Kayode Tokede
Vetiva Fund Managers Limited (Vetiva) yesterday announced the review of its Nigerian Exchange Limited 30 Index (NGX 30) with the incoming of Geregu Power Plc, Transcorp Hotels Plc, and Sterling bank Plc into its Vetiva’s Equity Exchange Traded Fund (ETF), while the likes of Custodian & Allied Plc, Wema Bank Plc, and Unilever Nigeria Plc are the outgoing stocks.
The report disclosed that Union Bank of Nigeria is the only outgoing stock in the NGX Banking Index.
Vetiva in a report explained that the bi-annual review of the NGX Indices which include, but are not limited to, the NGX 30, NGX Banking, NGX Consumer Goods and NGX Industrial Indices.
Vetiva stated that it noted that the weights of the security components of the NGX Consumer Good Index and the NGX Industrial Index were adjusted with no changes to the individual securities, stressing that the weight adjustments of the individual security components, the NGX 30 Index and the NGX Banking Index rebalancing reflect the above changes to the respective index components.
Speaking on the ETFs and the Equities Market, the Portfolio Manager, ETFs at Vetiva, Ms. Jesusetuntun Ajagun, in a statement said, “ETF returns largely mirrored the performance of the respective indices they track and the broad sentiments of the equities market during the period”.
She noted that the ETFs offer a higher degree of transparency as the indices being tracked are typically publicly available and investors can therefore easily tell what the constituents of a particular
Vetiva’s Equity ETF suite is typically rebalanced half yearly in line with the NGX 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.
ETFs are securities that replicate/track the performance of an underlying index, commodity or basket of assets. Vetiva’s ETF Suite comprises of the Vetiva Griffin 30 ETF which tracks the performance of the NGX 30 Index, the Vetiva Banking ETF which tracks the performance of the NGX Banking Index, the Vetiva Consumer Goods ETF which tracks the performance of the NGX Consumer Goods Index, the Vetiva Industrials ETF which tracks the performance of the NGX 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 Nigerian Exchange Group and units of the ETFs can be purchased on the floor of the Nigerian Exchange Group through any broker.
ETF will be. Still on the benefits, she noted that investing in ETFs offers investors a diversification opportunity with relatively reduced risk exposure as investors are not invested in a single instrument.
She also presented information on the Year-to-date performance of the Vetiva ETFs alongside data on the relevant indices being tracked. As at 30th June 2023, the NGX 30 Index, NGX Banking Index, NGX Consumer Goods Index and the NGX Industrial Goods Index returned 19.47 per cent, 53.61 per cent, 51.93 per cent and 3.66 per cent year-to-date respectively with similar price return reflected in the relevant ETFs tracking the indices. Notably, the Vetiva Griffin 30 ETF returned 16.79per cent, Vetiva Banking ETF returned 51.77 per cent, Vetiva Consumer Goods ETF returned 52.07 per cent and the Vetiva Industrial Goods returned 3.96 per cent in the same period.
