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.
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$4.6 million, which is up almost 60% from 1H24, and up 200% from 2023.
10 Most Traded Singapore listed ETFs In 2H24 to Date | SGD Code | USD Code | Index Benchmark | ADT S$M Jul-Aug | ADT S$M 1H24 | ADT Change |
SPDR GOLD SHARES | GSD | O87 | LBMA Gold Price PM | 2.7 | 3.2 | -16% |
STI ETF | ES3 | Straits Times Index | 2.5 | 1.8 | 43% | |
LION-PHILLIP S-REIT ETF | CLR | Morningstar® Singapore REIT Yield Focus Index SM | 2.0 | 0.8 | 145% | |
LION-OCBC SECURITIES HS TECH | HST | HSS | Hang Seng TECH Index | 2.0 | 2.4 | -18% |
NIKKOAM-STC ASIA_XJ REIT ETF | CFA | COI | FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index | 1.8 | 1.7 | 12% |
ISHARES AXJ CLIMATE ACTION ETF | ICM | ICU | MSCI AC Asia ex Japan Climate Action Index | 1.0 | 0.4 | 138% |
NikkoAM STI ETF | G3B | Straits Times Index | 0.7 | 0.6 | 15% | |
ISHARES USD ASIA HY BOND ETF | QL3 | O9P | Bloomberg Asia USD High Yield Diversified Credit Index | 0.7 | 1.3 | -46% |
CSOP IEDGE SREIT LDRS IDX ETF | SRT | SRU | iEdge SREIT Leaders Index | 0.7 | 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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