SGX to debut maiden ETF for Singapore REITs by H2

It aims to give retail investors retirement solutions.

The Singapore Exchange (SGX) is looking to launch the maiden Singapore REITs exchange-traded fund (SREITs ETF) by the second half of 2016, according to a report by RHB.

The SREITs ETF will track the performance of the SGX SREITs 20 Index, which assesses the performance of the largest and most liquid SREITs listed in Singapore.

The key idea of the ETF is to give investors retirement solutions through the ETF’s high dividend yield.

“We think that the demand will mainly be driven by i) local retail investors, ii) foreign institutional investors that are new to the Singapore REITs market and iii) Foreign investors who do not have a REITs regime in their domestic country,” RHB asserts.

Further, RHB believes that if the market takes a shine on the SREITs ETF, similar products like an office SREITs ETF or a retail SREITs ETF could be launched in the future.

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