Singapore REIT ETF: The Ultimate Guide

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
Largest Singapore REIT ETF
Lion-Phillip S-REIT ETF (CLR)
For pure exposure to Singapore REITs
Focus on Singapore REIT
CSOP iEdge S-REIT Leaders Index ETF (SRT)
For pure exposure to Singapore REITs
Focus on Singapore REIT
Phillip SGX APAC Dividend Leaders REIT ETF (BYI)
For more exposure to Australian REITs
More exposure to Australian REITs
UOB Asia Pacific Green REIT ETF (GRN)
For environmentally friendly REITs
Environmentally friendly REITs

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

Nikko Asset Management

Stock Ticker CFA
Dividend Yield 6.42% (May 2024)
Expense Ratio 0.55%
Dividend Payout Quarterly
Launch Date 29 March 2017
Fund Size SGD 332.22 million
Benchmark Index FTSE EPRA Nareit Asia ex Japan REITs 10% Capped Index

Top Holdings:

CAPITALAND ASCENDAS REIT 10.1% Singapore
CAPITALAND INTEGRATED COMMERCIAL TRUST 10.1% Singapore
LINK REAL ESTATE INVESTMENT TRUST 9.2% Hong Kong
EMBASSY OFFICE PARKS REIT 6.9% India
MAPLETREE LOGISTICS TRUST 6.4% Singapore
MAPLETREE INDUSTRIAL TRUST 6.1% Singapore
FRASERS LOGISTICS & COMMERCIAL TRUST 4.0% Singapore
MAPLETREE PAN ASIA COMMERCIAL TRUST 3.9% Singapore
FRASERS CENTREPOINT TRUST 3.1% Singapore
CAPITALAND ASCOTT TRUST 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

Lion Global

Stock Ticker CLR
Dividend Yield 6.06% (Jan 2024)
Expense Ratio 0.6%
Dividend Payout Semi-annual
Launch Date 30 Oct 2017
Fund Size SGD 356.2 million
Benchmark Index Morningstar® Singapore REIT Yield Focus Index℠

Top Holdings:

CAPITALAND INTEGRATED COMMERCIAL TRUST REIT 9.8%
MAPLETREE INDUSTRIAL TRUST 9.4%
CAPITALAND ASCENDAS REIT 9.2%
FRASERS LOGISTICS & COMMERCIAL TRUST REIT 8.7%
MAPLETREE LOGISTICS TRUST 8.7%
KEPPEL DC REIT 7.3%
FRASERS CENTREPOINT TRUST 6.9%
KEPPEL REIT 6.3%
MAPLETREE PAN ASIA COMMERCIAL TRUST 5.8%
SUNTEC REAL ESTATE INVESTMENT TRUST 5.5%
PARKWAY LIFE REAL ESTATE INVESTMENT REIT 4.6%

 

 

 

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

Largest Singapore REIT ETF

Stock Ticker SRT
Dividend Yield 7.43% (Jan 2024)
Expense Ratio 0.6%
Dividend Payout Semi-annual
Launch Date 18 Nov 2021
Fund Size SGD 70.65 million
Benchmark Index iEdge S-REIT Leaders Index

Top Holdings:

CAPITALAND INTEGRATED COMMERCIAL TRUST REIT 10.15%
CAPITALAND ASCENDAS REIT 9.74%
FRASERS LOGISTICS & COMMERCIAL TRUST REIT 9.69%
MAPLETREE COMMERCIAL TRUST 9.43%
MAPLETREE LOGISTICS TRUST 9.35%
KEPPEL DC REIT 8.45%
MAPLETREE INDUSTRIAL TRUST 7.98%
CAPITALAND ASCOTT TRUST 5.90%
KEPPEL REIT 5.64%
4.09%

 

 

 

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

Phillip Capital

Stock Ticker BYJ (SGD) / BYI (USD)
Dividend Yield 4.38% (Jan 2024)
Expense Ratio 1.18%
Dividend Payout Semi-annual
Launch Date 20 Oct 2016
Fund Size USD 8.97 million
Benchmark Index iEdge APAC Ex-Japan Dividend Leaders REIT Index

Top Holdings:

Scentre Group 9.54% Australia
Link REIT 8.31% Hong Kong
CapitaLand Ascendas REIT Trust 6.24% Singapore
CapitaLand Integrated Commercial Trust 6.22% Singapore
Vicinity Ltd 5.89% Australia
Goodman Group 5.84% Australia
Dexus 5.77% Australia
Stockland 5.36% Australia
GPT Group 5.11% Australia
Mirvac Group 4.25% 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

UOB Asset Management

Stock Ticker GRN
Dividend Yield 6.51% (Mar 2024)
Expense Ratio 0.45%
Dividend Payout Semi-annual
Launch Date Nov 2021
Fund Size SGD 59.44 million
Benchmark Index iEdge-UOB APAC Yield Focus Green REIT Index

Top Holdings:

SCENTRE GROUP 7.23% Australia
STOCKLAND 6.36% Australia
CAPITALAND INTEGRATED COMMERCIAL TRUST 6.13% Singapore
LINK REIT 5.62% Hong Kong
VICINITY LTD 5.53% Australia
GPT GROUP/THE 5.32% Australia
DEXUS 4.97% Australia
JAPAN METROPOLITAN FUND INVEST 3.56% Japan
MIRVAC GROUP 3.56% Australia
GLP J-REIT 3.23% 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.