Deepening the Nigerian Capital Market - A Case for Exchange Traded Funds

While market volatility has made many investors nervous, there are a few investment vehicles that have continued to grow. Exchange Traded Funds (ETFs) are pooled investment vehicles with shares that can be purchased or sold on a stock exchange at a Market determined price. They offer investors access to the markets such as the Nigerian Stock Exchange (NSE), the Standard & Poor's 500 (S&P 500), the Financial Times Stock Exchange 100 Index (FTSE), and Johannesburg Stock Exchange (JSE) while offering diversification, access to non-traditional asset classes and hedging tools.