NewGold is the first ETF on the Nairobi Stock Exchange

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The Nairobi Stock Exchange has confirmed the listing of NewGold ETF as the first Exchange Traded Fund (ETF) to be listed on the Kenyan bourse.

According to the Capital Markets Authority, the listing was permitted by Kenya’s major securities regulator to track the of gold.

The Nairobi Securities Exchange has been investing in new infrastructure to include trading of new products like ETFs, to diversify from equities and bonds, its chief executive Geoffrey Odundo, told Reuters last November.

The CMA said said in an official statement that the ETF will be issued by NewGold Issuer (RF) Ltd, which is incorporated in South Africa.

The NewGold ETF will was first listed on the Johannesburg bourse in 2004 but it has since had secondary listings in other African exchanges, the CMA said.

What are ETFs?

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.

PageOne Markets TitBits: All You Need To Know About ETFs