Image credits: Business Times
REIT ETFs now a viable optionArguably one of the most important changes arising from Budget 2018 is the tax transparency treatment for S-Reit ETFs. Previously, REIT ETFs in Singapore were subject to a 17% corporate tax on their distribution. By removing this, REIT ETFs are now potentially viable options for investing in REITs, without having to undertake a detailed analysis and understanding of the individual REIT. However, as with all ETFs, it is crucial to understand:
What does the ETF track (Who created the index, and how is the index weighted?) Is the index well diversified, or are there potential concentration risks? What are the management fees? Is there sufficient trading liquidity?Given the seismic change that this entails for retail investors, I will be writing a full article to examine the available REIT ETFs on the SGX, and whether they are
...
