The popularity of factor-based smart beta investment strategies has surged in 2018 as advisors look to rules-based indexing methodologies to enhance returns and minimize drawdowns. Specifically, savvy advisors are embracing “wide moat” smart beta ETF strategies to access many quality global companies.
On the upcoming webcast, Moat Investing through a Factor Lens, Edward Lopez, Head of ETF Product Management at VanEck, Andrew Lane, Chairman of Economic Moat Committee for Morning Star, will explore the benefits of moat investing strategies that can enhance portfolios through a smarter investment style.
Specifically, the VanEck Vectors Morningstar Wide Moat ETF (NYSEArca: MOAT) implements Morningstar’s economic moat rating to identify strong companies with wide economic moats. The VanEck Vectors Morningstar International Moat ETF (NYSEArca: MOTI) takes a similar moat rating methodology to select overseas component holdings. The recently launched VanEck Vectors Morningstar Global Wide Moat ETF (GOAT) implements its economic moat indexing methodology with an all-encompassing global exposure.
The economic moat investment strategy can help investors achieve improved long-term, risk-adjusted return by focusing on quality companies that help limit downside risk while still participating in potential gains.