In this episode of “What’s the Risk?” we take a look at the historic performance of the MSCI World ex Australia Small Cap Quality 150 Index.
Some people would know an ETF that seeks to track the performance of this index as VanEck’s QSML ETF.
We briefly look at how the index is constructed by MSCI, but you can refer back to our previous video on MSCI World ex Australia Quality Index for a better discussion on quality.
The index itself draws from MSCI World ex Australia Small Cap Index, so we compare the performance of the two indices since January 1999. If we take MSCI’s screen for quality and size, there certainly appears to have been a premium attached to it over this time period.
