Global X cuts fees on in-demand US tech ETF

Exchange traded fund (ETF) specialist Global X has slashed fees on one of its most popular funds, which has seen a surge of interest following the election of Donald Trump to his second term as US President.

The Australian ETF trader has cut the management fee on its in-demand US 100 ETF (ASX: U100) by 60 basis points – down from 0.24% p.a. to 0.18% p.a. today.

The U100 fund tracks the performance of the 100 largest US technology companies listed on either the NASDAQ or NYSE, promising exposure to sectors “with high growth potential”.

Among the U100’s most high-profile holdings include Apple, Microsoft, Nvidia, Meta, Alphabet and Salesforce, as well as a “range of digital juggernauts” expected to deliver outperformance.

In the year to 11 February 2025, the fund has returned 29.4% to investors, and 7.26% over the previous three months.

The U100’s management fees are among the lowest on offer from Global X, notably below other popular EFTs, Physical Gold (ASX: GOLD, 0.40%), the FANG+ (ASX: FANG, 0.35%), the US Treasury Bond ETF (Currency Hedged) (ASX: USTB, 0.19%), and the Morningstar Global Technology ETF (ASX: TECH, 0.45%).

According to Global X, Australian investors have been quick to embrace US stocks, with around $2.3 billion allocated to Australian-listed ETFs tracking the US market since Trump’s election victory in early November 2024 (and up to end 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,” said Global X senior investment strategist Billy Leung.

By contrast, only $50 million flowed into Australian-listed US equity ETFs following Trump’s first election victory in 2016, Leung said, noting, however, 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 said.

The second Trump administration has notably brought many of the country’s highest profile bigtech leaders closer to the seat of power, with X (formerly Twitter) owner and Tesla CEO Elon Musk directly appointed by Trump to head up the quasi-governmental Department of Government Efficiency (DOGE) agency.

According to Global X, US equities “led the way” in the recent global ETF boom (the “star performer” of 2024), with US equity ETFs attracting a record $5 billion in net flows, double the previous high set in 2021.

Leung said he hoped the fee drop on the U100 would help investors further “leverage the boom in US stock markets”.

Global X Australia has also announced it has reached “a fresh milestone” in assets under management, surpassing $9 billion in January 2025.

The Australian arm of the global firm, launched in 2022 after its acquisition of ETF Securities (an Australian ETF pioneer founded in 2003) expects it will hold around $11 billion in AUM by year’s end.