Mirae Asset Global Investments and its subsidiary Global X ETFs have completed the acquisition of ETF Securities Australia. Photo courtesy of Mirae Asset Global Investments

Mirae Asset completes acquisition of ETF Securities

South Korea’s Mirae Asset Global Investments and its subsidiary Global X ETFs announced on June 15 that they had completed the acquisition of ETF Securities Australia.

With the takeover, Mirae Asset and Global X are expected to instantly beef up their presence in Australia, particularly in the fast-growing ETF market.

Brief for Exchange Trade Funds, ETFs are designed to track an index as compared to index funds. They are dubbed as low-risk investments because of their diversification, affordable management feeds, and high price visibility.

During the past several years, ETFs have gained traction across the globe, thanks to their outstanding performances. Mirae Asset and Global X have been one of the global leaders in the ETF scene.

The Australian ETF market is sized at around $92 billion as of the end of this April, compared to South Korea’s $57 billion (74 trillion won). It is the third-largest ETF market in the Asia-Pacific regions, just trailing China and Japan.

Running a total of 21 ETFs valued at about $3.3 billion, ETF Securities is the No. 7 player in Australia.

Global X CEO Luis Berruga said that the two outfits would join forces to provide Australian investors with first-of-their-kind ETFs across thematic, commodities, and digital assets.

“Over the past several years, Global X has worked to develop the infrastructure to be a leading ETF issuer, not just in the US, but in key ETF markets around the world,” he said.

“ETF Securities and Global X share an exploration mindset that has allowed both businesses to quickly adjust to the demands of a very fast industry, and we are thrilled to leverage our global capabilities to support ETF Securities’ next phase of growth.”