Key findings (as at Q2 2026)
- QUAL is the VanEck MSCI International Quality ETF, holding approximately 294 global companies screened on quality metrics at 0.4% p.a..
- The quality factor screens for high return on equity, stable earnings growth and low debt. Factor funds can behave differently from broad index funds.
- Trailing distribution yield is approximately 1.4%, paid semi-annually. Distributions are foreign-sourced and not franked.
- General information only, not financial advice. Past performance is not a reliable indicator of future returns.
Last updated: Q2 2026. Figures on this page reflect publicly available information as at Q2 2026, reported from fund manager disclosures and reviewed quarterly. Always verify current figures directly with VanEck at vaneck.com.au before making any investment decisions.
QUAL is the VanEck MSCI International Quality ETF. It gives ASX investors exposure to a screened portfolio of global developed-market companies selected on quality characteristics, at a management expense ratio of 0.4% p.a.. QUAL is a factor fund: it does not simply track the broad market by size, it tilts toward companies that score highly on quality measures. Whether it is appropriate for any individual depends on personal circumstances, objectives and time horizon. This article is general information only, not financial advice. ETFLens does not hold an Australian Financial Services Licence.
This review covers what QUAL holds, how the quality factor works, its fees, its distributions, its historical returns (with the past-performance disclaimer that applies to every figure), and how it compares to VGS, the broad global index ETF many investors weigh it against.
At a glance
| Full name | VanEck MSCI International Quality ETF |
| ASX code | QUAL |
| Provider | VanEck |
| Index tracked | MSCI World ex-Australia Quality Index |
| Annual fee (MER) | 0.4% p.a. |
| Fund size | $8.4B |
| Holdings | 294 |
| Distribution yield | approximately 1.4% |
| Distribution frequency | Semi-annually |
Dividend yield is a trailing distribution yield. Past performance is not a reliable indicator of future returns. Fee and fund size data is reported from fund manager disclosures, reviewed quarterly.
What is the QUAL ETF?
QUAL is the VanEck MSCI International Quality ETF. It tracks the MSCI World ex-Australia Quality Index, which selects global developed-market companies that score highly on quality metrics. As at Q2 2026 QUAL holds approximately 294 positions. Unlike a market-cap index fund that simply holds companies in proportion to their size, QUAL applies a screen, so its holdings and weights differ from the broad market.
The quality factor explained
The quality factor selects companies based on three main characteristics: high return on equity, stable year-on-year earnings growth, and low financial leverage (low debt). The idea is to hold financially robust businesses. Factor investing is a rules-based approach that can lead or lag a market-cap index in different periods; there is no guarantee the quality factor outperforms the broad market over any given timeframe. This is general information only, not financial advice.
QUAL holdings: what does it own?
QUAL's largest holdings as at Q2 2026 include Nvidia Corp (5.27%), Apple Inc (5.19%), Meta Platforms Inc (4.64%), Microsoft Corp (3.82%), Alphabet Inc (3.42%). Because the index screens for quality, the fund tends to tilt toward certain sectors and away from others compared with the broad market. Holdings change as the index rebalances and are reported from fund manager disclosures, reviewed quarterly. Full live holdings are on the QUAL page.
QUAL fees and costs
QUAL charges a management expense ratio of 0.4% p.a., which works out to $40/yr per $10,000. That is higher than a plain market-cap index fund such as VGS, reflecting the cost of applying and maintaining the quality screen. You can model the long-run dollar impact of fees with the fee calculator.
QUAL distributions and yield
QUAL distributes semi-annually. The trailing distribution yield as at Q2 2026 is approximately 1.4%. Because the underlying companies are foreign-listed, the dividends are not franked. Distributions vary each period and are not guaranteed. Tax treatment depends on your individual circumstances.
QUAL historical performance
Past performance is not a reliable indicator of future returns. As at Q2 2026, QUAL's reported total returns were approximately 10.2% over one year, 17.4% p.a. over three years and 14.1% p.a. over five years. A factor strategy can lead or lag the broad market in different periods, and these figures reflect periods of varying market conditions.
QUAL vs VGS: key differences
QUAL and VGS both invest in global developed-market shares ex-Australia, but they are built differently. QUAL applies a quality-factor screen and holds approximately 294 names at 0.4% p.a.. VGS tracks the broad MSCI World ex-Australia Index with approximately 1,275 holdings at 0.18% p.a.. QUAL is a more concentrated, screened subset, so its sector and stock weights differ from the broad index. See the QUAL vs VGS comparison for the live holdings overlap. General information only, not financial advice.
Things to consider before investing in QUAL
QUAL is a factor fund, so it can diverge from the broad market in either direction and there is no guarantee the quality factor outperforms. Its fee is higher than a plain index fund, and it is unhedged, adding currency risk. For the full VanEck range on the ASX, see the VanEck provider page, and check how QUAL overlaps with funds you already hold using the overlap checker. Always read the relevant PDS. ETFLens does not hold an Australian Financial Services Licence.
Conclusion
QUAL is the VanEck MSCI International Quality ETF: approximately 294 quality-screened global companies at 0.4% p.a., with a trailing yield of approximately 1.4%, paid semi-annually. It is a factor fund that tilts toward financially robust companies and can behave differently from a broad index. Past performance is not a reliable indicator of future returns. This is general information only, not financial advice.