(Sept 25): Dividend-focused exchange-traded funds have long been popular among investors in the US. These ETFs tend to have higher dividend yields as well as regular distributions, making them popular among retirees and those seeking an income addition to their portfolios.
Such ETFs have not gained as much traction among Singapore investors, says Grandtag Financial Consultancy CEO Ben Fok. But this could change as more of such products are rolled out. This past year, there were two new offerings for investors. Last October, Phillip Capital Management launched the Phillip SGX Asia-Pacific Dividend Leaders REIT ETF. This was the first real estate investment trust ETF to list on the bourse. In May, Thailand-based One Asset Management made its maiden foray into Singapore with a smart-beta ETF: the One STOXX Asean Select Dividend Index Fund.
Both ETFs join two others that have been listed on the Singapore Exchange for some time: Deutsche Asset Management’s db x-trackers STOXX Global Select Dividend 100 UCITS ETF, which was listed in 2010; and the CIMB S&P Ethical Asia Pacific Dividend ETF, which was listed in 2012.