During its lifetime, the Morningstar Wide Moat Focus Index has delivered superior returns to the S&P 500®. Since 2007, the S&P 500 has generated a total return of 113 per cent. In the same period, the Morningstar Wide Moat Focus Index achieved a return of 210.5 per cent, almost 100 percentage points above the S&P 500 (as at 31 August 2017).
Moat investing is not a smart beta approach, but it proves it is a smart investment approach now used by many ETFs which is worth considering for investors looking to achieve potential outperformance against the broader market with a passive investment vehicle.
Article continues after advert
Thorsten Hunke is managing director at VanEck
Page 2 of 2
