Global X ETFs has launched a new product providing investors with exposure to 2,000 small-cap stocks listed in the US.
According to the firm, the Global X Russell 2000 (RSSL) is the only ETF in Australia that tracks the Russell 2000 Capped Index.
The new investment vehicle, with annual management fees of 0.18 per cent, offers exposure to US small-cap stocks in sectors such as financial, healthcare and industrial, allowing investors diversified access to early-stage, innovative companies.
Billy Leung, senior investment strategist at Global X, noted that small-cap equities tend to outperform during economic recoveries and periods of financial easing.
“Combined with Trump’s pro-growth and pro-business stance, US small-caps are positioned to benefit significantly and offer long-term growth opportunities,” he remarked.
“With projected GDP growth of 2.1 per cent in 2025, the US is set to outpace other developed economies and is leading the charge globally. By indexing the Russell 2000, RSSL gives investors exposure they might be short in, offering a diversification premium across small-cap growth and mega-cap innovation.”
Analysis conducted by Global X discovered the Russell 2000 outperformed the S&P 500 during the first Trump administration.
Moreover, this product is structured to complement several existing Global X funds, the product provider stated, including the Global X FANG+ ETF (FANG) and the Global X US 100 ETF (U100), which both embody the US markets’ potential.
The FANG vehicle offers a concentrated portfolio of 10 mega-cap stocks, including Amazon, Alphabet, Meta and Nvidia, while U100 captures tech-driven innovation across US exchanges.
Global X recently identified five key themes it expects to play out in the ETF space across 2025.
These include:
- US exceptionalism
- Transformative potential of artificial intelligence
- Investment opportunities from renewable energy
- Elevated equity valuations
- Alternative income sources as dividend yields decline
Unpacking the first point, the firm described: “The US may be set to lead global markets once again in 2025, driven by diversified sectoral growth, resilient GDP, high corporate returns, deregulation and lower interest rates, solidifying its position as the growth and innovative epicentre of capital markets.”
Last September, Global X appointed Alex Zaika as its new chief executive to replace Evan Metcalf. Zaika was previously the managing director at GAM Investments where he worked since 2018, and spent three years at BlackRock and five years at Barclays Capital.
In the executive role at Global X, he leads the firm’s strategic initiatives aimed at broadening its suite of investment solutions and solidifying its position as a comprehensive and dynamic ETF provider in the Australian market.
