There’s been a renewed interest in REITs following the rate cuts earlier this month. However, you might be wondering which specific REITs suit best in capitalising such macro events and how they can fit into your portfolio.
Whether to yield the highest returns or produce the most distribution yield, there are simply too many options to consider. In such cases, REITs ETF may be a viable option that would fit the needs of these investors.
Table of Contents
- How REIT ETFs Can Fit in Your Portfolio
- REIT ETFs Listed in Singapore
- How to Choose REIT ETFs
- How to Buy REIT ETFs in Singapore
- Syfe’s REIT+ — A Better Alternative to REIT ETFs in Singapore
How REIT ETFs Can Fit in Your Portfolio
By having REIT ETFs within your portfolio, investors will be able to gain exposure to the real estate market without having the trouble of handpicking individual REITs. Additionally, savvy investors know that it’s always more prudent to own a portfolio of REITs from different sectors, rather than just a few individual REITs, and REITs ETF will be able to provide such diversification into your portfolio.
REIT ETFs Listed in Singapore
| Ticker | Name | Benchmark | Asset Under Management(AUM) | Inception Date | Geographical Area |
| CLR | Lion-Phillip S-Reit ETF | Morningstar® Singapore REIT Yield Focus Index | 453.7 Mil | 30 Oct2017 | Singapore |
| CFA | NikkoAM- StraitsTrading Asia Ex Japan REIT ETF | FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Index. | 316.78 Mil | 29 March 2017 | Asia Ex-Japan |
| SRT | CSOP iEdge S-Reit Leaders Index ETF | iEdge S-Reit Leaders Index ETF | 68.3 Mil | 18 Nov 2021 | Singapore |
| GRE | UOB Apac Green Reit ETF | iEdge-UOB APAC Yield Focus Green REIT index. | 60.24 Mil | 23 Nov 2021 | Asia Pacific |
| BYJ | Phillip SGX Apac Dividend Leaders REIT ETF | iEdge APAC Ex-Japan Dividend Leaders REIT Index | 7.5 Mil | 20 Oct 2016 | Asia Ex-Japan |
Lion-Phillip S-Reit ETF (SGX: CLR)
Lion-Philip S-REITs ETF is the largest ETF in Singapore with an AUM of 453.7 million. Its investments are purely focused on Singapore REITs, featuring 25 high-quality S-REITs such as Mapletree Industrial Trust and Frasers Centrepoint Trust.
This REIT ETF offers investors exposure to sectors like healthcare, retail, and industrial, with most of its funds allocated to industrial REITs, retail REITs, and office REITs.
NikkoAM-StraitsTrading Asia Ex Japan REIT ETF (SGX: CFA)
NikkoAM-StraitsTrading Asia Ex Japan REIT ETF tracks the performance of the FTSE ERPA Nareit Asia ex Japan REITS 10% Capped Index. The ETF provides investors with exposure to a basket of REITs in the Asia ex-Japan region.
The ETF is one of the largest by far in Singapore, second only to Lion-Phillip S-Reit ETF (CLR). While most of its investment focus resides in Singapore (68.4%), REITs outside of Singapore such as Hong Kong(12.6%), India(9.5%), South Korea (3.5%) are also included, providing a wider exposure to the Asia market.
CSOP iEdge S-Reit Leaders Index ETF (SGX: SRT)
The CSOP iEdge S-REIT Leaders ETF strives to replicate the performance of the iEdge S-REIT Leaders Index. The ETF currently has an AUM of 68.3mil and, similar to CLR, is exposed purely in Singapore.
UOB APAC Green Reit ETF (SGX: GRE)
UOB APAC Green Reit ETF closely corresponds to the performance of the iEdge-UOB APAC Yield Focus Green REIT Index and is the world’s first APAC Green REITs ETF. Investors that are looking for ways to invest in sustainability buildings and practices can consider GRE.
Phillip SGX APAC Dividend REIT ETF (SGX: BYJ)
Phillip SGX APAC Dividend REIT ETF tracks the performance of the iEdge APAC Ex-Japan Dividend Leaders REIT index. Made up of REITs from APAC (excluding Japan), this ETF is designed to provide dividend income and moderate capital appreciation.
How to Choose REIT ETFs
Even then, some investors are still unsure on which REIT ETFs to consider and fit into their portfolios. As such, there are still certain key metrics and indicators that provide these investors with the necessary guidance to their investment decisions.
| Name | Total Returns YTD (%) | AUM (Mil) | Distribution Yield (%) p.a | Distribution Frequency | Expense Ratio | Tracking Error |
| Lion-Phillip S-Reit ETF | 1.94 | 453.7 | 4.89 | Semi-annual | 0.60% p.a | – |
| NikkoAM- StraitsTrading Asia Ex Japan REIT ETF | 0.43 | 340.1 | 5.70 | Quarterly | 0.55% p.a | 0.24% |
| CSOP iEdge S-Reit Leaders Index ETF | 1.13 | 68.3 | 5.86 | Semi-annual | 0.50% p.a | 0.23% |
| UOB APAC Green Reit ETF | 1.60 | 60.24 | 3.82 | Semi-annual | 0.45% p.a | 0.50% |
| Phillip SGX APAC Dividend Leaders REIT ETF | 4.83 | 7.5 | 4.05 | Semi-annual | 1.69% p.a | 1.87% |
Asset Under Management (AUM)
One of the main indicators would be the AUM of the respective funds. The AUM reflects the size of the ETF and can indicate liquidity and investor confidence, and the larger the AUM the more stable the fund as a larger AUM reflects easier entry or exit points for investors.
Distribution Yield and Frequency
These factors affect how much income you can expect and how often. A higher yield is attractive but investors will also have to consider the stability of income. More frequent distributions may be preferable as well for income-focused investors and to have a clearer insight into the performance of the ETF as compared to those that only have semi-annually frequencies.
Expense Ratio
Expense ratio represents the total percentage of fund assets used for administrative, management, advertising, and all other expenses. As such, the lower the expense ratio, the better. Amongst the 5 ETFs, with the exception of BYJ, all the funds have relatively low expense ratio.
Tracking Error
In the long term, tracking error can be used to evaluate how consistently an index fund manager is meeting benchmark returns over time.
Tracking error measures how consistently an ETF follows its benchmark or index. It is the volatility of that return difference
With a low expense ratio and a lower tracking error, there will be a reduced likelihood of incurring costs from volatile performance, no matter your investment horizon.
ETF Components, Sector Exposure and Geographical Exposure
Savvy investors know that it’s always more prudent to own a portfolio of REITs from different sectors. With such allocation and diversification in mind, investors can look further into the funds to identify ETFs that comprise a spread of REITs of different sectors and geographical allocation.
How to Buy REIT ETFs in Singapore
The next step would be to buy the asset class before it is too late. But to new investors, where can they start? The easiest way is to open a brokerage account to gain access to the market. Once done, fund the necessary account and purchase the desired REIT ETF aligned with your risk and return profile.
Syfe’s REIT+ — A Better Alternative to REIT ETFs in Singapore
Syfe REIT+: If you’re looking to gain diversified exposure to S-REITs, Syfe REIT+ is the ideal managed portfolio for you. Through REIT+, you can access the largest and most tradable REITs in Singapore.
Syfe REIT+ vs REIT ETFs
Launched in partnership with the SGX, REIT+ is the first investment offering designed to closely replicate the performance of the iEdge S-REIT Leaders Index. Compared to REIT ETFs, there are the benefits of investing in REIT+:
- Portfolio re-optimisation: This portfolio offers exposure to the top 20 SGD-denominated REITs, selected based on their liquidity, large market capitalisations, and reputable management. The optimisation process, especially the exclusion of USD-denominated REITs such as the Manulife US REIT has contributed to the outperformance of REIT+ portfolios.
Plus, you benefit from automatic rebalancing twice a year, aligning with the iEdge S-REIT Leaders Index, so you can enjoy a hassle-free investment experience.
- Automatic dividend reinvestment: You have the flexibility to choose between quarterly dividend payouts and automatic dividend reinvestment if you don’t need the extra income. Automatic dividend reinvestment helps boost long-term returns.
- Lower total costs: Compared to S-REITs ETFs, you don’t have to pay transaction costs. There are no minimum investment requirements, all brokerage costs are absorbed by Syfe, and overall management fees range from 0.25% to 0.65% per annum.
New to Syfe? Start your investment journey with us and sign up for an account to enjoy 3 months of fee waivers on Managed Portfolio and up to $100 cash credits on Brokerage*.
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