Van Eck Australia announced today that Lonsec has upgraded its Market Vectors MSCI World ex Australia Quality ETF to “Recommended”.
Arian Neiron, Managing Director, Van Eck Australia said, “The Market Vectors MSCI World ex Australia Quality ETF (ASX code: QUAL) was the first strategic beta international equity ETF on ASX and it has generated a great deal of investor interest particularly from financial advisers, brokers and Self-Managed Superannuation Funds. This upgrade from Lonsec is a testament of the ETF’s ability to deliver on its investment objectives.”
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 tracks the MSCI World ex Australia Quality Index.
“Lonsec considers the fundamental underpinnings of the index to be sound and based on robust measures of company quality,” the report states.
Lonsec acknowledged the experience of MSCI as an index provider and highlighted the resources and capabilities of the issuer’s parent entity Van Eck Global based in New York, which has been managing ETFs since 2006. The company is “well resourced with all of the processes and systems required to meet the objectives of the ETFs offered,” the report states. Van Eck Global has offices around the world and manages approximately US$25 billion in investor assets as of 31 December, 2015.
“With a management fee of 0.40% per annum, all types of investors are attracted to QUAL’s easily understood and low cost investment strategy. QUAL was the first of its kind listed on the ASX. Strategic beta ETFs are now being used by a range of investors who are seeking alternate cost effective passive strategies,” Mr Neiron said.
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