Moat Investing Strategy - Powered by Morningstar

Moat ETFs are 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: Investors should consider risks before investing. See dedicated risk factors section on this website.

Finding Economic Moats

Economic moats are sustainable competitive advantages that are expected to allow companies to fend off competition and sustain profitability into the future. Morningstar has identified five sources of economic moats.

The Philosophy Behind the Strategy

The moat investing philosophy, powered by Morningstar’s equity research, brings together its Economic Moat Rating and its forward-looking Fair Value Estimate.

Proven Long-Term Outperformance

Applying Morningstar’s moat investing philosophy to U.S. companies has historically generated excess returns relative to the broad U.S. equity markets. Strong stock selection has been a primary driver of excess returns since 2007 for this long-term, core investment strategy.

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	1 Month	3 Months	YTD	1 Year	3 Years (annualised)	5 Years (annualised)
Morningstar Wide Moat Focus Index	1.43%	4.63%	23.90%	37.51%	20.68%	19.35%

Figures in the table as of 31 August 2021. Periods greater than one year are annualised. 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 Analyst Team

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.

Fundamental Analysis

Analyst conducts company and industry research, which may include financial statement analysis, trade show visits, industry reports, site visits and conference calls.

Explore Our ETFs

VanEck Vectors Morningstar US Wide Moat UCITS ETF

ISIN: IE00BQQP9H09

Exposure: U.S. Moat Stocks
Strategy with proven track record of outperforming the S&P 500
Sector agnostic strategy that identifies valuation opportunities across the market
Avoids concentration on few megacaps

Fund page Fact sheet KIID Prospectus

VanEck Vectors Morningstar Global Wide Moat UCITS ETF

ISIN: IE00BL0BMZ89

Exposure: Global Moat Stocks
Rules-based picks across global markets, based on valuation opportunities
Includes both developed and emerging markets

Fund page Fact sheet KIID Prospectus

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ETFs

Main Risk Factors

The value of the securities held by the funds 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.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.

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Health Care and Tech Stocks Weigh on Moat Index

The Morningstar Wide Moat Focus Index's performance in August was influenced predominantly by its stock selection within the health care and information technology sectors.

Read Blog

Brandon Rakszawski

Senior ETF Product Manager

Please contact us for more information:

Philipp Schlegel, Business Development
Phone: +41 (0)44 562 40 75
Email: EMEASales@vaneck.com