What is Moat investing?

It is a concept of investing in companies that have sustainable competitive adventages over their peers and are trading at attractive valuations. These factors postion the company to generate superior returns to the broader market.

What competitive advantages does MOAT account for?

There are five sources of economic MOATs identified by Morningstar which are reflected in our MOAT ETF, Switiching Costs, Intangiable Assets, Network Effect, Cost Advantage and Efficient Scale.

Moat ETF

Companies with Long-term Competitive Advantages

Discover VanEck’s Moat ETF Suite

The ETFs are based on a simple concept: Invest in companies with sustainable competitive advantages normally trading at attractive valuations. Over time, these companies seem well positioned to generate superior returns than the broader market. Morningstar’s forward-looking equity research turns the moat philosophy into an actionable investment strategy. This strategy is accessible through four ETFs from VanEck and could be considered for a US or global equity allocation.

VanEck Morningstar US Wide Moat UCITS ETF

Exposure: U.S. Moat Stocks
Sector and style agnostic strategy that identifies undervalued US stock according to Morningstar analysts
Equal weighted approach to enforce diversification
Please be aware of risks, including the risk of investing in US stocks

ETF Details

Basis-Ticker: MOTU
ISIN: IE0007I99HX7

TER: 0.46%
AUM: $46.5 M (as of 08-10-2024)
SFDR Classification: Article 6

Lower risk

Higher risk

Typically lower reward

Typically higher reward

VanEck Morningstar US Sustainable Wide Moat UCITS ETF

Exposure: U.S. Moat Stocks
Sector agnostic strategy that identifies valuation opportunities across the market
Avoids concentration on few megacaps
ESG screening applied
Please be aware of risks, including the risk of investing in US stocks

ETF Details

Basis-Ticker: MOAT
ISIN: IE00BQQP9H09

TER: 0.49%
AUM: $486.6 M (as of 08-10-2024)
SFDR Classification: Article 8

Lower risk

Higher risk

Typically lower reward

Typically higher reward

VanEck Morningstar US SMID Moat UCITS ETF

Exposure: U.S. Moat Stocks
Sector and style agnostic strategy focusing on Small and Mid-cap stocks
Attractively valued stocks by Morningstar with competitive advantages
Please be aware of risks, including the risk of investing smaller companies

ETF Details

Basis-Ticker: SMOT
ISIN: IE000SBU19F7

TER: 0.49%
AUM: $8.9 M (as of 08-10-2024)
SFDR Classification: Article 6

Lower risk

Higher risk

Typically lower reward

Typically higher reward

VanEck Morningstar Global Wide Moat UCITS ETF

Exposure: Global Moat Stocks
Rules-based picks across global markets, based on valuation opportunities
Includes both developed and emerging markets
Please be aware of risks, including the risk of investing in equities

ETF Details

Basis-Ticker: GOAT
ISIN: IE00BL0BMZ89

TER: 0.52%
AUM: $74.7 M (as of 08-10-2024)
SFDR Classification: Article 6

Lower risk

Higher risk

Typically lower reward

Typically higher reward

Sources of Economic Moats Found in Our Moat ETFs

Economic moats are sustainable competitive advantages that are expected to allow companies to fend off competition and sustain profitability into the future. Morningstar has identified five sources of economic moats, reflected in this Fund.

Switching Costs

Intangible Assets

Network Effect

Cost Advantage

Efficient Scale

The Philosophy Behind the Strategy

The moat investing philosophy, powered by Morningstar’s equity research, brings together its Economic Moat Rating and its forward-looking Fair Value Estimate. The combination of these two elements drives the choice of the companies included in the VanEck's Moat ETF.

Proven Long-Term Outperformance of Moat ETF

Global Exposure
U.S. Exposure
U.S. ESG Screened Exposure
U.S. Small-Mid Cap Exposure

Applying Morningstar’s moat investing philosophy to global companies has historically generated excess returns relative to the broad global equity markets. Strong stock selection has been a primary driver of excess returns since 2018 for this long-term, core investment strategy.

Source: Morningstar.

Applying Morningstar’s moat investing philosophy to U.S. companies has historically generated excess returns relative to the broad U.S. equity markets.

Source: Morningstar.

U.S. Wide Moat stocks rigorously screened to reduced Sustainability risk using the data from Sustainalytics and historically generating outperformance to the broad U.S. equity markets.