Though not always easy to quantify, intangible assets may include brand recognition, patents, and regulatory licenses. They may prevent competitors from duplicating products or allow a company to charge premium pricing. This feature represents a meaningful aspect of the Moat ETF's companies.
Example: Starbucks Corp.
Starbucks is a leading specialty coffee retailer. According to Morningstar, Starbucks’ wide economic moat comes from its “brand intangible asset that commands premium pricing combined with meaningful scale advantages. With a widely recognized brand, Starbucks is among the few retail concepts to be successfully replicated across the globe.”
Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.