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  • Moat Investing

    VanEck Launches Global Version of MOAT ETF

    11 August 2020
     

    On 7 July 2020, VanEck launched the global version of its popular MOAT ETF, the VanEck VectorsTM Morningstar Global Wide Moat UCITS ETF.

    With the VanEck Vectors Morningstar Global Wide Moat UCITS ETF (GOAT), investors can make targeted investments in global companies that the index provider Morningstar assigns a wide economic moat rating to, i.e. companies with a long-term competitive advantage over their peers. These "moats" may include cost advantages, efficient scale, network effects, high switching costs and intangible assets. Just as critical as a company’s economic moat rating, is its Morningstar Fair Value Estimate. GOAT’s underlying index targets those wide moat companies that are trading at the most attractive valuations.

    Morningstar’s equity research analysts are located around the globe and evaluate moats and fair value estimates on an ongoing basis. Investors should also be aware of the risks: The value of the securities held by the ETF may decrease due to general market and economic conditions in markets and the fund may invest a relatively high proportion of its assets in a smaller number of issuers.

    The ETF invests in a portfolio of equity securities with the aim of providing investment returns that closely track the performance of the Morningstar® Global Wide Moat Focus Index and is an attractive alternative to the global equity benchmark, the MSCI World Index. Since index inception on 23 April 2018, the Morningstar index has outperformed the MSCI World index index 7.63% as of 4 August 2020.

    Morningstar Global Wide Moat Focus Index vs. MSCI World Net Total Return Index

    Past performance is not a guarantee for future performance. You cannot directly invest into an index.

    Top holdings as of 3 August 2020 were GEA Group AG (a farm technology, mechanical equipment, process industry and refrigeration technology company), ServiceNow Inc. (provider of IT management software), Tencent Holdings Ltd. (the company provides social networking, music, e-commerce, payment services and other technology solutions), Microsoft Corp. (the company develops, manufactures, licenses, sells and supports software products) and Guidewire Software Inc. (develops and publishes enterprise software for the property and casualty insurance industry).

    Fund-specific Disclosure

    The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”), expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

    The Morningstar® Global Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Vectors Morningstar Global Wide Moat UCITS ETF and bears no liability with respect to that ETF or any security. Morningstar is a registered trademark of Morningstar, Inc. Morningstar Global Wide Moat Focus Index is a service mark of Morningstar, Inc.

    Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.

    This message, and any attachments, is for the intended recipient(s) only. It may contain privileged, confidential and/or proprietary information. If you are not the intended recipient, please delete this message.


  • Important Disclosure

    For informational and advertising purposes only.

    This commentary originates from VanEck Investments Ltd, a UCITS Management Company under Irish law regulated by the Central Bank of Ireland and VanEck Asset Management B.V., a UCITS Management Company under Dutch law regulated by the Netherlands Authority for the Financial Markets. It is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice. VanEck Investments Ltd, VanEck Asset Management B.V. and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this commentary. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the commentary’s publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index.

    VanEck Vectors Morningstar US Wide Moat UCITS ETF (the “Fund”) is a sub-fund of VanEck Vectors® UCITS ETFs plc., organised under the laws of Ireland, managed by VanEck Investments Ltd. VanEck Investments Ltd delegated the investment management of the Fund to Van Eck Associates Corporation, an investment manager regulated by the U.S. Securities and Exchange commission (SEC). Any investment decision must be made on the basis of the prospectus and the key investor information document (“KIID”), which is available at www.vaneck.com. These are available in English and certain other languages at www.vaneck.com or can be requested free of charge from VanEck Investments Ltd or from the relevant local information agent details of whom to be found on www.vaneck.com. The Fund is registered with the Central Bank of Ireland and tracks an equity index.

    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.

    The S&P 500 Index (“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 © 2020 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.

    S&P 500® Index: consists of 500 widely held common stocks covering the leading industries of the U.S. economy. Morningstar® Wide Moat Focus IndexTM consists of at least 40 U.S. companies identified as having sustainable, competitive advantages, and whose stocks are the most attractively priced, according to Morningstar.

    All performance information is historical and is no guarantee of future results. Investing is subject to risk, including the possible loss of principal. You must read the Prospectus and KIID before investing in a fund.

    No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.

    © VanEck Investments Ltd / VanEck Asset Management B.V.