WMWElements Morningstar Wide Moat Focus Total Return Index ETN
WMW Fund Description
The ELEMENTS Morningstar Wide Moat Focus Total Return ETN tracks a staggered, equal-weighted index of 40 stocks that Morningstar determines to have the highest fair value among firms with a sustainable competitive advantage.
WMW Factset Analytics Insight
WMW launched in 2007, has since been eclipsed by a superior substitute. The ETN’s index picks firms with competitive advantages over peers (patents, high switching costs, etc.), then chooses the 40 most undervalued companies in the group. The index is equal weighted with a staggered rebalance: half the portfolio is reconstituted with equal weights every six months, and the other half follows three months later. It also caps turnover and sector exposure. This results in WMW tracking more than 40 names at times. Such exposure translates to serious active risk (despite the index-based methodology).
The ETN competes with Van Eck’s MOAT, tracking the same underlying index. WMW has languished with thin assets and poor liquidity, while MOAT has attracted strong interest since its 2012 launch, demonstrating investors' belief in the underlying strategy. In short, investors have no reason to choose WMW over MOAT, which is bigger, cheaper and comes in an ETF wrapper. Ironically, WMW lacks a wide moat of its own.
WMW CHARTS AND PERFORMANCE
WMW Top 10 Countries
WMW Top 10 Sectors
WMW Top 10 Holdings
WMW Portfolio Management
WMW Tax Exposures
WMW Fund Structure
WMW Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of WMW. WMW is rated a 0 out of 5.
WMW Economic Development
WMW Performance Statistics
WMW BENCHMARK COMPARISON SUMMARY
WMW BENCHMARK COMPARISON MARKET CAP SIZE
Options Strategies for Outcome Investing
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.