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Welcome to VanEck
VanEck is a global investment manager with offices around the world. To help you find content that is suitable for your investment needs, please select your country and investor type.
For the Month Ending February 28, 2018
Global markets saw a widespread sell-off in February, and moat stocks were no exception. International moats, as represented by the Morningstar® Global ex-US Moat Focus IndexSM (MGEUMFUN, or "International Moat Index"), led the MSCI All Country World Index ex-USA in February by a small margin (-4.61% vs. -4.72%, respectively). The U.S.-oriented Morningstar® Wide Moat Focus IndexSM (MWMFTR, or "U.S. Moat Index") trailed the broad U.S. markets as represented by the S&P 500® Index (-4.58% vs. -3.69%, respectively).
As markets overall struggled, a few international moat-rated companies stood out with strong performance in February. Singapore bank DBS Group Holdings Ltd. (DBS SP, +7.59%) built on previous momentum, posting strong results in February capped by a special dividend for shareholders. Aerospace companies Embraer SA (EMBR3 BZ, +5.95%) and Airbus SE (AIR FP, +4.09%) also had strong performance for the month. The financials sector and German companies were the top detracting sector and country, respectively, while Mexican cement maker CEMEX SAB de CV (CEMEXCPO MM, -20.79%) posted an unexpected fourth quarter loss, which earned it the spot of the worst performing International Moat Index constituent by a wide margin.
Healthcare, as a whole, dragged significantly on U.S. Moat Index performance in February. The sector accounted for three of the five worst performing constituents: Biogen Idec, Inc. (BIIB US, -16.91%), Stericycle Inc. (SRCL US, -16.84%), and Allergan plc (AGN US, -14.06%). However, several healthcare companies did buck that trend. Bristol-Myers Squibb Co. (BMY US, +5.75%) posted strong fourth quarter results at the beginning of the month, along with positive study results relating to lung cancer treatments. Veeva Systems Inc. (VEEV US, +10.88%), though not a healthcare company, provides client relationship management services to the pharmaceutical industry and posted strong results for the fourth quarter. Meanwhile, home improvement retailer Lowe’s Companies Inc. (LOW US, -14.46%) also disappointed, posting underwhelming quarterly results which drove a fair value downgrade from $93 to $90 by Morningstar equity analysts.
|Veeva Systems Inc Class A||10.88|
|Bristol-Myers Squibb Company||5.75|
|CBRE Group Inc||2.32|
|Compass Minerals International Inc||-16.30|
|Lowe's Companies Inc||-14.46|
|DBS Group Holdings Ltd||7.59|
|China Resources Gas Group Ltd||2.47|
|Cemex SAB de CV CPO Terms:2 Shs-A- & 1 Shs-B-||-20.79|
|Industria De Diseno Textil SA||-15.36|
|Vodafone Group PLC||-12.10|
|Cardinal Health Inc||CAH US|
|Veeva Systems Inc A||VEEV US|
|Merck & Co Inc||MRK US|
|Western Union Co||WU US|
|Microchip Technology Inc||MCHP US|
|NIKE Inc||NKE US|
|Berkshire Hathaway||BRK/B US|
|BlackRock Inc||BLK US|
|CH Robinson Worldwide Inc||CHRW US|
|Patterson Cos Inc||PDCO US|
|Polaris Inds Inc||PII US|
|T Rowe Price Group Inc||TROW US|
|Telecom Italia SpA||Italy|
|Lloyds Banking Group Plc||United Kingdom|
|SoftBank Group Corp||Japan|
|Beijing Enterprises Holdings Ltd.||China|
|Millicom Intl Cellular S.A. - SDR||Sweden|
|Bank of China Ltd H Shares||China|
|Gas Natural SDG SA||Spain|
|Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.||Mexico|
|Smiths Group||United Kingdom|
|Danske Bank A/S||Denmark|
|Samsonite International SA||Hong Kong|
|Contact Energy Ltd||New Zealand|
|Vodafone Group||United Kingdom|
|Grupo Aeroportuario del Pacifico, S.A.B. de C.V.||Mexico|
|Cemex SA CPO||Mexico|
|China Telecom Corporation Ltd. - H Shares||China|
|ENN Energy Holdings Ltd||China|
|Nippon Tel & Tel Corp||Japan|
|Murata Manufacturing Co Ltd||Japan|
|Telefonica Brasil S.A. - Prf||Brazil|
|QBE Insurance Group Ltd||Australia|
|Julius Baer Group||Switzerland|
|Bureau Veritas SA||France|
|Tata Motors Ltd||India|
|DBS Group Holdings||Singapore|
|CapitalLand Commercial Trust||Singapore|
This commentary is not intended as a recommendation to buy or to sell any of the named securities. Holdings will vary for the MOAT and MOTI ETFs and their corresponding Indices.
An investor cannot invest directly in an index. Returns reflect past performance and do not guarantee future results. Results reflect the reinvestment of dividends and capital gains, if any. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Fair value estimate: the Morningstar analyst's estimate of what a stock is worth.
Price/Fair Value: ratio of a stock's trading price to its fair value estimate.
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 VanEck Vectors Morningstar Wide Moat ETF or VanEck 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 Morningstar Global ex-US Moat Focus Index are service marks of Morningstar, Inc.
The Morningstar® Wide Moat Focus IndexSM consists of U.S. companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
The Morningstar® Global ex-US Moat Focus IndexSM consists of companies outside of the U.S. identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Van Eck Associates Corporation. Copyright © 2018 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC's indices please visit www.spdji.com. S&P is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third-party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third-party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
The MSCI All Country World Index ex USA Index captures large and mid-cap representation across 22 of 23 developed markets countries (excluding the U.S.) and 24 emerging markets countries.
Effective June 20, 2016, Morningstar implemented several changes to the Morningstar® Wide Moat Focus IndexSM construction rules. Among other changes, the index increased its constituent count from 20 stocks to at least 40 stocks and modified its rebalance and reconstitution methodology. These changes may result in more diversified exposure, lower turnover, and longer holding periods for index constituents than under the rules in effect prior to this date.
Effective June 20, 2016, Morningstar implemented several changes to the Morningstar® Global ex-US Moat Focus IndexSM construction rules. Among other changes, the index increased its constituent count from 50 stocks to at least 50 stocks and modified its rebalance and reconstitution methodology. These changes may result in more diversified exposure, lower turnover, and longer holding periods for index constituents than under the rules in effect prior to this date.
An investment in VanEck Vectors Morningstar Wide Moat ETF (MOAT®) may be subject to risks which include, among others, investing in the health care, consumer discretionary, industrials, financial services sectors, medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and concentration risks, 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.
An investment in VanEck Vectors Morningstar International Moat ETF (MOTI®) may be subject to risks which include, among others, equity securities, investing in the financial services, health care, industrials and telecommunication sectors, medium-capitalization companies, foreign securities, foreign currency, emerging market issuers, special risk considerations of investing in Asian and European issuers, depositary receipts, cash transactions, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. 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.
ETF 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. Shares may trade at a premium or discount to their NAV in the secondary market. You will incur brokerage expenses when trading ETF shares in the secondary market. Past performance is no guarantee of future results.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck Vectors ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck Vectors ETFs carefully before investing.
Morningstar Wide Moat ETF
|Index:||Morningstar® Wide Moat Focus IndexSM (MWMFTR)|
Wide Moat Fund
|Index:||Morningstar® Wide Moat Focus IndexSM (MWMFTR)|
Morningstar International Moat ETF
|Index:||Morningstar® Global ex-US Moat Focus IndexSM (MGEUMFUN)|
Global Wide Moat ETF
|Index:||Morningstar® Global Wide Moat Focus IndexSM (MSGWMFNU)|
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Investing involves risk, including possible loss of principal. An investor should carefully consider investment objectives, risks, charges and expenses carefully before investing. This and other information can be found in the appropriate regulatory documents made available for a specified country as designated in this website.