New quality international small companies ETF

Invest in some of the highest quality international small companies

Quality investing has stood the test of time and forms the foundation of investing greats such as Benjamin Graham and Warren Buffett.

MSCI, the world’s largest index provider and creator of the first international index, created a Quality Index which employs three fundamental variables to capture the quality factor:

• Return on equity – which shows how effectively a company uses investments to generate earnings growth;
• Debt to equity – a measure of company leverage; and
• Earnings variability – how smooth earnings growth has been.

This approach has demonstrated robust risk/reward outcomes over multiple economic cycles. 

To date investors have only been able to access a portfolio of large and mid-cap companies that exhibit the Quality factor via the VanEck Vectors MSCI World ex Australia Quality ETF (QUAL).

We now offer investors an international small companies quality portfolio via a single trade on ASX. The VanEck Vectors MSCI International Small Companies Quality ETF trades under the ASX ticker ‘QSML’.

Many investors seek capital growth opportunities by investing in small companies such as those found in the S&P/ASX Small Ordinaries. The international opportunity is 20x bigger with approximately 4,000 listed international small companies making up the benchmark, MSCI World ex Australia Small Cap Index. However, not all of these companies are desirable from an investment perspective. QSML is an international equity smart beta strategy of approximately 150 international small companies selected by MSCI based on its quality factor.

The QSML opportunity

 150 of the world's highest quality small companies
Access a diversified portfolio containing some of the world's highest quality small companies based on key fundamentals including (i) high return on equity, (ii) earnings stability and (iii) low financial leverage.

 Outperformance potential in growing companies
Investments focusing on quality small companies have delivered outperformance over the long term relative to other global small companies benchmarks and also relative to large- and mid-cap benchmarks.  
  
 Diversified across countries, sectors and companies
Offering investors a portfolio of approximately 150 companies across a range of geographies, sectors and economies.


For more information on QSML, visit the product page.