MVAL and MGRO join MOAT and other ETFs in suite of funds built
around Morningstar’s proven strategy of identifying quality
companies with distinct economic moats trading at attractive
valuations
VanEck today added two new ETFs to its “moat”-focused ETF
lineup: the VanEck Morningstar Wide Moat Value ETF (MVAL) and the
VanEck Morningstar Wide Moat Growth ETF (MGRO).
“Investors and advisors have embraced the moat-focused approach
to identifying quality companies trading at attractive valuations,
and today we’re excited to extend that approach with the launch of
MVAL and MGRO. These moat-focused ETFs allow investors to fine-tune
their portfolios toward distinct style exposures, while maintaining
a focus on valuations,” said Brandon Rakszawski, Director of
Product Management with VanEck.
Both ETFs track indexes powered by Morningstar’s equity research
team, which researches and assigns an economic moat rating to
companies based on their ability to fend off competition and
maintain profitability into the future. To reach “wide moat”
status, Morningstar must expect a company to maintain its
competitive advantages for at least 20 years. Additionally,
Morningstar’s index construction approach takes valuation into
account, focusing exposure on those companies trading at attractive
prices relative to Morningstar’s estimate of fair value.
“We’re excited to be able to build on our successful long-term
collaboration with VanEck by introducing two new moat-focused
indexes. These two indexes harness the research insight of
Morningstar equity analysts via a disciplined, repeatable
construction methodology designed by Morningstar Indexes, the
fastest growing index provider globally,” said Andrew Lane,
Director of Equity Research Index Strategies for Morningstar.
Companies eligible for inclusion in both underlying indexes must
have a wide moat rating and attractive valuation according to
Morningstar. While the Morningstar US Broad Value Wide Moat Focus
Index, which MVAL seeks to track, includes value-oriented
companies, the Morningstar US Broad Growth Wide Moat Focus Index,
which MGRO seeks to track, includes growth-oriented companies. This
ensures a consistent style exposure over time for each respective
index and ETF.
MVAL and MGRO join a suite of ETFs that traces its roots to
2012, when VanEck launched the VanEck Morningstar Wide Moat ETF
(MOAT), a fund with close to $15B in AUM (as of 3/27/2024). Its
underlying index, the Morningstar Wide Moat Focus Index has
delivered performance besting that of the S&P 500 Index over
the past decade.
“Since its introduction, MOAT has, at various points, leaned
more towards growth than value and vice versa. Now, with the
addition of MVAL and MGRO, investors have a more complete
moat-focused toolset to allocate to the exposures that they believe
are best positioned for potential outperformance,” said Rakszawski.
“Being a mega-cap company doesn’t always equate to having a wide
economic moat, so for investors who are looking for growth
strategies but are concerned about overconcentration among a
handful of names in traditional passive growth ETFs, MGRO may be
worth a closer look.”
In addition to MOAT, VanEck’s moat investing suite also includes
the VanEck Morningstar Global Wide Moat ETF (MOTG), VanEck
Morningstar International Moat ETF (MOTI), VanEck Morningstar SMID
MOAT ETF (SMOT), VanEck Morningstar ESG Moat ETF (MOTE) and the
mutual fund, VanEck Morningstar Wide Moat Fund.
The VanEck team provides regular updates and insights into
moat-focused investing available here.
About VanEck
VanEck has a history of looking beyond the financial markets to
identify trends 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 February 29, 2024, VanEck managed approximately
$92.5B 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
This is not an offer to buy or sell, or a recommendation to buy
or sell any of the securities, financial instruments or digital
assets mentioned herein. The information presented does not involve
the rendering of personalized investment, financial, legal, tax
advice, or any call to action. Certain statements contained herein
may constitute projections, forecasts and other forward-looking
statements, which do not reflect actual results, are for
illustrative purposes only, are valid as of the date of this
communication, and are subject to change without notice. Actual
future performance of any assets or industries mentioned are
unknown. 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. The information herein
represents the opinion of the author(s), but not necessarily those
of VanEck or its other employees.
An investor cannot invest directly in an index. Returns reflect
past performance and do not guarantee future results. Results
reflect the reinvestment of dividends and capital gains, if any.
Certain indices may take into account withholding taxes. Index
returns do not represent Fund returns. The Index does not charge
management fees or brokerage expenses, nor does the Index lend
securities, and no revenues from securities lending were added to
the performance shown.
The Morningstar® Wide Moat Focus IndexSM and Morningstar® US
Small-Mid Cap Moat Focus IndexSM were created and are maintained by
Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse,
issue, sell, or promote the VanEck Morningstar Wide Moat ETF or the
VanEck Morningstar SMID Moat ETF and bears no liability with
respect to the ETFs or any security. Morningstar® is a registered
trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM
and Morningstar® US Small-Mid Cap Moat Focus IndexSM are service
marks of Morningstar, Inc
The Morningstar® US Broad Value Wide Moat Focus IndexSM and
Morningstar® US Broad Growth Wide Moat Focus IndexSM were created
and are maintained by Morningstar, Inc. Morningstar, Inc. does not
sponsor, endorse, issue, sell, or promote the VanEck Morningstar
Wide Moat Value ETF and VanEck Morningstar Wide Moat Growth ETF and
bears no liability with respect to the Funds or any security.
Morningstar® is a registered trademark of Morningstar, Inc.
Morningstar® US Broad Value Wide Moat Focus IndexSM and
Morningstar® US Broad Growth Wide Moat Focus IndexSM are service
marks of Morningstar, Inc.
Effective June 20, 2016, Morningstar implemented several changes
to the Morningstar Wide Moat Focus Index construction rules. Among
other changes, the index increased its constituent count from 20
stocks to at least 40 stocks and modified its rebalance and
reconstitution methodology. These changes may result in more
diversified exposure, lower turnover, and longer holding periods
for index constituents than under the rules in effect prior to this
date. Past performance is no guarantee of future results.
The Morningstar moat-driven indexes represent various regional
exposures and consist of companies identified as having
sustainable, competitive advantages and whose stocks are
attractively priced, according to Morningstar.
The Morningstar® Wide Moat Focus IndexSM Intended to track the
overall performance of attractively priced companies with
sustainable competitive advantages according to Morningstar's
equity research team.
Morningstar® US Broad Value Wide Moat Focus IndexSM: consists of
at least 30 U.S. value-oriented companies identified as having
sustainable, competitive advantages, and whose stocks are the most
attractively priced, according to Morningstar.
Morningstar® US Broad Growth Wide Moat Focus IndexSM: consists
of at least 30 U.S. growth-oriented companies identified as having
sustainable, competitive advantages, and whose stocks are the most
attractively priced, according to Morningstar.
The S&P 500 Index consists of 500 widely held common stocks
covering industrial, utility, financial and transportation
sector.
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 Van Eck
Associates Corporation. Copyright ©2024 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.
An investment in the VanEck Morningstar Wide Moat Value ETF
(MVAL) may be subject to risks which include, among others, risks
related to investing in equity securities, value style investing,
financials sector, health care sector, industrials sector, large-
and medium-capitalization companies, market, operational, index
tracking, authorized participant concentration, new fund, no
guarantee of active trading market, trading issues, passive
management, fund shares trading, premium/discount and liquidity of
fund shares, non-diversified, and index-related concentration
risks, all of which may adversely affect the Fund. Large- and
medium-capitalization companies may be subject to elevated risks.
The Fund’s value strategy may result in the Fund investing in
securities or industry sectors that underperform the market as a
whole. Furthermore, the value companies identified by the Index
provider may not operate as expected, and there is no guarantee
that the index provider’s proprietary valuation model will perform
as intended.
An investment in the VanEck Morningstar Wide Moat Growth ETF
(MGRO) may be subject to risks which include, among others, risks
related to investing in equity securities, growth style investing,
consumer discretionary sector, industrials sector, financials
sector, large- and medium-capitalization companies, health care
sector, information technology sector, market, operational, index
tracking, authorized participant concentration, new fund, no
guarantee of active trading market, trading issues, passive
management, fund shares trading, premium/discount and liquidity of
fund shares, non-diversified, and index-related concentration risk,
all of which may adversely affect the Fund. Large- and
medium-capitalization companies may be subject to elevated risks.
The Fund’s growth strategy may result in the Fund investing in
securities or industry sectors that underperform the market as a
whole. Furthermore, the growth companies identified by the Index
provider may not operate as expected, and there is no guarantee
that the index provider’s proprietary valuation model will perform
as intended.
The principal risks of investing in VanEck ETFs and mutual funds
include, but are not limited to, sector, market, economic,
political, foreign currency, world event, index tracking, active
management, social media analytics, derivatives, blockchain,
commodities and non-diversification risks, as well as fluctuations
in net asset value and the risks associated with investing in less
developed capital markets. VanEck ETFs may also be subject to
authorized participant concentration, no guarantee of active
trading market, trading issues, passive management, fund shares
trading, premium/discount risk and liquidity of fund shares risks.
VanEck ETFs or mutual funds may loan their securities, which may
subject them to additional credit and counterparty risk. ETFs or
mutual funds that invest in high-yield securities are subject to
subject to risks associated with investing in high-yield
securities; which include a greater risk of loss of income and
principal than funds holding higher-rated securities; concentration
risk; credit risk; hedging risk; interest rate risk; and short sale
risk. ETFs or mutual funds that invest in companies with small
capitalizations are subject to elevated risks, which include, among
others, greater volatility, lower trading volume and less liquidity
than larger companies.
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.com. Please read the prospectus and
summary prospectus carefully before investing.
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Chase Kosinski Craft & Capital chase@craftandcapital.com