Global X ETFs has launched Australia’s first index-based exchange-traded fund (ETF) offering a ‘Growth at a Reasonable Price’ (GARP) strategy for global shares.
The Global X S&P World Ex-Australia GARP ETF (ASX code: GARP) tracks the S&P World ex Australia GARP Index, comprising approximately 250 global companies, including Tesla, Apple, Meta, and Nvidia, and carries an annual management fee of 30 basis points.
“Our GARP ETF strikes a balance between growth and value, providing international exposure to market-leading companies without sacrificing quality,” Global X product and investment strategist Marc Jocum said.
“As some global share markets are trading above their historical averages, investors may seek out companies with robust earnings growth and solid financial strength that are more reasonably priced.”
According to the manager, the launch of GARP coincides with the popularity of factor-based ETFs among Australian investors. Currently, factor-based strategies manage approximately $28 billion across 65 locally listed funds, representing 13 per cent of the total ETF market.
“Our GARP strategy is particularly timely as it aligns with the growing trend of investors seeking diversified global portfolios amidst local market volatility,” Jocum added.
“By integrating growth and value metrics, with a quality overlay, GARP addresses the need for a core portfolio holding to handle various market cycles and has the potential to outperform the broader market.”
S&P Dow Jones Indices director of factors and thematics Jason Ye highlighted the appeal of the approach, which prioritises companies demonstrating consistent earnings and revenue growth, reasonable valuations, strong financial stability, and robust profitability.
“The S&P World Ex-Australia GARP Index serves as an innovative benchmark, providing market participants with a unique opportunity to assess the performance of growth companies with high-quality and value composite scores beyond the Australian market,” Ye explained.
GARP adds to Global X’s 40-strong line up of offerings, which now manages over $7.7 billion in assets, following the release of bank credit ETF and a hedged tech ETF in July.
