Recently, Straits Times released a list of the 10 top dividend-paying ETFs on SGX, and the yields looked very juicy. But just because a yield is high doesn't always mean it's a good investment. This guide goes through these 10 ETFs to see what they actually do, how much they charge in fees, and their long-term potential.
Top 10 Dividend-Paying ETFs on SGX: Ranked and Reviewed
Recently, Straits Times released a list of the 10 top dividend-paying ETFs on SGX, and the yields looked very juicy. But just because a yield is high doesn't always mean it's a good investment.
This guide goes through these 10 ETFs to see what they actually do, how much they charge in fees, and their long-term potential. Each ETF is ranked into one of four tiers:
These two funds are the flagship ETFs of the Singapore market, representing the top 30 Singapore blue-chip names. Because both track the same index, their holdings are almost identical:
- DBS alone accounts for roughly 25% of the entire weighting
- OCBC and UOB make up another major portion
- Rest includes Singtel, Keppel, Jardine Matheson, and SGX
Pros
- Simplicity — One fund gives you exposure to major pillars of Singapore's economy
- Steady dividends — Long track record of dividends that have been gradually rising over time
- Low fees — Both charge under 0.30% per year
Cons
- Concentration risk — Close to 50% tied to just 3 local banks
- Limited growth — Singapore is a small and mature market without the same long-term growth potential as global equities
- Country concentration — If STI ETFs are your only equity exposure, you're taking on large country risk for modest returns
Verdict
Good Tier — Strong and dependable, but not quite broad or fast-growing enough for Elite tier status.
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S-REIT ETFs — Good Tier
Lion-Phillip S-REIT ETF (CLR)
- Expense Ratio: 0.60% per year
- Dividend Yield: ~5.5%
- 3-Year Average Returns: ~4%
CSOP iEdge S-REIT Leaders ETF (SRT)
- Expense Ratio: 0.60% per year
- Dividend Yield: ~5.5%
- 3-Year Average Returns: ~4%
What They Do
Both funds aim to give you broad exposure to Singapore-listed REITs, covering most major S-REIT names:
- CapitaLand Integrated Commercial Trust
- CapitaLand Ascendas REIT
- Mapletree Logistics Trust
Amova–Straits Trading Asia ex Japan REIT ETF (CFA) — Good Tier
- Expense Ratio: ~0.55% per year
- Dividend Yield: ~5.5%
- 5-Year Average Returns: -1% to 1%
What It Does
Unlike S-REIT ETFs which focus entirely on Singapore, this fund expands holdings to include REITs across the broader Asia region (excluding Japan):
- Link REIT (Hong Kong)
- Embassy Office Parks REIT (India)
- Other Asian REITs across various markets
Pros
- Geographic diversification — Exposure to markets in different phases of the property cycle
- Growth opportunities — Recovery in Hong Kong's retail sector, expansion of India's commercial REIT market
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Tracks high-dividend-paying REITs across Asia Pacific (excluding Japan). Unlike other REIT ETFs, it weights holdings based on dividend strength rather than market capitalisation.
Includes exposure to:
- Australia's large and mature REIT sector
- Hong Kong's established property trusts
Pros
- Broader APAC REIT exposure
- Dividend-focused selection methodology
Cons
- Extremely high fees — 1.64% is almost three times the cost of peers
- 3-Year Performance: One of the strongest in Singapore (outperformed STI ETF)
What It Does
Selects and weights Singapore companies based on their carbon efficiency. Unlike traditional STI ETFs, this fund includes companies not in the STI:
- Sea Limited
- Trip.com
- Grab
- Flex
Many of these stocks have been performing strongly in recent years, adding growth that traditional Singapore companies typically lack.
Pros
- Growth exposure
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iShares JPMorgan USD Asia Credit Bond ETF (N6M) — Meh Tier
- Expense Ratio: 0.35% per year
- Dividend Yield: ~5%
- 10-Year Annualised Returns: 3% to 4%
- Average Credit Rating: BBB (investment grade)
What It Does
Provides exposure to investment-grade Asian bonds from established issuers:
- Petronas (Malaysia)
- Indonesian sovereign and quasi-sovereign bonds
- Major Philippine banks
- State-linked Singapore entities
Pros
- Convenient access — Buying individual Asian bonds directly is impractical for retail investors
- Diversified exposure
iShares USD Asia High Yield Bond Index ETF (O9P) — Avoid Tier
- Dividend Yield: ~7%
- Average Credit Rating: BB (junk bond category)
What It Does
Provides exposure to riskier issuers across India, China, and the Philippines in sectors like:
- Metals and mining
- Gaming
- Electric utilities
- Large retail groups
These companies borrow in USD and offer higher interest rates to attract investors, hence the high yield.
Pros
- High yield of close to 7%
- Regional diversification across emerging Asian markets
Cons
- High credit risk — Many issuers have weaker balance sheets and significantly higher default probability
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- Holdings: ~30 largest banks, insurers, and financial institutions across Asia-Pacific
What It Does
Focuses entirely on the financial sector — the largest and most established banks, insurers, and financial institutions across Asia-Pacific that form the backbone of their respective economies.
Pros
- Convenient diversification — Exposure to APAC financial sector in one ETF
Information based on data available as of November 2025. Yields, fees, and performance may change.
I Ranked The Top Dividend ETFs In Singapore
- Frasers Centrepoint Trust
- Many other established S-REITs
Pros
- Instant diversification — Exposure to an entire basket of high-quality properties
- Property variety — Shopping malls, business parks, warehouses, logistics hubs, data centres
- Steady income — Distributions backed by rental cash flow are predictable
- Established market — Singapore's REIT market is one of the most established in the region with highest distribution yields globally
Cons
- Sector concentration — You're betting on Singapore's property market and the interest-rate cycle
- Interest rate sensitivity — When rates rise, refinancing becomes expensive and valuations weaken
- Distribution risk — Can lead to distribution cuts or slower growth, as seen in recent years
Verdict
Good Tier — Solid and reliable income investments, but should be complemented by broader global equities to balance interest-rate sensitivity.
- Reasonable fees — Similar expense ratio to other REIT ETFs
Cons
- Currency fluctuations — Distributions earned in multiple Asian currencies before converting to SGD
- Payout variability — Currency movements can cause payouts to vary year to year
- Regulatory differences — Varying levels of market transparency and corporate governance across Asian markets
- Volatility — Sentiment in Hong Kong, China, or India can swing quickly
Verdict
Good Tier — Good job adding geographical diversification and growth opportunities beyond Singapore, but brings higher complexity and risk.
-
Fee drag
— High expenses erode returns significantly over time
- Tiny fund size — US$7.9 million vs Lion-Phillip S-REIT ETF's S$700 million
- Wide bid-ask spreads — Less efficient trading due to small size
- Closure risk — Well below the US$50 million AUM threshold considered sustainable for ETFs
Verdict
Avoid Tier — The combination of high fees, small fund size, and ongoing risk of closure makes it hard to invest in, especially when better and cheaper alternatives exist.
— Inclusion of faster-growing companies boosts potential
- Reduced bank dependency — Less reliance on banks compared to STI
- Strong performance — Outperformed STI ETF over past 3 years
- Attractive yield — ~5.9% is generous for a growth-oriented fund
- Reasonable fees — 0.45% is slightly higher than STI ETFs but justifiable
Cons
- Yield composition — Part of the yield may come from capital rather than pure dividends
- Unproven long-term — Need to see how it performs over the next decade
- Newer fund — Less track record compared to STI ETFs
Verdict
Elite Tier — Added growth exposure makes it a strong satellite holding for long-term investors. Will need to watch if it can maintain its advantage over STI consistently.
— Broad regional fixed income in one ticker
- Conservative risk — Investment-grade portfolio with steady income
- Reasonable fees — 0.35% doesn't eat too heavily into returns
Cons
- Better alternatives exist — iShares Core Global Aggregate Bond UCITS ETF (AGGU) offers:
- Far broader global diversification
- Much lower expense ratio of 0.10%
- Higher average credit rating of AA (significantly safer)
- Yield of 2.95% (slightly lower but safer)
Verdict
Meh Tier — Perfectly good choice for investors who specifically want Asian bond exposure, but AGGU offers lower cost, global reach, and better defensive characteristics.
Junk bond status
— BB rating means elevated chance of repayment issues
- Currency volatility — USD-denominated bonds expose you to USD/SGD fluctuations
- Unexpected volatility — Not what most people expect when investing in bonds
- Unsuitable for stability — Contradicts the safety and stability most investors seek from bonds
Verdict
Avoid Tier — While yield is undeniably high, the level of risk makes it unsuitable for most long-term portfolios, especially for investors who look to bonds for safety and stability.
Strong recent performance
— Supported by rising interest margins and steady earnings
Cons
- High expense ratio — 0.83% is more expensive than most broad-market equity ETFs
- Dividend withholding tax — 20% holdings in Japan (15% tax) and 16% in South Korea (22% tax) eat into dividends