NEW YORK--(BUSINESS WIRE)--VanEck is today announcing that the VanEck Morningstar® Wide Moat Strategy is now available on AssetMark’s Separately Managed Account (SMA) platform, providing access to Morningstar’s approach to investing in quality companies at attractive valuations to financial advisors on the platform.
The “wide moat” strategy is a simple but highly differentiated approach to equity investing, powered by Morningstar’s forward-looking, rigorous equity research process. The strategy seeks to track the Morningstar Wide Moat Focus Index, the same index underpinning the $14B VanEck Morningstar Wide Moat ETF (MOAT), which has delivered strong long-term performance relative to the S&P 500 since its launch in April of 2012.
Morningstar’s equity research team researches and assigns an economic moat rating to companies based on their ability to fend off competition and maintain profitability into the future, and develops a fair value estimate. To be eligible for inclusion in the index, a company must have “wide moat” status—meaning Morningstar expects it to maintain its competitive advantages for at least 20 years—and be trading at an attractive price relative to Morningstar’s fair value estimate.
“In a world where investment solutions are becoming increasingly commoditized, financial advisors need differentiated strategies to meet the complex needs of their clients. We are excited to deliver Morningstar’s moat investing approach to identifying quality companies at attractive prices to AssetMark’s SMA’s platform,” said Brandon Rakszawski, Director of Product Management with VanEck.
The addition of the VanEck Morningstar Wide Moat Strategy to AssetMark’s SMA platform builds on the strategic relationship between the two firms. Since July 2023, AssetMark has worked with VanEck to offer the VanEck Thematic Disruption Strategy on its platform. This model of ETFs focuses on innovative long-term secular thematic trends, including the future of technology, energy, health and finance. The VanEck Thematic Disruption Strategy was updated to include exposure to bitcoin through the VanEck Bitcoin Trust (HODL) shortly after the fund’s launch.
AssetMark is a leading platform for custom model and investment solutions. AssetMark’s extensive due diligence and thorough curation process is applied to their selection and offering of models to support the dynamic needs of their investors.
“Models are an increasingly important part of financial advisors’ toolkits and AssetMark has a proven track record of adapting its suite of model offerings to meet evolving investor needs. We’re very pleased that they have added our Wide Moat Strategy to their SMA lineup and have also been excited to see the response our Thematic Disruption Strategy has received to this point,” said Ed Lopez, Head of Product Management with VanEck.
VanEck regularly publishes insights around moat-focused investing here as well as insights around thematic investing, digital assets and more.
About VanEck
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of March 31, 2024, VanEck managed approximately $101.9 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
Important Disclosures
The VanEck Morningstar® Wide Moat Strategy and VanEck Thematic Disruption Strategy are not mutual funds or other types of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the models will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the models are not subject to compliance with the requirements of such acts.
An investment in the VanEck Morningstar Wide Moat Strategy may be subject to risks which include, among others, risks related to investing in equity securities, consumer discretionary sector, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, index tracking, no guarantee of active trading market, trading issues, passive management, liquidity, non-diversification and index-related concentration risks, all of which may adversely affect the Strategy. Medium-capitalization companies may be subject to elevated risks.
An investment in the VanEck Thematic Disruption Strategy may be subject to risks which include, but are not limited to, risks related to small- and medium-capitalization companies, emerging market issuers, foreign securities, foreign currency, equity securities, derivatives, blockchain, social media analytics, non-diversification, sector, market, economic, political, regulatory, world event, index tracking, cash transactions, operational, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, issuer-specific changes, and index-related concentration risks, all of which may adversely affect the Strategy. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks. Derivatives may involve certain costs and risks such as liquidity, interest rate, and the risk that a position could not be closed when most advantageous.
An investment in the VanEck Morningstar Wide Moat ETF may be subject to risks which include, among others, risks related to investing in equity securities, health care sector, industrials sector, information technology sector, financials sector, medium-capitalization companies, market, operational, high portfolio turnover, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversification and index-related concentration risks, all of which may adversely affect the Fund. Medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs. Please read the prospectus and summary prospectus carefully before investing.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the VanEck Morningstar Wide Moat Strategy and bears no liability with respect to that Strategy or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
The Morningstar® Wide Moat Focus IndexSM consists of companies identified as having sustainable, competitive advantages and whose stocks are attractively priced, according to Morningstar.
Indices are unmanaged and are not securities in which investments can be made.
©️ Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation
VanEck Bitcoin Trust (“HODL”) Disclosures
This material must be preceded or accompanied by a prospectus. An investment in the Trust may not be suitable for all investors. Before investing you should carefully consider the VanEck Bitcoin Trust's (the "Trust") investment objectives, risks, charges and expenses.
Investing involves significant risk, and you could lose money on an investment in the Trust. The value of Bitcoin is highly volatile, and the value of the Trust’s shares could decline rapidly, including to zero. You could lose your entire principal investment. For a more complete discussion of the risk factors relative to the Trust, carefully read the prospectus.
The Trust's investment objective is to reflect the performance of the price of Bitcoin less the expenses of the Trust's operations. The Trust is a passive investment vehicle that does not seek to generate returns beyond tracking the price of Bitcoin.
The Trust is not an investment company registered under the Investment Company Act of 1940 (“1940 Act”) or a commodity pool for the purposes of the Commodity Exchange Act (“CEA”). Shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of HODL do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
An investment in the Trust is subject to risks which include, but are not limited to, the historically and potentially future extreme volatility of bitcoin, various potential factors that may adversely affect the liquidity of Trust shares, the limited history of the Index from which the value of bitcoin and hence the value of Trust shares will be determined, potential threats to the Trust’s bitcoin custodian, and the unregulated nature and lack of transparency surrounding the operations of bitcoin trading platforms, all of which may ultimately adversely affect the value of shares of the Trust. Please note that this is not an exhaustive list of risks pertaining to the Trust. Please read carefully the prospectus for a complete list of potential risks.
Because shares of the Trust are intended to reflect the price of the Bitcoin held in the Trust, the market price of the shares is subject to fluctuations similar to those affecting Bitcoin prices. Additionally, shares of the Trust are bought and sold at market price, not at net asset value (“NAV”). Brokerage commissions will reduce returns.
Trust shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of Trust shares relates directly to the value of the Bitcoin held by the Trust (less its expenses), and fluctuations in the price of Bitcoin could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the Bitcoin represented by them. The Trust does not generate any income, and as the Trust regularly issues shares to pay for the Sponsor’s ongoing expenses, the amount of Bitcoin represented by each Share will decline over time.
This content is published in the United States for residents of specified countries. Investors are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this content. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
The Sponsor of the Trust is VanEck Digital Assets, LLC. The Marketing Agent for the Trust is Van Eck Securities Corporation. VanEck Digital Assets, LLC., and Van Eck Securities Corporation are wholly-owned subsidiaries of Van Eck Associates Corporation.
All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
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