Last week after selling funds and AEM from CPFIS, I said I was considering buying Nikko Asia Ex Japan. I was thinking of taking some time to think about it before making the decision. However, with the report of a better CPI last night, I FOMO-ed and decided to buy my first tranche of CFA this morning!
For those of you who are not familiar with CFA, it is basically a REIT ETF. Besides this REIT ETF, the other REIT ETFs are Lion-Phillip S-Reit ETF, CSOP iEdge S-Reit Leaders ETF, UOB Asia Pacific Green REIT ETF, and Phillip SGX APAC Dividend Leaders REIT ETF.
I am not going to compare them as a couple of investing websites already done a good job in doing that. I will leave the links at the end of the post for your reference. For me, the reason to choose CFA over the others is simply I can invest in this with CPF.
The following shows the top 10 holdings in the ETF.
I do not like all the REITs in the top 10. In fact, I only have the Mapletree family of REITs in my cash portfolio. Having said that, I think they are some of the bigger players in the REIT industry, so overall quality should be alright. Being an ETF, I do not need to deal with the nuances of individual REITs.
Performance doesn’t look too good and that is probably due to the weakness in REITs over the past two years. However, I do think that going forward, thing should more or less stabilise. So if its dividend can sustain at $0.05, then I will be getting a decent yield of 6.2% for this investment.
Is it possible for worse performance in REITs?
Definitely! Excluding any black swan event, there could still be further rate hike or even recession that affect businesses. However, I do think that any downside would not be as bad as what REITs had experienced over the past two years.
Referral
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Other referral links for the services and platforms I used. If you would like to use any of them, do sign up my referral links.
Trust Bank (code: 1X9DDP1V, additional $10 Fairprice voucher)
Keppel Electric
FSMOne (code: P0003528)
StocksCafe (code: TFI)
Webull
Comparison to REIT ETF Links
Top Singapore REIT ETFs: How to Choose the Best One for Your Portfolio
REIT ETF Singapore Guide (2023): Here’s What Investors Need to Know!
Comparing the five REIT ETFs listed in Singapore: Which should you pick?
Singapore REIT ETFs: A Guide for the Laid-Back Investor