QSML - VanEck MSCI International Small Companies Quality ETF

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VanEck MSCI International Small Companies Quality ETF QSML

Fund description: QSML gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities. QSML aims to provide investment returns before fees and other costs which track the performance of the Index.

Index description: The MSCI World ex Australia Small Cap Quality 150 Index measures the performance of the 150 largest international quality small-cap growth companies selected from the MSCI World ex Australia Small Cap Index at rebalance.

Management style: Replication

Country of domicile: Australia

 as at 23-Sep-21

  • Exchange

    ASX
  • ASX code

    QSML
  • Bloomberg index code

    NA735934
  • Index provider

    MSCI Inc.
  • NAV1

    $23.46
  • Units outstanding1

    1,100,043
  • Net assets1

    $25.8M
  • Number of holdings1

    148
  • Inception date2

    08-Mar-21
  • ASX commencement

    10-Mar-21
1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

as at 23-Sep-21

The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day.
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Key points

Index name
MSCI World ex Australia Small Cap Quality 150 Index

Overview
The Index measures the performance of a quality growth strategy by identifying the largest 150 stocks based on the free-float market capitalisation (“FMC”) of the securities in the MSCI World ex Australia Small Cap Index tilted by the quality score, at rebalance. The quality scores are based on three main fundamental variables: high return on equity, stable year-over-year earnings growth and low financial leverage.


Summary of Index calculation methodology 
A four step process is followed to determine the Reference Index:

1. Universe
The eligible universe is all the companies in the MSCI World ex Australia Small Cap Index (“Parent Index”), which is a traditional FMC weighted index.

2. Quality
MSCI calculates a quality score for each company in the universe based on the following fundamental accounting variables from publicly reported financial data:

a) return on equity;
b) earnings variability; and
c) debt to equity ratio.

Companies are ranked by quality score and a fixed number required to cover 30% of the FMC of the Parent Index are selected, with the aim of attaining a high exposure to the quality factor, while maintaining sufficient market capitalisation and number of companies covered. At the date of this PDS, 1000 companies are included.

Constituents are then weighted with a tilt to quality as follows:

     Quality weight = Quality score x FMC weight in the Parent Index

3. Select top 150
The top 150 companies by quality weight are then selected for the Index.

4. Weighting
The weights of the final 150 constituents are then adjusted proportionately based on their quality weight in step 2. The maximum weight of any company is capped at 5%.

Rebalances
The Index is reviewed and rebalanced on a semi-annual basis, usually as of the close of the last business day of May and November. The quality scores are recalculated at the end of April and October and used for May and November rebalances respectively.

For full details of the methodology, click here.

Index provider
MSCI Inc (“MSCI”). MSCI is not a related body corporate of VanEck.

QSML is indexed to a MSCI index. QSML is not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to QSML or the MSCI World ex Australia Small Cap Quality 150 Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and QSML.

Index profile  

  • Bloomberg index code

    NA735934
  • Base date

    30-Nov-98
  • Rebalance frequency

    Quarterly

Top ten index constituents (%) Download all daily index constituents as at 31-Aug-21

Total constituents: 149
Constituent name
TIcker
Weightings (%)
TREX COMPANY INC
TREX US
1.66
ENTEGRIS INC
ENTG US
1.56
WILLIAMS-SONOMA INC
WSM US
1.54
QUANTA SERVICES INC
PWR US
1.42
TORO CO
TTC US
1.39
MANHATTAN ASSOCIATES INC
MANH US
1.35
VAT GROUP AG
VACN SW
1.26
DECKERS OUTDOOR CORP
DECK US
1.20
HUBBELL INC
HUBB US
1.11
WESTERN ALLIANCE BANCORP
WAL US
1.10
Top ten total (%) 13.59
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Aug-21

  • Country

    Weightings (%)
  • United States

    67.5
  • United Kingdom

    12.8
  • Sweden

    5.6
  • Switzerland

    3.1
  • Netherlands

    1.9
  • Finland

    1.6
  • Denmark

    1.4
  • Norway

    1.1
  • China

    1.1
  • Japan

    0.8
  • Canada

    0.7
  • France

    0.5
  • Italy

    0.5
  • Malta

    0.5
  • Germany

    0.5
  • Burkina Faso

    0.4
  • Total

    100.0

Index sector weightings (%) as at 31-Aug-21

  • Sector

    Weightings (%)
  • Machinery

    13.1
  • Commercial Banks

    8.4
  • Software

    5.2
  • Semiconductors & Semiconductor Equipment

    4.4
  • Leisure Equipment & Products

    3.8
  • Trading Companies & Distributors

    3.6
  • Building Products

    3.4
  • Insurance

    3.3
  • Household Durables

    3.3
  • Specialty Retail

    2.9
  • Capital Markets

    2.9
  • Commercial Services & Supplies

    2.5
  • Electrical Equipment

    2.5
  • Health Care Equipment & Supplies

    2.5
  • Biotechnology

    2.4
  • Food Products

    2.3
  • Construction & Engineering

    2.2
  • Health Care Providers & Services

    2.1
  • Electronic Equipment, Instruments & Components

    2.1
  • Professional Services

    2.0
  • Auto Components

    2.0
  • IT Services

    1.6
  • Road & Rail

    1.5
  • Thrifts & Mortgage Finance

    1.5
  • Life Sciences Tools & Services

    1.4
  • Metals & Mining

    1.4
  • Industrial Conglomerates

    1.2
  • Textiles, Apparel & Luxury Goods

    1.2
  • Beverages

    1.1
  • Oil, Gas & Consumable Fuels

    1.1
  • Aerospace & Defense

    1.0
  • Communications Equipment

    0.9
  • Pharmaceuticals

    0.8
  • Marine

    0.7
  • Media

    0.6
  • Diversified Financial Services

    0.6
  • Multiline Retail

    0.5
  • Containers & Packaging

    0.5
  • Hotels, Restaurants & Leisure

    0.5
  • Internet & Catalog Retail

    0.5
  • Chemicals

    0.5
  • Diversified Consumer Services

    0.5
  • Distributors

    0.5
  • Household Products

    0.4
  • Personal Products

    0.3
  • OTHERS

    2.5
  • Total

    100.2

Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.