NGX ETF Market Capitalization surpasses N20 billion in Q1 2021

The Nigerian ETP/ETF market capitalization hit N20.32 billion at the 2021 first quarter ending March 31, 2021.

This is according to the NGX Quarterly ETF Report – Q1 2021 published by the Nigerian Exchange Group on its website.

The report seen by Investogist shows that in the quarter in review, the trade volumes rose by 3064% from nearly 0.2 million units in Q1 2020 to 5.3 million units in Q1 2021.

In similar way, the market turnover rose by 4556% between Q1 2020 and Q1 2021.

As at March 31, 2021, the Exchange has 12 listed ETFs, with an average of N463.45 million worth of transaction per day, and 83.41K average daily volume of traded ETFs.

The 12 ETFs listed on the Exchange as at March 31, 2021 are tabulated below;

S/N	Asset Class Exposure	Symbol	Security Name	Market Capitalization (NGN 'Million)
1	EQUITIES	VETGRIF30	VETIVA GRIFFIN 30 ETF	2.471
2	EQUITIES	VETBANK	VETIVA BANKING ETF	0.310
3	EQUITIES	VETGOODS	VETIVA CONSUMER GOODS ETF	0.138
4	EQUITIES	VETINDETF	VETIVA INDUSTRIAL GOODS ETF	0.200
5	EQUITIES	LOTUSHAL15	LOTUS HALA EQUITY ETF	0.605
6	EQUITIES	STANBICETF30	STANBIC IBTC ETF 30	0.484
7	EQUITIES	SIAMLETF40	SIAML PENSION ETF 40	0.693
8	EQUITIES	GREENWICHETF	GREENWICHALPHA ETF	1.000
9	EQUITIES	MERGROWTH	MERISTEM GROWTH ETF	0.800
10	EQUITIES	MERVALUE	MERISTEM VALUE ETF	0.865
11	BOND	VSPBONDETF	VETIVA S&P NIGERIA SOVEREIGN BOND ETF	0.707
12	COMMODITY	NEWGOLD	NEWGOLD ETF	12.047

The report shows that NEWGOLD ETF was responsible for 99.91% of the total turnover value. 235 of the 316 ETF deals done in the period in review was for NEWGOLD ETF.

3.472 million units of NEWGOLD ETF was traded, this is out of a total volume of 5.252 million units of ETFs traded in the period.

Out of the N29.650 billion worth of ETFs transacted in Q1 2021, N29.629 billion of those was done on NEWGOLD ETF.

Foreign Portfolio Investment dominated the NGX ETF market, accounting for 92% of transactions in Q1 2021, while Domestic participation accounted for only 8%.

The report shows 99.8% of total transaction and 96.6% of total volumes of ETFs traded in Q1 2021 was driven by only ten brokers.

What is an ETF?

Exchange Traded Fund (ETF) is a type of investment fund and exchange traded product (ETP) that tracks the performance of an index or a “basket” of securities (such as shares, bonds, commodities, etc.).

ETFs are listed on a stock exchange and trade much like stocks, they provide investors with the opportunity to diversify their investments at relatively lower costs and gain exposure to different asset classes and strategies including;