Global X delivers US small caps exposure via new ETF

Global X ETFs has added to its suite of products with an Australia-first exchange traded fund (ETF) that tracks the Russell 2000 Capped Index, the Global X Russell 2000.

The ETF, listed under Australian Securities Exchange (ASX) ticker code RSSL, is the latest to join Global X’s line-up of research and analysis-backed ETFs, providing Australian investors with access to the areas of opportunity across US markets.

The release of the ETF follows after Global X analysis found that the Russell 2000 Capped Index outperformed the S&P 500 during Trump’s first presidential term, initially by two per cent (17 per cent vs 15 per cent) in the first six months and by one per cent over 12 months (21 per cent vs 20 per cent).

“Small-cap equities often outperform during economic recoveries and periods of financial easing. Combined with Trump’s pro-growth and pro-business stance, US small-caps are positioned to benefit significantly and offer long-term growth opportunities,” Senior Investment Strategist, Billy Leung, said.

“With projected GDP growth of 2.1% in 2025, the US is set to outpace other developed economies and is leading the charge globally.

“By indexing the Russell 2000, RSSL gives investors exposure they might be short in, offering a diversification premium across small-cap growth and mega-cap innovation.”

RSSL joins Global X’s other ETFs, FANG and U100, in offering exposure to the US’ top tech giants including Amazon, Alphabet, Meta and Nvidia, as well as broader ‘tech-driven innovation’.