Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<ul>
<li>
REIT popularity in Singapore is exemplified in multiple ways – they comprise about 1/10th of STI constituents, all the STI Reserve List stocks, and approximately 1/10th of the total market cap of stocks on SGX. SGX lists a total of 45 REITs &amp; property Trusts with a combined market cap of over S$100 billion. 
	 </li>
	<li>
The Phillip SGX APAC Dividend Leaders REIT ETF is the first REIT ETF launched in Oct 2016 that tracks the iEdge APAC ex-Japan Dividend Leaders REIT Index. The NikkoAM-StraitsTrading Asia ex-Japan REIT ETF, unveiled in March 2017, has the FTSE EPRA/NAREIT Asia ex-Japan REITs Index as its underlying index. The Lion-Phillip S-REIT ETF, rolled out in Oct 2017, tracks the Morningstar® Singapore REIT Yield Focus Index. 
	 </li>
	<li>The total traded value of SGX’s three REIT ETFs has been steadily rising over the past year. For the March MTD, total turnover hit S$57.3 million, up 82.5% MoM and more than 4x YoY.</li>
</ul>
 

REIT popularity in Singapore is exemplified in multiple ways – they comprise about one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, and approximately one-tenth of the total market capitalisation of stocks listed on SGX.

SGX lists a total of 45 REITs &amp; property Trusts with a combined market cap of over S$100 billion. Two REITs that listed on SGX so far this year were United Hampshire US REIT – Asia’s first US grocery-anchored shopping centre and self-storage REIT, and Elite Commercial REIT, SGX’s first UK-focused REIT.

SGX also lists three REIT ETFs:

<ul>
<li>The <a href="http://www.phillipfunds.com/home/etfs">Phillip SGX APAC Dividend Leaders REIT ETF</a> is the first REIT ETF launched by Phillip Capital Management in October 2016. Tracking the iEdge APAC ex-Japan Dividend Leaders REIT Index, the fund focuses on REITs across the Asia-Pacific region. 
	 </li>
	<li>The <a href="https://www.nikkoam.com.sg/etf/asia-ex-japan-reit-sgd">NikkoAM-StraitsTrading Asia ex-Japan REIT ETF</a>, launched by Nikko Asset Management and Straits Trading Company in March 2017, tracks the FTSE EPRA/NAREIT Asia ex-Japan REITs Index. SGX-listed REITs make up 70% of the fund, while REITs from the rest of the Asian countries, including Hong Kong, China and Malaysia, comprise the remaining 30%. 
	 </li>
	<li>The <a href="http://www.lionglobalinvestors.com/en/funds/lion-phillip-s-reit-etf/index.html#dashBoard?fcode=LEPF">Lion-Phillip S-REIT ETF</a>, rolled out by Lion Global Investors and Phillip Capital Management in October 2017, tracks the Morningstar® Singapore REIT Yield Focus Index. This is the first REIT ETF in the world with Singapore REITs accounting for 100% of its constituents.</li>
</ul>
The total traded value of SGX’s three REIT ETFs has been steadily rising over the past year. For the March month-to-date, total turnover hit S$57.3 million, up 82.5% MoM and more than four-fold YoY.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-03/REIT%20ETF%20Turnover.PNG' alt='REIT Turnover' />
 </figure>
 <div class='content-caption'>REIT Turnover</div>
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The three REIT ETFs average a dividend yield of 6.6% in SGD terms. In the 2020 year-to-date, the trio have averaged a total return of -30.8% in SGD terms, bringing their one-year total return to -24.5%. The total YTD net inflow for the three ETFs was S$42.3 million.

The tables below detail the three REIT ETFs listed on SGX, sorted by inception date.

<table class="table table-striped"><tbody>
<tr>
<td>
			ETF Name
			</td>
			<td>
			Underlying Index
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Trading Currency
			</td>
			<td>
			Expense Ratio (%)
			</td>
			<td>
			Fund Size (S$M)
			</td>
			<td>
			YTD Net Inflow 
			(S$M)
			</td>
			<td>
			Fund Inception Date
			</td>
		</tr>
<tr>
<td rowspan="2">
			NIKKO AM-STRAITS TRADING ASIA EX-JAPAN REIT ETF
			</td>
			<td rowspan="2">
			FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index
			</td>
			<td>
			CFA
			</td>
			<td>
			SGD
			</td>
			<td rowspan="2">
			0.60
			</td>
			<td rowspan="2">
			213.2
			</td>
			<td rowspan="2">
			31.4
			</td>
			<td rowspan="2">
			29-Mar-17
			</td>
		</tr>
<tr>
<td>
			COI
			</td>
			<td>
			USD
			</td>
		</tr>
<tr>
<td>
			LION-PHILLIP S-REIT ETF
			</td>
			<td>
			Morningstar® Singapore REIT Yield Focus Index℠
			</td>
			<td>
			CLR
			</td>
			<td>
			SGD
			</td>
			<td>
			0.60
			</td>
			<td>
			125.3
			</td>
			<td>
			10.5
			</td>
			<td>
			30-Oct-17
			</td>
		</tr>
<tr>
<td rowspan="2">
			PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF
			</td>
			<td rowspan="2">
			iEdge APAC ex Japan Dividend Leaders REIT Index
			</td>
			<td>
			BYI
			</td>
			<td>
			USD
			</td>
			<td rowspan="2">
			0.91
			</td>
			<td rowspan="2">
			16.8
			</td>
			<td rowspan="2">
			0.4
			</td>
			<td rowspan="2">
			20-Oct-16
			</td>
		</tr>
<tr>
<td>
			BYJ
			</td>
			<td>
			SGD
			</td>
		</tr>
<tr>
<td> </td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td> </td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			ETF Name
			</td>
			<td>
			Underlying Index
			</td>
			<td>
			Stock Code
			</td>
			<td>
			Trading Currency
			</td>
			<td>
			YTD Total Return (%)
			</td>
			<td>
			1Y Total Return (%)
			</td>
			<td>
			3Y Total Return  (%)
			</td>
			<td>
			12M Div Yld (%)
			</td>
		</tr>
<tr>
<td rowspan="2">
			NIKKO AM-STRAITS TRADING ASIA EX-JAPAN REIT ETF
			</td>
			<td rowspan="2">
			FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index
			</td>
			<td>
			CFA
			</td>
			<td>
			SGD
			</td>
			<td>
			-25.2
			</td>
			<td>
			-19.6
			</td>
			<td rowspan="2">
			NA
			</td>
			<td>
			5.3
			</td>
		</tr>
<tr>
<td>
			COI
			</td>
			<td>
			USD
			</td>
			<td>
			-31.3
			</td>
			<td>
			-25.9
			</td>
			<td>
			5.7
			</td>
		</tr>
<tr>
<td>
			LION-PHILLIP S-REIT ETF
			</td>
			<td>
			Morningstar® Singapore REIT Yield Focus Index℠
			</td>
			<td>
			CLR
			</td>
			<td>
			SGD
			</td>
			<td>
			-28.7
			</td>
			<td>
			-19.1
			</td>
			<td>
			NA
			</td>
			<td>
			7.0
			</td>
		</tr>
<tr>
<td rowspan="2">
			PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF
			</td>
			<td rowspan="2">
			iEdge APAC ex Japan Dividend Leaders REIT Index
			</td>
			<td>
			BYI
			</td>
			<td>
			USD
			</td>
			<td>
			-43.9
			</td>
			<td>
			-40.3
			</td>
			<td>
			-9.7
			</td>
			<td>
			8.1
			</td>
		</tr>
<tr>
<td>
			BYJ
			</td>
			<td>
			SGD
			</td>
			<td>
			-38.4
			</td>
			<td>
			-34.7
			</td>
			<td>
			-8.1
			</td>
			<td>
			7.4
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; SGX (data as of 19 March 2020)

 

Investing in ETFs 
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.

To find out more about ETFs, visit <a href="http://www.sgx.com/etf">www.sgx.com/etf</a>.
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REIT popularity in Singapore is exemplified in multiple ways – they comprise about 1/10th of STI constituents, all the STI Reserve List stocks, and approximately 1/10th of the total market cap of stocks on SGX. SGX lists a total of 45 REITs &amp; property Trusts with a combined market cap of over S$100 billion.  
	 
	
The Phillip SGX APAC Dividend Leaders REIT ETF is the first REIT ETF launched in Oct 2016 that tracks the iEdge APAC ex-Japan Dividend Leaders REIT Index. The NikkoAM-StraitsTrading Asia ex-Japan REIT ETF, unveiled in March 2017, has the FTSE EPRA/NAREIT Asia ex-Japan REITs Index as its underlying index. The Lion-Phillip S-REIT ETF, rolled out in Oct 2017, tracks the Morningstar® Singapore REIT Yield Focus Index.  
	 
	The total traded value of SGX’s three REIT ETFs has been steadily rising over the past year. For the March MTD, total turnover hit S$57.3 million, up 82.5% MoM and more than 4x YoY.

 

REIT popularity in Singapore is exemplified in multiple ways – they comprise about one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, and approximately one-tenth of the total market capitalisation of stocks listed on SGX.

SGX lists a total of 45 REITs &amp; property Trusts with a combined market cap of over S$100 billion. Two REITs that listed on SGX so far this year were United Hampshire US REIT – Asia’s first US grocery-anchored shopping centre and self-storage REIT, and Elite Commercial REIT, SGX’s first UK-focused REIT.

SGX also lists three REIT ETFs:


The Phillip SGX APAC Dividend Leaders REIT ETF is the first REIT ETF launched by Phillip Capital Management in October 2016. Tracking the iEdge APAC ex-Japan Dividend Leaders REIT Index, the fund focuses on REITs across the Asia-Pacific region. 
	 
	The NikkoAM-StraitsTrading Asia ex-Japan REIT ETF, launched by Nikko Asset Management and Straits Trading Company in March 2017, tracks the FTSE EPRA/NAREIT Asia ex-Japan REITs Index. SGX-listed REITs make up 70% of the fund, while REITs from the rest of the Asian countries, including Hong Kong, China and Malaysia, comprise the remaining 30%. 
	 
	The Lion-Phillip S-REIT ETF, rolled out by Lion Global Investors and Phillip Capital Management in October 2017, tracks the Morningstar® Singapore REIT Yield Focus Index. This is the first REIT ETF in the world with Singapore REITs accounting for 100% of its constituents.

The total traded value of SGX’s three REIT ETFs has been steadily rising over the past year. For the March month-to-date, total turnover hit S$57.3 million, up 82.5% MoM and more than four-fold YoY.



      
    
    REIT Turnover


The three REIT ETFs average a dividend yield of 6.6% in SGD terms. In the 2020 year-to-date, the trio have averaged a total return of -30.8% in SGD terms, bringing their one-year total return to -24.5%. The total YTD net inflow for the three ETFs was S$42.3 million.

The tables below detail the three REIT ETFs listed on SGX, sorted by inception date.




			ETF Name
			
			
			Underlying Index
			
			
			Stock Code
			
			
			Trading Currency
			
			
			Expense Ratio (%)
			
			
			Fund Size (S$M)
			
			
			YTD Net Inflow 
			(S$M)
			
			
			Fund Inception Date
			
		


			NIKKO AM-STRAITS TRADING ASIA EX-JAPAN REIT ETF
			
			
			FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index
			
			
			CFA
			
			
			SGD
			
			
			0.60
			
			
			213.2
			
			
			31.4
			
			
			29-Mar-17
			
		


			COI
			
			
			USD
			
		


			LION-PHILLIP S-REIT ETF
			
			
			Morningstar® Singapore REIT Yield Focus Index℠
			
			
			CLR
			
			
			SGD
			
			
			0.60
			
			
			125.3
			
			
			10.5
			
			
			30-Oct-17
			
		


			PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF
			
			
			iEdge APAC ex Japan Dividend Leaders REIT Index
			
			
			BYI
			
			
			USD
			
			
			0.91
			
			
			16.8
			
			
			0.4
			
			
			20-Oct-16
			
		


			BYJ
			
			
			SGD
			
		

 
			 
			 
			 
			 
			 
			 
			 
		

 




			ETF Name
			
			
			Underlying Index
			
			
			Stock Code
			
			
			Trading Currency
			
			
			YTD Total Return (%)
			
			
			1Y Total Return (%)
			
			
			3Y Total Return  (%)
			
			
			12M Div Yld (%)
			
		


			NIKKO AM-STRAITS TRADING ASIA EX-JAPAN REIT ETF
			
			
			FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index
			
			
			CFA
			
			
			SGD
			
			
			-25.2
			
			
			-19.6
			
			
			NA
			
			
			5.3
			
		


			COI
			
			
			USD
			
			
			-31.3
			
			
			-25.9
			
			
			5.7
			
		


			LION-PHILLIP S-REIT ETF
			
			
			Morningstar® Singapore REIT Yield Focus Index℠
			
			
			CLR
			
			
			SGD
			
			
			-28.7
			
			
			-19.1
			
			
			NA
			
			
			7.0
			
		


			PHILLIP SGX APAC DIVIDEND LEADERS REIT ETF
			
			
			iEdge APAC ex Japan Dividend Leaders REIT Index
			
			
			BYI
			
			
			USD
			
			
			-43.9
			
			
			-40.3
			
			
			-9.7
			
			
			8.1
			
		


			BYJ
			
			
			SGD
			
			
			-38.4
			
			
			-34.7
			
			
			-8.1
			
			
			7.4
			
		

Source: Bloomberg &amp; SGX (data as of 19 March 2020)

 

Investing in ETFs 
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.

To find out more about ETFs, visit www.sgx.com/etf.



Monthly Turnover of SGX’s Three REIT ETFs Surge