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REIT ETF Singapore Guide (2023): A Comprehensive Overview for Investors

CEO Khai Intela
Real Estate Investment Trusts (REITs) have become increasingly popular among investors, offering a unique opportunity to invest in income-generating real estate assets. In Singapore, the REIT market is thriving, with 42 REITs and property trusts...

Real Estate Investment Trusts (REITs) have become increasingly popular among investors, offering a unique opportunity to invest in income-generating real estate assets. In Singapore, the REIT market is thriving, with 42 REITs and property trusts listed on the Singapore Exchange (SGX). This makes Singapore one of Asia's largest markets for REITs.

Why Choose REIT ETFs?

One way to gain exposure to the REIT market is through REIT Exchange-Traded Funds (ETFs). These funds provide instant diversification, allowing investors to own a portfolio of REITs in different sectors with a click of a button. Unlike investing in individual REITs, buying REIT ETFs is passive and requires less time and effort. Additionally, REIT ETFs are cost-effective, saving investors from high commission costs. These ETFs are also professionally managed, ensuring that all necessary actions, such as rebalancing and corporate actions, are taken care of on behalf of the investors.

Introducing the Singapore REITs ETFs

In Singapore, there are currently five REIT ETFs available for investors. Let's take a closer look at each of them:

1. Phillip SGX APAC Dividend Leaders REIT ETF

The Phillip SGX APAC Dividend Leaders REIT ETF is the oldest and focuses on Asia Pacific REITs. This ETF follows a smart beta strategy, ranking and weighting the underlying REITs according to the total dividends paid in the last 12 months. Geographically, the ETF is concentrated in Australia, followed by Singapore and Hong Kong. Diversified REITs, Retail REITs, and Industrial REITs are the top sectors in this ETF.

2. NikkoAM-StraitsTrading Asia Ex Japan REIT ETF

The NikkoAM-StraitsTrading Asia Ex Japan REIT ETF is the world's first Asia ex-Japan REIT ETF. It tracks the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index. Most of the REITs in this ETF are concentrated in Singapore and Hong Kong. The top sectors in this ETF are Retail REITs, Industrial REITs, and Office REITs.

3. Lion-Phillip S-REIT ETF

The Lion-Phillip S-REIT ETF is Singapore's first ETF dedicated entirely to Singapore REITs. It tracks the performance of Morningstar's Singapore REIT Yield Focus Index, which emphasizes business quality, financial health, and dividend yield. Industrial REITs, Retail REITs, and Office REITs are the top sectors within this ETF.

4. CSOP iEdge S-REIT Leaders Index ETF

The CSOP iEdge S-REIT Leaders Index ETF focuses solely on Singapore-listed REITs. This ETF aims to replicate the performance of the iEdge S-REIT Leaders Index. With a similar sector allocation as the Lion-Phillip S-REIT ETF, this ETF offers investors exposure to a diverse range of Singapore REITs.

5. UOB APAC Green REIT ETF

The UOB APAC Green REIT ETF allows investors to invest in high-quality, environmentally sound real estate assets with growth potential. It tracks the iEdge-UOB APAC Yield Focus Green REIT index, which contains 50 REITs listed across the Asia-Pacific region. The top sectors in this ETF are Retail REITs, Diversified REITs, and Office REITs.

Making Informed Investment Decisions

Investing in REIT ETFs can be a strategic way to participate in the real estate market without the hassle of managing individual properties. Each of the five REIT ETFs offers unique features and advantages, catering to different investment objectives. By diversifying your portfolio with these REIT ETFs, you can benefit from the potential returns and stability of the real estate market.

Remember, always do your own research and consider your financial goals before making any investment decisions. Investing in REITs, like any other investment, carries risks. Stay informed and seek professional advice if needed. Happy investing!

Disclaimer: The information provided is for educational purposes only and should not be considered personalized investment advice. The writer does not own shares in any companies mentioned. Information is accurate as of 26 August 2023.


Image Source: Singapore Exchange (SGX) REIT ETF Singapore Guide (2023): Here's What Investors Need to Know! Image Source: Singapore Exchange (SGX)

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