We recently published a list of 12 Best Global ETFs to Buy. In this article, we are going to take a look at where iShares Global Equity Factor ETF (NYSE:GLOF) stands against other best global ETFs.
The ETF industry experienced remarkable growth in 2024, with global assets under management (AUM) reaching $14.8 trillion by the fourth quarter. While strong equity market performance contributed to this increase, record-breaking net inflows of $1.88 trillion were the primary driver. This growth was fueled by innovation from ETF and ETP providers, along with increasing investor adoption across different markets, investment styles, and investor types. The factors that have supported the industry’s expansion over the past 30 years, such as transparency, competitive fees, liquidity, and tax benefits in regions like the US, Ireland, and Luxembourg, continue to attract capital.
Europe played a significant role in ETF growth, with AUM nearing $2.3 trillion by the end of 2024, boosted by the rise of online retail savings accounts, as reported by Ernst & Young. European ETFs expanded at a faster pace than the US market, reflecting their smaller share of registered funds at around 12% compared to approximately 25% in the US. The United States remained a major force in global ETF growth, surpassing $10 trillion in AUM by year-end. Other key markets, including Canada, Japan, Australia, Korea, and Taiwan, also saw steady expansion. Active ETFs were largely popular, accounting for a growing share of the European ETF market and representing 8% of US ETF AUM. In the US, active ETFs drove nearly half of all net inflows in 2024.
Institutions heavily sold equities toward the end of 2024, while capital continued to flow into index funds, ETFs, and passive investment strategies. In December, institutional investors sold a net $50.2 billion in equities, a nearly 50% increase from November, making it the highest monthly sell-off of the year, according to S&P Global Market Intelligence. Thomas McNamara, director of issuer solutions at S&P Global Market Intelligence, commented:
“This selling activity intensified toward the year’s end, highlighting 2024 as a pivotal year for index investing. As stock pickers continued to reduce their allocations to individual securities, the post-election market rally provided further motivation for broad-based investment strategies.”
At the same time, index funds and ETFs remained net buyers, purchasing $25.89 billion in stocks in December 2024. Though lower than November’s $43.21 billion, the figure remained close to the 12-month average of $24.44 billion. Going into 2025, institutional selling is expected to persist, while index funds and ETFs are likely to continue buying. A shift back to active institutional management appears unlikely unless market conditions change.
Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein, highlighted key trends shaping the ETF market in 2025. Growth is accelerating worldwide, with the US active ETF market expected to surpass $3 trillion in the next three years. Investors are increasingly using ETFs for both strategic and tactical portfolio adjustments, particularly in response to market shifts. Active ETFs are a major driver of this growth, expanding beyond fixed-income products into equities, enhanced income strategies, and alternative investments. Regulatory changes in markets are also facilitating their adoption. Meanwhile, passive ETFs continue to grow steadily, having long been a dominant force in the industry. The removal of barriers in certain markets is expected to unlock further demand for active ETFs. Additionally, the rising adoption of model portfolios reinforces ETFs, both active and passive, as efficient investment tools, because investors recognize their advantages over mutual funds and separately managed accounts.
iShares Global Equity Factor ETF (GLOF): Among The Best Global ETFs To Buy
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We curated our list of the best global ETFs by choosing consensus picks from multiple credible websites. These funds offer exposure to a basket of global/international stocks. We have mentioned the 5-year share price performance of each ETF as of March 21, 2025, ranking the list in ascending order of the share price performance. Additionally, we discuss the top holdings of these ETFs to give investors deeper insights. Hedge fund sentiment from Insider Monkey’s Q4 2024 database for each holding is also included.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
5-Year Share Price Performance as of March 21: 103.55%
iShares Global Equity Factor ETF (NYSE:GLOF) aims to reflect the performance of the STOXX Global Equity Factor Index, which includes large and mid-cap stocks from developed and emerging markets with favorable exposure to specific investment factors. GLOF is among the best global ETFs. It launched on April 28, 2015. The fund has net assets of $105.2 million as of March 19, 2025, with a portfolio of 592 stocks. Its expense ratio stands at 0.2%.
Apple Inc. (NASDAQ:AAPL) is the largest holding of the iShares Global Equity Factor ETF (NYSE:GLOF). On February 24, the company announced its largest investment plan to date, committing over $500 billion to the US economy over the next four years. This initiative includes opening a state-of-the-art manufacturing facility in Houston, where Apple Inc. (NASDAQ:AAPL) and its partners will produce servers for Apple Intelligence – a system designed to enhance writing, creativity, and productivity. Additionally, Apple will expand its US Advanced Manufacturing Fund, launch a training academy in Michigan for future manufacturers, and increase research and development efforts in areas such as silicon engineering.
Among the hedge funds tracked by Insider Monkey, 166 funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q4 2024, compared to 158 funds that invested in the stock in the preceding quarter. Warren Buffett’s Berkshire Hathaway held the largest position in the firm, with 300 million shares valued at $75.1 billion.
Overall, GLOF ranks 8th on our list of the best global ETFs. While we acknowledge the potential of GLOF to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GLOF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
