Market Vectors Morningstar Wide Moat Research ETF (NYSE Arca: MOAT), launched on April 24, 2012, has surpassed $100 million in assets under management and distributed no capital gains in 2012, it was announced today.
The Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus Index SM (MWMFTR). Brandon Rakszawski, Product Manager for Market Vectors ETFs, noted Morningstar’s unique approach to constructing its index as an attractive feature to investors. “MOAT’s underlying index provides access to the proprietary research of Morningstar’s equity analyst team and is based on their economic moat ratings and valuation model.” He added, “The ETF structure has proven beneficial to this valuation-driven index methodology. Despite turnover of roughly six to seven stocks at each quarterly rebalance since its launch in April, MOAT did not distribute capital gains in 2012.”
Morningstar’s wide-moat analysis, which the index is based on, seeks to identify companies that possess one or more sustainable competitive advantages and are expected to have high returns on invested capital relative to their cost of capital. As part of this analysis, Morningstar’s equity research team looks for sustainable competitive advantages, or wide economic moats such as intangible assets, cost advantages, switching costs, network effects and efficient scale. Morningstar’s proprietary valuation process then identifies the 20 most attractively priced wide-moat companies at the time of each quarterly rebalance.
MOAT was the fifth most successful U.S.-listed equity ETF launched in 2012 as measured by assets under management, according to Morningstar data. The Fund attracted over $115 million in less than nine months of operation. As of December 31, 2012, MOAT held Berkshire Hathaway, Oracle, Bank of New York Mellon, Intel and other well-known, high-quality companies. Additionally, from its inception through December 31, 2012, MOAT has outperformed the S&P 500 Index by 5.13% and the Morningstar US OE Large Blend Category average 1 by 5.91%, based on its net asset value.
Performance History (%) as of December 31, 2012
Expense Ratio (%)*
|1 Month||3 Month||6 Month||Life||Gross||Net|
|S&P 500 Index||0.91||-0.38||5.95||5.67||-||-|
|US OE Large Blend Cat Avg. 1||1.14||0.43||6.52||4.89||-||-|
|*Expenses are capped contractually until 5/1/2013. Cap excludes certain expenses, such as interest.|