Find out what the ETF does
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
Investors could use the MOAT ETF as a tactical exposure to high-quality US companies. While the portfolio is smaller and less diversified than most other US equities ETFs, the companies selected are intended to have above-average long-term growth prospects owing to their competitive advantages.
MOAT’s FUM meets our hurdle
The VanEck MOAT ETF had $438.47 million of money invested when we last pulled the monthly numbers. Given MOAT’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
VanEck charges investors a yearly management fee of 0.49% for the MOAT ETF. This means that if you invested $2,000 in MOAT for a full year, you could expect to pay management fees of around $9.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Our takeaway
If you’re thinking about investing in MOAT, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free VanEck MOAT report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
So how can you actually invest in the MOAT ETF? In the month of July 2023, you can buy the MOAT ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy MOAT for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
