Lion Global Infinity U.S 500 Index Fund is designed for long-term capital appreciation by following the S&P 500 index. It is one of the investment feeder funds of the Vanguard US 500 index fund, a sub-fund of the Vanguard Investment Series plc.
The Vanguard US 500 index fund uses the passive investment approach to attempt to follow the S&P 500 index’s investment performance by holding a portfolio made of the stocks on the S&P 500. The fund also has the stock in the same proportion as the index.
The fund provides retail investors access to an index fund at a lower startup amount with a low trading cost. The Lion Global Infinity U.S 500 Index fund has its operating expense, so while it is expected to follow the S&P 500, it cannot match its performance completely.
Fund Description
| Fund group | Infinity Investment Series |
| Fund type | Index |
| Custodian | The Hongkong and Shanghai Banking Corporation Limited |
| Trustee | HSBC Institutional Trust Services (Singapore) Limited |
| Benchmark | S&P 500 Index |
| Inception date | 2003-10-17 |
| ISIN | SG9999003297 |
| Bloomberg | OCBINDU SP |
| Fund currency | US$ |
| Minimum initial investment | 1,000 |
| Minimum subsequent investment | 100 |
| Subscription mode | Cash |
| Dealing frequency | Every business day |
| Order deadline (SG) | 3:00 pm |
| Initial charge | Currently up to 2%. Maximum 5%. |
| Redemption charge | Currently Nil, Maximum 5% |
| Switching fee | Currently up to 1%, Maximum 5% |
| Management fee | Currently 0.475% p.a. Maximum 2% p.a. |
Fund Selection Criteria
LionGlobal Infinity U.S Index Fund offers investors access to the large and mid-cap companies in the United States market. It also gives its investors, including CPF investors, a diversified portfolio to invest in the U.S. portfolio.
The fund replicates the S&P 500 fund closely as possible while holding a portfolio of more than 500 companies. This makes it the most diversified and market-representative fund in the world.
The LionGlobal Infinity U.S Index Fund is designed to deliver benchmark returns at the lowest cost possible. This is possible because of fund managers’ wide presence worldwide and investment experience facilitating efficient trading and index replications. The fund attempts to add value by anticipating index changes and trade changes one or two days before the index changes.
The fund has a high, low-cost portfolio, making it easy for investors to benefit from exposure to the global markets and with cost-efficient returns over a long trading period.
A team manages the LionGlobal Infinity U.S Index Fund at Vanguard, and with the help of LionGlobal Investors, they have access to investors from Singapore, including the CPF members. The fund is among the CPFIS List A and adopts the approach of rebating 100% of the trailer fees back to clients that bring the Fund TER within the CPF guidelines.
Therefore, the fund is one of the two passively invested funds available for CPF investing. The LionGlobal Infinity U.S Stock Index Fund is also a Singapore-domiciled fund which makes it more tax efficient. It can also be denominated in Singapore dollars, making an FX-efficient portfolio for investors based in Singapore.
It is also important to note that past performance of the fund is not indicative of future performance.
The Fund Performance
| Period | Performance (%) | Volatility (%) | Return/Volatility Ratio |
| YTD | -8.8225 | 1.3144 | -6.71 |
| 1 Day | -2.1982 | 5.1027 | -0.43 |
| 1 Week | -1.9058 | 4.2495 | -0.45 |
| 1 Month | -4.4412 | 5.5065 | -0.81 |
| 3 Months | -0.906 | 10.7843 | -0.08 |
| 6 Months | -4.232 | 13.1793 | -0.32 |
| 1 Year | 6.8811 | 15.2689 | 0.45 |
| 2 Years | 47.3891 | 23.2373 | 2.04 |
| 3 Years | 50.4298 | 38.6072 | 1.31 |
| 5 Years | 83.0544 | 42.9317 | 1.93 |
| 10 Years | 260.5769 | 52.0385 | 5.01 |
The Infinity U.S. 500 Index Fund offers great returns over a long period. The stocks are well-diversified, making it a relatively low-risk method for investing. It is important to note that the index fund is likely to fluctuate like all stocks. Interested in investing other index funds? Check out the best index fund in Singapore 2022!
However, the Infinity U.S. 500 Index Fund has made solid returns of about 10% annually, but the fund’s past performance is not an indication of its future performance.
Should You Invest in The LionGlobal Infinity 500 Index Fund?
The Infinity U.S. 500 Index Fund is ideal for retail investors who want long-term investment products. The fund might fluctuate from time to time, but it has a great return when you invest over a long time. It is essential to look for accurate and timely information from a reliable platform but keep in mind that there may be technical or factual inaccuracies in the information provided.
Here are reasons why you should consider investing in the Infinity U.S. 500 Index Fund:
1. Low Fees
The Infinity U.S. 500 Index Fund mimics the S&P 500 index, so there is no need to have a massive team for the analytics to help the fund managers to pick the stock to invest in. There is no active trading of the stocks, and all these factors lead to the low managing cost of the index fund.
2. Unbiased Investing
The Infinity U.S. 500 Index Fund has an automated, regulation-based investment method. This means that the fund manager has a defined mandate on investing in the different securities and how much they should invest in the fund.
This investment approach eliminated human bias or discretion while making investment decisions.
3. Has A Diversified Portfolio
Investing in the Infinity U.S. 500 Index Fund offers a broad market exposure since the S&P 500 index is well-diversified across different sectors and stocks. This means an investor can get returns to form a large market segment through the index fund.
Investing in the Infinity U.S. 500 Index Fund gives you access to more than 500 companies that are the best performing in the United States stock markets. The more than 500 companies are from different sectors in the country, therefore, spreading your risk and reducing the chances of losing your investment capital.
4. Tax Benefits
Since the Infinity U.S. 500 Index Fund is passively managed, it enjoys a low turnover. The fund managers make very few trades in a given financial year. Few trades mean fewer capital gains distribution to the unitholder.
5. It’s Easy to Manage
With the Infinity U.S. 500 Index Fund, the fund manager need not worry about the performance of stocks in the index. Fund managers need to rebalance the portfolio once in a while to match the changes in the S&P 500 index.
Is There Any Difference Between the Infinity US 500 Index Fund Vs. Vanguard S&P 500 Index Fund?
Yes.
The Infinity US S&P 500 fund is denominated in Singapore dollars and is one of the feeder funds for the Vanguard 500 index fund that mimics the performance of the S&P 500 index.
Closing
The LionGlobal Infinity U.S. 500 Stock Index Fund mimics the performance of the S&P 500 in the U.S. market and is one of the feeder funds in the Vanguard 500 investment Fund. The fund has a passive investment approach holding the same stock as the S&P index and with the same proportion. The fund is excellent for investors who want to make a long-term investment based on your financial situation.
Key Takeaways
- The Lion Global Infinity U.S. 500 Stock Index Fund required a minimum initial investment of S$1000.
- The Infinity 500 fund is a feeder fund of the Vanguard 500 index fund that tracks the S&P 500 index.
- The fund has access to over 500 of the best-performing stocks in the U.S. stock market.
- The Infinity US 500 fund is denominated in SDG and is regulated by the Monetary Authority of Singapore.
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