Global X cuts fees on in-demand US tech ETF | Australian Markets

Change traded fund (ETF) specialist World X has slashed charges on one of its hottest funds, which has seen a surge of curiosity following the election of Donald Trump to his second time period as US President.

The Australian ETF trader has cut the management payment on its in-demand US 100 ETF (ASX: U100) by 60 foundation factors – down from 0.24% p.a. to 0.18% p.a. at this time.

The U100 fund tracks the efficiency of the 100 largest US technology corporations listed on both the NASDAQ or NYSE, promising publicity to sectors “with high growth potential”.

Among the many U100’s most high-profile holdings embrace Apple, Microsoft, Nvidia, Meta, Alphabet and Salesforce, in addition to a “range of digital juggernauts” anticipated to ship outperformance.

Within the yr to 11 February 2025, the fund has returned 29.4% to traders, and seven.26% over the earlier three months.

The U100’s management charges are among the many lowest on offer from World X, notably beneath different widespread EFTs, Bodily Gold (ASX: GOLD, 0.40%), the FANG+ (ASX: FANG, 0.35%), the US Treasury Bond ETF (Forex Hedged) (ASX: USTB, 0.19%), and the Morningstar World Know-how ETF (ASX: TECH, 0.45%).

In accordance with World X, Australian traders have been fast to embrace US shares, with round $2.3 billion allotted to Australian-listed ETFs monitoring the US market since Trump’s election victory in early November 2024 (and up to finish of January 2025).

“This marks the largest three-monthly net inflow into Australian-listed US equity ETFs on record, surpassing the previous high of $1.2 billion in October 2024,” stated World X senior investment strategist Billy Leung.

In contrast, solely $50 million flowed into Australian-listed US equity ETFs following Trump’s first election victory in 2016, Leung stated, noting, nevertheless, that this period “was characterised by a more risk-averse market response as investors assessed the impact of his victory”.

“Investors are keen to get exposure to the US market, especially after US equities experienced their best two-year run to 31 December 2024 in a quarter of a century. This momentum could run further in 2025, driven by US exceptionalism and the prospect of stronger earnings growth under a pro-markets Trump presidency,” Leung stated.

The second Trump administration has notably introduced many of the nation’s highest profile bigtech leaders nearer to the seat of energy, with X (previously Twitter) proprietor and Tesla CEO Elon Musk immediately appointed by Trump to move up the quasi-governmental Division of Authorities Effectivity (DOGE) company.

In accordance with World X, US equities “led the way” within the latest international ETF increase (the “star performer” of 2024), with US equity ETFs attracting a report $5 billion in internet flows, double the earlier high set in 2021.

Leung stated he hoped the payment drop on the U100 would help traders additional “leverage the boom in US stock markets”.

World X Australia has additionally introduced it has reached “a fresh milestone” in property beneath management, surpassing $9 billion in January 2025.

The Australian arm of the worldwide firm, launched in 2022 after its acquisition of ETF Securities (an Australian ETF pioneer based in 2003) expects it would maintain round $11 billion in AUM by yr’s finish.