• Makro-Ausblick

    Delegate the Work of Valuation

    Jan van Eck, CEO
     

    The part of Morningstar’s economic moat research process that I like the most is that Morningstar ascribes a “fair value” to each of the stocks that it covers. Based on this fair value, at each quarterly review of the Morningstar® Wide Moat Focus IndexSM, over-valued wide moat stocks leave the index and under-valued stocks enter the index.

    There are not many ETFs that provide this benefit.

    While the Morningstar Wide Moat Focus Index is anything but a value strategy, it is interesting to note that the index has recently shifted towards a “value” bias.

    Valuation Opportunities Drive Style Exposure

    Valuation Opportunities

    Size of circles increase from start date to end date. 31 March 2021, represented by white outline.

    Source: Morningstar. Morningstar style box represents the holdings-based exposure to market capitalization (Micro through Giant capitalization) and style (Deep Value through High Growth).

    Some of those changes may surprise you. In March 2021, the index added Google and sold Bank of America.

    Attractive Price/Fair Value Brings Alphabet (GOOGL) into the Moat Index

    Attractive Price/Fair Value Brings Alphabet (GOOGL) into the Moat Index

    Source: Morningstar. Data as of 31/3/2021. Past performance is no guarantee of future results. For illustrative purposes only.

    Bank of America (BAC) Exits the Moat Index After Becoming Over-valued

    Bank of America (BAC) Exits the Moat Index After Becoming Over-valued

    Source: Morningstar. Data as of 31/3/2021. Past performance is no guarantee of future results. For illustrative purposes only.

    Moat Index Q1 Review: Buys and Sells

    Added Index Constituents
    Company Ticker
    Alphabet Inc A GOOGL
    Facebook Inc A FB
    Cerner Corp CERN
    ServiceNow, Inc. NOW
    Tyler Technologies Inc TYL
    Roper Technologies Inc ROP
    Adobe Inc ADBE
    Northrop Grumman Corp NOC
    Dominion Energy Inc D
    Removed Index Constituents
    Company Ticker
    US Bancorp USB
    Microchip Tech MCHP
    Lam Research Corp LRCX
    Applied Materials Inc AMAT
    Polaris Inc PII
    Bank of America Corp BAC
    John Wiley & Sons Inc. A JW.A
    Charles Schwab Corp SCHW
    American Express Co AXP

    Source: Morningstar.

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    Morningstar® Wide Moat Focus IndexTM is a trade mark of Morningstar inc. and has been licensed for use for certain purposes by VanEck. VanEck Vectors Morningstar US Wide Moat UCITS ETF is not sponsored, endorsed, sold or promoted by Morningstar and Morningstar makes no representation regarding the advisability of investing in VanEck Vectors Morningstar US Wide Moat UCITS ETF.


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