Global X Australia has exceeded $9 billion in assets under management (AUM). This comes just months after the exchange-traded fund (ETF) manager crossed the $8 billion mark in September, building on the growth trajectory that saw it hit $7 billion in early 2024.
According to Global X senior investment strategist Billy Leung, further growth is on the cards in 2025.
“We could reach $11 billion by the year’s end if the strong start to the year continues, with much of the money Australians are investing in ETFs expected to go into international equity and US ETFs and also portfolio staples such as gold, which have benefited significantly since Trump’s election, given the uncertainty his economic policies have introduced and their potentially deleterious impact on global trade and economic growth,” Leung said.
The announcement comes shortly after the firm expanded its local product suite, having last week revealed the launch of the only ETF in Australia to track the Russell 2000 Capped Index, the Global X Russell 2000 (RSSL).
RSSL, according to the ETF manager, provides investors with exposure to US small cap equities, a segment of the market often positioned to capitalise on emerging opportunities.
This includes the financial, healthcare and industrial sectors, which Global X said are often under-represented in large-cap indices like the S&P 500.
In conversation with InvestorDaily, Leung explained that the “DNA” behind Global X is its pursuit of bringing innovation into the Australian ETF offering – something the firm continues to consider as it seeks to bring more products to market.
“I think the key is that we are going to really focus on innovation,” the investment strategist said on opportunities in 2025.
“We’re not trying to replace any funds. I think the key of Global X and the DNA of Global X is to have that sort of enhanced version – give people reason to add this new product into their portfolio as opposed to replace.
“Providing that edge and doing something that’s – I know it’s really cliché – but something outside the ordinary.”
Expounding on this, Leung said that in the case of RSSL, there are a flurry of small up equity ETFs currently on offer in the market.
“But there’s none that’s RSSL, and that’s exactly what we’re trying to do. We’re not trying to go, ‘No, don’t buy those small cap funds.’ We’re gonna go, ‘Look, if you also want something outside of the S&P, we’ve got that Russell cap as well.’
“That’s what we’re trying to do; improve the overall market, improve that selection and improve the options for investors,” Leung said.
Speaking to InvestorDaily at the time of hitting the $8 billion mark, head of sales Manny Damianakis said that 2024 has been a record year for the firm.
“I think the big difference between where we are now versus where we were previously, is that we are dealing a lot more with financial advisors, and the growth of managed accounts has helped,” Damianakis said.
“So we’re in a lot of those portfolios now, which we weren’t in previously. On that basis, we’re on track to continue the business growth.
“We’ve got good people, good products, it’s just about using different channels, that makes a big difference, too. We deal with advisors, private wealth SMA providers, direct investors. So it’s just kind of about making sure that our products are as broadly available as possible.”
