The VanEck Morningstar Wide Moat ETF, which tracks companies with sustainable competitive advantages, faced downward pressure due to several factors impacting its underlying assets. Notably, ASML Holding, a key player in the semiconductor industry, experienced a sell-off following trade restrictions with China and a reduction in its 2025 guidance. This has raised concerns about the future growth prospects of companies heavily reliant on advanced chip production technologies. Additionally, Otis Worldwide, another component of the ETF, is grappling with challenges in the Chinese market, which could affect its high-margin service business. These headwinds, coupled with a broader market sentiment that U.S. stocks are overvalued, have contributed to the ETF's decline.
The VanEck Morningstar Wide Moat ETF closed at $98.16, marking a 0.39% decrease for the day, with an additional 0.31% decline after market hours, bringing the current price to $97.86.