NGX ETF market capitalization hits N20.32 billion

The Nigerian Exchange Traded Products and ETF market has performed admirably since the outbreak of the COVID-19 pandemic in early 2020.

The market capitalization of Exchange Traded Funds (ETFs) listed on the Nigerian Exchange Limited, the biggest market for ETFs in West Africa, climbed to N20.32 billion in the first quarter of 2021, according to a report issued today by the NGX Group. From almost 0.2 million units in Q1 2020 to 5.3 million units in Q1 2021, trade volumes increased by 3,064%.

The Nigerian Exchange Traded Products and ETF market has performed admirably since the outbreak of the COVID-19 pandemic in early 2020, according to the NGX quarterly report for Q1 2021, with market capitalization of the 12 listed securities growing to N20.32 billion.

Alternative products such as (fungible) ETPs, which allow investors to hedge portfolios and enter/exit the market, have received good investor sentiment.

Even though five of the listed securities were the most active during the time under consideration, market turnover (value exchanged) increased by 4556 percent between Q1 2020 and Q1 2021, according to the study.
NewGold ETF led the ETF market in terms of both value and volume traded, with 3.47 million units worth N29.63 billion exchanged.

According to the report, international participation dominated the ETF industry, with 92% of overseas investors outperforming local investors by 8%. 10 brokers were responsible for 99.8% of the entire transaction value and the total ETF volumes traded in the first quarter of 2021 were 96.6%.