Moat Index’s Long-term Track Record Persists Despite Blip
26 February 2021
Read Time 1 MIN
The Morningstar Wide Moat Focus Index (“Moat Index”) ended its four-year streak of outperforming the broad U.S. equity market (as represented by the Morningstar US Market Index) in 2020—returning 15.1% vs 20.9%, respectively. Despite this, the Moat Index’s long-term track record remains impressive.
A recent Morningstar Equity Research report dissects the Moat Index’s 2020 performance and contextualizes these results as the strategy approaches a 14-year live track record. Topics include:
- The compelling long-term track record of the Moat Index over nearly 14 years, including its risk-adjusted return metrics as well as the correlation between holding period length and batting average.1
- How the Moat Index approaches FANMAG (Facebook, Amazon, Netflix, Microsoft, Apple, and Google/Alphabet) stocks and why being underweight in 2020 was a primary headwind that led to underperformance relative to the broad market.
- The Moat Index’s heavy skew towards value stocks at the expense of growth stocks.
- Stock selection as a headwind while sector positioning contributed to performance.
Read the full report: Morningstar Wide Moat Focus Index: Year in Review.
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10 April 2026
U.S. equities fell in March as oil surged on geopolitical tensions. The Moat Index lagged on no energy exposure, while the SMID Moat Index held up with help from energy and materials.
30 March 2026
The Moat Index added NVIDIA, Broadcom and new names following its quarterly review, as tech dislocations created opportunity, while maintaining a value tilt and notable discount to fair value.
11 March 2026
Valuation discipline and sector allocation tilted exposure towards consumer staples, industrials and health care, supporting gains as software lagged.
12 January 2026
A strong December capped a year of resilience for moat strategies, as quality stock selection and renewed exposure to mega-caps position them for 2026.
23 December 2025
The 4Q 2025 reconstitution of the Morningstar® Wide Moat Focus Index saw selective additions to the Magnificent 7, including NVIDIA and Meta, as AI-driven volatility created valuation opportunities. Despite adding growth-oriented tech names, the Index remains contrarian.