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Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?
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A smart beta exchange traded fund, the VanEck Morningstar International Moat ETF (MOTI - Free Report) debuted on 07/13/2015, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $222.71 million, this makes it one of the average sized ETFs in the World ETFs. MOTI is managed by Van Eck. Before fees and expenses, MOTI seeks to match the performance of the Morningstar Global ex-US Moat Focus Index.
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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.01%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Brp Inc (DOO) accounts for about 2.50% of total assets, followed by Nice Ltd (NICE - Free Report) and Sodexo Sa (SW).
MOTI's top 10 holdings account for about 22.02% of its total assets under management.
Performance and Risk
Year-to-date, the VanEck Morningstar International Moat ETF has gained about 8.81% so far, and was up about 7.80% over the last 12 months (as of 05/03/2023). MOTI has traded between $24.73 and $32.79 in this past 52-week period.
The fund has a beta of 0.81 and standard deviation of 18.85% for the trailing three-year period, which makes MOTI a medium risk choice in this particular 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 $54.89 billion in assets, Vanguard FTSE Developed Markets ETF has $110.84 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?
A smart beta exchange traded fund, the VanEck Morningstar International Moat ETF (MOTI - Free Report) debuted on 07/13/2015, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $222.71 million, this makes it one of the average sized ETFs in the World ETFs. MOTI is managed by Van Eck. Before fees and expenses, MOTI seeks to match the performance of the Morningstar Global ex-US Moat Focus Index.
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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.01%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Brp Inc (DOO) accounts for about 2.50% of total assets, followed by Nice Ltd (NICE - Free Report) and Sodexo Sa (SW).
MOTI's top 10 holdings account for about 22.02% of its total assets under management.
Performance and Risk
Year-to-date, the VanEck Morningstar International Moat ETF has gained about 8.81% so far, and was up about 7.80% over the last 12 months (as of 05/03/2023). MOTI has traded between $24.73 and $32.79 in this past 52-week period.
The fund has a beta of 0.81 and standard deviation of 18.85% for the trailing three-year period, which makes MOTI a medium risk choice in this particular 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 $54.89 billion in assets, Vanguard FTSE Developed Markets ETF has $110.84 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.