MELI - Wide-Moat ETF Rebalance: Facebook Microsoft Stakes Increased; Financials Trimmed

• The VanEck Vectors Morningstar Wide Moat ETF ("MOAT") invests in U.S. companies that possess wide economic moats as per Morningstar's methodology.
• The latest quarterly reconstitution, in June, saw an increase in the weighting of Facebook and Microsoft, confirming that Morningstar does not see the tech giants as overvalued.
• Among the names removed from the ETF are financials Bank of America and Charles Schwab, following their strong runs year-to-date.
• The discounts to fair value as calculated by Morningstar are tiny at this point, pointing to the broader market's expensiveness.
• 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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