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Singapore Exchange (SGX) today welcomed the listing of CSOP iEdge S-REIT Leaders Index ETF with assets under management (AuM) of S$116.8 million, providing investors with access to the largest and most liquid real estate investment trusts in Singapore (S-REIT).
The ETF tracks the liquidity enhanced iEdge S-REIT Leaders Index, which measures the performance of 28 REITs with an index market capitalisation of S$69 billion. The index has a dividend yield of over 4% and over the past five years, has gained 57% in total returns.
The iEdge S-REIT Leaders Index is part of SGX’s suite of S-REIT indices, which are key benchmarks for Asia ex-Japan’s largest REIT market with over S$110 billion in market capitalisation. Constructed to be tradeable indices with high liquidity and representation, iEdge S-REIT index constituents are screened for free-float, velocity, and weighted with a 10% cap, ensuring greater portfolio diversification.
REIT ETFs is one of the fastest-growing asset classes in Singapore’s ETF market. SGX is now home to four REIT ETFs with AuM up more than 60% year-on-year to S$700 million[1].
Michael Syn, Head of Equities at SGX, said, “We are delighted to welcome the CSOP iEdge S-REIT Leaders Index ETF to SGX’s multi-asset platform, adding on to our comprehensive suite of REIT offerings, from indices, futures to ETFs. It reflects the strong demand for our deeply liquid iEdge S-REIT benchmarks, which provide exposure to defensive returns especially in volatile markets. With this new ETF, investors have efficient access to S-REITs that continue to grow and attract assets across geographies, and resilient segments including industrial, healthcare and data centres.”
Ms. Ding Chen, CEO of CSOP Asset Management commented, “We are pleased to list the ‘CSOP iEdge S-REIT Leaders Index ETF’ on the Singapore Exchange. Following the successful launch of the ‘ICBC CSOP FTSE Chinese Government Bond Index ETF’ in September 2020, this is the second ETF product issued by CSOP in Singapore. Singapore REITs are well known for their sustainable income stream and potential capital appreciation, therefore offering an attractive proposition for yield seeking investors. The ETF provides investors with a low cost, transparent and fuss-free portfolio. I believe the successful listing of the product will appeal to investors seeking for a diversified REITs portfolio, and will be a good addition to Singapore’s ETF market.”
[1] As at October 2021
