SGX REIT ETF: A dog with fleas

In Currencies, Reits on 14/10/2016 at 4:28 pm

I was keen to learn more about the Reit ETF that is being promoted.

Until I learnt that a large percentage of the SGX REIT ETF is in Australian REITs: 60% to be precise. Now other than exposure to the A$, the commodity currency, the problem isAustralia has a withholding tax, currently at 15%.

It is also important to note that that the distributions paid by the pool of listed REITs are also subjected to Singapore corporate income tax rate which is currently at 17%. This tax is applicable at the fund level but not at the individual level.

Should you invest in the SGX APAC REIT ETF? Here are 5 things you need to consider…

All these taxes, and mgt charges (it’s not a cheap ETF) makes lousy yield of only around 4.5% net.


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