What is the QUAL ETF used for?
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
The QUAL ETF could be used by investors to gain exposure to international equities and diversify a portfolio that is biased to Australian companies.
Keep an eye on FUM
The VanEck QUAL ETF had $2845.38 million of money invested when we last pulled the monthly numbers. Given QUAL’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
VanEck charges investors a yearly management fee of 0.40% for the QUAL ETF. This means that if you invested $2,000 in QUAL for a full year, you could expect to pay management fees of around $8.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the QUAL ETF. Before doing anything, take a look at our VanEck QUAL report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
So how can you actually invest in the QUAL ETF? In the month of August 2023, you can buy the QUAL ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy QUAL for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
