Highlights
- Diversified global exposure across developed markets
- Focused on companies with strong financial fundamentals
- Consistent historical performance amid volatility
With global market uncertainties continuing into July, investors are increasingly drawn to exchange-traded funds (ETFs) offering high-quality exposure to well-established global companies. Two standout ASX-listed ETFs—VanEck MSCI International Quality ETF (QUAL) and Betashares Global Quality Leaders ETF (QLTY)—are positioned to deliver resilient performance through diversified holdings and rigorous stock selection criteria.
VanEck MSCI International Quality ETF (ASX:QUAL)
The VanEck MSCI International Quality ETF (ASX:QUAL) provides access to a curated basket of 300 high-calibre international companies. These companies are selected from developed markets including the United States, Switzerland, the United Kingdom, Japan, the Netherlands, Denmark, and France—offering substantial geographic diversification.
Holdings in this ETF include globally recognised names such as Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Visa (NYSE:V), Alphabet (NASDAQ:GOOGL), Eli Lilly (NYSE:LLY), Netflix (NASDAQ:NFLX) and Costco (NASDAQ:COST). Each of these companies scores highly on key financial metrics: high return on equity (ROE), consistent earnings, and low financial leverage.
These stringent inclusion criteria have historically translated into impressive performance. Over the past decade, the QUAL ETF has delivered an average annual return of 14.7%. For those seeking exposure to some of the most financially robust companies worldwide, this ETF stands out.
Betashares Global Quality Leaders ETF (ASX:QLTY)
The Betashares Global Quality Leaders ETF (ASX:QLTY) shares a similar goal but with a more compact portfolio of 150 global companies. It spans countries such as the United States, Japan, Switzerland, France, the Netherlands, Hong Kong, and Spain.
The ETF screens stocks based on four pillars: ROE, debt to capital, earnings stability, and cash flow generation. This rigorous selection process results in a high-quality portfolio that includes companies like Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX), Netflix (NASDAQ:NFLX), Cisco Systems (NASDAQ:CSCO), Honeywell (NASDAQ:HON), and Intuitive Surgical (NASDAQ:ISRG).
QLTY has achieved an average return of 13.5% per year over the last five years, underscoring its ability to deliver growth across market cycles.
Strategic Advantage in the ASX 200 Landscape
Notably, the VanEck MSCI International Quality ETF (ASX:QUAL) is included in the ASX 200, Australia’s benchmark index for large-cap stocks. This adds an additional layer of credibility and relevance for Australian market participants seeking to enhance their global investment strategy without deviating from the local index context.
In periods of market uncertainty, ETFs like QUAL and QLTY provide a straightforward pathway to gain exposure to global companies with strong balance sheets, consistent profitability, and geographic diversity. Their performance history and selection discipline suggest they may continue to play a valuable role in diversified portfolios throughout 2025 and beyond.