It's been a rough time for many ASX and international shares lately. The buildup to the revelation of US President Donald Trump's new 'reciprocal tariffs', as well as the unveiling of said tariffs yesterday, has unleashed volatility and comprehensively rattled markets all over the world. The VanEck Morningstar Wide Moat ETF (ASX: MOAT) here on the ASX is no different.
MOAT units last peaked back in late January of this year when the exchange-traded fund (ETF) hit a new record high of $137.99. Today, just over a month later, those same units are currently going for only $116.58 each at the time of writing.
A good chunk of these losses have come in recent days as well, with MOAT down 1.1% yesterday and by a horrid 3.93% so far this Friday.
Overall, since that late January peak, the VanEck Wide Moat ETF has now lost just over 15.5% of its value.
This begs the question: Is this popular ASX ETF a buy today after such a dramatic drop?
Is the VanEck Wide Moat ETF a buy today?
The VanEck Wide Moat ETF is an active ETF that holds a relatively concentrated portfolio of US stocks (52 at the last count). These stocks are selected based on their perceived possession of a wide economic moat.
A 'moat' is the term first used by legendary investor Warren Buffett to describe an intrinsic competitive advantage that a company can possess. This could be a powerful brand, cost advantage, or producing a good or service that customers find difficult to avoid using.
You can see this in action with some of MOAT's current holdings. These include Walt Disney, Google-owner Alphabet, Constellation Brands, Altria, and Campbell's Soup.
These are characteristics Buffett himself professes to seek out in his investments.
Now, I have owned the VanEck Wide Moat ETF for years and regard it as one of my favourite investments. Its rather unique stock-picking methodology on the ASX has been lucrative for long-term investors in the past. As of 28 February, MOAT units had returned an average of 15.72% per annum since the ETF's inception in 2015.
Of course, past returns are never a guarantee of future success. However, I think what has been proven to work before can continue to work well going forward. As such, one could certainly argue that you could do a lot worse than buying MOAT units at this 15% discount today.
