• REIT tracking ETFs were first introduced in Singapore on 20 October 2016. Last week, their combined AUM hit a new record of S$917 million. Since the end of June, their daily turnover has reached S$4.6 million, marking an increase of nearly 60% from the first half of 2024 and a 200% rise from 2023.
   
• The iEdge S-REIT Index achieved a 10% total return in the first 8 weeks of 2H24, recovering from an 11% decline in 1H24. This shift in sentiment is largely due to the increasing certainty of a Fed Funds Rate cut at the 18 September FOMC meeting, which also suggests a potential easing of global financial conditions.

The iEdge S-REIT Index generated a 10% total return over the first 8 weeks of 2H24, following the 11% decline in total return in 1H24. 

The turn in sentiment has been driven by the growing certainty of a Fed Funds Rate cut at the 18 September FOMC meeting, that also sets a partial precedent for more easing of global financial conditions.

The recent directional correlation of the iEdge S-REIT Index and US-listed Fed Fund Futures is illustrated below.

Over the past eight weeks, institutions and retail have reversed around 10% of their respective net outflow and net inflow in 1H24. Since the end of June, institutions have net bought S$79 million in the S-REIT Sector, while Retail has net sold S$125 million. Meanwhile the five REIT tracking ETFs have seen combined net inflows of S$24 million. As noted here, the LION-PHILLIP S-REIT ETF has seen a significant pick up in institutional and retail inflow over the past six weeks as compared to 1H24.

REIT tracking ETFs debuted in Singapore on 20 October 2016. Their combined AUM reached a new record of S$917 million last week. 

Their daily turnover since end of June has reached S$4.6 million, which is up almost 60% from 1H24, and up 200% from 2023.

Note ADT represents Average Daily Turnover

Source SGX 

The five ETFs that track the REIT Indices are currently comprised of:  

• Lion-Phillip S-REIT ETF: Aims to replicate the performance of the Morningstar® Singapore REIT Yield Focus Index by investing in all or substantially all of the underlying securities constituting the Index.
• NikkoAM-Straits Trading Asia Ex-Japan REIT ETF: Seeks to replicate the performance of the FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Index.
• Phillip SGX APAC Dividend Leaders REIT ETF: Aims to provide high income and moderate long-term capital appreciation by tracking the iEdge APAC Ex-Japan Dividend Leaders REIT Index.
• CSOP iEdge S-REIT Leaders ETF: Strives to replicate the performance of the iEdge S-REIT Leaders Index.
• UOB Asia Pacific (APAC) Green REIT ETF: The world's first APAC Green REITs ETF, aiming to replicate the iEdge-UOB APAC Yield Focus Green REIT index.

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