The Smart Investor
    Facebook Instagram
    Monday, January 30
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Investing Strategy»NikkoAM-StraitsTrading Asia Ex Japan REIT ETF: 10 Facts To Learn Before You Buy
    Investing Strategy

    NikkoAM-StraitsTrading Asia Ex Japan REIT ETF: 10 Facts To Learn Before You Buy

    If you have a thing for Asian REITs, this may be the right ETF for you.
    Herman NgBy Herman NgNovember 18, 20213 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    ETF on Raised Coins
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    Chinese REITs were launched for the first time this year, with nine listed in June 2021.

    The move was aimed at enhancing the vibrancy of China’s real estate sector and promoting economic growth.

    China is not alone, with Asian REITs entering a new age of growth.

    An accelerating global shift of power towards Asia, coupled with the emergence of new economy property segments, have investors sitting up to take notice.

    If you are keen to participate in the growth of Asia’s real estate sector, the NikkoAM-StraitsTrading Asia Ex Japan REIT ETF (SGX: CFA) (SGX: COI) might be the ETF for you.

    But before you buy, here are 10 key facts you need to know. (figures are as of 30 September 2021, unless otherwise stated)

    1. The objective of the ETF is to replicate the FTSE EPRA Nareit Asia ex Japan REITS 10% Capped Price Index. The Index is designed to represent general trends in real estate equities in both developed and emerging markets of Asia, excluding Japan.
    2. As of 29 October 2021, the Index consists of 43 REITs, although the number of constituents may change from time to time.
    3. The 43 index constituents have a total market capitalization of US$70.2 billion, with a median of US$849 million.
    4. Each index constituent has a weightage cap of 10%, although market movements may cause some holdings to exceed 10% in between rebalancing dates. The index is reviewed quarterly in March, June, September and December.
    5. CapitaLand Integrated Commercial Trust (SGX: C38U) forms 10.4% of the ETF and is its largest component. It is followed by Ascendas REIT (SGX: A17U) and Link REIT (SEHK: 0823), each occupying 9.8%.
    6. Retail REITs have the largest allocation in the ETF, occupying a 36.3% weight. The next largest segments are Industrial REITs and Office REITs, with respective weights of 30.5% and 12.7%.
    7. Boasting a fund size of S$324.5 million, the ETF is the largest REIT ETF in Singapore by fund size.
    8. Since the fund’s inception in March 2017, the ETF has rewarded investors with an annualized return of 6.17%, assuming all dividends are reinvested.
    9. In the same period, the benchmark index has provided an annualized return of 7%, leaving the fund’s tracking error at 0.83%.
    10. The fund’s expense ratio is capped at 0.60%, a similar amount compared to other REIT ETFs.

    Get Smart: Participate in Asia’s growth

    Governments around the world are looking to spur economic growth.

    Many are doing so by promoting REITs as a viable investment asset class.

    REITs offer property owners a way to recycle capital, freeing up funds for further projects and developments.

    In Asia, places such as South Korea, Hong Kong, and the Philippines have established regulations that are REIT-friendly and that encourage the listing of more REITs.

    With instant exposure to 43 REITs from around Asia, the NikkoAM-StraitsTrading Asia Ex Japan REIT ETF is an easy solution for investors looking to participate in Asia’s fast-growing real estate market.

    This could be the fastest way to jump from a “newbie” investor to a seasoned pro. Our beginner’s guide shows everything you need to know to buy your first stock and beyond. Click here to download it for free today.

    Follow us on Facebook and Telegram for the latest investing news and analyses!

    Disclosure: Herman Ng owns shares of CapitaLand Integrated Commercial Trust and Ascendas REIT. 

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    Merger and Acquisition

    What Makes Some Serial Acquirers So Successful

    January 30, 2023
    Data Centre (Sunlight)

    5 Key Takeaways from Mapletree Industrial Trust’s Latest Business Update

    January 30, 2023
    Screen Showing Share Prices

    Get Smart: Why You Shouldn’t Focus on Share Prices Alone

    January 29, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.