Core Insights - The September Moat Index review has reduced tech exposure, added new companies, and maintained a strong value tilt, reflecting a contrarian stance in the current market [1][2][5]. Moat Index Review Highlights - The Morningstar Wide Moat Focus Index underwent its quarterly review on September 19, 2025, targeting attractively priced, high-quality U.S. companies [2][4]. - The tech sector weight in the Moat Index decreased by approximately 8%, resulting in a 13% underweight compared to the S&P 500 Index, marking the largest underweight since the start of 2025 [5][6]. - A total of 17 companies were added and removed from the Moat Index, including five first-time entrants: Airbnb, Broadridge, Copart, Entegris, and Jack Henry & Associates [5][6]. - The Moat Index's price-to-fair value ratio decreased from about 0.87 to 0.82, indicating an 18% discount to fair value, contrasting with the S&P 500 Index, which is currently 4% overvalued [5][6]. Sector and Style Exposure - The Moat Index continues to focus on undervalued application software and semiconductor companies, while the exposure to the Magnificent 7 companies is significantly underweight at 4.3% compared to 34.2% in the S&P 500 Index [5][6]. - The value style remains a notable overweight relative to the broader market, a trend that has persisted for nearly two years despite market volatility [6].

Core Insights - The VanEck Morningstar Wide Moat ETF (MOAT) is a smart beta ETF launched on April 24, 2012, providing broad exposure to the Style Box - Large Cap Blend category [1] - The ETF has amassed over $12.73 billion in assets, making it one of the largest in its category, and aims to match the performance of the Morningstar Wide Moat Focus Index [5] - The ETF has a 12-month trailing dividend yield of 1.32% and annual operating expenses of 0.47%, which is competitive within its peer group [6] Fund Characteristics - MOAT's primary focus is on companies with sustainable competitive advantages, tracking the 20 most attractively priced firms [5] - The ETF's heaviest sector allocation is in Information Technology at approximately 27.7%, followed by Industrials and Healthcare [7] - The top three holdings include Estee Lauder Cos Inc (2.95%), Applied Materials Inc, and Boeing Co, with the top 10 holdings comprising about 26.86% of total assets [8] Performance Metrics - As of July 22, 2025, MOAT has gained approximately 3.37% year-to-date and 10.05% over the past year, with a trading range between $76.53 and $98.73 in the last 52 weeks [10] - The ETF has a beta of 1.01 and a standard deviation of 18.90% over the trailing three-year period, indicating a medium risk profile [10] Alternatives and Comparisons - Other ETFs in the same space include SPDR S&P 500 ETF (SPY) and Vanguard S&P 500 ETF (VOO), with assets of $646.63 billion and $694.54 billion respectively [11] - SPY has an expense ratio of 0.09%, while VOO charges 0.03%, presenting lower-cost alternatives for investors [11]