The Nigerian Exchange-Traded Fund (ETF) market maintained strong momentum in 2025, extending the growth recorded in 2024 and reinforcing ETFs as a viable investment option for both new and experienced investors.
According to valuation reports from the Securities and Exchange Commission dated January 3 and December 24, 2025, the total Net Asset Value (NAV) of all listed ETFs rose from N12.77 billion in 2024 across 11 funds to N18.08 billion in 2025 with 12 ETFs. This represents a 41.7% increase in total market value year-on-year.
Although the average year-to-date yield moderated slightly, easing from 53% in 2024 to 48% in 2025, the sharp expansion in assets under management points to rising investor confidence and deeper participation in the ETF segment of the Nigerian Exchange.
ETFs that stood out in 2025
Among the 12 ETFs listed on the NGX in 2025, several funds distinguished themselves by size, yield, or consistency:
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VG 30 ETF, managed by Vetiva Fund Managers, accounted for about 43% of total ETF NAV, making it the largest fund in the market. It also delivered a solid two-year average yield of 45.12%.
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Lotus Halal ETF, managed by Lotus Capital Limited, posted one of the strongest performances, with a two-year average yield of 64% and a robust NAV of about N2 trillion, representing over 11% of combined ETF NAV.
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New Gold ETF, managed by New Gold Managers, continued its impressive run. After averaging 88% yield across 2024 and 2025, it still delivered about 60% yield in 2025, benefiting from strong gold price dynamics.
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VCG ETF, also managed by Vetiva, recorded the highest yield among smaller funds, with a two-year average of 83.20% and a standout 118.02% return in 2025.
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Stanbic IBTC ETF 30 Fund, managed by Stanbic IBTC Asset Management, delivered stable performance, posting a two-year average yield of 41.49%, appealing to investors seeking consistency.
While performance was generally strong, investors are reminded that past returns do not guarantee future results, making it important to understand how ETFs work before investing.
What is an ETF?
An ETF can be thought of as a basket of assets—such as stocks, bonds, or commodities—packaged into a single investment product. Instead of buying shares of one company, investors gain exposure to multiple assets at once, helping to spread risk.
This diversification means weaker performance in one asset can be offset by stronger performance in others, making ETFs a cost-effective way to build a balanced portfolio.
How ETFs work on the NGX
ETFs are listed and traded on the Nigerian Exchange just like ordinary shares. Investors can buy or sell ETF units through licensed stockbrokers or, in some cases, directly via the fund manager.
Minimum investment requirements vary by fund. Some ETFs allow entry with as little as one unit, while others require larger minimums. For example, the Stanbic IBTC ETF 30 requires a minimum investment of 1,000 units.
Which ETFs should you consider for 2026?
Your choice of ETF should depend on your financial goals and risk appetite:
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For high growth potential: The New Gold ETF remains attractive, with its NAV rising from N1.3 billion in 2024 to N2.01 billion in 2025, supported by strong commodity performance.
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For size and stability: The VG 30 ETF, which contributed over 43% of total ETF NAV in 2025, offers exposure to Nigeria’s largest and most liquid companies, making it suitable for investors seeking broad market exposure.
Key factors to consider before investing
Before selecting an ETF for 2026, investors should carefully review the fund’s factsheet, paying attention to:
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Investment strategy: Whether the fund tracks equities, bonds, commodities, or a mix
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Minimum investment requirement: The number of units needed to get started
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Risk profile: Aggressive versus conservative positioning
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Expense ratio and management fees: Lower costs can significantly improve long-term returns
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Replication method: Whether the ETF fully tracks its benchmark or uses sampling
Bottom line
ETFs remain one of the most flexible and accessible ways to diversify an investment portfolio on the NGX. By understanding how each fund works and aligning choices with personal financial goals, investors can position themselves more effectively for long-term growth in 2026 and beyond.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
