Market Vectors Wide Moat ETF (NYSEARCA:MOAT) marks its one-year anniversary today, April 24, 2013, the fund’s sponsor announced.
“The result of Morningstar’s analysis is an index comprised of high-quality stocks with the potential for long-term success”
MOAT concludes its first year of trading with roughly $180 million in assets under management (AUM), securing its place as the fourth most successful U.S.-listed equity ETF launched in the one-year period ending March 31, 2013, according to Morningstar data.
MOAT seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® Wide Moat Focus IndexSM. Morningstar’s wide-moat analysis, on which the index is based, seeks to identify the 20 most attractively priced companies possessing sustainable competitive advantages derived from sources such as intangible assets, cost advantage, switching costs, network effect and efficient scale.
“The result of Morningstar’s analysis is an index comprised of high-quality stocks with the potential for long-term success,” said Brandon Rakszawski, product manager with Market Vectors ETFs. “It’s a simple idea – take part in the growth of attractively priced companies with the potential to outperform due to structural competitive advantages – but the true value comes in the quality of the underlying research. With MOAT, a liquid, transparent ETF, investors gain access to the companies that Morningstar’s equity analyst team believes to be best-positioned based on the moat criteria.”
As of March 31, 2013, MOAT held Bank of New York Mellon, Berkshire Hathaway, Exelon, General Electric, Intel, Microsoft and other well-known, high-quality companies.
About Market Vectors ETFs
Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family totaled $26.1 billion in assets under management, as of March 31, 2013, making it the fifth largest ETP family in the U.S. and ninth largest worldwide.
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and managed approximately $35.0 billion in investor assets as of March 31, 2013.
The value of the securities held by the Fund may fluctuate due to market and economic conditions or factors relating to specific issuers. Small- and medium-capitalization companies may be more volatile than large-capitalization companies. The Fund is subject to index tracking risk and may not be able to invest in certain securities in the exact proportions in which they are represented in the Index. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors. The Fund may loan its securities, which may subject it to additional credit and counterparty risk.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the Market Vectors Wide Moat ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
The “net asset value” (NAV) of an ETF is determined at the close of each business day, and represents the dollar value of one share of the ETF; it is calculated by taking the total assets of an ETF subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as an ETF’s intraday trading value. Investors should not expect to buy or sell shares at NAV. Total returns are based upon closing “market price” (price) of the ETF on the dates listed.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit vaneck.com/etf. Please read the prospectus and summary prospectus carefully before investing.