ETF Turnover Falls to N3.67 Billion as Investor Activity Slows Despite Broad Market Gains

Exchange Traded Funds (ETFs) listed on the Nigerian Exchange (NGX) experienced a slight slowdown in trading activity in May 2026, even as the majority of funds delivered positive returns. Market data showed that total ETF transaction value declined marginally to N3.67 billion from N3.71 billion recorded in April, while trading volume slipped to 25.92 million units from 26.90 million units. The figures suggest a moderation in investor participation despite improving market sentiment.

In a sharp reversal from April’s largely bearish performance, nine of the twelve ETFs tracked on the NGX closed May in positive territory. Leading the pack was the SIAML Pension ETF 40, which surged by 15.63% to close at N6,809, boosting its market capitalization to N43.92 billion. The Vetiva S&P Nigeria Sovereign Bond ETF followed closely with a 13.15% gain, while the Meristem Value ETF advanced by 13.05%, highlighting renewed investor confidence across multiple asset classes.

Other notable gainers included the Vetiva Consumer Goods ETF, which rose by 11.55%, and the Lotus Halal Equity ETF, which appreciated by 8.24%. The Vetiva Industrial ETF, Vetiva Griffin 30 ETF, Vetiva Banking ETF, and Stanbic IBTC ETF 30 also recorded healthy gains during the month. Analysts note that ETF prices on the NGX can sometimes diverge from their underlying net asset values due to relatively low liquidity, meaning price movements may be influenced more by trading activity than changes in underlying fundamentals.

Despite the broad market gains, three ETFs ended the month in negative territory. The Greenwich Alpha ETF lost 3.85%, while the NewGold ETF declined by 6.46% as gold-related investments faced selling pressure. The steepest loss came from the Meristem Growth ETF, which plunged 25.15%, reducing its market capitalization from N1.83 billion to N1.37 billion and making it the worst-performing ETF for the month.

Trading activity remained concentrated among a few dominant funds. The Vetiva Griffin 30 ETF recorded the highest traded value at N679.75 million, followed by the Stanbic IBTC ETF 30 with N590.63 million and the SIAML Pension ETF 40 with N449.88 million. By volume, the Vetiva Banking ETF led the market with 9.52 million units traded. Although overall turnover weakened slightly, the strong recovery in ETF prices compared to April’s widespread losses signals improving investor sentiment and growing confidence in Nigeria’s capital market as the second quarter of 2026 progresses.

source: nairametrics