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Lonsec upgrades Van Eck ETF

Van Eck Australia announced today that research house Lonsec has upgraded one of its Market Vectors ETFs to "recommended".

In a statement, the company said its Market Vectors MSCI World ex Australia Quality ETF (QUAL) has generated a "great deal" of interest from financial advisers, brokers and self-managed super funds.

"This upgrade from Lonsec is a testament [to] the ETF's ability to deliver on its investment objectives," said Van Eck Australia managing director Arian Neiron.

"With a management fee of 0.40 per cent per annum, all types of investors are attracted to QUAL's easily understood and low cost investment strategy. QUAL was the first of its kind listed on the ASX," 

"Strategic beta ETFs are now being used by a range of investors who are seeking alternate, cost-effective passive strategies."

The ETF gives investors access to a portfolio of 300 international companies, which are included based on analysis by MSCI of three fundamentals. These include high return on equity, stable year-on-year growth and low financial leverage, the statement said.

QUAL tracks the MSCI World ex Australia Quality Index.


Lonsec said it "considers the fundamental underpinnings of the index to be sound and based on robust measures of company quality".

"[Van Eck Global] is well resourced with all of the processes and systems required to meet the objectives of the ETF offered," the firm said.