Can the ISO and QUAL ETFs be part of an ASX ETF portfolio?

On the ASX, the iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) and VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) might be worth digging into in 2022.

What to know about the iShares ISO ETF

The iShares ISO ETF provides exposure to 200 small cap Australian shares. This is a low-cost way to access small Australian companies through a single fund.

According to our most recent data, the ISO ETF had $121.13 million of money invested. With ISO’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Australian shares sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.

Keep learning about the ISO ETF. Click here to access our free ETF review.

The VanEck QUAL ETF – key points

The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.

With our numbers for July 2022, QUAL’s FUM stood at $2845.38 million. Since the QUAL’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Quality factor sector should be able to scale well and become profitable for the ETF issuer.

A look at the QUAL ETF fee load?

VanEck, the ETF issuer, charges a yearly management fee of 0.4% for the QUAL ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $8.00.

This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.

Before rushing out and investing in the QUAL fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on QUAL.

So how can you actually invest the QUAL ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Dec 2022, with your free Pearler account you can buy the QUAL ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.

You can invest as little as $500 in the QUAL ETF to take-up this offer. Sounds pretty good, right? To invest in QUAL for $0 brokerage, simply click here to visit Pearler’s website and sign up.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report, and 24/7 access to the Rask community, for FREE by CLICKING HERE NOW or the button below.

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