Skip to Content
Investing Specialists

New Stocks in the Morningstar Wide Moat Focus Index

We've added to the roster of attractively priced, competitively advantaged companies.

Mentioned: , , , , , , , , ,

Those who are familiar with the Morningstar Wide Moat Focus Index know it as a 20-stock index that provides exposure to the most undervalued, highest-quality companies in our coverage universe. Those are the only two qualifications for inclusion: Companies must have an economic moat rating of wide (meaning we think they have advantages that will fend off competitors for at least 20 years), and their shares must be trading below their fair value estimates, which are determined through independent research conducted by the Morningstar Equity Research team.

The index, which launched in October 2007, was rebalanced quarterly so that each holding started the quarter with an equal 5% weighting. Over the past 10-year period, this index has returned 11.4% per year, including dividends, versus a 7.4% annual total return for the S&P 500. Over shorter periods, results are also impressive: The index has outperformed the S&P 500 by more than 160 basis points over five years, and 50 basis points over three years.

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

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.