Mirae Asset Global Investments announced on February 12 that the “Global X Physical Gold (GOLD AU)” ETF, the world’s first physical gold ETF, has surpassed $2.5 billion in net assets.
Managed by Global X Australia, a subsidiary of Mirae Asset Global Investments focusing on ETF management in Australia, the “Global X Physical Gold” ETF has seen significant growth. Originally launched in 2003 by ETF Securities, the predecessor of Global X Australia, it has garnered substantial interest from local investors, leading to its growth in net assets to $2.5 billion.
The “Global X Physical Gold” ETF is credited with expanding the base for gold investments not only in Australia but also in the global ETF market. Previously perceived as illiquid due to transportation and storage costs, gold has become more accessible for low-cost investment through its securitization, eliminating the need for physical storage. This has created an environment where anyone can conveniently invest in gold due to easier trading processes.
Gold experienced a stagnant period from the 1970s until the 2000s, when it began a significant upward trend. Recently, gold has been increasingly recognized as a risk hedge against uncertainty and a historically proven store of value, achieving new price highs and becoming more attractive as an investment.
Mirae Asset Global Investments offers various opportunities for gold investment in the global ETF market beyond just the “Global X Physical Gold.” Their offerings include a gold investment ETF employing a covered call strategy (“Global X Gold Yield”) and a gold mining companies ETF (“Global X Gold Producers”), providing a comprehensive lineup in markets like the USA, Canada, and India.
“With ongoing geopolitical tensions from the US-China trade war, gold is solidifying its status as a strategic asset alongside the dollar as a reserve currency,” said Kim Young-Hwan, Head of Innovation/Global Management Division at Mirae Asset Global Investments. “Mirae Asset will continue leveraging its expertise in operating diverse gold investment ETFs worldwide to offer new investment opportunities to global investors.”
Meanwhile, Global X Australia is regarded as a leader in the physical commodity ETF space locally. Aside from “Global X Physical Gold,” it meets diverse local investor needs through offerings like the “Global X Physical Silver,” investing in physical silver, and the “Global X Precious Metals Basket,” which includes gold, silver, palladium, and platinum.