The Vetiva Sector Series ETFs comprising the Vetiva Banking ETF, Vetiva Consumer Goods ETF and Vetiva Industrial ETF (“VSS ETFs” or “the ETFs”) have begun trading on the floors of the Nigeria stock exchange today. At the close of business on October 21, the Vetiva Sector Series witnessed and recorded encouraging number of trades, both in volume and value.
The Vetiva Sector Series ETFs are open-ended equity-based exchange traded funds designed to individually track the NSE Banking Index, NSE Consumer Goods Index and NSE Industrial Index respectively and to replicate the price and yield performance of the relevant Index.
Though the ETFs may be more suitable to institutional and high net worth investors, they will no doubt improve the liquidity of the Nigerian Stock Market. Prior to the launching and subsequent trading of the Vetiva Sector Series ETFs, Nigeria had only 3 ETFs with a total Net Asset Value of N4.14 billion ( according to the SEC NAV Summary report of October 2nd). This represents about 1.9% of the total Net Asset Value of mutual funds in Nigeria.
Source: Quantitative Financial Analytics
Nigerian investors now have 7 ETFs to chose from, 4 of which are now being managed by the Vetiva Asset Management. It will be recalled that Vetiva Asset management manages the Vetiva 30 ETF which tracks and seeks to replicate the performance of the NSE 30 Index,