So far, so good this year for the Morningstar Wide-Moat Focus Index: It’s up nearly 17% for the year to date as of this writing, which is about on par with the broader market’s gains.
The index, which focuses on the least expensive high-quality stocks in our coverage universe, consists of two subportfolios containing 40 stocks each, many of which are overlapping positions. The subportfolios are reconstituted semiannually in alternating quarters, on a "staggered" schedule. We re-evaluate the index's holdings and add and remove stocks based on a preset methodology. Because stocks are equally weighted within each subportfolio, the reconstitution process also involves right-sizing positions.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.