VanEck has launched a smart beta equity ETF comprised of stocks with sustainable competitive advantages over their peers.

The VanEck Vectors Morningstar Global Wide Moat UCITS ETF (GOAT) is listed on the London Stock Exchange with a total expense ratio of 0.52%.

Tracking the Morningstar Global Wide Moat Focus index, GOAT is comprised of attractively priced stocks that have a long-term advantage over competitors.

Morningstar determines which companies can differentiate themselves and their market shares from their competitors with an economic moat rating.

The moat rating includes factors such as cost leadership, efficient scale, network effects, high switching costs and intangible assets.

Additionally, a fair value estimate is also a determining factor for inclusion in the index.

GOAT includes equities from regions such as the US, Europe, Japan, China and Australia.

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Martijn Rozemuller, head of Europe at VanEck, said: “With its smart beta strategy, GOAT offers an attractive alternative to the global equity benchmark MSCI World.

“Its index has outperformed the MSCI World index by 3.97% since its launch on 23 April 2018."

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