The Morningstar Wide Moat Focus Index systematically targets US companies that Morningstar's equity research team identifies as 1. possessing sustainable competitive advantages or moats and 2. importantly are also trading at attractive valuations. 2024 has been full of market distortions. Growth has outperformed value. We've seen an extreme lack of market breadth—in other words, very narrow leadership among mega cap companies, many from the tech sector.