A complete step-by-step guide to buying the Meristem Growth ETF (MERGROWTH) on the Nigerian Exchange — what the fund tracks, why growth investors use it, and exactly how to place your first order.
The Meristem Growth ETF — listed on the Nigerian Exchange (NGX) under the ticker MERGROWTH — offers a way to invest in a basket of high-growth Nigerian companies through a single purchase. Instead of researching and picking individual fast-growing stocks yourself, MERGROWTH gives you exposure to the NGX Meristem Growth Index through one transaction. This guide explains what MERGROWTH is, why growth investors use it, and the exact steps to buy it.
MERGROWTH is an open-ended, passively managed exchange-traded fund (ETF) managed by Meristem Asset Management Limited. It was listed on the Nigerian Exchange in 2020 and is designed to track the performance of the NGX Meristem Growth Index.
The NGX Meristem Growth Index is a rules-based index of NGX-listed companies that screen as growth stocks — meaning they are expanding revenues or earnings faster than the market average. The index selects for strong earnings-per-share (EPS) growth, revenue growth, and return on equity (ROE), then applies liquidity and weighting rules. By buying MERGROWTH, you are buying the collective performance of these growth-screened Nigerian companies.
MERGROWTH offers a low-effort way to apply a growth investing strategy on the NGX. Instead of identifying and selecting fast-growing companies yourself, the index methodology does the screening and rebalancing for you.
MERGROWTH is a passive fund. The fund manager follows the NGX Meristem Growth Index rules rather than actively picking stocks. This keeps costs low and removes active manager risk — but it also means you are exposed to the full volatility of growth-style investing.
To buy MERGROWTH, you need an account with a platform that can execute trades on the NGX. Because MERGROWTH is a listed ETF, it is bought and sold exactly like a regular NGX-listed stock. Any SEC-licensed Nigerian stockbroker or investment platform with NGX trading access can execute the order.
Nigerian financial regulations require all investment accounts to complete Know Your Customer (KYC) verification. You will need to upload a government-issued identity document and confirm your BVN. Verification typically takes between 24 hours and 3 business days.
Once your account is active and verified, transfer funds from your Nigerian bank account via bank transfer or the platform's payment gateway. Check whether the platform uses a savings-plan model or a direct purchase model.
Log in to your trading app or platform and search for the ticker symbol MERGROWTH. Confirm you are viewing the correct instrument — the full name should read "Meristem Growth Exchange Traded Fund".
NGX trading hours are 09:30 AM to 02:30 PM on business days (Monday to Friday). Orders placed outside trading hours are queued for the next session.
After your order executes, your units will be settled into your Central Securities Clearing System (CSCS) account. You will receive a confirmation of your holding from your broker or platform.
See the full MERGROWTH fund profile — investment objective, the NGX Meristem Growth Index, investor profiles, portfolio roles, and fund facts.
View MERGROWTH ETF ProfileYes. Because MERGROWTH is listed on the NGX, you can sell your units at any point during trading hours (09:30 AM – 02:30 PM, Monday to Friday) exactly like you would sell a stock. There is no lock-in period.
Meristem also manages a companion ETF — the Meristem Value ETF (MERVALUE) — which tracks the NGX Meristem Value Index and focuses on companies that appear undervalued relative to their fundamentals, rather than high-growth. The two ETFs represent contrasting investment styles:
Growth-focused investors comfortable with higher volatility in exchange for capital appreciation potential tend to prefer MERGROWTH. Value-focused investors who prioritise stability and dividend income tend to prefer MERVALUE. Some investors hold both for style balance.
Yes — more so than value-oriented ETFs. Growth stocks tend to trade at higher valuations and are more sensitive to earnings disappointments, interest rate changes, and shifts in market sentiment. A diversified ETF reduces single-stock risk, but you are still exposed to the collective volatility of growth-style investing. A minimum 3 to 5 year time horizon is generally recommended.
The minimum is one unit of MERGROWTH at the current market price. There is no platform-imposed minimum above the single unit price. Check your broker or investment platform for any minimum order size requirements they apply.
Growth companies tend to reinvest profits rather than distributing them, so MERGROWTH typically carries a lower dividend yield than value-oriented funds like MERVALUE. Some distributions may still occur depending on the underlying holdings in a given period.
No. This article is for general educational and informational purposes only. It does not constitute a recommendation to buy MERGROWTH or any other investment product. Always assess your own financial situation, goals, and risk tolerance before investing, and consider speaking with a licensed financial adviser.
Explore the full MERGROWTH fund profile — the NGX Meristem Growth Index methodology, investor type guide, and how this ETF fits into a portfolio.
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