What Does My Fund Really Own?
This Morningstar.com feature can help you visually evaluate how a fund invests.
Question: How do I interpret the fund's Ownership Zone within the Portfolio tab of a fund's quote page on Morningstar.com? Why does the shaded area extend above and beyond the borders of the box?
Answer: Like the Morningstar Style Box, the Morningstar Ownership Zone provides a visual snapshot of a fund's overall style orientation. The Morningstar Ownership Zone, however, addresses the fact that very few fund portfolios contain stocks that fit neatly into just one of the nine squares of the style box.
Ownership Zone Basics
To help investors discern how their funds invest, Morningstar supplies several tiers of data. For example, Dodge & Cox Stock (DODGX) currently lands in Morningstar's large-value category, based on its portfolio positioning during the past three years. The fund's current style box, meanwhile, is large blend, reflecting the fact that the highest percentage of the fund's holdings currently land in Morningstar's large-blend style box. And the fund's Holdings Style shows that the fund consists of a 34% weighting in large-value stocks, with 42% in blend stocks and 24% in growth stocks; another 12% of the portfolio consists of mid-cap growth, blend, and value stocks.
Esther Pak does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.