Wide Moat Companies

Example of the week

Characteristics: Wide moats are the most valuable. They are strong and durable. Companies with strong moats significantly exceed their competitors’ performance (profitability, growth, market share). This strength may result from the combination of multiple moat types. Moats are considered durable if they last at least 20 years. The moat duration, aka competitive advantage period (CAP), greatly impacts the economic value created by the company.

ETF: The VanEck Morningstar Wide Moat ETF (MOAT) tracks the Morningstar Wide Moat Focus Index. It holds stocks of companies with durable competitive advantages based on Morningstar’s proprietary methodology, which considers both quantitative and qualitative factors.