As global demand for safe-haven gold and alternative assets such as cryptocurrencies continues to surge, Mirae Asset Global Investments’ physical gold exchange-traded fund, or ETF, is drawing increased interest in the Australian market.
Global X Australia -- formerly called ETF Securities and acquired by Mirae Asset in 2022 -- launched the world’s first physical gold ETF, Global X Physical Gold, in 2003. As of Nov. 20, the fund’s net assets stood at $5.97 billion.
The firm is credited with popularizing gold investing by guaranteeing investors direct ownership of the underlying bullion while eliminating the logistical hurdles associated with transporting and storing physical gold.
To offer investors a lower-cost option while maintaining the same physical holding structure, the firm introduced Global X Gold Bullion in April 2024. The ETF has reached $455 million in assets in just over 18 months, the company said.
Its currency-hedged sister product, Global X Gold Bullion Currency Hedged, launched in March, is seeing steady appetite from institutional and superannuation investors seeking protection against foreign-exchange volatility.
Global X Australia also operates the country’s only physical silver ETF, Global X Physical Silver, whose net assets have tripled this year on the back of rising industrial demand. The company further expanded into digital assets with Global X 21Shares Bitcoin and Global X 21Shares Ethereum -- spot ETFs introduced in May 2022.
“By unifying our overseas subsidiaries under the Global X brand, our Australian operations are strengthening competitiveness in strategic asset products such as gold, silver and digital assets,” a Mirae Asset Global Investments official said. “We will continue to leverage our expertise across our global ETF network.”
According to the global ETF research firm ETFGI, Australia’s ETF market reached 283 trillion won ($193 billion) as of the end of September, comparable to South Korea’s 268 trillion won market, making Australia the fourth-largest ETF market in the Asia-Pacific region after China, Japan and Taiwan.
Mirae Asset has more than tripled the assets managed by its Australian unit in the three years since the acquisition, with global net assets totaling 279 trillion won as of the end of October across South Korea, the United States and Australia.
andreahaneu@heraldcorp.com
