Van Eck Global Investments Ltd. has cross-listed the Market Vectors Morningstar US Wide Moat UCITS ETF on Deutsche Börse’s XETRA platform. As profiled in ETF Express on its launch on the LSE in the UK, the Wide Moat ETF is the first ETF in Europe to provide exposure to so-called ‘wide moat’ companies according to Morningstar’s equity research.
These are companies that the firm believes have a structural competitive advantage and the potential for long-term above-average returns on capital. The ETF will trade in Euro. The Market Vectors Morningstar US Wide Moat UCITS ETF tracks the equally weighted Morningstar Wide Moat Focus Index developed by Morningstar Inc., a provider of independent investment research.
The index concept is based on Morningstar’s proprietary economic moat rating and valuation research which identifies high-quality companies with sustainable competitive advantages that allow a company to generate positive economic returns for an extended period of time. “The launch and cross-listing of this UCITS ETF reinforces Van Eck’s commitment to offer innovative products to investors,” says Lars Hamich, CEO of Van Eck Global (Europe).
As of 31 October 2015, the top three sector weightings were Consumer Discretionary (25.22 per cent), Industrials (24.14 per cent) and Information Technology (20.98 per cent). The top five ranks of the ETF basket are held by Autodesk Inc. (5.66 per cent), Twenty-First Century Fox Inc. (5.49 per cent), Walt Disney Co. (5.29 per cent), Procter & Gamble Co. (5.28 per cent) and Discovery Communications Inc. (5.20 per cent).
ETF Express’s earlier interview with Van Eck and Morningstar can be read here: Interview with Van Eck and Morningstar.