The VanEck Morningstar Wide Moat ETF experienced a decline as several factors weighed on its underlying assets. Notably, major technology stocks, which are significant components of the ETF, faced downward pressure. Microsoft and Amazon, both part of the "Magnificent Seven" group of tech giants, saw their shares drop by 1.2% and 1%, respectively, as reported on November 27. This decline in tech stocks was part of a broader market trend, with the S&P 500 halting its seven-day advance and the "Magnificent Seven" megacaps sliding nearly 1%. The market's shift towards safer assets like Treasuries ahead of the Thanksgiving holiday and month-end contributed to the overall weakness in equities.
Additionally, the technology sector was further impacted by disappointing earnings reports from Dell Technologies and HP Inc., which fell 12% and 11%, respectively. These results added to investor concerns about the recovery in the personal computer market. The broader market sentiment was also influenced by a decline in Treasury yields and the Bloomberg Dollar Spot Index, which fell 0.7% as traders adjusted their positions ahead of the holiday.
The VanEck Morningstar Wide Moat ETF closed at $98.16, down 0.39% for the day, with an additional decline of 0.21% after market hours, bringing the current price to $97.95.