SMOT ETF

In this episode of the "ETF of the Week" podcast, Todd Rosenbluth, the Head of Research at VettaFi, talked about the VanEck Morningstar SMID Moat ETF (SMOT) with Chuck Jaffe from Money Life. They covered various topics about the fund to help investors gain a better insight into the ETF.

Todd Rosenbluth, the Head of Research at VettaFi, talked about the VanEck Morningstar SMID Moat ETF (SMOT) on this week's "ETF of the Week" podcast with Chuck Jaffe from "Money Life." To find more news, insights, and strategies, check out the Beyond Basic Beta Channel.

SMOT is supposed to offer exposure to narrow- and wide-moat companies from the SMID league. This proposition looks solid at first glance, but neither its performance delivered since inception in 2022 nor the current factor mix are convincing enough. Over November 2022–July 2024, SMOT delivered the weakest risk-adjusted returns compared to IVV, MOAT, and IWR. It slightly beat IWM.

Making its debut on 10/04/2022, smart beta exchange traded fund VanEck Morningstar SMID Moat ETF (SMOT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.

A smart beta exchange traded fund, the VanEck Morningstar SMID Moat ETF (SMOT) debuted on 10/04/2022, and offers broad exposure to the Style Box - All Cap Blend category of the market.

SMOT tracks the Morningstar US Small-Mid Cap Moat Focus Index, selecting wide and narrow moat stocks from the 70-97th percentile of the investable market. Its expense ratio is currently 0.49%. SMOT is different from MOAT because it includes narrow moat stocks, a necessary change because only about 150 small- and mid-cap stocks have wide moat coverage from Morningstar. One consequence is that quality isn't necessarily very strong, though that is true for several other Morningstar Moat ETFs. Instead, SMOT's strength is its 15.02x forward P/E.

Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the VanEck Morningstar SMID Moat ETF (SMOT) is a smart beta exchange traded fund launched on 10/04/2022.

The VanEck Morningstar SMID Moat ETF leverages Morningstar's economic moat rating methodology to select small- and mid-cap stocks with sustainable competitive advantages. The ETF has attracted $292 million in total net assets since its launch in October 2022. The ETF offers exposure to a diverse range of sectors, focuses on attractively valued companies, and has the potential for robust long-term returns.

Making its debut on 10/04/2022, smart beta exchange traded fund VanEck Morningstar SMID Moat ETF (SMOT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.