Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the VanEck Morningstar Wide Moat ETF (MOAT) is a passively managed exchange traded fund launched on April 24, 2012.
The fund is sponsored by Van Eck. It has amassed assets over $11.66 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.46%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
Sector Exposure and Top Holdings
ETFs offer a 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.
This ETF has heaviest allocation to the Information Technology sector -- about 30.7% of the portfolio. Industrials and Consumer Staples round out the top three.
Looking at individual holdings, Bristol-Myers Squibb Co (BMY) accounts for about 2.83% of total assets, followed by Constellation Brands Inc (STZ) and Mondelez International Inc (MDLZ).
The top 10 holdings account for about 26.9% of total assets under management.
Performance and Risk
MOAT seeks to match the performance of the Morningstar Wide Moat Focus Index before fees and expenses. The Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
The ETF has lost about 2.26% so far this year and is up about 15.32% in the last one year (as of 05/22/2026). In the past 52-week period, it has traded between $88.23 and $107.67.
The ETF has a beta of 0.95 and standard deviation of 15.27% for the trailing three-year period, making it a medium risk choice in the space. With about 59 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar Wide Moat ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MOAT is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $828.15 billion in assets, Vanguard 500 Index Fund ETF Shares has $958.94 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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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VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).