What's Behind the Morningstar Ratings?
There's more to the Morningstar Rating systems for funds, ETFs, and stocks than how many stars you see.
Question: What are the key differences between your star ratings for mutual funds, stocks, and exchange-traded funds?
Answer: Finding the right investments can be a daunting process. To help alleviate the burden of choice overload, Morningstar has created an array of tools to help investors assess an investment's key characteristics at a glance.
The Morningstar Style Box for mutual funds, for example, helps you quickly see how a fund actually invests the bulk of its assets. Meanwhile, the Morningstar Rating for funds, introduced in 1985, helps investors quickly gauge how a fund has balanced risk and reward. We've since introduced star ratings for individual stocks and exchange-traded funds.