If you’re looking for an ASX ETF in the International shares sector, chances are, the VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the QUAL ETF
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
The QUAL ETF could be used by investors to gain exposure to international equities and diversify a portfolio that is biased to Australian companies.
QUAL meets our minimum market cap (FUM) criteria
The VanEck QUAL ETF had $2473.46 million of money invested when we last pulled the monthly numbers. Given QUAL’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
QUAL ETF fees explained
VanEck charges investors a yearly management fee of 0.40% for the QUAL ETF. This means that if you invested $2,000 in QUAL for a full year, you could expect to pay management fees of around $8.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in QUAL, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free VanEck QUAL report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
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