Moat ETFs

Invest in companies with sustainable competitive advantages.

Moat ETFs are based on a simple concept: Invest in companies with sustainable competitive advantages 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 two ETFs from VanEck. 

Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.

Finding Economic Moats

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.

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.

Proven Long-Term Outperformance

Applying Morningstar’s moat investing philosophy to U.S. companies has historically generated excess returns relative to the broad U.S. equity markets. Strong stock selection has been a primary driver of excess returns since 2007 for this long-term, core investment strategy.

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1 Month 3 Months YTD 1 Year 3 Years
(annualised)
5 Years
(annualised)
Morningstar Wide Moat Focus Index 3.69% 0.79% 23.12% 45.94% 22.33% 20.16%

Figures in the table as of 31 October 2021. Periods greater than one year are annualised. Source: Morningstar. Past performance is no guarantee of future results. Index performance is not representative of fund performance. Investors cannot invest directly in the Index.

Morningstar Analyst Team

Morningstar’s equity research team of more than 100 analysts covers over 1,500 companies globally. More than 200 asset managers and 75,000 financial advisors rely on Morningstar’s research. All of Morningstar’s equity analysts follow a single, consistent research methodology.

Fundamental Analysis

Analyst conducts company and industry research, which may include financial statement analysis, trade show visits, industry reports, site visits and conference calls.

Explore Our ETFs

VanEck Vectors Morningstar US Wide Moat UCITS ETF

ISIN: IE00BQQP9H09

  • Exposure: U.S. Moat Stocks
  • Strategy with proven track record of outperforming the S&P 500
  • Sector agnostic strategy that identifies valuation opportunities across the market
  • Avoids concentration on few megacaps

Risk indication: 6 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

VanEck Vectors Morningstar Global Wide Moat UCITS ETF

ISIN: IE00BL0BMZ89

  • Exposure: Global Moat Stocks
  • Rules-based picks across global markets, based on valuation opportunities
  • Includes both developed and emerging markets

Risk indication: 6 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors

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The value of the securities held by the funds may fall suddenly and unpredictably due to general market and economic conditions in markets in which issuers or securities held by the funds are active.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.

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Aspen Leads, Western Union Lags in Moat Index

We take a closer look at the key leading and lagging stocks in the Morningstar Wide Moat Focus Index for October and the Morningstar equity research team's analysis of these moat stocks.

Read Blog

Why Invest in VanEck ETFs?

VanEck is different from other asset managers in three crucial ways:

  • Since we were founded in 1955 we have constantly been at the forefront of innovation, giving you access to new opportunities like gold funds, emerging market funds and ETFs.
  • We are privately-held, allowing us to focus on our clients’ long-term interests.
  • Our ETFs are transparent: they acquire the underlying securities (no synthetic replication). Securities are not lent out.1
1This only holds for VanEck’s European ETFs.
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