Gold Exchange Traded Funds (ETFs) are becoming increasingly popular among investors in Nigeria due to their potential for diversification, liquidity, and ease of trading. This piece will examine the benefits, and disadvantages of gold exchange-traded funds (ETFs), how they operate, and why they are gaining popularity in Nigeria.
What are Gold ETFs?
Gold ETFs are securities that follow the price of gold and are traded like shares on stock exchanges. They provide the chance for investors to invest in gold without actually owning any physical gold.
The price of the ETFs is closely correlated with the price of gold because they contain gold bullion or derivatives that mimic gold bullion.
Why are Gold ETFs gaining traction in Nigeria?
Firstly, they offer investors an easy method to invest in gold, which is regarded as a safe haven asset during uncertain economic times.
Secondly, they give investors a chance to diversify their portfolios beyond conventional asset groups like stocks and bonds.
Finally, compared to purchasing physical gold, which requires storage and insurance, Gold ETFs are simple to trade, making them a more convenient way to invest in gold.
Benefits of Gold ETFs
1. Diversification
Gold ETFs offer investors an easy and convenient way to add exposure to gold to their portfolios, which can help diversify their holdings beyond traditional asset classes such as stocks and bonds. Just as gold has a diversification advantage, it can help lower overall portfolio risk.
>> Read more about Portfolio diversification.
2. Liquidity
Gold ETFs are highly liquid, which makes it easy for trading and also makes them a more practical method to invest in gold than purchasing physical gold. Due to the high liquidity, investors can quickly and fairly enter or exit positions in Gold ETFs.
3. Cost-effective
Gold ETFs have lower costs than actively managed funds, making them a more cost-effective way to invest in gold. This is due to the fact that gold ETFs exempt investors from having to buy and keep physical gold, which can be pricey and come with additional expenses like storage and insurance costs.
Disadvantages of Gold ETFs
1. Volatility
Gold ETFs are subject to market risk and price volatility, just like some other investments. Numerous variables, such as the state of the global economy, inflation, and international events, can affect the price of gold.
As a result, the value of Gold ETFs can change drastically, which may be unfavourable to investors who are risk-averse or have limited time to spend.
2. Management fees
Gold ETFs may have lower administration costs than actively managed funds, but these costs can eventually lower your returns. The management fees can vary among different ETFs, and it’s essential to compare the costs and choose a low-cost ETF to minimize expenses.
3. Counterparty risk
Some Gold ETFs are not backed by physical gold but by derivatives, such as futures or options transactions. This exposes investors to counterparty risk, which means that if the counterparty defaults, the ETF might not be able to keep its promise to follow the price of gold.
Before making an investment, you should learn about the Gold ETF’s base assets and the counterparty risk involved.
Which Gold ETF is the best in Nigeria?
Investors in Nigeria have access to a number of gold ETFs, including the NewGold ETF, Vetiva Griffin 30 ETF, and Stanbic IBTC ETF 30.
Before selecting a Gold ETF to invest in, it is crucial to perform a careful study and take into account variables such as expense ratios, liquidity, and track record.
How Do I Invest in Gold in Nigeria?
In Nigeria, there are several methods to invest in gold such as purchasing physical gold and purchasing Gold ETFs. To invest in Gold ETFs, you can open a brokerage account with a stockbroker that offers trading options in Gold ETFs listed on the Nigerian Stock Exchange.
List of ETFs in Nigeria
- NewGold ETF
- Vetiva Griffin 30 ETF
- Lotus Halal ETF
- Meristem Value ETF
- Quantum Zenith ETF
- Stanbic IBTC ETF 30
- United Capital Nigerian Real Estate ETF
- Chapel Hill Denham Nigeria Infrastructure Debt Fund ETF
- SCM Capital Growth ETF
It’s essential to conduct thorough research and consult with a financial advisor before investing in any ETFs.
Bottom Line
Gold ETFs offer investors in Nigeria an opportunity to diversify their portfolios and invest in a safe haven commodity. While there are benefits to investing in Gold ETFs, it’s essential to consider the drawbacks and understand the risks involved.
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Cowrywise has been the best savings plans have experienced so far…
Keep it up.
Can I kiss ? or hug cowrywise plsss?
I just love cowrywise. It’s my FUTURE
It educates you, recommends good deeds for you. It serves you…
It keeps telling me I can only withdraw to a bank account that has my BVN on it. I don’t get it
I’ve just one account and it for sure has my BVN attached so I’m confused rii now ?♂️?
I have two accounts with COWRYWISE, daily and a weekly plan, if I want to transfer from the weekly to the daily plan can it be done?
Yes, it can be done if the plan has matured.
Pls I try withdrawing it not working I even move the money to my stash still not working pls I need your help
I sold my unit and my money is not yet in my Stash
Hi. If I want to transfer money from.my stash to another Bank account, let’s say First Bank or so, is there a maximum amount I can transfer? Are there limits?
Hello Ozzy,
There are no limits.
Hy… I’m unable to save automatically from my bank even after providing my bank details and transfer isn’t working
Hi Blessing.
We’re sorry to hear this.
Please send a mail to support@cowrywise.com to rectify this or send us a DM on any of our social media handles.
Hello. If I want to send money to my Cowrywise account, are there limits? Maybe daily, weekly or monthly limit
Are there any of these?
Hello Vincent, there are no limits.
I sent over 100,000 in my account and I didn’t receive any alert since 20 min ago
Hi Omotayo.
Kindly send an email to support@cowrywise.com to rectify this or send us a DM on any of our Social Media platforms.
Hello. Please is it possible to transfer the money from my monthly plan to my stash? And if it is possible will I be able to withdraw before the mature date
Hello Gracelyn, you can only transfer money from a matured plan to your Stash. From Stash you can transfer money anytime.
How do I send money from my account to my cowrywise account if there was no money in my account as at the date of remittance?
Hello Patricia, you can transfer money from any bank account to your dedicated Stash account number.
I’m finding it really difficult to transfer money from my stash to another account. It keeps telling me to send it to my own account. What’s going on? This isn’t the first time I’m using stash to transfer money between banks. Please help
Hello Ige, there was a security update to Stash. You can transfer money to your own bank account that reflects the name on your BVN from Stash. To transfer money to another person, you can use their username to do that for free.
Hi, I am having the same issue I have tried for days and it gives me the same error message.
The account I am transferring to to reflects the name on my BVN but its still not going through
What method or option is available to automatically fund my stash or cowrywise wallet because I deactivated SMS alert from my bank. As this has hindered from receiving OTP this or other reasons.
Hello Collings, to fund your Stash, you only need to transfer from your bank to your unique Stash account number. You can also use USSD for the transfer. You have to initiate the transfer yourself.
Hello…how can I change the bank account on my stash to a more active account that i use now
Hi, I sent money from my stash to another person’s account and it’s not reflecting. What can I do?
Kindly send us an email via support@cowrywise.com
Please how can I close my cowrywise stash
Hello, I would like to change my email address. Please how do I go about that?
Please I’m having a problem to sign in my Cowrywise account it keep showing account flagged
How can I transfer money from stash to my bank account
Please I’m trying to send money from my stash to my kuda account but it keeps asking for code and when I put in the authenticator code it keeps saying invalid and this is really urgent, I need that money by tonight please what do I do
How can I withdraw my fund from stash
Hi there. To withdraw from Stash, simply tap “Transfer” and select “Bank” as the destination.
its not working for me in my own case its showing
An error occurred
u can only transfer to your own bank account, to transfer to others use their Cowrywise username to transfer for free…. what should i do, or what is meant to be done.
I transferred from my stash to my bank account after several hours I haven’t seen the money in my bank account. But it’s processed already in my stash. Why?
Maximum amount a stash account can hold please??
I want to transfer from my stash to my bank account but it doesn’t go through. Pls reply
I transfered money from my stash to my saving plan but for the past 20 minutes it kept showing pending why?
Good morning, I have transferred money from my stash to my bank account for over 14 hours and it is still showing pending. Why? Because I transferred another this morning and it has gone through. I needed the first money I transferred for something important which I was unable to do btw. However, how will I get my money back because it is pending and you have deducted it from my stash
Good morning, I have transferred money from my stash to my bank account for over 8 hours and it is still showing pending. Why? Because I transferred another this morning and it has gone through. I needed the first money I transferred for something important which I was unable to do btw. However, how will I get my money back because it is pending and you have deducted it from my stash
Hi Solomon.
Sorry for any inconvenience caused.
Kindly send a mail to support@cowrywise.com to rectify this or send us a DM on any of our Social Media platforms.
I want to transfer money from my stash to my bank (20,000) are there charges involved? Because whenever I try it says insufficient bal and I have 20,000 in it
Hi Gabriel.
Yes, there is.
It stays low at NGN25, regardless of the amount you’re trying to transfer.
Is there any minimum duration for the money in stash? Can I transfer money to stash today and withdraw it tomorrow? Is there any maturity period for money in stash?
Hi Legend.
Your Stash is your e-wallet within Cowrywise and you can top up or withdraw at any time.
There are no maturity dates with Stash.
Hw can I withdraw from my stash account to my bank account
Hi Olufunsho.
– Navigate to “Stash” in your dashboard
– Click “Transfer Money”
– Click “Bank Account”
– Put in the details of your bank account (with the same BVN linked)
– Type in the amount and confirm by clicking “Transfer”.
Hope this helps. ?
How can I transfer money from my stash to bank account when it’s not accepting my bank
Hi Kiki, please can you confirm that the bank account you’re trying to withdraw to is yours, with your BVN?
My favorite saving app❤️??
?
If your emergency fund has reached maturity, what are the procedures to access it. If you want just the interest on it.
Also you did not have stable funds to continue temporary.
Hi Mariam.
Emergency funds have no maturity date and can be accessed anytime.
If you don’t want to withdraw all your funds, you can just withdraw a part of it.
Someone sent money to my stash and they have been debited already. The problem is that it’s not reflecting on my stash. Please help.
Hi Glory.
Sorry about this.
Kindly send us an email via support@cowrywise.com or send us a DM on any of our Social Media accounts.
Does that mean that a friend cannot transfer to my cowrywise account ?
Hello Oyindamola, there was a security update to Stash.
Please note that your Stash account number will only be able to receive funds from banks linked to the same BVN as your Cowrywise account.
Please fix the stash account transfers as soon as possible please I have a pending payment to receive to my stash account from a different bvn account
Hi Michael. Kindly send a mail to support@cowrywise.com regarding this or send us a DM on any of our Social Media accounts.
For the first time, i made a bank transfer from a gt bank account to my dedicated stash account number and it hasn’t arrived yet? Can you look into it?
Hi Andrew.
Kindly send an email to support@cowrywise.com to rectify this or send us a DM on any of our Social Media platforms.
I deposited 500k to my stash account and transferred 300k to my cowrywise savings account immediately my account was temporary flagged. I don’t understand if it has limits or what’s the problem?
Hi Lucky.
Kindly send an email to support@cowrywise.com to rectify this or send us a DM on any of our Social Media platforms.
Someone sent me the money.
Ope pls my bvn I don’t have it o. I lost the SIM card my phone was stolen. Can’t I have access to the app without my bvn
Hi Midun.
You can have access to the app without your BVN.
Please log in with your username and password.
I sent money to my stash via bank…I have been debited but the stash isn’t reflecting either
Hi Joest.
Thanks for letting us know.
Kindly send an email to support@cowrywise.com to rectify this or send us a DM on any of our Social Media platforms.
One of my cowrywise plan will be due on 17th..have not been updating cash there recently..i hope it wont prevent me from getting my cash when its due??
Hi Sopuru.
No, you’ll not be prevented from withdrawing on your maturity date.
Please what is the maximum on a single deposit to my stash?
Like can my stash receive anything above 5m instantly?
Please did you get an answer?
Please i made a withdrawal from my stash account but it’s been pending for hours now no result
Hi Florence.
Apologies about this.
Kindly send a mail to support@cowrywise.com or send a DM to any of our Social Media accounts to rectify this.
How can transfer from investment to Stash
Hi Anne.
Your investments if sold are normally sent directly to your Stash.
Hi
Please I’ve been trying to transfer money from my stash to my normal bank account. Its not working. WHAT am I supposed to do? And this account is the one connected to my BVN
Hi Esther.
We’re sorry about this.
Kindly reach out to our support team at support@cowrywise.com to rectify this.
please i lost access to my gmail account, how can i update my email address?
Hi Ubi.
Kindly send an email to support@cowrywise.com to rectify this.
Hello
Cowrywise deducted 1k out of my account without saving
And it’s not even reflecting in my savings
1k gone just like that
Hi Ife.
This is strange…
Can you kindly send us a DM on Twitter or Instagram to rectify this?
You can also send a mail to support@cowrywise.com, we’re always happy to help.
It has been rectified
Thank you
Cowrywise to the world ❤️❤️❤️❤️
Why can’t I login to my cowrywise account?
Hello. Am new in dis platform, how can I credit my stach with my investment funds
Please I mistakenly transferred from another account not linked with my bvn to my stash will the cash be reversed to the recipient
How can I send money to my account using cowrywise plss
GoodDay I made a withdrawal via transfer to my account till now my bank has not been credited, please what can I do and have been debited from cowrywise.
Hello Ope, I’m not able to transfer from my stash to my bank account. They’re asking for a 6-digit authentication.
I added money to my savings on cowrywise but it didn’t reflect on my balance, what could the matter be please?
I sent money to this account number 8372658860 to credit my stash but it hasn’t reflected please help
Hi Janet.
Has your fund reflected now?
Pls, send an email to support@cowrywise.com if it hasn’t.
Thanks!
Hi ope
How does saving money using the challenge work
I sent money from my bank accounts to my stash, I’ve been debited buy my stash hasn’t been credited yet. Kindly respond
Hello , good day @cowrywise.. I started using cowrywise few months ago and has been amazing. I explored the stash and tried to make transfer fromemergency funds to stash. I want to transfer from stash my bank which I added I the bank and card section on my profile. The reply cowrywise gave me right now was *I can only make transfer to mupy own bank account. That if I wanna transfer to a cowrywise user that I should use their cowrywise username.* I don’t get this because the bank account I’m transferring to is my personal account which I provided and it from the account I’m been debited for all my automation on cowrywise. Please kindly rectify this because I really need my money for emergency. Thanking you.
Hello Tolulope ?? We’re very sorry for the inconvenience. Please can you confirm that the BVN you provided us matches the one on the account you’re trying to transfer to? Please reach out to us at support@cowrywise.com and we’d help you rectify this immediately.
Hello please I transferred money from my bank account to my stash and it hasn’t reflected in my stash but I have been debited from my bank. Kindly help
Hi Chelsea, please let me know if you still have this issue. I’d be waiting to help ?
Hello ope
Been trying to transfer from my stash to my bank account, but kept saying I can only transfer to my own account.
This has been frustrating because I need the money to pay up some debts.
Hello ope
Been trying to transfer from my stash to my bank account, but kept saying I can only transfer to my own account.
This has been frustrating because I need the money to pay up some debts.
I need my money as early as possible today 9th of October
I made a withdrawal yesterday. It’s been almost 12 hours and it hasn’t reflected
I transferred to my stash from my matured money,almost two million,I’m trying to withdraw it cause I need it urgently and it’s asking me for token which I don’t have,pls help me rectify this I need to use the money today.Thank you
So I transferred from my bank account to my stash. It’s been over 12 hours and it hasn’t reflected and I’ve been debited from my bank
How can I link two cowrywise account with one bvn
Hello, Please how can I transfer funds from stash to emergency saving?
How do I submit form for multiple account, can I use thesame details to verify my two different account after my account had been flagged?
Best savings app, Yes but there would always be something missing…. been trying to find my account number on the app and its not there. You guys can do better, I suggest the account number be placed on the stash screen…still haven’t found my account number yet!!!
I transferred money to my stash twice yesterday, the first one didn’t reflect in my stash and ive been debited from my bank, the second one reflected
I can’t top up on my cowrywise
How do I know my authenticator code to transfer from cowrywise to other bank
And how can I know a mature saving
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Thanks
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Jeśli chcesz tego typu kartę bankomatową prosimy o kontakt: mailto:anglelahanna122331@gmail.com
Dziękuję.
Pls i just open an account with cowrywise how can i save in pls
Please cowrywise unfreeze my money 100000 thousand naira, this is over 2 months now (drdrmugu@gmail.com)
Please, for the emergency plan, is it everytime I make payment that I’ll be charged 1.5%?. I don’t get pls
How do I make a withdrawal from my cowry to my bank account ? My savings has long matured but I don’t know how to go about it as it’s my first time every since a friend talked me into giving it a try since the past 4 months.
Cowrywise is actually is best for saving..m but i tried keeping up with my savings after its has matured but it not goin tru , asking me to extend my savings and i dont want cause i will b needing it by month end and so i transferred it to my stash account.. my question now is that can i leave it in my stash account and still save more there till ending cause my actuall saving plan wants me to extend to 3month b4 i can withdraw it again and i can’t wait that long but i still need my money in cowrywise to b there and add more till end of the month… is that possible????
Good morning ope
Have been unable to withdraw from my stash fee to my bank account, it is telling me invalid token how do I go about it please, bcos I withdraw from my emergency saving to my stash fee and it is not reflecting.