The VanEck Morningstar Wide Moat ETF (MOAT) is experiencing price pressure due to several factors impacting its underlying assets. Notably, Otis Worldwide Corporation, a key holding, is facing challenges in the Chinese market, which could affect its high-margin service business. This exposure to foreign markets introduces currency risks and questions about long-term growth rates, despite Otis's strong economic moat and stable revenue streams. Additionally, Taiwan Semiconductor Manufacturing Company (TSMC), another significant component of MOAT, is navigating geopolitical risks and client concentration issues, although its strong market position and alliances with tech giants like Apple and Nvidia provide some resilience.
Technical analysis suggests that MOAT is encountering resistance near the $99.1 level, with a downside target of $96.04 if this resistance holds. The ETF's current price of $98.26, as of 2:51 PM ET on November 27, 2024, reflects a slight decline of 0.28% from the previous close.