Think of it as the part two to my previous post.
The full name of the new REIT ETF is actually Phillip SGX APAC Dividend Leaders REIT ETF. From the official website, it states that it “seeks to provide a high level of income and moderate long-term capital appreciation by tracking the investment results of 30 publicly traded equity REITs in the Asia Pacific ex-Japan region.”
What makes it somewhat special is that “the ETF follows a smart beta strategy which will rank and weight the underlying REITs according to dividends paid, with the aims of enhancing returns above that of traditional market-cap weighted ETFs”.
Traditional index funds are put together by market-cap weightings. And then there are different ways of assembling index funds that don’t rely on market-cap weightings, such as the Phillip SGX APAC Dividend Leaders REIT ETF in this instance.
Smart beta is stupid. Well, I mean, I didn’t say that. That’s what Nobel laureate Bill Sharpe says. I just quoted him. Just think about this for a minute. It’s another form of active management to begin with. If smart beta is good, and that means it beats the index. Then dumb beta does even worst than the index, right? So, smart and dumb are different. Then why are people going to be dumb when it’s so easy to be smart? It’s just another claim that I can do this better.
Anyway, I wasn’t able to attend the invite from the folks from Phillip Capital Management to learn more about the ETF, but these awesome bloggers below gives some important/alternative food for thought on the upcoming ETF.
Do check them out!
Who will like this SGX APAC Dividend Leaders REIT ETF?
– Singapore Man of Leisure
Personal thoughts on Phillip SGX APAC Dividend Leaders REIT ETF
– Growing your Tree of Prosperity
Another Reason to be wary of the REIT ETF
– Got Money, Got Honey
REITs. Simply explained! (6) – Revisit
– Create Wealth 8888
More Than Index Investing
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