January ETFs performance – prices jump as demand pushes them above their true value

The Nigerian Exchange’s Exchange-Traded Funds (ETFs) extraordinary performance in January 2026, driven by order-flow driven rally and growing investor appetite for diversified investment vehicles and not fundamentals analysis.

Several ETFs outperformed the NGX-All-Share Index (ASI), which returned 6.27% in January 2026.

Some smaller ETFs posted impressive double-digit returns.

The month-to-date (MTD) performance in January was between 35% to 322%, which appears to be more outrageous when compared to the year-to-date (YTD) return of 2025, which was between 5% to 170%.

Total ETF trading volume in January reached 6.33 million units, while the total value rose to N1.51 billion, indicating a significant increase in market activity. Twelve ETFs are listed on NGX; the remaining two, Vetiva Grifin 30 ETF and NewGold Exchange Traded Fund (ETF), posted 36.64% and 35.25%, respectively.

If the NGX 30 Index did not rise 237% in January, then Stanbic IBTC ETF 30’s return reflects price dislocation rather than index replication. ETFs typically track a specific stock index, sector, or asset class such as banking stocks, consumer goods companies, industrial firms, or government bonds. Their strong showing in January suggests that investors preferred targeted exposure to specific sectors rather than buying the entire market.

Data as of January 30, 2026, computed by Nairametrics Research from the Nigerian Exchange Group (NGX), it also shows increased trading activity in ETFs. This reflects growing awareness and participation from both retail and institutional investors who want simple, low-cost exposure to structured portfolios.

Below are the top 10 best-performing ETFs for January 2026, ranked by year-to-date (YTD) return.

VetivaConsumer Goods ETF 

• YTD return: 45.18% 
• Total volume: 609,233 
• Total value: N26,868,436 
• Market capitalization: N209.77 million 

Despite being the lowest-performing ETF on the list, Vetiva Consumer Goods ETF still recorded a solid 45.18% return, price moved from N39 to N56.62. This ETF posted 126.74% YTD for 2025.

This ETF focuses on the consumer goods sector, which showed strong growth as demand for consumer products rose in Nigeria. Managed by Vetiva Capital Management, it offers a stable investment for those looking for exposure to Nigeria’s growing consumer market.

Lotus Halal Equity ETF

• YTD return: 64.32% 
• Total volume: 263,830 
• Total value: N27,473,881 
• Market capitalization: N4.45 billion 

Lotus Halal Equity ETF recorded a 64.32% return when the price reached N133.10 at the end of the month from N81, reflecting strong performance in Shariah-compliant stocks. This ETF made 170% returns in 2025.

The ETF is popular with investors who prioritize ethical investing, benefiting from a strong stock selection in this space. Managed by Lotus Capital, the fund offers exposure to socially responsible equities.

Vetiva Banking ETF 

• YTD return: 80.27% 
• Total volume: 2,198,803 
• Total value: N66,038,366 
• Market capitalization: N1.72 billion 

The Vetiva Banking ETF achieved an 80.27% return in January when the price moved to N27.04 from N15, driven by the continued growth of Nigeria’s banking sector. The ETF posted 37.61% YTD for 2025.

This ETF provides exposure to the banking sector, benefiting from positive regulatory changes and economic reforms. Managed by Vetiva Capital Management, it remains a strong choice for those seeking financial sector exposure.

Meristem Value Exchange Traded Fund

• YTD return: 84.28% 
• Total volume: 70,857 
• Total value: N33,244,553 
• Market capitalization: N9.33 billion 

Meristem Value ETF delivered an 84.28% return as its price moved to N699.90 from N379.90, bolstered by its focus on undervalued equities. Its 2025 return was 89.90%.

The strategy of investing in Nigerian companies with strong fundamentals and growth potential contributed to its outperformance in January. Managed by Meristem Wealth Management, this ETF continues to be a standout in the local ETF market.

Greenwich Alpha ETF

• YTD return: 132.44% 
• Total volume: 130,008 
• Total value: N96,356,467 
• Market capitalization: N5.07 billion 

Greenwich Alpha ETF posted an impressive 132.44% return, an upward movement to N883.28 from N380, benefiting its strategic focus on outperforming stocks. 2025 YTD returned –28.84%.

This ETF’s success is attributed to its strong equity selection, using a combination of technical and fundamental analysis. Greenwich Asset Management continues to manage this fund, which is gaining increasing popularity in the Nigerian market.

Vetiva Industrial ETF 

• YTD return: 139.12% 
• Total volume: 460,786 
• Total value in: N42,929,733 
• Market capitalization: N239 million 

The Vetiva Industrial ETF achieved a 139.12% return, driven by the growing demand for infrastructure and industrial stocks. The price surged to N143.47 at the end of the month from N60 at the beginning of the same month. Overall gain in 2025 was 43.37%.

With Nigeria’s increasing focus on infrastructure development, this ETF is positioned to continue benefiting from the country’s growth in these sectors. Managed by Vetiva Capital Management, it remains one of the top performers in the industrial space.

VetivaS&P Nigeria Sovereign ETF 

• YTD return: 177.27% 
• Total volume: 770,552 
• Total value: N432,084,281 
• Market capitalization: N2.11 billion 

Vetiva S&P Nigeria Sovereign ETF posted an exceptional 177.27% return in January. Price moved massively to N600.30 from N216.50 at the beginning of January, but made only 5.61% gain in 2025.

Its focus on S&P sovereign bonds and exposure to Nigeria’s government securities allowed it to outperform other funds. Managed by Vetiva Capital Management, it remains a solid choice for conservative investors seeking exposure to low-risk assets.

Meristem Growth Exchange Traded Fund

• YTD return: 195.27% 
• Total volume: 91,377 
• Total value: N63,047,234 
• Market capitalization: N16.82 billion 

The Meristem Growth ETF achieved a 195.27% return, driven by its exposure to growth stocks across Nigeria’s high-growth sectors. This return stems from the price increase to N1,254.90 at the end of January from N425 and only made 7.73% returns in 2025.

This ETF is well-suited for investors looking for capital appreciation through diversified equity investments. Managed by Meristem Wealth Management, the fund’s success reflects strong market positioning.

Stanbic IBTC ETF 30

• YTD return: 237.12% 
• Total volume: 192,946 
• Total value: N394,896,369 
• Market capitalization: N18.67 billion 

Stanbic IBTC ETF 30 posted a 237.12% return in January as price surged to N N3,267.42 from N969.22, riding the strong performance of Nigeria’s large-cap equities. 2025 return was impressive at 136.40%.

The ETF’s focus on the top 30 companies in Nigeria, NGX 30, helped it outperform the broader market. Managed by Stanbic IBTC Asset Management, this ETF continues to attract both retail and institutional investors.

The Siaml Pension ETF 40 

• YTD return: 322.20% 
• Total volume: 25,464 
• Total value: N101,743,685 
• Market capitalization: N48.37 billion 

The Siaml Pension ETF 40 emerged as the best-performing ETF in January 2026, with an extraordinary 322.20% return as price soar to N7,500 from N1,776.40. Its 2025 gain was 122.05%.

This ETF focuses on pension-based investments, benefiting from strong demand for stable, long-term returns. Managed by Siaml Asset Management, it has become a top choice for pension and long-term growth-focused investors.

What investors should understand before buying  

Current pricing in some NGX-listed ETF 30 products shows a significant gap between market price and Net Asset Value (NAV).

For context, an ETF tracking the NGX 30 Index is designed to mirror the performance of the 30 largest and most liquid stocks on the Exchange. If the underlying index has delivered single-digit or moderate gains, a triple-digit increase in the ETF price suggests that demand — not fundamentals — is driving the move.

When an ETF trades materially above its NAV, investors are effectively paying more than the value of the assets the fund holds. This creates premium risks.

Historically, such dislocations tend to correct through one of three paths:

• The individual stocks inside the ETF rise sharply, so their value increases and eventually matches the higher ETF price.
• The ETF price stops rising and stays relatively flat for a while, while the value of the underlying stocks slowly increases until they catch up.
• The ETF price falls back down to reflect the true value of the stocks it holds.

The third scenario is often the fastest adjustment mechanism in less efficient markets.

For new investors, this means entry risk is elevated. Returns from this point may be constrained until price and NAV realign. Any cooling in demand or increase in supply could trigger a sharp adjustment.

Prudent positioning at this stage would involve:

• Checking ETF price relative to published NAV,
• Avoiding momentum-driven entry,
• Waiting for valuation alignment before deploying fresh capital.

In periods of pricing dislocation, capital preservation becomes more important than chasing short-term upside.