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MOTE
VanEck Morningstar ESG Moat ETF

Fund Description

VanEck Morningstar ESG Moat ETF (MOTE) seeks to track as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® US Sustainability Moat Focus IndexSM (MSUSSMGU). The index is a rules-based index intended to offer exposure to attractively priced U.S. companies with long-term competitive advantages, according to Morningstar, that have been screened for ESG risks.

 
 

  • Fund Ticker

    MOTE
  • Exchange

    Cboe
  • ETF Structure

    Physical
  • Administrator

    Van Eck Associates
  • Custodian

    State Street Bank and Trust Company
  • Index Ticker

    MSUSSMGU
  • Index Reconstitution

    Annually, Staggered Semi-Annually

 
as of 01/28/22

  • 30-Day SEC Yield1

    0.87%
  • Total Net Assets

    $1.9M
  • Number of Holdings

    58
  • Options

    Expected
  • Gross Expense Ratio2

    0.55%
  • Net Expense Ratio/TER2

    0.49%
  • Distribution Frequency

    Annual

Index Key Points

Underlying Index: Morningstar® US Sustainability Moat Focus IndexSM


The 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:

  • Selection Process
    • Derived from Morningstar® US Market IndexSM (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 Screens
    • 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.

Index Profile

  • Ticker

    MSUSSMGU
  • Inception Date

    02/11/2021
  • Rebalance Frequency

    Annually, Staggered Semi-Annually

Index Top 10 Constituents (%) as of 12/31/21

Total Constituents: 58
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full data
Constituent Name
Ticker
Weightings (%)
Kla Corp
KLAC US
2.86
Microsoft Corp
MSFT US
2.71
Yum! Brands Inc
YUM US
2.67
Bank Of New York Mellon Corp
BK US
2.63
C.H. Robinson Worldwide Inc
CHRW US
2.63
Intercontinental Exchange In
ICE US
2.61
Constellation Brands Inc-A
STZ US
2.60
Applied Materials Inc
AMAT US
2.59
Servicenow Inc
NOW US
2.58
Alphabet Inc-Cl A
GOOGL US
2.57
Top 10 Total (%) 26.45
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index Country Weightings (%) as of 12/31/21

  • Country

    Weightings (%)
  • United States

    100.0

Index Sector Weightings (%) as of 12/31/21

  • Sector

    Weightings (%)
  • Information Technology

    31.7
  • Financials

    14.0
  • Consumer Staples

    12.0
  • Consumer Discretionary

    11.6
  • Industrials

    10.3
  • Health Care

    8.4
  • Communication Services

    8.3
  • Materials

    2.5
  • Energy

    1.2