NSE Promotes ETFs as a Sound and Viable Investment Option

The Nigerian Stock Exchange (NSE), the leading market for Exchange Traded Funds (ETFs) in the West African region, has commenced a three-day enlightenment campaign to increase investors’ awar​eness and participation in the ETFs market.  The campaign which runs from June 26-28, 2019, will see the Exchange engage investors through social media, radio, email and in-house workshop, on the benefits of ETFs as a transparent and low-cost investment option.

Commenting on the campaign, Mr Jude Chiemeka, Divisional Head, Trading Business Division, NSE, said that “this initiative is in line with the NSE’s strategic objective of providing new and accessible opportunities for citizens to create durable wealth.

He further explained that, the Exchange continues to showcase the benefits of ETFs as a sound and viable investment option to tap into the capital markets. I am pleased with efforts made by ETF providers and advisers to create and introduce more ETFs that align with the needs of institutional and retail investors thereby deepening the ETF market segment”.​

ETFs are professionally managed vehicles designed to give investors broad exposure to the market by tracking an index (market cap allocations) or specialized themes that consider factors such as value and growth investing (smart beta strategy). The ever-growing investment vehicle gives institutional and individual investors access to a wide range of asset classes such as stocks, bonds, commodities, real estate and investment themes, i.e. Shariah investing, sector bias, dividend yield and more.

The statement further added, “ETFs can be purchased on the NSE just like Stocks and Bonds through Dealing Member Firms as well as online trading platforms. Investors are advised to take advantage of the discounted trading fee regime offered by the ETF Market Authorized Dealers – Stanbic IBTC Securities Limited and Vetiva Securities Limited which is open till the end of June 2019.

The Nigerian Stock Exchange (“NSE”) offers a fully electronic trading platform that delivers the benefits of transparency, tremendous speed and efficiency. In December 2011, the first ETF (tracking the price of Gold) was listed on the Nigerian Stock Exchange’s ETF Board, since then, a number of equity and Fixed income ETFs have been introduced to the Nigerian bourse.