The moat philosophy aims to identify companies with structural competitive advantages that are more likely to earn above-average returns on capital over a long period of time, according to Morningstar's equity research team.
Morningstar believes these moat-rated companies demonstrate a sustainable competitive edge.
Two ETFs focus on moat investing: Market Vectors® Morningstar® Wide Moat ETF (MOAT®) offers investors domestic exposure to Morningstar’s proprietary equity research, and Market Vectors® Morningstar International Moat ETF (MOTI) offers international exposure.
Morningstar’s proprietary valuation methodology is used in an effort to select undervalued moat-rated stocks for inclusion in the Morningstar suite of moat indexes.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® Global ex-US Moat Focus IndexSM have outperformed their respective broad markets historically.
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January 6: Moat Investor Update
1MOAT expenses are capped contractually until at least 2/1/16. Cap excludes certain expenses, such as interest.
2MOTI expenses are capped contractually until at least 2/1/17. Cap excludes certain expenses, such as interest.
An investment in the Market Vectors Morningstar Wide Moat ETF may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
An investment in the Market Vectors Morningstar International Moat ETF may be subject to risks which include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks. The Fund's assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.
Indexes are unmanaged and are not securities in which investments can be made
The Morningstar® Wide Moat Focus IndexSM and Morningstar® Global ex-US Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the Market Vectors Morningstar Wide Moat ETF or Market Vectors Morningstar International Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar Wide Moat Focus Index and Mornignstar Global ex-US Moat Focus Index are service marks of Morningstar, Inc.
Morningstar® Wide Moat Focus IndexSM consists of 20 U.S. companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar. Morningstar® Global ex-US Moat Focus IndexSM consists of 50 international companies identified as having sustainable, competitive advantages and whose stocks are attractively priced.
Fund shares are not individually redeemable and will be issued and redeemed at their net asset value (NAV) only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit marketvectorsetfs.com. Please read the prospectus and summary prospectus carefully before investing.
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