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    MOAT attribution in May

    Brett Liddell, CFA
    15 June 2017

    For the month ending 31 May, 2017

    Performance overview

    The US equity Morningstar® Wide Moat Focus IndexTM MOAT Index lagged the S&P 500 Index in May (0.97% vs. 2.20%). Despite this underperformance, the US Moat Index remains ahead of the S&P 500 Index year-to-date (10.68% vs. 8.66%).  VanEck's Morningstar Wide Moat ETF (ASX code: MOAT) tracks the MOAT Index.

    Performance attribution: Ups and downs

    McKesson Corp (MCK US, +17.93%) rebounded in May after facing headwinds in previous quarters. The firm posted solid results for its fiscal fourth quarter which Morningstar equity analysts believe reaffirms their view of the company’s long-term fundamentals. MCK US was the top performer in the US MOAT Index in May and remained undervalued in Morningstar’s view at month end. In terms of sector performance in May, information technology was the top contributor to the US MOAT Index’s performance, with all five sector constituents posting positive performance. By contrast financials, consumer staples, real estate, consumer discretionary and materials sectors all detracted from US MOAT Index performance in May and were the reason for the Index’s underperformance relative to the S&P 500 Index. Twenty-First Century Fox, Inc. (FOXA US, -11.20%) was the worst performing index constituent in May, primarily due to disappointing fiscal third quarter results driven by its film studio unit.


    Important disclosure

    This commentary is not intended as a recommendation to buy or to sell any of the named securities. Holdings will vary for the MOAT and the MOAT Index.

    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 (‘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 information is general in nature and not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision investors should read the product disclosure statement and with the assistance of a financial adviser consider if it is appropriate for their circumstances. A copy of the PDS will be available after the end of the exposure period at www.vaneck.com.au or by calling 1300 68 38 37.

    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.