Van Eck Global has announced the launch of the Market Vectors Morningstar US Wide Moat Ucits ETF in Europe.
This index aims to provide exposure to “wide moat” companies, i.e. companies with a structural competitive advantage that have the potential for long term above-average returns on capital.
The ETF is listed on the London Stock Exchange and tracks the equally weighted Morningstar Wide Moat Focus index.
Lars Hamich, CEO of Van Eck Global (Europe), said : “Moat’s underlying index provides access to Morningstar’s proprietary economic moat rating and valuation research and allows investors to cover the 20 most attractively priced US high quality companies with a wide economic moat rating.
“Since its inception in 2007, the index has outperformed the US equity market with a cumulative performance of 122.45 percent while that of the S&P 500 Index was 68.09 percent. We think that Moat offers an attractive addition to those seeking to invest in US companies.”
The Market Vectors Morningstar US Wide Moat Ucits ETF, which is fully exposed to the US market, currently covers eight sectors. As at 20 October 2015, the top three sector weightings were Consumer Discretionary (25.30%), Industrials (24.63%) and Information Technology (20.76%).
Van Eck Global’s ETF will be listed on other selected exchanges in continental Europe. The fund is currently registered for public distribution in Ireland, the United Kingdom, and Norway with further country registrations to follow.