3 New(ish) Gold-Rated Funds
These funds all earned our top fund analyst rating in the past few months.
Susan Dziubinski: Hi. I'm Susan Dziubinski from Morningstar.com. It isn't easy for a fund to earn our top Morningstar fund analyst rating of Gold. Funds that do so are best in breed, models in their respective categories. In fact, fewer than 200 funds across dozens of fund categories earn Gold ratings. Here are three funds that recently joined the Gold-rated fund club.
Adam McCullough: Fidelity Extended Market Index is a great option for investors looking to round out a large-cap equity position. This fund invests in nearly all investable U.S. stocks outside of the S&P 500. That means that it does own small- and micro-cap stocks even though it lands in Morningstar's mid-cap blend equity category. Because it does own smaller cap and micro-cap stocks this fund also carries a little bit more risk than the average fund in the mid-blend category. It's broad diversification should help in mitigate risks of single stock or sector exposures. Also, this fund is the cheapest of its kind. It only charges 5 basis points per year which is much lower than the mid-cap blend fee average. All said, this fund earns a Morningstar Analyst Rating of Gold because it's cheap, broadly diversified, and has a soundly constructed index.
Eric Jacobson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.