The first equity Exchange Traded Fund (ETF) will soon be listed on the Nigerian bourse following the approval given by the Securities and Exchange Commission (SEC) for the floatation of the Vetiva Griffin 30 Exchange Traded Fund (VG 30 ETF). To be managed by Vetiva Fund Managers Limited , public offer for subscription of the fund has opened in line with SEC Rule 301. The fund managers, last week, notified the Nigerian Stock Exchange (NSE) of the SEC's approval. The Nigerian bourse had in 2011 listed the first ETF (New Gold Exchange Traded Fund0, which is a commodity based. It was gathered that the VG 30 ETF will be based on the NSE 30 Index (an index of the most capitalised and liquid stocks listed on The Nigerian Stock Exchange ). It is believed that the ETF will represent a convenient investment vehicle for exposure to the Nigerian equities market via a single security. An ETF is an investment vehicle traded on a stock exchange, much like shares. Many ETFs are passively managed index funds which normally track an index, with their main objective being to participate in the economic growth of an industry, sector or commodity. ETFs provide the attraction of the returns of a traditional tracker fund (like unit trusts) with the liquidity of a listed security. ETFs are traded at prevailing market prices, which are approximately the same price as the Net Asset Value (NAV) of their underlying assets over the course of the trading day.
Most Popular Stories
- Ukraine Crisis Limits Losses in Gold, Silver
- Big Earthquake Rumbles Northern California
- Chiquita, Fyffes to Form Top Banana
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- FAA to Appeal Court Decision Allowing Commercial Drone Use
- China's Money Rate Drops on Slowdown Concern
- New Chat App, Yik Yak, Causes Problems for Students
- Mt. Gox Files for Bankruptcy in U.S.
- Obama Meets with Ukraine Prime Minister Wednesday
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference