Investors keen for a Singapore-listed REIT ETF with exposure across the Asia-Pacific region now have two options.
Nikko Asset Management and Straits Trading have now entered the fray, announcing the Nikko AM-Straits Trading Asia ex Japan REIT ETF teaming in early March 2017.
This ETF is slated to list on the Singapore Exchange (SGX) on 29 March the same year, and has estimated dividends of about 5% per annum based on distribution of the components REITs.
It joins the Phillip SGX APAC Dividend Leaders REIT ETF, which was listed in October 2016.
But which REIT ETF should you choose given the subtle, but important nuances between the two Singapore REIT ETFs in terms of diversity, geographical coverage, and property types?
The following table gives a summary of the similarities, but more importantly the differences between the two REIT ETFs.
REIT ETF | Nikko AM-Straits Trading Asia ex Japan REIT ETF | Phillip SGX APAC Dividend Leaders REIT ETF |
---|---|---|
Tracks | FTSE EPRA/NAREIT Asia ex Japan Net Total Return Index | SGX APAC ex Japan Dividend REIT Index |
Constituents | 23 | 30 |
Fee (per annum) | 0.5% | 0.5% |
Economies | Hong Kong, Malaysia, Singapore | Australia, Hong Kong, Singapore |
Largest constituent | Singapore's Ascendas REIT (10.28%) | Hong Kong's Link REIT (11.21%) |
Listed | March 2017 | October 2016 |
Primary property type | Retail REITs | Industrial REITs |
(This information is correct as at the time and date of publishing)
In summary, both ETFs will feature the same annual management fee of 0.5% per annum.
Secondly, investors looking for greater diversification in terms of geographical coverage are probably better suited for the Phillip SGX APAC Dividend Leaders REIT ETF, given a significant number of REIT constituents with exposure to the Australian market, on top of a greater number of REIT constituents.
Its counterpart, in comparison, is largely exposed to markets in Asia.
And thirdly, the Phillip SGX APAC Dividend Leaders REIT ETF is more exposed to the industrial sector as compared to the Nikko AM-Straits Trading Asia ex Japan REIT ETF, which is relatively more retail-heavy.
Investors looking to capitalise on the growth in middle-class spending in the Asian region, may be better poised with the latter.
Full constituents of the two REIT ETFs are given in the tables below:
Nikko AM-Straits Trading Asia ex Japan REIT ETF
REIT | Country | Type | Capped Index (%) |
---|---|---|---|
Ascott REIT | Singapore | Hospitality | 2.15 |
Hui Xian REIT | Hong Kong | Diversified | 3.2 |
Spring REIT | Hong Kong | Industrial + Office | 0.84 |
Yuexiu REIT | Hong Kong | Retail | 1.93 |
CapitaLand Retail China Trust | Singapore | Retail | 1.71 |
Mapletree Greater China Commercial Trust | Singapore | Retail | 4.15 |
Champion REIT | Hong Kong | Industrial + Office | 4.14 |
Link REIT | Hong Kong | Retail | 9.68 |
Fortune REIT | Hong Kong | Retail | 5 |
Lippo Malls Indonesia Retail Trust | Singapore | Retail | 1.78 |
First REIT | Singapore | Health | 1.49 |
Sunway REIT | Malaysia | Retail | 2.18 |
Pavilion REIT | Malaysia | Retail | 1.27 |
IGB REIT | Malaysia | Retail | 2.13 |
Mapletree Commercial Trust | Singapore | Diversified | 6.67 |
CDL Hospitality Trust | Singapore | Hospitality | 2.08 |
Mapletree Logistics Trust | Singapore | Industrial | 3.56 |
Keppel REIT | Singapore | Office | 4.43 |
Mapletree Industrial Trust | Singapore | Industrial | 4.77 |
Ascendas REIT | Singapore | Industrial | 10.28 |
CapitaLand Commercial Trust | Singapore | Office | 7.03 |
Suntec REIT | Singapore | Retail + Office | 9.62 |
CapitaLand Mall Trust | Singapore | Retail | 9.88 |
Phillip SGX APAC Dividend Leaders REIT ETF
REIT Name | Weight (%) | REIT Listed In |
---|---|---|
Link REIT | 11.21 | Hong Kong |
Scentre Group | 10.3 | Australia |
Stockland | 8.65 | Australia |
Westfield Corp | 8.23 | Australia |
Vicinity Centres | 7.48 | Australia |
GPT Group | 5.97 | Australia |
Mirvac Group | 5.82 | Australia |
Goodman Group | 5.66 | Australia |
Ascendas REIT | 4.47 | Singapore |
CapitaLand Mall Trust | 3.52 | Singapore |
Suntec REIT | 3.14 | Singapore |
CapitaLand Commercial Trust | 2.47 | Singapore |
Mapletree Industrial Trust | 1.93 | Singapore |
Mapletree Greater China Commercial Trust | 1.88 | Singapore |
Investa Office Fund | 1.76 | Australia |
Keppel REIT | 1.69 | Singapore |
Mapletree Commercial Trust | 1.56 | Singapore |
Mapletree Logistics Trust | 1.55 | Singapore |
Charter Hall Group | 1.38 | Australia |
Champion REIT | 1.28 | Hong Kong |
Charter Hall Retail REIT | 1.22 | Australia |
Shopping Centres Australasia Property | 1.19 | Australia |
BWP Trust | 1.06 | Australia |
Cache Logistics Trust | 1.05 | Singapore |
Ascott Residence Trust | 1.03 | Singapore |
Cromwell Property Group | 1.02 | Australia |
Starhill Global REIT | 0.97 | Singapore |
Frasers Centrepoint Trust | 0.92 | Singapore |
CDL Hospitality Trust | 0.88 | Singapore |
Abacus Property Group | 0.71 | Australia |