Company Interview / How to gain exposure to the Russell 2000

Key points:

Emphasis on US small to mid-cap opportunities for Aussie investorsRussell 2000 index driven by pro-growth policies, offering diversificationUS economic growth seen as superior, providing opportunities beyond tech giants

Billy Leung from Global X ETFs highlights the potential of US small to mid-cap stocks. Billy emphasises that Australian investors may be too focused on US mega-cap tech firms, missing opportunities from sub-$10 billion market cap companies. He sees value in diversifying to smaller stocks as they could drive US market growth and provide resilience against global supply chain disruptions.

Billy points to the Russell 2000 index as a strong performer, with benefits from a lower interest rate environment and pro-growth policies in the US. He argues for the ETF's ability to offer exposure to diverse sectors like healthcare, financials, and industrials, which are sensitive to domestic policies.

Highlighting the US's superior economic growth, Billy notes plans to enable Australian investors to explore the Russell 2000's potential for diversification, independent of Federal Reserve rate cuts. This makes the ETF an appealing option for those seeking exposure beyond tech giants.