Is MOAT a good ETF?
MOAT is the VanEck Morningstar Wide Moat ETF from VanEck. It tracks the Morningstar Wide Moat Focus Index. We classify it under US, Factor, Quality, and Value. With about $877 million in assets it is a solidly established fund. Listed on the ASX since 2015-06-24 (about 11 years ago).
On a total-return basis, MOAT has delivered 14.26% a year over 10 years (ranked 13th of 108 ETFs we track), 9.42% a year over 5 years (ranked 60th of 188 ETFs we track), 8.52% a year over 3 years (ranked 139th of 226 ETFs we track), and 3.28% a year over 1 year (ranked 203rd of 308 ETFs we track). Its strongest showing is over 10 years, where it sits in the top 12% of all ETFs we track.
The management fee of 0.49% is on the higher side. For comparison, similar ETFs average around 0.38%. If cost is your priority, IVV (0.04%), GARP (0.3%), and QLTY (0.35%) cover similar ground for less. It pays a high 9.91% 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 10 years its volatility has been moderate (annualised standard deviation around 12.85%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.94 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is somewhat elevated at about 40% a year — close to half the holdings turn over annually, which starts to realise capital gains more often and chips away at after-tax returns.
Strengths
- Top-12% returns over 10 years (13th of 108 ETFs we track).
- High 9.91% income yield — good for investors who want regular cash flow.
Things to watch
- Pricier than similar ETFs, which average around 0.38%.
- Cheaper alternatives exist: IVV, GARP, and QLTY.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What MOAT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
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.