SMID-Cap Moats Outpace Large-Caps in August
September 09, 2025
Read Time 7 MIN
Key Takeaways:
- Moat Index rose 1.7%, with semis & healthcare offsetting energy headwinds.
- Monolithic Power and Zimmer Biomet were top Moat Index contributors.
- SMID Moat Index gained 3.1%, outpacing large-cap and equal-weight peers.
- Wynn Resorts and Expedia led SMID Moat gains as consumer demand stayed strong.
In August, U.S. equity markets extended their summer rally, posting a fourth consecutive month of gains as the S&P 500 advanced 2.0% to notch another record high. Market momentum was supported by continued strength in corporate earnings, resilient consumer spending, and moderating inflation data. Investor optimism was tempered somewhat by ongoing trade negotiations and a mixed set of labor market readings, which revealed both steady job growth and further downward revisions to prior reports. Most sectors posted gains in August, with Materials and Healthcare leading the way. The Federal Reserve held interest rates steady for a third consecutive meeting, though expectations for potential cuts later this year grew stronger as inflation pressures eased. Additionally, small cap leadership signals a healthier, broader rally beyond mega-cap tech.
The Morningstar Wide Moat Focus Index (the “Moat Index”) participated in the August rally along with the broader equity market, posting a gain of 1.7% for the month. The Moat Index lagged the S&P 500 and equal weighted benchmarks slightly, which returned 2.0% and 2.7%, respectively. 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.
Small cap stocks saw advances during the month, as comments by the Fed at the Jackson Hole symposium reignited hopes for rate cuts and boosted rate-sensitive small caps. The Morningstar US Small-Mid Cap Moat Focus Index (the “SMID Moat Index”) posted a 3.1% gain in August, outpacing both large-cap and equal weighted benchmarks.
Small Caps Lead the Pack in August
Source: Morningstar. Data as of 8/31/2025. 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 August Highlights: Semiconductors and Joints Drive Gains
In August, sector positioning, more than individual stock selection shaped the Moat Index’s performance. Energy extended its rebound on higher oil prices and strong commodity demand, and the Moat Index has no exposure to this sector. However, positive stock selection within the health care segment as well as strong earnings from several moat companies helped offset sector exposure headwind.
Wide-moat semiconductor producer Monolithic Power Systems (MPWR) was the top contributor to the Moat Index in August, with second-quarter results beating guidance, and management provided a strong third-quarter outlook. Revenue rose 31% year over year and 4% sequentially to $665 million. The midpoint of third-quarter guidance implies 16% year-over-year and 8% sequential growth. Morningstar believes Monolithic Power Systems is a disruptor in the power management chip market, using its proprietary process technology to differentiate from larger competitors. With ramps of new products in data centers and autos, Morningstar raised its fair value estimate to $804 per share after raising their medium-term growth forecast.
Healthcare manufacturer Zimmer Biomet (ZBH) was also a key contributor to Moat Index performance in August, with shares gaining on the back of strong quarterly results and guidance. The firm continues to make steady progress in its core businesses, helped along by adoption of innovation in its hip and knee devices. As the undisputed king of large-joint reconstruction, Morningstar expects aging baby boomers and improving technology suitable for younger patients to fuel solid demand for large-joint replacement that should offset price declines. Morningstar maintains a $130 fair value estimate, as lower tariff burden and working capital improvements are largely offset by the higher cost of absorbing Paragon 28. Shares seem moderately undervalued.
Other top contributors within the Moat Index during the month include semiconductor testing company, Teradyne (TER), global technology leader, Alphabet (GOOGL), as well as chip maker, NXP Semiconductors (NXPI).
Companies detracting the most in August came from a mix of sectors, with technology and financials each accounting for two of the five names on the list. Notable detractors included Applied Materials (AMAT), software giant Oracle (ORCL), fixed-income trading platform MarketAxess (MKTX), credit reporting agency TransUnion (TRU), and International Flavors & Fragrances. (IFF).
Moat Index Top Contributors and Detractors - August 2025
Contributors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Monolithic Power Systems Inc | MPWR | Technology | 2.54 | 0.44 |
| Zimmer Biomet Holdings Inc | ZBH | Healthcare | 2.16 | 0.34 |
| Teradyne Inc | TER | Technology | 2.84 | 0.29 |
| Alphabet Inc Class A | GOOGL | Communication Services | 2.57 | 0.28 |
| NXP Semiconductors NV | NXPI | Technology | 2.34 | 0.23 |
Detractors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Applied Materials Inc | AMAT | Technology | 2.60 | -0.27 |
| MarketAxess Holdings Inc | MKTX | Financials | 2.21 | -0.23 |
| Oracle Corp | ORCL | Technology | 1.86 | -0.20 |
| TransUnion | TRU | Financials | 2.57 | -0.18 |
| International Flavors & Fragrances Inc | IFF | Basic Materials | 2.07 | -0.10 |
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 August Highlights: Gaming and Travel Lead the Way
The SMID Moat Index performance in August was driven by strong stock selection across several parts of the portfolio. Consumer discretionary was the standout area, with four of the month’s top five contributors coming from this sector. Amid the Federal Reserve drama and deluge of corporate earnings in August, one clear but overlooked trend emerged in U.S. equities: the rotation out of expensive tech stocks and into cheaper small caps, with a S&P SmallCap 600 index monthly gain of 7.1%.
Wynn Resorts (WYNN) topped the SMID Moat Index in August, as the company continues to see resilient demand despite an uncertain economic landscape. Macao gaming revenue saw a 19% rise in July. Morningstar believes the company's focus on a premium offering continues to resonate with consumers. In Macao, demand continues to gradually recover, with Wynn's high-end iconic brand positioned to participate, leading to a low-teens percentage gross gaming revenue share in 2024. Morningstar raised its fair value estimate from $107 to $110 on improved 2025 Macao revenue.
Expedia Group (EXPE), the leading global online travel company, was also a top contributor to SMID Moat Index performance in August, with the catalyst being an announcement of a partnership with a leading cloud provider to enhance its booking platform’s capabilities. Over the past two decades, Expedia has built a strong network of properties (the supply side of the network effect equation), which has driven strong end-user traffic and bookings (demand side of the network effect equation). After reviewing second-quarter results, Morningstar has increased their fair value estimate from $207 to $222 to reflect higher sales in 2025.
Companies detracting the most in August from the SMID Moat Index included two names from industrials, with CNH Industrial (CNH) and critical digital infrastructure provider Vertiv Holdings (VRT) weighing on performance during the month. Other notable laggards were semiconductor company Marvell Technology (MVRL), MarketAxess Holdings (MKTX), and real estate investment trust SBA Communications (SBAC).
SMID Moat Index Top Contributors and Detractors - August 2025
Contributors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Wynn Resorts Ltd | WYNN | Consumer Discretionary | 1.64 | 0.27 |
| Expedia Group Inc | EXPE | Consumer Discretionary | 1.37 | 0.27 |
| BorgWarner Inc | BWA | Consumer Discretionary | 1.55 | 0.25 |
| Monolithic Power Systems Inc | MPWR | Technology | 1.42 | 0.25 |
| Lithia Motors Inc Class A | LAD | Consumer Discretionary | 1.19 | 0.20 |
Detractors
| Company | Ticker | Sector | Avg. Weight (%) | Contribution (%) |
| Marvell Technology Inc | MVRL | Technology | 0.76 | -0.16 |
| CNH Industrial NV | CNH | Industrials | 1.30 | -0.15 |
| Vertiv Holdings Co Class A | VRT | Industrials | 1.13 | -0.14 |
| MarketAxess Holdings Inc | MKTX | Financials | 1.23 | -0.13 |
| SBA Communications Corp Class A | SBAC | Real Estate | 1.32 | -0.11 |
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.
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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.
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.
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.
Holdings will vary for the MVAL ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MVAL - VanEck Morningstar Wide Moat Value ETF - Holdings.
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 was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Value ETF and bears no liability with respect to the Fund or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® US Broad Value Wide Moat Focus IndexSM is a service mark 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.
Morningstar® US Broad Value Wide Moat Focus IndexSM: consists of at least 30 U.S. value-oriented companies identified as having sustainable, competitive advantages, and whose stocks are the most attractively priced, according to Morningstar.
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 ©2024 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 https://www.spglobal.com/spdji/en/. 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.
An investment in the VanEck Morningstar Wide Moat Value ETF (MVAL) may be subject to risks which include, among others, risks related to investing in equity securities, value style investing, financials sector, health care sector, industrials sector, large- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Large- and medium-capitalization companies may be subject to elevated risks. The Fund’s value strategy may result in the Fund investing in securities or industry sectors that underperform the market as a whole. Furthermore, the value companies identified by the Index provider may not operate as expected, and there is no guarantee that the index provider’s proprietary valuation model will perform as intended.
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.
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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.
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.
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.
Holdings will vary for the MVAL ETF and its corresponding Index. For a complete list of holdings in the ETF, please click here: MVAL - VanEck Morningstar Wide Moat Value ETF - Holdings.
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 was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Value ETF and bears no liability with respect to the Fund or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® US Broad Value Wide Moat Focus IndexSM is a service mark 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.
Morningstar® US Broad Value Wide Moat Focus IndexSM: consists of at least 30 U.S. value-oriented companies identified as having sustainable, competitive advantages, and whose stocks are the most attractively priced, according to Morningstar.
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 ©2024 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 https://www.spglobal.com/spdji/en/. 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.
An investment in the VanEck Morningstar Wide Moat Value ETF (MVAL) may be subject to risks which include, among others, risks related to investing in equity securities, value style investing, financials sector, health care sector, industrials sector, large- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Large- and medium-capitalization companies may be subject to elevated risks. The Fund’s value strategy may result in the Fund investing in securities or industry sectors that underperform the market as a whole. Furthermore, the value companies identified by the Index provider may not operate as expected, and there is no guarantee that the index provider’s proprietary valuation model will perform as intended.
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.