June Gains Extend Moats’ YTD Strength

 

US moat stocks were the shining stars in June.

For the Month Ending June 30, 2017

MOAT - Performance Overview

June was a strong month for investors in VanEck Vectors Morningstar Wide Moat ETF (MOAT). The Morningstar® Wide Moat Focus Index (MOAT Index) posted strong relative returns versus the S&P 500® Index in June (-0.16% vs. -2.34%) extending its outperformance for the year-to-date (7.49% versus 3.22%) finishing the first half of the year more than four percentage points ahead of the broad market index.

Attribution - Value realised in healthcare

A diverse set of companies contributed to the MOAT Index's impressive month.  At a sector level, as the largest sector in the MOAT Index, healthcare was the top contributor. Led by Amgen, Inc. (AMGN US, +10.94%) and Gilead Sciences, Inc. (GILD US, +9.95%) the sector had strong performers from various sub-industries and all 16 constituents from the sector posted positive returns in June.

In other sectors, State Street Corporation (STT US, +10.62%) was the standout from financials as banks benefited from positive stress test results. While industrial companies Stericycle, Inc. (SRCL US, -6.67%), General Electric Co. (GE US, -6.22%), and C.H. Robinson Worldwide, Inc. (CHRW US, -2.03%) all detracted from performance. Starbucks (SBUX US, -8.33%) was the worst performing constituent in June as investors soured on the company.



IMPORTANT NOTICE: Issued by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’). VanEck is a wholly owned subsidiary of Van Eck Associates Corporation based in New York, United States. VanEck Vectors ETF Trust ARBN 604 339 808 (the ‘Trust’) is the issuer of shares in the VanEck Vectors Morningstar Wide Moat ETF, ASX code: MOAT (‘US Fund’). The Trust and the US Fund are regulated by US laws which differ from Australian laws. Trading in the US Fund’s shares on ASX will be settled by CHESS Depositary Interests (‘CDIs’) which are also issued by the Trust. The Trust is organised in the State of Delaware, US. Liability of investors is limited. VanEck Associates serves as the investment adviser to the US Fund. VanEck, on behalf of the Trust, is the authorised intermediary for the offering of CDIs over the US Fund’s shares and issuer in respect of the CDIs and corresponding Fund’s shares traded on ASX.

This is general information only and not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Investing in international markets has specific risks that are in addition to the typical risks associated with investing in the Australian market. These include currency/foreign exchange fluctuations, ASX trading time differences and changes in foreign laws and tax regulations.  Before making an investment decision in relation to the US Fund you should read the PDS and with the assistance of a financial adviser consider if it is appropriate for your circumstances. The PDS is available at www.vaneck.com.au or by calling 1300 68 38 37.

Performance information: Source: VanEck, Morningstar.  Stock returns in US dollars all other returns in Australian dollars. Index returns are calculated to the last business day of the month and assume immediate reinvestment of all dividends and exclude costs associated with investing in the US Fund. You cannot invest directly in an index. Past performance is not a reliable indicator of future performance.

Investment in the US Fund may be subject to risks that include, among others, fluctuations in value due to market and economic conditions or factors relating to specific issuers. Medium capitalisation companies may be subject to elevated risks. The US Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors. The Morningstar® Wide Moat Focus Index™ was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the US Fund and bears no liability with respect to the US Fund or any security. Morningstar®, Morningstar Wide Moat Focus Index™ and Economic Moat ™ are trademarks of Morningstar, Inc. and have been licensed for use by VanEck.

Published: 09 August 2018