An exchange traded fund, or ETF, is a fund whose units are listed on a stock exchange. You buy and sell it through a stockbroker, the same way you would buy a share in a bank or a telco.
One share, many companies
An index ETF holds the companies in an index, in roughly the same weights. Buying one unit gives you a slice of all of them. If one company has a bad year, it moves your holding less than if you had put everything into that single share.
How it differs from a unit trust
- Where you buy it: an ETF trades on the exchange through a stockbroker. A unit trust is bought directly from its fund manager.
- Price: an ETF's price moves through the trading day. A unit trust is priced once a day.
- What you pay: ETF buyers pay brokerage and exchange charges on each trade, plus the fund's own annual costs.
What you need to buy one in Kenya
- A CDS account, opened through any licensed stockbroker.
- Funds in your brokerage account.
- The ETF's trading code, published when it lists.
The WSA Banking Index ETF
Tradiam is the fund manager of the WSA Banking Index ETF, which tracks the NSE Banking Sector Index by holding all twelve listed Kenyan banks in proportion to their weight. The Capital Markets Authority approved it in August 2026, and it lists on the Nairobi Securities Exchange on 28 October 2026. A market maker quotes prices through the trading day, keeping the price close to the fund's net asset value. It isn't sold through the Tradiam investment portal: you buy it through your stockbroker.
