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Is VanEck Morningstar SMID Moat ETF (SMOT) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the VanEck Morningstar SMID Moat ETF (SMOT - Free Report) is a smart beta exchange traded fund launched on 10/04/2022.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Van Eck, SMOT has amassed assets over $360.9 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. SMOT seeks to match the performance of the MORNINGSTAR US SML-MID CAP MOAT FOCUS ID before fees and expenses.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.35%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
SMOT's heaviest allocation is in the Industrials sector, which is about 21.3% of the portfolio. Its Consumer Discretionary and Information Technology round out the top three.
When you look at individual holdings, Ionis Pharmaceuticals Inc (IONS) accounts for about 2.37% of the fund's total assets, followed by Wesco International Inc (WCC) and Expedia Group Inc (EXPE).
SMOT's top 10 holdings account for about 17.32% of its total assets under management.
Performance and Risk
The ETF has added about 7.97% so far this year and is up about 5.97% in the last one year (as of 12/29/2025). In the past 52-week period, it has traded between $28.40 and $37.23
SMOT has a beta of 1.23 and standard deviation of 17.92% for the trailing three-year period. With about 105 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 $81.08 billion in assets, Vanguard Total Stock Market ETF has $573.24 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?
Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the VanEck Morningstar SMID Moat ETF (SMOT - Free Report) is a smart beta exchange traded fund launched on 10/04/2022.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Van Eck, SMOT has amassed assets over $360.9 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. SMOT seeks to match the performance of the MORNINGSTAR US SML-MID CAP MOAT FOCUS ID before fees and expenses.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.35%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
SMOT's heaviest allocation is in the Industrials sector, which is about 21.3% of the portfolio. Its Consumer Discretionary and Information Technology round out the top three.
When you look at individual holdings, Ionis Pharmaceuticals Inc (IONS) accounts for about 2.37% of the fund's total assets, followed by Wesco International Inc (WCC) and Expedia Group Inc (EXPE).
SMOT's top 10 holdings account for about 17.32% of its total assets under management.
Performance and Risk
The ETF has added about 7.97% so far this year and is up about 5.97% in the last one year (as of 12/29/2025). In the past 52-week period, it has traded between $28.40 and $37.23
SMOT has a beta of 1.23 and standard deviation of 17.92% for the trailing three-year period. With about 105 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 $81.08 billion in assets, Vanguard Total Stock Market ETF has $573.24 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.