MOAT: Great Concept With Subpar Execution

Conviction Queue564 FollowersFollow5ShareSavePlay(8min)CommentsSummaryVanEck Morningstar Wide Moat ETF (MOAT) has under performed compared to VOO over the last few years.MOAT's sector concentration and lack of exposure to Energy, Basic Materials, and Utilities create significant blind spots, amid current macro risks.Questionable wide-moat designations for holdings, like Adobe, ServiceNow, and Nike, raise concerns about MOAT's selection methodology and risk to AI disruption.MOAT's higher expense ratio (0.47%) and turnover (55%) further diminish its appeal compared to VOO's lower costs and broader diversification. Pixelbizz/iStock via Getty Images As artificial intelligence continues to disrupt the markets as well as technology, I find it’s getting harder to determine what businesses actually have a discernible moat. Companies that many once viewed as undisruptable or anti-fragile are nowThis article was written byConviction Queue564 FollowersFollowI am a CPA and financial consultant with over two decades of experience in financial reporting. This professional background informs my lifelong passion for investing, where I combine a natural appetite for curiosity with a disciplined, long-term approach. Through the Conviction Queue, I focus on identifying quality, founder-led businesses at attractive valuations. My primary goal is to provide deep analysis on companies with sustainable growth potential that are built to be held for years.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.