Methodology Documents

Morningstar has conducted research on active and passive investment strategies and their associated vehicles since 1986.

This paper outlines the key assumptions and details behind our quantitative equity rating methodology.

We believe that a company's intrinsic worth results from the future cash flows it can generate. The Morningstar Rating for stocks identifies stocks trading at a discount or premium to their intrinsic worth--or fair value estimate, in Morningstar terminology.

This document describes the rationale for, and the formulas and procedures used in, calculating the Morningstar Rating for funds (commonly called the “star rating”). This methodology applies to funds receiving a star rating from Morningstar.

This paper outlines the key assumptions and details behind our quantitative equity rating methodology.

Morningstar developed the Morningstar Equity Comparables system to give investors and financial professionals an objective benchmark for comparing companies. Morningstar Equity Comparables is genuinely different to other industry classification schemes. We start from the bottom up with comparable companies, as opposed to the top down with sector definitions. For every pair of companies, we determine how similar they are–anywhere from closely comparable to distantly related based on automated analysis of the companies' own business description. We automatically analyse the text of the business description and work out whether companies are talking about similar things as they describe their businesses. Businesses described in similar terms are comparable.

The methodology provides information about the currency exposure of the assets and liabilities in which a portfolio is invested.

The paper contains data and product information about Morningstar Australia Equity Research Coverage

To evaluate the effectiveness of our quantitative star ratings, we conducted portfolio and event studies over a seven-year backtesting period.

This paper outlines the key assumptions and details behind our quantitative equity rating methodology.

This outlook is designed to help you succeed by bringing together the research and insights from analysts and investors across Morningstar to help you make better investment decisions in the year ahead.

Morningstar has 26 main US CEF peer group categories consisting of 10 equity, 14 fixed-income, and two hybrid categories. The fixed-income categories are further subdivided into taxable and municipal groups.

Morningstar’s Strategy Series database identifies and links together investments across a shared management team and shared investment approach (that is, strategy) that are offered as a spectrum of solutions for investors.

The Morningstar PitchBook Developed Markets Listed Private Equity Index is a window into an altered opportunity set for investors.

A guide that outlines the methodology Morningstar uses in calculating the expected future yield as of the portfolio date, from the holdings of the portfolio. The measure is based on forward dividend yield (forward yield) for stocks and the yield to matur

Morningstar Category classifications sorts portfolios into peer groups based on their holdings. The categories help investors identify the top performing funds, assess potential risk, and build well-diversified portfolios. Here is how those categories ar

The Morningstar Category™ classification system for funds lets institutions, advisers and investors effectively compare like funds.

For funds available for sale in the United States.

This report provides an update on the landscape of Article 8 and Article 9 funds at the end of September 2024, examining aspects such as flows, assets, launches, reclassifications, and name changes.

Morningstar has conducted qualitative, analyst-driven research on 529 plans since 2004. Since July 2012, we have expressed this research through the Morningstar Medalist Rating for 529 College-Savings Plans. An essential complement to our database of inv

The flow recovery continues but remains timid.

Our findings suggest advisors can use generative AI as a tool to help them manage increasing responsibilities, but its efficacy depends on what the advisor uses the AI for, how they implement the usage of the AI, and why they are using the AI in the firs

The paper outlines Morningstar Category definitions.

The paper outlines institutional category definitions.

The paper outlines global category definitions.

The Morningstar Category™ classifications for 529 investment options were introduced in 2010 to help investors make meaningful comparisons between 529 options.

On display in the third quarter of 2024: the volatility inherent to equities, the benefits of asset-class diversification, and the dynamism of markets.

Originally the data domain within Morningstar known as Managed Investment Data, or MID, had no formal easy-to-consume mechanism for identifying groups of funds or investment types, also known as universes.

This report is compiled by Morningstar’s Equity Manager Research Team and is intended to serve as a due-diligence tool for investors and a barometer for asset-management firms.

The paper contains data and product information about Morningstar Australia Equity Research Coverage

The Morningstar Style Box helps investors determine the investment style of a fund. Different investment styles have different levels of risk that lead to differences in returns. The Morningstar Style Box provides an intuitive and visual representation o

Augmenting investment research with natural language processing.

Understanding what investors value and demonstrating that value are critical facets of a financial advisor's success.

Morningstar factor indexes highlight a pattern of out-of-favor areas bouncing back and momentum stumbling at inflection points.

Investors lost out on about 15% of the return their funds generated.