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Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?
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The VanEck Morningstar International Moat ETF (MOTI - Free Report) made its debut on 07/13/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $202.16 million, this makes it one of the average sized ETFs in the World ETFs. MOTI is managed by Van Eck. This particular fund seeks to match the performance of the Morningstar Global ex-US Moat Focus Index before fees and expenses.
The Morningstar Global ex-US Moat Focus Index tracks the overall performance of 50 attractively priced companies outside the U.S. with sustainable competitive advantages.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It's 12-month trailing dividend yield comes in at 2.99%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Brp Inc accounts for about 2.50% of total assets, followed by Nice Ltd (NICE - Free Report) and Sodexo Sa (SW).
Its top 10 holdings account for approximately 22.02% of MOTI's total assets under management.
Performance and Risk
The ETF has added roughly 9.43% and is up about 3.50% so far this year and in the past one year (as of 03/02/2023), respectively. MOTI has traded between $24.73 and $32.79 during this last 52-week period.
MOTI has a beta of 0.80 and standard deviation of 23.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 78 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar International Moat ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $53.47 billion in assets, Vanguard FTSE Developed Markets ETF has $106.48 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?
The VanEck Morningstar International Moat ETF (MOTI - Free Report) made its debut on 07/13/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $202.16 million, this makes it one of the average sized ETFs in the World ETFs. MOTI is managed by Van Eck. This particular fund seeks to match the performance of the Morningstar Global ex-US Moat Focus Index before fees and expenses.
The Morningstar Global ex-US Moat Focus Index tracks the overall performance of 50 attractively priced companies outside the U.S. with sustainable competitive advantages.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It's 12-month trailing dividend yield comes in at 2.99%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Brp Inc accounts for about 2.50% of total assets, followed by Nice Ltd (NICE - Free Report) and Sodexo Sa (SW).
Its top 10 holdings account for approximately 22.02% of MOTI's total assets under management.
Performance and Risk
The ETF has added roughly 9.43% and is up about 3.50% so far this year and in the past one year (as of 03/02/2023), respectively. MOTI has traded between $24.73 and $32.79 during this last 52-week period.
MOTI has a beta of 0.80 and standard deviation of 23.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 78 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar International Moat ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $53.47 billion in assets, Vanguard FTSE Developed Markets ETF has $106.48 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.