If you're looking for exchange traded funds (ETFs) to buy, then you may want to look at the VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL).
This ETF has been rated highly by an expert, particularly in the current economic environment.
Why the VanEck Vectors MSCI World ex Australia Quality ETF?
The VanEck Vectors MSCI World ex Australia Quality ETF could be worth considering thanks to its focus on quality. This is seen as a big positive given the ongoing threat of recessions globally due to rising inflation and increasing rates.
This ETF aims to provide investment returns of the MSCI World ex Australia Quality Index before fees and other costs.
VanEck notes that the index has been created to capture the performance of quality stocks selected from the parent index, MSCI World ex Australia. It does this by identifying companies with high quality scores based on three key fundamental factors: high return on equity; stable year-on-year earnings growth; and low financial leverage.
Companies deemed to be high quality enough to be included in the fund are the likes of Apple, Johnson and Johnson, Mastercard, Microsoft, Nestle, Nvidia, Pfizer, and Visa.
Sarah Gonzales from Apt Wealth is a fan of the ETF. She also told Livewire:
My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession, I think these are really the factors that I think we should focus on.
