MOTE Profile
The VanEck Morningstar ESG Moat ETF is designed to provide investors with exposure to high-quality companies that possess sustainable competitive advantages, while integrating environmental, social, and governance (ESG) criteria into its investment process. The fund invests at least 80% of its total assets in securities that are components of the US Sustainability Moat Focus Index, which is constructed to identify firms that not only exhibit strong competitive positions but also maintain robust ESG standards.
The US Sustainability Moat Focus Index, used as the funds benchmark, focuses on companies with long-term competitive advantages, commonly referred to as moats, that are trading at attractive valuations. These firms are evaluated based on their ability to maintain their competitive edge over time, driven by factors such as brand strength, cost advantages, and technological leadership. In addition to these financial metrics, the index screens out companies with high ESG risks, ensuring that only those with strong sustainability practices are included.
The ETF adopts a non-diversified approach, concentrating its investments in a select group of high-quality companies that meet both the financial and ESG criteria set by the index. This focus aims to deliver superior long-term returns by investing in firms that are not only competitively advantaged but also adhere to higher standards of corporate responsibility. The selection process involves rigorous analysis of financial performance, competitive positioning, and ESG factors to align with the fund's investment objectives.
By integrating ESG considerations into its investment strategy, the VanEck Morningstar ESG Moat ETF addresses growing investor demand for responsible investing while seeking to capitalize on the benefits of owning companies with sustainable competitive advantages. The funds strategy reflects a commitment to long-term value creation through a disciplined approach that balances financial metrics with ESG performance, aiming to deliver both financial returns and positive societal impact.
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