The combination of an Average People Pillar rating and a Below Average Process Pillar rating limit  VanEck Morningstar Intl Moat ETF to a Morningstar Medalist Rating of Negative.  The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy receives a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in momentum exposure and liquidity exposure compared with category peers. Momentum is the premise that stocks that have recently outperformed will continue to do so. With low momentum exposure, the portfolio is holding stocks that managers believe to be undervalued. And a low liquidity exposure is rooted in stocks with lower trading volumes, limiting managers' flexibility. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

SPDR Bloomberg Barclays Mortgage Backed Bond ETF

Basic Energy Services

Agilon Health

GlaxoSmithKline

Bridger Aerospace Group Holdings Inc

Rogers

NexImmune

Banco Santander

Enerplus

Rentokil Initial PLC

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. VanEck Morningstar Intl Moat ETF earns a Below Average Process Pillar rating. 

The process is strengthened by tracking an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. However, the rating is weakened by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.6 stars, also holds the process back. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

 This strategy skews toward smaller, more growth-oriented companies than its average peer in the Foreign Large Value Morningstar Category. Examining additional factor exposure, this strategy has consistently had low exposure to momentum stocks in the past few years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In the latest month, the strategy was also less exposed to the Momentum factor compared with Morningstar Category peers. This strategy also has held illiquid stocks, evidenced by holdings' lower trading volume in recent years over peers, resulting in high liquidity risk exposure. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Similarly, in recent months, the strategy also had less exposure to the Liquidity factor than peers. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings decline. In recent months, the strategy also had less Yield factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and consumer cyclical relative to the category average by 9.4 and 9.2 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and industrials, underweight the average by 11.6 and 9.0 percentage points of assets, respectively. The strategy owns 76 securities and is relatively concentrated. In particular, 22.5% of the strategy's assets are housed within the top 10 holdings, as opposed to the category’s 13.9% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 87% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Below Average

Process

VanEck’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are two managers listed on the fund: Peter Liao, Griffin Driscoll. Together, they manage a total of 13 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Vectors Morningstar International Moat ETF

MOTI tracks an equal-weighted index of 50 non-US companies that Morningstar deems to have a sustainable competitive advantage and an attractive valuation.

If there's one frequently cited attribute of European equities, it's that those stocks trade at noticeable discounts relative to U.S. equivalents. Those low valuations haven't been enough to generate much out-performance against domestic stocks, though.

Find European Bargains in This Wide Moat ETF

The VanEck Morningstar International Moat ETF (MOTI) made its debut on 07/13/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.

Is VanEck Morningstar International Moat ETF (MOTI) a Strong ETF Right Now?

Rather than a broad-based approach to international companies, we prefer Morningstar's selective approach to identifying quality international companies. Leveraging Morningstar's forward-looking, rigorous equity research process, VanEck Morningstar International Moat ETF (MOTI) provides a focus on international companies that possess sustainable competitive advantages (“moats”).

MOTI ETF: Question & Answer

VanEck Morningstar Wide Moat ETF

Vaneck Morningstar ESG Moat ETF

The Wide Moat ETF (MOAT) has attracted about $335 million in net flows year to date through January 25, per etf.com. The fund has accumulated net flows of $4.9 billion over the course of a year.

Here's Why Moat ETFs Are Gathering Investors' Attention

VanEck Vectors Africa Index ETF

VanEck Vectors Biotech ETF

VanEck Vectors Gaming ETF

VanEck Vectors Brazil Small-Cap ETF

VanEck Vectors Social Sentiment ETF

Vaneck Cmci Commodity Strategy Etf

VanEck Vectors ChinaAMC SME-ChiNext ETF

VanEck Vectors Oil Refiners ETF

VanEck Vectors Digital Transformation ETF

Vaneck Digital India ETF

VanEck Vectors Egypt Index ETF

VanEck Video Gaming and eSports ETF

VanEck Vectors Environmental Services ETF 

VanEck Vectors Gold Miners ETF

VanEck Junior Gold Miners ETF

VanEck Green Metals ETF

VanEck Vectors Natural Resource ETF

VanEck Robotics ETF

VanEck Vectors Indonesia Index ETF

VanEck Vectors Israel ETF

VanEck Vectors Agribusiness ETF

VanEck Morningstar Global Wide Moat ETF

VanEck Vectors Uranium+Nuclear Energy ETF

VanEck Vectors Oil Services ETF

VanEck Commodity Strategy ETF

VanEck Rare Earth/Strategic Metals ETF

Vaneck Green Infrastructure ETF

VanEck Vectors Russia ETF

VanEck Vectors Russia Small-Cap ETF

VanEck Vectors Retail ETF

VanEck Vectors Steel ETF

VanEck Vectors Semiconductor ETF

VanEck Low Carbon Energy ETF

Vaneck Morningstar SMID Moat ETF

VanEck Vectors Vietnam ETF

VanEck Future of Food ETF

NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2023 annual distributions per share for its VanEck® equity exchange-traded funds.

VanEck Announces Year-End Distributions for VanEck Equity ETFs

VanEck Morningstar International Moat ETF invests in momentum stocks of non-U.S. companies with sustainable competitive advantages and attractive valuations. The MOTI ETF has a decent yield but has failed to generate positive price growth over the past 5 years. The fund primarily invests in developed markets in Western Europe and Asian markets, with a focus on semiconductor and communication services stocks.

MOTI: An International ETF Focused On ICT And Consumer Discretionary Sectors

iShares MSCI USA Quality Factor ETF

SPDR MSCI USA StrategicFactors ETF

Invesco S&P 500 High Dividend Low Volatility ETF

Invesco S&P 500 Low Volatility ETF

Invesco S&P 500 Enhanced Value ETF

iShares Edge MSCI Min Vol USA ETF

Vanguard Value ETF

Some market participants are now of the view that the first-half Wall Street rally has come to an end and a challenging market is waiting for us.

Is a Volatile Market Awaiting Us? ETF Strategies to Follow

MOTI provides exposure to a basket of non-U.S. large- and medium-size names with robust competitive advantages. At first glance, it has an investment strategy capable of delivering sustainable long-term alpha. But the total returns since its inception suggest otherwise. MOTI was incapable of meaningfully outperforming even ACWX, which ignores the U.S. market entirely.

MOTI: Ex-U.S. Moat Stocks Under-Deliver

Are you interested in investing in businesses with a competitive advantage and a strong market position? Look no further than the new ETF TOLL, which focuses on monopolistic and oligopolistic companies.

Profit from New ETF TOLL: A Monopoly Play

More market observers are warming to European stocks, but some investors remain apprehensive about an asset class that long lagged against domestic equities. Market participants can wade back into European equities with international exchange traded funds.

Use Wide Moat Benefits to Tap European Equities

In the world of investing, "moat stocks" refer to companies that possess strong competitive advantages. The term was popularized by legendary investor Warren Buffett who said that he seeks "economic castles protected by unbreachable moats.

Moat ETFs Are Beating S&P 500: Here's Why

After what feels like an eternity of underperformance, international stocks are finally getting their groove back when measured against domestic counterparts. Year-to-date, the widely followed MSCI ACWI ex-USA Index is beating the S&P 500 by nearly 130 basis points.

International Wide Moat Stocks Ready to Shine

The VanEck Morningstar International Moat ETF invests in international (ex-U.S.) companies that possess an economic moat per Morningstar's methodology. MOTI has sizable exposure to China which may not suit every investor, due to political and geopolitical risks.

International Moat ETF Rebalance: Alibaba, BASF Added; Financials Trimmed

Over the past five years, MOAT is up 48.2% versus 35.7% gains in the S&P 500.

Here's Why Moat ETFs Are Beating S&P 500

Time will tell if 2023 is finally the year in which international stocks get their respective acts together and show signs of life against U.S. equities, but if that scenario materializes, investors should keep in mind that some avenues for tapping into that trend are better than others.

International Wide Moat Stocks Beckon in 2023

Vaneck Digital Asset Mining ETF

NEW YORK--( BUSINESS WIRE )--VanEck announced today the following 2022 annual distributions per share for its VanEck® equity exchange-traded funds.

VanEck Announces Yearend Distributions for VanEck Equity ETFs

Boeing

MercadoLibre

ServiceNow

A moat is a unique competitive advantage that allows a company to outperform others in the same industry over time.

Moat ETFs & Stocks: A Way to Fight Volatility

Investors often associate companies sporting the wide moat designation as large-cap firms.

Big Opportunity Beckons With Smaller Moat Stocks

One of the key elements of a wide moat company is switching costs. It's also easy to explain.

Switching Costs Support Case for Moat ETFs

Fund tracks index of companies with competitive advantages.

VanEck Rolls Out Latest 'Moat' ETF

In the face of ongoing market turbulence, sound companies with a sustainable competitive advantage and attractive valuations can provide investors with core stability.

How to Stabilize Your Core Portfolio

International equities — from both developed and emerging markets — have long traded at valuation discounts relative to domestic peers. That's not fresh news.

MOTI Marvelous for Inexpensive International Wide Moat Stocks

By Brandon Rakszawski Senior Product Manager Built with the same approach of the Morningstar Wide Moat Focus Index to target moat companies with attractive valuations, Morningstar's global indexes have impressed thus far in 2022. The Morningstar® Wide Moat Focus IndexSM (the “Moat Index” or “Index”) remained ahead of the S&P 500 index by nearly 4% in 2022 (-9.13% vs.

Global Moat Investing Showing Strength in 2022

As 2022 market performance confirms, not much is working, but as the VanEck Vectors Morningstar Wide Moat ETF (CBOE: MOAT) proves, wide moat stocks are performing less poorly than the broader market. The benefits of wide moat investing aren't confined to U.S. borders.

International Wide Moat Stocks Are Alluring

The VanEck Vectors Morningstar Wide Moat ETF (CBOE: MOAT) provides investors with basket exposure to domestic equities with the wide moat designation, but that style of investing isn't confined to U.S. stocks. MOAT has an international counterpart — the VanEck Vectors Morningstar International Moat ETF (MOTI) — and it's an exchange traded fund to consider today, particularly [.

News for VanEck Vectors Morningstar International Moat ETF ETF (MOTI)