The Market Vectors Wide Moat ETF (MOAT) distributed no capital gains in 2013, the second consecutive tax year since the fund’s inception without a capital gains distribution.
The ETF has also surpassed USD500m in assets under management.
MOAT seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar Wide Moat Focus Index.
Brandon Rakszawski, product manager for Market Vectors ETFs, says: “MOAT’s underlying index provides investors access to Morningstar’s proprietary economic moat and valuation research. The ETF structure is well-suited for this highly dynamic and concentrated index methodology and despite turnover of four to nine stocks out of 20 total holdings at each quarterly rebalance, MOAT distributed no capital gains in 2013.”
The fund surpassed USD500m in assets in early December 2013, just a year and a half after its launch in April 2012.
Morningstar’s wide-moat analysis, which the index is based on, seeks to identify companies that possess one or more sustainable competitive advantages.
Morningstar’s proprietary valuation process then identifies the 20 most attractively priced wide-moat companies at the time of each quarterly rebalance.