Australian ETF pioneer changes hands

Australia’s oldest independent exchange-traded-funds (ETF) provider ETF Securities has been snapped up for an undisclosed fee by South Korean-headquartered Mirae Asset Global Investments and its New York-based subsidiary Global X ETFs.

The Sydney-based open-ended fund trailblazer, founded by businessman and philanthropist Graham Tuckwell AO in 2002, runs Australia’s largest precious metals ETF platform and is synonymous with launching the world’s first physically-backed gold ETF in 2003.

The acquisition of ETF Securities, which holds $4.7 billion in assets under management (AUM), expands Mirae Asset Global Investments' Australian footprint, adding instant scale opportunities while also increasing its global ETF AUM to more than $85 billion.

With an extensive global ETF presence across the U.S., Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam, Mirae Asset Global Investments sees a complementary offering in ETF Securities' product lineup of thematic, commodities and digital assets strategies.

“We are incredibly excited to enter the Australian market and to meaningfully expand our global ETF footprint through the acquisition of ETF Securities’ inventive business,” Mirae Asset Global Investments CEO Byungsung Lee said.

“This acquisition underscores Mirae Asset’s continued commitment to maintaining industry-leading ETF businesses in key markets around the world and brings immediate scale to our operations in Australia.”

ETF Securities will benefit from accessing the services of one of the largest independent financial groups in Asia, including asset management, wealth management, investment banking, and life insurance products.

With more than 12,000 employees located in key developing and emerging markets, Mirae Asset Global Investments’ managed assets worldwide exceed $909 billion.

“For 20 years, ETF Securities has been a pioneer in the ETF industry. From the introduction of the world’s first physical gold ETF in 2003 to maintaining the largest precious metals ETF platform in Australia today and expanding its offering to include a growing range of thematic and digital assets products, I’m exceedingly proud of what the team has been able to accomplish,” ETF Securities founder and chairman Graham Tuckwell said.

“As true innovators in the ETF industry around the world, Mirae Asset and Global X are like-minded – undeniably sharing our Australian teams’ visionary mindset and commitment to client service.”

In 2018, ETF Securities sold its main ETF platform to US-based investment company WisdomTree for a total consideration of US$523 million ($757 million).

Founded in 2008, Global X ETFs is known for its thematic growth, income and international access ETFs but also offers core, commodity, and alpha funds to suit a wide range of investment objectives. Holding more than $58 billion in AUM, its product lineup features over 90 ETF strategies.

“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,” Global X CEO Luis Berruga 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. By joining forces, we are able to share resources to provide Australian investors with truly first-of-their-kind ETFs across thematic, commodities and digital assets.”