There are many REITs in Singapore for various property types, such as retail, industrial, office, logistics, healthcare, and many more. The choices are complex, and as an investor, you feel overwhelmed by these choices. You want to avoid risking all your money because you choose an underperforming REIT.
Let us introduce you to the Singapore REIT ETF. By investing in an ETF, you are investing in a basket of REITs. ETF is perfect for an investor who prefers to invest in a basket of REITs to skip the need to do regular research on each of them individually. You passively collect the dividend payouts and let your investment grow over time.
Which Singapore REIT ETF should I choose?
These are the Singapore REIT ETFs listed on the Singapore exchange:
| NikkoAM-Straits Trading Asia Ex-Japan REIT ETF (CFA) For the largest Singapore REIT ETF by asset under management (AUM) with a quarterly dividend |
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| Lion-Phillip S-REIT ETF (CLR) For pure exposure to Singapore REITs |
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| CSOP iEdge S-REIT Leaders Index ETF (SRT) For pure exposure to Singapore REITs |
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| Phillip SGX APAC Dividend Leaders REIT ETF (BYI) For more exposure to Australian REITs |
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| UOB Asia Pacific Green REIT ETF (GRN) For environmentally friendly REITs |
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While going through in more detail for each of them, pay attention to the expense ratio (annual fee), dividend yield, country breakdown, and sector breakdown. These are the main metrics you want to consider before choosing where to invest.
NikkoAM-Straits Trading Asia Ex-Japan REIT ETF
For the biggest Singapore REIT ETF by asset under management (AUM) with a quarterly dividend
| Stock Ticker | CFA |
| Dividend Yield | 6.53% (Aug 2024) |
| Expense Ratio | 0.55% |
| Dividend Payout | Quarterly |
| Launch Date | 29 March 2017 |
| Fund Size | SGD 316.24 million |
| Benchmark Index | FTSE EPRA Nareit Asia ex Japan REITs 10% Capped Index |
Top Holdings:
| CAPITALAND INTEGRATED COMMERCIAL TRUST | 10.3% | Singapore |
| CAPITALAND ASCENDAS REIT | 10.0% | Singapore |
| LINK REAL ESTATE INVESTMENT TRUST | 9.4% | Hong Kong |
| EMBASSY OFFICE PARKS REIT | 6.9% | India |
| MAPLETREE LOGISTICS TRUST | 5.9% | Singapore |
| MAPLETREE INDUSTRIAL TRUST | 5.7% | Singapore |
| MAPLETREE PAN ASIA COMMERCIAL TRUST | 3.8% | Singapore |
| FRASERS LOGISTICS & COMMERCIAL TRUST | 3.7% | Singapore |
| FRASERS CENTREPOINT TRUST | 3.2% | Singapore |
| KEPPEL DC REIT | 3.1% | Singapore |
Check out the latest data from the Nikko AM website directly here: https://www.nikkoam.com.sg/funds/nikkoamstraitstrading-asia-ex-japan-reit-etf-sgd-class
This ETF is one of our favorite ETFs because it has the largest AUM among Singapore REIT ETFs. It has diversified exposure to REITs across Asia, with Singapore as the top allocation. The expense ratio is reasonable, in line with other Singapore REIT ETF products.
Lion-Phillip S-REIT ETF
For pure exposure to Singapore REITs
| Stock Ticker | CLR |
| Dividend Yield | 6.16% (Aug 2024) |
| Expense Ratio | 0.6% |
| Dividend Payout | Semi-annual |
| Launch Date | 30 Oct 2017 |
| Fund Size | SGD 364.3 million |
| Benchmark Index | Morningstar® Singapore REIT Yield Focus Index℠|
Top Holdings:
Check out the latest data from the Lion Global Investors website directly here: https://www.lionglobalinvestors.com/en/fund-lion-phillip-s-reit-etf.html
This ETF is another one of our favorites because of its focus on Singapore REITs. It also has a competitive expense ratio in line with the industry average.
CSOP iEdge S-REIT Leaders Index ETF
| Stock Ticker | SRT |
| Dividend Yield | 7.55% (Aug 2024) |
| Expense Ratio | 0.6% |
| Dividend Payout | Semi-annual |
| Launch Date | 18 Nov 2021 |
| Fund Size | SGD 67.82 million |
| Benchmark Index | iEdge S-REIT Leaders Index |
Top Holdings:
| CAPITALAND INTEGRATED COMMERCIAL TRUST REIT | 10.54% |
| CAPITALAND ASCENDAS REIT | 9.72% |
| MAPLETREE COMMERCIAL TRUST | 9.53% |
| FRASERS LOGISTICS & COMMERCIAL TRUST REIT | 9.38% |
| KEPPEL DC REIT | 9.36% |
| MAPLETREE LOGISTICS TRUST | 8.76% |
| MAPLETREE INDUSTRIAL TRUST | 8.23% |
| CAPITALAND ASCOTT TRUST | 5.82% |
| KEPPEL REIT | 5.65% |
| 4.29% |
Check out the latest data from the CSOP website directly here: https://www.csopasset.com/sg/en/products/sg-reit/etf.php
We also like this REIT ETF because it tracks the iEdge S-REIT Leaders Index, which includes some of the largest and most liquid blue-chip Singapore REITs.
The downside of this ETF is its lack of track record because the launch date was only toward the end of 2021. The smaller AUM also makes this ETF less attractive because it will make them less profitable and thus risk being neglected or shut down. However, CSOP has a good track record in managing other ETFs, so we believe this should not be a concern.
Phillip SGX APAC Dividend Leaders REIT ETF
For more exposure to Australian REITs
| Stock Ticker | BYJ (SGD) / BYI (USD) |
| Dividend Yield | 5.82% (Jul 2024) |
| Expense Ratio | 1.69% |
| Dividend Payout | Semi-annual |
| Launch Date | 20 Oct 2016 |
| Fund Size | USD 7.33 million |
| Benchmark Index | iEdge APAC Ex-Japan Dividend Leaders REIT Index |
Top Holdings:
| Scentre Group | 9.49% | Australia |
| Link REIT | 7.93% | Hong Kong |
| CapitaLand Integrated Commercial Trust | 6.54% | Singapore |
| Goodman Group | 6.49% | Australia |
| CapitaLand Ascendas REIT Trust | 6.07% | Singapore |
| Vicinity Ltd | 5.53% | Australia |
| Dexus | 5.11% | Australia |
| Stockland | 4.99% | Australia |
| GPT Group | 4.83% | Australia |
| Mirvac Group | 3.64% | Australia |
Check out the latest data from the Phillip Capital Management website directly here: https://phillipfunds.com/phillip-sgx-apac-dividend-leaders-reit-etf/
Although this ETF has been around for more than five years, the AUM is still relatively small. The smaller AUM also makes this ETF less attractive because it will make them less profitable and thus risk being neglected or shut down.
UOB Asia Pacific Green REIT ETF
For environmentally friendly REITs
| Stock Ticker | GRN |
| Dividend Yield | 4.45% (Mar 2024) |
| Expense Ratio | 0.45% |
| Dividend Payout | Semi-annual |
| Launch Date | Nov 2021 |
| Fund Size | SGD 56.53 million |
| Benchmark Index | iEdge-UOB APAC Yield Focus Green REIT Index |
Top Holdings:
| SCENTRE GROUP | 7.55% | Australia |
| CAPITALAND INTEGRATED COMMERCIAL TRUST | 6.53% | Singapore |
| STOCKLAND | 6.41% | Australia |
| VICINITY LTD | 5.66% | Australia |
| GPT GROUP/THE | 5.46% | Australia |
| LINK REIT | 5.23% | Hong Kong |
| DEXUS | 4.81% | Australia |
| JAPAN METROPOLITAN FUND INVEST | 3.45% | Japan |
| MIRVAC GROUP | 3.44% | Australia |
| GLP J-REIT | 3.37% | Japan |
Check out the latest data from the UOB Asset Management website directly here: https://www.uobam.com.sg/sustainability/solutions/uob-apac-green-reit-etf.page
The main attraction of this ETF is its focus on environmentally friendly REITs across Asia and Australia. If you are a supporter of the ESG movement, you can consider this ETF.
What are the risks of investing in a REIT ETF?
One risk of buying a REIT ETF is that you only buy the biggest REITs. Buying only the largest REITs usually implies buying those REITs at higher prices. To be part of an index, the REITs need to grow bigger. You may miss the undervalued REITs if their size is still smaller.
Because REIT ETF is just a basket of REITs, you also inherit the risk of investing in real estate in general. REITs are usually highly leveraged and sensitive to interest rate changes.
If you are an investor who believes in real estate but does not want to manage your REIT portfolio actively, these REIT ETFs can be a good option for you. These ETFs give you consistent dividend payouts without the need to stay up-to-date with those various REITs individually.
Disclaimer: The information provided here is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice or recommendation of any sort.