Is GOAT a good ETF?
GOAT is the VanEck Morningstar International Wide Moat ETF from VanEck. It tracks the Morningstar Developed Markets ex-Australia Wide Moat Focus Index. We classify it under Intl, Factor, Quality, and Value. With about $76 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying). Listed on the ASX since 2020-09-08 (about 6 years ago).
On a total-return basis, GOAT has delivered 7% a year over 5 years (ranked 93rd of 189 ETFs we track), 10.19% a year over 3 years (ranked 135th of 236 ETFs we track), and 3.45% a year over 1 year (ranked 179th of 318 ETFs we track).
The management fee of 0.49% is on the higher side. If cost is your priority, VVLU (0.28%), GARP (0.3%), and QLTY (0.35%) cover similar ground for less. It pays a high 10.26% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 11.46%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.36 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 35% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- High 10.26% income yield — good for investors who want regular cash flow.
Things to watch
- Cheaper alternatives exist: VVLU, GARP, and QLTY.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.36).
What GOAT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
Companies with strong balance sheets, stable earnings and high return on equity. A defensive-leaning factor that tends to compound steadily.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; can lag during sharp 'junk rallies' off market bottoms when the riskiest stocks surge.
- In a portfolio
- A reliable long-term core or tilt for investors who prize resilience and steady compounding.
Stocks that look cheap relative to their fundamentals (earnings, book value, cash flow). One of the oldest and best-documented return premiums.
- Market regime
- Rewarded over the very long run and especially in rising-rate, reflation and early-recovery regimes — but endured a long, painful stretch of lagging growth through the 2010s.
- In a portfolio
- A long-term tilt that requires patience and a tolerance for extended underperformance versus the growth side of the market.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.