After two days of falls, the S&P/ASX 200 Index (ASX: XJO) has finally had a positive day today. The ASX 200 was up by a healthy 0.52% at the close on Thursday.
Normally, I am less inclined to buy ASX shares when they are rising in value. Like investing legend Warren Buffett, I like to buy both stocks and socks when they are on sale.
But if I was forced to buy an ASX share this very day, there would be no question which I would go for.
The VanEck Morningstar Wide Moat ETF (ASX: MOAT) isn't technically a share but rather an exchange-traded fund (ETF). But such is the quality of this fund, I would be happy to add to it, regardless of its 17.4% gain this year so far.
The Wide Moat ETF is a rather unique offering on the ASX. It aims to invest in a basket of US shares that all show characteristics of possessing a moat. A 'moat' is a term popularised by Waren Buffett himself. It refers to an intrinsic competitive advantage that a company can possess.
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This ASX share is all about the moat
This can come in a few forms, including a strong brand, cost advantage or switching cost. Just think of the power that Coca-Cola's brand gives the company, ditto with Apple. And ask yourself why most of us still use Microsoft Office, rather than Google Slides or Apple Pages.
These kinds of advantages can help a company grow over decades. Buffett himself loves a good moat. And by investing in this ETF, I'll bet you will too.
Some names you will find in the current portfolio of the Wide Moat ETF include Walt Disney, Adobe, Kellogg, Amazon.com and Pfizer. Buffett's own Berkshire Hathaway is also a current holding. This portfolio is jam-packed with some of the best shares on the planet, selling some of the world's favourite goods and services.
That's why I can't get enough of this ETF. But here's where the rubber really hits the road. Since the Wide Moat ETF's inception in June 2015, it has delivered an average performance of 15.4% per annum. That rises to an average of 16.6% per annum over the past five years.
So we have a fund that actively seeks out the best companies in the world and that has a proven track record of stellar performance. That's why if I had to buy one ASX share today, this would be it. What's not to like?
