Morningstar Global Wide Moat Focus Index℠: A Guide for Investors
What is the Morningstar Global Wide Moat Focus Index℠?
The Morningstar Global Wide Moat Focus Index℠ is a stock market index that tracks the performance of companies with wide economic moats. An economic moat is a sustainable competitive advantage that allows a company to earn above-average profits over the long term.
The index is composed of 100 companies that are selected from the Morningstar Global Market Index. The companies are selected based on their Morningstar Economic Moat Rating, which is a measure of the strength of their competitive advantages.
How does the Morningstar Global Wide Moat Focus Index℠ perform?
The Morningstar Global Wide Moat Focus Index℠ has outperformed the Morningstar Global Market Index since its inception in 2007. The index has an annualized return of 9.2%, compared to 7.6% for the Morningstar Global Market Index.
The outperformance of the Morningstar Global Wide Moat Focus Index℠ is due to the fact that companies with wide economic moats are able to generate sustainable profits over the long term. These companies are less likely to be affected by competition and economic downturns.
Who should invest in the Morningstar Global Wide Moat Focus Index℠?
The Morningstar Global Wide Moat Focus Index℠ is a good investment for investors who are looking for long-term growth. The index is well-diversified and it provides exposure to some of the world's most successful companies.
Investors should note that the Morningstar Global Wide Moat Focus Index℠ is a passive index. This means that it does not attempt to beat the market. Instead, it simply tracks the performance of the companies that are included in the index.
Conclusion
The Morningstar Global Wide Moat Focus Index℠ is a good investment for investors who are looking for long-term growth. The index is well-diversified and it provides exposure to some of the world's most successful companies.
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