VanEck is launching two smart beta international exchange traded funds (ETFs) funds to allow Australian investors to buy into asset classes previously only available to institutional investors.
The funds – VanEck Vectors MSCI International Small Companies Quality ETF (ASX: QSML) and VanEck Vectors MSCI International Value ETF (VLUE) – were subject to final regulatory approval and would commence trading on the Australian Securities Exchange (ASX) soon.
The firm’s managing director and head of Asia Pacific, Arian Neiron, said value, as an investment style, had been performing well in recent months and could continue to do so when global economies recovered from COVID-19 and if reflation happened.
“VLUE will allow investors to add a value tilt to their portfolio, with 250 companies selected by MSCI based on its value factor. Previously, investors could only gain exposure to the value factor through high fee non-transparent actively managed funds,” he said.
“Separately, QSML will give investors exposure to a diversified portfolio of international developed market small-cap quality growth companies with durable business models and sustainable competitive advantages. Many investors seek capital growth opportunities by investing in small companies such as those found in the S&P/ASX Small Ordinaries.
“However, not all of these companies are desirable from an investment perspective. QSML is an international equity smart beta strategy of approximately 150 international small companies selected by MSCI based on its quality factor, offering investors a portfolio of international small companies with strong balance sheets and stable earnings.”