The VanEck Morningstar Wide Moat ETF (MOAT) is down 0.19% in pre-market hours on Tuesday, November 26, falling to $98.54 as of 7:45 AM ET. The underlying assets are facing pressure due to geopolitical tensions and economic uncertainties. Recent tariff threats from President-elect Donald Trump have unsettled global markets, particularly affecting companies with significant international exposure. Trump's proposed tariffs include a 25% levy on products from Mexico and Canada and an additional 10% on Chinese goods, which could disrupt supply chains and increase costs for many firms. This has led to a cautious market sentiment, with investors wary of potential impacts on corporate earnings and global trade dynamics.
In the technology sector, which is a significant component of the wide moat strategy, companies are grappling with mixed signals. While there are long-term growth drivers like cloud computing and artificial intelligence, the sector has recently experienced volatility. Semiconductor firms, in particular, are underperforming, dragging down the overall tech sector performance. This is compounded by geopolitical risks, such as those affecting ASML Holding N.V., which faces an uncertain future due to potential policy shifts under the new U.S. administration.