You might really be interested in them, but so many investors in equities are familiar with exchange traded funds, ETFs.
Many investors have lost and made so much money from them.
ETFs are investment funds traded on stock exchanges, much like stocks. Instead of a typical stockholding in a single shares of a company, an ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. They are very attractive as investments because of their low costs, tax efficiency, and stock-like features.
In essence, instead of buying individual stock or bond in a sector, ETFs allows an investor to benefit from the growth of an entire sector in the market by buying an ETF that tracks the performance of that sector.
For instance, the STANBIC IBTC ETF 30 tracks the performance of the top 30 performing stocks on The Exchange. While the VETIVA BANKING ETF tracks all the stock price of all stocks in the banking sector
On the Nigerian Stock Exchange ETFs are now quoted and can be bought and sold on the exchange. Only seven ETFs are quoted on The Exchange.
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