Investment Feed Insights #9

In this episode of Ensombl Advice Australia, Neil Rogan speaks with Alex Eicher, CEO of GlobalX ETFs in Australia, to analyze investor behavior during a period of heightened geopolitical tension in the Middle East, particularly in March and April 2026. Despite market volatility and inflation concerns, Australian ETF markets saw record-breaking activity, with $5.5 billion in net inflows and over 2 million trades executed—surpassing previous records. Contrary to expectations, there were no mass redemptions; instead, retail investors, financial advisors, and managed account platforms drove strong flows. Notably, Australian equities saw a record $1.5 billion in inflows, while ex-US equities, particularly Europe and Japan, also attracted significant capital. Investors rotated out of US tech and global corporate bonds, while showing contrarian interest in Australian tech and crypto ETFs—unlike global trends. Gold, traditionally a safe haven, saw weak inflows despite uncertainty, as fast-money traders exited, leaving behind long-term investors. The episode also introduces the 'halo trade'—a shift from software-as-a-service to critical infrastructure like data centers, energy grids, and transportation—driven by AI’s growing energy demands. This infrastructure-focused allocation is emerging as a key theme in investor strategy. Key takeaways include: 1) Australian investors are increasingly favoring domestic equities and infrastructure over global tech, 2) Gold remains a long-term diversifier but is vulnerable to short-term speculative flows, 3) The 'halo trade' in AI infrastructure is gaining momentum, offering exposure to energy, materials, and critical systems, 4) Contrarian flows into Australian crypto and tech ETFs suggest local investors are less influenced by global sentiment, and 5) Market stability during stress underscores the resilience of Australia’s ETF ecosystem. The episode concludes with a teaser for deeper exploration of the halo trade in a future episode.