Bad week for Nigerian ETFs as market capitalization drops to N7.48 billion

The market capitalization of Nigeria’s Alternate Traded Funds (ETFs) misplaced N86.99 million in a single week, characterised by the adverse efficiency of many of the registered funds with the Securities and Alternate Fee (SEC).

In response to data obtained from SEC, the twelve ETFs recorded a 9.58% common week-on-week decline of their provide worth between the tenth and seventeenth of June 2022. Notably, of the twelve funds, 9 noticed their fund worth decline, two of them closed flat, whereas just one recorded a optimistic motion, albeit marginal.

The market capitalization of the Alternate Traded Fund declined from N7.56 billion recorded as of tenth June 2022 to N7.48 billion as of seventeenth June 2022, representing a decline of N86.99 million (or -1.15%).

The week was significantly unhealthy for ETFs, in comparison with the earlier week when the fund class gained 47.4% on the common week-on-week. Within the evaluation week, the Nigeria inventory market closed on a bearish be aware because the All-Share index shed 2.68% to shut at 51,775.08 foundation factors.

Nairametrics tracks the efficiency of varied fund classes. Beneath is how the listed ETFs on the Securities and Alternate Fee carried out between tenth and seventeenth June 2022.

New Gold ETF: -84%

• The provide worth of New Gold ETF dipped by 84.66% to commerce at N8,770 in comparison with N57,170 recorded within the earlier week. However, the market capitalization of the fund improved by 13.9% to face at N501.38 million.
• The New Gold ETF, which is managed by New Gold Managers tracks the worth of gold.

Greenwich ALPHA ETF: -7.64%

• Greenwich ALPHA ETF recorded a 7.64% decline in its fund worth to shut the week at N127.6. On the reverse aspect, the market capitalization elevated marginally by 0.95% to face at N595.84 million, indicating improved subscriptions regardless of a decline in fund efficiency.
• Greenwich Alpha is an open-ended ETF that tracks the NSE 30 Index, which is an index comprising 30 of probably the most liquid and capitalised shares buying and selling on the Alternate.
• In response to the corporate, the fund is designed to allow traders to acquire market publicity to the securities of the constituent corporations of the NSE 30 index and to breed the efficiency of the index.

Meristem Progress ETF: -3.15%

• Meristem Progress ETF is an Alternate Traded Fund designed to trace progress shares and is managed by Meristem Wealth Administration Restricted.
• The fund dipped by 3.15% within the week beneath evaluation, whereas the market capitalization improved by 0.38% to face at N191.86 million as of seventeenth June 2022.
• In the meantime, a have a look at the weekly report from the Nigerian Alternate Group, the NGX Meri Progress index dipped 1.18% throughout the week beneath evaluation, bringing the year-to-date efficiency to 30.51%.

Lotus Capital Halal ETF: -2.46%

• Lotus Capital Halal ETF dipped 2.46% week-on-week when it comes to the provide worth, whereas its market capitalization additionally decreased by 2.58% to face at N504.08 million
• The Lotus Halal Fairness Alternate Traded Fund “LHE ETF” is an open-ended fund that tracks the efficiency of the NSE-Lotus Islamic Index (NSELII).
• It’s designed to allow traders to acquire market publicity to the securities of the constituent corporations of the NSE-Lotus Islamic Index and to copy the worth and yield efficiency of the index.

About Alternate Traded Funds

Alternate-Traded Funds are tradable funding merchandise (like shares) whose returns monitor the efficiency of an underlying index. An ETF holds property akin to Equities, Bonds, Currencies, Commodities or Actual Property, and so forth and its return ought to carefully align with the returns of the underlying index, save for buying and selling prices, and so forth

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