Launched on 04/24/2012, the VanEck Morningstar Wide Moat ETF (MOAT) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $12.19 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Blend. MOAT is managed by Van Eck. This particular fund seeks to match the performance of the Morningstar Wide Moat Focus Index before fees and expenses.
The Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for MOAT are 0.46%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.26%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 27.1% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Consumer Staples round out the top three.
When you look at individual holdings, Masco Corp (MAS) accounts for about 2.78% of the fund's total assets, followed by Charles Schwab Corp/the (SCHW) and Lpl Financial Holdings Inc (LPLA).
The top 10 holdings account for about 25.83% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Morningstar Wide Moat ETF has gained about 7.48% so far, and is up about 16.43% over the last 12 months (as of 08/06/2026). MOAT has traded between $94.29 $111.31 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 15.37% for the trailing three-year period, making it a medium risk choice in the space. With about 57 holdings, it effectively diversifies company-specific risk .
Alternatives
VanEck Morningstar Wide Moat ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $899.62 billion in assets, Vanguard 500 Index Fund ETF Shares has $1010.97 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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VanEck Morningstar Wide Moat ETF (MOAT): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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