Kol Estreicher, Regional Vice President, ETF Investment Specialist at VanEck joined Keith Black, Managing Director, RIA Channel to discuss the investment strategy behind Wide Moat ETF (MOAT) and recently launched SMID Moat ETF (SMOT).
The VanEck Morningstar Wide Moat ETF (MOAT) seeks companies with sustainable competitive advantages or “moats” at attractive valuations. The underlying index, driven by by Morningstar’s rigorous equity research team, aims to identify companies with long-term moats such as intangible asset value, opportunity costs, the networking effect, cost advantage and efficient scale relative to the competition. MOAT’s portfolio includes roughly 40 stocks with a wide moat rating at attractive valuations and is rebalanced quarterly. While companies with wide moats tend to skew large cap, The VanEck Morningstar SMID Moat ETF (SMOT) aims to capture the small and mid cap moat companies that are not represented in the wide moat index.
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Important Disclosures
The views and opinions expressed are those of the speaker and are current as of the video’s posting date, and are not necessarily those of VanEck or its employees. Video commentaries are general in nature and should not be construed as investment advice. References to specific securities and their issuers or sectors are for illustrative purposes only. This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.
Please note, while it is mentioned in this video that Warren Buffet originated the concept of an economic “moat,” he has not personally been involved with nor has he endorsed any of the content discussed in this video or the VanEck Morningstar Wide Moat ETF (“MOAT”) or the VanEck Morningstar SMID Moat ETF (“SMOT”).
An investment in the VanEck Morningstar Wide Moat ETF (“MOAT”) may be subject to risks which include, among others, investing in equity securities, consumer discretionary, consumer staples, health care, industrials and information technology sectors, medium-capitalization companies, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and concentration risks, which may make these investments volatile in price or difficult to trade. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Morningstar SMID MOAT ETF (“SMOT”) may be subject to risks which include, among others, equity securities, small- and medium-capitalization companies, consumer discretionary sector, financials sector, health care sector, industrials sector, information technology sector, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and concentration risks, all of which may adversely affect the Fund. Small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck/etf.com. Please read the prospectus and summary prospectus carefully before investing.
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