Is OZXX a good ETF?
OZXX is the Global X Australia Ex Financials & Resources ETF from Global X. We classify it under AU and Thematic. With about $7 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, OZXX has delivered 4.07% a year over 3 years (ranked 191st of 226 ETFs we track) and -10.25% a year over 1 year (ranked 290th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.25% is reasonable. That's cheaper than the typical 0.39% for similar ETFs. It pays a healthy 5.2% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 15% franking softens the blow for Australian residents.
Over the past 3 years its volatility has been moderate (annualised standard deviation around 11.92%), meaning the kind of swings you'd expect from a diversified equity fund. Its 3-year Sharpe ratio of 0.1 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.25% management fee keeps more of the return in your pocket.
- Pays a useful 5.2% income yield.
Things to watch
- Has lagged most peers over 1 year (290th of 308).
- Weak risk-adjusted returns (3-year Sharpe ratio 0.1).
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 15% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What OZXX's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.