Global X issues low-cost Australian equity ETF | Australian Markets

Global X has added to its present vary of low-cost exchange traded funds (ETFs), this time with a product focusing on the highest 300 Australian corporations listed on the Australian Securities Exchange (ASX).

The ETF supplier stated the choice to convey an Australian equity-focused product to market was pushed by the increase in investor urge for food, citing over $21 billion in inflows into Australian-listed ETFs throughout the calendar 12 months to June 30 and 20 per cent of them directed to low-cost merchandise.

“While we are still seeing significant investment money flowing into global equity and US equity ETFs with $3.1 billion and $1.2 billion in new flows year to date respectively, Australians still have a bias to investing in Australian assets,” Alex Zaika, CEO at Global X ETFs Australia, stated.

“Low-cost broad-based Australian equity ETFs have been the most well-liked class, seeing $3.9 billion in internet flows this 12 months, bringing their whole belongings to over $43 billion and accounting for round 16% of the ETF market.

“Global X plans to additional broaden our vary in a bid to turn into related to more traders; we need to be half of each 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 additionally confirmed forecasts remained at $300 billion for the Australian ETF industry to hit by the top of the 12 months, on the similar time as traders pivot away from the US’ instability and the worldwide ripple results.

“The ETF industry is growing rapidly, as more Australians adopt ETFs to build investment portfolios at a lower cost. The adoption of ETFs has helped to push Global X’s AUM to over $11 billion and we expect to exceed $12 billion by the year’s end,” he stated.

“We plan to double down on what we’re identified for – main thematic and progressive ETFs backed by best-in-class analysis – whereas increasing into lower-cost core exposures to offer Australian traders with more alternative.

“However, for portfolios to be balanced and well diversified, they should have a good representation of overseas and Australian shares. Our current product lineup features a range of ETFs targeting international markets, but we also understand the importance of meeting investor demand for more domestic equity ETFs.”