Overview of SG REITs VS STI
There are many reasons why REITs should be part of your portfolio, or should I say..the bulk?
Let us jump straight in to look at FTSE ST REIT Index below, it has a good dividend yield of 4.9%. It is more defensive than stocks in theory, and has well defeated returns of STI (Straits Times Index) in 7D, 30D, YTD and 1 Year returns.
Below data is accurate as of 30 Apr 2020, taken from
Reitas website.
Pitting SG REITs against S&P 500
Okay, let's not talk about STI? Let's compare S&P 500 against the SGX iEdge-SG REIT index. Using Tradingview charts, we have 5-year returns of 36.91% for S&P 500 and 8.96% for iEdge SG REIT Index.
Yes, S&P 500 performed better. This is because S&P is more heavily weighted towards the Tech sector, with main constituents like Microsoft, Apple, Amazon,
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