Singapore's growing suite of Reit ETFs

SINCE the first listing by CapitaLand Mall Trust in 2002, the SGX-listed Reits and property trusts sector (S-Reits sector) has grown to become Asia ex-Japan's largest Reits cluster with 42 trusts and a combined market capitalisation of over S$110 billion.

As the sector evolves into a mature ecosystem, investors now have access to a wide range of Reits-related products, including index benchmarks, exchange traded funds (ETFs) and index futures, among others.

There are currently three ETFs traded on the SGX which track the performance of Reits in the Asia-Pacific region.

The three ETFs are NikkoAM StraitsTrading Asia ex-Japan Reit ETF which tracks the FTSE EPRA Nareit Asia ex-Japan Reits 10 per cent Capped Index, the Lion-Phillip S-Reit ETF which tracks the Morningstar Singapore Reit Yield Focus IndexSM and the Phillip SGX Apac Dividend Leaders Reit ETF which tracks the iEdge Apac ex-Japan Dividend Leaders Reit Index.

The CSOP iEdge S-Reit Leaders Index ETF - soon to be the fourth Reit ETF on the SGX - tracks the iEdge S-Reit Leaders Index, and has filed a prospectus with an expected listing on Nov 18, 2021.

The CSOP iEdge S-Reit Leaders Index ETF will be the second SGX-listed ETF to have 100 per cent exposure to the S-Reits sector.

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The iEdge S-Reit Leaders Index is part of the suite of iEdge S-Reit indices, which are widely regarded as the barometers of the S-Reits sector.

The iEdge S-Reit Leaders Index is a tradable and liquidity enhanced index, offering market participants a key building block in their portfolio construction and an efficient risk-management tool.

As at Nov 11, 2021, the index has 28 constituents with a total market capitalisation of approximately S$106 billion.

The iEdge S-Reit Leaders Index represents some of the most liquid trusts in the S-Reits sector with assets across various property sub-segments such as retail, office, industrial, hospitality, healthcare and data centres.

Over the past 5 years, the index gained 63.7 per cent in total returns, outperforming regional indices such as the FTSE EPRA Nareit Developed Asia Index which gained 23.7 per cent in total returns across the same period.

The iEdge S-Reit Leaders Index boasts a dividend yield of 5.1 per cent, 330 basis points above the MAS 10-year government bond yield.

In the year to date till Nov 11, the index returned 3.7 per cent in total returns on the back of strong net inflows of over S$1.0 billion from retail investors into the 28 constituents.

A fifth ETF - the UOB Apac Green Reit ETF, which tracks the iEdge-UOB Apac Yield Focus Green Reit Index, has also filed a prospectus with an expected listing on Nov 23, 2021. SGX RESEARCH

• For more research and information on Singapore's Reit sector, visit sgx.com/research-education/sectors for the monthly S-Reits & Property Trusts Chartbook.

• Source: SGX Research S-Reits & Property Trusts Chartbook.