Low cost strategy sees ETF rating upgraded
Ratings house, Lonsec, has upgraded its rating of Van Eck Australia's Market Vectors MSCI World ex Australia Quality Exchange Traded Fund (ETF) (QUAL) to "recommended".
Van Eck Australia managing director, Arian Neiron, said the upgrade was a "testament of the ETF's ability to deliver on its investment objectives".
"With a management fee of 0.40 per cent per annum, all types of investors are attracted to QUAL's easily understood and low cost investment strategy," he said.
"QUAL was the first of its kind listed on the ASX. Strategic beta ETFs are now being used by a range of investors who are seeking alternate cost effective passive strategies."
The fund offers investors access to a portfolio of 300 international companies, with three key fundamentals — high return on equities, stable year-on-year earnings growth and low financial leverage.
The Lonsec report said the research house considered "the fundamentals underpinning of the index to be sound and based on robust measures of company quality."
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