Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets. Exchange-Traded Funds (ETFs) An ETF is a fund that holds a basket of assets—such as stocks or bonds—andRead more
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets.
Exchange-Traded Funds (ETFs)
An ETF is a fund that holds a basket of assets—such as stocks or bonds—and its units are traded on the Nigerian Exchange Group just like ordinary shares.
For example:
An ETF that tracks the NGX 30 Index invests in many of the largest listed Nigerian companies.
When you buy one unit of the ETF, you indirectly own small portions of all the companies in that index.
The ETF’s price rises or falls based on the value of its underlying investments.
Advantages
Diversification
Lower risk than buying a single stock
Easy to buy and sell during market hours
Some ETFs pay dividends
Real Estate Investment Trusts (REITs)
A REIT pools money from many investors to buy income-generating real estate such as:
Shopping malls
Office buildings
Hotels
Warehouses
Residential properties
The rental income and other profits are distributed to investors as dividends.
Instead of buying a building worth hundreds of millions of naira, you can buy units of a REIT with a much smaller amount.
Advantages
Regular dividend income
Exposure to real estate without owning property directly
Professionally managed
Can appreciate in value over time
Where can you invest in ETFs and REITs in Nigeria?
You can invest through licensed Nigerian stockbrokers and investment platforms such as:
Meristem Securities Limited (Meritrade)
Afrinvest Securities Limited (Afrinvestor)
Chapel Hill Denham (InvestNaija)
CardinalStone Securities
Stanbic IBTC Stockbrokers
United Capital Securities
Since you’ve mentioned before that you already use InvestNaija, Afrinvestor, and Meritrade, you can buy ETFs and REITs directly through those platforms if they offer trading access to the relevant securities.
Examples of Nigerian ETFs
Vetiva Griffin 30 ETF
NewGold ETF
Lotus Halal Equity ETF (suitable for investors seeking halal investments)
Examples of Nigerian REITs
UPDC REIT
SFS REIT
Which is better?
Choose an ETF if you want broad exposure to the stock market and long-term capital growth.
Choose a REIT if you want exposure to real estate and the potential for regular dividend income.
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets. Exchange-Traded Funds (ETFs) An ETF is a fund that holds a basket of assets—such as stocks or bonds—andRead more
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets.
See lessExchange-Traded Funds (ETFs)
An ETF is a fund that holds a basket of assets—such as stocks or bonds—and its units are traded on the Nigerian Exchange Group just like ordinary shares.
For example:
An ETF that tracks the NGX 30 Index invests in many of the largest listed Nigerian companies.
When you buy one unit of the ETF, you indirectly own small portions of all the companies in that index.
The ETF’s price rises or falls based on the value of its underlying investments.
Advantages
Diversification
Lower risk than buying a single stock
Easy to buy and sell during market hours
Some ETFs pay dividends
Real Estate Investment Trusts (REITs)
A REIT pools money from many investors to buy income-generating real estate such as:
Shopping malls
Office buildings
Hotels
Warehouses
Residential properties
The rental income and other profits are distributed to investors as dividends.
Instead of buying a building worth hundreds of millions of naira, you can buy units of a REIT with a much smaller amount.
Advantages
Regular dividend income
Exposure to real estate without owning property directly
Professionally managed
Can appreciate in value over time
Where can you invest in ETFs and REITs in Nigeria?
You can invest through licensed Nigerian stockbrokers and investment platforms such as:
Meristem Securities Limited (Meritrade)
Afrinvest Securities Limited (Afrinvestor)
Chapel Hill Denham (InvestNaija)
CardinalStone Securities
Stanbic IBTC Stockbrokers
United Capital Securities
Since you’ve mentioned before that you already use InvestNaija, Afrinvestor, and Meritrade, you can buy ETFs and REITs directly through those platforms if they offer trading access to the relevant securities.
Examples of Nigerian ETFs
Vetiva Griffin 30 ETF
NewGold ETF
Lotus Halal Equity ETF (suitable for investors seeking halal investments)
Examples of Nigerian REITs
UPDC REIT
SFS REIT
Which is better?
Choose an ETF if you want broad exposure to the stock market and long-term capital growth.
Choose a REIT if you want exposure to real estate and the potential for regular dividend income.