The Nigerian Exchange‑Traded Fund (ETF) market continued its upward trajectory in 2025, building on a strong showing in 2024.
According to the SEC valuation reports of January 3 and December 24, 2025, the total NAV (Net Asset Value) for all ETFs rose from N12.77 billion in 2024 across 11 funds to N18.08 billion in 2025 with 12 ETFs; a 41.7% increase in total market value.
While the average yield (year‑to‑date) dipped modestly from 53% in 2024 to 48% in 2025, the overall expansion in assets under management points to growing investor interest and confidence.
Among the 12 ETFs in 2025, a few funds stood out for their performance and market position:
- VG 30 ETF (Vetiva Fund Managers) has 43% of the combined NAV; the largest plus strong yield with an average for the two years of 45.12%.
- Lotus Halal ETF managed by Lotus Capital Limited has a strong yield with a 2-year average yield of 64% as well as a strong NAV of N2 trillion, over 11% of the combined net asset value.
- New Gold ETF managed by New Gold Managers is another fund that did well. With an average yield of 88% over 2024 and 2025, it continued to perform strongly in 2025, delivering a 60% yield.
- VCG ETF (Vetiva Fund Managers) achieved the highest yield among smaller funds, with an average yield of 83.20% across 2024 and 2025, and an impressive 118.02% yield in 2025.
- Stanbic IBTC ETF 30 Fund (Stanbic IBTC Asset Management) delivered a strong and steady performance, with an average yield of 41.49% over the two years.
Other funds also performed well, but it’s important to keep in mind that past performance does not guarantee future returns.
That’s why it’s crucial to understand what an ETF is before diving into the world of exchange-traded funds.
What is an ETF?
Think of an ETF like a basket that holds a variety of different assets, such as stocks, bonds, or commodities.
Instead of buying shares in just one company, you’re essentially buying a piece of many different companies or assets, all bundled together in one basket.
This allows you to spread your risk, meaning that if one asset doesn’t perform well, others in the basket might still be doing great.
In short, ETFs help you diversify your investments, offering an easy and cost-effective way to invest in a variety of assets at once, just like picking up a basket of mixed fruits rather than buying individual items.
How it works
ETFs are listed on the Nigerian Stock Exchange (NGX), where their shares can be bought or sold just like individual stocks. You can start investing in ETFs through licensed brokers or directly through the fund manager.
The minimum investment required for ETFs varies, and it’s usually measured in units (shares). But they are investor-friendly because there’s no huge minimum capital requirement, unlike mutual funds or other investment products, which often have higher minimums.
That said, some ETFs may allow you to invest with as little as 1 unit, while others may require a minimum of 1,000 units.
- For example, Stanbic IBTC ETF 30, managed by Stanbic IBTC Asset Management, requires a minimum investment of 1,000 units of the fund.
Which ETFs should you consider for 2026?
The choice of which ETF to invest in depends on your investment goals. Given the performance data from 2024 and 2025, here’s how you can approach selecting ETFs for 2026:
- For high growth potential: New Gold ETF continues to show strong performance, with a notable increase in NAV from N1.3 billion in 2024 to N2.01 billion in 2025. If you’re looking for strong growth and a solid track record, this remains a top choice.
- For size and stability: VG 30 ETF contributed a massive 43.21% to the total NAV in 2025.
It provides exposure to top-performing Nigerian companies, making it a great option for investors seeking exposure to large-cap stocks with strong growth potential.
Factors to consider
When selecting an ETF, make sure to review the fund’s factsheet, which includes crucial information such as:
- How the fund invests: Understand its strategy; is it focused on stocks, bonds, commodities, or a mix?
- Minimum investment: Check the minimum investment amount required to get started.
- Risk profile: Determine whether the fund is aggressive (higher risk, higher return) or conservative (lower risk, stable returns).
- Expense ratio and management fee: These fees impact your overall return, so consider ETFs with lower fees.
- Replication method: Understand how the fund tracks its benchmark; does it hold all the assets of the index or use a sampling method?
These factors will give you a complete outlook on the ETF and help you make a more informed decision for your investment strategy in 2026
Bottomline
ETFs remain a flexible, cost-effective way to diversify your portfolio, and by carefully considering these aspects, you can make informed decisions that align with your long-term financial goals.
These factors will give you a full picture of the ETF’s structure and help you choose the best fund for your 2026 investment strategy.
