Morningstar Runs the Numbers

Inspired by Harper's Index (with a tip of the hat to FiveThirtyEight's Significant Digits blog), Morningstar Runs the Numbers uses a numbers-based approach to highlight recent Morningstar research, along with some outside news stories.

1.26%, 6.54% That's the amount the MSCI All-Countries World Index ex-US returned in unhedged (in foreign currency) and hedged (to U.S. dollars) terms, respectively. When return differences are that stark, it can be tempting to think that hedging is the way forward, said director of equity ratings Tom Whitelaw. However, he notes there are many arguments for keeping your international-stock exposure unhedged.

$13.7 billion

Amazon's $13.7 billion acquisition of

"While Whole Foods represents a major shift in Amazon's retail strategies, we believe it could make Amazon even more integral in consumers' lives--bolstering its network effect in the process--while becoming a major headache for other retailers."

3,600 In less than two decades, more than half of all publicly traded companies have disappeared, said Jason Zweig in The Wall Street Journal article "Stock Picking Is Dying Because There Are No More Stocks to Pick" (subscription required). The upshot of the shrinking universe of stocks that active stock pickers have a smaller opportunity set, so more money chases fewer stocks (sometimes regardless of valuation).

"There were 7,355 U.S. stocks in November 1997, according to the Center for Research in Security Prices at the University of Chicago's Booth School of Business. Nowadays, there are fewer than 3,600."

6

In June, the Morningstar Wide Moat Focus Index swapped out six stock positions. Two asset managers,

10 It wasn't that long ago that virtually all of the sustainable investing options available to retail investors were actively managed, says senior manager research analyst David Kathman. But as money continues to flow into passive funds at the expense of active funds, more passive ESG offerings have become available to investors. This article lists the 10 largest passive funds by assets that have launched recently and have an ESG mandate.

7 Many people are hurtling toward a retirement shortfall, says director of personal finance Christine Benz. In this article, she offers seven suggestions for modest changes around the margins of a retirement plan that can help investors get back on track.

"Rather than looking to a single blockbuster solution to help make up for a savings gap, what if you were to consider a little bit of several prudent strategies--being willing to cut your standard of living a bit in retirement, working a bit longer, and investing a bit better, for example? The virtue of taking several small steps--rather than relying on a single Hail Mary action--is that if one of the variables doesn't play out as you thought it would, you may still be able to save your plan.

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