Beyond growth, Asean’s attractive dividend landscape is also drawing renewed attention amid a resurgence in dividend investing. Global ETF assets tracking dividend strategies reached an all‑time high in 2025 as investors sought alternative sources of income in a falling‑interest‑rate environment and looked for stability amid persistent global uncertainty. The appeal is intuitive: dividend stocks offer not only regular income but also a measure of resilience when markets turn volatile.
This resilience stems from the quality of companies that typically pay dividends. Such firms are generally seen as financially stable since sustaining regular payouts requires steady cash‑flow generation, disciplined capital management and robust balance sheets – attributes that help these companies remain resilient during periods of market stress.
Asean’s income edge
Against this backdrop, Asean stands out for its compelling dividend yield profile. Based on trailing 12-month gross yields, the FTSE Asean Index offers a dividend yield of 4.42%, well above many developed market benchmarks, including those in US and Europe1.
A key driver of this yield premium is the prevalence of dividend-paying companies across Southeast Asia. Many of the region’s financial institutions, telcos and utilities, often among the largest index constituents, have long histories of distributing a meaningful share of earnings to shareholders. Such companies typically operate in mature, cash‑generative industries with stable earnings, enabling them to sustain regular dividends even through different economic cycles.
Moreover, there is an established dividend-paying culture in Asean where shareholders view consistent cash returns as a hallmark of corporate discipline and quality. This expectation has shaped capital‑allocation norms across the region, contributing to a higher proportion of companies that prioritise dividends as a core component of shareholder returns.
A supportive macro backdrop
Yield metrics aside, Asean also enjoys a powerful demographic advantage. Nearly half of the region’s population is under the age of 30, and by 2030, roughly 70% is expected to be middle class, a secular shift that supports rising consumption and enhances workforce productivity. Asean is also on track to become the world’s fourth‑largest economy by 2030, a milestone that expands the region’s relevance for global investors and strengthens the long‑term corporate earnings base.
On the trade front, tariff reductions across key Asean markets have eased longstanding overhangs and lifted GDP growth expectations, helping to reinforce investor confidence. Reflecting this improving backdrop, the FTSE Asean Index returned 16.7% in USD terms in 2025, not far behind the 23% gain in global markets2.
Even so, valuations across several Asean markets such as Indonesia, Malaysia and Thailand remain below their 10‑year average forward P/E ratios, offering attractive upside potential.
Capturing the theme: UOBAM Ping An FTSE Asean Dividend Index ETF (SGX: UPD, UPU)
For investors keen to tap into Asean’s dividend opportunities and long-term growth potential, UOB Asset Management has launched the UOBAM Ping An FTSE Asean Dividend Index ETF (the ETF), which seeks to replicate, before expenses, the performance of the FTSE Asean ex REITs Target Dividend Index (the Index).
The Index comprises large‑ and mid‑cap companies across Asean and is designed to deliver a 100% dividend yield increase compared to its parent benchmark, the FTSE Asean Index.
Here are four things to know about the UOBAM Ping An FTSE Asean Dividend Index ETF.
1. Attractive income potential
The ETF aims to pay dividends of at least 6.0% per annum in 2026 and 20273, placing it among the highest‑yielding Singapore‑listed ETFs4.
2. Exposure to Asean’s regional champions
The ETF invests in leading companies across five key Asean markets — Singapore, Indonesia, Malaysia, Thailand and the Philippines — offering exposure to the region’s long-term growth potential while providing stability and resilience. Top holdings include Singapore’s financial leaders, DBS Group, OCBC, and UOB, alongside regional champions such as Malaysia’s Maybank, Indonesia’s Astra International, and Thailand’s PTT.
3. Designed for stability and sustainable income
The ETF is built with stability at its core. It maintains significant allocations to stable, income-generating sectors such as financials, telecommunications and utilities, which account for about 75% of the portfolio. This positioning helps reduce overall portfolio risk by anchoring returns in businesses with durable cash flows.
To further enhance dividend quality, the Index applies strict exclusion screens to remove companies with unsustainably high yields, negative momentum that may indicate financial stress, or yield spikes driven by falling share prices5. These filters help ensure exposure to reliable dividend payers with a higher likelihood of delivering sustainable income over time.
4. Low correlation with global markets6
The UOBAM Ping An FTSE Asean Dividend Index ETF can serve as an effective diversifier given that the Index has low correlations with major global equity benchmarks such as the Russell 1000 Index and FTSE China Index. This makes the ETF a useful complement for portfolios that may already be heavily tilted to the US or China.
In addition, the Index exhibits relatively low correlation with real estate, including the FTSE ST All-Share Real Estate Index. As such, the ETF could be used to complement existing allocations to Singapore property stocks, helping investors diversify income sources and reduce reliance on any single sector for yield.
ETF information
The ETF is listed on the Singapore Exchange (SGX) and is available in both SGD (UPD) and USD (UPU) counters, offering flexibility for different investor preferences. It can be purchased using cash or SRS funds, and as an Excluded Investment Product (EIP), it does not require Customer Account Review (CAR) clearance.
Investors can trade the ETF from just one unit, as there is no minimum board lot size, making it accessible even for first‑time investors. The ETF charges a management fee of 0.45% per annum and follows a semi‑annual rebalancing schedule in March and September, in line with the Index methodology.
- Source: Factset, Bloomberg, FTSE Russell as of Nov 28, 2025
Important notice and disclaimers
Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the NAV per unit of the relevant Distribution Class as at the last business day of the calendar month or quarter. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.
This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund ("Units") or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.
The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd's ("UOBAM") views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited ("UOB"), UOBAM, or any of their subsidiary, associate or affiliate ("UOB Group") or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.
Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited ("SGX"). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.
An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of all or part of the principal amount invested. Investors should read the Fund's prospectus and product highlights sheet, which are available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You are responsible for your own investment decisions. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.
The UOBAM Ping An FTSE Asean Dividend Index ETF has been developed solely by UOBAM. The UOBAM Ping An FTSE Asean Dividend Index ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.
All rights in the FTSE Asean ex REITs Target Dividend Index vest in the relevant LSE Group company which owns the FTSE Asean ex REITs Target Dividend Index. "FTSE®" is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license.
The FTSE Asean ex REITs Target Dividend Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE Asean ex REITs Target Dividend Index or (b) investment in or operation of the UOBAM Ping An FTSE Asean Dividend Index ETF. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the UOBAM Ping An FTSE Asean Dividend Index ETF or the suitability of the FTSE Asean ex REITs Target Dividend Index for the purpose to which it is being put by UOBAM.
The inclusion of "Ping An" in the name of the UOBAM Ping An FTSE Asean Dividend Index ETF reflects the collaboration between us and Ping An Fund Management Company Limited in relation to the Sub-Fund (which a Ping An feeder ETF in China is expected to feed into in the future). For clarity, Ping An is not a sub-manager or advisor in relation to the Sub-Fund, and the Sub-Fund is solely managed by us.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
UOB Asset Management Ltd Co. Reg. No. 198600120Z
