NAIROBI, Kenya, May 4 – Kenya’s asset managers are showing a keen interest in the just introduced Exchange Traded Funds (ETF) at the Nairobi Securities Exchange.
NSE Acting Business Development and Commercial Director Lina Nginja says asset managers are particularly keen in issuing ETF in the bonds and index segments with proposals already in the offing.
This follows the listing of the first ETF Barclays New Gold in East Africa.
Nginja says ETFs are expected to be popular because they allow investors to spread their risk, diversify their portfolio and have ease of purchase and exit.
“We are expecting pension funds to take up the opportunities brought by ETFs, we have also seen individual investors coming to get answers on how to trade and make money on ETFs,” Nginja said on Thursday during a CMA media engagement.
ETFs are traded like normal equities and their price varies depending on the price of the underlying asset.