Global X to expand product suite with three new ETFs

Global X has told Financial Standard it is launching three new ETFs this year, including one focussing on space technology.

Global X said both the Global X Space Tech ETF and the Global X S&P World Natural Resources ETF are on track to launch this year, with a hedged version of the S&P World ex Australia GARP ETF also expected to come to market in the months ahead.

"These additions reflect our ongoing commitment to building a differentiated and forward-looking ETF lineup for Australian investors," Global X chief executive Alex Zaika said.

"We are also constructive on the space economy, a view shared by many of our domestic and global peers and see it as a compelling long-term thematic opportunity."

The launch of the Space Tech ETF coincides with growing speculation that Elon Musk's SpaceX is undergoing a confidential initial public offering (IPO) process.

A recent report from Morningstar raised concerns around products being launched based on short-term thematics and hype.Morningstar recently downgraded a fund of Global X's parent company Mirae Asset Global Investments in India for introducing a "high volume of gimmicky or short-term thematic products."

"Despite closing several thematic funds last year and earlier commitments to prioritise core offerings, the platform [including Global X] has continued to introduce a high volume of gimmicky or short-term thematic products," Morningstar's report stated.

"Many of these launches appear commercially driven and lack long term investor utility, signalling weak product discipline. Although such strategies account for a small share of ETF AUM, the practice raises broader concerns around stewardship and governance.

"Leadership turnover and cultural friction within Global X further highlights these issues."

Global X said although it is a research-driven firm, the Indian ETF market is vastly different compared to Australia.

"We are also closely watching the evolution of newer ETF markets globally, including India. It is an emerging market with significant long-term potential, and we are excited to be part of its growth as investor awareness and adoption continue to build," Zaika said.

The Space Tech ETF has been listed on Nasdaq as ORBX since April 14, and currently contains $3.11 million (US$2.23m) in net assets, trading at $78.20 (US$56.06).

Notably, it is unlikely the upcoming Australian ETF will mirror the strategies from the existing iteration and may track a different index.

Meanwhile, Global X also recently launched a Silver Miners ETF (SLVM) earlier this year to capitalise on the surge in silver prices - however, the ETF has returned -12.53% since inception, slightly outperformed its benchmark, the Solactive Global Silver Miners Index (-12.61%).

However, Zaika said Global X's approach is the opposite of chasing short-term thematics.

"Importantly, our approach is not about chasing short-term investment fads. We focus on enduring structural trends. For example, we launched Australia's first dedicated AI-themed ETF in April 2024 (GXAI), followed by the first ETF focused specifically on AI infrastructure (AINF). These are areas where we have strong conviction in the long-term growth trajectory," he said.

Zaika added Global X takes pride in identifying long-term, structural investment thematics "early".

"That philosophy underpins our ability to deliver beyond ordinary outcomes for investors," Zaika continued.

"When bringing new funds to market, our process is deliberate: we identify the underlying investment trend and then design targeted, customised exposures that meet the needs of Australian investors. Our range spans both core and thematic or satellite ETFs, reflecting how investors build portfolios."