Videos

Seasoned investment professionals, sector-dedicated analysts, and creative thinkers are at the heart of our business. Get their perspective on today's market climate.

All Videos

Video Transcript

The Morningstar Economic Moat Rating


The Morningstar Economic Moat Rating represents a company's sustainable competitive advantage. A company with an economic moat can fend off competition and earn high returns on capital for many years to come, according to Morningstar.


Morningstar has identified five sources of moat. Switching costs are those obstacles that keep customers from changing from one product to another. The network effect occurs when the value of a good or service increases for both new and existing users as more people use that good or service. Intangible assets are things such as patents, government licenses, and brand identity that keep competitors at bay. A company with a cost advantage can produce goods or services at a lower cost, allowing them to undercut their competitors or achieve higher profitability. Efficient scale benefits companies operating in a market that only supports one or a few competitors, limiting rivalry.


A company whose competitive advantages we expect to last more than 20 years has a wide moat; one that can fend off their rivals for 10 years has a narrow moat; while a firm with either no advantage or one that we think will quickly dissipate has no moat.


The Morningstar Economic Moat Rating can help you uncover companies that may potentially provide attractive long-term returns.


- - - - - - - - - -
IMPORTANT DISCLOSURE

The views and opinions expressed are those of Morningstar. The views and opinions are subject to change with market conditions and do not necessarily reflect the views and opinions of VanEck. The views are provided for informational purposes only, are not meant as investment advice and are subject to change. VanEck cannot guarantee the accuracy or completeness of any statement or data contained in this presentation. Past performance is not a guarantee of future results. All economic and performance information referenced is historical and is no guarantee of future results.


All Information available through this presentation is the property of Morningstar, Inc. or its Information Providers and is protected by copyright and intellectual property laws. All rights reserved.


Morningstar, Inc., Morningstar, the Morningstar logo and Morningstar.com are registered trademarks of Morningstar, Inc. All other Morningstar products and proprietary tools, including Morningstar Category, Morningstar Rating, Morningstar Risk, Morningstar Return, and Morningstar Style Box are trademarks of Morningstar, Inc. All other brands and names are the property of their respective owners.


Neither Morningstar nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information in the presentation, including, but not limited to Information originated by Morningstar, licensed by Morningstar from Information Providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the Information.


NEITHER MORNINGSTAR NOR THE INFORMATION PROVIDERS SHALL HAVE ANY LIABILITY, CONTINGENT OR OTHERWISE, FOR THE ACCURACY, COMPLETENESS, TIMELINESS, OR CORRECT SEQUENCING OF THE INFORMATION OR FOR ANY DECISION MADE OR ACTION TAKEN BY YOU IN RELIANCE UPON THE INFORMATION OR FOR INTERRUPTION OF ANY DATA OR INFORMATION. THE PAST PERFORMANCE OF A MUTUAL FUND, STOCK, OR INVESTMENT STRATEGY CANNOT GUARANTEE ITS FUTURE PERFORMANCE.


NEITHER MORNINGSTAR, INC. NOR ITS INFORMATION PROVIDERS MAKE ANY REPRESENTATIONS ABOUT THE SUITABILITY OF THE INFORMATION, SOFTWARE, PRODUCTS, OR SERVICES CONTAINED HEREIN. ALL SUCH INFORMATION, SOFTWARE, PRODUCTS, AND SERVICES ARE PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND.


Please note that Van Eck Securities Corporation offers investment products that may invest in the asset class(es) included in this presentation. Please refer to the Fund’s prospectus and summary prospectus, which should be read carefully before you invest.


Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com/etf. Please read the prospectus and summary prospectus carefully before investing.


Van Eck Securities Corporation, Distributor
666 Third Avenue, New York, NY 10017