Our Picks

The Wide Moat Focus Index Adds 11 New Holdings

Karen Wallace

Every quarter, we reconstitute one subportfolio of the Morningstar Wide Moat Focus Index. When we do this, we re-evaluate the index's holdings and add and remove stocks based on a preset methodology. This helps keep the index true to its aim of providing exposure to competitively advantaged (wide-moat) stocks selling at the lowest current market price/fair value ratios.  

The index consists of two subportfolios with 40 stocks each. The subportfolios are reconstituted semiannually in alternating quarters, on a "staggered" schedule. Because stocks are equally weighted within each subportfolio, the reconstitution process also involves right-sizing positions. 

Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.