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Highlights of SGX's First Regional REIT ETF

By Geoff Howie

Highlights of SGX's First Regional REIT ETF

Highlights of SGX's First Regional REIT ETF

  • The Phillip SGX APAC Dividend Leaders REIT ETF made its trading debut yesterday on SGX. This ETF captures 30 top dividend REITs from different markets – including 14 SGX-listed REITs – providing investors access to a basket of diversified, high-yield REITs across the Asia-Pacific region through a single investment.
  • This ETF tracks the SGX APAC ex-Japan Dividend Leaders REIT Index, which generated a total return of 12.1% in the 2016 year-to-date, and maintains a yield of 5.0%. The Index, which has a total market capitalisation of S$189.1 billion, comprises 14 Singapore-listed REITs, 14 Australia-listed REITs and two Hong Kong-listed REITs.
  • In the YTD, the five best-performing constituents of the SGX APAC ex-Japan Dividend Leaders REIT Index are all Singapore REITs. They are Keppel REIT (+26.1%), Mapletree Commercial Trust (+26.1%), CapitaLand Commercial Trust (+26.0%), Frasers Centrepoint Trust (+22.4%) and Mapletree Greater China Commercial Trust (+22.1%).

Phillip SGX APAC Dividend Leaders REIT ETF

The Phillip SGX APAC Dividend Leaders REIT ETF made its trading debut yesterday on Singapore Exchange. This ETF captures 30 top dividend REITs from different markets, including 14 SGX-listed REITs, providing investors access to a basket of diversified, high-yield REITs across the Asia-Pacific region through a single investment. It is the first physically replicated (cash-based) REIT ETF listed on the Mainboard, as well as Phillip Capital’s maiden ETF issue.

The ETF, which had more than S$40 million in subscription, offered competitive bid-ask spreads of 1 to 3 ticks and saw a traded value of over S$2 million on its first day. The ETF, which trades in both in US Dollar (US$) and Singapore Dollar (S$), is classified as an Excluded Investment Product (EIP). It has a board lot size of 100 units, with a minimum bid size of US$0.001 and S$0.001 respectively.

Currency denomination
available for trading
Trading currency Trading name Abbreviated name Stock code ISIN code
Primary currency counter US$ PHLP AP DIV REIT US$ PAREIT BYI SG1DB9000009
Secondary currency counter S$ PHLP AP DIV REIT S$ PAREITS$ BYJ

SGX APAC ex-Japan Dividend Leaders REIT Index

This ETF tracks the SGX APAC ex-Japan Dividend Leaders REIT Index, created by SGX Index Edge, underscoring SGX’s index engineering and customization capabilities. The dividend-weighted index measures the performance of REITs that pay the highest dividends within the Asia Pacific ex-Japan region, capturing over 70% of the region’s REIT universe by total capitalisation, taking into account size, free-float and liquidity factors. All constituent weights are capped at 10% to ensure greater portfolio diversification.

The SGX APAC ex-Japan Dividend Leaders REIT Index, which has a total market capitalisation of S$189.1 billion, comprises 14 Singapore-listed REITs, 14 Australia-listed REITs and two Hong Kong-listed REITs. The index is well-diversified, with constituents from various sub-industries such as Diversified REITs, Hotel and Resort REITs, Industrial REITs, Office REITs, Residential REITs and Retail REITs. The Index generated a total return of 12.1% in the 2016 year-to-date and maintains a dividend yield of 5.0%.

In comparison, the MSCI World REIT Index has generated a total return of 5.1% in Singapore dollar terms over the same period, and maintains a yield of 4.2%.

S-REIT Constituents

The 14 Singapore-listed REITs in the Index averaged a total return of 16.2% in the YTD and maintain an average yield of 6.4%. These 14 trusts make up 30.0% of the SGX APAC ex-Japan Dividend Leaders REIT Index by weight, with Ascendas REIT topping the list.

In the YTD, the five best-performing constituents of the SGX APAC ex-Japan Dividend Leaders REIT Index are all S-REITs. They are Keppel REIT (+26.1%), Mapletree Commercial Trust (+26.1%), CapitaLand Commercial Trust (+26.0%), Frasers Centrepoint Trust (+22.4%) and Mapletree Greater China Commercial Trust (+22.1%).

The 14 S-REIT constituents of the SGX APAC ex-Japan Dividend Leaders REIT Index are: Keppel REIT, Mapletree Commercial Trust, CapitaLand Commercial Trust, Frasers Centrepoint Trust, Mapletree Greater China Commercial Trust, Mapletree Industrial Trust, Suntec Real Estate Investment Trust, Starhill Global REIT, CapitaLand Mall Trust, Mapletree Logistics Trust, Ascendas Real Estate Investment Trust, CDL Hospitality Trusts, Ascott Residence Trust, and Cache Logistics Trust.

For more information on the ETF, click here.

For more information on the Index, click here.

Month-to-Date ETF Performances

The five most active ETFs on SGX in the October month-to-date were db x-trackers MSCI AC Asia Ex Japan Index UCITS ETF, SPDR® Gold Shares ETF, iShares MSCI India Index ETF, SPDR® Straits Times Index ETF and db x-trackers MSCI Thailand Index UCITS ETF (DR). These five most active ETFs averaged a total return of -0.2% in the MTD, bringing their one-year and three-year total returns to 4.1% and 14.1% respectively.

The five most active ETFs in October 2016 are detailed below in Singapore dollars and sorted by MTD turnover.

Name MTD Turnover 2016 MTD Turnover 2015 YTD Turnover 2016 12M Turnover YTD Turnover 2015
db x-trackers MSCI AC Asia Ex Japan Index UCITS ETF 170,041,587.97 93,165,710.90 276,814,217.36 279,225,240.41 232,982,513.04
SPDR® Gold Shares ETF 36,646,765.79 34,502,949.57 587,896,214.81 655,161,364.18 402,334,017.22
iShares MSCI India Index ETF 18,760,606.26 26,490,727.15 314,801,136.40 410,388,627.85 488,778,659.70
SPDR® Straits Times Index ETF 16,585,178.00 14,661,389.00 297,762,295.00 339,876,608.00 357,643,572.00
db x-trackers MSCI Thailand Index UCITS ETF (DR) 12,351,400.17 1,978,936.88 73,100,643.85 75,515,720.53 32,893,427.39

Source: Source: SGX, Bloomberg & SGX StockFacts (data as of 20 Oct 2016)

Name Total Return MTD % Total Return 12M % 3 Year Total Return Annualized % 3 Year Total Return % 30 Day Volatility Total Return YTD %
db x-trackers MSCI AC Asia Ex Japan Index UCITS ETF 1.3 5.2 N/A N/A 15.7 9.2
SPDR® Gold Shares ETF -3.1 7.2 2.1 6.3 10.9 16.1
iShares MSCI India Index ETF 1.7 1.2 11.4 38.4 18.8 7
SPDR® Straits Times Index ETF -0.7 -2.6 -0.8 -2.4 9.4 1
db x-trackers MSCI Thailand Index UCITS ETF (DR) -0.2 9.4 N/A N/A 31.3 20.2

Source: SGX, Bloomberg & SGX StockFacts (data as of 20 Oct 2016)

ETFs are investment funds listed and traded intraday on a stock exchange. The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets.

Each ETF gives investors access to the performance of the asset that comprises the underlying index. Investing in the ETF is also less costly if one was to build a similar portfolio by buying the individual stocks. It also provides exposure to international markets and asset classes that may be inaccessible to individual investors.

Do join us at SGX Market Outlook 2017 Conference and get more insights on upcoming market trends, strategies for 2017 and Singapore’s first regional REIT ETF – a basket of Top 30 REITs that pay the largest dividend within APAC ex-Japan – and how you can construct an efficient ETF portfolio to suit your investment goals.

SGX Market Outlook 2017: Finding Income and Managing Risk Forum

When: 26 November, Saturday

Time: 10am to 1pm (Registration starts at 9.20am)

Venue: The Star Performing Arts Centre, Level 3

Registration is FREE

To register, please visit notice.shareinvestor.com/sgxmarketoutlook

SGX Market Outlook 2017: Finding Income and Managing Risk Forum

Geoff Howie
Geoff Howie

Mr Howie is the Singapore Exchange's Market Strategist - and the key contributor to the educational content and market insights of SGX My Gateway. He is also part of the Associate Faculty at SIM University,  educating students on the fundamentals of investing. 

He previously held lead broking and strategist roles across the Asia Pacific offices of a large international futures broker. Outside of his 15 year career in the financial markets he has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament.

Following High School in Hong Kong, he attended University of Queensland, receiving a Bachelors and Master's degree in Economics, the latter extending into deferred PhD work after receiving the highest grading for first-mover research and modelling conducted on the Shanghai economy.

Mr Howie's other notable achievements include receiving two Hong Kong Securities Institute Outstanding Achievers awards for the 2005 year.