Global X’s Growth at a Reasonable Price ETF Earns ‘Recommended’ Rating from Lonsec
The newly-launched Global X S&P World ex Australia GARP ETF (ASX: GARP) has received a ‘Recommended’ rating from premier investment research and ratings firm, Lonsec.
The ‘Recommended’ rating reflects strong conviction in GARP’s structure and returns, making it an apt choice for investors seeking diversified exposure to global Growth at a Reasonable Price (GARP) stocks, typically characterised by lower price-to-earnings, price-to-sales, or price-to-book multiples. According to Lonsec’s report, GARP’s methodology represents an efficient and effective means to access global GARP stocks and deemed it a competitive price relative to a broad range of smart beta funds.
GARP is the only product offering such extensive exposure in the Australian market, with annual fees that are notably lower than those of other factor-based ETFs. Tracking the performance of the S&P World Ex-Australia GARP Index AUD, this fund empowers investors to adopt a disciplined, cost-effective approach to capital growth, investing in approximately 250 quality global companies renowned for robust earnings growth and solid financial strength, all trading at fair valuations.
Manny Damianakis (pictured), Head of Sales at Global X ETFs, said the ‘Recommended’ rating supports the firm’s conviction in the strategy and anticipates it will attract investors seeking to generate consistent returns during periods of market unpredictability.
“Despite strong market performance in 2024, a precarious political and geopolitical landscape has led investors to seek capital growth while minimising risk exposure. This shift prompts a more cautious stance in their investment strategies,” Damianakis said.
“GARP investing presents a unique opportunity for those looking to balance growth potential with risk management. This strategy merges growth and value investing principles, allowing investors to benefit from varying market conditions. Value investors tend to perform well in downturns, while growth investors thrive in bull markets; GARP investors can expect a more consistent return profile across different market environments.”
GARP is one of the latest additions to Global X’s 41-strong lineup across core, thematics, commodities, income and cryptocurrency ETFs. Global X now has $8.8 billion in assets under management.
