Differentiation Matters as Moat Stocks Lead in July
August 07, 2025
Read Time 7 MIN
Key Takeaways
- Solid earnings, tax cut extensions and AI momentum lifted U.S. equity markets for a third consecutive month of gains in July.
- The Moat Index’s differentiated exposure led to outperformance against the broad market.
- Strong stock selection in consumer staples and industrials, led by Teradyne and Huntington Ingalls, offset the Moat Index’s underweight to mega-cap tech.
- SMID Moat Index topped small- and mid-cap benchmarks, led by Norwegian Cruise Line and Chart Industries.
In July, U.S. equity markets continued their summer advance, marking the third straight month of gains as the S&P 500 rose 2.2% and set a fresh new record high. The Nasdaq Composite gained 3.7%, while the Dow Jones Industrial Average ended the month largely flat. Investor sentiment was bolstered by strong corporate earnings, positive GDP data, and the passage of the One Big Beautiful Bill, which enacted new tax legislation extending previous cuts. However, renewed tariff discussions with multiple countries and a softer-than-expected jobs report toward month's end introduced volatility. The Technology sector remained at the forefront, propelled by AI developments, even as the Federal Reserve once again kept interest rates unchanged. Continued large downward revisions in jobs data did, however, boost market expectations for possible rate reductions later in the year.
The Morningstar Wide Moat Focus Index (the “Moat Index”) gained more than 3% in July, outpacing both the broad market S&P 500 as well as the equal-weighted variant. The outperformance came despite the Moat Index’s structural underweight to top mega-cap technology names. Strong stock selection during the month, particularly within the consumer staples and industrial sectors, more than offset sector allocations. The strategy continues to provide differentiated exposure, which has become increasingly difficult for investors to find, amid historical levels of concentration in the U.S. equity markets.
Smaller stocks also saw advances during the month, but like much of the year so far, the cohort’s performance lagged relative to large-caps. The Morningstar US Small-Mid Cap Moat Focus Index (the “SMID Moat Index”) posted a 1.9% gain in July, outpacing both the broad small- and mid-cap benchmarks which returned 0.9% and 1.6%, respectively. Despite their muted performance, many are keeping a close eye on small- and mid-caps as the segment’s prospects could improve with a dovish pivot by the Fed.
Moat Stocks Lead the Pack in July
Source: Morningstar. Data as of 7/31/2025. Past performance is no guarantee of future results. Index performance is not representative of fund performance. It is not possible to invest directly in an index. Please see index definitions and other important disclosures at the end of this content. Fund performance current to the most recent month end is available by visiting vaneck.com or by calling 800.826.2333.
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Moat Index July Highlights: Chips and Ships Steer Gains
In July, the Moat Index benefited from strong stock selection, as several companies delivered solid earnings results that prompted the market to revalue their shares more in line with Morningstar’s fair value estimates. This earnings-driven rerating more than offset headwinds from the Index’s equal-weighted construction in the current mega-cap driven market. As a result, the Index outpaced the broader, tech-heavy market while continuing to provide differentiated exposure.
Wide-moat semiconductor testing leader Teradyne (TER) was the top contributor to the Moat Index in July, with shares rising nearly 20% following second-quarter earnings and positive forward commentary. While sales declined year over year, management’s guidance pointed to a return to growth in the second half of 2025, and upbeat messaging around demand for AI chip testing and robotics drove a sharp rerating. Morningstar believes Teradyne is well positioned to benefit from growing complexity in semiconductors, particularly in high-bandwidth memory and custom AI accelerators, and sees a recent robotics design win as a meaningful growth driver heading into 2026. With its leading market share, sticky customer relationships, and a robust R&D pipeline, Morningstar maintains a $115 fair value estimate, suggesting there may still be additional upside ahead.
Defense contractor Huntington Ingalls (HII) was also a key contributor to Moat Index performance in July, with shares gaining on the back of strong quarterly results and guidance. While quarterly profit declined due to temporary shipbuilding delays, revenue rose modestly, and management highlighted the arrival of key components that should allow construction to accelerate in the second half of the year. Morningstar expects gradual margin improvement over the coming years, driven by more efficient throughput and higher-margin contracts, particularly in submarine programs. With the U.S. Navy continuing to invest in shipyard capacity and submarine production, Morningstar sees durable long-term demand for Huntington Ingalls’ uniquely positioned shipbuilding operations. Following the update, Morningstar raised its fair value estimate to $324 per share, suggesting shares remain attractively priced.
Other top contributors within the Moat Index during the month include global prestige beauty market leader, Estee Lauder (EL), security products and solutions company, Allegion (ALLE), as well as semiconductor design software provider, Synopsys (SNPS).
Companies detracting the most in July came from a mix of sectors, with industrials accounting for two of the five names on the list: United Parcel Service (UPS) and fluidics equipment manufacturer IDEX Corp. (IEX). Other notable detractors included fixed-income trading platform MarketAxess (MKTX), software and analytics giant Adobe Inc. (ADBE), and enterprise cloud leader Salesforce Inc. (CRM).
Moat Index Top Contributors and Detractors - July 2025
Contributors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Teradyne Inc. | TER | Technology | 2.46 | 0.48 |
| The Estee Lauder | EL | Consumer Staples | 2.84 | 0.44 |
| Huntington Ingalls | HII | Industrials | 2.75 | 0.43 |
| Allegion | ALLE | Industrials | 2.62 | 0.40 |
| Synopsys Inc. | SNPS | Technology | 1.35 | 0.32 |
Detractors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| United Parcel Service | UPS | Industrials | 2.26 | -0.33 |
| MarketAxess Inc. | MKTX | Financials | 2.48 | -0.20 |
| Adobe Inc. | ADBE | Technology | 2.17 | -0.16 |
| IDEX Corp. | IEX | Industrials | 2.30 | -0.15 |
| Salesforce Inc. | CRM | Technology | 2.35 | -0.12 |
Source: Morningstar. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.
MOAT | VanEck Morningstar Wide Moat ETF
SMID Moat Index July Highlights: Travel Strength and M&A Activity Shine
The SMID Moat Index outpaced both the small-cap and mid-cap benchmarks in July, driven by strong stock selection across several parts of the portfolio. Industrials and consumer discretionary were standout areas, with four of the month’s top five contributors coming from these two sectors.
Norwegian Cruise Line Holdings (NCLH) topped the SMID Moat Index in July, marking its second consecutive month as a leading contributor. Shares rallied 26% as investor confidence grew around the company’s consistent pricing strength, robust travel demand, and expanding onboard spend. Morningstar believes Norwegian remains well positioned to deliver improving returns on invested capital, supported by efficient scale, cost advantages and brand loyalty across its portfolio. The company’s younger fleet and pipeline of new ships provide ongoing pricing power, while cost initiatives and scale benefits continue to support margin expansion. Morningstar maintains its fair value estimate of $31.50 per share, suggesting shares may still have room to run.
Chart Industries (GTLS), a provider of cryogenic equipment and specialty solutions used across LNG, hydrogen, and industrial gas markets, was also a top contributor to SMID Moat Index performance in July, with shares jumping 20% following news that the company had entered into a definitive agreement to be acquired by Baker Hughes. The all-cash deal, valued at $13.6 billion or $210 per share, marked a premium over Chart’s prior trading levels and sent the stock sharply higher. Morningstar views the offer price as aligned with its fair value estimate and sees the acquisition as a positive outcome for Chart shareholders, offering greater certainty than a prior bid from Flowserve. Despite softer second-quarter sales, the company’s aftermarket service business remains a key strength, and Morningstar continues to believe Chart’s specialty products and repair-driven revenue model support its economic moat.
Companies detracting the most in July within the SMID Moat Index included two names from the auto industry, with auto retailers Lithia Motors (LAD) and CarMax (KMX) weighing on performance during the month. Other notable laggards were toy manufacturer Mattel (MAT), health care supplier Baxter International (BAX), and communications provider Charter Communications (CHTR).
SMID Moat Index Top Contributors and Detractors - July 2025
Contributors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Norwegian Cruise Line | NCLH | Consumer Discretionary | 1.36 | 0.36 |
| Chart Industries Inc. | GTLS | Industrials | 1.45 | 0.31 |
| The Carlyle Group Inc. | CG | Financials | 1.50 | 0.27 |
| Generac Holdings Inc. | GNRC | Industrials | 0.73 | 0.27 |
| Wynn Resorts Ltd. | WYNN | Consumer Discretionary | 1.41 | 0.24 |
Detractors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Charter Communications | CHTR | Communication Services | 1.43 | -0.50 |
| Baxter International Inc | BAX | Health Care | 1.20 | -0.34 |
| Lithia Motors Inc | LAD | Consumer Discretionary | 1.40 | -0.21 |
| CarMax Inc | KMX | Consumer Discretionary | 1.23 | -0.20 |
| Mattel Inc | MAT | Consumer Discretionary | 1.29 | -0.18 |
Source: Morningstar. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.
SMOT | VanEck Morningstar SMID Moat ETF
Choose Your Moat Strategy
VanEck’s suite of moat investing strategies is powered by Morningstar’s equity research team, which seeks quality companies trading at attractive valuations. The below ETFs offer access to US moat companies:
VanEck Morningstar Wide ETF (MOAT): companies with a wide moat rating, which means Morningstar believes the company is likely to sustain its competitive advantage for at least the next 20 years.
VanEck Morningstar SMID Moat ETF (SMOT): small and mid-cap moat companies.
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Important Disclosures
Source for all data unless otherwise noted: Morningstar.
Fair value estimate: the Morningstar analyst's estimate of what a stock is worth. Price/Fair Value: ratio of a stock's trading price to its fair value estimate.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. 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. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Holdings will vary for the MOAT ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MOAT - VanEck Morningstar Wide Moat ETF - Holdings & Performance.
Holdings will vary for the SMOT ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: SMOT - VanEck Morningstar SMID Moat ETF - Holdings & Performance.
Holdings will vary for the MOTI ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MOTI - VanEck Morningstar International Moat ETF - Holdings & Performance.
An investor cannot invest directly in an index. Returns reflect past performance and do not guarantee future results. Results reflect the reinvestment of dividends and capital gains, if any. Certain indices may take into account withholding taxes. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® US Small-Mid Cap Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat ETF or the VanEck Morningstar SMID Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM and Morningstar® US Small-Mid Cap Moat Focus IndexSM are service marks of Morningstar, Inc.
The Morningstar® Global Markets ex-US Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar International Moat ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Global Markets ex-US Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
The Morningstar® US Broad Value Wide Moat Focus IndexSM and Morningstar® US Broad Growth Wide Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Value ETF and VanEck Morningstar Wide Moat Growth ETF and bears no liability with respect to the Funds or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® US Broad Value Wide Moat Focus IndexSM and Morningstar® US Broad Growth Wide Moat Focus IndexSM are service marks of Morningstar, Inc.
Effective June 20, 2016, Morningstar implemented several changes to the Morningstar Wide Moat Focus Index construction rules. Among other changes, the index increased its constituent count from 20 stocks to at least 40 stocks and modified its rebalance and reconstitution methodology. These changes may result in more diversified exposure, lower turnover, and longer holding periods for index constituents than under the rules in effect prior to this date. Past performance is no guarantee of future results.
The Morningstar moat-driven indexes represent various regional exposures and consist of companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
The Morningstar® Wide Moat Focus IndexSM is intended to track the overall performance of attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.
The Morningstar® US Small-Mid Cap Moat Focus IndexSM is intended to track the overall performance of small- and mid-cap companies with sustainable competitive advantages and attractive valuations according to Morningstar's equity research team.
The Morningstar® Global Markets ex-US Wide Moat Focus IndexSM is intended to track the overall performance of attractively priced wide moat rated companies outside the U.S. with sustainable competitive advantages according to Morningstar's equity research team.
The S&P SmallCap 600 Index represents small-cap US companies. The S&P Midcap 400 Index provides investors with a benchmark for mid-sized US companies. The S&P 500 Index tracks the stock performance of 500 of the largest companies listed on stock exchanges in the United States. The S&P 500 Equal Weighted Index which is an equally weighted version of the market-cap weighted S&P 500 Index. The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange.
The S&P 500®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 © 2025 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.
An investment in the VanEck Morningstar Wide Moat ETF (MOAT®) may be subject to risks which include, among others, risks related to investing in equity securities, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Morningstar SMID Moat ETF (SMOT®) may be subject to risks which include, among others, risks related to investing in equity securities, small- and medium-capitalization companies, consumer discretionary sector, financials sector, health care sector, industrials sector, information technology sector, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Small- and medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Morningstar International Moat ETF (MOTI) may be subject to risks which include, among others, risks related to investing in equity securities, consumer staples sector, industrials sector, consumer discretionary sector, health care sector, medium-capitalization companies, foreign securities, foreign currency, emerging market issuers, special risk considerations of investing in Asian, Chinese and United Kingdom issuers, depositary receipts, cash transactions, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversification index-related concentration and competitive advantage assessment risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation
Related Funds
Important Disclosures
Source for all data unless otherwise noted: Morningstar.
Fair value estimate: the Morningstar analyst's estimate of what a stock is worth. Price/Fair Value: ratio of a stock's trading price to its fair value estimate.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. 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. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
Holdings will vary for the MOAT ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MOAT - VanEck Morningstar Wide Moat ETF - Holdings & Performance.
Holdings will vary for the SMOT ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: SMOT - VanEck Morningstar SMID Moat ETF - Holdings & Performance.
Holdings will vary for the MOTI ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MOTI - VanEck Morningstar International Moat ETF - Holdings & Performance.
An investor cannot invest directly in an index. Returns reflect past performance and do not guarantee future results. Results reflect the reinvestment of dividends and capital gains, if any. Certain indices may take into account withholding taxes. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® US Small-Mid Cap Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat ETF or the VanEck Morningstar SMID Moat ETF and bears no liability with respect to the ETFs or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM and Morningstar® US Small-Mid Cap Moat Focus IndexSM are service marks of Morningstar, Inc.
The Morningstar® Global Markets ex-US Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar International Moat ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Global Markets ex-US Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
The Morningstar® US Broad Value Wide Moat Focus IndexSM and Morningstar® US Broad Growth Wide Moat Focus IndexSM were created and are maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Value ETF and VanEck Morningstar Wide Moat Growth ETF and bears no liability with respect to the Funds or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® US Broad Value Wide Moat Focus IndexSM and Morningstar® US Broad Growth Wide Moat Focus IndexSM are service marks of Morningstar, Inc.
Effective June 20, 2016, Morningstar implemented several changes to the Morningstar Wide Moat Focus Index construction rules. Among other changes, the index increased its constituent count from 20 stocks to at least 40 stocks and modified its rebalance and reconstitution methodology. These changes may result in more diversified exposure, lower turnover, and longer holding periods for index constituents than under the rules in effect prior to this date. Past performance is no guarantee of future results.
The Morningstar moat-driven indexes represent various regional exposures and consist of companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
The Morningstar® Wide Moat Focus IndexSM is intended to track the overall performance of attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.
The Morningstar® US Small-Mid Cap Moat Focus IndexSM is intended to track the overall performance of small- and mid-cap companies with sustainable competitive advantages and attractive valuations according to Morningstar's equity research team.
The Morningstar® Global Markets ex-US Wide Moat Focus IndexSM is intended to track the overall performance of attractively priced wide moat rated companies outside the U.S. with sustainable competitive advantages according to Morningstar's equity research team.
The S&P SmallCap 600 Index represents small-cap US companies. The S&P Midcap 400 Index provides investors with a benchmark for mid-sized US companies. The S&P 500 Index tracks the stock performance of 500 of the largest companies listed on stock exchanges in the United States. The S&P 500 Equal Weighted Index which is an equally weighted version of the market-cap weighted S&P 500 Index. The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange.
The S&P 500®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 © 2025 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.
An investment in the VanEck Morningstar Wide Moat ETF (MOAT®) may be subject to risks which include, among others, risks related to investing in equity securities, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Morningstar SMID Moat ETF (SMOT®) may be subject to risks which include, among others, risks related to investing in equity securities, small- and medium-capitalization companies, consumer discretionary sector, financials sector, health care sector, industrials sector, information technology sector, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Small- and medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Morningstar International Moat ETF (MOTI) may be subject to risks which include, among others, risks related to investing in equity securities, consumer staples sector, industrials sector, consumer discretionary sector, health care sector, medium-capitalization companies, foreign securities, foreign currency, emerging market issuers, special risk considerations of investing in Asian, Chinese and United Kingdom issuers, depositary receipts, cash transactions, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversification index-related concentration and competitive advantage assessment risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation