MOAT

VanEck Morningstar US Sustainable Wide Moat UCITS ETF

Underlying Index
Morningstar^® US Sustainability Moat Focus Index^SM 

Index composition
The Index contains at least 40 attractively priced U.S. companies with sustainable competitive advantages, according to Morningstar's equity research team, that have been screened for ESG risks.

Companies eligible for inclusion in the Index

• Derived from Morningstar^® US Market Index^SM (Parent Index)
• Assigned an Economic Moat rating of wide by Morningstar’s equity research team
• Assigned a fair value estimate by Morningstar's equity research team
• ESG risk score: must be in the medium, low or negligible categories (excludes high and extreme ESG risk companies)
• Controversy score: must be 4 (out of 5) or lower through the trailing 3 years
• Carbon risk score: if rated, must be in the medium, low, or negligible categories (excludes high and extreme carbon risk companies)
• Product involvement exclusions: tobacco, controversial weapons, civilian firearms, thermal coal

Methodology highlights

• Staggered reconstitution:
  Index is divided into two equally-weighted sub-portfolios, and each is reconstituted and rebalanced annually, one in June and the other in December
  Each sub-portfolio will contain 40 equally-weighted securities at its annual reconstitution and weights will vary with market prices until the next reconstitution date.
  Each sub-portfolio is reweighted to 50% of the total index every twelve months.
• Buffer rule:                  
  At each review, current index constituents ranked within the top 150% of the eligible universe based on current market price/fair value ratio are given preference for inclusion
• Sector cap: The greater of 40% or corresponding weight in Parent Index + 10%
• Momentum screen : The Bottom 20% of eligible companies are excluded based on trailing 12-month price return

Index Provider
Morningstar Inc.

Please note that prior to 17th December 2021 EOD, the fund was called VanEck Morningstar US Wide Moat UCITS ETF and was following Morningstar Wide Moat Focus Index. You can find more information about the change in the documents section.