Australians put a record $21 billion into ETFs last quarter, and the industry is now worth about $388 billion. A lot of that money is chasing two things: reliable income and protection from an uncertain world.
In this Meet the Manager interview I sat down with Marc Jocum, Senior ETF Strategist at Global X ETFs Australia, to talk about getting income without just buying the banks, how covered calls work, whether gold is still worth owning, and GARP: growth at a reasonable price. Each button jumps the video to that part of the conversation.
1. Who is Global X?
Global X was formerly ETF Securities (and before that ANZ ETFs). It launched the world’s first gold ETF, , and Marc says it holds about two-thirds market share in both commodities and thematic ETFs in Australia. It has 53 funds and over $17 billion under management, making it the fifth-largest index ETF issuer here.
Global X is owned by Mirae Asset, one of Korea’s largest investment firms and an early backer of Australia’s ETF industry. The Australian business runs independently but draws on Global X offices around the world.
2. Why ETFs are booming, and is it a bubble?
Marc sees three drivers: investors moving from high-cost to low-cost funds, advisers and model portfolios now using ETFs as core building blocks, and cheap digital platforms making them easy to buy. The newer shift is investors choosing which theme to back rather than which active manager.
The ASX’s latest investor study shows the number of ETF investors has roughly doubled since 2020 to almost 3 million. With property making up about 70% of household wealth, Marc expects more money to move into ETFs as housing becomes harder to afford.
Not in Marc’s view. ETFs are only about 7–8% of managed money in Australia and around 20% of trading volume. Active managers still do most of the trading.
“They’re tax efficient, they’re liquid, they’re tradable, they’re transparent. They pretty much tick all the boxes for investors.”Marc Jocum, Senior ETF Strategist, Global X
3. Income without just buying the banks
Income is back in fashion, and not only for retirees: younger investors want passive income to keep up with the cost of living. Marc points to a four-year dividend drought, with the market’s dividend yield falling from the mid-4% range to about 3.5%, although the August 2026 reporting season saw dividends rise around 13%. In Australia, more than half of share market returns have historically come from dividends.
4. High-dividend ETFs, and why CBA was left out
The risk with high-dividend ETFs is dividend traps: companies whose yield looks high only because the share price has fallen. Marc explained how tries to avoid them:
- It holds about 50 companies chosen on forecast dividend yield, not past yield.
- It removes the bottom 10% of weakest performers (a momentum filter).
- It has historically yielded about 1–2% more than the ASX 200.
The surprise: CBA isn’t in it. That wasn’t a stock pick. Under the index rules, CBA’s share price rose so far that its forecast yield fell below the cut-off, so it was treated more like a growth stock. It can come back in at a six-monthly rebalance. Marc said ZYAU had beaten the broader market by about 4% so far this year, helped by its tilt to materials and energy.
Compare more on our dividend and income ETFs list, and see how franking works in franking credits and ETFs.
5. Covered calls explained
Covered call ETFs have grown about tenfold in five years to around $5 billion, and Marc said last month was the best month for Australian covered call flows in about 12 years. A covered call ETF owns a basket of shares, such as the ASX 200, and sells call options over them for extra income.
You own a $1m house. Someone pays you a premium now for the right to buy it for $1.2m in 3 years.
You keep the house and the premium. That premium is the extra income.
You still have to sell at $1.2m. Your upside is capped.
You get three layers of income: dividends, franking credits and the option premium, which is why yields of around 8–9% are possible. Marc said covered calls on the Australian market have returned about the same as the ASX 200 over the last 20 years, with noticeably less risk.
When do covered calls work best?
Worst. Gains are capped, so it lags the index, as Global X’s US covered calls have.
Best. You collect the premium without missing much upside. Marc thinks this suits Australia.
Holds up better. The premium (often a couple of percent a quarter) cushions the fall.
That’s why Marc sees Australian covered calls like as a longer-term holding, while US versions such as and are more tactical: in strong US rallies they’ve lagged the index even with double-digit yields. Option premiums also rise when markets are volatile, so income tends to increase when markets are nervous.
Yield, franking and total return
AYLD holds the same 200 companies as an ASX 200 ETF, plus a line for the call options. It can still pass on franking credits if the shares are held “at risk” (the 45-day rule), though not at 100% franked. Marc’s most important point: the unit price may drift sideways or down over time (“NAV erosion”), so judge a covered call ETF on total return (price plus distributions), not price alone. He sees advisers using 10–25% covered calls alongside a broad ASX ETF like .
“There’s no free lunch when it comes to investing.”Marc Jocum, Senior ETF Strategist, Global X
6. The case for gold
Gold ETFs had a record quarter in Q3 2026 with just under $700 million of inflows, as Australians bought the dip after gold pulled back from above US$5,000 an ounce to around US$4,100. Marc’s case for gold:
- Central banks keep buying, and many want to move away from US debt after Russian reserves were frozen in 2022.
- Gold has started moving with real yields again: if rates fall, the cost of holding gold falls too.
- It’s a diversifier at a time when shares and bonds have been moving together.
Most Global X clients hold 2–5% in gold, and the largest holds 12–15%. Marc expects some short-term volatility but sees no reason gold can’t get closer to US$5,000 by next year. Browse every gold fund on our gold ETFs list.
7. The commodity super cycle and copper
Marc thinks we’re early in a commodity super cycle. The last one, in the 2000s, ran 8–9 years on China’s growth. This time supply is thinner and demand comes from long-term trends: AI data centres, electric vehicles, robotics and electrification.
Copper is the standout. It can take around 17 years to build a new copper mine, and AI data centres need a lot of it. Marc sees (copper miners) as the cleanest way to play it, and for broad commodities. See our critical minerals ETFs list too.
8. GARP: growth at a reasonable price
GARP isn’t new. Peter Lynch made it famous in the 1980s. The idea: buy companies that are growing, are high quality and aren’t too expensive. Global X packaged it into an index ETF, , with a hedged version and an Australian version .
Start with the leading global companies
Ranked on sales growth and earnings growth
High return on equity, low debt, sensible P/E
Rebalanced, so no single giant dominates
At the time of recording, Marc said the global GARP portfolio traded on about 18–19 times earnings versus the mid-20s for the broad market, was underweight the US and overweight Europe and Asia, and had only about a 30% overlap with the broad global index. The Australian version traded on about 14 times earnings and held no big banks.
Marc thinks GARP suits today’s market: investors know they need growth, but worry about how concentrated and expensive US markets have become. He noted GARP had lagged recently because it holds fewer of the big AI names.
Most investors use it as a satellite next to a global index ETF. Global X’s analysis suggests a 25–30% blend has improved risk-adjusted returns. If you’re new to that idea, see core and satellite investing and our earlier smart beta interview with VanEck.
9. What people misunderstand about ETFs
- Liquidity: an ETF that trades lightly can still be liquid, because market makers trade against the underlying shares.
- Not all ETFs are the same: many follow different rules, and some are active. The ETF is just the wrapper, so read the PDS and TMD.
It took about 20 years for Australian ETFs to reach their first $100 billion, three years for the next, and 18 months for the one after. Marc expects the next $100 billion in just over a year.
Every Global X ETF, sortable
Here’s the full Global X range on the ASX, from the income and commodity funds Marc discussed to its thematic ETFs. Sort by size, fee, asset class or 1-year return.
| ISMD Global X MSCI International Small and Mid Cap | International shares | 0.45% | $4m | – |
| MOON Global X Space Tech | International shares | 0.50% | $6m | – |
| GHRP Hedged Global X S&P World X Australia Garp Hedged | International shares | 0.33% | $2m | – |
| HMND Global X Humanoid Robotics | International shares | 0.57% | $6m | – |
| SLVM Global X Silver Miners. | International shares | 0.65% | $90m | – |
| J100 Global X Japan Topix 100 | International shares | 0.40% | $14m | – |
| GRPA Global X S&P Australia Garp | Australian shares | 0.25% | $3m | – |
| A300 Global X Australia 300 | Australian shares | 0.03% | $23m | +3.2% |
| DRGN Global X China Tech | International shares | 0.45% | $87m | -16.9% |
| AINF Global X Ai Infrastructure | International shares | 0.57% | $202m | +27.5% |
| GHLD Hedged Global X Gold Bullion Hedged | Commodities | 0.35% | $240m | +5.7% |
| RSSL Global X Russell 2000 | International shares | 0.18% | $25m | +9.9% |
| DTEC Global X Defence Tech | International shares | 0.50% | $112m | -17.5% |
| GARP Global X S&P World Ex Australia GARP | International shares | 0.30% | $132m | +5.6% |
| BANK Global X Australian BANK Credit | Australian bonds | 0.25% | $189m | +3.2% |
| FHNG Hedged Global X Fang+ Hedged | International shares | 0.38% | $155m | +16.2% |
| PAVE Global X Us Infrastructure Development | Property & infra | 0.47% | $40m | +7.2% |
| GXLD Global X Gold Bullion | Commodities | 0.15% | $766m | +1.9% |
| GXAI Global X Artificial Intelligence | International shares | 0.57% | $284m | +24.8% |
| BUGG Global X Cybersecurity | International shares | 0.47% | $25m | +20.4% |
| U100 Global X Us 100 | International shares | 0.18% | $107m | +12.8% |
| BCOM Complex Global X Bloomberg Commodity | Commodities | 0.60% | $150m | +22.4% |
| OZXX Global X Australia Ex Financials & Resources | Australian shares | 0.25% | $6m | -7.7% |
| USIG Hedged Global X Usd Corporate Bond Hedged | Global bonds | 0.30% | $3m | -3.5% |
| AYLD Complex Global X S&P/ASX 200 Covered Call | Australian shares | 0.60% | $125m | +7.9% |
| QYLD Complex Global X Nasdaq 100 Covered Call | International shares | 0.60% | $30m | +13.7% |
| UYLD Complex Global X S&P 500 Covered Call | International shares | 0.60% | $17m | +9.4% |
| ATOM Global X Uranium | International shares | 0.69% | $136m | -18.9% |
| WIRE Global X Copper Miners | International shares | 0.65% | $916m | +38.1% |
| GMTL Global X Rare Earth and Critical Metals | International shares | 0.69% | $12m | +17.2% |
| USHY Hedged Global X Usd High Yield Bond Hedged | Global bonds | 0.30% | $15m | +1.9% |
| USTB Hedged Global X Us Treasury Bond Hedged | Global bonds | 0.19% | $453m | -1.5% |
| EBTC TMX Global X 21Shares Bitcoin | Crypto | 0.45% | $165m | -31.2% |
| EETH TMX Global X 21Shares Ethereum | Crypto | 0.45% | $48m | -39.6% |
| FTEC TMX Global X Fintech & Blockchain | International shares | 0.69% | $4m | -19.9% |
| HGEN Global X Hydrogen | International shares | 0.69% | $46m | +55.0% |
| SEMI Global X Semiconductor | International shares | 0.45% | $1.1bn | +109.0% |
| LNAS Complex Global X Ultra Long Nasdaq 100 | International shares | 1.00% | $83m | +37.4% |
| SNAS Complex Global X Ultra Short Nasdaq 100 | International shares | 1.00% | $67m | -40.9% |
| FANG Global X FANG+ | International shares | 0.35% | $1.8bn | +10.6% |
| NDIA Global X India Nifty 50 | International shares | 0.69% | $166m | -17.2% |
| CURE Global X S&P Biotech | International shares | 0.45% | $50m | +50.9% |
| ACDC Global X Battery Tech & Lithium | International shares | 0.69% | $604m | +16.3% |
| ROBO Global X ROBO Global Robotics & Automation | International shares | 0.69% | $323m | +17.6% |
| TECH Global X Morningstar Global Technology | International shares | 0.45% | $343m | +16.1% |
| ESTX Global X Euro Stoxx 50 | International shares | 0.35% | $490m | +7.6% |
| ZYAU Global X S&P/ASX 200 High Dividend | Australian shares | 0.24% | $100m | +10.7% |
| ZYUS Global X S&P 500 High Yield Low Volatility | International shares | 0.35% | $70m | -1.7% |
| ETPMAG Global X Physical Silver | Commodities | 0.49% | $1.4bn | +22.0% |
| ETPMPD Global X Physical Palladium | Commodities | 0.49% | $17m | -10.1% |
| ETPMPM Global X Physical Precious Metal Basket | Commodities | 0.44% | $131m | +4.7% |
| ETPMPT Global X Physical Platinum | Commodities | 0.49% | $79m | -0.7% |
| GOLD Global X Physical GOLD | Commodities | 0.40% | $5.8bn | +1.7% |
See the list with more detail on our Global X ETFs page.
My key takeaways
- Income comes in different forms: high dividends, covered calls and bonds. Mixing them avoids leaning too hard on the banks.
- Covered calls trade upside for income. They suit sideways or falling markets more than strong bull runs. Always check total return.
- Gold and commodities can diversify a portfolio, but they swing a lot, so size them sensibly.
- Look under the hood. Two ETFs with similar names can hold very different things.
Watch the full interview on YouTube →
General information only. Views are Marc Jocum’s own and not a recommendation of any product. Figures, holdings and yields are as discussed at the time of recording and may have changed. Past performance is not a reliable indicator of future performance. Check the PDS and TMD before investing.
Frequently asked questions
What is a covered call ETF?
A covered call ETF owns a basket of shares and sells call options over them to earn extra income (the option premium). Investors get dividends, franking credits and the premium, but give up some upside if markets rise strongly.
When do covered call ETFs work best?
In sideways or falling markets. In a sideways market you collect the premium without missing much growth, and in a falling market the premium cushions the decline. In strong bull markets they usually lag because gains are capped.
Why isn’t CBA in ZYAU?
ZYAU follows index rules based on forecast dividend yield. CBA’s share price rose so far that its forecast yield fell below the cut-off, so the index removed it. It can be added back at a future six-monthly rebalance.
What is a GARP ETF?
GARP stands for growth at a reasonable price. A GARP ETF picks companies with strong sales and earnings growth, then screens for quality (high return on equity, low debt) and value (sensible price-to-earnings ratio).
How much gold do investors hold?
Marc Jocum said most Global X clients hold 2–5% of their portfolio in gold, with the largest holding 12–15%. The right amount depends on your goals and risk tolerance.