VanEck Morningstar Wide Moat SMA
Overview
A smart approach to U.S. equity investing based on a simple concept of seeking companies with sustainable competitive advantages that are trading at attractive valuations. High profits attract competition which can diminish profitability. Companies that create economic moats can defend against competition and prevent or delay profit erosion. Wide moats are derived from five key sources: intangible assets, switching costs, network effect, cost advantages, and efficient scale. The VanEck Morningstar® Wide Moat Strategy seeks to replicate the performance of the Morningstar® Wide Moat Focus IndexSM1.
Highlights
- Wide Moat Companies
A focus on U.S. companies Morningstar believes possess sustainable competitive advantages, or “moats”
- Focus on Valuations
Strategy targets companies trading at attractive prices relative to Morningstar’s estimate of fair value
- Morningstar’s Equity Research
Strategy fueled by Morningstar’s forward-looking, rigorous equity research process driven by over 100 analysts globally
Characteristics as of 03/31/2024
-
P/E (LTM)25.56
-
P/E (Forward)19.00
-
P/B (LTM)3.27
Market Capitalization (%) as of 03/31/2024
-
Large (>= $10 billion)100.00
-
Mid (< $10 billion >= $2 billion)--
-
Small (<$1.0b)>--
-
Average Weighted Market Cap ($ billion)199.80
Top 10 Holdings (%) as of 03/31/2024
| Holding Name |
% of Net Assets |
|---|---|
| Corteva Inc | 2.73 |
| Alphabet Inc-Cl A | 2.68 |
| Allegion Plc | 2.67 |
| Veeva Systems Inc-Class A | 2.66 |
| Teradyne Inc | 2.61 |
| Rtx Corp | 2.60 |
| Intl Flavors & Fragrances | 2.60 |
| Transunion | 2.59 |
| Estee Lauder Companies-Cl A | 2.57 |
| Schwab (Charles) Corp | 2.57 |
| Top 10 Total (%) | 26.29 |
Country Weightings (%)
as of 03/31/2024
| Country | % of Net Assets |
|---|---|
| ● United States | 100.0 |
Sector Weightings (%)
as of 03/31/2024
| Sector | % of Net Assets |
|---|---|
| ● Health Care | 21.7 |
| ● Industrials | 19.5 |
| ● Financials | 14.1 |
| ● Information Technology | 13.5 |
| ● Consumer Staples | 11.1 |
| ● Materials | 6.7 |
| ● Consumer Discretionary | 6.7 |
| ● Communication Services | 6.6 |
Important Definitions & Disclosures
The model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the model is not subject to compliance with the requirements of such acts.
An investment in the Strategy may be subject to risks which include, among others, risks related to investing in equity securities, consumer discretionary sector, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, index tracking, no guarantee of active trading market, trading issues, passive management, liquidity, non-diversification and index-related concentration risks, all of which may adversely affect the Strategy. Medium-capitalization companies may be subject to elevated risks.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Strategy and bears no liability with respect to that Strategy or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
1The Morningstar® Wide Moat Focus IndexSM consists of companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
Indices are unmanaged and are not securities in which investments can be made.
Model Portfolio information is designed to be used by financial advisors solely as an educational resource, along with other potential resources advisors may consider, in providing services to their end clients. VanEck’s Model Portfolios and related content are for information only and are not intended to provide, and should not be relied on for, tax, legal, accounting, investment or financial planning advice by VanEck, nor should any VanEck Model Portfolio information be considered or relied upon as investment advice or as a recommendation from VanEck, including regarding the use or suitability of any VanEck Model Portfolio, any particular security or any particular strategy. In providing VanEck Model Portfolio information, VanEck is not acting and has not agreed to act in an investment advisory, fiduciary or quasi-fiduciary capacity to any advisor or end client, and has no responsibility in connection therewith, and is not providing individualized investment advice to any advisor or end client, including based on or tailored to the circumstance of any advisor or end client. The Model Portfolio information is provided “as is,” without warranty of any kind, express or implied. VanEck is not responsible for determining the securities to be purchased, held and/or sold for any advisor or end client accounts, nor is VanEck responsible for determining the suitability or appropriateness of a Model Portfolio or any securities included therein for any third party, including end clients. Advisors are solely responsible for making investment recommendations and/or decisions with respect to an end client, and should consider the end client’s individual financial circumstances, investment time frame, risk tolerance level and investment goals in determining the appropriateness of a particular investment or strategy, without input from VanEck. VanEck does not have investment discretion and does not place trade orders for any end client accounts. Information and other marketing materials provided to you by VanEck concerning a Model Portfolio—including allocations, performance and other characteristics—may not be indicative of an end client’s actual experience from investing in one or more of the funds included in a Model Portfolio. Using an asset allocation strategy does not ensure a profit or protect against loss, and diversification does not eliminate the risk of experiencing investment losses. There is no assurance that investing in accordance with a Model Portfolio's allocations will provide positive performance over any period. Any content or information included in or related to a VanEck Model Portfolio, including descriptions, allocations, data, fund details and disclosures are subject to change and may not be altered by an advisor or other third party in any way.