The Nigerian Stock Exchange has announced plans to explore the growing Exchange Traded Fund market put at about N800tn.According to the Exchange, there is enormous potential and opportunity inherent in the ETF market, adding that it is important it positions itself to exploit it.The Chief Executive Officer, NSE, Mr. Oscar Onyema, who disclosed this on Monday, noted that the Exchange foresaw growth in the global ETF market with emerging markets at the forefront.He said, "The NSE is positioning itself to benefit from the projected growth of the ETF market. The Exchange is also using the ETF product category to open up cost-effective diversification opportunities for investors, while giving the broker-dealer community a tool to better service their clientele."Global ETF assets under management may grow from the present figure of $1.5tn to as much as $5tn (N800tn) by the end of 2015, according to McKinsey & Co. -Financial Times of August 16, 2011); and international fund managers are pointing to emerging markets as the investment destination to beat in 2012.He noted that the emerging market would be the preferred destination, because of the Euro zone crisis on one hand and the rising domestic consumption, which together would work towards increasing infrastructure projects and overall economic growth in emerging markets.Speaking on the benefits that ETF would offer emerging markets, Onyema explained that NewGold ETF, which for instance was listed on Monday, would offer investors new investment opportunity.He said, "NewGold ETF offers investors a new investment opportunity, that is securities backed by gold bullion; the NewGold ETF is the third largest Gold ETF in the world, the first in West Africa and the first in Nigeria. "I am quite certain that our partners here at The Exchange will educate their clients on the various latent and obvious benefits of this product. I am also certain that NewGold is the first of many Exchange Traded Products we will see listed and traded on the floor of The Nigerian Stock Exchange."Onyema noted that the listing of ETFs was part of the transformation agenda of the NSE, adding that more products would come on board shortly."The culmination of the ongoing transformation at the Exchange will result not only in the introduction of two more, but will also put in place the required infrastructure to maximize the opportunities and manage the challenges, posed by an ever-evolving market place," he stated.The Managing Partner, Absa Capital, Mr. Temisan Ofong, said that the listing of the NewGold ETF on the NSE was expected to help develop the investor market in one of Africas fastest growing economies by widening the choice of asset classes available to local investors, as well as to increase significantly the liquidity on the NSE.
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