Aussie investors dive into US equity ETFs despite | Australian Markets

Global X ETFs Australia has revealed that its US equity-themed exchange traded fund (ETF) had its best month on report of web flows in April despite the “sharp sell-down” at the moment plaguing the US market.

The Global X US 100 ETF (U100), recording $26 million in web flows, was one of a number of ETFs managed by the Australian specialist to succeed in new highs, joined by Australian lined call ETF methods and gold ETFs.

According to the supervisor, a lined call “is an options strategy where investors sell a call option on shares they already own, providing income from the premium received for selling the option, though limiting upside potential if the share price rises above the call strike price”.

The Global X S&P/ASX 200 Covered Call Complex ETF (AYLD) noticed a new report of $14.7 million in web flows throughout April.

“More broadly, solid inflows into US equity ETFs reflect continued confidence in the US exceptionalism narrative and sustained appetite for exposure to the world’s largest economy,” Marc Jocum, Global X Senior Product and Investment Strategist, mentioned.

“Downward and sideways trending markets, that are historically the ideal conditions in which covered call strategies to outperform, triggered by Trump’s tariffs saw the Australian covered call ETF category accumulate $25 million as some investors capitalised on volatility. ”

Global X additionally picked up a majority of the month’s web flows into gold ETFs, with $82 million out of the entire $110 million.

“Globally, we have seen 13 successive weeks of net inflows into gold ETFs, mainly from Asian markets, as investors look to diversify away from traditional US-safe haven assets such as the US dollar and US Treasuries in favour of the precious yellow metal,” Jocum mentioned.

“We are seeing Australians use ETFs to take benefit of the unstable market circumstances and decrease costs to construct their wealth and they’re utilizing ETFs to try this, whereas transferring away from underperforming actively managed funds to try this.

“Australians are more and more unwilling to pay the high charges charged by lively managers, particularly as their efficiency continues to lag, and they’re utilizing passively managed ETFs to gain publicity to the nonetheless all-important US equity market.

“We expect investors will continue to take advantage of lower equity prices and invest in Australian and global assets, which will likely lead to record inflows into the Australian ETF market in 2025.”