MOAT ETF: What’s Under The Hood?

by Corey Philip //  January 7, 2022

This is my notes on the video covering the MOAT ETF.  Grammar my be incorrect


  • 7.2b AUm
  • 18.51% annual returns for the last 5 years
  • And a 0.47% expense ration

What Is A Moat

  • Other report:
  • Wide Narrow and None
  • But what exactly does Morningstar mean by "economic moat"? As per VanEck:

Economic Moat ratings represent the sustainability of a company's competitive advantage. Wide and narrow moat ratings represent Morningstar's belief that a company may maintain its advantage for at least 20 years and at least 10 years, respectively. An economic moat rating of none indicates that a company has either no advantage or an unsustainable one. Quantitative factors used to identify competitive advantages include returns on invested capital relative to cost of capital, while qualitative factors used to identify competitive advantages include customer switching cost, cost advantages, intangible assets, network effects, and efficient scale.

How Does MOAT Choose Their Holdings

How Has The Index Performed

Where Have The Returns Came From?

Factor Analysis

Performance Vs S&P 500

3% outperformance of US Total market is largely driven by index returns since the creation of index in 2007.

Since launch of the actual ETF in 2012 it has slightly outperformed the S&P 500. 

It has substantially outperformed the large value index as represented by Vanguards Large Cap Value Index (VIVAX).  Since 4/30/2012 fund inception, it has had total return of 316.75% vs the Large Value at 230.14%

Final Thoughts

  • I Like the relative narrow portfolio
  • It Could perform better when we are not in such a strong bull market with 
  • This could represent the value allocation of a portfolio and offer outperformance of that asset class.

Please leave all comments regarding MOAT ETF on the Youtube page comments.  

About the author

Corey Philip

Corey Philip is a small business owner / investor with a focus on home service businesses.

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