Morningstar's $12.9 Billion ETF Ripped 340%

"MOAT tracks the Morningstar Wide Moat Focus Index, holding around 50 US companies that Morningstar's analysts believe possess sustainable competitive advantages and trade below fair value. The fund rebalances quarterly, keeping turnover moderate at 55%. At $12.9 billion in assets, it offers tight spreads and reliable liquidity."

"Over the past decade, MOAT returned 340%, compared to 261% for the S&P 500. That's meaningful outperformance, though the gap narrows over shorter periods. In the past year, MOAT gained 16.8% versus 16.9% for SPY. Over five years, MOAT returned 77% against SPY's 83%. The fund's industrial tilt has helped recently, with the Industrials sector ETF (XLI) up 25% over the past year, but that same concentration introduces cyclical risk."

"MOAT charges 0.47%, reasonable for an actively selected strategy but still 42 basis points more than a total market fund like VTI. That fee matters over time, especially when moat stocks underperform. The fund's sector concentration is double-edged. Nearly two-thirds of assets sit in Industrials, Tech, and Healthcare. When those sectors lead, MOAT benefits. When they lag, the portfolio has limited diversification to cushion losses."

MOAT tracks the Morningstar Wide Moat Focus Index and holds roughly 50 US companies that Morningstar deems to have sustainable competitive advantages and trade below fair value. The fund rebalances quarterly with about 55% turnover and manages $12.9 billion in assets, providing tight spreads and liquidity. Top sector exposures are Industrials (23.9%), Information Technology (21.9%), and Healthcare (18.8%), with no Energy, Materials, or Utilities exposure. Over ten years MOAT has outperformed the S&P 500, though shorter-term returns have been closer. The fund charges 0.47% and carries cyclical risk from its sector concentration.

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