Yahoo Finance Should VanEck Morningstar Wide Moat ETF (MOAT) Be on Your Investing Radar?
The VanEck Morningstar Wide Moat ETF (MOAT) was launched on 04/24/2012, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Van Eck. It has amassed assets over $16.92 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.47%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.83%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 18.70% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Salesforce.com Inc (CRM) accounts for about 2.96% of total assets, followed by Wells Fargo & Co (WFC) and Equifax Inc (EFX).
The top 10 holdings account for about 27.89% of total assets under management.
Performance and Risk
MOAT seeks to match the performance of the Morningstar Wide Moat Focus Index before fees and expenses. The Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
The ETF has added roughly 2.92% so far this year and it's up approximately 13.04% in the last one year (as of 06/25/2024). In the past 52-week period, it has traded between $70.71 and $89.90.
The ETF has a beta of 1.03 and standard deviation of 19.05% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar Wide Moat ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MOAT is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $481.64 billion in assets, SPDR S&P 500 ETF has $521.50 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
Wells Fargo & Company (WFC) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
