Skip to Content
Fund Spy

What? No Analyst Picks? Try an ETF Instead

When good choices are limited in these categories, consider these ETFs.

Mentioned: , , , , , , , , ,

Morningstar mutual fund analysts scour more than 2,000 mutual funds to come up with  picks in each of our nearly 60 categories. Sometimes, though, the pickings are slim. Some categories don't have a lot of options with everything we look for in an Analyst Pick--which can be boiled down to experienced managers consistently and successfully executing unique, long-term focused strategies in funds with reasonable expenses.

When choices are limited, you may consider turning to exchange-traded funds to get the exposure you need. Conventional index mutual funds are decent alternatives in many but not all categories. In recent years, however, ETFs have emerged in areas that have few if any traditional index alternatives. ETFs can offer low costs and tax-efficient, diversified, and transparent exposure to the segment of the market you want.

Not just any ETF in a given category will do, though. The rapid proliferation of ETFs in the last couple of years has made it necessary to be selective. Otherwise you might plunk your money into an ETF that doesn't provide the exposure, risk profile, cost savings, or tax efficiencies you want. To get you started, here is a list of some categories for which we currently have no Analyst Picks and some ETFs that might serve as decent stand-ins.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.