Forum Topics QUAL QUAL Business Model/Strategy

Pinned straw:

Added 2 months ago

I just checked out the annual return since inception in October 2014 for this ETF, 15.84% per annum net of fees. Not too shabby if held over the typical index-based ETF’s.

I know past doesn’t equal future performance, but I feel like it’s pretty well placed to weather any market downturn after a quick glance at the companies. A little vulnerable if AI has a bubble pop due to highest holdings in Mag7, but that isn’t too different to many other index-based options. All said, their quality screener for the rest of the holdings seems to be doing a decent job of finding the resilient moated companies.

Does anyone have an ETF they would confidently say will outperform this one over the next 10-20 years? Apart from riskier thematics, this would be a serious contender for me.

Rocket6
Added 2 months ago

@Stumpy I hold Vanguard MSCI Index International Shares ETF (VGS).

QUAL tends to invest based on strategies and/or metrics, whereas VGS is more classic broadbased investing.

Everyone is different, but I am more after the latter with this type of investment, so prefer VGS, not to mention the lower management fee (QUAL is more than double VGS'). QUAL is also more exposed to US markets ( 79% vs 73%), and I would prefer the opposite at the moment.

10 year comparisons are similar - Qual 14% p/a vs VGS 13%, whereas VGS has outperformed over 5 years (16.5% vs 15.2%).

Don't believe anyone who suggests they are confident one ETF will outperform another (not to say you will find that on here, but definitely elsewhere). But know what you are investing in and why. That said, I wouldn't get too caught up in the weeds here. Both are high quality ETFs for different reasons.

20
Arizona
Added 2 months ago

For what its worth @StumpyAndrew Wielandt sings the praises of QUAL at every opportunity.

He references QUAL whenever I see him in the media - Livewire markets, Ausbiz etc.

For example here he is on Livewire markets espousing the benefits of QUAL - "The one ETF to rule them all"

https://www.livewiremarkets.com/wires/10-adviser-approved-etfs-for-2024 - QUAL talk starts at 9:19

Andrew Wielandt: QUAL, the one ETF to rule them all. It's from VanEck. It's got about 200-odd companies in there. Strong return on shareholders' funds, steady to increasing debt, steady to increasing earnings. It's up about 40% for the year. It's a core holding in my self-managed super fund. It's a core holding in my client's portfolios. It's the best quality one out there.

16

Mujo
Added 2 months ago

It's a good ETF but yes just taking US and mega cap risk essentially.

12