The year 2025 has started on a mixed note. Political change in US, uncertain inflation with better job data and reduced expectation of an early rate cut have all been the contributory factors to increased volatility.
As such, since it is becoming increasingly difficult to predict the sectors or countries which could potentially outperform in 2025, this fund with a diversified portfolio of companies could be a safe bet.
VanEck MSCI International Quality ETF (ASX: QUAL)
VanEck MSCI International Quality ETF mainly invests in a diversified portfolio of quality international companies from developed markets except Australia in accordance with the provisions of the Fund’s Constitution and Product Disclosure Statement (“PDS”).
The portfolio demonstrates its geographic diversification. The QUAL ETF has at least 0.5% invested in several countries, including the US, Switzerland, the United Kingdom, Japan, the Netherlands, Denmark, France, Sweden, Ireland, Canada, and Germany.
Even the companies in the portfolio are among the highest quality companies in the world Chosen on the basis of certain fundamentals like high return on equity (ROE), indicating high level of profit. Earnings stability is another factor considered to mitigate the risk of any potential decline in profits.
QUAL has delivered an average annual return exceeding 15% in last ten years, though past performance is seldom a guarantee of future performance, it casts reflection on its capability. An annual dividend yield of 4.49% with a 24% payout ratio speaks for itself.
Vanguard Australian Shares Index ETF (ASX: VAS)
The largest ETF in Australia, VAS tracks the S&P/ASX 300, which has had a bumper year. Basically an Index fund, it has witnessed strong dividends and earnings from the likes of the big banks and big resources companies contributing to the performance of this ETF across the year.
Representing an investment in the largest 300 Australian shares listed on the ASX, it offers cheap and simple exposure to the Australian stock market. Distinctive with its low management fee of 0.08% per annum, its decent long-term historical return of 9.15% per annum (as of 31 December) adds value to the ETF. VAS delivers an annual dividend yield of 3.44% with a 15% payout ratio.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.