The MOTE ETF is issued by a fund manager dedicated to sustainable investing. The fund's primary objective is to invest at least 80% of its total assets in securities that replicate the composition of the US Sustainability Moat Focus Index. This index is designed to identify and include attractively valued companies with long-term competitive advantages, also known as wide moat companies. These companies are chosen based on a proprietary methodology developed by Morningstar, Inc., which evaluates both quantitative and qualitative factors to determine their competitive advantages. The index also screens out companies with high environmental, social, and governance (ESG) risks and excludes those involved in controversial weapons or civilian firearms production, thermal coal extraction or power generation, and tobacco product revenues exceeding 50%. Additionally, it considers ESG-related incidents and carbon risk, ensuring that the selected wide moat companies align with sustainability principles.
While the MOTE ETF (MOTE) primarily emphasizes momentum and technical factors in its investment strategy, it does provide some dividend potential to investors. The ETF's dividend distribution follows the performance of the underlying index, which consists of US large-cap stocks exhibiting strong momentum characteristics. Dividend eligibility in MOTE is determined by the dividend policies of the individual companies within the index, and distributions typically occur on a quarterly basis. Investors considering MOTE may benefit from potential capital appreciation driven by momentum investing, complemented by dividend returns from the constituent companies with robust dividend policies.
Tracking the US Sustainability Moat Focus Index is the primary objective of the Alternative Sources MOTE ETF. This ETF typically invests at least 80% of its total assets in securities that make up the benchmark index, which is designed to provide exposure to attractively valued companies with long-term competitive advantages while avoiding those with high environmental, social, and governance (ESG) risks. The index selects wide moat companies based on a proprietary methodology that considers factors such as historical and projected returns on invested capital, customer switching costs, internal cost advantages, intangible assets, network effects, and efficient scale. By closely tracking this index, the Alternative Sources MOTE ETF offers investors a way to access a diversified portfolio of US companies with strong competitive positions and favorable ESG profiles.
The correlation aspect of the US Sustainability Moat Focus ETF (MOTE) is essential in understanding its behavior in relation to the benchmark index. MOTE typically invests at least 80% of its total assets in securities that comprise its benchmark index, the US Sustainability Moat Focus Index. This index focuses on attractively valued companies with long-term competitive advantages while excluding those with high environmental, social, and governance (ESG) risks. Given its focus on wide moat companies, MOTE's correlation with other US ETFs is relatively stable, making it a valuable tool for investors looking to build sustainable portfolios. To explore MOTE's correlations in-depth and gain valuable insights, you can utilize the ETF Insider web app, which provides a user-friendly visualization tool to analyze overlaps and correlations with various US ETFs.
The MOTE ETF, or the US Sustainability Moat Focus ETF, primarily focuses on investing in companies that are part of the US Sustainability Moat Focus Index. This index is designed to target companies with long-term competitive advantages while excluding those with high environmental, social, and governance (ESG) risks. The ETF invests at least 80% of its total assets in these securities, which are chosen based on a proprietary methodology by Morningstar, considering factors such as historical and projected returns on invested capital, customer switching costs, intangible assets, network effects, and efficient scale. The ETF emphasizes ESG criteria, excluding companies involved in controversial weapons or civilian firearms, thermal coal extraction or power generation, those with a high controversy score, high carbon risk rating, or significant revenues from tobacco products. It aims to provide investors with exposure to companies that have strong competitive positions and attractive valuations. As of December 31, 2022, the index included 62 securities with a wide range of market capitalization, making it a diversified investment option. The ETF uses a passive investment approach, tracking the US Sustainability Moat Focus Index to achieve its objective.
The exposure characteristics of the Innovator S&P 500 Ultra Buffer ETF (MOTE) revolve around its unique strategy of using Flexible Exchange® Options (FLEX Options) that reference the SPDR® S&P 500® ETF Trust as its underlying ETF. MOTE aims to provide investors with a distinctive risk management approach by utilizing FLEX Options to create buffers against potential market losses. These FLEX Options are customized to offer investors downside protection within specified ranges while limiting upside returns through the use of caps. MOTE primarily focuses on the information technology sector due to its significant exposure to companies in this sector through the underlying ETF. For a deep understanding of MOTE's exposure and investment outcomes, investors can leverage ETF Insider's web app, which provides comprehensive data visualization and insights into various US ETFs, including overlap and correlations.
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