MVAL ETF: Forward-Looking Style Characteristics
April 15, 2024
Watch Time 2:14 MIN
VanEck Morningstar Wide Moat Value ETF, ticker MVAL, offers investors access to Morningstar's proven forward-looking equity research with consistent and differentiated style exposure.
Morningstar’s style classification system, which also underpins its widely recognized style box, stands out in the market by considering not only backward-looking measurements, but also forward-looking style characteristics.
Style Score Process
In fact, forward -looking projections are given equal prominence when determining a company's style score. Morningstar considers not only traditional style metrics like price to book, price to sales, earnings growth, sales growth. But 50% of the weighting of a company's style score is determined from its price to projected earnings and long-term projected earnings growth.
MVAL’s Forward-looking Approach
Once style characteristics are assigned, more forward-looking research kicks in. Morningstar's tried and true economic moat research and valuation research inform selections within the value style category.
When identifying quality companies, Morningstar selects those it projects can fend off competition upwards of 20 years into the future. When assessing a company's valuation, Morningstar projects free cash flows decades into the future, discounting it back to today in order to identify what a company is worth today based on tomorrow's cash flow.
MVAL is forward-looking from front to back. It leverages the best of Morningstar's equity research to improve value exposure across investors' portfolios.
IMPORTANT DISCLOSURE
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the VanEck Morningstar Wide Moat Value ETF (MVAL) may be subject to risks which include, among others, risks related to investing in equity securities, value style investing, financials sector, health care sector, industrials sector, large- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Fund. Large- and medium-capitalization companies may be subject to elevated risks. The Fund’s value strategy may result in the Fund investing in securities or industry sectors that underperform the market as a whole. Furthermore, the value companies identified by the Index provider may not operate as expected, and there is no guarantee that the index provider’s proprietary valuation model will perform as intended.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation.
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