Van Eck Global Launches Unique ETF in Europe
Van Eck Global Launches Unique ETF in Europe ETF invests in US companies with structural competitive advantage
Underlying index has historically outperformed the US market
On 28 October 2015, Van Eck Global Investments Ltd. launched the Market Vectors® Morningstar US Wide Moat UCITS ETF. It is the first ETF in Europe to provide exposure to “wide moat” companies, i.e. companies with a structural competitive advantage that have the potential for long-term above-average returns on capital. The ETF is listed on the London Stock Exchange (ticker: MOAT) and tracks the equally weighted Morningstar® Wide Moat Focus IndexTM developed by Morningstar, Inc., a leading provider of independent investment research.
“We are excited to bring this unique ETF to Europe. Van Eck has always been committed to introducing new products to the market that are the first of their kind and MOAT is just that,” said Lars Hamich, CEO of Van Eck Global (Europe). “MOAT’s underlying index provides access to Morningstar’s proprietary economic moat rating and valuation research and allows investors to cover the 20 most attractively priced US high-quality companies with a wide Economic Moat rating. Since its inception in 2007, the index has outperformed the US equity market with a cumulative performance of 122.45 percent while that of the S&P 500 Index was 68.09 percent.* We think that MOAT offers an attractive addition to those seeking to invest in US companies,” Mr. Hamich added.
The Market Vectors Morningstar US Wide Moat UCITS ETF is the latest addition to Van Eck’s European ETF platform which launched in April 2015. With exclusive exposure to the US market, the Market Vectors Morningstar US Wide Moat UCITS ETF currently covers eight sectors. As of 20 October 2015, the top three sector weightings were Consumer Discretionary (25.30%), Industrials (24.63%) and Information Technology (20.76%). The top five ranks of the ETF basket are held by Autodesk (5.43%), Twenty-First Century Fox Inc. (5.39%), Discovery Communications Inc. (5.25%), Procter & Gamble (5.24%) and Qualcomm Inc. (5.24%).
MOAT, Van Eck’s third UCITS ETF, has a total expense ratio of 0.49 percent. Following the listing on the London Stock Exchange, the ETF is scheduled for subsequent listings on selected exchanges in continental Europe. The fund is currently registered for public distribution in Germany, Finland, Ireland, the Netherlands, Norway, Spain, Sweden and the United Kingdom.
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Note to the Editors
About Van Eck Global
Van Eck Global Investments Ltd., the management company of Market Vectors UCITS plc, is a subsidiary of Van Eck Associates Corporation, also known as Van Eck Global. The company is regulated under the law of Ireland and distributes the Market Vectors UCITS ETFs. Van Eck Global offers investors focused investment strategies that capitalise on specific market opportunities. Van Eck Global seeks to provide long-term competitive performance through active and index strategies based on optimal investment approaches and portfolio delivery. The firm is driven by innovation, a hallmark of Van Eck Global since its founding in 1955. Targeted investment strategies – including actively managed UCITS hard assets, gold and emerging markets fixed income funds – benefit from the combination of Van Eck Global’s experience and in-depth knowledge of emerging markets and natural resources. Van Eck Global managed approximately USD 25 billion in investor assets as of 30 September 2015.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than 180 USD billion in assets under advisement and management as of June 30, 2015. The company has operations in 27 countries.
Morningstar®Wide Moat Focus Index™ is a trade mark of Morningstar Inc. and has been licensed for use for certain purposes by Van Eck Global. Market Vectors Morningstar US Wide Moat UCITS ETF is not sponsored, endorsed, sold or promoted by Morningstar and Morningstar makes no representation regarding the advisability in Market Vectors Morningstar US Wide Moat UCITS ETF.