The CSOP iEdge S-REIT Leaders Index ETF will be listed on 18 November 2021 and the initial offering period started on 29 October 2021, with an inception price of S$1 ($0.74) with board lot size of 10 units. It is advised by JLP Asset Management, a global real estate investment manager.
“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,” Ding Chen, chief executive of CSOP Asset Management, said in a statement.
Singapore Reits generate income, with a dividend yield of 5.1%, according to CSOP, and have the potential for capital appreciation from a portfolio of holdings in shopping malls, offices or hotels. The new ETF provides investors with a “low cost, transparent and fuss-free portfolio, and should “appeal to investors seeking a diversified REITs portfolio,” she added.
Singapore is one of the largest and most fast-growing REITs markets in Asia Pacific with market size of over S$110bn and has grown at compound annual growth rate of 11% from 2010 to the end of 2020.
“The [iEdge S-REIT Leaders] index measures the performance of the largest and most liquid Reits listed in Singapore,” Ng Kin Yee, managing director and head of data, connectivity and indices at SGX, said in a statement.
Consisting of 28 constituents from various industries and regions, the index has a total market capitalization of about S$68.35bn. It has gained 67.2% on a total return basis over the past 5 years, outperforming major global REITs indices, he noted.