Dear readers, the Lion Phillip S-Reit ETF is an ETF that gives investors exposure to many of the SGX-listed Reits in Singapore with holding of just one ETF. When this ETF was rolled out, I believe the appeal to retail investors is precisely this proposition of investing in just one ETF that is equivalent to investing in a wide array of ETFs.
The top constituents of the Reit include the following:
CapitaLand Ascendas REIT Units
Frasers Logistics & Commercial Trust
Mapletree Logistics Trust
CapitaLand Integrated Commercial Trust
Keppel DC REIT
Singapore Reits have been underperforming in recent times. For example, year-to-date 2024, one of the worst performers, the Mapletree Logistics Trust is down 22.8%. And this is no wonder, why the Lion Phillip S-Reit ETF, which is composed of Singapore Reits is not spared either.
Lion Phillip S-Reit ETF closed $0.906 on the last trading day of year 2023. At its current price of $0.705, the ETF is down 22.2% year-to-date which is similar to the performance of Mapletree Logistics Trust. And this is rather interesting to me, since a typical investor would have thought that by investing in a ETF of Reits, downside risks would have been diversified (i.e. average of the returns of the ETFs in the Reit).