The beginner’s guide to ETFs: simple investing strategy for Nigerians
September 17, 2025
$7 trillion.
That’s how much money is currently sitting inside ETFs worldwide. For context, that’s bigger than Nigeria’s economy for the next 20 years combined. And here’s the shocking part, it’s not just billionaires cashing in. Everyday people, nurses, teachers, civil servants, are using ETFs to quietly grow wealth while most Nigerians still think “investing is too risky.”
Truth is, over 90% of professional investors can’t beat ETFs. Yet, ordinary people who simply put their money here are building wealth steadily.
Let me show you how it works.
What is an ETF?
ETF means Exchange Traded Fund. Don’t let the name scare you. Imagine you walk into Shoprite. Instead of buying only Indomie, you buy the entire supermarket in one basket. That’s what an ETF does.
With just one click, you own hundreds of the world’s best companies at once. Apple, Microsoft, Amazon, Tesla, all sitting in your portfolio without stress. No need to guess which company will blow tomorrow.
ETFs give you instant diversification, less risk, and higher returns over time.
Key things you should know
Before you buy, there are some key words to keep in mind:
- AUM (Assets Under Management): Think of it like how much trust people have put into it. Bigger = safer, more stable.
- Expense ratio: This is the fee. A low one means more money stays with you. 0.03% is like ₦3 on every ₦10,000.
- Annualised return: This shows the average profit yearly.
- Holdings: These are the actual companies inside the basket.
Simple, right? Now let’s see some of the best ETFs you can use to build wealth.
Top ETFs for financial freedom
VOO (S&P 500)
This is like owning the U.S. economy in one click. It covers America’s top 500 companies.
- AUM: $1.4 trillion
- Return (10yrs): ~12.9% yearly
- Example: ₦500 monthly for 10 years = ₦60k invested → grows to about ₦121k.
VTI (Total U.S. Market)
This one spreads even wider, from big companies to startups.
- AUM: $1.6 trillion
- Return (10yrs): ~12.3% yearly
- Example: ₦500 monthly for 10 years = ₦117k.
VGT (Technology ETF)
This is where the future is: AI, chips, Tesla, Microsoft, Adobe. Tech is the new oil.
- AUM: $45 billion
- Return (10yrs): ~20.2% yearly
- Example: ₦500 monthly for 10 years = ₦188k.
QQQ (Innovation ETF)
Tracks the Nasdaq-100, basically the world’s biggest innovation companies.
- AUM: $160 billion
- Return (10yrs): ~18% yearly
- Example: ₦500 monthly for 10 years = ₦150k.
VUG (Growth ETF)
Targets fast-growing companies. Riskier, but higher upside.
- AUM: $80 billion
- Return (10yrs): ~15% yearly
- Example: ₦500 monthly for 10 years = ₦138k.
VNQ (Real Estate ETF)
Want global real estate without becoming a landlord? This is your way in.
- AUM: $30+ billion
- Return (10yrs): ~6.3% yearly
- Example: ₦500 monthly for 10 years = ₦96k.
How to start as a Nigerian
You don’t need millions to join this wealth flow. Start small, ₦10k, ₦50k, ₦100k. The key is consistency.
- In Nigeria, use apps like Bamboo, Chaka, Trove.
- In the UK, try Trading212, Vanguard UK.
- In the US, Vanguard, Fidelity, Robinhood.
- In Canada, Wealthsimple, Questrade.
Steps:
- Open an investing app.
- Fund your account (naira or dollars).
- Search for the ETF ticker (e.g., VOO, VGT).
- Buy. Automate monthly.
- Relax. Let compounding and time do the heavy lifting.
Why this works
Nobody, not even the smartest trader, can predict tomorrow perfectly. ETFs remove that stress. You simply own the world’s best companies in one basket and let them work for you.
This is why Warren Buffett himself told his family: “Put 90% of my money into an S&P 500 ETF.”
If it’s good enough for him, it’s good enough for us.
Look, wealth isn’t luck. It’s wisdom plus discipline plus time. Even if you start small today, with ₦20k or $20 monthly, your future self will be grateful.
As the Bible says, “We don’t grow by learning alone, we grow by doing.”
So don’t just gist about it. Start. Buy your first ETF today. Automate it. Forget it. And let time quietly make you rich.
Grab the gist?
