The Nigerian Stock Exchange, NSE, has said that the country’s Exchange Traded Products, ETPs, recorded cumulative average growth rate of 8 percent over the last four years.
It also said that the net flows from the Exchange Traded Funds, ETFs globally stood at $358 billion.
This was disclosed by the Chief Executive Officer of NSE, Mr. Oscar Onyema, while speaking at the annual ETPs Conference in Lagos on Wednesday, adding that the market has expanded in value and reach following significant acceptance by investors over the years.
Onyema said: “Since the introduction of ETPs in 1993, they have gained widespread acceptance in most developed markets. Over the last 15 years, investors’ demand for ETPs (both retail and institutional) has grown remarkably, which in turn has led to a greater variety of products offered by ETP sponsors.
“Since then, the ETPs space has grown steadily by a cumulative average growth rate of 8.0 percent over the last four years.
“Currently, there are nine ETPs listed on the Exchange, two thematic ETFs providing access to Pension-compliant and Shariah-compliant stocks, 2 broad equity market ETFs tracking the NSE 30 Index, 3 sector based ETFs, 1 commodity ETF, and 1 bond ETF tracking exposure to benchmark FGN Sovereign Bonds.”
The NSE boss further stressed that ETPs are one of the most significant financial innovations in recent decades that have shaped the financial markets, adding that equity-based ETPs make up 76.7 percent of global ETP listings while Fixed Income based ETPs represent 16.7 percent of listings, similar to the asset split in Nigeria.