Van Eck Global Investments claims to have launched the first exchange-traded fund (ETF) in Europe to invest in US companies that are selected by Morningstar for their “sustainable competitive advantage”.
Launched through its Market Vector brand, Van Eck says companies in the portfolio have the potential for long-term above average returns because they are screened using the Morningstar Wide Moat Focus Index. The index equally weights its constituents.
Since its inception in 2007, the index has outperformed the US equity market with a cumulative performance of 122.45%.
Lars Hamich, chief executive of Van Eck Global (Europe) says: “We think that Moat offers an attractive addition to those seeking to invest in US companies.”
The Market Vectors Morningstar US Wide Moat Ucits ETF is listed in London, but other country listings will follow.
Van Eck launched its European ETF platform in April 2015.
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