MOTI’s top country weights include a heavy tilt toward Australia at 16.3% of the fund’s portfolio, followed by France 11.8%, Singapore 10.8%, Canada 9.8%, the U.K. 8.7% and the U.S. 8.1%.
Additionally, the international moat ETF has a large 47.2% position in financials, along with 20.1% consumer discretionary, 8.5% health care, 6.0% industrials, 4.2% materials, 4.1% information tech, 3.9% consumer staples, 3.9% energy and 2.1% telecom.
In contrast, the benchmark MSCI EAFE Index has a large 23% tilt toward Japan and 19.2% U.K. Two troubled areas in the developed markets this year. Japan has been suffering from a strengthening yen currency and slowing economic growth. Meanwhile, the Brexit referendum has kept a lid on the United Kingdom’s growth prospects.
Financial advisors who are interested in learning more about Morningstar’s international investment strategy can register for the Thursday, July 21 webcast here.