Which ETF? The Market Vectors Wide Moat ETF (MOAT), Let's Me Tell You Why

The author published the analysis report here is for his own reference only. It is not an indication of the author's business interests for companies or funds being analyzed. It is definitely not an investment advice, please see the full disclaimer located at the bottom of the blog post.

In the page of 122 of Why Moats Matter book, I discovered the Morningstar Wide Moat Focus Index (MWMFT) has generated annualized returns of 15.9% versus 8.8% for the S&P 500 since its inception on Sep 30, 2002 through Sep 30, 2013.

Let's see some real comparison on the following ETFs (To be exact, WMW is an ETN)

• SPDR® S&P 500® ETF (SPY)
• ELEMENTS Morningstar WideMoat Focus Total Return ETN (WMW) - the ETN is chosen in this comparison as it has the longest track record of ETF-type of fund in the market

View Latest Chart Data

Still not impressed? Let's me show you the money! See the following chart for how much your $10K grow if you invested into WMW since its inception:

Source: Morningstar

Okay, WMW is used for comparison purpose only, I would like to introduce you the real ETF that tracked MWMFT: Market Vectors Wide Moat ETF (MOAT) which commenced on Apr 24, 2012. Personally, I'm favored MOAT over WMW due to credit risk and lower expense ratio (0.49% - 0.5% vs. 0.75%), you can find out more about ETF vs ETN here. If you still worry MOAT is not as good as WMW, please see the following chart:

View Latest Chart Data

What is MOAT? Please see the following short description and growth performance chart extracted from the MOAT's fact sheet (click the link to see the latest data)

You can find out more about MWMFT by viewing the longer description I extracted from Prospectus of MOAT here.

Please let's know if you found US-focused ETF that perform better than MOAT.

Thanks for reading till the end, I hope the writing above benefit you and worth your reading time.

I'd love to hear comments from you! :)