Many investors, including the legendary Warren Buffett, espouse the virtues of embracing
Index, Debut And Assets
MOAT follows the Morningstar Wide Moat Focus Index (MWMFTR), “which is intended to track the overall performance of attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team,”
MOAT, which debuted in April 2012, is home to 44 stocks and nearly $741 million in assets under management. Although this is a passive ETF, several holdings move in and out of the fund as the momentum screen used by the ETF's underlying index turns up new opportunities. Valuation also plays a role in which companies make the coat for MOAT inclusion.
Equity Research Approach
“Another key component to Morningstar's moat-investing equity research approach is its valuation process. Morningstar equity analysts assign a fair value estimate to each company based on how much cash it believes the company may generate in the future,” said VanEck
Healthcare and consumer discretionary stocks combine for over 59 percent of MOAT's weight, while financial services and industrial stocks combine for almost 29 percent of the ETF's lineup.
MOAT's 44 holdings are equally-weighted so the ETF the top 10 holdings represent just over 27 percent of the fund's weight. That group includes well-known names such as Amazon.com, Inc.
MOAT's underlying index is about five year's older than the ETF itself and over the nine years the index has been around, it has topped the S&P 500 by an almost 2-to-1 margin,
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