Nigerian Exchange Traded Funds (ETFs) on the Nigerian Exchange (NGX) experienced huge losses in February, despite a soaring month for the broader index.
Data compiled by Nairametrics Research from the NGX reported that the total amount traded for ETFs in February grew from N1.51 billion in January to N2.94 billion in February, while trading volume increased from 6.3 million in January to 18.6 million in February.
Despite the overall rise in trading volume, most ETFs experienced declines ranging from 7% to 48%, indicating ongoing market pressure.
However, a few sector-specific ETFs, particularly those in the banking and consumer sectors, delivered positive gains.
What the data is saying
A deeper look at February’s ETF performance reveals obvious variations across sectors, with most funds underperforming but a few standing out.
- Meristem Growth ETF experienced the greatest decline, plunging 48.20% to N650 from N1,254.90. Its market capitalization was N8.7 billion, a decrease from N16.82 billion at the end of January.
- The Stanbic IBTC ETF 30 fell 40.12% in February, closing at N1,956.42, from N3,267.42. The market capitalization was N11.2 billion, compared to N18.67 billion at the end of January.
- The SIAML Pension ETF 40 fell 33.13% and closed at N5,014.96 from N7,500. Its market capitalization was N32.3 billion, a decrease from N48.4 billion at the end of January.
- The Vetiva S&P Nigeria Sovereign Bond ETF declined 33.37% to N400 from N600.30. Therefore, market capitalization declined to N1.41 billion.
- Greenwich Alpha ETF sank 32.07%, to N600 from N883.28, and market capitalization stood at N3.45 billion.
- The NewGold ETF fell 16.54%, closing at N66,600 from N79,799.84. Market capitalization also slumped to N3.56 billion.
- Vetiva Industrial ETF sank 9.79%, to N129.42 from N143.47, and market capitalization stood at N215 million.
- The Meristem Value ETF 40 fell 7.13% and closed at N650 from N699.90. Its market capitalization stood at N7.06 billion at the end of February.
These decreases reflect broader market weakness, particularly in diversified indices.
However, three ETFs reported positive gains in February:
- The Vetiva Consumer Goods ETF closed at N65.61 in February, up 15.88% from N56.62, the opening price. Market capitalization slipped to N243.08 million.
- Vetiva Banking ETF closed February at N31.19, up 15.35% from N27.04, the opening price. Capitalization dipped to N1.99 billion at the end of February.
- Lotus Halal Equity ETF closed at N145.1 in February, up 9.02% from N133.1 at the opening price. Market capitalization reduced to N4.85 billion.
- Vetiva Griffin 30 ETF closed at N73.80 in February, up 1.10% from N73, the opening price. Market capitalization reduced to N10.54 billion.
These funds show that sector-focused ETFs can still create returns even when the overall market fails, particularly in the consumer goods and banking sectors.
Liquidity trends
February’s trading activities revealed noticeable trends in volume and value. The overall value traded was N2.94 billion, with a total volume of 18.60 million units.
Despite a significant price drop, the Stanbic IBTC ETF 30 had the highest total transaction value of N672.08 million.
- The Vetiva Griffin 30 ETF traded for N481.22 million.
- The Vetiva S & P Nigeria Sovereign Bond ETF generated N338.40 million in trading value.
Vetiva Banking ETF had the highest volume, with 6.13 million units traded, followed by Vetiva Griffin 30 ETF, which had 5.63 million units moved, and NewGold ETF, which had only 402 units traded.
What this means
The favorable performance of the Banking ETF and the Consumer Goods ETF suggests a trend toward more conservative stocks. Investors appear to be leaning toward industries with stable profitability and resilience in the face of market turbulence.
- ETFs such as Meristem Growth ETF and Stanbic IBTC ETF 30 saw significant losses, highlighting the risk of broad market exposure during uncertain times, especially in large-cap stock-heavy indices.
- Stanbic IBTC ETF 30 has the biggest trading value, but its price has declined significantly, indicating that high trading volumes may not always indicate favorable investor sentiment. In this situation, it could signal institutional or large-scale investor sell-offs.
The decrease in the Vetiva S&P Nigeria Sovereign Bond ETF demonstrates that even traditionally secure assets like bonds can be influenced by broader economic issues such as changes in interest rates.
Finally, these trends show that investors are becoming more discriminating, focusing on sectors that provide stability, whereas more broadly diversified funds struggle in a difficult economic situation.
What you should know
The ETF performance in January demonstrated strong market activity, with gains ranging from 35% to 322% month-to-date (MTD), which contrasts sharply with year-to-date (YTD) results in 2025, which ranged from 5% to 170%.
- This steep increase indicates that January was a very volatile month, with several ETFs returning extremely high returns.
- In January, market activity increased significantly with a total trading volume of 6.33 million units and a value of N1.51 billion, compared to previous months.
- Among the 12 ETFs listed on NGX, Vetiva Griffin 30 ETF and NewGold ETF outperformed with returns of 36.64% and 35.25%, respectively, indicating a focus on specialized sectors rather than broad market exposure.
It’s worth noting that Stanbic IBTC ETF 30 delivered good gains in January, but if the NGX 30 Index hadn’t increased by 237%, its performance could have been more suggestive of price volatility than an accurate reflection of the underlying index.
ETFs usually follow a certain stock index, industry, or asset class, such as banking stocks, consumer goods, industrial companies, or government bonds. The performance of sector-focused ETFs in January reveals that investors preferred to invest in certain areas rather than the overall market.
