Is QLTY a good ETF?
QLTY is the BetaShares Global Quality Leaders ETF from BetaShares. It tracks the iSTOXX MUTB Global ex-Australia Quality Leaders 150 Index. We classify it under Intl, Factor, and Quality. With about $1.06 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2018-11-08 (about 8 years ago).
On a total-return basis, QLTY has delivered 9.8% a year over 5 years (ranked 60th of 189 ETFs we track), 15.45% a year over 3 years (ranked 78th of 236 ETFs we track), and 7.92% a year over 1 year (ranked 122nd of 318 ETFs we track).
The management fee of 0.35% is reasonable. That's cheaper than the typical 0.49% for similar ETFs. If cost is your priority, GARP (0.3%) cover similar ground for less. It pays a moderate 3.3% yield.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 12.73%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.54 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 20% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
Things to watch
- Cheaper alternatives exist: GARP.
What QLTY's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
Companies with strong balance sheets, stable earnings and high return on equity. A defensive-leaning factor that tends to compound steadily.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; can lag during sharp 'junk rallies' off market bottoms when the riskiest stocks surge.
- In a portfolio
- A reliable long-term core or tilt for investors who prize resilience and steady compounding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.