The VanEck Morningstar Wide Moat ETF (MOAT) was launched on 04/24/2012, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by Van Eck. It has amassed assets over $14.45 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.47%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.38%.

Sector Exposure and Top Holdings

ETFs offer a 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.

This ETF has heaviest allocation to the Healthcare sector--about 27.30% of the portfolio. Industrials and Information Technology round out the top three.

Looking at individual holdings, Bristol-Myers Squibb Co (BMY) accounts for about 2.90% of total assets, followed by Alphabet Inc (GOOGL) and Walt Disney Co/the (DIS).

The top 10 holdings account for about 27.45% of total assets under management.

Performance and Risk

MOAT 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.

The ETF has lost about -0.94% so far this year and it's up approximately 7.34% in the last one year (as of 03/03/2025). In the past 52-week period, it has traded between $83.97 and $98.73.

The ETF has a beta of 1.02 and standard deviation of 18.82% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.

Alternatives

VanEck Morningstar Wide Moat ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MOAT is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track a similar index. While Vanguard S&P 500 ETF has $609.31 billion in assets, SPDR S&P 500 ETF has $625.13 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

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 Reports

Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report

The Walt Disney Company (DIS) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Vanguard S&P 500 ETF (VOO): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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