I'm a big fan of buying quality exchange-traded funds (ETFs) for my portfolio, even though I do plenty of stock picking myself. There's a particular ASX ETF that I think is a great buy in August: WCM Quality Global Growth Fund (ASX: WCMQ)
It's not one of the biggest ASX ETFs on the ASX like Vanguard Australian Shares Index ETF (ASX: VAS) or iShares S&P 500 ETF (ASX: IVV). But, the WCMQ ETF offers a combination of great characteristics that could make it more appealing than both the VAS ETF and the IVV ETF.
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High-quality portfolio making great returns
I believe that higher-quality businesses will outperform average companies over the long-term.
The WCMQ ETF aims to invest in a portfolio of between 20 to 40 stocks that are high-quality global companies primarily in the high-growth consumer, technology and healthcare sectors.
The WCM investment team want to own businesses that have improving economic moats, or strengthening competitive advantages.
Companies that are becoming steadily stronger with their market position gives them much more scope to grow earnings in future years.
Additionally, the WCM team have come up with a way to judge whether businesses have a corporate culture that supports the improvement of its economic moat – these are the types of stocks they're looking for.
The investment strategy is clearly working well because the ASX ETF's portfolio has delivered strong returns.
The WCMQ ETF has returned an average of 16.2% per year since inception in August 2018 and 25.1% per year over the past three years. Of course, past performance is not a guarantee of future returns.
Global diversification
This is not a US portfolio – the fund targets shares from the global share market. So, this ASX ETF can provide more diversification than both the VAS ETF and the IVV ETF.
At the end of June 2026, 57% of the portfolio was invested in the Americas (not just the US), 20% was invested in European shares, 19% was invested in Asia Pacific shares and 4% was invested in 'other'.
For investors wanting to diversify away from Australian-based assets, this could be a great choice.
Good dividend yield
For me, one of the most appealing elements of this ASX ETF is how it targets a 5% distribution yield, which is far higher than many other international share-focused ASX ETFs such as the IVV ETF.
With its track record of delivering double-digit net returns, that's strong enough for the ASX ETF to deliver a good yield in the short term, capital growth and payout growth over time.
For me, that's a great combination of returns and something I'll be happy to own for the long-term.
