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:
- Elite Tier — Exceptional, top-quality investments
- Good Tier — Strong and dependable choices
- Meh Tier — Decent but with notable drawbacks
- Avoid Tier — Not recommended due to significant issues
This is not financial advice and is for educational purposes only.
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- Dividend Yield: ~4%
- 10-Year Annualised Returns: ~8.6%
- Expense Ratio: 0.24% per year
- Dividend Yield: ~4%
- 10-Year Annualised Returns: ~8.6%
Formerly known as Nikko AM Singapore STI ETF
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
- 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
- Concentration risk — Close to 50% tied to just 3 local banks
- Sector dependency — Dividend stream heavily influenced by Singapore's credit conditions
- 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
Good Tier — Strong and dependable, but not quite broad or fast-growing enough for Elite tier status.
- Expense Ratio: 0.60% per year
- Dividend Yield: ~5.5%
- 3-Year Average Returns: ~4%
- Expense Ratio: 0.60% per year
- Dividend Yield: ~5.5%
- 3-Year Average Returns: ~4%
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
- Expense Ratio: ~0.55% per year
- Dividend Yield: ~5.5%
- 5-Year Average Returns: -1% to 1%
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
- 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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- Expense Ratio: 1.64% per year (extremely high)
- Dividend Yield: ~4.2%
- AUM: US$7.9 million (very small)
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
- Broader APAC REIT exposure
- Dividend-focused selection methodology
- Extremely high fees — 1.64% is almost three times the cost of peers
- Expense Ratio: ~0.45% per year
- Dividend Yield: ~5.9%
- 3-Year Performance: One of the strongest in Singapore (outperformed STI ETF)
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.
- Growth exposure
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- Expense Ratio: 0.35% per year
- Dividend Yield: ~5%
- 10-Year Annualised Returns: 3% to 4%
- Average Credit Rating: BBB (investment grade)
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
- Convenient access — Buying individual Asian bonds directly is impractical for retail investors
- Diversified exposure
- Dividend Yield: ~7%
- Average Credit Rating: BB (junk bond category)
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.
- High yield of close to 7%
- Regional diversification across emerging Asian markets
- High credit risk — Many issuers have weaker balance sheets and significantly higher default probability
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- Expense Ratio: 0.83% per year (relatively high)
- Dividend Yield: ~6%
- Holdings: ~30 largest banks, insurers, and financial institutions across Asia-Pacific
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.
- Convenient diversification — Exposure to APAC financial sector in one ETF
- Reliable dividend payers — Banks and insurers traditionally pay consistent dividends
- Multi-market exposure — Reduces reliance on any single economy's banking cycle
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- Lion-OCBC Securities SG Low Carbon Index ETF (ESG) — 5.9% yield, growth exposure, outperformed STI
- SPDR Straits Times Index ETF (ES3) — 4% yield, 0.28% fees, Singapore blue chips
- Amova Singapore STI ETF (G3B) — 4% yield, 0.24% fees, Singapore blue chips
- Lion-Phillip S-REIT ETF (CLR) — 5.5% yield, diversified S-REITs
- CSOP iEdge S-REIT Leaders ETF (SRT) — 5.5% yield, diversified S-REITs
- Amova–Straits Trading Asia ex Japan REIT ETF (CFA) — 5.5% yield, regional diversification
- iShares JPMorgan USD Asia Credit Bond ETF (N6M) — 5% yield, but AGGU is better
- Choose ESG ETF for growth + dividends
- Choose ES3 or G3B for pure blue-chip exposure
- CLR or SRT for Singapore-focused
- CFA for regional diversification
- Consider AGGU (global) over N6M (Asia-focused) for better risk-adjusted returns
- High-fee funds with small AUM (BYJ)
- High-yield junk bonds disguised as "income" (O9P)
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Information based on data available as of November 2025. Yields, fees, and performance may change.
I Ranked The Top Dividend ETFs In Singapore
- Many other established S-REITs
- 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
- 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
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
- 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
Good Tier — Good job adding geographical diversification and growth opportunities beyond Singapore, but brings higher complexity and risk.
- 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
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.
- 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
- 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
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.
- Conservative risk — Investment-grade portfolio with steady income
- Reasonable fees — 0.35% doesn't eat too heavily into returns
- 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)
Meh Tier — Perfectly good choice for investors who specifically want Asian bond exposure, but AGGU offers lower cost, global reach, and better defensive characteristics.
- 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
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.
- 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
- Sector concentration risk — Performance heavily influenced by:
- Interest-rate movements
- Credit conditions
- Regulatory shifts
- Regional economic health
- Potential volatility — If Asia slows or banks face bad loans/narrowing margins, expect heightened volatility
Meh Tier — Offers solid income and decent regional exposure, but sector concentration and higher costs limit appeal for most investors.
- Phillip SGX APAC Dividend Leaders REIT ETF (BYJ) — 1.64% fees, tiny fund size, closure risk
- iShares USD Asia High Yield Bond Index ETF (O9P) — 7% yield but junk bonds with high default risk
