For Long-Term Value Fans, Early Investments May Be Paying Off
The
VanEck Vectors Morningstar Wide Moat ETF (MOAT) isn’t a dedicated value exchange traded fund, but it is among the ETFs benefiting from the resurgence of value stocks this year.
MOAT tracks the Morningstar Wide Moat Focus Index, which features quality leanings. The quality/value combination is proving potent in 2021, and it has helped MOAT’s performance remain impressive for several years because the fund took on a value tilt before it was fashionable to do so.
“The Morningstar Wide Moat Focus Index’s value bias has now been in place since early 2018. Admittedly, the shift towards value was a bit early, as growth has soundly outperformed value in recent years,” said Morningstar Director of Equity Research Andrew Lane in a recent note. “However, despite that value tilt, the Index has still outperformed the broad market over the last five years thanks in part to favorable stock selection. In 2021, the Ind