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Elements Morningstar Wide Moat Focus Index

 
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HenryTo
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PostPosted: Wed Jun 25, 2008 12:22 pm    Post subject: Elements Morningstar Wide Moat Focus Index Reply with quote
Down YTD but still beating the S&P 500 in a substantial way.

http://quicktake.morningstar.com/fundnet/TotalReturns.aspx?Country=USA&Symbol=WMW

Here is the construction metholodgy for the ETN:

http://morningstaradvisor.com/uploaded/pdf/widemoat.pdf

Quote:
At Morningstar, the concept of economic moats is a cornerstone of our stock-investment philosophy. We believe that successful stock investing involves more than just identifying solid businesses, or finding businesses that are growing rapidly, or buying cheap stocks. We believe that successful investing also involves evaluating whether a business will stand the test of time.

The term economic moat comes from legendary investor Warren Buffett, whose annual Berkshire Hathaway shareholder letters contain many references to businesses with "economic castles protected by unbreachable 'moats.'" Basic economic theory says that in a perfectly
competitive market, rivals will eventually eat up any excess profits earned by a successfulbusiness. Only those firms with a competitive advantage--a moat--can withstand these competitive pressures for a long period.

The objective of the Morningstar Wide Moat Focus Index is to offer investors the opportunity to easily invest in companies that have sustainable competitive advantages according to Morningstar analysts. These companies are the crème of the U.S. equity universe. The Wide Moat Focus index focuses on a select group of wide-moat firms: those that Morningstar analysts feel are the most attractively priced at any given time.
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