Why I just invested $2,500 into this exciting ASX ETF

Résumé détaillé

This fund offers everything I’m looking for. The post Why I just invested $2,500 into this exciting ASX ETF appeared first on The Motley Fool Australia.

I like to regularly buy high-quality investments that I believe will deliver good returns for my portfolio. With some of my portfolio, I want to generate passive income. That's why I decided to invest $2,500 into the ASX-listed exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

At a time when the global stock market and ASX share market are both increasingly dominated by a few large names from just one or two industries, I think an investment like the WCMQ ETF could be a useful investment for investors such as me.

If I'm going to invest with a fund manager rather than choosing something like Vanguard MSCI Index International Shares ETF (ASX: VGS), the fund manager needs to have an effective investment process that could deliver compelling returns.

WCM is a fund manager based in Laguna Beach, California, which is a very different atmosphere to being in Wall Street in New York.

WCM Investment Management's process is based on the belief that corporate culture is the biggest influence on a company's ability to grow its competitive advantage (economic moat). Having the right set-up can help a business strengthen its market position over the years.

The fund manager has a proprietary way to judge a company's corporate culture, including specific analysts who look at the corporate culture of businesses.

One of the main ways the WCM ETF team judges whether a company's economic moat is strengthening is by looking at the direction of the return on invested capital (ROIC). These are the sorts of long-term winners I want exposure to.

Since the ASX ETF's inception in August 2018, it has returned an average of 15.1% per year, outperforming the global share market (MSCI All Country World Index (ex-Australia)) by an average of more than 2% per year. Of course, past performance is not a guarantee of future returns.

The portfolio's performance is impressive and it also offers the kind of global diversification I want more exposure to.

Début de l'article, extrait de The Motley Fool Australia. Pour lire la suite, ouvrez l'article chez le média.