Vetiva Rebalances Exchange Traded Funds in Line with NSE’s Review


Goddy Egene

Vetiva Fund Managers Limited has rebalanced its exchange traded funds(ETFs) suite in line with the bi-annual review of the relevant indices by the Nigerian Stock Exchange (NSE). While the weights of the security components of the NSE Banking Index and NSE Consumer Goods Index were adjusted with no changes to the individual securities, there were changes in the NSE 30 Index and NSE Industrial Index rebalancing.

The NSE Index 30 saw the entry of Cement Company of Northern Nigeria Plc, FCMB Group Plc and MTN Nigeria Communications Plc, and the exit of Forte Oil Plc, Oando Plc and PZ Cussons Nigeria Plc. Similarly, Premier Paints Plc was added to NSE Industrial Index, while Notore Chemical Industries Plc was removed from the index.

According to the Vetiva, its ETF suite is typically rebalanced half yearly in line with the NSE Indices review, as changes to components and weights of the underlying indices will typically require corresponding adjustments to the ETF portfolios, to ensure the objective of tracking the price and yield performance of the relevant indices.

Vetiva’s ETF Suite comprises the Vetiva Griffin 30 ETF which tracks the performance of the NSE 30 Index, the Vetiva Banking ETF which tracks the performance of the NSE Banking Index, the Vetiva Consumer Goods ETF which tracks the performance of the NSE Consumer Goods Index, the Vetiva Industrials ETF which tracks the performance of the NSE Industrials Index and the Vetiva S&P Nigerian Sovereign Bond ETF which tracks the performance of the S&P/FMDQ Nigeria Sovereign Bond Index. The ETFs trade like any other listed stock on the NSE and units of the ETFs can be purchased on the floor of the exchange.

Speaking on the ETFs and the Equities Market, the Director, Asset Management at Vetiva, Mrs. Oyelade Eigbe, said: “ETF returns in 2019, largely mirrored the performance of the respective indices they track and the broad sentiments of the equities market during the period.”