Interview'US domestic demand-focused ETFs worth buying amid global trade uncertainties'

Pedro Palandrani, head of Global X’s Product Research & Development, speaks during an interview with The Korea Times at Mirae Asset Global Investments’ headquarters in central Seoul, April 24. Courtesy of Mirae Asset Global Investments

Blue-chip companies that primarily make profits in the United States are recommended when buying an exchange-traded fund (ETF), in order to mitigate risks from global economic uncertainties heightened by the widening trade war.

At the same time, companies that are highly competitive in the global artificial intelligence (AI) race are also worthy in the ETF market even if they are from outside the U.S., namely China.

Pedro Palandrani, head of Global X's Product Research & Development, made the recommendations as he provided a set of guidelines for leveraging opportunities in the U.S. ETF market amid a challenging investment environment.

An ETF is a collection of securities, such as stocks or bonds, that trade on an exchange like a regular stock.

Based in New York, Global X is one of 13 overseas ETF subsidiaries of Mirae Asset Global Investments. Others are found in Australia, Canada, Hong Kong, India and Japan, among other locations.

“We wake up and there is new news around trade policies, and given that uncertainty in the geopolitical environment, we’re finding clients who are micro-targeted and micro-precise rather than investing broadly,” Palandrani said during an interview with The Korea Times at Mirae Asset Global Investments’ headquarters in central Seoul, April 24.

“These clients focus on very specific ideas that would allow them to not eliminate risk but manage risk within a portfolio, and that’s what we’re finding on the global level.”

The guidelines feature a list of recommended products among Global X’s lineup of more than 90 ETFs.

Palandrani promoted Global X’s investment knowhow and skills, as he visited Korea last month to meet client firms that are also connected with Mirae Asset Global Investments. For privacy reasons, he did not elaborate on which firms.

“We support our clients with ETFs that they know very well and have invested in for years, as well as presenting them with new opportunities and newer ETFs that we have brought to market,” he said.

Employees of Global X, a subsidiary of Mirae Asset Global Investments, pose in front of the New York Stock Exchange in February 2024. Courtesy of Mirae Asset Global Investments

Global X CEO Ryan O'Connor rings a bell as the firm's executives and other employees applaud during a ceremony to mark the company exceeding $50 billion in assets under management (AUM) in July 2024. Courtesy of Mirae Asset Global Investments

4 ETF strategies

The guidelines consist of four strategies, including taking advantage of volatility and keeping tracking of companies in innovative and high-demand sectors.

The recommendation for U.S. domestic business-oriented firms was made as more than 40 percent of S&P 500 revenue comes from international markets, according to Palandrani.

S&P 500 is an index tracking the performance of 500 leading companies listed on the U.S. stock exchange.

“The rate suggests substantial foreign exposure can become a liability during periods of trade friction, while companies that make most of profits within the U.S. offer a natural buffer against tariff complications, currency headwinds and global supply chain disruptions,” he said.

He underlined that investment in U.S. domestic business-oriented firms is “not about abandoning international exposure entirely, but rather being deliberate about where that exposure comes from.”

The corresponding products are the Global X S&P 500 U.S. Revenue Leaders ETF (EGLE) and the Global X S&P 500 U.S. Market Leaders Top 50 ETF (FLAG).

Palandrani explained that investment in global AI companies is for “balanced global positioning,” noting that “global diversification remains a foundational principle of portfolio construction, particularly when considering thematic investing where innovation knows no borders."

He added, “While understanding and optimizing domestic exposure is crucial, investors should maintain thoughtfully selected international positions.”

The technological advancement in China specifically deserves attention, as evidenced by DeepSeek’s breakthrough.

Under the circumstances, the Global X Artificial Intelligence & Technology ETF (AIQ) takes a global balanced approach by including leading Chinese AI leaders alongside U.S. and global counterparts, Palandrani said.

Global X challenges most investors’ view of volatility purely as risk. Rather, it sees volatility actually creating specific opportunities that were not possible in calmer markets.

“The mechanism is straightforward — higher market volatility typically leads to higher option premiums, potentially increasing income generation,” Palandrani said.

He highlighted the Global X Nasdaq 100 Covered Call ETF (QYLD) and the Global X S&P 500 Covered Call ETF (XYLD), which are developed using an income and hedging strategy called a covered call.

Palandrani underlined that “innovation continues regardless of market sentiment,” and highlighted defense technology, U.S. electrification and data centers as promising. Each is associated with an increase in global military spending, higher U.S. electricity demand from the energy-intensive AI sector and increased need to process AI-relevant data.

The featured products included the Global X Defense Technology ETF (SHLD), the Global X U.S. Electrification ETF (ZAP) and the Global X Data Center & Digital Infrastructure ETF (DTCR).

CEOs, executives and other experts from Mirae Asset Global Investments' ETF market operations pose during the ETF Rally 2025 gathering at a hotel in Hawaii, February this year. Courtesy of Mirae Asset Global Investments

Asked whether Global X’s investment themes can be applicable for Mirae Asset Global Investments’ other overseas subsidiaries, he said, “Those strategies fit for global investors” in general although each market has its unique characteristics.

Palandrani especially found ETF Rally as a vital platform. It is a gathering hosted by Mirae Asset Global Investments that brings together CEOs, executives and other ETF experts from the firm as well as its subsidiaries to exchange innovative ideas as well as to create meaningful synergies.

“We have constant calls with other product departments across different geographies, and we definitely spend a lot of time working together with all affiliated parties,” he said.

Mirae Asset Global Investments’ global ETF platform is ranked among the world’s 12 largest businesses.

Its assets under management (AUM) amounted to 212 trillion won ($147.34 billion) as of March this year.

AUM refers to the total market value of the securities a financial institution manages on behalf of its clients.

The 212 trillion won was larger than the entire ETF market in Korea, which was valued at 186 trillion won in the same month.

Global X was founded in 2008, and has since been recognized for offering differentiated and innovative products.

It surpassed $50 billion in its AUM last year, marking a more than five-fold increase after it was acquired by Mirae Asset Global Investments in 2018.