Instead of pulling your hair out to find the best stock picks in today’s markets, exchange traded fund investors can let Morningstar analysts do the work for you.
The Market Vectors Wide Moat ETF (NYSEArca: MOAT) tries to reflect the performance of the Morningstar Wide Moat Focus Index, which utilizes a “wide moat” investment strategy that hones in on companies with a competitive advantage.
Warren Buffett is also well known for his preference for large, established companies with wide economic moats that help outperform the competition. Consequently, these types of investment models shun glamorous up-and-comers in favor of steady companies with easy-to-understand business models. [Morningstar ‘Wide Moat’ ETF Soaks Up Warren Buffett’s Approach]
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage,” Warren Buffet said in a Fortune magazine article. “The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.”