Global X ETFs hits $10 billion assets under management milestone
Total assets under management for Australian exchange traded fund (ETF) providers is expected to hit $300 billion by the year’s end and approach $1 trillion by 2030, as more Australians adopt ETFs to build portfolios at low cost away from actively managed funds, helping to propel Global X ETFs‘ assets under management (AUM) to $10 billion.
According to Alex Zaika, CEO of Global X ETFs, the firm has now overtaken State Street and is now the fifth largest index ETF provider in Australia, cementing its position as one of the country’s fastest growing ETF issuers.
“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. 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,” Zaika said.“Our $10 billion milestone comes less than three years after entering the Australian market; Global X is now targeting a goal of $20 billion in AUM in 2027. Our ETFs such as DRGN, SEMI, BUGG, GXAI and DTEC have opened up important investment themes to investors, including AI, Chinese technology, cybersecurity and semiconductors, which power AI.”
As money continues to pour into the industry, Global X has welcomed more than 18,000 new investors since January 1. “While we account for 4% of the local ETF market by AUM, Global X accounts for 8% of the market by turnover, reflecting the higher activity of our investor base and the unique appeal of our innovative ETFs.”
More broadly, Zaika expects that the ETF industry will continue to grow at the expense of unlisted managed funds industry.
“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,” Zaika said.
Keeping pace with soaring demand, Global X ETFs has launched four new ETFs this year, bringing its Australian portfolio to 45 ETFs, including the Global X Artificial Intelligence Infrastructure ETF (AINF) and the Global X Russell 2000 ETF (RSSL). Further launches anticipated in the second half of 2025 include lower cost core exposures for investors to use as building blocks in their portfolios.
Investors favour low-cost ETFs over active funds
Notably, 75% of new flows into the ETF market have been into low-cost ETFs, underlining a clear investor preference for cost-effective strategies. “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,” Zaika added.
Creating leadership opportunities
Global X is led by a diverse team of experts, with women accounting for nearly 50 per cent of its workforce and more women than men being part of the leadership team, a notable rarity in finance. Meanwhile, 75% of the global X team are aged less than 40 years.
“Our commitment to ensuring diversity across the business has been important to our growth. Half of our employees have joined Global X within the last two years, reflecting not only our growth but a vibrant culture and workforce which is sensitive to the needs of a growing cohort of young Australians who are using ETFs to invest in global asset markets and build wealth through smart innovative investment strategies,” Zaika said.
Global X is wholly owned by Mirae Asset Financial Group, which has 58 offices worldwide and over US$600 billion in AUM. As a result, Global X provides access to global investment opportunities through various ETFs backed by world-leading asset management expertise.
