As investors seek long-term growth and diversification amid ongoing market volatility, exchange-traded funds (ETFs) continue to stand out as a powerful tool on the ASX. Two ETFs, in particular, are catching attention this June — both providing exposure to high-quality global companies while offering differing strategies in their approach.
Whether you’re a seasoned investor or just beginning your journey, these ETFs offer a gateway to global equity markets, diversified portfolios, and consistent long-term performance.
Betashares Global Quality Leaders ETF (ASX: QLTY): A Passive Path to Global Excellence
The Betashares Global Quality Leaders ETF (ASX: QLTY) is designed for investors who want access to 150 of the world’s most financially robust businesses — all in a single trade. The ETF screens international equities using a rules-based methodology that emphasises four core financial metrics: return on equity (ROE), debt-to-capital ratio, cash flow generation, and earnings stability.
Figure 1: QLTY sector allocation
These metrics serve as the ETF’s quality filter, helping to isolate companies with consistent profitability, strong balance sheets, and resilience across market cycles. In essence, QLTY avoids flashy momentum stocks and instead targets firms with proven operational excellence.
The current top holdings of QLTY read like a roll call of global corporate titans: Netflix, Microsoft, Nvidia, Meta Platforms, Intuit, and Costco. Each of these companies is a household name, recognised not just for innovation but for enduring financial strength.
With an annual management fee of 0.35%, QLTY remains competitively priced compared to other global ETFs. Since its launch in November 2018, the ETF has delivered an average annual return of 14.9%, underscoring the effectiveness of its quality-focused approach. While past performance is never a guarantee of future returns, the historical data offers reassurance for long-term investors.
WCM Quality Global Growth Fund (ASX: WCMQ): Active Management Meets Global Growth
For investors who prefer an actively managed option, the WCM Quality Global Growth Fund (ASX: WCMQ) provides a compelling alternative. Managed by US-based WCM Investment Management, the ETF reflects a philosophy that emphasises corporate culture as a key driver of competitive advantage — or what Warren Buffett famously calls an “economic moat.”
WCMQ leans heavily into growth sectors such as technology, healthcare, and consumer discretionary. The fund managers focus on companies with expanding moats and strong cultures, which they believe are best positioned for sustained outperformance.
Top holdings currently include Amazon, AppLovin, Saab, and 3i Group, a mix of technology, defence, and private equity exposure. Notably, these aren’t always the companies that dominate headline indexes, showcasing the active nature of WCM’s selection process.
Since its inception in August 2018, WCMQ has posted an average annual return of 14.5%, putting it on par with QLTY’s results. However, its success hinges more directly on the skill of the fund managers, who continuously monitor and adjust the portfolio based on evolving global trends and company-specific developments.
Choosing Between QLTY and WCMQ: What Type of Investor Are You?
While both ETFs offer exposure to high-quality global equities, they cater to different investor profiles:
- QLTY is ideal for those who prefer a passive, data-driven approach focused on financial metrics. It provides consistency and simplicity, with exposure to some of the most stable companies worldwide.
- WCMQ, on the other hand, suits investors who trust in active management and seek differentiated stock selection based on forward-looking growth potential and intangible factors like corporate culture.
Both funds deliver on diversification, reducing exposure to the Australia-centric nature of the ASX — which is often weighted toward banking and mining sectors.
Investor Takeaway: Quality Is King in 2025
In the current economic landscape, marked by interest rate shifts, geopolitical tensions, and evolving consumer trends, investing in quality companies has never been more important. ETFs like QLTY and WCMQ allow Australian investors to tap into global growth stories without the need to select individual stocks themselves.
Whether you choose a rules-based ETF or an actively managed one, both options offer a powerful combination of diversification, growth potential, and risk management. As always, investors should consider their personal goals, risk tolerance, and investment horizon before diving in.
