Global X flags latest expansion as it targets $12bn AUM
Global X has shared its intentions to expand its range of exchange-traded funds (ETFs) as it chases ambitions of becoming a top issuer of ETFs in Australia.
Just over a month ago, Global X announced it had surpassed $10 billion in assets under management (AUM), setting its sights on doubling this by 2027. The firm has since reached $11 billion AUM and expects to continue growing, with a target of $12 billion by the end of the year.
As part of this goal, Global X said it will be expanding its range of ETFs with the addition of a new low-cost Australian equity ETF 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.
The addition of a low-cost core product will provide investors with more choice in addition to Global X’s thematic vehicles. Australian equities, in particular, have seen $3.9 billion in flows since the start of the year, which brings total AUM in this sector to $43 billion.
The latest ETF, which will be its fifth ETF launch this year, is intended to be launched on 6 August.
According to Alex Zaika, chief executive of Global X ETFs Australia, the Australian ETF industry is expected to break through $300 billion by the end of 2025, up from $280 billion as at 30 June.
“Global X plans to further broaden our range in a bid to become relevant to more investors; we want to be part of every Australian’s investment portfolio. Our fifth product launch of the year is a low-cost Australian Equity ETF that will provide exposure to the top 300 Australian companies on the ASX,” Zaika said.
Since the start of the year, Global X has reportedly gained 18,000 new investors, which led to the firm overtaking State Street in AUM to be the fifth-largest index ETF issuer.
AUTHOR
Shy-Ann Arkinstall
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