Global X ETFs has added a second Growth at a Reasonable Price (GARP) exchange traded fund (ETF) to its range of products which will focus on leading Australian stocks in the same manner its existing offering of this kind provides international equity exposure.
The Global X S&P Australia GARP ETF, trading under the Australian Securities Exchange (ASX) ticker GRPA, will track the S&P/ASX 200 GARP Index which selects 50 top Australian companies with consistent growth, reasonable valuations and strong earnings with a management fee of 0.25 per cent per annum.
“GRPA gives investors the opportunity to complement their existing broad Australian equity allocation with a targeted strategy that combines growth, value and quality – the essence of GARP investing,” Global X chief executive Alex Zaika explained.
“This ETF delivers a smarter, enhanced core option designed to help investors target companies with the potential to outperform over the long term.”
S&P Dow Jones Indices director of factors and dividends indices Jason Ye expressed his firm pleasure to be providing the underlying index for the new fund.
“This innovative index applies the GARP framework to the S&P/ASX 200 universe, focusing on growth opportunities while incorporating valuation and quality considerations in the index construction,” Ye said.
“The index aligns with the principles of GARP investing, empowering market participants with an innovative tool to navigate factor-based investing in the Australian market.”
The launch of GRPA comes a year after Global X launched the Global X S&P World Ex Australia GARP ETF (ASX code GARP), which has outperformed the broader global equities index returning 29.0 per cent compared to the MSCI World Index’s 20.7 per cent, and is the sixth new product from the manager this year.
