Today VanEck rolled out two equity ETFs with somewhat disparate objectives.
The VanEck Vectors Morningstar Global Wide Moat ETF (GOAT) is a global version of the firm’s successful $1.6 billion VanEck Vectors Morningstar Wide Moat ETF (MOAT). Meanwhile, the VanEck Vectors Morningstar Durable Dividend ETF (DURA) focuses on U.S. stocks that have high dividend yields that are expected to persist.
GOAT comes with an expense ratio of 0.52%, while DURA charges 0.29%. Both list on the NYSE Arca.
Very Different Funds
GOAT tracks an index derived from the Morningstar Global Markets Index and screens its components to select the ones that have a wide moat, are attractively priced and are exhibiting momentum. A company’s moat refers to its competitive advantages, which Morningstar determines based on a range of quantitative and qualitative criteria, the prospectus says.
As of the end of June, the fund’s index included 62 stocks, with European securities representing 23.7% of the index. During reconstitutions, the index’s individual sectors and country weights are capped at 10%, according to the document.
DURA tracks the Morningstar US Dividend Valuation Index, which selects its components from the Morningstar U.S. Market Index. Components must be in the top half of the parent index based on 12-month dividend yield, in the top half of their peer group based on their distance-to-default score, and in the top 70% with regard to Morningstar’s star-based scoring methodology. For the purposes of the index, there are two peer groups, which include financials stocks and nonfinancials stocks.
As of the end of June, the fund’s underlying index included 98 components.
Contact Heather Bell at [email protected]