Stealthy Strength In MOAT, A Solid Diversifier Versus The SPX

seekingalpha08-19

Invesco S&P 500 Equal Weight ETF hit an all-time high, along with VanEck Morningstar Wide Moat ETF.MOAT focuses on US companies with sustainable competitive advantages, strong momentum, and low ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStealthy Strength In MOAT, A Solid Diversifier Versus The SPX\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-19 23:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4715637-stealthy-strength-in-moat-a-solid-diversifier-versus-spx><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Invesco S&P 500 Equal Weight ETF hit an all-time high, along with VanEck Morningstar Wide Moat ETF.MOAT focuses on US companies with sustainable competitive advantages, strong momentum, and low ...</p>\n\n<a href=\"https://seekingalpha.com/article/4715637-stealthy-strength-in-moat-a-solid-diversifier-versus-spx\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4550","symbol_name":"红杉资本持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4715637-stealthy-strength-in-moat-a-solid-diversifier-versus-spx","article_id":"2460405517","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/888867856/image_888867856.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2460405517","pubTimestamp":1724081349,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Invesco S&P 500 Equal Weight ETF hit an all-time high, along with VanEck Morningstar Wide Moat ETF.MOAT focuses on US companies with sustainable competitive advantages, strong momentum, and low concen","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4550":"红杉资本持仓","OEF":"标普100指数ETF-iShares","BK4588":"碎股","RSP":"平均加权指数ETF-Rydex S&P","MOAT":"Market Vectors Wide Moat Etf","SPY":"标普500ETF","BK4581":"高盛持仓","SPXU":"三倍做空标普500ETF","BK4504":"桥水持仓","FDN":"First Trust Dow Jones Internet I","SDS":"两倍做空标普500ETF","SSO":"两倍做多标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100","SH":"标普500反向ETF","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","IVV":"标普500指数ETF","VOO":"Vanguard标普500ETF","BK4559":"巴菲特持仓"},"translate_title":"护城河中的隐形力量，与SPX相比是可靠的多元化工具","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RSP":1,"MOAT":1,"VOO":0.9,"SPY":0.9,"FDN":0.9,"IVV":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"OEF":0.6,".SPX":0.6,"ESmain":0.6},"content_text":"Invesco S&P 500 Equal Weight ETF hit an all-time high, along with VanEck Morningstar Wide Moat ETF.MOAT focuses on US companies with sustainable competitive advantages, strong momentum, and low concentration in top holdings.MOAT's portfolio offers diversification, exposure to different sectors, and strong technical performance, making it a buy according to the author.With high absolute and relative strength, I outline key prices levels to watch and make a point about broadening EPS growth trends.   PPAMPicture The S&P 500 remains off its July 16 peak, but that doesn’t mean there isn’t a significant number of US equities notching new all-time highs. It might come as a surprise, but the Invesco S&P 500 Equal Weight ETF (RSP) finished last Friday with a fresh all-time weekly high to settle. Indeed, stocks away from the Magnificent Seven are generally doing fine, even after the yen carry trade scare back on August 6.  Another fund with comparable characteristics to RSP is also flying high at an all-time peak – the VanEck Morningstar Wide Moat ETF (BATS:MOAT). I have a buy rating on the fund given its reasonable valuation and very impressive momentum as we venture further into a normally bearish calendar stretch. MOAT Outperforming the S&P 500 EW ETF Stockcharts.com According to the issuer, MOAT has a focus on U.S. companies Morningstar believes possess sustainable competitive advantages, or “moats.” The index the ETF tracks targets companies trading at attractive prices relative to Morningstar’s estimate of fair value and is fueled by Morningstar’s forward-looking, rigorous equity research process driven by over 100 analysts globally. MOAT is a large ETF with $15.3 billion in assets under management as of August 16, 2024. The US-focused fund features a very low 0.79% forward dividend yield, so it does differ from the US large-cap value space in that respect, as well as RSP. MOAT’s annual expense ratio is moderate at 0.47% but share-price momentum is extremely strong right now – earning the ETF a strong A Momentum Rating by Seeking Alpha’s Quant System.  MOAT doesn’t have the best Risk score, though, primarily due to its historical standard deviation trends. But with a 13.3% annualized volatility figure, I don’t see it as an overly high figure. Moreover, the fund is not highly concentrated in its top holdings, so I am encouraged to see that from a diversification point of view. Finally, MOAT’s 30-day median bid/ask spread is a mere two basis points, so liquidity is healthy, while the average daily volume is north of 800,000 shares. Digging into the portfolio, the 3-star, Bronze-rated ETF by Morningstar has mixed exposure across the style box, another healthy diversification signal. There is a material allocation to SMID caps, so the ETF will likely sway significantly based on what the macroeconomic outlook is, as well as how interest rates are moving.  The current price-to-earnings ratio is 20.9, slightly below that of the S&P 500, though long-term EPS growth is not all that high. The good news is that earnings growth trends for the S&P 493 are projected to catch up with the Mag 7 very soon. MOAT: Portfolio & Factor Profiles Morningstar S&P 493 EPS Growth Expected to About Match That of the Mag 7   JPMorgan Prospective investors should anticipate MOAT’s performing a bit differently than the SPX. That assertion is buttressed by the fund’s high 22.5% weighting toward the risk-on and cyclical Industrials sector. Information Technology, more than 30% of the S&P 500, is just 18% of MOAT.  Interestingly, there is no Energy or Materials exposure, so I would urge investors to consider pairing this fund with a high free cash flow product in the event that we see higher resource commodity prices. Overall, the top 10 stocks account for just 27% of the total allocation. MOAT: Holdings & Dividend Information Seeking Alpha Seasonally, we are in the throes of a bearish period. August through October has historically produced mediocre, even negative, total returns. November is the best month on the calendar, though, so some patience is needed if we were to go strictly off of seasonality. MOAT: Weak August-October Seasonal Trends Seeking Alpha The Technical Take While MOAT’s valuation does not scream value and as there are calendar headwinds, the absolute and relative performance of the ETF is impressive. Notice in the chart below that MOAT closed last week at an all-time high, barely creeping above its July 31st zenith. Moreover, the fund’s long-term 200-day moving average is upwardly sloped, indicating that the bulls control the primary trend.  Also, take a look at the RSI momentum gauge at the top of the graph – it has been ranging in a bullish zone between 40 and 70, never reaching technical oversold conditions throughout this year, which is a positive. Also, I noticed that there’s a high amount of volume by price from about $84 to near $90 – that should offer MOAT some cushion if we see downside price action heading into the end of the third quarter.  Overall, nothing is more bullish in the eyes of a technician than all-time highs, and MOAT continues to outpace the broad market. MOAT: Fresh All-Time High, Rising 200dma, Bullish RSI Trends, $84 Support Stockcharts.com The Bottom Line  I have a buy rating on MOAT. I like the construction and management process, which has proven itself over a few market cycles. The valuation is not overly cheap, but share-price momentum is solid, and the absolute technical situation is bullish, along with high relative performance.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2460405517"}