VanEck Blog & Insights

VanEck Vectors Morningstar Wide Moat ETF MOAT

Fund description: The VanEck Vectors Morningstar Wide Moat ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus IndexTM (MWMFTR). The index is intended to track the overall performance of attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.

Index description: MWMFTR is a rules-based, equal-weighted index intended to offer exposure to attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.

Management style: Replication

  as at 21-Feb-19

  • Exchange

    ASX
  • ASX code

    MOAT
  • Bloomberg index code

    MWMFTR
  • Index provider

    Morningstar
  • NAV1

    $65.65
  • Shares outstanding1

    42,700,000
  • Net assets1

    $2.8B
  • Number of holdings

    49
  • NYSE commencement

    24-Apr-12
  • ASX commencement

    26-Jun-15

1Calculated daily after the NYSE has closed for that day. The NAV is calculated based on the US dollar and then converted to Australian dollars based on the relevant London WM Reuters 4pm exchange rate. This information is generally not updated until around 9am next business day. 

 

as at 21-Feb-19

Key points

Underlying Index:

Morningstar® Wide Moat Focus IndexSM

Index composition:

The Index contains at least 40 attractively priced US companies with sustainable competitive advantages according to Morningstar's equity research team.

Companies eligible for inclusion in the Index:

  • Derived from Morningstar® US Market IndexSM (Parent Index)
  • Assigned an Economic Moat rating of wide by Morningstar’s equity research team
  • Assigned a fair value estimate by Morningstar's equity research team

Methodology highlights:

  • Staggered reconstitution
    • Index is divided into two equally-weighted sub-portfolios, and each is reconstituted and rebalanced semi-annually on alternating quarters
    • Each sub-portfolio will contain 40 equally-weighted securities at its semi-annual reconstitution and weights will vary with market prices until the next reconstitution date.
    • Each sub-portfolio is reweighted to 50% of the total index every six months.
     
  • Buffer rule
    • At each quarterly review, current index constituents ranked within the top 150% of the eligible universe based on current market price/fair value ratio are given preference for inclusion
    • From among the remaining eligible securities, those with the lowest current market price/fair value ratios are included in the index
     
  • Sector cap: The greater of 40% or corresponding weight in Parent Index + 10%

 

Index Provider:

Morningstar, Inc.

Index profile  

  • Bloomberg index code

    MWMFTR
  • Inception date

    14-Feb-07
  • Reconstitution frequency

    Semi-Annually, Staggered quarterly

Top ten index constituents (%) as at 31-Jan-19

Total constituents: 49
Constituent name
Ticker
Weightings (%)
STARBUCKS CORP
SBUX US
2.82
FACEBOOK INC-A
FB US
2.73
GENERAL MILLS INC
GIS US
2.73
KLA-TENCOR CORPORATION
KLAC US
2.72
APPLIED MATERIALS INC
AMAT US
2.69
MONDELEZ INTERNATIONAL INC-A
MDLZ US
2.67
JONES LANG LASALLE INC
JLL US
2.62
MICROCHIP TECHNOLOGY INC
MCHP US
2.59
SALESFORCE.COM INC
CRM US
2.58
WALT DISNEY CO/THE
DIS US
2.54
Top ten total (%) 26.69
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Jan-19

  • Country

    Weightings (%)
  • UNITED STATES

    100.0
  • Total

    100.0

Index sector weightings (%) as at 31-Jan-19

  • Sector

    Weightings (%)
  • Health Care

    21.4
  • Information Technology

    20.8
  • Consumer Staples

    15.3
  • Financials

    12.1
  • Communication Services

    8.9
  • Consumer Discretionary

    7.9
  • Industrials

    6.2
  • Real Estate

    2.6
  • Utilities

    2.5
  • Materials

    2.3
  • Total

    100.0

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 MOAT fund and bears no liability with respect to MOAT or any security. Morningstar® and Morningstar Wide Moat Focus Index™ are trademarks of Morningstar, Inc. and have been licensed for use by VanEck.