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

Capitaland Integrated Commercial Trust / Equity Bottom-Up

Capitaland Integrated Commercial Trust (CICT SP)





Today’s listing of the UOB APAC Green REIT ETF with an AUM of more than S$80 million, brings the number of REIT ETFs listed for trading on SGX to five, with their total AUM of S$780 million+, representing close to an 80% increase from a year ago. 
	 
	
The underlying Index of the ETF, the iEdge-UOB APAC Yield Focus Green REIT Index, focuses on environmental indicators when assessing REITs – energy consumption, water consumption, GHG emissions, and green building certifications, while maintaining a highly competitive dividend yield.  
	 
	
Both the iEdge-UOB APAC Yield Focus Green REIT Total Return Index and iEdge APAC REIT Total Return Index have recovered from broader REIT Sector declines in 2020, both surpassing February 2020 highs on 10 June 2021. This has brought the annualised total return of the iEdge-UOB APAC Yield Focus Green REIT Total Return Index to 8.4%.  
	 
	Of the 50 iEdge-UOB APAC Yield Focus Green REIT Index constituents, nine are listed in Singapore. This includes CICT, all four of the Mapletree Group sponsored REITs, FLCT, Suntec REIT, Keppel REIT, and the Business Trust Ascendas India Trust. Together the nine constituents make up 16% of the Index. 

 

With initial Assets under Management (“AUM’) of S$83 million, the UOB APAC Green REIT ETF began trading on SGX today. The second ETF to be listed within a week is benchmarked to the recently launched iEdge-UOB APAC Yield Focus Green REIT Index. This Index is comprised of 50 high-yielding REITs across the Asia-Pacific region, that meet environmental factor assessments by the global real estate sustainability benchmark (“GRESB”). GRESB is an industry-led organisation that was founded in 2009 that provides actionable and transparent ESG data to financial markets, collecting, validating, scoring and benchmarking ESG data to provide business intelligence, engagement tools and regulatory reporting solutions for investors, asset managers and the wider industry. As of October 2021, more than 140 institutional investors, representing over US$47 trillion AUM, use the GRESB benchmarks better understand the performance of their portfolios.  
The iEdge-UOB APAC Yield Focus Green REIT Index focuses on environmental indicators when assessing REITs – energy consumption, water consumption, GHG emissions, and green building certifications. In short, by applying the green tilt, the 50 current constituents of the Edge-UOB APAC Yield Focus Green REIT Index emit 7% less GHG emissions, consume 12% less water and 9% less energy than the non-green market-cap weighted version of the Index, while maintaining an competitive dividend yield. The average yield across the last 10 years for the Index is approximately 4.7%, while the ETF maintains an annual total expense ratio of 0.8%.  The logic of the green tilt comes from the fact that properties enclose people, and thus properties maintain one of largest carbon footprints, which according to the UN Environmental Program contribute 30% of global GHG emissions, while consuming 40% of world’s energy. Hence, there is an increasing focus on climate in this industry with a heightened environmental and social awareness. This is seeing corporate tenants reassess their strategies to meet sustainability targets, and portfolio investors reassess their exposure to stranding or transition risks. NAREIT maintain that REIT stakeholders have become increasingly impacted by and interested in corporate ESG performance, and that the ESG journey for REITs and publicly traded real estate is urgent, and has been accelerating. For the past three years, NAREIT has published annual report of the REIT industry’s ESG performance details the state of sustainability efforts in the publicly traded US REIT industry.  Both the iEdge-UOB APAC Yield Focus Green REIT Total Return Index and iEdge APAC REIT Total Return Index have recovered from declines in 2020, both surpassing February 2020 highs on 10 June 2021. This has brought the annualised total returns of the iEdge-UOB APAC Yield Focus Green REIT Total Return Index and iEdge APAC REIT Total Return Index to 8.4%. The premium of global REIT yields to Gov Bonds provided support for the global REIT market for a number of months in 2021. From the time 10 year UST yields topped out on 31 March near 1.75% through to their lows in early August near 1.20%, global REITs rallied by approximately 15%. By comparison, since 3 Aug, 10 year UST yields have returned to ~1.60%, with global REITs gaining 3%.  
At the latest September Semi-Annual Rebalance the Index was mostly weighted to Diversified REITs, Retail REITs and Office REITs, with 40% of the Index constituents listed in Japan, 36% listed in Australia listings, 16% weighted to Singapore listings and 8% weighted to Hong Kong listings.



      
    
    Index Breakdown by Exchange


Of the 50 iEdge-UOB APAC Yield Focus Green REIT Index constituents, nine are listed in Singapore. This includes CapitaLand Integrated Commercial Trust, all four of the Mapletree Group sponsored REITs, Frasers Logistic &amp; Commercial Trust, Suntec REIT, Keppel REIT, and the Business Trust Ascendas India Trust. This provides for a diverse representation of the S-REIT Sector, and while the iEdge-UOB APAC Yield Focus Green REIT Total Return Index has recovered to pre-COVID levels, not every constituent has recovered. For instance,  REITs that thrive with open borders like Suntec REIT are still trading below their early 2020 highs, while others, that cater to trade and logistics rather than consumers and hospitality, recovered earlier. For instance, Mapletree Industrial Trust had recovered from its March 2020 low within three months. With the uneven economic recovery an unfortunate symptom of COVID-constrained global growth, both Suntec REIT and Mapletree Industrial Trust have delivered diversified five year annualised total returns of 5% and 18% respectively.  With the listing of the UOB APAC Green REIT ETF today, SGX lists five REIT ETFs for trading with AUM of more than S$780 million, representing an approximate increase of 80% from a year ago. The table below details the broader ETF suite listed on SGX with AUM of S$12.1 billion as of 19 Nov. The table is sort by 2021 year to 19 Nov total returns, with all total returns denominated in SGD.




			ETF Name
			
			
			Pri Code
			
			
			Sec Code
			
			
			Issuer
			
			
			Total Expense Ratio %
			
			
			Fund Focus
			
			
			2021 YTD Total Return % [SGD]
			
			
			2021 YTD Inflow/ Outflow
			
			
			AUM S$M as of 19 Nov
			
		


			Xtrackers FTSE Vietnam Swap UCITS ETF
			
			
			HD9
			
			
			 
			
			
			XTrackers
			
			
			0.85
			
			
			Vietnam Equities
			
			
			32.8
			
			
			2
			
			
			19
			
		


			SPDR S&amp;P 500 ETF
			
			
			S27
			
			
			 
			
			
			SPDR
			
			
			0.09
			
			
			US Equities
			
			
			31.3
			
			
			16
			
			
			70
			
		


			Lyxor MSCI India UCITS ETF - Acc USD
			
			
			G1N
			
			
			 
			
			
			Lyxor
			
			
			0.85
			
			
			India Equities
			
			
			31.1
			
			
			 
			
			
			16
			
		


			iShares MSCI India Index ETF
			
			
			I98
			
			
			QK9
			
			
			Blackrock
			
			
			1.03
			
			
			India Equities
			
			
			28.5
			
			
			 
			
			
			146
			
		


			SPDR®  DJIA ETF TRUST
			
			
			D07
			
			
			 
			
			
			SPDR
			
			
			0.17
			
			
			US Equities
			
			
			23.6
			
			
			 
			
			
			4
			
		


			Nikko AM Singapore STI ETF
			
			
			G3B
			
			
			 
			
			
			Nikko AM
			
			
			0.3
			
			
			Singapore Equities
			
			
			16.2
			
			
			67
			
			
			612
			
		


			SPDR® Straits Times Index ETF 
			
			
			ES3
			
			
			 
			
			
			SPDR
			
			
			0.3
			
			
			Singapore Equities
			
			
			16.0
			
			
			-148
			
			
			1672
			
		


			Xtrackers MSCI Singapore UCITS ETF
			
			
			O9A
			
			
			 
			
			
			XTrackers
			
			
			0.5
			
			
			Singapore Equities
			
			
			13.1
			
			
			-2
			
			
			14
			
		


			Phillip APAC DIV REIT Leader ETF
			
			
			BYI
			
			
			BYJ
			
			
			Phillip
			
			
			0.91
			
			
			APAC Ex-Japan REITs
			
			
			10.4
			
			
			-4
			
			
			19
			
		


			ICBC CSOP FTSE Chinese Government Bond ETF
			
			
			CYC
			
			
			CYB
			
			
			CSOP AM
			
			
			0.25
			
			
			China Bonds
			
			
			9.1
			
			
			305
			
			
			1963
			
		


			Phillip Sing Income ETF
			
			
			OVQ
			
			
			 
			
			
			Phillip
			
			
			0.97
			
			
			Singapore Equities
			
			
			9.0
			
			
			3
			
			
			66
			
		


			NikkoAM-ICBCSG China Bond ETF RMB Class
			
			
			ZHY
			
			
			ZHD
			
			
			Nikko AM
			
			
			0.3
			
			
			China Bonds
			
			
			9.0
			
			
			11
			
			
			250
			
		


			NikkoAM-ICBCSG China Bond ETF SGD Class
			
			
			ZHS
			
			
			 
			
			
			Nikko AM
			
			
			0.3
			
			
			China Bonds
			
			
			8.7
			
			
			20
			
			
			67
			
		


			Principal FTSE ASEAN40 ETF
			
			
			M62
			
			
			QS0
			
			
			PAM
			
			
			0.8
			
			
			ASEAN Equities
			
			
			7.0
			
			
			-9
			
			
			12
			
		


			Xtrackers MSCI Indonesia Swap UCITS ETF
			
			
			KJ7
			
			
			 
			
			
			XTrackers
			
			
			0.65
			
			
			Indonesia Equities
			
			
			6.7
			
			
			-1
			
			
			20
			
		


			Lion-Phillip S-REIT ETF
			
			
			CLR
			
			
			 
			
			
			LGI
			
			
			0.6
			
			
			Singapore REITs
			
			
			4.5
			
			
			48
			
			
			240
			
		


			NikkoAM-StraitsTrading Asia ex Japan REIT ETF
			
			
			CFA
			
			
			COI
			
			
			Nikko AM
			
			
			0.6
			
			
			Asia Ex-Japan REITs
			
			
			3.0
			
			
			85
			
			
			336
			
		


			Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - USD
			
			
			P60
			
			
			 
			
			
			Lyxor
			
			
			0.6
			
			
			APAC Ex-Japan Equities
			
			
			2.6
			
			
			 
			
			
			27
			
		


			iShares Asia Credit ETF
			
			
			N6M
			
			
			QL2
			
			
			Blackrock
			
			
			0.3
			
			
			Asia Ex-Japan Bonds
			
			
			2.4
			
			
			25
			
			
			107
			
		


			Lyxor MSCI Emerging Markets UCITS ETF - Acc USD
			
			
			H1N
			
			
			 
			
			
			Lyxor
			
			
			0.55
			
			
			EM Equities
			
			
			2.3
			
			
			2
			
			
			8
			
		


			SPDR GLD ETF
			
			
			O87
			
			
			 
			
			
			SPDR
			
			
			0.4
			
			
			Gold
			
			
			0.7
			
			
			-129
			
			
			1403
			
		


			Phillip SGD Money Market ETF
			
			
			MMS
			
			
			MMT
			
			
			Phillip
			
			
			0.24
			
			
			SGD Money Market
			
			
			0.2
			
			
			-5
			
			
			116
			
		


			Nikko AM SGD Investment Grade Corporate Bond ETF
			
			
			MBH
			
			
			 
			
			
			Nikko AM
			
			
			0.3
			
			
			Singapore Bonds
			
			
			-1.0
			
			
			15
			
			
			597
			
		


			Principal S&amp;P APAC Dividend ETF
			
			
			P5P
			
			
			QR9
			
			
			PAM
			
			
			1.06
			
			
			APAC Ex-Japan Equities
			
			
			-2.7
			
			
			2
			
			
			21
			
		


			Xtrackers II Singapore Government Bond UCITS ETF
			
			
			KV4
			
			
			 
			
			
			XTrackers
			
			
			0.2
			
			
			Singapore Bonds
			
			
			-5.4
			
			
			-2
			
			
			127
			
		


			ABF Singapore Bond Index Fund
			
			
			A35
			
			
			 
			
			
			Nikko AM
			
			
			0.25
			
			
			Singapore Bonds
			
			
			-5.8
			
			
			74
			
			
			1010
			
		


			UNITED SSE 50 CHINA ETF
			
			
			JK8
			
			
			 
			
			
			UOBAM
			
			
			2.28
			
			
			China Equities
			
			
			-6.3
			
			
			2
			
			
			28
			
		


			iShares Barclays USD Asia High Yield Bond Index ETF
			
			
			O9P
			
			
			QL3
			
			
			Blackrock
			
			
			0.5
			
			
			Asia Ex-Japan Bonds
			
			
			-8.1
			
			
			2407
			
			
			2527
			
		


			Lyxor China Enterprise (HSCEI) UCITS ETF - USD
			
			
			P58
			
			
			 
			
			
			Lyxor
			
			
			0.65
			
			
			China Equities
			
			
			-13.7
			
			
			-3
			
			
			32
			
		


			Xtrackers MSCI China UCITS ETF
			
			
			LG9
			
			
			TID
			
			
			XTrackers
			
			
			0.65
			
			
			China Equities
			
			
			-14.8
			
			
			35
			
			
			70
			
		


			Lion-OCBC Securities Hang Seng TECH ETF
			
			
			HST
			
			
			HSS
			
			
			LGI
			
			
			0.68
			
			
			China Equities
			
			
			-21.9
			
			
			269
			
			
			306
			
		


			Lion-OCBC China Leaders ETF
			
			
			YYY
			
			
			YYR
			
			
			LGI
			
			
			0.62
			
			
			China Equities
			
			
			N/A
			
			
			84
			
			
			90
			
		


			CSOP iEdge SREIT Leaders Index ETF
			
			
			SRT
			
			
			SRU
			
			
			CSOP AM
			
			
			0.6
			
			
			Singapore REITs
			
			
			N/A
			
			
			116
			
			
			116
			
		


			UOB APAC Green REIT ETF
			
			
			GRN
			
			
			GRE
			
			
			UOBAM
			
			
			0.8
			
			
			APAC Ex-Japan REITs
			
			
			N/A
			
			
			N/A
			
			
			N/A
			
		


			Total (All)
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			3285
			
			
			12111
			
		


			Total (Incl. International Cross-Listed Counters)
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			-82
			
			
			 
			
		

Source: SGX, Refinitiv, Bloomberg (Data as of 19 November 2021)

 

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.

ETF Microstructure Changes

Note that effective 17 Jan 2022, following changes will take place for all ETFs listed on SGX: 
1. Reduction of standard board lot size of ETFs listed on SGX to 1 unit. 
2. Existing forced order range +/- 30 ticks for all ETFs will be revised to +/- 10%.  To find out more about ETFs, click here.



UOB APAC Green REIT ETF Commences Trading with S$80M+ AUM 