You may or may not be familiar with the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This exchange-traded fund (ETF) is a popular choice for ASX investors and has been around for many years now. If you have heard of MOAT, then it's possible that you may have encountered its cousin, the VanEck Morningstar International Wide Moat ETF, too.
Likely thanks to the success of the MOAT ETF, VanEck launched GOAT back in 2020. It was designed as an expansion of the original MOAT ETF's scope. The VanEck Wide Moat ETF was designed to hold a portfolio of US stocks that all displayed characteristics of possessing a wide economic moat. This is the term originally coined by Warren Buffett to describe an inherent competitive advantage a company could possess.
Since MOAT was restricted to the US markets, GOAT was a supplementary fund that extended this mandate to other stock markets around the world.
Well, that was the modus operandi of the past six years. However, the VanEck International Wide Moat ETF has just gone through a rebranding exercise. So much so that it is arguably now a different ETF. Let's get into what's changed.
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No longer the GOAT of ASX ETFs?
First up, GOAT is no longer the VanEck International Wide Moat ETF. It is now known as the VanEck Dynamic International Equity ETF (ASX: GOAT).
Gone is the talk of moats. Instead, this new ETF in an old skin promises to give "investors access to a portfolio of international developed markets companies selected by a proprietary, rules-based AI-driven approach that combines fundamental, market-based and macroeconomic signals". According to the provider, the VanEck Dynamic Internaitonal Equity ETF is "Australia's first and only AI-driven international equity ETF". It reportedly provides "access to 150 international companies selected by AI, bringing machine intelligence to international investing on the ASX for the first time".
Despite its nominally international focus, GOAT's portfolio remains heavily tilted towards the United States, with 57.2% of its weighted portfolio currently allocated to US stocks. Other meaningful contributors include Japan, Canada, Israel, the UK, and Singapore. Amongst many others.
In terms of individual stocks, GOAT's current holdings include Micron Technologies, ASML Holdings, Caterpillar, Lockheed Martin, Shell, and General Motors.
Since this ETF has only been employing its new strategy for about a week now, we can't comment on its performance. However, it is worth noting that, according to VanEck, the Akros Enhanced World ex-Australia Index that GOAT tracks has delivered an average performance of 16.7% per annum over the past ten years (as of 30 June).
Let's see if GOAT can keep those numbers up going forward. The VanEck Dynamic International Equity ETF now charges a management fee of 0.49% per annum.
