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Fund Spy

A Look at Our Two New International Categories

The aim is to make evaluations easier, not to flash a buy signal.

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From time to time, Morningstar creates new categories for mutual funds and investment portfolios. We'd rather not. Our objective is to make it easier for investors to make appropriate investment decisions, and that task would be simpler if they had just a few types of funds to evaluate.

But over the years, fund companies have added more and more variety to their menus, and many of the new options don't look or behave like the funds populating the existing categories. So, we have been faced with a choice: either leave new types of funds in categories where they don't fit well, making rankings and other statistics for those groups less useful as a result, or create new categories that have more logic and consistency to their membership.

Gregg Wolper has a position in the following securities mentioned above: SGOVX. Find out about Morningstar’s editorial policies.