For investors seeking momentum, VanEck Vectors Morningstar Wide Moat ETF (MOAT - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 34.1% from its 52-week low price of $28.03 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
MOAT in Focus
The fund follows an index which tracks the overall performance of the “attractively priced companies with sustainable competitive advantages.” The fund has key holdings in the health care, consumer discretionary and industrials segments. MOAT charges investors 49 basis points a year in fees and has top holdings in Twenty-First Century Fox, Walt Disney Co and Compass Minerals (see: Total Market (U.S.) ETFs here).
Why the Move?
This fund also calls for quality exposure. U.S. markets have been on tear lately on a renewed Trump rally and his promise of tax cuts. However, overvaluation concerns and Trump’s protectionist policies over trade and immigration makes some investors jittery. This has probably pushed them to bet on a quality exposure like MOAT.
More Gains Ahead?
The fund has a positive weighted alpha of 31.00. A positive weighted alpha hints at more gains.
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