The VanEck Morningstar Wide Moat ETF, which tracks companies with sustainable competitive advantages, is experiencing price pressure due to a combination of factors affecting its underlying assets. Recent economic data has shown signs of slowing growth in key sectors, which is impacting companies with wide economic moats. Additionally, concerns over potential interest rate hikes by the Federal Reserve are weighing on investor sentiment, as higher rates could increase borrowing costs and pressure profit margins for these companies. Market volatility has also been exacerbated by geopolitical tensions and uncertainties surrounding global trade policies, which are affecting investor confidence in companies with long-term competitive advantages.
The VanEck Morningstar Wide Moat ETF (MOAT) is down 0.6% in pre-market hours on Wednesday, November 27, falling to $97.95 as of 8:10 AM ET.