Greenwich Alpha ETF

GREENWETF is a passive index fund. The fund manager does not select which companies to buy based on individual analysis — the fund holds the companies in the NGX 30 Index at their prescribed market-cap weights. The aim is to deliver the return of the index, minus costs. If the NGX 30 rises 15%, the fund is designed to rise approximately 15% before costs. If it falls 20%, the fund falls approximately 20%. There is no active strategy designed to outperform or protect against the index.

The NGX 30 Index holds the 30 most liquid and largest-capitalisation companies listed on the Nigerian Exchange. Together these companies represent roughly 80% of the total value of all NGX-listed stocks, meaning when Nigeria's largest corporate names move, this ETF moves with them. The index is market-cap weighted — larger companies receive a proportionally larger portfolio weight. It is reviewed and rebalanced quarterly: if a company's market cap falls out of the top 30, it is replaced by the next qualifying name. This keeps the portfolio representative of the actual current reality of the Nigerian large-cap market.

GREENWETF tracks the same NGX 30 Index as STANBICETF30, which is managed by Stanbic IBTC Asset Management. Because they track the same benchmark, their underlying holdings and long-run performance should be very similar. The critical practical difference is trading volume. STANBICETF30 is Nigeria's most actively traded equity ETF and consistently records much higher daily transaction volumes. GREENWETF trades at considerably lower volumes. For an investor, this means a wider gap between the best available buy price and the best available sell price (the bid-ask spread), and potentially more difficulty executing larger orders at a specific target price. This does not make GREENWETF unsuitable — but the liquidity dimension must be understood before buying.

Because GREENWETF tracks the NGX 30 Index, the portfolio is concentrated in the sectors that dominate Nigerian large-cap equities: banking, telecommunications, and consumer goods and industrials. Due to the cap weighting, a handful of companies — such as MTN Nigeria, Dangote Cement, Zenith Bank, GTCO, and Airtel Africa — account for a disproportionate share of the fund. This sector and name concentration is a characteristic of any cap-weighted Nigerian large-cap index product, not a deficiency unique to GREENWETF.