MOAT ETF: Here’s the outlook of the VanEck Wide Moat stock

Warren Buffett, the best long-term investor in our generation, likes to invest in companies that have an almost impenetrable moat. He believes that he can buy and hold these companies for years, as he has done with Coca-Cola. The VanEck Wide Moat (MOAT) ETF is a fund that seeks to achieve this goal by allocating in high-quality companies.

What is the VanEck Wide Moat ETF?

The MOAT ETF is an ETF that tracks the Morningstar US Sustainable Moat Focus Index fund. It has over $9 billion in assets and an expense ratio of 0.45%. This is an expensive fund, considering the most popular ETFs like SPY and SCHD have an expense ratio of less than 0.20%. Its expense ratio means that a $100k invested in the fund will cost about $450 per year or $4,500 in ten years. 

MOAT is made up of some of the biggest companies in the US. Applied Materials, the biggest firm in the fund, is a major company that has a moat in building products used to manufacture semiconductors. Microsoft, the second-biggest company, has a moat in the technology industry. 

Further, Rockwell Automation is a company that provides automation products for industrial companies. It is widely seen as a big bet in the artificial intelligence industry. Clorox has a strong market share in the consumer staples industry. Its Clorox brand has the biggest market share in the bleach industry.

Other large companies in the MOAT ETF holds companies like Polaris, Intercontinental Exchange, Mondelez, and Constellation Brands among others. Most of these companies in the ETF are technology companies, which have a share of about 34%. Financials, consumer staples, and industrial companies are the other big players in the fund.

Therefore, as the Fed considers pausing its interest rate hikes, there is a likelihood that this fund will do well in the near term. 

MOAT ETF stock price analysis

MOAT chart by TradingView

The daily chart shows that the MOAT ETF share price has been in a strong bullish trend in the past few months. It has moved above the important resistance point at $76.57, the highest point on February 2nd. The stock has jumped above the 50-day and 100-day exponential moving averages (EMA).

By rising above the key resistance point at $76.57, the stock has invalidated the double-top pattern. Therefore, there is a likelihood that the shares will continue soaring as buyers target the next psychological level at $100. A move below the support at $76.57 will invalidate bullish view.