REIT ETFs see 40% AUM growth in past year

SGX_Stars
07-21

Over the past 12 months, Singapore-listed REIT ETFs have seen more than S$300 million in net new inflows, reflecting continued investor demand. The combined assets under management (AUM) of these ETFs have surged by 40% over a year, reaching an all-time high of S$1.2 billion by the end of the first half of 2025.

This growth in AUM has outpaced the REIT sector’s price movements, as reflected by the iEdge S-REIT Index and FTSE EPRA Nareit Index which reported total returns of 10.5% and 12.5% respectively. Both retail and institutional investors have actively contributed to the growth of AUM for REIT ETFs in Singapore.

On average, the five REIT ETFs have posted total returns of 10.7% over the past year ending 30 Jun 2025. Trading activity for these REIT ETFs also surged by 34% quarter-on-quarter for the April to June 2025 period.

Among the top 10 traded ETFs listed in Singapore, the $LION-PHILLIP S-REIT(CLR.SI)$ and the $NikkoAM-STC Asia REIT(CFA.SI)$ stood out, recording the highest net inflows.

1. $LION-PHILLIP S-REIT(CLR.SI)$

The Lion-Phillip S-REIT ETF, Singapore’s first and largest ETF focusing on S-REITs, tracks the Morningstar Singapore REIT Yield Focus Index, which includes 21 constituents and boasts an AUM of over S$540 million. As one of the two pure-play Singapore REIT ETFs, it offers a dividend yield of 5.8% and achieved total returns of 4.1% in the first half of 2025.

2. $NikkoAM-STC Asia REIT(CFA.SI)$

The NikkoAM-StraitsTrading Asia ex Japan REIT ETF tracks the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index, consisting of 43 constituents across Singapore, Malaysia, Hong Kong, India, South Korea, Thailand and the Philippines.

Singapore remains the largest exposure at 68% of the portfolio. Notably, this ETF distributes quarterly dividends, unlike the others which distribute semi-annually. It ranks as the second-largest REIT ETF by AUM, with over S$420 million, yielding 5.8% in dividends and generating total returns of 6.0% in the first half of 2025.

3. $UOB AP GRN REIT US$(GRE.SI)$

In terms of returns, the UOB Asia Pacific Green REIT ETF was the best-performing REIT ETF for the first half of 2025, returning 9.3% in total returns. The underlying index, the iEdge-UOB APAC Yield Focus Green REIT Index, emphasizes environmental factors such as energy consumption, water consumption, GHG emissions, and green building certifications.

The index has 50 REITs across Australia (42%), Japan (32%), Singapore (19%), and Hong Kong (7%). The UOB APAC Green REIT ETF presents an option for investors seeking sustainable investments while maintaining highly competitive dividend yields. 

4. $CSOP S-REITs INDEX ETF(SRT.SI)$

The CSOP iEdge S-REIT Leaders ETF has the highest dividend yield among the five REIT ETFs at 6.0%. It tracks the iEdge S-REIT Leaders Index, which comprises 22 S-REITs.

Phillip Securities research analyst Helena Wang recently initiated coverage on the Phillip SGX APAC Dividend Leaders REIT ETF for its exposure to 31 REITs in the Asia Pacific ex Japan region, and its consistent dividend growth. The report highlighted that since 2021, dividends have remained steady between 4 to 6 cents.

The ETF's book value has also become more attractive, historically trading at 1.3 times the price-to-book ratio, and now at 0.8 times. The ETF tracks the iEdge APAC ex-Japan Dividend Leaders REIT Index, which selects REITs based on their dividend payout.

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