The VanEck Morningstar Wide Moat ETF (ASX: MOAT) is a leading ASX-listed exchange-traded fund (ETF). I think it's one of the most appealing funds to consider for the long term, particularly after the recent market volatility.
The MOAT ETF has dropped 8% since the end of January 2025, so it's noticeably cheaper. It doesn't drop 8% very regularly, so these declines can be a useful opportunity to invest at a better value. As the chart above shows, over the long term, the ASX ETF has managed to climb.
Whatever happens in 2025 won't necessarily influence the ASX ETF's returns by 2030. We've seen how crises such as the GFC and COVID-19 have faded into history despite their massive impacts on the global economy.
The MOAT ETF aims to invest in businesses with strong economic moats, also called competitive advantages, that are expected to endure for at least 20 years, which can help them continue generating strong profits.
In other words, these businesses are predicted to continue making pleasing profits for many years ahead.
Investing in great businesses with exciting long-term futures is an effective strategy for creating solid returns, in my opinion.
Those advantages can take many different forms, such as brand power, intellectual property, lower costs, and network effects.
Some of the biggest positions in the portfolio currently include Gilead Sciences, Bristol-Myers Squibb, and Altria.
There's an extra layer of appeal about this ASX ETF than just the high-quality nature of the stocks it owns.
The MOAT ETF only invests in one of these great businesses if analysts from Morningstar (who do the stock picking) decide that the share price of these companies is undervalued compared to what they think it's really worth.
In other words, analysts are only picking stocks for the ASX ETF's portfolio that they believe are attractively priced.
After a fall of 8% of the ASX ETF's unit price, the underlying businesses may be even better value than when the analysts decided to invest.
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