Billy Leung
Global X ETFs Australia is celebrating five years of its Global X Semiconductor ETF (ASX: SEMI), marking half a decade since it identified semiconductors as a critical investment theme for the next generation of technology.
SEMI has delivered an average annualised return of 33% per annum over a five-year period, making it the best performing ETF in Australia over 5 years.[1]
SEMI began trading on the ASX on 31 August 2021, more than a year before ChatGPT brought artificial intelligence into mainstream conversation. The fund reflected an early view that semiconductors, not any single AI application, would be the constraint that determined how the technology developed.
Since then, Global X has continued to expand its range of AI-related thematic ETFs as the opportunity has evolved, from the mega-cap technology companies that dominated markets in 2020 to the semiconductors, critical minerals, power and infrastructure needed to build the AI economy today.
“Over five years ago we leveraged our global research to identify semiconductors as an important thematic and SEMI was born. That conviction has played out, with AI moving from an emerging technology to a fundamental driver of global investment,” said Billy Leung, Senior Investment Strategist at Global X ETFs Australia.
“What has changed since August 2021 is the breadth of the investment opportunity. AI is no longer just about the companies building the applications. It is about the entire ecosystem required to make AI possible,” he said.
Six years of AI innovation
Global X Australia’s AI investment journey began with the Global X FANG+ ETF (FANG) in February 2020, providing exposure to the technology giants shaping global markets, including Facebook (now Meta), Amazon, Apple, Netflix and Google (now Alphabet).
SEMI followed in August 2021, targeting the semiconductor companies at the heart of the digital economy.
As the technology matured, Global X broadened its suite of ETFs:
- GMTL – Rare earths and critical metals, launched October 2022
- WIRE – Copper miners, launched November 2022
- ATOM – Uranium and nuclear energy, launched December 2022
- GXAI – Artificial intelligence, launched April 2024
- AINF – Artificial intelligence infrastructure, launched April 2025
The progression reflects how the AI investment opportunity has changed, from the technology platforms of 2020 to the physical infrastructure required to power AI at scale.
“The arrival of ChatGPT in 2022 made AI tangible for millions of people. For investors, it also highlighted how much infrastructure would be required behind the scenes,” Mr Leung said.
“AI needs chips. Chips need critical minerals and manufacturing capacity. Data centres need enormous amounts of power, copper and physical infrastructure. The investment opportunity has broadened dramatically.”
Global X expects the AI ecosystem to continue evolving and will continue looking for opportunities to bring emerging themes to Australian investors.
“Innovation is part of our DNA. We were early to FANG, early to semiconductors and early to the broader infrastructure supporting AI,” Leung said.
“We will no doubt be looking back in another five years and marvelling at the incredible impact that AI has had on capital markets across the globe.”