10 stocks to buy with unique competitive advantages: VanEck

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One of the minds behind a $7.6 billion ETF details the 5-part approach the fund uses to select companies with competitive advantages — and recommends 10 stocks that fit the bill right now

. That term refers to competitive advantages that keep a company's would-be challengers at bay, helping it achieve and maintain high market share and profits in the long term.

Brandon Rakszawski, a project management director at VanEck who helped develop the wide moat fund, told Insider in an interview that in some ways, this ETF is like hundreds of others. It uses fundamental, bottom-up research from the team that compiles Morningstar'sWhat sets the ETF apart is how it defines quality, Rakszawski explained.

Rakszawski continued:"What this investment thesis and philosophy comes down to is identifying companies that are well-positioned to fend off competition for 20-plus years into the future, which is a very forward-looking time horizon." That's not to say valuation doesn't matter. The challenge facing Morningstar's researchers is choosing high-quality companies with a wide moat that are still attractively valued, which is especially difficult since investors are usually willing to pay up for quality.

 

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