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CSOP iEdge S-REIT Leaders Index ETF Seedly

CSOP iEdge S-REIT Leaders Index ETF: What Investors Should Know About This New REIT ETF

profileSudhan P

There’s going to be a new kid on the REIT ETF block, giving investors another option to invest in Singapore REITs seamlessly.

Come towards the end of November, CSOP iEdge S-REIT Leaders Index ETF will start trading on the Singapore Exchange (SGX).

Let’s find out more about this new exchange-traded fund (ETF) that tracks a real estate investment trust (REIT) index.

Source: Giphy

TL;DR: What Investors Should Know About the CSOP iEdge S-REIT Leaders Index ETF

  • The CSOP iEdge S-REIT Leaders Index ETF allows investors to invest in Singapore REITs easily.
  • The ETF’s investment objective is to replicate the performance of the iEdge S-REIT Leaders Index.
  • Some of the REITs that are part of the index include Mapletree Industrial Trust, Ascendas REIT, and CapitaLand Integrated Commercial Trust.
  • The target listing date of the CSOP iEdge S-REIT Leaders Index ETF on the Singapore Exchange is 18 November 2021.

What’s The CSOP iEdge S-REIT Leaders Index ETF About?

The CSOP iEdge S-REIT Leaders Index ETF gives investors another option to invest in Singapore REITs (S-REITs).

Currently, there are a total of three REIT ETFs available in the Singapore stock market.

The new ETF has an investment objective to replicate as closely as possible, before fees and expenses, the performance of the iEdge S-REIT Leaders Index.

The iEdge S-REIT Leaders Index is an adjusted free-float market capitalisation weighted index that measures the performance of the most liquid REITs in Singapore.

The index is compiled and maintained by SGX.

As of 30 June 2021, the five-year annualised total return (which includes capital gains and distributions)  of the index in Singapore dollars was 9.9%.

The price return itself was 4.4%.

Source: iEdge S-REIT Indices Factsheet

The index is reviewed semi-annually in March and September, and the index constituents will have their weights capped at 10% to ensure diversification.

The number of holdings of the index is 28.

A Deeper Look at the CSOP iEdge S-REIT Leaders Index ETF

The ETF manager will use a passive replication strategy to track the performance of the iEdge S-REIT Leaders Index.

As of 30 September 2021, the 10 largest constituents of iEdge S-REIT Leaders Index are:

REITTickerWeighting
Mapletree Logistics TrustME8U10.2%
Ascendas Real Estate Investment TrustA17U10.0%
CapitaLand Integrated Commercial TrustC38U10.0%
Mapletree Industrial TrustM44U9.4%
Mapletree Commercial TrustN2IU9.2%
Frasers Logistics and Commercial TrustBUOU8.9%
Keppel DC REITAJBU7.5%
Keppel REITK71U5.0%
Suntec Real Estate Investment TrustT82U4.1%
Frasers Centrepoint TrustJ69U3.8%

Investors can invest as few as 10 units, and the ETF will be available in both Singapore dollars (SGD) and US dollars (USD).

Here are further details of the CSOP iEdge S-REIT Leaders Index ETF:

CSOP iEdge S-REIT Leaders Index ETF
ManagerCSOP Asset
Management Pte Ltd
Underlying IndexiEdge S-REIT Leaders Index
Index ProviderSingapore Exchange Limited
Currency of Account (Base Currency)SGD
Trading CurrencySGD and USD
Ticker SymbolSRT (SGD) / SRU (USD)
Trading Board Lot Size10 units
Expense RatioCapped at 0.6%
Distribution PolicySemi-annually
(distributions for each counter will be made in SGD only)
Listing Date on SGX18 November 2021

The ETF manager currently intends to declare semi-annual distributions, and it will be in SGD.

According to the iEdge S-REIT Indices Factsheet (as of 30 June 2021), the last twelve-month dividend yield is 3.96%.

How To Apply?

The ETF’s initial offering period (IOP) has started and runs till 15 November 2021.

During the period, investors who wish to buy the ETF may do so through participating dealers such as iFAST, POEMS, and Tiger Brokers.

The subscription price is S$1 per unit. The minimum application size is 1,000 units and in multiples of 1,000 units.

The target listing date of the CSOP iEdge S-REIT Leaders Index ETF on the Singapore stock market is 18 November (9 am).

Looking for a Like-Minded Community of Investors?

That’s what we have here at Seedly where you can participate in lively discussions regarding REITs and everything money! 

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer owns shares in Singapore Exchange. 

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About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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