What is an Exchange Traded Fund (‘ETF’)?
An Exchange Traded Fund is an investment vehicle that tracks an index, a basket of assets, or a commodity, but trades like regular shares on a stock exchange.

How is an ETF different from other investment vehicles such as mutual funds?

Which Index would the ETF track?
The ETF will track the performance of the NSE 30 Index

Is the ETF Risk Free?
No. The ETF is exposed to similar risks as the underlying

How can l track my investment in the ETF?
The ETF will be listed on the Exchange Traded Fund Board of the Nigerian Stock Exchange and the units will be credited to the CSCS accounts of individual investors.

What is the total commission charged when stocks are bought and sold?
The ETF units will trade like normal shares. Thus, the regulatory charges remain the same but the brokerage fee will depend on your
specific broker

How long will it take to credit my CSCS account when I buy the ETF?
The normal transaction cycle is T+3

Will the ETF declare dividends like other mutual funds?

How will dividends paid by the underlying securities be treated?
They will be distributed net of fees to investors quarterly

What is the difference between Stanbic IBTC ETF 30 and other ETFs?
Two keys factors are important when comparing ETFs: The Fund Manager and Liquidity of the ETFs. Stanbic IBTC has a wealth of experience and track record in managing funds that sets it apart from other fund managers. Also, discussions are ongoing to create a market for the ETF and ensure that it is the most liquid ETF on the exchange

How often will the ETF be rebalanced?
The ETF will be rebalanced every time the underlying index is rebalanced. The NSE 30 Index is expected to be rebalanced quarterly.

When will trading on the ETF be possible on the Floor of the Exchange?
The ETF will be listed on 08 December 2014 and trading will commence immediately.

Can the Fund manager exercise discretion over any of the underlying stocks dues to discrepancies in valuation or corporate governance?
No. The ETF is a passive vehicle and will only seek to replicate the NSE 30 Index. Securities will only be added or removed when they are added or removed from the underlying Index.

How can an investor invest in the ETF after the offer period?
The investor can approach his/her broker to purchase from the floor of the exchange from existing investors or approach the authorized dealer to create new units. The authorized dealer will publish two-way quotes online/real -time based on the depth of the market.


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