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Is VanEck Morningstar SMID Moat ETF (SMOT) a Strong ETF Right Now?
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Making its debut on 10/04/2022, smart beta exchange traded fund VanEck Morningstar SMID Moat ETF (SMOT - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $372.58 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. SMOT is managed by Van Eck. SMOT, before fees and expenses, seeks to match the performance of the MORNINGSTAR US SML-MID CAP MOAT FOCUS ID.
The Morningstar US Small-Mid Cap Moat Focus Index tracks the overall performance of small and mid-cap companies with sustainable competitive advantages and attractive valuations.
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.
Operating expenses on an annual basis are 0.49% for SMOT, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.11%.
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.
Representing 20.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Consumer Discretionary and Information Technology round out the top three.
When you look at individual holdings, Ionis Pharmaceuticals Inc (IONS) accounts for about 1.99% of the fund's total assets, followed by Chart Industries Inc (GTLS) and Acuity Brands Inc (AYI).
Its top 10 holdings account for approximately 15.5% of SMOT's total assets under management.
Performance and Risk
So far this year, SMOT has added about 6.69%, and is up roughly 6.55% in the last one year (as of 10/28/2025). During this past 52-week period, the fund has traded between $28.40 and $37.49.
The ETF has a beta of 1.24 and standard deviation of 18.74% for the trailing three-year period. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
VanEck Morningstar SMID Moat ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $80.31 billion in assets, Vanguard Total Stock Market ETF has $562.5 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
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 SMID Moat ETF (SMOT) a Strong ETF Right Now?
Making its debut on 10/04/2022, smart beta exchange traded fund VanEck Morningstar SMID Moat ETF (SMOT - Free Report) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $372.58 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. SMOT is managed by Van Eck. SMOT, before fees and expenses, seeks to match the performance of the MORNINGSTAR US SML-MID CAP MOAT FOCUS ID.
The Morningstar US Small-Mid Cap Moat Focus Index tracks the overall performance of small and mid-cap companies with sustainable competitive advantages and attractive valuations.
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.
Operating expenses on an annual basis are 0.49% for SMOT, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.11%.
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.
Representing 20.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Consumer Discretionary and Information Technology round out the top three.
When you look at individual holdings, Ionis Pharmaceuticals Inc (IONS) accounts for about 1.99% of the fund's total assets, followed by Chart Industries Inc (GTLS) and Acuity Brands Inc (AYI).
Its top 10 holdings account for approximately 15.5% of SMOT's total assets under management.
Performance and Risk
So far this year, SMOT has added about 6.69%, and is up roughly 6.55% in the last one year (as of 10/28/2025). During this past 52-week period, the fund has traded between $28.40 and $37.49.
The ETF has a beta of 1.24 and standard deviation of 18.74% for the trailing three-year period. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
VanEck Morningstar SMID Moat ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $80.31 billion in assets, Vanguard Total Stock Market ETF has $562.5 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
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.