UOB AM lists first Asia Pacific green REIT ETF

UOB Asset Management has announced the listing of the UOB Asia Pacific Green Real Estate Investment Trust ETF.

UOB AM says the listing is the world’s first such ETF that aims to enable individuals to invest in quality green REITs across APAC with dividend yields. The ETF attracted more than S$80 million in assets during the initial offering period, which closed on 18 November 2021.

The UOB APAC Green REIT ETF aims to replicate the performance of the recently launched iEdge-UOB APAC Yield Focus Green REIT Index. The index tracks 50 higher-yielding REITs across APAC that display relatively better environmental performance using a evaluation based mainly on GRESB’s data including the lowering of greenhouse gas emissions, advancing energy and water conservation and supporting green building certification.

The REITs featured in the UOB APAC Green REIT ETF are spread across Australia, Hong Kong, Japan and Singapore. Sectors include industrial, office, residential and retail.

The UOB APAC Green REIT ETF aims for a dividend yield of up to four per cent based on the earnings potential of real estate companies focused on their sustainability performance. It targets to distribute dividends on a quarterly basis.

Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB, said, “The impact of the sustainability megatrend is wide-ranging, from economies to businesses and individuals. The call for action continues to accelerate, reinforcing the urgency for collective efforts. Green real estate will be a huge driver in the transition to a lower carbon economy, with tremendous growth potential and investment opportunities. We are honoured to partner SGX and GRESB in the world’s first Asia Pacific green REIT ETF and will continue to play our role as a catalyst and enabler in steering wealth to sustainable investments.”