The Inaugural Morningstar Awards for ETFs
We're pleased to announce the ETF Provider Awards and the 74 Retail and Institutional category winners for 2012.
At Morningstar, one of our key mandates is to boil the often-confusing world of investing down to a consumable assortment of the best funds. When it comes to exchange-traded fund investing, we do this largely through our ETF Analysts’ Favorites (available to premium subscribers here) and the Morningstar Ratings. However, the ETF Analysts’ Favorites list is based on a largely qualitative assessment of the ETF that considers the ETF's role in the portfolio as well as such factors as expenses, index construction, tax efficiency, and diversification. The Morningstar Rating is based on a quantitative assessment of an ETF's historic monthly risk-adjusted returns against its category average.
The new Morningstar Awards for ETFs are based on a purely quantitative process that measures an ETF’s ability to track its index and the ease of tradeability. The awards place less emphasis on historic returns. After all, by investing in an index-focused ETF, investors are expecting to get returns somewhere in the ballpark of the index. Therefore, their focus is on other factors that can cause their ETF’s returns to deviate from the index’s. These factors include an ETF’s ability to match its index with minimal expenses, tracking error, and trading costs.
Michael Rawson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.