On Thursday, VanEck added two new ETFs to its growing ETF roster – the VanEck Morningstar Wide Moat Value ETF (MVAL) and the VanEck Morningstar Wide Moat Growth ETF (MGRO).
Both funds seek exposure to companies with good valuation and a wide moat rating. MVAL prioritizes high value and tracks the Morningstar US Broad Value Wide Moat Focus Index. Alternatively, MGRO targets growth and uses the Morningstar US Broad Growth Wide Moat Focus Index. Each fund aims to invest at least 80% of assets in securities present in their respective indexes.
Morningstar allocates the wide moat status to companies the firm believes possess a sustainable competitive advantage that can be upheld for at least the next 20 years. According to their prospectuses, Morningstar excludes companies it rates as “pure growth” from MVAL’s index. It excludes those companies it labels as “pure value” from MGRO’s index.
“Investors and advisors have embraced the moat-focused approach to identifying quality companies trading at attractive valuations. And today we’re excited to extend that approach with the launch of MVAL and MGRO. These moat-focused ETFs allow investors to fine-tune their portfolios toward distinct style exposures, while maintaining a focus on valuations,” said VanEck’s Director of Project Management Brandon Rakszawski.
Established VanEck Strategies
Each fund is passively managed and has a net expense ratio of 0.49%. Both list on the Cboe BZX Exchange. With the launch of MVAL and MGRO, VanEck’s suite of wide moat ETFs totals seven products. It debuted the VanEck Morningstar Wide Moat ETF (MOAT) in 2012. That fund currently has nearly $15 billion in assets under management.
“Since its introduction, MOAT has, at various points, leaned more towards growth than value and vice versa. Now, with the addition of MVAL and MGRO, investors have a more complete moat-focused toolset to allocate to the exposures that they believe are best positioned for potential outperformance,” Rakszawski added.
MVAL and MGRO are the latest additions to VanEck’s ETF arsenal, bringing the total number of VanEck ETFs listed in the U.S. to 69. These funds collectively have more than $76 billion in AUM.
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