The Morningstar Wide Moat Focus Index tracks companies that earn Morningstar Economic Moat Ratings of wide and whose stocks are trading at the lowest current market prices relative to our fair value estimates.
Wide-moat companies carry sound balance sheets and significant competitive advantages—two desirable qualities in the face of today’s economic uncertainty.
How has this collection of undervalued wide-moat stocks performed over the long term? Pretty well: The Morningstar Wide Moat Focus Index has outperformed the broad-based Morningstar US Market Index over the trailing three-, five,- and 10-year periods.
With those performance numbers on the index’s side, its constituents are a fertile hunting ground for long-term investors looking for high-quality stocks to buy that are trading at cheap prices.