Global X ETFs Surpasses $50 Billion in Assets Under Management in the U.S.
NEW YORK, July 10, 2024 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs) today announced that the firm exceeded $50 billion in assets under management (AUM) in the U.S.[i] This important milestone reflects the firm's rapid ascent as a leading global ETF provider, having grown from $10 billion in assets under management when the firm was acquired by Mirae Asset Global Investments in July 2018. [ii] As of July 8, the AUM has increased by over $6 billion since the beginning of the year, among its strongest performances in Global X's 15 year history. [iii]
Since Global X launched its first ETF in 2009, the firm has grown and established its expertise in Thematic Growth and Income strategies, reflecting investor interest in the strategies. Global X has expanded its diverse product lineup to feature more than 90 ETFs across several categories, including International, Core, and Commodity funds. The product offerings include themes such as artificial intelligence and evolving infrastructure needs, as well as strategies which seek to generate income including through covered call writing and access to high dividend paying equities. Global X now boasts fourteen ETFs with over $1 billion in assets [iv], spanning across Thematic Growth, Income, and Commodities strategies.[v]
"Global X has developed from a challenger to an industry leader, driven by both our highly innovative product pipeline and through the backing of Mirae Asset, which recognizes Global X as its flagship ETF brand," said Ryan O'Connor, CEO of Global X ETFs. "We have now entered another era of innovation-driven growth, and I am honored to play a leading role in this exciting and transformative period for the business."
CEO Ryan O'Connor continued: "We have an incredible team at Global X with a deep bench of talent and industry knowledge, and this team is building out the infrastructure to take our expansion to the next level—to $100 billion in assets and beyond. In an effort to achieve this growth, we remain laser-focused on delivering for our clients in new, innovative ways to help them reach their investment objectives."
"When I joined Global X as a Research Analyst in 2010, the firm was a new entrant in the ETF industry with $1 billion in assets across eleven funds," said Alex Ashby, Chief Operating Officer at Global X ETFs. "Fast forward to today, we have now eclipsed $50 billion in assets across 93 funds. It has been incredibly rewarding to experience our team's growth to new heights, while prioritizing innovation and collaboration."
About Global X ETFs
Global X ETFs was founded in 2008. For more than fifteen years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and over $50 billion in assets under management.[vi] While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer both Core and Commodity funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $600 billion in assets under management across 19 countries worldwide.[vii] Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $119bn in assets under management.[viii]
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Mirae Asset shines in US ETF market
It has been five years since Mirae Asset Global Investments acquired Global X, its subsidiary managing ETFs in the U.S. Global X, which is a rising star in the U.S. market, has grown into a leader in the thematic growth ETF market, operating assets around six times bigger compared to when it was acquired by Mirae Asset.
In February 2018, Mirae Asset Global Investments acquired Global X for $488 million (520 billion won). The aim was to expand Mirae Asset's global ETF network by challenging the U.S. market, which takes up more than 70 percent of the global ETF market.
Mirae Asset Global Investments focused especially on the growth potential of Global X at the time of the acquisition. It determined that Global X, equipped with an innovative and differentiated product lineup under the catchphrase "Beyond Ordinary ETFs," had enough momentum for growth.
"We decided to invest in Global X as it is a company with a competitive edge, just like Mirae Asset 15 years ago," Mirae Asset Financial Group Chairman Park Hyun-joo said back then. He added that the deal became the cornerstone of Mirae Asset's global business plan.
Mirae Asset has shared its know-how with Global X, from product development to research and operations. The current status of Global X in the U.S. market is as high as it can be ― its assets under management (AUM) stand at 45 trillion won ― as of the end of last year, which is up six times more than what it had at the time of the acquisition. Its compound annual growth rate (CAGR) has been at 29.13 percent for the past five years, which compares favorably with the industry average of just 14.5 percent. The number of its ETS products also increased to 100 from 49, which became the foundation for the stable growth of AUM.
Now, Global X is leading the thematic growth ETF market in the U.S. It concentrated on searching for innovative themes in the ETF market, which had mostly been dominated by passive products such as ones based on market indices, and launched products comprising companies with high growth potentials. It also strengthened research ― with its own research team. Global X has been offering solutions based on products and industry information. It thereby took the initiative in the fast-changing U.S. market. It also satisfies the diverse needs of investors with a broad lineup of products other than thematic ETFs.
Global X is especially competitive in covered call ETFs. Its Nasdaq 100 Covered Call ETF achieved 8 trillion won in AUM last year, becoming one of the most popular products among Koreans investing in the U.S. market and paying back with a high dividend.
Last June, Mirae Asset Global Investments and Global X jointly acquired ETF Securities, an Australian ETF management firm. It is the first time for a local asset management firm to acquire an ETF management firm overseas with the money it earned abroad.
Mirae Asset plans to expand its global business, due to the synergy effect with Global X. It thus changed the names of ETF Securities to Global X Australia, and Mirae Asset Global Investments Brazil to Global X Brazil, as a way to enhance the brand value of Global X. It plans to diversify its business and expand to Southeast Asia and the Middle East, strengthening its foothold as a global financial group.
"The U.S. market is essential for any ETF management company to grow into a global player as it leads the ETF industry. We will concentrate our efforts to make a leap forward as a global player, maximizing synergy effects with Global X, which is expanding its presence in the U.S. market," a spokesperson for Mirae Asset Global Investments said.