CSOP iEdge S-REIT Leaders Index ETF

Fund Description

Key Features

• 1

  Exposure to growing S-REIT market

  S-REITs can provide real estate exposure in a liquid way in a portfolio to improve risk-adjusted return. 

  Over the past 10 years, S-REITs have averaged an annualised total return of 8.3% and 90-day volatility of 11.5%, which is competitive among major equity indices. 

  With market capitalisation growing at a CAGR of 11% in the last 11 years, the S-REIT market is now one of the largest REITs markets in Asia. 

  

• 2

  Offer stable and sustainable dividend payments

  As of 30 June 2022, S-REITs offer annual dividend yield of 5.6%, with a yield spread of over 260 basis points versus Singapore 10-year benchmark government bond yield. 

  The high and stable dividend of S-REITs is guaranteed by Singapore's regulation, as at least 90% of taxable income is required to be paid out.

  

• 3

  Hedge against Inflation

  Inflation often leads to higher rents, which is a composition of consumer price index (CPI). Annual dividend yield of REITs is expected to be much higher than Singapore inflation rate in the next 2 years.

  

• 4

  Diversification by tracking iEdge S-REIT Leaders Index

  The ETF tracks the iEdge S-REIT Leaders Index, which is a liquid representation of the S-REIT market in Singapore. 

  There are 28 securities in the Index as of 31 March 2022. 

  It needs only 1-2 days to liquidate the most thinly traded S-REITs in the Index.

  A liquidity enhancement is performed on the Index. Based on the daily traded velocity, constituents within each quartile are assigned an adjustment factor on their respective free-float market capitalisation.