PEP - Wide-Moat ETF Rebalance: Adobe BlackRock Out; Chip Makers In

• The VanEck Vectors Morningstar Wide Moat ETF ("MOAT") invests in U.S. companies that possess wide economic moats as per Morningstar's methodology.
• The recent reconstitution saw the inclusion of chip makers Microchip Technology, Lam Research and KLA Corporation, which stand to profit from the tight semiconductor market.
• Among the other entries is Campbell Soup, while a number of other food & beverage stocks are waiting on the sidelines for potential inclusion in the next reconstitution.
• Adobe and BlackRock were removed from the ETF on valuation grounds, while positions in ServiceNow and Pfizer were trimmed for the same reason.
• In a frothy market, MOAT remains a good way to get exposure to a basket of blue chips whose fundamentals support their current valuation, providing some comfort in a downturn.

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