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VanEck Morningstar Wide Moat ETF hits new highs as it targets undervalued moats
The ETF’s rules are designed to buy wide-moat U.S. large caps only when Morningstar analysts judge them to be trading at an attractive price versus fair value.
VanEck Morningstar Wide Moat ETF, ticker MOAT, is breaking out to new highs, with the premise that a “wide moat” portfolio can be a steadier alternative for a tech-heavy market, according to Yahoo Finance.
The article says MOAT targets U.S. large-cap companies with structural competitive advantages, such as patents, brand strength, customer switching costs, or network effects, and that Morningstar analysts only include stocks when they appear attractively priced relative to fair value.
It also highlights that the fund uses an equal-weight approach across holdings, aiming to provide broad large-cap exposure rather than concentrating on a small set of mega-cap technology firms.
According to Yahoo Finance, MOAT’s systematic rebalancing includes selling companies that become overvalued and buying those trading at discounts, which the piece argues can act as a value-oriented buffer during higher inflation and choppier economic cycles.