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BetaShares Global Quality Leaders ETF (QLTY)

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101674-2022-03-09-17:12.pdf
FUND MANAGER BetaShares Capital
ASX Code QLTY*
APIR
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE The Fund seeks to provide investors with exposure to a diversified portfolio of quality global companies (ex-Australia) with high return on equity and profitability, low leverage and earnings stability.
INVESTMENT PROFILE The Fund aims to track the performance of an index (before fees and expenses) that comprises 150 global companies ranked by highest quality score.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 05-11-2018
BENCHMARK iSTOXX MUTB Global Ex-Australia Quality Leaders Index
FUND SIZE iSTOXX MUTB Global Ex-Australia Quality Leaders Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS 150
FEES 0.29% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the BetaShares Global Quality Leaders ETF

  • Access to the world's highest quality companies - Fund methodology selects the top 150 global companies ranked by quality score
  • Performance - quality score methodology aims to produce superior long-term performance compared to benchmark global equities indices
  • Diversification - Fund designed to provide exposure to 150 global shares (ex-Australia) in a single ASX trade
  • Broad region & sector access - Fund invests in companies from a wide variety of global locations as well as a broad range of industry sectors, many of which are under-represented in the Australian market
  • Lower historical drawdown - Fund's index of quality companies has historically exhibited reduced declines during market falls, when compared to the MSCI World Index
  • Cost effective - Fund tracks the performance of an index (no active manager' fees)
  • Liquidity - available to trade on the ASX like any share
  • Transparent - portfolio holdings, value of the Fund's assets and net asset value per unit available daily on our website

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

The Fund seeks to provide investors with exposure to a diversified portfolio of quality global companies (ex-Australia) with high return on equity and profitability, low leverage and earnings stability. The Fund aims to track the performance of an index (before fees and expenses) that comprises 150 global companies ranked by highest quality score.

Investment objective

The investment objective of the BetaShares Global Quality Leaders ETF is to provide an investment return that aims to track the performance of the iSTOXX MUTB Global ex-Australia Quality Leaders Index (the "Index), before taking into account fees and expenses.

The Index is designed to track the performance of quality companies with high profitability, low leverage and sustainable cash flows, excluding companies listed in Australia. The Index components are selected based on a combined ranking of four fundamentals ratios - return on equity, debt-to-capital, cash flow generation ability and business stability.

How to use this ETF in your portfolio

The Fund can be used to implement a variety of investment strategies. For example:

  • A core allocation to international equities providing transparency and diversification benefits
  • Tactical exposure to the global sharemarket
  • A low cost complement or alternative to active fund managers focused on global equities

Mandate

How we invest your money

The Fund aims to track the performance of an index (before fees and expenses) that comprises 150 global companies ranked by highest quality score. The Fund will seek to achieve the investment objective by adopting a "full replication strategy. See section 2.1.2 of the PDS for further information.

The Index is derived from the STOXX Global 1800 ex-Australia Index. The universe is divided into three regions: North America, Europe and Asia/Pacific. An initial screen is applied to each of the three regions to select only stocks within the region ranking within the top 50% by return on equity and within the top 95% by financial health (measured by the debt-to-capital ratio), profitability (measured by cash flow generation) and business stability (measured by the volatility of historical net income). For all stocks that remain, a composite quality score is calculated, based on the percentile rankings (calculated on the full universe) achieved in relation to the four measures described above. All eligible companies are ranked by the composite quality score in descending order, and the top 150 stocks are selected as components of the Index.

The Index is weighted by free-float market capitalisation, with a single component's weight capped at 2%. The Index is reviewed semi-annually in June and December.

Between the reconstitutions of the Index, if an Index constituent security no longer meets the eligibility criteria, or is otherwise determined to have become ineligible for inclusion in the Index, the security is removed from the Index and not replaced.

The Index is a net total return index, which means that it reinvests cash dividends on the relevant ex-dividend date (the date on which the relevant shares no longer come attached with the right to receive the declared dividend) and adjusts for an Index security's country of incorporation withholding rate.

The nature and method of calculation of the Index may change from time to time.

For more information on the Index, please see pages 47-8 of the PDS.