Switching Costs Provide Advantage for Targeted ETF

Related: Smart ETF Investing is More Than Factors

Among those that have capitalize on switching costs to create economic moats in today’s world, Microsoft’s Windows Operating System has created a virtual monopoly for Microsoft, with Microsoft office suite providing one of the most complete feature sets on the market.

To capitalize on this switching cost attribute, investors can take a look at the VanEck Vectors Morningstar Wide Moat ETF (NYSEArca: MOAT), which implements Morningstar’s wide moat methodology. MOAT is up 15.6% year-to-date, compared to the 13.5% gain for the S&P 500.

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