A new ETF, REIT ETF took off today. Nikko AM – Straits Trading ex Japan REIT ETF started its trading on the Singapore Exchange (SGX) today. The security, which was priced at SGD1.00 during its initial offer period, opened slightly higher at SGD1.02 at the start of official trading on the bourse.
The ETF, which tracks 23 REITs across Singapore, Hong Kong and Malaysia, is based on FTSE EPRA／NAREIT Asia ex Japan Net Total Return REIT Index. The is composited 60.5% from REITs in Singapore , 23% from Hong Kong, 7.7% from REITs in China, 5.6% from Malaysia, 3.3% from Indonesia. The ETF opened for trading with approximately SGD54.4 million in AUM, SGD42.6 million of which was seeded by the two partners – Nikko Asset Management and Straits Trading Limited.
The Nikko AM – Straits Trading ex Japan REIT ETF is the second REIT ETF to list on the SGX. In October 2016, the first REIT ETF, the Philips SGX APAC Dividend Leaders REIT ETF, which also included Australian REIT constituents took off on the bourse.