Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the VanEck Morningstar Wide Moat ETF (MOAT), a passively managed exchange traded fund launched on 04/24/2012.

The fund is sponsored by Van Eck. It has amassed assets over $15.59 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.47%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.77%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 22.40% of the portfolio. Healthcare and Information Technology round out the top three.

Looking at individual holdings, Rtx Corp (RTX) accounts for about 2.88% of total assets, followed by Altria Group Inc (MO) and Campbell Soup Co (CPB).

The top 10 holdings account for about 27.25% of total assets under management.

Performance and Risk

MOAT seeks to match the performance of the Morningstar Wide Moat Focus Index before fees and expenses. The Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.

The ETF has added about 10.88% so far this year and is up about 20.51% in the last one year (as of 08/29/2024). In the past 52-week period, it has traded between $70.71 and $94.29.

The ETF has a beta of 1.02 and standard deviation of 19.22% for the trailing three-year period, making it a medium risk choice in the space. With about 56 holdings, it effectively diversifies company-specific risk.

Alternatives

VanEck Morningstar Wide Moat ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MOAT is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $516.16 billion in assets, SPDR S&P 500 ETF has $563.24 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports

Altria Group, Inc. (MO) : Free Stock Analysis Report

Campbell Soup Company (CPB) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

RTX Corporation (RTX) : Free Stock Analysis Report

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