- 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.
For further details see:
Wide-Moat ETF Rebalance: Adobe, BlackRock Out; Chip Makers In