How Morningstar's Analyst Ratings for Index Funds Have Performed
Morningstar Analyst Ratings have done a decent job guiding investors toward better-performing index funds.
A version of this article previously appeared in the November 2019 issue of Morningstar ETFInvestor. Click here to download a copy.
The Morningstar Analyst Rating attempts to distill all relevant information about a fund's strengths and weaknesses into a signal of that investment's attractiveness relative to an appropriate benchmark. That's a tall order, and we don't always get it right. It's important to measure the performance of the Analyst Ratings, not only to gauge their efficacy, but also to identify ways we might improve them.
Alex Bryan has a position in the following securities mentioned above: USMV, MTUM. Find out about Morningstar’s editorial policies.