Vaneck Moat Investment Portfolio Breakdown

The Vaneck Moat portfolio is designed to capture the benefits of companies with sustainable competitive advantages, also known as economic moats.

This portfolio is comprised of 35 stocks, with a focus on industries such as technology, consumer staples, and healthcare.

These companies have demonstrated a strong ability to maintain their market position and continue to generate profits over time.

The portfolio is managed by the experienced team at Vaneck, who have a deep understanding of the factors that contribute to a company's economic moat.

Investors who are looking for a diversified portfolio with a focus on long-term growth may find the Vaneck Moat portfolio to be a suitable option.

The VanEck Morningstar Wide Moat ETF has shown impressive performance over the years. As of September 20, 2024, the 1-year annualized return was 29.02%.

The 3-year annualized return was 10.96%, which is slightly lower than the S&P 500's 11.91%. The 5-year annualized return was 15.47%, while the 10-year annualized return was 13.49%, both of which are close to the S&P 500's returns of 15.98% and 13.38%.

Here's a comparison of the VanEck Morningstar Wide Moat ETF's performance with the S&P 500 index over different time periods:

Let's take a closer look at the stock sector breakdown. Technology accounts for 22.48% of the total weighting.

The Technology sector has a return range of 0.00% to 48.94%. This is a significant range, indicating the potential for substantial growth or decline.

Healthcare is the second-largest sector, making up 17.36% of the total weighting. Its return range is similarly impressive, spanning from 0.00% to 52.29%.

Consumer Defense has a relatively low MOAT % Rank of 2.46%, indicating a lower level of competitive advantage.

Here's a breakdown of the top 5 sectors by weighting:

The Financial Services sector has a very high MOAT % Rank of 94.92%, indicating a strong level of competitive advantage.

The VanEck Morningstar Wide Moat ETF has a unique approach to investing, focusing on companies with wide economic moats and fair market values.

The ETF's holdings are selected through a process that starts by identifying companies from the broader Morningstar US Market Index, then narrowing down to those with a "wide" economic moat rating and a "fair value" estimate by Morningstar analysts.

The ETF constructs its portfolio by selecting as many as 40 companies, which are divided into two sub-portfolios, each equally weighted and adhering to sector constraints.

The ETF's holdings are rebalanced semi-annually, with each sub-portfolio reconstituted on a staggered quarterly schedule.

As of October 2024, the VanEck Morningstar Wide Moat ETF included 55 holdings, all equally weighted at each rebalancing period.

Here are some of the notable wide moat stocks currently included in its holdings:

The ETF's expense ratio is 0.47%, including a management fee of 0.45% and other expenses totaling 0.02%.

For a $10,000 investment in VanEck's ETF, this translates to an annual cost of about $47.

Here's a look at the ETF's historical performance over one, three, five, and 10-year trailing periods vs. the S&P 500 index:

Investing in the VanEck Morningstar Wide Moat ETF can be a great way to complement your core investment holdings with a "satellite" strategy.

The ETF focuses on companies identified as having wide economic moats and fair market values, making it ideal for long-term ETF investors.

Its high active share indicates that its holdings are quite different from the broader market indexes, potentially offering unique advantages and risks.

The ETF's distinctive strategy might perform differently from your main market exposure, making it a valuable tool for seeking excess returns through a focused bet on high-quality companies.

A $10,000 investment in VanEck's ETF would incur an annual expense ratio of about $47, which is subtracted from the ETF's returns on a daily basis.

The ETF's expense ratio includes a management fee of 0.45% and other expenses totaling 0.02%.

Here's a comparison of the VanEck Morningstar Wide Moat ETF's performance with the S&P 500 index over various time periods:

As you can see, the ETF's performance has been relatively close to the S&P 500 index over the long term, but with some variations over shorter periods.

Operational fees are a crucial aspect of investing in the VanEck Moat ETF. The expense ratio for this ETF is 0.47%, which includes a management fee of 0.45% and other expenses totaling 0.02%.

The management fee of 0.45% is relatively low compared to other funds in its category, ranking 41.97% in the category. This means that the VanEck Moat ETF has a more efficient management structure, which can benefit investors in the long run.

Here's a breakdown of the operational fees associated with the VanEck Moat ETF:

These fees are subtracted from the ETF's returns on a daily basis, affecting the overall performance of your investment indirectly. For a $10,000 investment, this translates to an annual cost of about $47.