Moat ETF is based on a simple concept: Invest in companies with sustainable competitive advantages trading at attractive valuations. Over time, these companies seem well positioned to generate superior returns than the broader market. Morningstar’s forward-looking equity research turns the moat philosophy into an actionable investment strategy. This strategy is accessible through two ETFs from VanEck.
Risk of a Moat ETF: Investors should consider risks before investing. See dedicated risk factors section on this website.
The moat investing philosophy, powered by Morningstar’s equity research, brings together its Economic Moat Rating and its forward-looking Fair Value Estimate. The combination of these two elements drives the choice of the companies included in the VanEck's Moat ETF.
Source: Morningstar. Past performance is no guarantee of future results. Index performance is not representative of fund performance. Investors cannot invest directly in the Index. The Morningstar Global Wide Moat Focus Index was launched on 23 April 2018. Prior periods show simulated index data created from backtesting (“Simulated past performance”). Simulated past performance does not reflect a deduction for fees and expenses of the VanEck Morningstar Global Wide Moat UCITS ETF (“the Fund”) and is not indicative of future results.
Source: Morningstar. Past performance is no guarantee of future results. Index performance is not representative of fund performance. Investors cannot invest directly in the Index. Morningstar US Sustainability Moat Focus Index was not live prior to 11 February 2021, and any performance prior to this date is hypothetical.
Morningstar’s equity research team of more than 100 analysts covers over 1,500 companies globally. More than 200 asset managers and 75,000 financial advisors rely on Morningstar’s research. All of Morningstar’s equity analysts follow a single, consistent research methodology that has been rigorously applied to determine which companies to include in VanEck's Moat ETFs.
Analyst conducts company and industry research, which may include financial statement analysis, trade show visits, industry reports, site visits and conference calls.
Analyst assesses the strength of the company’s competitive advantage, or moat, assigning a rating of None, Narrow, or Wide.
Analyst considers past financial results, competitive position, and future prospects to forecast the company’s cash flows. Assumptions are entered into proprietary discounted cash flow model.
Using Morningstar’s proprietary discounted cash flow model, the analyst develops a Fair Value Estimate, which represents the intrinsic value of that company.
The value of the securities held by a Moat ETF may fall suddenly and unpredictably due to general market and economic conditions in markets in which issuers or securities held by the funds are active.
The funds may invest a relatively high percentage of its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer in accordance with the requirements of the UCITS investment restrictions. As a result, the gains and losses on a single investment may have a greater impact on the fund's Net Asset Value and may make the funds more volatile than more diversified funds.
Because all or a portion of a Moat ETF are being invested in securities denominated in foreign currencies, the fund’s exposure to foreign currencies and changes in the value of foreign currencies versus the base currency may result in reduced returns for the funds, and the value of certain foreign currencies may be subject to a high degree of fluctuation.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.