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Same Moat Approach—Now in Different Styles

edited March 29 in Fund Discussions
Below is the email i received:

Just Launched: Wide Moat Growth ETF (MGRO) and Wide Moat Value ETF (MVAL)
Clients asked. We delivered. We are thrilled to now offer the VanEck Morningstar Wide Moat Growth ETF (MGRO) and VanEck Morningstar Wide Moat Value ETF (MVAL). These two new ETFs are built on the foundation of our flagship VanEck Morningstar Wide Moat ETF (MOAT).

MGRO and MVAL allow investors to access Morningstar’s forward-looking equity research that identifies quality companies trading at attractive valuations and express their views on growth versus value in the US market.

P.S.: The subject line of this thread was the subject line of the email from VanEck.


  • edited March 28
    Not yet enough AUM or trading volume to dip our toes in but holdings and other information is available. Since they are only a day old, not all stock services may recognize the tickers yet.

    If one is inclined to actively manage MOAT, these two (MGRO and MVAL) give one additional tools. Note that MOAT has approx 55 holdings whereas the new ones have approx 40 holdings and as such the new funds are more concentrated (& focused).

    Also, info at this link is useful to have some discussion about these new moat ETFs.
  • I view MOAT as an excellent concentrated fund with a sound strategy supporting it. Not sure if a further breakdown would be better, or simply add more risk.
  • Cambria is doing a similar thing with its shareholder-yield thesis. They now have a micro/small cap version.

    IDK. Maybe you should just focus on the best stocks in the thesis, rather than splitting them by cap boxes.
  • edited March 29
    Because of its methodology, MOAT ends up selling constituents too soon or hang on to value traps longer than necessary. YTD, MOAT is the worse performing of any fund I have in my watchlist. As much as I like the moat theme, it is unlikely I am going to add anymore to MOAT (5% allocation); so it increases or decreases in allocation by its performance in the portfolio. I am guessing if I were to buy one of the new ones, it is going to be MGRO which I am guessing is likely going to be larger cap than MOAT. And the buy will be in an IRA to trade it if necessary.
  • I’m satisfied with MOAT, but I think Van Eck is guilty of ETF proliferation. Already they sponsor moat funds for international, ESG, global, and SMID, none of which derivative ETFs have done particularly well. Growth and value moat flavors don’t tempt me, either.
  • I appreciate you drawing my attention to recent performance of MOAT. In fact, over the past nine months it is lagging two other ETFs I like, TCAF and DSTL. The new fund from Capital Group, CGDV, has done better than all three, to my surprise. Maybe the MOAT mechanism sells winners too soon as you, or another member, has suggested.
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