January 27, 2023

The market capitalization of Nigeria’s Exchange Traded Funds (ETFs) lost N86.99 million in one week, characterized by the negative performance of most of the registered funds with the Securities and Exchange Commission (SEC).

According to information obtained from SEC, the twelve ETFs recorded a 9.58% average week-on-week decline in their offer price between the 10th and 17th of June 2022. Notably, of the twelve funds, nine saw their fund price decline, two of them closed flat, while only one recorded a positive movement, albeit marginal.

The market capitalization of the Exchange Traded Fund declined from N7.56 billion recorded as of 10th June 2022 to N7.48 billion as of 17th June 2022, representing a decline of N86.99 million (or -1.15%).

The week was particularly bad for ETFs, compared to the previous week when the fund category gained 47.4% on the average week-on-week. In the review week, the Nigeria stock market closed on a bearish note as the All-Share index shed 2.68% to close at 51,775.08 basis points.

Nairametrics tracks the performance of various fund categories. Below is how the listed ETFs on the Securities and Exchange Commission performed between 10th and 17th June 2022.

New Gold ETF: -84%

  • The offer price of New Gold ETF dipped by 84.66% to trade at N8,770 compared to N57,170 recorded in the previous week. On the other hand, the market capitalization of the fund improved by 13.9% to stand at N501.38 million.
  • The New Gold ETF, which is managed by New Gold Managers tracks the price of gold.

Greenwich ALPHA ETF: -7.64%

  • Greenwich ALPHA ETF recorded a 7.64% decline in its fund price to close the week at N127.6. On the reverse side, the market capitalization increased marginally by 0.95% to stand at N595.84 million, indicating improved subscriptions despite a decline in fund performance.
  • Greenwich Alpha is an open-ended ETF that tracks the NSE 30 Index, which is an index comprising 30 of the most liquid and capitalised stocks trading on the Exchange.
  • According to the company, the fund is designed to enable investors to obtain market exposure to the securities of the constituent companies of the NSE 30 index and to reproduce the performance of the index.

Meristem Growth ETF: -3.15%

  • Meristem Growth ETF is an Exchange Traded Fund designed to track growth stocks and is managed by Meristem Wealth Management Limited.
  • The fund dipped by 3.15% in the week under review, while the market capitalization improved by 0.38% to stand at N191.86 million as of 17th June 2022.
  • Meanwhile, a look at the weekly report from the Nigerian Exchange Group, the NGX Meri Growth index dipped 1.18% during the week under review, bringing the year-to-date performance to 30.51%.

Lotus Capital Halal ETF: -2.46%

  • Lotus Capital Halal ETF dipped 2.46% week-on-week in terms of the offer price, while its market capitalization also decreased by 2.58% to stand at N504.08 million
  • The Lotus Halal Equity Exchange Traded Fund “LHE ETF” is an open-ended fund that tracks the performance of the NSE-Lotus Islamic Index (NSELII).
  • It is designed to enable investors to obtain market exposure to the securities of the constituent companies of the NSE-Lotus Islamic Index and to replicate the price and yield performance of the index.

About Exchange Traded Funds

Exchange-Traded Funds are tradable investment products (like stocks) whose returns track the performance of an underlying index. An ETF holds assets such as Equities, Bonds, Currencies, Commodities or Real Estate, etc and its return should closely align with the returns of the underlying index, save for trading costs, etc

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