10 March 2017
Highlights of Upcoming Asia ex-Japan REITs ETF
  • On 29th March 2017, Nikko Asset Management and Straits Trading Company will launch their new REITs ETF – the NikkoAM-StraitsTrading Asia ex Japan REIT ETF. Singapore-listed REITs make up 70% of the ETF, with Hong Kong, China and Malaysian REITs comprising the remaining 30%.
  • The ETF will track the FTSE EPRA/NAREIT Asia ex Japan REITs Net Total Return SGD Index, which has a reported index yield of 5.72% as of 31 January 2017.
  • In the March MTD, the five most active ETFs on SGX were SPDR® Straits Times Index ETF, SPDR® Gold Shares ETF, iShares MSCI India Index ETF, iShares J.P. Morgan USD Asia Credit Bond Index ETF and db x-trackers MSCI Thailand Index UCITS ETF (DR).

New REITs ETF

 

On 29 March 2017, Nikko Asset Management and Straits Trading Company will launch their new REITs ETF the NikkoAM-StraitsTrading Asia ex Japan REIT ETF. SGX-listed REITs make up 70% of the ETF, with Hong Kong, China and Malaysian REITs comprising the remaining 30%. The ETF – a product of the partnership between Nikko and STC – will track the FTSE EPRA/NAREIT Asia ex Japan REITs Net Total Return SGD Index, which has a reported index yield of 5.72% as of 31 January 2017.

 

The launch of this ETF, which has a dominant focus on Singapore REITs, will help boost liquidity of the SGX S-REITs segment. This is the second REITs ETF listed on SGX, the first being the Phillip SGX APAC Dividend Leaders REIT ETF, launched by Phillip Capital Management last October. These products focus on yield, which indicate that investor appetite for higher yielding products continues to grow.

 

Details of the NikkoAM-StraitsTrading Asia ex Japan REIT ETF are summarised below.

 

Name

NikkoAM-StraitsTrading Asia Ex Japan REIT ETF

Stock Code

CFA 

ISIN Code

SG1DE9000003

Currency

SGD

Product

EIP (Excluded investment product) ETF

Designated Market Makers

Commerzbank AG and Flow Traders Asia Pte. Ltd.

Underlying index

FTSE EPRA/NAREIT Asia ex Japan REITs Net Total Return SGD

Prospectus

Download link

Product Highlights Sheet 

Download link

FTSE Index info

Download link

Constituents 

23

Index dividend yield  per 31 Jan 2017

5.72%

Performance index per 31 Jan 2017

YTD - 6.3%

6m -5.1%

12M - 17.3%

3Y - 22.2%

5Y - 51.3%

Compound annual index returns measured over 3 and 5 years per 31 Jan 2017

3Y - 6.9%

5Y - 8.6%

Rebalancing

Quarterly

Top 10 index holdings per 31 Jan 2017

Constituent

Country

Weight

Ascendas REIT

Singapore

10.28%

CapitaLand Mall Trust

Singapore

9.88%

Link REIT

Hong Kong

9.68%

Suntec REIT

Singapore

9.62%

CapitaLand Commercial Trust

Singapore

7.03%

Mapletree Commercial Trust

Singapore

6.67%

Fortune REIT

Hong Kong

5.00%

Mapletree Industrial Trust

Singapore

4.77%

Keppel REIT

Singapore

4.43%

Mapletree GCC Trust

China

4.15%

Total

 

71.53%

 

Month-to-Date Performances

 

The five most active ETFs on SGX in the March month-to-date were SPDR® Straits Times Index ETF, SPDR® Gold Shares ETF, iShares MSCI India Index ETF, iShares J.P. Morgan USD Asia Credit Bond Index ETF and db x-trackers MSCI Thailand Index UCITS ETF (DR).

 

In the MTD, these five most active ETFs averaged a total return of 0.1%, taking their one-year and three-year total returns to 11.3% and 19.4% respectively.

 

The above-mentioned ETFs saw a 58.5% YoY rise in turnover for the month, increasing from S$60.0 million in March 2016 to S$95.1 million in the same period this year. This brings the total 12-month turnover to S$2.0 billion.

 

The five most active ETFs in the March 2017 MTD are detailed below in Singapore dollars and sorted by MTD turnover.

 

Names

Stock Code

MTD Turnover 2017

MTD Turnover 2016

YTD Turnover 2017

YTD Turnover 2016

12M Turnover

SPDR® Straits Times Index ETF

ES3

62,513,861

14,310,063

137,999,900

105,552,048

404,512,546

SPDR® Gold Shares ETF

O87

9,940,541

26,488,627

115,931,798

157,789,936

715,533,784

iShares MSCI India Index ETF

I98

9,887,176

11,401,884

174,792,819

80,511,644

642,359,714

iShares J.P. Morgan USD Asia Credit Bond Index ETF

N6M

9,212,487

5,416,653

22,823,743

18,235,545

98,742,804

db x-trackers MSCI Thailand Index UCITS ETF (DR)

LG7

3,580,205

2,411,373

20,145,274

13,287,380

94,861,651

Source: SGX, Bloomberg & SGX StockFacts (data as of 9 March 2017)

 

Names

Stock Code

Total Return MTD %

Total Return 12M %

3 Year Total Return Annualized %

3 Year Total Return %

30 Day Volatility

Total Return YTD %

SPDR® Straits Times Index ETF

ES3

1.0

15.4

3.2

9.8

12.069

8.3

SPDR® Gold Shares ETF

O87

-2.4

-1.4

-0.1

-0.2

11.937

1.9

iShares MSCI India Index ETF

I98

0.9

17.8

10.0

33.1

10.007

7.8

iShares J.P. Morgan USD Asia Credit Bond Index ETF

N6M

0.7

8.7

9.5

31.5

4.937

0.6

db x-trackers MSCI Thailand Index UCITS ETF (DR)

LG7

0.3

16.1

7.1

23.0

7.090

0.9

Average

 

0.1

11.3

6.0

19.4

9.208

3.9

Source: SGX, Bloomberg & SGX StockFacts (data as of 9 March 2017)

 

SGX 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. Consequently, this easy access provided by ETFs ranks it amongst the top 10 most actively traded securities in global stock markets.

 

Currently, there are 74 ETFs tradable on SGX consisting of 56 equity, 10 fixed income, five money market and three commodity ETFs. Through ETFs listed on SGX, investors in Singapore are able to participate in the growth of other local markets such as Korea, China, India, as well as global markets such as the US, Brazil, Russia or Europe. In 2016, Retail ETF Assets Under Management (AUM) jumped 23% (measured in SGD as invested by retail investors in SGX-listed ETFs) and the number of Retail ETF holders rose 18% (measured as unique investors holding at least 1 ETF listed on SGX).

 

SGX organises a wide range of ETF educational events by SGX Academy on a monthly basis. Click on the links below for more information:

 


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