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The Performance of Signal

The new Morningstar Signal data point can help you avoid pressure to buy popular investments.

The ultimate goal in investing is to reach financial goals. When making an investment decision, one prominent question that comes to mind each time is, “Will this investment perform better than its peers?” The challenge is that investors might be tempted to focus on and buy investments that “glitter” with promising attributes like exciting past returns or strong media attention. But chasing investments based on their popularity alone can be detrimental to our investment portfolio. Our new Signal data point helps address this exact problem.

Putting Investment Options in a Broader Context of Quality and Interest
The Morningstar Signal data point combines the overall level of interest in an investment--which we call Attention--with its underlying Appeal. The Attention of a fund is measured by its web traffic on Morningstar.com, while Appeal is an aggregated version of the Morningstar Analyst Rating and the Morningstar Quantitative Rating, forward-looking ratings that are used as indications of investment quality.

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