- NGE is an ETF that is denominated in U.S. dollars, and invests in 20 listed Nigerian equities.
- The fund provides U.S. investors with the unique ability to gain direct exposure to Nigeria.
- Since Nigeria is not the most obvious place to invest, it is worth evaluating whether or not the fund is undervalued.
- Unfortunately, we would expect to see a greater forward yield in NGE as compared to the current market price, while the Nigerian naira still appears risky to hold in light of high domestic inflation.
- With certain developed equity markets appearing undervalued, it makes little sense to invest in a far less developed equity market with no margin of safety.
For further details see:
NGE: Nigerian Equities Still Look Risky