A Wide-Moat Focus Outperforms the Market Over Time

The Morningstar® Wide Moat Focus IndexSM, a portfolio of our cheapest wide-moat stocks relative to fair value, has generated excess returns versus the overall market. Over the trailing one-, three-, five-, and 10-year periods, and since company moat ratings were first assigned in late 2002, the Morningstar Wide Moat Focus Index has outperformed its benchmark.

In this paper, we examine:
  • The performance of the Wide Moat Focus Index since 2002
  • What our attribution analysis of the index shows
  • The risk and return metrics of the index