VanEck Morningstar Wide Moat ETF (ASX: MOAT) is a great exchange-traded fund (ETF) in my opinion. A recent decline looks like a buying opportunity.
Numerous businesses have fallen over 10% and loads more have dropped at least 5%. The MOAT ETF is no exception – it has declined 9% since 31 January 2025.
It’s rare for a quality investment like this one to fall so much in less than two months, so brave investors may view this as an opportunity to buy.
There are a couple of key reasons why I think this is a good time to buy.
Great businesses
The MOAT ETF only invests in US businesses that have excellent competitive advantages, which can come in many forms such as cost advantages, network effects, intellectual property and so on.
It only invests in these businesses with excellent economic moats when analysts believe that competitive advantage is likely to endure for at least 20 years and when the business is good value.
Therefore, every business in the portfolio is meant to be an excellent investment.
Some of the largest positions in the ASX ETF currently are: Gilead Sciences, Bristol-Myers Squibb, Altria Group, Kenvue, Corteva and Veeva Systems.
Other, more recognisable, holdings down the list of 51 positions include Walt Disney, Alphabet, Nike, Campbell’s and Adobe.
Global earnings
It’s understandable if some investors are worried about US shares or the US economy as a result of the tariffs and changes happening right now.
However, it’s essential to remember that the US/global share market has been through tougher times than this.
It’s also integral to remember that these companies generate earnings from numerous countries around the world. Even if the US economy were to go into recession, it doesn’t mean the individual companies can’t grow profit and increase their underlying value.
So, that’s why I view this as a good time to invest in the ASX ETF.
