Global X launches ETF for easy access to US Small Cap stocks
Global X ETFs have launched the only exchange-traded fund (ETF) in Australia to track the Russell 2000 Capped Index – the Global X Russell 2000 (ASX:RSSL).
RSSL provides exposure to 2000 small cap stocks listed in the US, including the Financial, Health Care and Industrial sectors, ensuring diversified access to early-stage, innovative companies.
Global X ETFs Senior Investment Strategist, Billy Leung, stated, “Small cap equities often outperform during economic recoveries and periods of financial easing. Combined with Trump’s pro-growth and pro-business stance, US small-caps are positioned to benefit significantly and offer long-term growth opportunities.
“With projected GDP growth of 2.1% in 2025, the US is set to outpace other developed economies and is leading the charge globally.
“By indexing the Russell 2000, RSSL gives investors exposure they might be short in, offering a diversification premium across small-cap growth and mega-cap innovation.”
New Global X analysis has shown that during the first Trump administration, the Russell 2000 outperformed the S&P 500. The first six months saw Russell outperform by 2% (17% vs 15%), and over 12 months period it outperformed by 1% (21% vs 20%).
Global X ETFs is strategically expanding its lineup of innovative, research-backed ETFs to meet the increasing complex needs of Australian investors. RSSL is structured to accompany numerous existing Global X funds such as FANG and U100, which embody the potential of US markets.
FANG holds a concentrated portfolio of 10 mega-cap stocks including the US’s heaviest hitters such as Amazon, Alphabet, Meta, and Nvidia, while U100 captures tech-driven innovation across US exchanges which provides more extensive coverage with a basket of 100 stocks.
RSSL is the 42nd product Global X has launched in Australia and follows the launch of other first-to-market ETFs including the Global X S&P World ex Australia GARP ETF (ASX: GARP) and Global X Bank Credit ETF (ASX: BANK).
Backed by its parent company Mirae Asset, Global X is uniquely positioned in the Australian market, combining strong international presence with nuanced local market intelligence. RSSL was launched by Global X’s New York team in April last year and has since gained more than US$1.5 billion in net assets.
