CSOP iEdge S-REIT Leaders ETF edges a tad lower on debut

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The CSOP iEDGE S-REIT Leaders Index ETF, which tracks the iEdge S-REIT Leaders Index, ended its first day of trade at S$0.993, down a smidgeon from its issue price of S$1.00.

Around 9.24 million shares of the exchange traded fund (ETF) changed hands, or around S$9.23 million, according to SGX data. The ETF touched a day’s high of S$1.009, but finished at its low of S$0.993, the data show.

The ETF has assets under management of S$116.8 million, Singapore Exchange (SGX) noted in a statement Thursday, adding the index has a market capitalisation of S$69 billion and a dividend yield of more than 4 percent.

Over the past five years, the index has gained 57 percent in total returns, SGX said.

The iEdge S-REIT Leaders Index is an adjusted free-float market-capitalization weighted index tracking the performance of Singapore’s largest and most-tradeable REITs, according to the index factsheet. The index has 28 constituents.

Michael Syn, head of equities at SGX, said the CSOP iEDGE S-REIT Leaders Index ETF added to the exchange’s REIT offerings, which include indexes, futures and ETFs.

“It reflects the strong demand for our deeply liquid iEdge SREIT benchmarks, which provide exposure to defensive returns especially in volatile markets. With this new ETF, investors have efficient access to S-REITs that continue to grow and attract assets across geographies, and resilient segments including industrial, healthcare and data centers,” Syn said in the statement.

SGX now has four REIT ETFs, the statement said.

Ding Chen, CEO of CSOP Asset Management, noted that the REIT ETF was her company’s second ETF listed on SGX after the ICBC CSOP FTSE Chinese Government Bond Index ETF, listed in September 2020.

” Singapore REITs are well known for their sustainable income stream and potential capital appreciation, therefore offering an attractive proposition for yield seeking investors,” she said in the statement.

“I believe the successful listing of the product will appeal to investors seeking for a diversified REITs portfolio, and will be a good addition to Singapore’s ETF market,” Ding Chen added.

The ETF’s top-10 constituents, which together have an around 78 percent weighting in the index, include Mapletree Industrial TrustMapletree Logistics TrustAscendas REITCapitaLand Integrated Commercial TrustMapletree Commercial TrustKeppel DC REITFrasers Logistics & Commercial TrustFrasers Centrepoint TrustSuntec REIT and Keppel REIT.

Hong Kong-based CSOP Asset Management, founded in 2008, had around US$10.2billion in assets under management, as of end-August.