Specifically, Bristol-Myers Squibb holds an extensive list of patent-protected drugs, global sales force and economies of scale. Its patent protection allows the company to price drugs at levels that translate to better returns on invested capital compared with its costs. Furthermore, the company enjoys brand identity, large scale and healthy balance sheets with ample cash.

Related: Factor Investing: What is the Right Number of Factors?

Lowe’s intangibles includes a business built on customer service, knowledge and innovation, along with competitive advantages based on its information technology platform and distribution network.

Investors interested in gaining exposure to companies with robust intangible assets and a wide economic moat may turn to the VanEck Vectors Morningstar Wide Moat ETF (NYSEArca: MOAT), which implements Morningstar’s wide moat methodology. MOAT includes a 2.5% tilt toward Bristol-Myers Squibb and a 2.4% position in Lowe’s.

For more information on alternative index-based strategies, visit our Smart Beta Channel.