NGSE Begins 3-Day Awareness Drive On ETFs As Viable Investment Option


The Nigerian Stock Exchange (NSE) on Wednesday commenced a three-day enlightenment campaign to increase investors’ awareness of Exchange Traded Funds (ETFs) market.
As part of the campaign, which runs till Friday, June 28, 2019, the Exchange plans to engage investors through social media outlets, radio, email and in-house workshop, on the benefits of ETFs as a transparent and low-cost investment option.
A statement by the NSE quoted Jude Chiemeka, Divisional Head, Trading Business Division at the NSE, saying the campaign “is in line with the NSE’s strategic objective of providing new and accessible opportunities for citizens to create durable wealth.”
The exchange, he added, “continues to showcase the benefits of ETFs as a sound and viable investment option to tap into the capital markets,” expressing pleasure at “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. They include, for example, Shariah investing, sector bias, and dividend yield, among others.
Continuing, the statement by the exchange assured that ETFs can be purchased on its trading floor, “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.