NGX ETFs split sharply as top fund gains 97.6%, others lose 69%

Exchange Traded Funds (ETFs) listed on the Nigerian Exchange recorded sharply divergent performances in the first nine months of 2026, with Greenwich Alpha ETF almost doubling in value while two Meristem funds lost more than 60 per cent, exposing both the opportunities and liquidity risks in Nigeria’s growing ETF market.

Trading data from the NGX showed that nine of the 12 ETFs reviewed recorded gains between January and September, while three ended the period in negative territory. Collectively, the funds recorded 153.05 million units in transactions valued at N25.30 billion.

Greenwich Alpha ETF was the strongest performer, rising from N380 at the end of 2025 to N751 by September 30, representing a 97.63 per cent increase.

Vetiva Griffin 30 ETF followed with an 88.58 per cent gain to N101.85, while Vetiva Industrial ETF rose 85.88 per cent to N111.53. Vetiva Banking ETF gained 84 per cent to N27.60.

Lotus Halal Equity ETF increased 62.10 per cent, NewGold Exchange Traded Fund gained 55.93 per cent, Stanbic IBTC ETF 30 rose 53.22 per cent, SIAML Pension ETF 40 advanced 33.42 per cent and Vetiva Consumer Goods ETF appreciated 25.64 per cent.

But the gains masked substantial losses in some products. Meristem Growth ETF fell 69.41 per cent, while Meristem Value ETF declined 63.79 per cent. Vetiva S&P Nigeria Sovereign Bond ETF also lost 4.23 per cent.

The sharp divergence highlights the widening investment choices available to Nigerian investors, but also the different risks attached to equity, bond, commodity and strategy-based ETFs.

The performance pattern also changed considerably during the third quarter. Stanbic IBTC ETF 30, which had gained 219.64 per cent in the first half of the year, gave up a substantial part of that advance to finish September with a 53.22 per cent nine-month return.

Trading activity strengthened during the third quarter, with ETF volume increasing 27.2 per cent and transaction value rising 37.5 per cent to N25.30 billion.

Stanbic IBTC ETF 30 recorded the highest transaction value at N7.18 billion from just 3.46 million units, reflecting its relatively high unit price. Vetiva Griffin 30 followed with N3.11 billion, while SIAML Pension ETF 40 recorded N2.54 billion.

By volume, Vetiva Banking ETF dominated with 61.63 million units, followed by Vetiva Griffin 30 with 31.59 million and Vetiva Consumer Goods ETF with 20.36 million.

NewGold, despite recording just 17,886 units in volume, generated about N2.06 billion in transactions because of its relatively high unit price.

The figures reveal a market where liquidity remains concentrated in a small number of products. High trading value does not necessarily mean broad participation, while large unit volumes can occur in lower-priced ETFs without producing equally substantial investment value.

That liquidity issue matters because thinly traded ETFs can experience wider differences between market prices and their underlying net asset values, potentially exaggerating both gains and losses.

For investors, the 2026 performance therefore carries an important lesson: headline returns tell only part of the story. The ability to enter and exit positions efficiently, the assets underlying each ETF and the depth of the market supporting the product are equally important.

For the Nigerian capital market, the expanding ETF segment is widening access to equities, bonds, commodities and diversified investment strategies. But turning that growth into a deeper and more efficient investment market will depend on greater liquidity, broader participation and closer alignment between market prices and the underlying assets.