The Vaneck MSCI International Quality ETF ( ASX:QUAL) has been a great investment for a number of years. Multi-Award-Winning too!
https://www.vaneck.com.au/etf/equity/qual/snapshot/
As the chart shows, not only has it appreciated in value it has also paid an annual dividend along the way.
ASX:QUAL gives exposure to “quality international companies listed on exchanges in developed markets around the world” excluding Australia.
How and what stocks are chosen?
Vaneck are happy to tell you how they select the stocks:
They then adjust their results based on the market cap weight in the parent index.
That’s the key. Big stocks that have been growing well. Hello FANG / Big 7!
Yep it’s all there in the weightings:
Switzerland and Netherlands … ok.
Top 8 holdings are all US based.
Performance
You can see the performance of these holdings here.
Generally speaking, I would say this portfolio has done well because of the market cap weighting factor more than the quality factor. Big stocks drive indexes and funds like this help to drive big stocks and vice versa. A classic virtuous circle.
No matter what you think about ETF’s, this has clearly been one of the best for almost 10 years now. For Australians it’s been a great way to gain exposure to some big themes that simply aren’t present on our market.
You can see why so many listed fund managers are in a structural decline. They can keep comparing their performance to low benchmarks and tell themselves this is appropriate but investors are smarter than that and are moving their money where they can get the best returns. They’re moving their money into ETF’s like ASX:QUAL which now has a market cap of nearly $4.5B.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.