Five years have passed since Mirae Asset Global Investments acquired Global X, a U.S. ETF management company. Global X has grown exponentially from a rising star in the U.S. market to a leader in theme-type ETFs by increasing its assets under management by about six times during this period.
In February 2018, Mirae Asset Global Investments acquired Global X, an American ETF manager, for US$488 million. The plan was to expand Mirae Asset’s global ETF network by targeting the United States, which accounts for more than 70 percent of the global ETF market.
“We decided to invest in Global X because it was a competitive company like Mirae Asset 15 years ago,” Park Hyun-joo, chairman of Mirae Asset Group, said at the time. “The deal laid the groundwork for Mirae Asset’s global vision.”
After the acquisition, Mirae Asset Global Management shared know-how from product development to research and management with Global X. Now, five years later, Global X’s status in the U.S. market has significantly changed. At the time of the acquisition in 2018, Global X’s assets under management (AUM) stood at only 8 trillion won but as of the end of last year, it increased a whopping six times to 45 trillion won.
Now, Global X is being evaluated as a leader in launching thematic ETFs in the U.S. market. Global X focused on discovering innovative themes in the ETF market, where passive products are the majority, and launched products to invest in companies with high growth potential. In addition, it responded to the rapidly changing U.S. market by assembling its own research organization of 26 professionals and continuously providing product and industry information through research solutions.
In particular, Global X’s covered call products show outstanding competitiveness. Global X’s leading product, “Global X Nasdaq 100 Covered Call ETF (QYLD)” which tracks the NASDAQ 100 index in the United States, stood at eight trillion won as of the end of 2022.
Mirae Asset Global Investments and Global X have grown together over the past five years and are writing a new chapter in the history of the Korean financial market. In June of last year, Mirae Asset Global Investments and Global X jointly acquired ETF Securities, an Australian ETF management company.
Mirae Asset Global Investments plans to further expand its global business in the future by exerting synergies with Global X. To this end, it is also concentrating on enhancing the brand value of Global X by rebranding the name of its Australian subsidiary from ETF Securities to Global X Australia and that of its Brazilian subsidiary from Mirae Asset Global Investments Brazil to Global X Brazil.
“We will step up our efforts to become a management company representing the world going beyond Korea by generating synergies with Global X, which is expanding its influence over the U.S. market,” said Kim Bum-seok, head of public relations at Mirae Asset Global Investments.
