A global small cap ETF or international small companies ETF invests in quality small companies listed across international markets.

QSML is an international small companies ETF that gives Australian investors exposure to a diversified international portfolio of quality small companies in a single ASX trade, helping investors look beyond the Australian market and broaden their small companies exposure globally.

QSML, a global small cap ETF with a quality focus, tracks the MSCI World ex Australia Small Cap Quality 150 Index. MSCI scores quality using three fundamental measures: high return on equity, earnings variability or stability, and debt-to-equity ratio. The index starts with the MSCI World ex Australia Small Cap Index, ranks companies by quality score, and then selects the top 150 companies by quality weight. The final portfolio is weighted with a quality tilt and capped so no company exceeds 5% at rebalance.

Read more about quality international small companies.

QSML, an international small companies ETF with a quality focus, differs from standard global small-cap ETFs by applying a quality screen to the small-cap universe. Rather than buying a broad market-cap weighted basket of international small companies, QSML targets companies with high return on equity, stable earnings and low financial leverage. This quality focus aims to give investors exposure to international small companies with stronger fundamentals, while remaining diversified across countries, sectors and companies.

Investors looking to invest in an international small companies ETF may consider global small companies because they provide exposure to businesses earlier in their growth cycle across a much wider opportunity set than Australia alone.

A global small cap ETF like QSML can broaden diversification across economies, sectors and currencies, and also potentially provide resilience and growth potential during times of volatility.

QSML’s focus on quality small companies may appeal to investors seeking long-term capital growth from international small companies with stronger fundamentals.

Investing in a diversified portfolio of international small companies via a global small cap ETF provides access to a broader set of industries, countries, currencies and economic drivers. Australian small-caps can be more concentrated in domestic sectors and the local business cycle.

An international small companies ETF such as QSML excludes Australian companies and can complement an Australian small-cap allocation by expanding the opportunity set offshore.

As a global small cap ETF, QSML invests in international developed markets outside Australia and is diversified across countries, sectors and companies. Current holdings include companies listed in markets such as the United States, Japan, Canada, the United Kingdom and Europe, with exposure across industrials, financials, healthcare, information technology, consumer, materials and other sectors. Example companies held by QSML include Sterling Infrastructure Inc, Woodward Inc and ITT Inc. Allocations change as the index rebalances.

View QSML's latest holdings and allocations.

No. QSML, an international small companies ETF, tracks the MSCI World ex Australia Small Cap Quality 150 Index, meaning Australian companies are excluded from the eligible universe. The fund invests in international developed market small-cap quality growth companies outside Australia. Investors seeking domestic exposure may consider Australian small companies ETFs such as MVS, while QSML can provide complementary global small cap ETF exposure.