Vetiva Fund Managers Rebalances Exchange Traded Fund Suite
Vetiva Fund Managers Limited, yesterday announced the rebalancing of the Vetiva Exchange Traded Fund (ETF) Suite in line with the bi-annual review of the Nigerian Exchange Limited (NGX) Indices which include, but are not limited to, the NGX 30, NGX Banking, NGX Consumer Goods and NGX Industrial Indices.
Exchange Traded Funds (ETFs) are securities that replicate/ track the performance of an underlying index, commodity or basket of assets.
In a statement issued by Vetiva Fund Managers Limited, it was stated that the weights of the security components of the NGX 30 Index, NGX Consumer Good Index and the NGX Industrial Index were adjusted with no changes to the individual securities.
However, for the NGX Banking Index, the rebalancing reflected that: FBN Holdings Plc, FCMB Group Plc, Guaranty Trust Holding Company Plc (GTCO) and Stanbic IBTC Holdings Plc are the incoming stocks, while Jaiz Bank Plc, Unity Bank Plc and Wema Bank Plc are the outgoing stocks.
In line with this, Vetiva’s
Equity ETFs are typically rebalanced accordingly to reflect the NGX Indices, 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 of the Vetiva Griffin 30 ETF, Vetiva Banking ETF,
Vetiva Consumer Good ETF, Vetiva Industrials ETF and the Vetiva S&P Nigerian Sovereign Bond ETF which tracks the performance of the NGX 30 Index, NGX Banking Index, NGX Consumer Goods Index, NGX Industrials Index and the S&P/FMDQ Nigeria Sovereign Bond Index respectively. The ETFs trade like any other listed stock on the Stock Exchange (NGX) and units of the ETFs can be purchased on the floor of the Exchange through any broker.
Speaking on ETFs and the ETF rebalancing, the Portfolio Manager, Exchange Traded Funds at Vetiva, Ms. Jesusetuntun Ajagun, said, “Investing in ETFs offers investors the opportunity to easily express their investment objectives using a single security comprising several underlying assets”.