VanEck Marks a Decade of Live Trading for Its Flagship Moat-Focused Strategy

VanEck Morningstar Wide Moat ETF (MOAT) now has a 10-year track record, over $7 billion in assets under management and strong long-term performance that has resonated with investors

Yesterday, VanEck celebrated the 10th anniversary of the launch of the VanEck Morningstar Wide Moat ETF (MOAT), one of the firm’s flagship equity products that provides investors with targeted exposure to those U.S.-listed companies that are both attractively valued and which have built sustainable, long-term competitive advantages, i.e. “wide moats.”

Tracking an index powered by Morningstar’s forward-looking, rigorous equity research process, MOAT has grown to more than $7 billion in assets under management as of April 21, 2022 and has earned a 4-star Morningstar rating in the Large Blend fund category over the past 3-year and 5-year periods, as well overall for the life of the fund.

“The concept of wide-moat investing puts into practice a timeless investment philosophy of recognizing the potential in those businesses that have managed to build significant, sustainable ‘moats’ versus their competition,” said Brandon Rakszawski, Vice President of ETF Product Management with VanEck. “But in offering MOAT, we wanted to ensure that we were not only providing investors with exposure to those companies that built wide moats, but that were also trading at attractive prices relative to the estimates of their fair value. That combination has served MOAT well over the past decade, and we’re thrilled to be marking this milestone.”

MOAT tracks the Morningstar Wide Moat Focus Index (MWMFTR), which is powered by research from more than 100 Morningstar analysts globally, and selects U.S. companies based on their Economic Moat and fair value research. The portfolio typically includes around 50 names (currently 52) and is reviewed quarterly.

“We are proud that we have been able to offer a unique and innovative index driven by the many strengths of Morningstar to support VanEck’s ETF offering,” said Morningstar Indexes Head of Global Sales Amelia Furr. “Our Wide Moat Focus Index enjoys access to the forward-looking insights of Morningstar’s industry leading equity research team, which delivers incredible intelligence in an index wrapper.”

Since MOAT’s inception on April 24, 2012 through March 31, 2022, MOAT has delivered strong annualized performance of more than 15.5%, outpacing the S&P 500 over that same time frame by approximately 50 basis points per year on average.

VanEck has also since expanded their moat-focused product lineup with the launches of MOTI and MOTG, international and global versions, respectively, of the same strategy underpinning MOAT, and the newest addition to the fund family, the VanEck Morningstar ESG Moat ETF (MOTE), which layers on an ESG screen in addition to the traditional MOAT methodology.

“Over the last decade, our MOAT-focused investing has proven to be a powerful tool in navigating the shifting performance seen across the value and growth categories, as well as in weathering the storms of a volatile equity market, as the strategy focuses on companies with competitive advantages that are also attractively priced, offering attractive risk and return characteristics through market downturns,” added Rakszawski. “The current climate seems to be one that should also see companies with proven moats and attractive valuations continue to play a key role in a well-constructed equity portfolio.”

The VanEck and Morningstar teams provide regular updates and insights on their MOAT equity research and moat-style investing, which can be accessed here.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of March 31, 2022, VanEck managed approximately $85.5 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

Important Disclosures

An investment in MOAT may be subject to risks which include, among others, investing in equity securities, consumer discretionary, consumer staples, financials, 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.

MOTE’s ESG strategy could cause it to perform differently compared to funds that do not have an ESG focus. The Fund’s ESG strategy may result in the Fund investing in securities or industry sectors that underperform other securities or underperform the market as a whole. The companies included in the US Sustainability Moat Focus Index may differ from companies included in other indices that use similar ESG screens. The Fund is also subject to the risk that the companies identified by the Index provider do not operate as expected when addressing ESG issues. Additionally, the Index provider’s proprietary valuation model may not perform as intended, which may adversely affect an investment in the Fund. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on the Fund’s ability to invest in accordance with its ESG strategy.

An investment in the MOTE may be subject to risks which include, among others, ESG investing strategy risks, investing in equity securities, consumer discretionary, financials, industrials and information technology sectors, medium-capitalization companies, market, operational, high portfolio turnover, index tracking, authorized participant concentration, new fund, absence of prior active 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 MOTI may be subject to risks which include, among others, in equity securities, communication services, consumer discretionary, consumer staples, financials and health care sectors, medium-capitalization companies, foreign securities, foreign currency, special risk considerations of investing in Asian, Chinese, European and emerging market issuers, depositary receipts, cash transactions, market, operational, high portfolio turnover, 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. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Medium-capitalization companies may be subject to elevated risks.

An investment in MOTG may be subject to risks which include, among others, investing in equity securities, consumer staples, health care, industrials and information technology sectors, medium-capitalization companies, foreign securities, foreign currency, special risk considerations of investing in European issuers, depositary receipts, market, operational, high portfolio turnover, 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-diversified, and concentration risks, which may make these investments volatile in price or difficult to trade. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns.

The performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Please call 800.826.2333 or visit vaneck.com for performance current to the most recent month ended.

The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.

The S&P 500® Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sector; as an Index, it is unmanaged and is not a security in which investments can be made.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by VanEck Associates Corporation. Copyright © 2021 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Certain indices may take into account withholding taxes. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses. Index returns assume that dividends have been reinvested.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund’s investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck ETFs carefully before investing.

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