If you're looking to grow your wealth over the long term, global diversification is a smart place to start.
But for many investors, building an international portfolio from scratch can be daunting. Between currency risk, foreign tax rules, and the sheer number of overseas stocks to choose from, it is easy to feel overwhelmed.
That's why many Australian investors are turning to exchange-traded funds (ETFs) to invest globally.
But which ASX ETF could be a good pick for global investing?
One to consider is the Betashares Global Quality Leaders ETF (ASX: QLTY), which offers a simple, cost-effective way to invest in 150 of the world's strongest companies, all in a single ASX trade.
An ASX ETF built for strength
The Betashares Global Quality Leaders ETF isn't just another broad-based international ETF.
What makes it unique is its focus on quality (which is never a bad thing!). This ASX ETF tracks an index of 150 companies from developed markets outside Australia, selected based on four key factors: high return on equity, low debt-to-capital ratios, strong cash flow generation, and earnings stability.
In short, it aims to invest only in businesses with consistent profitability and robust balance sheets — the kind of companies that tend to outperform over the long term.
Current holdings
Its current holdings include some of the world's most dominant businesses.
Microsoft, Nvidia, Meta Platforms, and Netflix all feature near the top of the portfolio. The ASX ETF also includes leading names across other sectors and geographies, such as ASML in Europe, Nintendo in Japan, and Novo Nordisk in Denmark.
Consumer staples and industrials are also well represented, with stocks like Costco, Coca-Cola, Honeywell, and Visa adding to the fund's stability.
Strong performance
Over the last five years, the Betashares Global Quality Leaders ETF has delivered an impressive annual return of 18.4%. This is ahead of the broader MSCI World ex-Australia Index, which returned 17.5% per annum over the same period.
To put that into context, a $10,000 investment five years ago would have turned into over $23,000 today.
Foolish takeaway
If you're looking for an easy way to access global growth, the Betashares Global Quality Leaders ETF could be the one ETF to consider.
With a strong track record, exposure to many of the world's most resilient and profitable companies, and a clear quality-focused methodology, it offers a compelling mix of simplicity and performance. It's no wonder that the team at Betashares recently suggested that it could be one to buy.
