The Nigerian Stock Exchange (NSE) has said that its Exchange Traded Funds (ETF) market now has total Assets Under Management (AUM) of over N4.24 billion.

An Exchange Traded Fund (ETF) is a financial security that tracks an index, either in the form of a commodity or a basket of assets, but trades like normal shares on a stock exchange.

The Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema who disclosed this yesterday at the opening of the 2016 annual NSE Exchange Traded Funds Workshop held in Lagos, said the NSE, ETFs were introduced in December 2011 with cross listing of Newgold ETF with AUM of N287.5 million to provide investors with new opportunities to diversify their portfolios and access the market.

“As at today, we’ve recorded about 1,900% growth in our ETF market with total AUM of about N4.24 billion as at September 2016 on eight ETFs currently listed and traded on the Exchange – Newgold ETF, Vetiva Griffin 30 ETF, Stanbic IBTC ETF 30, Lotus Halal Equity ETF, Vetiva Sector Series ETFs- Banking, Consumer Goods and Industrial, and Vetiva S&P Nigerian Sovereign Bond ETF (6 equity backed, 1 commodity ETF and 1 bond ETF),” he said.

The NSE chief executive said that ETFs have become a huge success story, as Global ETF Assets Under Management (AUM) have grown from $1.4 trillion in December 2010 to about $3trillion as at April, 2016 representing over 102 per cent cumulative growth over the last five years.