Skip to contentHome page Seeking Alpha - Power to InvestorsOct 27, 2026, 3:50 AM ETUNP, MOAT, SMOT, MVALVanEck5.47K FollowersEfficient scale occurs when a company serves a market so limited in size that new competitors have little incentive to enter.Efficient scale commonly applies to companies involved in telecommunications, utilities, railroads, pipelines, and airports.Though it can be powerful, efficient scale is one of the least common sources of moat among companies with a “wide moat” rating, or companies with sustainable competitive advantages expected to last 20 years or more, according to Morningstar.MTStock Studio/iStock via Getty ImagesLearn how efficient scale creates long-term investment advantages by limiting new competitors and why it matters for moat investors.The term “economic moat” describes a company’s ability to maintain its competitive advantages and defend its long-termThis article was written byVanEck5.47K FollowersVanEck is a global asset management firm offering ETFs, mutual funds, private funds, model portfolios, institutional strategies, separately managed accounts, as well as UCITS funds. Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission. VanEck has a long history of looking beyond financial markets to spot trends that create meaningful investment opportunities. We were one of the first U.S. asset managers to give investors access to international markets, which set the tone for identifying asset classes and themes such as gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 that later helped shape the investment industry. The firm oversees $161.7 billion in assets as of September 30, 2025. Disclosures: http://ow.ly/SZ9450N5qTJ.CommentsTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.