Many investors might be in such contradiction that they are ready to get more hands-on with your investing but don't want to put too much effort into picking stocks. In recent years, investors have paid more attention to alternative investing.
The real estate investment trusts in Singapore (S-REITs) became an asset type that many local investors are familiar with, which form a significant representation in the Singapore market and provide real estate exposure in a liquid way in a portfolio to improve the risk-adjusted return.
As Singapore heralds a shift from a pandemic to the endemic stage, it is expected that Singapore’s economy will rebound by 6.5% in 2021 and grow by 4% in 2022 on the back of sustained global recovery.
From historical data, S-REITs have provided long-term sustainable total returns and dividend yields which are generally more favorable compared to REITs in other established markets.
Over the last 10 years, S-REITs have averaged an annualized total return of 10.7%and 90-day volatility of 10.5%, which is competitive among major equity indexes.
Source: SGX, Bloomberg. As of 30 September 2021
Despite the downturn and impact from COVID-19, the diversified nature of S-REITs in terms of sub-sectors played a part in its resilience during the sell-down last year.
Introducing the CSOP iEdge S-REIT Leaders Index ETF
The CSOP iEdge S-REIT Leaders Index ETF gives investors another option to invest in S-REITs. This ETF has an investment objective to replicate as closely as possible, before fees and expenses, the performance of the iEdge S-REIT Leaders Index.
The iEdge S-REIT Leaders Index, which is compiled and maintained by SGX, is the most liquid representation of the S-REIT Market in Singapore. It is an adjusted free-float market capitalization weighted index that measures the performance of the largest and most tradable REITs in Singapore.
As of 30 June 2021, the five-year annualized total return of the index in Singapore dollars was 9.9%, while the price return was 4.4%.
Source: iEdge S-REIT Indices Factsheet
According to Bloomberg consensus, it is expected that the index to deliver dividend yields of 5.4% and 5.6% for FY22 and FY23 respectively.
As of 30 September 2021, the number of holdings of the index is 28, and the 10 largest constituents are as followed.
Follow the below instructions to subscribe to SG ETF in 4 steps!
For more information, please refer to iEdge S-REIT Indices and Prospectus.
* The stock market is risky and you must be cautious before entering it. Please engage in securities investment or futures trading through legal licensed securities or futures companies. This document should not be regarded as a recommendation or solicitation for the purchase or sale of securities, futures, or other financial products or services. The document provided does not take into account your investment objectives, financial situation, or particular needs. It is possible that the price of a new stock can fall below its issue price on the first trading day. Please participate in the subscription after you have comprehensively considered the risks.
This advertisement has not been reviewed by the Monetary Authority of Singapore.