Wide Moat ETF Hits New 52-Week High

For investors seeking momentum, Market Vectors Morningstar Wide Moat ETF (MOAT - ETF report) is probably on radar now. The fund just hit a 52-week high, and is up 26.5% from its 52-week low price of $25.96/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

MOAT in Focus  

This fund provides exposure to the most attractively valued securities having sustainable competitive advantage. It holds 21 securities in its basket with key holdings in healthcare and financials. The product charges 49 bps in annual fees from investors.

Why the Move?

This corner of the broad investing world has been an area to watch lately given the bouts of volatility arising from weak corporate earnings. This is especially true as moat stocks offer solid returns while ensuring safety of income. These wide moat companies not only warrant rapid growth but also preserve value via returns on invested capital over the long term. These companies are well positioned with huge liquid cash and a strong balance sheet, making it difficult for their rivals to outdo the companies with wide moats.

More Gains Ahead?

It seems that MOAT might remain strong given a high weighted alpha of 9.59% and a mediocre 20-day volatility of 15.03%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.