VanEck Morningstar Wide Moat ETF: A Warren Buffett-Approved Long-Term Investment

The VanEck Morningstar Wide Moat ETF (ASX: MOAT) invests in US-listed stocks with durable competitive advantages and attractive prices. The ETF holds a diverse mix of companies in healthcare, tech, consumer goods, defense, and industrials. With a 10-year average annual total return of 14.8%, it has outperformed the Australian share market and appears well-positioned for continued success in the next decade. The ETF is a great option for growth-focused investors looking to build wealth over the long term.

The VanEck Morningstar Wide Moat ETF (ASX: MOAT) has emerged as a compelling investment option for growth-focused investors seeking durable returns. This ETF invests in US-listed stocks with sustainable competitive advantages and attractive prices, positioning itself as a strong contender in the long-term investment landscape.

The fund normally allocates at least 80% of its total assets to securities that comprise its benchmark index, which includes companies identified by Morningstar as having "wide moat" advantages [1]. These companies are selected based on a proprietary methodology that considers both quantitative and qualitative factors, ensuring a diversified mix across various sectors such as healthcare, technology, consumer goods, defense, and industrials.

With a 10-year average annual total return of 14.8%, the VanEck Morningstar Wide Moat ETF has outperformed the Australian share market and demonstrated resilience in the face of market fluctuations. This performance underscores the fund's ability to deliver consistent returns and positions it favorably for continued success in the coming decade.

The telecom sector has also shown robust performance over the past year, with the S&P Telecom Select Industry Index gaining more than 40% and outperforming the broader S&P 500 [2]. Both AT&T and Verizon Communications Inc. reported strong second-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates. This positive outlook for the sector, driven by AI forecasts and interest rate cut hopes, suggests that the ETF's diversified portfolio may benefit from the sector's growth.

Investors interested in gaining exposure to the U.S. telecom industry can consider various ETFs, including the Vanguard Communication Services ETF (VOX), Fidelity MSCI Communication Services Index ETF (FCOM), iShares U.S. Telecommunications ETF (IYZ), and SPDR S&P Telecom ETF (XTL) [2]. These ETFs provide a way to invest in the sector without the need for individual stock selection, offering a diversified approach to telecom exposure.

For investors with $5,000 ready to invest in August, three exciting ASX ETFs to consider are the Betashares Asia Technology Tigers ETF, Betashares Global Cybersecurity ETF, and Betashares Global Robotics and Artificial Intelligence ETF [3]. These ETFs offer exposure to rapidly growing sectors, such as technology, cybersecurity, and robotics, providing a way to invest in powerful global trends.

In conclusion, the VanEck Morningstar Wide Moat ETF offers a durable investment option for long-term growth, with a proven track record of outperforming the Australian share market. Combined with the positive outlook for the telecom sector and the availability of ETFs for sector exposure, this ETF presents a compelling choice for investors seeking to build wealth over the long term.

References:
[1] https://finance.yahoo.com/quote/MOAT/holdings/
[2] https://www.theglobeandmail.com/investing/markets/stocks/T/pressreleases/33995262/telecomm-etfs-in-focus-after-vz-ts-q2-earnings-beat/
[3] https://www.fool.com.au/2025/08/12/3-exciting-asx-etfs-to-buy-with-5000-in-august/