The Takeaway
The Morningstar US Broad Style Wide Moat Focus Indexes leverage the same metrics as the Morningstar Style Box to maintain style consistency, while targeting stocks with wide moat ratings and attractive valuations.
The Morningstar US Broad Value Wide Moat Focus Index and Morningstar US Broad Growth Wide Moat Focus Index are highly complementary with limited portfolio overlap and differentiated performance.
Investors can use these indexes together to retain tighter control over their style exposures and diversify risk, while harnessing the forward-looking insights of Morningstar’s equity research team.
The Morningstar Moat Focus Indexes leverage insights from Morningstar’s equity research team to target companies with durable competitive advantages and attractive valuations. The flagship index in this family, the Morningstar Wide Moat Focus Index, is not style constrained, which may create unwanted style drift for some.
The Morningstar US Broad Style Wide Moat Focus Indexes are designed to provide more consistent style exposure than the Morningstar Wide Moat Focus Index while incorporating the same moat rating and valuation inputs. The Morningstar US Broad Style Wide Moat Focus Indexes are complementary to each other and the Morningstar Wide Moat Focus Index. Together, they can better diversify risk and mitigate style drift.
©2024 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar has not given its consent to be deemed an "expert" under the federal Securities Act of 1933. Except as otherwise required by law, Morningstar is not responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. References to specific securities or other investment options should not be considered an offer (as defined by the Securities and Exchange Act) to purchase or sell that specific investment. Past performance does not guarantee future results. Before making any investment decision, consider if the investment is suitable for you by referencing your own financial position, investment objectives, and risk profile. Always consult with your financial advisor before investing.
Indexes are unmanaged and not available for direct investment.
Morningstar indexes are created and maintained by Morningstar, Inc. Morningstar® is a registered trademark of Morningstar, Inc.