VanEck Morningstar US Sustainable Wide Moat UCITS ETF (Acc)

Issuer: Van Eck

Asset Class: Equity

TER: 49bps

Trading Currency: GBP

Pays Income: False

Listing Date: 14 Jun 2017

Ticker: MOGB

ISIN: IE00BQQP9H09

This fund provides exposure to US companies that possess sustainable competitive advantages, often referred to as 'economic moats'. The strategy, based on extensive equity research, focuses on businesses that are likely to fend off competition and earn high returns on capital for an extended period. This approach aims to identify high-quality companies that can weather economic cycles and compound value over the long term. The selection process involves identifying firms with strong pricing power, cost advantages, powerful brands, or high switching costs for customers, which act as barriers to entry for potential competitors.

In addition to the 'moat' philosophy, the portfolio incorporates Environmental, Social, and Governance (ESG) criteria. It specifically screens out companies involved in controversial activities or those with high ESG risk ratings, aligning the investment with sustainability principles. The underlying index is composed of what the index provider’s analysts believe are the most attractively priced wide-moat companies that also meet these stringent sustainability standards. This dual focus on durable competitive advantages and responsible business practices offers a unique proposition for investors seeking both quality and values alignment in their portfolios.

This instrument can serve as a core holding for investors seeking long-term growth from the US equity market. By concentrating on high-quality, attractively valued companies with strong fundamentals and a sustainable edge, it differs from broad market-cap-weighted index funds. It may appeal to those looking to build a resilient portfolio based on a fundamental, research-driven methodology rather than simply tracking the overall market, while also integrating important non-financial considerations into their investment decisions.