Global X adds Aussie equity ETF to GARP range
ETF provider Global X has expanded its GARP ETF range with the launch of a vehicle focusing on Australian equities.
The Global X S&P Australia GARP ETF (GRPA) will target 50 leading local companies and follows the launch of the Global X S&P World Ex Australia GARP ETF (ASX: GARP) in 2024 which focuses on global equities.
Global X said the new GRPA fund captures high-growth, quality Australian companies at fair value. The ETF tracks the ASX 200 GARP Index, which selects 50 top Australian companies with consistent fundamental growth, reasonable valuation, and strong earning power.
“GRPA gives investors the opportunity to complement their existing broad Australian equity allocation with a targeted strategy that combines growth, value, and quality – the essence of GARP investing,” said Global X CEO Alex Zaika.
“This ETF delivers a smarter, enhanced core option designed to help investors target companies with the potential to outperform over the long term.”
With a management fee of 0.25 per cent per annum, GRPA is positioned as a cost-effective way to access a diversified portfolio of Australian leaders.
“This innovative index applies the GARP framework to the ASX 200 universe, focusing on growth opportunities while incorporating valuation and quality considerations in the index construction. The index aligns with the principles of GARP investing, empowering market participants with an innovative tool to navigate factor-based investing in the Australian market,” said Jason Ye, director of factors and dividends at S&P Dow Jones Indices.
Global X now manages over $13 billion in assets and has introduced six new products to market so far this year.
In August, the firm launched an Australian equity ETF challenging Vanguard with fees of just 0.04 per cent. Global X said the launch of the low-cost product was an opportunity to capitalise on Australian’s growing appetite for ETFs, their preference for domestic offerings, and the safe haven of Australia against a turbulent US market.
Crucially, with management fees of 0.04 per cent per annum, Global X said these are almost half that of rival Vanguard’s Australian Shares Index (VAS) which charges 0.07 per cent per annum and also tracks the ASX 300.
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