(MOAT) VanEck Morningstar Wide Moat - Ratings and Ratios

The VanEck Morningstar Wide Moat ETF (BATS: MOAT) is designed to capture the performance of companies with sustainable competitive advantages, a concept Morningstar refers to as wide moat firms. The fund typically allocates at least 80% of its assets to securities in its benchmark index, which is built using Morningstars proprietary methodology. This methodology combines quantitative metrics—like profit margins, returns on capital, and revenue growth—with qualitative assessments of a companys intangible assets, such as brand strength, intellectual property, and customer loyalty. Morningstar assigns an economic moat rating to companies, categorizing them as having a wide, narrow, or no moat based on their ability to maintain competitive advantages over a long period.

The ETF is part of the Large Blend category, focusing on U.S. equities, and is listed on the BATS exchange under the ticker MOAT. With an AUM of approximately $14.76 billion, it is one of the larger ETFs in its category. The funds structure allows it to provide exposure to a diversified portfolio of companies that Morningstar believes have the potential for sustained growth and profitability due to their strong competitive positions. This makes it a potential tool for investors seeking to incorporate a quality growth strategy into their portfolios.

From an investment perspective, MOAT offers a way to tap into Morningstars equity research, which is known for its fundamental analysis and long-term focus. The ETFs benchmark index is rebalanced semi-annually, ensuring that the portfolio remains aligned with Morningstars latest assessments of which companies possess the most durable competitive advantages. For fund managers and investors, MOAT provides a liquid and cost-efficient way to gain exposure to a curated list of wide-moat companies, potentially serving as a core or satellite holding in a diversified equity portfolio.