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ETF Specialist

A Closer Look at the New Ratings Process for Index Funds

The new ratings framework should improve ratings efficacy by bringing more structure and consistency to the ratings process and elevating the impact of fees.

A version of this article previously appeared in the November 2019 issue of Morningstar ETFInvestor. Click here to download a copy. 

Morningstar recently made some significant changes to the methodology behind the Morningstar Analyst Rating to build on the strengths of the old system and improve ratings efficacy. The new methodology is effective for all funds rated on or after Nov. 1, 2019. Here is a closer look at the changes and what they mean for the rated universe of index mutual funds and exchange-traded funds.