Global X has launched a new exchange-traded fund (ETF) focused on the top 100 United States large-cap high-growth technology stocks while offering a management fee of less than 25 basis points.
The ETF provider stated the Global X US 100 ETF (ASX: N100) will track the performance of the largest 100 companies listed on the Nasdaq exchange, excluding financials and real estate investment trusts, to provide exposure to a portfolio of stocks that are currently driving strong gains in the world’s largest share market.
Global X ETFs Australia chief executive Evan Metcalf said the N100 ETF would hold leading technology stocks, such as Nvidia, Google, Apple and Microsoft, which were heavily involved in developing artificial intelligence and growing faster than other companies and sectors.
“This is an important exposure for Australian investors, serving as a growth-focused core portfolio building block that provides sector and geographical diversification away from Australia,” Metcalf said.
“Reflecting on that, these companies have a proven history of high performance compared to other major markets.”
He said the Global X US 100 Index had easily outperformed Australia’s benchmark share index, returning 18.7 per cent a year over the five years to 15 August 2023, compared to 6.9 per cent a year for the S&P/ASX 200, and outstripped the US benchmark, the S&P 500, which had returned 14 per cent a year.
The management fee of 0.24 per cent a year was also the lowest in the market for an ETF of this nature and was the result of using the resources of the wider Mirae Asset Financial Group, which owns Global X, he said.
The new fund is the 34th listed ETF from Global X on the Australian Securities Exchange and adds to its pool of technology-focused funds, which includes the Global X Battery Tech & Lithium ETF (ACDC), Global X Semiconductor ETF (SEMI) and Global X Morningstar Global Technology ETF (TECH).
