NEW MVAU QUAL SQUARE

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VanEck Vectors MSCI World ex Australia Quality ETF QUAL

Fund description: VanEck Vectors MSCI World ex Australia Quality ETF (QUAL) invests in a diversified portfolio of quality international companies listed on exchanges in developed markets around the world (ex Australia).  The ETF seeks to track the performance of the MSCI World ex Australia Quality Index (M4CXMVIA) with net dividends reinvested, in Australian dollars, before taking into account fees, expenses and tax.

Index description: M4CXMVIA aims to capture the performance of quality stocks selected from the Parent Index, MSCI World ex Australia, by identifying companies with high quality scores based on three key fundamental factors: high return on equity; stable year-on-year earnings growth; and low financial leverage.

Management style: Replication

 as at 17-Jan-19

  • Exchange

    ASX
  • ASX code

    QUAL
  • Bloomberg index code

    M4CXMVIA
  • Index provider

    MSCI Inc.
  • NAV1

    $23.12
  • Units outstanding1

    19,382,434
  • Net assets1

    $448.1M
  • Number of holdings1

    299
  • Inception date2

    29-Oct-14
  • ASX commencement

    31-Oct-14
1As of the close of the previous trading day.
2The date the Fund was seeded prior to quotation on ASX.

as at 17-Jan-19

The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day.

Key points

Underlying Index
MSCI World ex Australia Quality Index (M4CXMVIA)

The Index comprises
A diversified group of quality growth stocks selected from the Parent Index (MSCI World ex Australia Index) by identifying stocks with high quality scores based on three fundamental factors:

  1. High return on equity;
  2. Stable annual earnings growth; and
  3. Low financial leverage.

 

Companies eligible for inclusion in Index

  1. The eligible universe of securities is defined as the securities in the Parent Index. See below for how the constituent stocks in the Parent Index are determined.
  2. A quality score is calculated for each security in the universe based on the following factors:
    • (a) return on equity;
    • (b) earnings variability; and
    • (c) debt to equity ratio.

If all three factors are available, a quality score for each security is calculated based on the average scores for the three factors. If (a) is negative or unavailable, the security is ineligible for inclusion. If (a) is positive and (b) or (c) is unavailable, the quality score is calculated based on the 2 available factors. If (a) is positive but both (b) and (c) are unavailable, the security is ineligible for inclusion.

  1. The securities are ranked by quality score and a fixed number required to cover 30% of the Market Capitalisation of the Parent Index rounded up to the nearest 25 are selected, with the aim of attaining a high exposure to the quality factors, while maintaining sufficient Market Capitalisation and number of securities coverage. Individual issuer weight is capped at 5%.

 

Parent Index - MSCI World ex Australia Index
The constituent stocks in the Parent Index are determined by applying three key criteria:

  1. Minimum Free Float Market Capitalisation;
  2. Liquidity; and
  3. Minimum shares outstanding for purchase by international investors.

 

Securities eligible for inclusion in the Parent Index include all listed equity securities. Mutual funds, ETFs, equity derivatives and limited partnerships and most investment trusts are not eligible for inclusion in the Parent Index. Preferred shares that exhibit characteristics of equity securities are generally eligible.

 

Index provider
MSCI Inc. MSCI is not a related entity of VanEck Investments Limited.

QUAL is indexed to a MSCI index. QUAL is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to QUAL or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and QUAL.

Index profile  

  • Bloomberg index code

    M4CXMVIA
  • Base date

    30-Nov-94
  • Rebalance frequency

    Semi-annual

Top ten index constituents (%) as at 31-Dec-18

Total constituents: 299
Constituent name
TIcker
Weightings (%)
MICROSOFT CORP
MSFT US
5.17
APPLE INC
AAPL US
4.62
FACEBOOK INC-A
FB US
3.11
JOHNSON & JOHNSON
JNJ US
2.99
ALPHABET INC-CL C
GOOG US
2.71
ALPHABET INC-CL A
GOOGL US
2.59
VISA INC-CLASS A SHARES
V US
2.57
ROCHE HOLDING AG-GENUSSCHEIN
ROG VX
2.14
INTEL CORP
INTC US
2.08
MASTERCARD INC-CLASS A
MA US
2.06
Top ten total (%) 30.04
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Dec-18

  • Country

    Weightings (%)
  • UNITED STATES

    71.8
  • UNITED KINGDOM

    7.7
  • SWITZERLAND

    5.5
  • JAPAN

    3.2
  • FRANCE

    1.9
  • DENMARK

    1.7
  • NETHERLANDS

    1.6
  • GERMANY

    1.5
  • HONG KONG

    1.5
  • CANADA

    0.9
  • SPAIN

    0.6
  • SWEDEN

    0.6
  • FINLAND

    0.5
  • ITALY

    0.2
  • ISRAEL

    0.1
  • IRELAND

    0.1
  • SINGAPORE

    0.1
  • NEW ZEALAND

    0.1
  • BELGIUM

    0.0
  • PORTUGAL

    0.0
  • CHINA

    0.0
  • Total

    99.6

Index sector weightings (%) as at 31-Dec-18

  • Sector

    Weightings (%)
  • Pharmaceuticals

    10.8
  • IT Services

    8.9
  • Interactive Media & Services

    8.4
  • Software

    8.0
  • Semiconductors & Semiconductor Equipment

    6.0
  • Computers & Peripherals

    4.8
  • Textiles, Apparel & Luxury Goods

    3.5
  • Personal Products

    2.8
  • Specialty Retail

    2.7
  • Biotechnology

    2.7
  • Aerospace & Defense

    2.6
  • Hotels, Restaurants & Leisure

    2.4
  • Food Products

    2.3
  • Household Products

    2.3
  • Industrial Conglomerates

    2.1
  • Communications Equipment

    2.0
  • Health Care Providers & Services

    2.0
  • Insurance

    2.0
  • Health Care Equipment & Supplies

    1.8
  • Capital Markets

    1.7
  • Machinery

    1.7
  • Road & Rail

    1.6
  • Chemicals

    1.6
  • Tobacco

    1.6
  • Entertainment

    1.5
  • Professional Services

    1.4
  • Beverages

    1.1
  • Food & Staples Retailing

    1.0
  • Internet & Catalog Retail

    0.9
  • Electronic Equipment, Instruments & Components

    0.8
  • Auto Components

    0.7
  • Multiline Retail

    0.7
  • Trading Companies & Distributors

    0.6
  • Electrical Equipment

    0.6
  • Metals & Mining

    0.5
  • Air Freight & Logistics

    0.5
  • Household Durables

    0.5
  • Media

    0.4
  • Wireless Telecommunication Services

    0.3
  • Equity Real Estate Investment

    0.3
  • Life Sciences Tools & Services

    0.3
  • Diversified Telecommunication Services

    0.3
  • Building Products

    0.2
  • Health Care Technology

    0.2
  • Commercial Services & Supplies

    0.2
  • Leisure Equipment & Products

    0.1
  • Automobiles

    0.1
  • Airlines

    0.1
  • Real Estate Management & Development

    0.1
  • Marine

    0.1
  • Paper & Forest Products

    0.1
  • Containers & Packaging

    0.1
  • Construction & Engineering

    0.0
  • Transportation Infrastructure

    0.0
  • Total

    100.0

Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.