February was more positive for the Exchange Traded Products segment of the Nigerian Stock Exchange with investors spending more on ETPs.
Data from the Exchange showed that 509,433 units of ETPs worth N8.649m were exchanged by investors in 128 deals during the month, compared to the 64,073 ETP units valued at N3.162m, which were traded by investors in January.
Based on the data the number of deals, units traded and value for February were 25 per cent, 695 per cent and 168.7 per cent higher than the figures for January.
A breakdown of the transactions showed that in February, the Vetiva Griffin 30 ETF was the most traded ETP with 501,348 units worth N6,652 traded in 64 deals.
Also in February, 6,397 units of the Lotus Halal Equity ETF worth N59,032 were exchanged by investors in 37 deals, while 900 units of the Stanbic IBTC ETF 30 valued at 84,750 were traded in two deals.
Although the Newgold Exchange Traded Fund recorded the least number of units traded with 788 for the month in two deals, it accounted for the biggest value, N1.853m.
Despite the increase in ETP trades, the sector remains unpopular when compared to other investment instruments on the NSE, according to analysts.
So far, only the four ETPs above are listed on the Exchange even though analysts and operators insist that retail investors are better off investing in such products.
In an exclusive interview with our correspondent last year, the Managing Director, Vetiva Fund Managers Limited, Mr. Oluwadamilola Ajayi, explained that Exchange Traded Funds would inevitably achieve greater visibility as investors become more aware of the benefits of ETFs in investment portfolios.
Ajayi, whose company acted as sponsoring broker for the NEWGOLD ETF and manages the Vetiva Griffin 30 ETF, added, “Being a new asset class, the market is going through a learning curve, but from what we are experiencing, the appetite for ETFs has been very encouraging.
“Globally, the success of ETFs has been driven by the relatively low cost of investing in ETFs and the convenience of investing in ETF products.”