Is QUAL a good ETF?
QUAL is the VanEck MSCI International Quality ETF from VanEck. It tracks the MSCI World ex Australia Quality Index. We classify it under Intl, Factor, and Quality. With about $8.56 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2014-10-29 (almost 12 years ago).
On a total-return basis, QUAL has delivered 14.97% a year over 10 years (ranked 7th of 108 ETFs we track), 11.21% a year over 5 years (ranked 41st of 188 ETFs we track), 14.81% a year over 3 years (ranked 62nd of 226 ETFs we track), and 9.21% a year over 1 year (ranked 138th of 308 ETFs we track). Its strongest showing is over 10 years, where it sits in the top 6% of all ETFs we track.
The management fee of 0.4% is reasonable. That's cheaper than the typical 0.49% for similar ETFs. If cost is your priority, IVV (0.04%), GARP (0.3%), and QLTY (0.35%) cover similar ground for less. It pays a healthy 3.52% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 11.91%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 1.05 is strong — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Top-6% returns over 10 years (7th of 108 ETFs we track).
- Low-cost: a 0.4% management fee keeps more of the return in your pocket.
- Pays a useful 3.52% income yield.
- Strong risk-adjusted returns (10-year Sharpe ratio 1.05).
Things to watch
- Cheaper alternatives exist: IVV, GARP, and QLTY.
What QUAL'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.