Oliver Reynolds, Chief Operating Officer, and Manny Damianakis, Head of Sales, will oversee day-to-day operations while Metcalf will support the handover of his responsibilities and continue to work on some ongoing projects.

Metcalf joined Global X (formerly ETF Securities) in 2014 and has held several roles during this time including Head of Operations, Co-Head of Portfolio Management, and Head of Product before being appointed as CEO in 2022 following the acquisition of ETF Securities by Mirae Asset. Under his leadership, Global X has launched 19 new funds and increased assets under management by AUD$3 billion.

Commenting on the news, Metcalf said, “We have reached many significant milestones during my time at Global X and I’m incredibly proud of everything we’ve accomplished. I have the utmost confidence in the future of the firm, and I want to thank our team for their hard work and commitment to delivering innovative and client-led solutions for investors.”

Mr Young Kim, Head of the Global Business Unit at Mirae Asset, thanked Evan for his contribution to Global X.

“Evan performed a pivotal leadership function during his tenure as CEO, establishing a strong foundation for Global X Australia and reinforcing the firm’s position as a leading provider of innovative and disruptive investment solutions. On behalf of Global X and Mirae Asset, I want to thank Evan for his leadership and dedication to the firm. We are grateful for Evan’s contribution to Global X and wish him all the best in his future endeavours,” Kim said.

Global X have commenced steps to appoint Metcalf’s replacement and are looking forward to welcoming a new leader to the business. Global X remains committed to delivering the same level of excellence and innovation that our team, customers and partners expect.

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Evan Metcalf

Global X ETFs (Global X) has announced the launch of its Global X FANG+ (Currency Hedged) ETF (ASX: FHNG), offering Australian investors exposure to companies at the leading edge of next-generation technology with minimised exchange rate risk.

FHNG is the currency hedged version of the company’s most popular growth orientated fund, the Global X FANG+ ETF (ASX: FANG), which was launched in 2020 and holds more than $645 million in net assets.^[1]

The new hedged strategy provides exposure to ten companies driving technology innovation across multiple segments, including both household names and newcomers, currency hedged to the AUD. The fund aims to provide investors with a return that (before fees and expenses) tracks the performance of the NYSE® FANG+ Index (AUD Hedged), with a competitive management fee of 0.38% p.a. It includes the ‘Magnificent 7’ stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – which have outperformed the broader S&P 500 over the last three years.^[2]

Chief Executive Officer, Evan Metcalf said FHNG is an attractive option as a core building block for growth-oriented portfolios, offering an unconstrained approach that incorporates the most innovating next-generation technology companies across a variety of segments and sectors.

“The Australian dollar has softened considerably over the past two years, and given this fluctuation, our clients are seeking to include AUD-hedged products in their portfolios. Given FANG is entirely exposed to the USD, FHNG presents a strategic way to achieve this minimised currency risk, while still offering a high growth opportunity,” Metcalf said.

“Global X remains at the forefront of capitalising on the significant potential of emerging macrotrends driven by technological advancements. With innovations such as cloud computing and artificial intelligence having only just scratched the surface, we are committed to offering investors solutions that engage with these transformative and long-term structural trends.”

Global X also plans to launch a currency hedged physical gold ETF later this quarter. Global X is the industry leader in gold ETFs, having launched GOLD in 2003 as the world’s first physically backed gold exchange traded product, and it remains the largest and most liquid of its kind in Australia. Earlier this year the company launched its Global X Gold Bullion ETF (ASX: GXLD), offering investors a lower-cost alternative to GOLD, designed for longer-term investments.

FHNG is the 39th product to be added to Global X’s suite of ETFs in Australia.

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Evan Metcalf

Global X ETFs (Global X) has launched the Global X Gold Bullion ETF (ASX: GXLD), expanding the company’s range of gold-backed products. GXLD will compliment Global X’s flagship product, Global X Physical Gold (ASX: GOLD), providing investors more choice in selecting a product that is best suited to their overall investment strategy.​

GXLD aims to replicate the movements in the Australian dollar price of gold, less the annual management fee, by investing in physical gold bullion bars. With a management fee of 0.15% per annum, it is currently the lowest-cost physical-backed gold ETF in the Australian market, providing a cost-effective option for investors seeking longer-term exposure to gold as a core portfolio allocation.

The launch represents the latest achievement in Global X’s pioneering history in gold-backed ETFs, having reached over $3 billion in FUM, representing a 70% market share. Notably, Global X made history by introducing the world’s first gold-backed exchange-traded product, GOLD, in 2003.

Chief Executive, Evan Metcalf said: “As the largest and most liquid gold-backed exchange traded product in Australia, our flagship product GOLD is valued by our clients, especially for investors prioritising transaction costs and liquidity. GXLD allows us to deliver the same value to investors looking to invest in gold over the longer-term. GLXD’s lower management fee of just 0.15% has the potential to translate into significant cost savings for these investors over long time horizons.”

“This resilience presents a promising opportunity for investors. With the launch of GXLD, we’re excited to offer Australian investors a variety of choice that allows them to capitalise on the enduring value of gold, based on what is best suited to their unique portfolio needs,” Metcalf said.

Gold prices have surged 20 per cent over the past two months to record highs above US$2400 (AU$3754) an ounce despite recent challenges like elevated real bond yields and a robust US dollar, which historically have worked against gold’s favour.

Senior Product and Investment Strategist, David Tuckwell said: “The gold price has been driven up to record highs largely by central bank buying – particularly in China as it aims to diversify its reserves away from the US dollar. China has seen gold buying increase more broadly as investors seek out returns outside its underperforming equity and property markets.

“Although the gold price has seen a small correction in recent weeks, looking into the second half Global X believes gold prices are well supported. Statistically, the best two predictors of the gold price are real yields on US government debt and the strength of the US dollar.  With markets forecasting these to possibly fall late in 2024 or early in 2025, if history is any guide, we could be in for another leg up in the gold price.”

GXLD is the 37th product in the company’s strong product lineup in Australia.

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Scott Helfstein

Global X ETFs (Global X) is launching the Global X Artificial Intelligence ETF (ASX: GXAI) on the ASX, offering Australians targeted exposure to innovation and growth in artificial intelligence (AI) related companies.

GXAI, which tracks the Indxx Artificial Intelligence & Big Data Index, focuses specifically on investing in companies along the AI value chain, including those involved in generative AI technology providing automation of systems and AI-as-a-Service solutions. GXAI will be the first dedicated Artificial Intelligence ETF launched in Australia.

Chief Executive, Evan Metcalf said there is almost limitless potential with the AI thematic and forecasts suggest the global AI market could increase to US$300bn by 2026.[1]

“Artificial intelligence is still maturing, and with this natural evolution comes the potential opportunities for new applications. GXAI offers investors a way to target the rapid advancements and capabilities of AI technologies across a range of industries and a diversified selection of companies. We believe there is a big appetite for AI-related ETFs in the local market, as Global X has already seen a combined $125 million in flows this year to date across the Global X FANG+ ETF (ASX: FANG) and the Global X Semiconductor ETF (ASX: SEMI) which offer exposure to subsets of the AI theme,[2]” Metcalf said.

“AI is not a flash in the pan, it’s a structural shift which will change industries and life as we know it. Australian investors can use GXAI to invest in leading companies across the value chain of this megatrend which are positioned to benefit from AI adoption and innovation. Hence, GXAI is a fitting addition to our product lineup as our thematic investing ethos is centred on longer-term opportunities,” Metcalf said.

Speaking to the strategic targeted benefits of GXAI, Scott Helfstein, Head of Thematic Solutions at Global X, said: “While GXAI captures some of the most prominent names in the AI sector, such as Netflix, Adobe and Nvidia, it applies moderation through a single-stock cap exposure of 3%. This acts as a natural portfolio diversifier and presents a more balanced portfolio which thoughtfully targets the AI theme.”

“In the past 12 months, we’ve seen an increased global appetite to capitalise on the growth potential of AI technologies, and we expect this momentum to continue. It is important for investors to have strong, well tested investment vehicles at their disposal to capitalise on this important thematic.”

GXAI is the latest addition to Global X’s 36-strong product lineup in Australia. It expands Global X’s robust suite of technology-themed ETFs including BUGG, FANG, N100, ROBO, SEMI, and TECH.[3]

———-

Notes:
[1] AIQ (globalxetfs.co.jp)
[2] Bloomberg as at 28 March 2024.
[3] Assets under management as at August 2022, Global X
[4] Ibid.
[5] Assets under management as at June 2022, Mirae Asset Global Investments

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Evan Metcalf

Global X ETFs (Global X) has expanded its local research team with the appointment of Billy Leung to the role of Investment Strategist. This comes as the Australian businesses recently surpassed $7 billion in assets under management (AUM).^[1]

Leung has a decade of specialised experience in the Hong Kong/China markets, with a focus on the technology sector. Most recently, he served as an Equity Analyst at global market maker Optiver for over two-and-a-half years. Prior to this he was the Director of Equity Research for five years at Haitong International – Hong Kong. In 2020, Billy ranked third in the Regional Analyst for Software and Internet by Asiamoney.^[2]

Chief Executive, Evan Metcalf said growth across the business was the key priority moving into 2024 and Global X is looks forward to expanding further.

“We are thrilled to have Billy Leung join Global X as an Investment Strategist. Technology will be his area of expertise, elevating our ability to provide insights to our local clients and offer specialised ETFs. He also brings a refined understanding of the industry from both buy-side and sell-side roles,” Metcalf said.

“Billy’s appointment is timely given the technology sector has been responsible for outsized returns and has been a rich vein of product development. Global X is dedicated to our innovative thematic ETFs and Leung’s appointment is a testament to that,” Metcalf said.

“This year to date, tech-tilted and thematic ETFs have seen strong inflows as Australian investors gear their portfolios towards growth orientated assets. Subsequently, our AUM has surpassed $7 billion, and we will continue to execute on intelligent strategies to facilitate further growth.”

Commenting on his appointment, Leung said, “I’m looking forward to joining the team during an exciting time of growth and innovation in the ETF market. With an extensive career rooted in data analytics and comprehensive research, I’m excited to be able to leverage the robust resources and capabilities at Global X to deliver real client value.”

———

Notes:
[1] Data from Bloomberg as at 5 April 2024.
[2] December, 2020. (Asiamoney). Best Regional Sales and Research Analysts 2020.​

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Evan Metcalf

Global X ETFs has reduced the annual management fees for two of the company’s fixed income ETFs: the Global X USD High Yield Bond ETF (Currency Hedged) (ASX: USHY) and the Global X US Treasury Bond ETF (Currency Hedged) (ASX: USTB).​

The USHY ETF sees a reduction from 0.40% down to 0.30% a year, enabling opportunistic Australian investors to tap into a high-yield market with increased cost efficiency.

Meanwhile, the USTB ETF management fee will be lowered from 0.20% to 0.19%, offering a means of further stability to investors’ portfolios.

Chief executive, Evan Metcalf said this fee reduction comes amid a resurgence in demand for bonds and demonstrates Global X’s commitment to providing investors with intelligent, and timely solutions. ​

“We are pleased to offer competitive rates to Australian investors seeking to leverage favourable fixed-income opportunities presented by global economic conditions,” Metcalf said.

“We observe increased investor interest in the role of bonds within a portfolio, driven by historically robust yields, and a positive market outlook further fuelled by the anticipation of the US Federal Reserve initiating rate reductions in 2024.

“Meanwhile, US Treasury bonds, the world’s most heavily traded, offer stabilising properties in market environments anticipating peak growth and heightened challenges for equities.”

The USHY ETF tracks the Solactive USD High Yield Corporates Total Market Index (AUD hedged). The index is market capitalisation-weighted and mirrors the performance of high-yield-rated corporate bonds issued in US dollars. The fund provides Australian investors with a simple way to invest in high-yield bonds from developed countries across the world, while also diversifying their portfolio with global exposure.

The USTB ETF is a passively managed fund, which tracks the iBoxx $ Treasuries Index (AUD hedged). The index is market capitalisation-weighted and mirrors the performance of debt issued by the US government. The fund offers Australian investors the opportunity to explore global market exposure while generating income and diversifying their portfolio.

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Evan Metcalf

Mirae Asset Global Investments (Mirae Asset), a leading global investment manager, has announced that its exchange traded fund (ETF) business has surpassed US$100 billion^[1] ($147 billion) in assets under management (AUM). This significant milestone reflects sustained demand for Mirae Asset’s innovative ETF products across the Americas, in Europe, Asia and Australia.

Over the past five years, Mirae Asset’s ETF business has undergone extraordinary growth, witnessing a 350% surge in AUM^[2]. This success can be attributed to the continued diversification of its product strategy and the growing recognition of its four ETF brands: Global X ETFs, TIGER, Horizons ETFs, and Mirae Asset.

With an impetus on high-quality investment solutions that adapt to global investors’ needs, Mirae Asset has now established itself as the 13th largest ETF provider globally and has surpassed the entire Korean ETF market in terms of AUM size ($82.55 bn).^[3]

“We are extremely proud of the global team we have built and remain committed to expanding the capabilities of our investment platform,” said Hyeon-Joo Park, Global Strategic Officer at Mirae Asset.

“Our global ETF franchise will serve as a strong foothold as we leverage our synergies across markets and offer investors unequalled exposure to disruptive themes, access to international markets, and tools that help them achieve their investment objectives,” he said.​

Since launching its first ETF in Korea in 2006, the TIGER ETF, Mirae Asset has expanded in core markets by acquiring key ETF providers; it now offers over 530 ETFs across a broad spectrum of asset classes, thematic and geographic areas.

Global X ETFs CEO Evan Metcalf welcomed the milestone and predicted that Global X’s expansion in Australia would mirror its success in offshore markets. “Investors can access key investment themes on the ASX through Global X ETFs, which now total 33. We offer Australians the opportunity to invest in disruptive technology, decarbonisation, commodities, artificial intelligence, and much more, to build their wealth now and well into the future,” he said.

“With the local exchange traded product (ETP) industry striking a record size of $146 billion in June 2023,^[4] we expect ongoing strength in the local ETF market and a greater uptake of Global X ETFs to help rapidly expand our local presence,” Metcalf said.

With the global ETF AUM expected to grow to US$15 trillion in 2027, Mirae Asset plans to strengthen and differentiate its innovative ETF business to meet investors’ needs.​

“We leverage our extensive global network to conduct exhaustive analyses of local markets and offer pioneering products distinguished by their thematic and income-oriented focus, instead of solely relying on market index offerings,” said Young Kim, the Head of the Global Business Unit at Mirae Asset. “Moving forward, we remain dedicated to introducing competitive products that cater to the discerning needs of our valued investors.”​

In addition to its strategic acquisitions, Mirae Asset has cultivated organic growth and maintains a robust foothold in well-established markets like Brazil, Colombia, Europe, India, Korea, Vietnam, Hong Kong and Japan, where it formed a joint venture with Daiwa Securities in 2019.

——-

Notes:
[1] Source: Mirae Asset, June 30, 2023.
[2] Ibid.
[3] Ibid.
[4] Source: ASX Investment Product Summary – June 2023.

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Evan Metcalf

Global X ETFs, Australia’s pre-eminent leader in thematic, commodities and digital assets ETFs has appointed Evan Metcalf to the role of CEO, Global X Australia.

Evan will lead the company as it accelerates its growth in the Australian market following its acquisition of ETF Securities Australia in June 2022.

He will play an instrumental role in continuing to build on Global X ETFs’ legacy for investors that’s beyond ordinary via quality research, a strong balance sheet and a track record of innovative and investor-driven product design to benefit its clients.

Luis Berruga welcomed Mr. Metcalf to the role and commended his experience leading ETF Securities as Head of Product since 2015.

“We have the utmost confidence that Evan’s previous success and expertise in this market will help to advance our goals here in Australia as we look to create opportunities for our clients and expand our offering, creating an Australian ETF powerhouse,” he said.

Young Kim, Head of the Global Business Unit at Mirae Global Investments, congratulated Mr Metcalf and expressed his enthusiasm for success of Global X ETFs in Australia.

“We are excited to partner with such a strong industry veteran. Evan’s charismatic leadership will act as a catalyst for our aspirations in the Australian market. The Mirae Asset group looks forward to the accomplishments that Evan and the Global X ETFs team will achieve in the near future,” he said.

Mr. Metcalf said he is excited about the future and is looking forward to leading the Australian arm of the Global X ETFs business.

“I’m delighted to be stepping into this role, having worked across a range of international financial services roles for over 20 years.

“Global X ETFs’ focus on product design, innovation, and investor-driven market access, as well as its suite of ETF products across key segments of thematic investing, income and commodities backed by in-depth research, is like no other offering in this market.

“I look forward to partnering with all areas of the Global X global business to drive further growth and bring more products to Australia building on our global heritage and strong investor-centric approach,” he concluded.

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Evan Metcalf

Leading ETF provider ETF Securities has given investors more options for investing in the fixed income market, with the launch of a US Treasury Bond fund and a USD high-yield corporate bond fund.

The new funds are ETFS US Treasury Bond (Currency Hedged) ETF (ASX Code: USTB) and ETFS USD High Yield Bond (Currency Hedged) ETF (ASX Code: USHY).

USTB is the first pure play exposure to US Treasuries available to Australian retail investors.

ETF Securities Head of Product Evan Metcalf says: “Fixed income securities play an important role in investment portfolios. Their returns generally have a low correlation to equity returns, which provides portfolio diversification.

“And over time, they have low volatility. This means they provide yield with relatively low risk. Investors often compare the yield on government bonds to the higher yield on dividends from equities. What they ignore is that to capture that dividend yield they must invest in an asset class with double-digit annual volatility.”

He added: “These investment options are perfect for investors like retirees or SMSFs who are seeking peace of mind, and low risk asset classes.”

Kanish Chugh, Head of Distribution ETF Securities added: “We will continue to offer innovative and timely products to the market and this launch marks the start of our new growth strategy, especially in light of Mirae Asset and Global X ETFs acquisition of our business.

“We are excited to work with Global X ETFs, and to dip into their vast research capabilities and experience.  As a leading provider of ETFs we will continue to offer solutions for investors to build portfolios across the spectrum, whether it’s defensive, growth, income or alternatives,” said Chugh.

ETFS US Treasury Bond (Currency Hedged) ETF (ASX Code: USTB) tracks the iBoxx $ Treasuries Total Return Index, hedged into Australian dollars. The index is market capitalisation weighted and tracks the performance of bonds issued by the US government.

USTB gains its exposure to the index by investing in DWS Group’s Xtrackers II US Treasuries UCITS ETF. DWS is a leading global fund manager with €850 billion of assets under management.

The market for US government debt is the deepest and most liquid of any type of financial instrument, with more than US$23 trillion of outstanding Treasuries.

Despite the scale of this market, Australian retail investors have had no access to a pure play investment in US Treasuries until now.

ETFS USD High Yield Bond (Currency Hedged) ETF (ASX Code: USHY) tracks the Solactive USD High Yield Corporates Total Market Index, hedged into Australia dollars.

USHY gains its exposure to the Index by investing in DWS Group’s Xtrackers USD High Yield Corporate Bond ETF.

High yield bonds are tradeable debt securities issued by companies with sub-investment grade credit ratings. Investors who are prepared to accept higher risk can earn higher income than investors in investment grade bonds.

To qualify for inclusion in the Solactive Index, bonds must be issued by companies based in developed market countries with at least US$1 billion outstanding face value.

Metcalf says: “Fixed income markets have had mixed results over the past year but long-term the asset has proved its value as a core holding, providing investors with yield at relatively low risk.”

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Evan Metcalf

Leading provider of exchange traded funds, ETF Securities, has launched Australia’s first ETF that gives investors access to the world’s booming semiconductor industry.

ETFS Semiconductor ETF invests in the biggest and most influential semiconductor companies in the world, responsible for bulk of global microchip production.

SEMI tracks the Solactive Global Semiconductor 30 Index, which is a portfolio of 30 companies in developed markets, plus Taiwan and South Korea, which are active across the semiconductor value chain.

ETF Securities Head of Distribution Kanish Chugh says the company is paying close attention to investment themes emerging from megatrends.

“By following megatrends, investors can access high growth opportunities, which are not yet fully captured by conventional sectors or unexpressed by factors. Additionally, they can manage risk by hedging against the disruption that global economic ructions can cause. Correctly identifying and acting on megatrends can offer enormous upside.

“With the rise of thematic ETFs, megatrend investing has become more readily accessible. Semiconductors are a key component that are increasingly underpinning the development of many other megatrend technologies.

“Given this backdrop, we are very excited to launch a series of new ETFs this year that tap into new megatrends. SEMI will be the first of these new ETFs- an Australian first,” says Chugh.

Evan Metcalf, Head of Products at ETF Securities, says: “SEMI fits in our belief that semiconductors are the brains of modern electronics and are an essential part of several megatrends. In many cases, advancements in technology have only been possible due to improvements in semiconductors.”

The coronavirus pandemic has boosted the demand for electronic goods. With more people working, shopping and entertaining themselves from home, electronic devices that enable a remote existence have never been more in-demand. Annual sales growth of semiconductors is forecast to hit a whopping 20% a year in 2021.

There are several exciting newer trends also driving semiconductors, notes Metcalf.

“This includes cryptocurrency,  Artificial Intelligence ( AI) and also video games and cloud computing, given their use in consoles and servers. All of these areas – AI, cloud computing, eSports – are experiencing strong growth, and taking semiconductors with them. But perhaps the most exciting is electric and self-driving cars.”

SEMI provides diversified exposure to the global supply chain, which includes microchip foundries, transistor manufacture, microchip lithography and central processing unit and graphic processing unit assembly.

Stocks included in the portfolio include:

• Taiwan Semiconductor, the biggest company on the Taiwanese stock exchange and a national champion. It operates the biggest semiconductor foundry in the word.
• ASML, a Dutch company that makes lithography machines that put transistors onto microchips. It has no substantial competitors and is effectively a monopoly.
• Nvidia, a US company that makes graphics processing units, or graphics cards, which allow many detailed processes to be run at the same time. The company’s products have emerged from the gaming sector and are now playing a key role in the development of commercial applications for artificial intelligence.

Chugh says a characteristic of the semiconductor industry that has high barriers to entry. Foundries cost billions of dollars to build, often taking several years to complete. Companies must commit to high ongoing research and development spend and they must keep up with constant innovation.

“These characteristics give the stocks in the index wide moats,” Chugh says.

The Solactive Global Semiconductor 30 Index increased by more than 56% over the 12 months to August and is up more than 23% year-to-date.

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