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Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?
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Making its debut on 07/13/2015, smart beta exchange traded fund VanEck Morningstar International Moat ETF (MOTI - Free Report) provides investors broad exposure to the World ETFs category of the market.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
MOTI is managed by Van Eck, and this fund has amassed over $240.02 million, which makes it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the Morningstar Global ex-US Moat Focus Index before fees and expenses.
The Morningstar Global ex-US Moat Focus Index tracks the overall performance of 50 attractively priced companies outside the U.S. with sustainable competitive advantages.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.58% for MOTI, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.06%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Agl Energy Ltd (AGL - Free Report) accounts for about 2.63% of total assets, followed by Pandora A/s (PNDORA) and Fresenius Se & Co Kgaa (FRE).
The top 10 holdings account for about 23.11% of total assets under management.
Performance and Risk
So far this year, MOTI has added roughly 7.03%, and is up about 8.38% in the last one year (as of 11/27/2023). During this past 52-week period, the fund has traded between $28.08 and $33.57.
MOTI has a beta of 0.82 and standard deviation of 17.70% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar International Moat ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $59.42 billion in assets, Vanguard FTSE Developed Markets ETF has $115.10 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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 International Moat ETF (MOTI) a Strong ETF Right Now?
Making its debut on 07/13/2015, smart beta exchange traded fund VanEck Morningstar International Moat ETF (MOTI - Free Report) provides investors broad exposure to the World ETFs category of the market.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
MOTI is managed by Van Eck, and this fund has amassed over $240.02 million, which makes it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the Morningstar Global ex-US Moat Focus Index before fees and expenses.
The Morningstar Global ex-US Moat Focus Index tracks the overall performance of 50 attractively priced companies outside the U.S. with sustainable competitive advantages.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.58% for MOTI, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 3.06%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Agl Energy Ltd (AGL - Free Report) accounts for about 2.63% of total assets, followed by Pandora A/s (PNDORA) and Fresenius Se & Co Kgaa (FRE).
The top 10 holdings account for about 23.11% of total assets under management.
Performance and Risk
So far this year, MOTI has added roughly 7.03%, and is up about 8.38% in the last one year (as of 11/27/2023). During this past 52-week period, the fund has traded between $28.08 and $33.57.
MOTI has a beta of 0.82 and standard deviation of 17.70% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
VanEck Morningstar International Moat ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $59.42 billion in assets, Vanguard FTSE Developed Markets ETF has $115.10 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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.