax relief instrument. I didn’t invest the funds and left them in my SRS bank account. I finally decided to invest and I picked Endowus. While returns were decent, I eventually exited for two reasons:
- Reporting Annoyances: Account values between Endowus and UOB Kay Hian varied greatly due to NAV reporting lags.
- Recurring fees: Management fees felt high for an “ultra-passive” account.
I decided to take control and build my own portfolio, aiming for an annual yield of at least 4%.
My Investment Evolution: 2023 to 2026
| Period | Strategy | Primary Vehicle | Key Lesson |
|---|---|---|---|
| 2023 | Dogs of the STI | 8-10 Blue Chips | High dividends are great, but transaction fees eat returns. |
| 2024-2025 | Individual Stock Picking | Individual tickers | Technical analysis is vital for entry prices |
| 2026 | Passive Indexing | Amova STI ETF (G3B) | Minimise fees and mental energy; let compounding do the work. |
Phase 1: The “Dogs of the STI” Experiment (2023)
SRS funds can only be used to buy the following:
- Endowment insurance plans – Saving-cum-insurance products.
- Unit trusts – Recurring costs can be high.
- Shares and ETFs listed in SGX – Accessing the local market.
- Singapore Government Securities – Higher interest rates recently.
Early Withdrawal Penalty
If SRS contributions are withdrawn before the statutory retirement age (currently 62), penalties apply.
Exploring Suitable SRS Portfolio Strategies
I looked at the following portfolio strategies:
- The Permanent Portfolio: A mix of local stocks (25%), bonds (25%), gold (25%), and cash (25%).
- The Lazy Portfolio: A simple three-fund strategy covering local stocks, bonds, and international markets.
- Dogs of the STI Portfolio: Inspired by the Dogs of the DOW; buy the 10 highest dividend-yielding, blue-chip stocks in the STI.
My 2023 portfolio strategy
Buy the top 10 STI stocks by yield and review yearly. I narrowed my final list to 8 stocks based on P/B and P/E ratios.
I used FSMOne for lower fees and linked to my SRS account easily.
The Result
By Jan 2024, the portfolio was up 5.%. While “okay” for a newbie, I realised this strategy wasn’t “set-and-forget.” I was checking prices constantly, and the $12 per trade fee made rebalancing expensive.
Phase 2: Active Management & REITS (2024 – 2025)
In 2024, I pivoted to a more active approach, drilling down into specific stocks like DBS, OCBC and adding Capitaland Ascendas REIT (A17U).
2025 was a standout year. Singapore banks smashed earnings, and REITs began a slow recovery. By the end of 2025:
- Portfolio value growth: 15.45%
- Total Yield (inc. dividends): 22.91%
Despite these gains, the “active” life was taxing. Evaluating individual companies takes time, and the lack of analyst coverage for SGX stocks made research challenging.
Phase 3: The 2026 Shift to G3B (Simplification)
As of March 2026, I am reassessing everything. The Singapore government’s initiatives to revitalize the stock market have made the STI more attractive. I’ve decided to move away from individual stocks in favour of the Amova STI ETF (G3B).
Why G3B over the “grandfather” SPDR STI ETF (ES3)
| Metric | SPDR STI ETF (ES3) | Amova STI ETF (G3B) |
|---|---|---|
| Price (approx. end-2025) | S$4.72 | S$4.81 |
| Estimated 1-Year Total Return | ~25.8% | ~27.0% |
| Dividend Yield (2025) | ~3.8% – 4.1% | ~4.2% |
| Tracking Error | ~0.25% | ~0.15% |
| Expense Ratio | 0.28% p.a. | 0.30% p.a. |
For longer-term SRS holdings, G3B’s lower expense ratio compounds into meaningful savings. Since I am using a Regular Saving Plan (RSP) on FSMOne, the slightly lower liquidity of G3B compared to ES3 doesn’t impact me. The lower fees and dollar-cost averaging (DCA) are the priorities.
Looking Ahead: The ‘iEdge Next 50″
While G3B captures the giants, I have my eye on the iEdge Singapore Next 50 Index. Launched in late 2025, this index tracks the next 50 “mid-cap” stars. ETFs for this index are expected to appear in the latter half of 2026, and I plan to allocate a portion of my SRS there to captulre higher growth potential.
My 2026 Action Plan
- Automate: Set up a Monthly RSP on FSMOne for G3B.
- Consolidate: Progressively close underperforming individual holdings like Mapletree Logistics and CSOP SREIT ETF to fund the RSP.
- Reinvest: All dividends received will be funneled into G3B.
- Wait: Let the portfolio compound without the noise of daily price checks.
Investing SRS funds shouldn’t be a second full-time job. By moving to a G3B RSP, I’m buing back my time while still riding the growth of Singapore’s economy.
What is your SRS strategy for 2026? Let me know in the comments.
Disclaimer: I am not a financial advisor. This post is a personal account of my investment journey. Please perform your own due diligence before investing.
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