The NSE Exchange Traded Fund (ETF) market capitalization increased by 272.30% from N6.58 billion recorded in 2019 to N24.51 billion in 2020.
According to a statement issued by the chief executive officer of the NSE, Oscar Onyema, trade volumes increased by 218.23% from 4.15 million units in 2019 to 13.20 million units in 2020, and turnover skyrocketed by 51,830.59%.
Market turnover skyrocketed to N56.66 billion, indicating a massive increase of 51,831% Year-on-Year. This signifies increased interest in Nigeria’s ETF market.
Onyema attributed the achievement to several factors including: “Growing adoption of the asset class by investors and asset managers on the back of strong year on year growth;
“Launch of two new ETFs – Meristem Growth ETF and Meristem Value ETF by Meristem Wealth Management Limited which track the NSE Meristem Growth Index and NSE Meristem Value Index respectively; and unattractive yields in the fixed income market which led investors to seek alternative asset classes as also experienced in the equity market.”