Two Exchange Traded Funds (ETFs) listed on the Nairobi Securities Exchange (NSE) have posted returns reaching 24 percent over the past year by providing exposure to gold and leading global companies.

The Absa NewGold ETF and the Satrix MSCI World ETF, both primarily listed on the Johannesburg Stock Exchange, enable Kenyan investors to diversify beyond local equities by investing in global assets.

The Satrix MSCI World ETF, introduced to the NSE a year ago at Sh761 per unit, has appreciated to around Sh941. This fund tracks over 1,300 large and mid-cap stocks across 23 developed markets including the US, UK, Japan, and Germany. Its portfolio includes global giants such as Apple, Nvidia, Microsoft, Amazon, Meta, JPMorgan Chase, and Alphabet.

Meanwhile, the Absa NewGold ETF, a gold derivative linked to the commodity's real-time price, has risen from Sh4,080 in July 2025 to about Sh4,945 per unit. The fund's value has been buoyed by gold’s appeal as a safe haven amid ongoing geopolitical tensions and economic shocks worldwide.

Despite turbulence caused by conflicts in the Middle East and other global disruptions, the MSCI World Index recorded a 13.9 percent gain in the second quarter of 2026, marking its best quarterly performance in six years, according to the Capital Markets Authority.

Locally, the NSE has seen a 55 percent growth in market capitalization over the past year, driven by strong performances in blue chip stocks such as Safaricom, Equity Group, KCB Group, and Co-operative Bank of Kenya. This surge reflects increased demand from local investors, especially fund managers, who have favoured equities over bonds, real estate, and ETFs.

ETFs like Absa NewGold and Satrix MSCI World provide a means for Kenyan investors to hedge against currency depreciation and global market volatility by accessing diversified international assets.

What Are ETFs?

  • ETFs are investment funds that hold a basket of underlying assets.
  • They trade on stock exchanges like ordinary shares.
  • ETFs can track commodities, currencies, indices, or collections of stocks.

The Absa NewGold ETF reached an all-time high of Sh6,800 in January, coinciding with gold prices peaking at $5,328 per troy ounce. Since then, gold prices have moderated following a ceasefire agreement between the US and Iran but remain stable despite renewed tensions.

Overall, these ETFs have enhanced the investment landscape at the NSE by linking local investors to resilient global assets amid uncertain economic conditions.