Moat Investing: Resilience, Not Reliance

By Brandon Rakszawski via

The Morningstar® Wide Moat Focus IndexSM (MWMFTR, or “U.S. Moat Index”) displayed strength in October relative to U.S. large cap stocks as represented by the Morningstar® US Large Cap IndexSM. The October selloff across U.S. stocks, particularly pronounced in the tech sector, wiped out a significant portion of U.S. market gains thus far in 2018. Consumer staples and utilities stocks were the only U.S. large cap sectors to post positive returns in October.

The U.S. Moat Index displayed resilience, rather than reliance on tech, and finished ahead of U.S. large cap stocks in October and for the year-to-date period.

U.S. Moat Index Not Reliant on Tech

The U.S. Moat Index has managed to outpace U.S. large cap stocks thus far in 2018 despite a significant underweight to the information technology sector. The index has made up for this missing portion of total return with a variety of exposures in the portfolio.

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