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REIT ETFs: 5 Reasons I am still not a fan after Budget 2018
By Financial Horse  •  February 25, 2018

The recent Budget 2018 was a momentous one for REIT ETFs, as it accorded tax transparency status for REIT ETFs from 1 July 2018.

Before this change, REIT ETFs receiving distributions from a Singapore listed REIT with Singapore properties would be subject to a 17% income tax. This meant that an average dividend yield of about 5.8% was reduced to 4+ %, basically destroying the ETF as an effective investment vehicle.

Given that this major regulatory hurdle has been removed, are REIT ETFs now a viable option to invest in S-REITs?

[Note: 05 March 2018] This article was amended on 5 March 2018 pursuant to feedback from Nikko AM in relation to the method by

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By Financial Horse
Financial Horse was founded with a simple goal – To provide high quality financial commentary, in plain English. He is a firm believer in Einstein’s quote that “If you can’t explain it to six-year-old, you don’t understand it yourself.” Too much of finance is shrouded in complex jargon, and Financial Horse aims to demystify financial investments.
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