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QSMLAU VanEck MSCI International Small Companies Quality ETF Please read important disclosure Close important disclosure false
  • QSML
    VanEck MSCI International Small Companies Quality ETF

    QSML
    VanEck MSCI International Small Companies Quality ETF

    • NAV
      $31.27

      as at 13-Nov-24
    • Total Net Assets
      $1.09B
    • Dividend Frequency
      1 each year
    • Management fee (p.a.)
      0.59%
    • Number of securities
      148
    • Inception Date
      08-Mar-21
    The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day.
    QSML_PROFILE_IMAGE-update

    Overview

    Fund Description

    QSML gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities. QSML aims to provide investment returns before fees and other costs which track the performance of the Index.

    Key benefits

    150 of the world's highest quality small companies

    Access a diversified portfolio containing some of the world's highest quality small companies based on three key fundamentals: (i) high return on equity; (ii) earnings stability; and (iii) low financial leverage.

    Outperformance potential in growing companies

    Investments focusing on quality small companies have delivered outperformance over the long term relative to other global small companies benchmarks and also relative to large- and mid-cap benchmarks.

    Diversified across countries, sectors and companies

    Offering investors a portfolio of 150 companies across a range of geographies, sectors and economies.

    Index Key points

    Index name

    MSCI World ex Australia Small Cap Quality 150 Index

    Overview

    The Index measures the performance of a quality growth strategy by identifying the largest 150 stocks based on the free-float market capitalisation (“FMC”) of the securities in the MSCI World ex Australia Small Cap Index tilted by the quality score, at rebalance. The quality scores are based on three main fundamental variables: high return on equity, stable year-over-year earnings growth and low financial leverage.

    Summary of Index calculation methodology

    A four step process is followed to determine the Reference Index:

    1. Universe

    2. The eligible universe is all the companies in the MSCI World ex Australia Small Cap Index (“Parent Index”), which is a traditional FMC weighted index.
    3. Quality

    4. MSCI calculates a quality score for each company in the universe based on the following fundamental accounting variables from publicly reported financial data:
      1. return on equity;
      2. earnings variability; and
      3. debt to equity ratio.
      Companies are ranked by quality score and a fixed number required to cover 30% of the FMC of the Parent Index are selected, with the aim of attaining a high exposure to the quality factor, while maintaining sufficient market capitalisation and number of companies covered. At the date of this PDS, 1000 companies are included. Constituents are then weighted with a tilt to quality as follows: Quality weight = Quality score x FMC weight in the Parent Index
    5. Select top 150

    6. The top 150 companies by quality weight are then selected for the Index.
    7. Weighting

    8. The weights of the final 150 constituents are then adjusted proportionately based on their quality weight in step 2. The maximum weight of any company is capped at 5%.

    Rebalances

    The Index is reviewed and rebalanced on a semi-annual basis, usually as of the close of the last business day of May and November. The quality scores are recalculated at the end of April and October and used for May and November rebalances respectively.

    For full details of the methodology, click here

    Index provider

    MSCI Inc (“MSCI”). MSCI is not a related body corporate of VanEck.

    QSML is indexed to a MSCI index. QSML is not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to QSML or the MSCI World ex Australia Small Cap Quality 150 Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and QSML.

    Performance

    Holdings & allocations

    Dividends

    Election of Dividend Reinvestment Plan (DRP)

    You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.

    Documents & insights

    QSMLAU /blog/australian-small-and-mid-caps/