Many readers asked me about this NikkoAM-StraitsTrading Asia ex Japan REIT ETF. Should they subscribe or not subscribe?
My answer: It depends on you.
- If you know how to Build a Diversified REIT portfolio consists of different sectors from Industrial, Commercial Office, Hospitality, Healthcare and Retail Malls using Core-Satellite portfolio strategy, the answer is NO.
- If you know how to select a fundamental strong REIT and know how to optimize your entry & exit, you can do a much better job than this NikkoAM-StraitsTrading Asia ex Japan REIT ETF which can only give you a 5% annual distribution yield. You can refer to the following yield comparison which model the NikkoAM-StraitsTrading Asia ex Japan REIT ETF composition. Just use a copy exactly DIY portfolio already give you a 5.94% compare to 5% distribution yield (note: exclude cost of diversification if your portfolio size is small).
- Combining the knowledge of Singapore REITs Selection and Building a Diversified Portfolio, you can easily get an annual distribution yield of more than 6%
My coming courses will address the above 3 points. Click the links below to find out more about the two courses.
- 2017-03-30 (Thu) Singapore: Diversified Investment Portfolio Construction workshop
- 2017-04-22 (Sat) Singapore: Hands-on REITs Investing Course
See previous post on NikkoAM-StraitsTrading Asia ex Japan REIT ETF IPO here.
See other seminars / courses / events here.
I attended a recent presentation. The index constituents have already been rebalanced. There are now 24 stocks.
Should I rebalance to the new breakdown?
How much will it cost if I keep this rebalancing like that?
Beng Tat,
You have to calculate the total cost of acquisition and also depends which brokers you use.