VanEck MOAT ETF (ASX:MOAT)
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’.
What does the MOAT invest in?
The MOAT ETF aims to invest in at least 40 US companies which are attractively priced and deemed to have wide ‘moats’, or sustainable competitive advantages, as determined by Morningstar’s research. The majority of the companies in this ETF are large-cap, household names, such as Amazon.com Inc (NASDAQ: AMZN) and Caterpillar Inc (NYSE: CAT).
What do investors use MOAT for?
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.
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