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Global X launches ETF in Australia tracking Solactive Australia ex Financials Materials and Energy Capped Index


Solactive has announced another collaboration with Global X in Australia, designed to provide the asset manager with the Solactive Australia ex Financials Materials and Energy Capped Index, which serves as underlying for the new Global X Australia ex Financials & Resources ETF. 

Solactive writes that, traditionally, amongst the top 200 largest listed companies on the ASX, the most represented industries have been financial services, basic materials, and energy, with an average combined weight of almost 50 per cent. The Solactive Australia ex Financials Materials and Energy Capped Index excludes these three sectors from its selection in order to provide greater exposure to relatively smaller companies with potentially higher growth perspectives. Accordingly, the new Global X ETF provides investors with a new solution to gain a different kind of market exposure with greater focus on other important areas of the Australian economy, such as consumption, healthcare, or technology.  

The Solactive Australia ex Financials Materials and Energy Capped Index uses the Solactive GBS Australia All Cap Universe as starting point and excludes companies in the financial services (including REITs), basic materials, and energy sectors, arriving at a new representation of 100 Australian stocks. For additional diversification, preventing overconcentration of any individual security, a maximum cap of 10 per cent per security has been implemented.

Timo Pfeiffer, CMO of Solactive, writes: “At Solactive, we always strive to provide our partners with investment tools that align with their changing needs. We are very excited to collaborate with Global X again, and to assist them in filling a gap within the building blocks of more traditional core asset allocation, creating additional choice for Australian investors and beyond.” 

Evan Metcalf, CEO Australia at Global X says: “We believe that OZXX will deliver value to our clients and fill a gap in many Australian investors’ portfolios. This fund offers an effective solution particularly for Australian retirees and pre-retirees who generally hold a higher concentration of direct shares, as it allows them to either complete or diversify their portfolio in one simple trade. The management fee of just 0.25 per cent per annum will add to the appeal of this ETF, which will mark Global X’s 32nd ETF listed in Australia.”

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