CEO of Global X ETFs, Alex Zaika, confirmed on Monday that the company has overtaken State Street to become the fifth-largest index ETF provider in Australia.
“The ETF industry is on track for its busiest year, fuelled by record flows of $19.2 billion as at the end of May, with growing interest in ETFs,” he said. “This has helped boost Global X’s AUM to grow to more than $10 billion, as more investors turn to lower-cost index investments to build wealth.”
The sum comes three years after the acquisition of the firm by Mirae Asset Global Investments and Global X in June 2022, which saw it rebranded from ETF Securities, the name it was founded under in 2003, to Global X ETFs Australia.
Zaika further noted the ongoing shift from traditional unlisted managed funds to exchange-traded funds (ETF).
“It’s a fact that most active managers underperform their benchmarks over the long term, according to data from S&P. Australians are wising up to this underperformance and shifting to lower-cost ETFs, which has boosted the ETF market,” he said.
The industry’s momentum has propelled Global X ETFs to this $10 billion milestone, as local investors increasingly opt for low-cost, index-based investment options over traditional managed funds.
“Our ETFs such as DRGN, SEMI, BUGG, GXAI and DTEC have opened up important investment themes to investors, including AI, Chinese technology, cyber security and semiconductors, which power AI.”
Since the beginning of 2025, Global X has welcomed more than 18,000 new investors.
“While we account for 4 per cent of the local ETF market by AUM, Global X accounts for 8 per cent of the market by turnover, reflecting the higher activity of our investor base and the unique appeal of our innovative ETFs,” Zaika said.
In response to strong investor demand, Global X launched four new ETFs this year, expanding its offering to 45 Australian-listed products.
Recent additions include the Global X Artificial Intelligence Infrastructure ETF (AINF) and the Global X Russell 2000 ETF (RSSL). Further launches are planned for the second half of 2025, which aim to provide lower cost core investment options.
Additionally, Global X filed for its Australia 300 ETF (A300) with the ASX, signalling a potential launch despite not confirming plans. The firm aims to expand beyond niche offerings as ETF inflows grow, targeting increased demand for low-cost core investment options.
Investor preference for cost-effective investing has remained clear, with 75 per cent of new inflows directed to low-cost ETFs.
“The migration to low-cost investing from more expensive unlisted funds will likely continue in 2025 and in 2026, with investors seeking cheaper alternatives to relatively poorly performing unlisted managed funds,” Zaika said.
“Importantly, as more capital shifts from active managed funds to ETFs, total fees paid across the financial industry will likely decline, which is bad news for high-cost fund managers, but a win for investors.
“This trend underscores Australian investors’ fee sensitivity and their increasing preference to use ETFs to build portfolios.”
The ETF market has continued this rise amid predictions that AUM are on track to reach $300 billion by the end of 2025.
