Amid low rates, UOB Asset Management launches dividend-focused ETF aiming to pay 6%

[SINGAPORE] With rates steadily falling over the past year, investors might be on the lookout for higher-yielding assets to put their money in.

T-bill yields fell below the 2 per cent mark in the second half of 2025 amid a globally lower rate regime.

But certain assets are still offering higher yields, such as income-focused funds, bond funds and real estate investment trusts.

UOB Asset Management is launching one such dividend-focused fund: the UOBAM Ping An FTSE Asean Dividend Index ETF.

The firm said on Wednesday (Jan 7) that this is the only dividend-focused Asean exchange-traded fund (ETF) to be listed on the Singapore Exchange (SGX). It is also part of the Singapore Exchange-Shenzhen Stock Exchange ETF Product Link.

The UOBAM Ping An FTSE Asean Dividend Index ETF aims to pay dividends of at least 6 per cent in 2026 and 2027, which UOB Asset Management said is one of the highest among Singapore-listed ETFs.

In comparison, the SPDR Straits Times Index ETF offers a dividend yield of about 3.8 per cent as at January 2026. The Lion-Phillip S-Reit ETF, also listed on the SGX, offers about 5.5 per cent.

Among individual stocks, ShareInvestor data showed that DBS had a trailing 12-month yield of 4.19 per cent as at June 2025; UOB’s was at 5.09 per cent and OCBC offered 5.13 per cent.

Current dividends, however, are not indicative of future yields.

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“The ETF invests in leading companies across five key Asean markets – Singapore, Indonesia, Thailand, Malaysia (and) the Philippines – offering exposure to the region’s long-term growth potential while providing stability and resilience,” said UOB Asset Management.

The fund includes constituents such as the three Singapore banks and Malaysia’s Maybank. Indonesia’s Astra International and Thailand’s PTT are also among its top constituents.

Thio Boon Kiat, group CEO of UOB Asset Management, said that with interest rates on the decline, dividend strategies have “become increasingly important for enhancing income and long-term returns”.

“Asean is not only a source of strong dividend opportunities, but also a region of enduring growth potential, underpinned by favourable demographics, rising domestic consumption, and ongoing structural development,” he added.

UOB Asset Management said it is partnering FTSE Russell and Ping An Fund Management to offer this ETF to both Singapore and international investors.

Jasmine Lim, deputy general manager of Ping An Fund Management, said: “Through this collaboration, we aim to offer our investors in China an effective investment tool to access Asean markets to achieve portfolio diversification and income growth.”