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Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?
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A smart beta exchange traded fund, the VanEck Morningstar International Moat ETF (MOTI - Free Report) debuted on 07/13/2015, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Van Eck, and has been able to amass over $224.48 million, which makes it one of the average sized 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.43%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Mediatek Inc accounts for about 2.32% of the fund's total assets, followed by Other/cash and Infineon Technologies Ag (IFX).
MOTI's top 10 holdings account for about 21.33% of its total assets under management.
Performance and Risk
The ETF has lost about -3.89% so far this year and is down about -5.84% in the last one year (as of 01/30/2024). In the past 52-week period, it has traded between $28.08 and $33.57.
The fund has a beta of 0.83 and standard deviation of 17.67% for the trailing three-year period, which makes MOTI a medium risk choice in this particular space. With about 78 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 $62.74 billion in assets, Vanguard FTSE Developed Markets ETF has $122.20 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?
A smart beta exchange traded fund, the VanEck Morningstar International Moat ETF (MOTI - Free Report) debuted on 07/13/2015, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Van Eck, and has been able to amass over $224.48 million, which makes it one of the average sized 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.43%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Mediatek Inc accounts for about 2.32% of the fund's total assets, followed by Other/cash and Infineon Technologies Ag (IFX).
MOTI's top 10 holdings account for about 21.33% of its total assets under management.
Performance and Risk
The ETF has lost about -3.89% so far this year and is down about -5.84% in the last one year (as of 01/30/2024). In the past 52-week period, it has traded between $28.08 and $33.57.
The fund has a beta of 0.83 and standard deviation of 17.67% for the trailing three-year period, which makes MOTI a medium risk choice in this particular space. With about 78 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 $62.74 billion in assets, Vanguard FTSE Developed Markets ETF has $122.20 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.