ASX share investments can be a great way to build our wealth. But, it's not always easy to know what to invest in.
I regularly write about the various businesses that I think are compelling opportunities, including ones I own in my portfolio.
But, wouldn't it be great if we could put all of our money into just one investment and that could deliver strong returns?
There are a few investments out there like that. I like Vanguard Diversified High Growth Index ETF (ASX: VDHG) as a concept because it encompasses everything an investor could want to own – an all-in-one investment. But, to me, the VDHG ETF is so diversified that it may be too diversified to produce a high rate of return. Since inception in November 2017, it has delivered an average return per year of 9.8%.
For me, there are two other ASX share options that would look a lot more appealing to put all my portfolio money into.
VanEck MSCI International Quality ETF (ASX: QUAL)
I believe an all-share portfolio is the way to go because shares have generally delivered stronger long-term returns than most other asset classes.
But, I don't necessarily want to invest in lots of average/mediocre businesses because that would likely mean lowering my returns. Why not just invest in the best ones?
It's difficult to say exactly which are the best ones. But there are ways to narrow down which businesses are better than others. If you add multiple screenings and only choose the best ones, you're left with the strongest contenders.
The QUAL ETF invests in 300 businesses from across the world and various industries, which I'd describe as ample diversification.
There are three key characteristics this fund looks for. First, that the businesses has a high return on equity (ROE). Second, that it display earnings stability. Third, that it has low financial leverage.
Being highly profitable for shareholders, with profit generally rising over time and having a very healthy balance sheet is an appealing combination, in my view.
It's not surprising to me to see that the fund has returned an average of 15.3% per annum over the five years to 30 September 2025, given the quality of the names it has invested in. Its biggest holdings are Nvidia, Apple, Microsoft, Meta Platforms, Alphabet, and Visa.
Betashares Global Quality Leaders ETF (ASX: QLTY)
The QLTY ETF has a similar setup to the QUAL ETF, although with an additional screen for quality, and has ended up with a different portfolio.
The fund from Betashares seeks a strong ranking across four different metrics – return on equity, debt to capital ratio, cash flow generation ability, and earnings stability.
There are 150 names in the portfolio, which come from across the world and are from various industries. But, while there are 150 fewer holdings within the QLTY ETF than the QUAL ETF, in some ways, it appears to be more diversified.
The allocations to the six businesses I listed above in the QUAL ETF come to a combined weighting of approximately 33%. The biggest six holdings in the QLTY ETF have a combined allocation of just 13.6%. The six largest positions in the QLTY ETF include Applied Materials, ASML, Lam Research, Palo Alto Networks, Microsoft, and Johnson & Johnson. The 150 positions are more evenly spread than the 300 stocks in the QUAL ETF.
Either way, I think owning 150 or 300 of the best businesses in the world is more than enough diversification, particularly because they generate their earnings from across the world – they're not reliant on one market.
Over the past five years, the QLTY ETF has returned an average of 12.8% per year, though that return has been generated by a more even spread of businesses.
I'd want to own more ASX share investments than just one of these funds, but they are compelling options for the international shares exposure.
