Singapore REIT ETFs: Nikko AM-Straits Trading and Philips-SGX APAC REIT ETFs compared

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 Philips 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.

(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 Philips 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 Philips 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

Philips SGX APAC Dividend Leaders REIT ETF