The Link Between Morningstar Ratings and Fund Flows
What Happens After an Upgrade or Downgrade
How do investors respond when fund ratings change? This research analyzes the relationship between Morningstar Medalist Ratings and subsequent fund flows across US open-end funds and ETFs from 2011 through 2025.
Because the Morningstar Medalist Rating is a qualitative, forward-looking measure based on a fund’s People, Process, and Parent characteristics, a rating change signals a change in analyst conviction. The findings show a clear behavioral response to rating changes—particularly among active strategies—offering fresh insight into how forward-looking analyst conviction influences capital allocation. For institutional investors, the results provide a data-driven lens into how ratings can signal future asset growth or contraction.
Download this report now to explore the relationship between fund flows and the Morningstar Medalist Rating
