Editors note: An earlier version of this article incorrectly stated that WMW, a US-listed ETN that tracks the same Morningstar index, was a closet tracker. It has been drawn to our attention that the correlation between WMW and the S&P 500 is only 0.89 and therefore not a closet tracker. We regret the errors. (7/1/18).

KIM Kindex, a subsidiary of Korea Investment Management, one of the largest financial services companies in Korea, is listing a new ETF that targets US companies that have robust competitive advantages. The KIM KINDEX US Wide Moat ETF will track the Morningstar Wide Moat Focus Index, in what we understand to be one of the few Morningstar indexes to be tracked by a Korean ETF issuer.

The index is proprietary. It is "composed of the most undervalued, highest-quality companies in our coverage universe. The companies in this index must have an economic moat rating of wide (meaning we think they have advantages that will fend off competitors for at least 20 years), and their shares must be trading below their fair value estimates," Morningstar explain.