SGX Market Updates

REIT ETFs Reach Historic AUM Heights With Rising Trading Volumes

SGX
Publish date: Mon, 26 Aug 2024, 05:36 PM
  • 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.

REIT ETFs Reach Historic AUM Heights with Rising Trading Volumes

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.

10 Most Traded Singapore listed ETFs In 2H24 to DateSGD CodeUSD CodeIndex Benchmark

ADT S$M

Jul-Aug

ADT S$M
1H24

ADT

Change

SPDR GOLD SHARESGSDO87LBMA Gold Price PM2.7  3.2 -16%
STI ETFES3 Straits Times Index2.5  1.8 43%
LION-PHILLIP S-REIT ETFCLR Morningstar® Singapore REIT Yield Focus Index SM2.0 0.8 145%
LION-OCBC SECURITIES HS TECHHSTHSSHang Seng TECH Index2.0 2.4 -18%
NIKKOAM-STC ASIA_XJ REIT ETFCFACOIFTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index1.8 1.7 12%
ISHARES AXJ CLIMATE ACTION ETFICMICUMSCI AC Asia ex Japan Climate Action Index1.0  0.4 138%
NikkoAM STI ETFG3B Straits Times Index0.7  0.6 15%
ISHARES USD ASIA HY BOND ETFQL3O9PBloomberg Asia USD High Yield Diversified Credit Index0.7 1.3 -46%
CSOP IEDGE SREIT LDRS IDX ETFSRTSRUiEdge SREIT Leaders Index0.7 0.4 92%

Note ADT represents Average Daily Turnover

Source SGX 

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

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