Australians may rethink home bias as market faces ‘multiple headwinds’

20 May 2026

Australian investors may be starting to question whether the broader share market is still enough for long-term wealth creation, as the local share market continues to lag global peers and faces potential mounting economic headwinds.

After years of strong home bias among Australian investors, ETF flow data suggests many are now reassessing whether portfolios heavily concentrated in local banks and miners are leaving them exposed to slower growth and missing out on major global trends such as artificial intelligence.

April marked the strongest month for US ETF inflows from Australian investors since December 2024 and the third-largest monthly inflow on record. US equity ETFs have already attracted $1.5 billion in inflows year-to-date as investors increasingly look offshore for growth opportunities.

Meanwhile, the Australian share market has delivered lacklustre performance relative to global markets, underperforming by 9% so far this year, weighed down by concerns around economic growth, persistent inflation pressures, rising fiscal deficits, bank earnings downward revisions, and limited exposure to the companies driving the global AI boom.

Marc Jocum, Senior Product and Investment Strategist at Global X ETFs, said many Australians may be reconsidering whether a traditional Australian share allocation should solely suffice as the core foundation of their investment portfolios.

“For decades, Australians have naturally gravitated toward the local share market, but the reality is the Australian market is highly concentrated, and certain parts are increasingly becoming more disconnected from the areas driving global growth,” Mr Jocum said.

“The Australian share market remains dominated by banks and mining companies, while many of the world’s fastest growing and most innovative businesses are listed offshore,” he said.

“With the local market potentially facing multiple headwinds, investors are increasingly asking whether simply owning the broad Australian index is still the best long-term strategy.”

Mr Jocum said some investors may now be considering either increasing their global equity exposure or shifting toward more selective Australian strategies that focus on growth-oriented companies without paying an arm and a leg for it.

One alternative is the Global X S&P Australia GARP ETF (GRPA), which takes a more strategic approach to Australian equities by targeting 50 companies with a balance of growth and value characteristics.
Unlike traditional Australian index funds such as those tracking the S&P/ASX 200 Index, which are simply weighted on size rather than fundamentals, GRPA aims to identify higher-quality businesses with strong earnings growth potential while maintaining attractive valuations. GRPA has outperformed the broader Australian share market by over 4% so far in 2026 due to its tilt towards resource and energy companies, and importantly, being materially underweight the banks.

Mr Jocum said the broader shift occurring in investor portfolios reflects growing recognition that Australian investors may need a more diversified approach going forward.

“The conversation is no longer just about adding a small thematic investment on the side for a bit of spice,” he said.

“It’s becoming a much bigger question around whether Australians are too heavily concentrated in one market and whether their core portfolio is positioned for the future.

“Investors are increasingly looking for ways to access higher-quality growth opportunities, whether that’s through global equities or more selective Australian strategies that move beyond the limitations of the broad vanilla index.”

For All Media Queries

Please contact James Mitchell, Global X Australia | +61 413 619 034 | james.mitchell@globalxetfs.com.au

About Global X ETFs Australia

Global X ETFs Australia is a leading ETF provider with a growing range of cost-effective and innovation-led products which are built to help Australian investors achieve their investment outcomes by providing access to a successful pool of ETFs across thematics, income, commodities, digital assets and more. Global X Australia’s nuanced understanding of the local market is backed by international resources and expertise to deliver a beyond ordinary experience for all stakeholders.

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features almost 400 ETF strategies worldwide and over US$132 billion in assets under management¹. While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than US$754 billion in assets under management worldwide². Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over US$198 billion in assets under management.³

^{1. Assets under management as at November 2025, Global X
2 Assets under management as at September 2025, Mirae Asset Financial Group
3 Assets under management as at November 2025, Mirae Asset Global Investments}

Disclaimer

Issued by Global X Management (AUS) Limited (‘Global X’) (AFSL 466778, ACN 150 433 828). Global X Physical Gold (GOLD), Silver (ETPMAG), Platinum (ETPMPT), Palladium (ETPMPD) and Precious Metals Basket (ETPMPM) are issued by Global X Metal Securities Australia Limited, a corporate authorised representative (CAR No: 001274650) under Global X. This is general information only and not personal advice. This communication doesn't consider your personal circumstances or needs. Investors should consider whether these products are appropriate for them, obtain financial advice and read the product disclosure statement (PDS), prospectus (as applicable) and target market determination (TMD) before making investment decisions. All PDSs, prospectuses and TMDs are available on our website: www.globalxetfs.com.au. Investment in any products are subject to risks, including possible delays in repayment and loss of income and principal invested. Past performance is not a reliable indicator of future performance. This content may not be reproduced, distributed or published by any recipient for any purpose. Global X nor any of its affiliates make any warranty as to the accuracy of any data used or displayed in this communication or to the performance of any product.