$LION-PHILLIP S-REIT(CLR.SI)$Has high-yielding S-REITs with strong competitive moats and good financial health.  

As of 30 September 2021, the ETF consists of 27 REITs, although the number of constituents may change from time to time.

Each constituent has a weightage cap of 10%, although market movements may cause some holdings to exceed 10% in between rebalancing dates. The index is rebalanced twice a year in June and December.

Mapletree Logistics Trust (SGX: M44U) is the largest constituent of the ETF, holding a weightage of 9.9%. It is followed by Ascendas REIT (SGX: A17U) at 9.9% and Mapletree Industrial Trust (SGX: ME8U) at 9.8%.

Industrial REITs have the largest representation in the ETF, with 35.7% of the fund allocated to the sector. The second-most represented sector is retail, with a 32.8% exposure.

With a fund size of S$223.6 million, the Lion-Phillip S-REIT ETF is substantially larger than another SGX-listed REIT ETF, the Phillip SGX APAC Dividend Leaders REIT ETF (SGX: BYI), which has a fund size of US$17.3 million.

The annualised return of the Lion-Phillip S-REIT ETF since the fund’s inception in October 2017 is 6.2%, assuming all dividends are reinvested.

In the same time period, the benchmark index has provided an annualised return of 6.6%, leaving the fund’s tracking error at 0.4%.

In 2020, the fund charged an expense ratio of 0.60%, a relatively affordable fee compared to other REIT ETFs. 

All things considered, the Lion-Phillip S-REIT ETF is a convenient way for investors to diversify their investment portfolio into various property types.