VanEck Morningstar Wide Moat SMA
Overview
A smart approach to U.S. equity investing based on a simple concept of seeking companies with sustainable competitive advantages that are trading at attractive valuations. High profits attract competition which can diminish profitability. Companies that create economic moats can defend against competition and prevent or delay profit erosion. Wide moats are derived from five key sources: intangible assets, switching costs, network effect, cost advantages, and efficient scale. The VanEck Morningstar® Wide Moat Strategy seeks to replicate the performance of the Morningstar® Wide Moat Focus IndexSM1.
Highlights
- Wide Moat Companies
A focus on U.S. companies Morningstar believes possess sustainable competitive advantages, or “moats”
- Focus on Valuations
Strategy targets companies trading at attractive prices relative to Morningstar’s estimate of fair value
- Morningstar’s Equity Research
Strategy fueled by Morningstar’s forward-looking, rigorous equity research process driven by over 100 analysts globally
Stay Current on the Economic and Market Trends Driving Model Changes
Characteristics as of 11/30/2024
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P/E (LTM)29.72
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P/E (Forward)22.49
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P/B (LTM)3.85
Market Capitalization (%) as of 11/30/2024
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Large (>= $10 billion)99.87
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Mid (< $10 billion >= $2 billion)--
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Small (<$1.0b)>--
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Average Weighted Market Cap ($ billion)168.60
Top 10 Holdings (%) as of 11/30/2024 Strategy Constituents Download
| Holding Name |
% of Net Assets |
|---|---|
| Salesforce Inc | 3.07 |
| Bristol-Myers Squibb Co | 2.99 |
| Gilead Sciences Inc | 2.93 |
| Us Bancorp | 2.91 |
| Emerson Electric Co | 2.89 |
| Walt Disney Co/The | 2.85 |
| Autodesk Inc | 2.75 |
| Kenvue Inc | 2.70 |
| Transunion | 2.70 |
| Altria Group Inc | 2.68 |
| Top 10 Total (%) | 28.49 |
Country Weightings (%)
as of 11/30/2024
| Country | % of Net Assets |
|---|---|
| ● United States | 98.8 |
| ● Netherlands | 1.2 |
Sector Weightings (%)
as of 11/30/2024
| Sector | % of Net Assets |
|---|---|
| ● Industrials | 23.4 |
| ● Health Care | 21.3 |
| ● Information Technology | 17.9 |
| ● Consumer Staples | 13.0 |
| ● Financials | 7.1 |
| ● Materials | 6.1 |
| ● Consumer Discretionary | 5.7 |
| ● Communication Services | 5.4 |
Important Definitions & Disclosures
The model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the model is not subject to compliance with the requirements of such acts.
An investment in the Strategy may be subject to risks which include, among others, risks related to investing in equity securities, consumer discretionary sector, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, index tracking, no guarantee of active trading market, trading issues, passive management, liquidity, non-diversification and index-related concentration risks, all of which may adversely affect the Strategy. Medium-capitalization companies may be subject to elevated risks.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
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 Strategy and bears no liability with respect to that Strategy or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
1The Morningstar® Wide Moat Focus IndexSM consists of companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
Indices are unmanaged and are not securities in which investments can be made.
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