Arian Neiron
Van Eck Australia yesterday announced that its Market Vectors MSCI World ex Australia Quality ETF (QUAL) has been added to the BT SuperWrap and Asgard Super platforms.
In its first year, QUAL has returned 35.81% (after fees) to 29 October 2015, outperforming the standard international equity benchmark, MSCI World ex Australia Index by 4.42% and is continuing to attract strong support from platforms, financial advisers and brokers.
Arian Neiron, Managing Director, Van Eck Australia, said: “QUAL has generated a great deal of investor interest, well ahead of our expectations. The growth reflects strong demand by Australian investors for investment opportunities in quality international equities, a trend we believe will continue into 2016.”
QUAL gives investors instant access via a single ASX trade to a portfolio of 300 quality international companies which are included based on analysis by MSCI on three key fundamentals: high return on equity, stable year-on-year earnings growth and low financial leverage. QUAL seeks to track the MSCI World ex Australia Quality Index.
“By only including companies based on MSCI’s Quality fundamentals, this ETF gives investors a portfolio of international equities with historically strong performance and defensive characteristics. QUAL also gives Australian investors exposure to sectors where opportunities are limited if they only invest locally, such as information technology and healthcare. The ETF includes companies such as Google, Roche, Apple and Johnson and Johnson,” said Neiron.
“With a management fee of 0.40% per annum, advisers are attracted to QUAL’s easily understood and low cost investment strategy. QUAL was the first strategic beta international equity ETF listed on the ASX. Strategic beta is being used by a range of investors who are seeking to outperform the market at low fees,” Mr Neiron said.
