DVDY - VanEck Vectors Morningstar Australian Moat Income ETF

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VanEck Vectors Morningstar Australian Moat Income ETF DVDY

Fund description: DVDY gives investors exposure to a diversified portfolio of dividend paying quality ASX-listed companies selected by Morningstar. DVDY aims to provide investment returns before fees and other costs which track the performance of the Index.

Index description: The Morningstar® Australia Dividend Yield Focus Index is intended to capture the performance of the 25 highest dividend paying ASX-listed securities (excluding A-REITs) that meet Morningstar's required criteria which combines its Economic Moat and Distance to Default measures.

Management style: Replication

 as at 27-Oct-20

  • Exchange

    ASX
  • ASX code

    DVDY
  • Bloomberg index code

    MSDIADFA
  • Index provider

    Morningstar
  • NAV1

    $19.76
  • Units outstanding1

    900,000
  • Net assets1

    $17.8M
  • Number of holdings1

    25
  • Inception date2

    07-Sep-20
  • ASX commencement

    10-Sep-20

1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

as at 27-Oct-20

Key points

Reference index:
Morningstar® Australia Dividend Yield Focus Index

Index description:
The Morningstar® Australia Dividend Yield Focus Index tracks the performance of a portfolio of 25 high quality dividend paying Australian securities, excluding A-REITs (Australian Real Estate Investment Trusts). The Index is derived from the Morningstar® Australia Index, a broad market index representing 97% of Australian equity market capitalisation.

After screening companies for quality, based on a combination of Morningstar's Economic Moat rating, Morningstar Quantitative Economic Moat rating and Morningstar Distance to Default measure, Morningstar selects only the top 25 securities by trailing 12-month dividend yield for inclusion in the Index. The securities in the Index are then weighted based on their 12-month dollar dividends paid by the security, subject to a cap on individual securities to provide diversification.

An Economic Moat is a structural feature that allows a firm to sustain excess profits over a long period of time. Companies with a narrow moat are those Morningstar believe are more likely than not to achieve excess returns for at least the next 10 years. Wide moat companies are those in which Morningstar has very high confidence that excess returns will remain for at least 10 years, and more likely than not for 20 years.

If a company does not have an Economic Moat rating, then a Morningstar Quantitative Economic Moat Rating will be used in its place.

Distance to Default is a measure of a company's financial health based on Morningstar's assessment of the value of the firms' assets being sufficient to cover the firm's liabilities.

Key Index criteria

  • Companies that are assigned a Morningstar Economic Moat Rating of narrow or wide must have a Morningstar Distance to Default score in the top 50% within their respective Morningstar sector cohorts.
  • Current constituents that are assigned a moat rating of narrow or wide must have a Morningstar Distance to Default score in the top 60% within their respective Morningstar sector cohorts.
  • Companies that do not have either a Morningstar Economic Moat Rating or a Morningstar Quantitative Economic Moat rating assigned to them must have a Morningstar Distance to Default score in the top 30% within their respective Morningstar sector cohorts.
  • Current constituents that do not have either a Morningstar Economic Moat Rating or a Morningstar Quantitative Economic Moat rating assigned to them must have a Morningstar Distance to Default score in the top 36% within their respective Morningstar sector cohorts.

Index provider:
Morningstar Australasia Pty Ltd. Morningstar is not a related body corporate of VanEck.

The Morningstar® Australia Dividend Yield Focus Index was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell or promote DVDY and bears no liability with respect to the Fund or any security. Morningstar® and Morningstar® Australia Dividend Yield Focus Index are trademarks of Morningstar, Inc. and have been licensed for use by VanEck.

Index profile  

  • Bloomberg index code

    MSDIADFA
  • Launch date

    19-Jun-15
  • Base date

    19-Jun-15
  • Rebalance frequency

    Semi-annually

Top ten index constituents (%) Download all daily index constituents as at 30-Sep-20

Total constituents: 24
Constituent name
ASX code
Weightings (%)
WESFARMERS LTD
WES AU
11.03
TRANSURBAN GROUP
TCL AU
9.84
WOOLWORTHS LTD
WOW AU
8.91
ASX LTD
ASX AU
5.17
TABCORP HOLDINGS LTD
TAH AU
5.05
CARSALES.COM LTD
CAR AU
4.89
AURIZON HOLDINGS LTD
AZJ AU
4.89
SYDNEY AIRPORT
SYD AU
4.62
MAGELLAN FINANCIAL GROUP LTD
MFG AU
4.54
TELSTRA CORP LTD
TLS AU
4.51
Top ten total (%) 63.45
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 30-Sep-20

  • Country

    Weightings (%)
  • Australia

    100.0
  • Total

    100.0

Index sector weightings (%) as at 30-Sep-20

  • Sector

    Weightings (%)
  • Financials

    27.2
  • Industrials

    26.4
  • Consumer Discretionary

    24.4
  • Communication Services

    9.4
  • Consumer Staples

    8.9
  • Information Technology

    2.3
  • Real Estate

    1.4
  • Total

    100.0