Van Eck Launches New International Moat ETF

In 2012, Van Eck Global launched a new exchange-traded fund designed to take advantage of companies with sustainable competitive advantages.  The Market Vectors Morningstar Wide Moat ETF (MOAT) invests in a concentrated basket of just 20 stocks with distinct products or services as identified by Morningstar’s research team.  

The term moat was used to denote the company’s impenetrable grasp on a specific market segment or unique business objective.

Flash forward three years and MOAT has been a solid success story, having amassed nearly $900 million in total assets.  To expand on this theme, Van Eck just recently launched the Market Vectors Morningstar International Moat ETF (MOTI).

MOTI has expanded its total number of underlying stocks to 50, which include both developed and emerging market countries.  Approximately 71 percent of the underlying holdings are large-cap stocks, while the remainder is allocated to small and mid-cap names.  This ETF charges a net expense ratio of 0.56 percent as well.  

Australia, Canada, and India make up the top three country designations within MOTI; however that may change over time as the holdings are evaluated and rebalanced.  In addition, the financial services sector is the most dominant group, with nearly 49 percent of the overall portfolio.

Brandon Rakszawski, product manager at Van Eck Global, noted that “MOAT resonated with investors and with much of the world’s investable opportunities outside the United States, we’re launching MOTI as a means to capture moat-based opportunities abroad.”  He went on to confirm that “Morningstar is a leader in equity research and we look forward to offering investors the ability to access its analysts’ best ideas through an investible ETF.”

2015 has been a very active year for ETF launches and fund providers are seeing more opportunities in international themed markets.  Last month, Van Eck also introduced the Market Vectors Global Spin-Off ETF (SPUN), which is made up of both domestic and foreign stocks created through larger company divestures.