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Funds

9 Items

Morningstar’s 2022 U.S. Fund Fee Study

Mutual fund and exchange-traded fund (ETF) fees are continuing to decline. In fact, investors have saved billions over the past two decades—and paid lower fund expenses in 2022 than ever before.

US Fund Flows: Most Categories Have Seen Better Days

Long-term funds grew organically by just 0.2% through the first six months of 2023.

Global Fund Flows: After Record 2021 Inflows, 2022 Outflows Trickle Out

How did asset classes fare in 2022?

What’s Behind the Rise of Direct-Sold 529 Plans?

Direct-sold 529 plans are evolving. College savers can benefit from working with a financial advisor who can help them consider all their options.

A Look at the Road to Asset Parity Between Passive and Active U.S. Funds

The forces that have driven the active vs. passive fund flows trend show no sign of abating. Morningstar analysts map out these five investing trends.

A Closer Look at Value Fund vs. Growth Fund Performance

Here's a look back at value funds vs. growth funds and their performance in recent decades. Hear from fund managers about their value strategies.

A solid start for the Morningstar Quantitative Rating

A solid start for the Morningstar Quantitative Rating.

Large Growth Funds Come Back to Life After a Tough 2022

A look at which of 2022's large growth funds may be bouncing back.

All Funds Blog Posts

Portfolio Construction

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Uncover Security Exposure Faster With Portfolio Risk Analytics

Quickly peel apart the holdings in managed investments, models, ETFs, custom benchmarks, and client portfolios to see what’s below the surface.

Stress-Test Portfolios Under Realistic Market Scenarios

Stress-testing your portfolios can prepare you for unforeseen circumstances and put your clients at ease. Here’s how to analyze and build resilient portfolios with Morningstar Direct Lens.

5 Reasons to Use a Holdings-Based Style Analysis for Risk Assessment

Holdings-based style analysis can provide insights advisors need to guide clients toward constructing a less risky portfolio. Learn five benefits of this approach.

A Closer Look at Model Portfolios

Model portfolios are one of the cheapest ways for investors to buy a professionally managed, diversified portfolio and represent a real bargain vs. mutual funds.

All Portfolio Construction Posts

ESG

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How to Build ESG Into the Advisor Workflow

Sustainable investing isn’t all or nothing. Explore how advisors can make ESG factors part of their routine.

How Does Investing in ESG Companies Affect Returns?

Morningstar research uses a new model to compare the returns of companies with strong and weak ESG practices.

Drawing an ESG Materiality Map and Measuring the ESG Practices Around the World

Financial advisors and asset managers can use our latest data to map country indexes' portfolio sustainability scores and ESG material risk. Here's how.

A Look at the Thematic Funds That Offer a Sustainable Focus

Morningstar’s thematic funds' taxonomy provides a new lens to value funds with a sustainable focus. Download our report to understand the ESG nuances.

Morningstar’s ESG Indexes Have Outperformed and Protected on the Downside

Sector bias explains only some of the record.

All ESG Posts

Client Engagement

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How to Make Goals-Based Investing More Personal

Many investors struggle to articulate their intrinsic motivation, but financial advisors can unlock it with a simple exercise.

Why Do Investors Hire Their Advisors?

Every investor has different goals—and needs. So what motivates people to work with a financial advisor? From handling stock options to preparing for retirement, investors tend to seek help for a wide range of issues.

How Can Your Clients Use New Tools to Reach Investment Goals?

The investing landscape is rapidly evolving. And with that change comes the onslaught of investment tools.

Building a Money Mindset: Questions Advisors Should Ask Clients

First impressions matter—especially when talking to prospective clients. As an advisor, you know the initial questions you ask can make or break a relationship.

Why Do Investors Fire Their Advisors?

Losing investors can happen to even the best of advisors. Still, being fired may result in costly setbacks such as ungiven referrals, negative reviews, and missed opportunities.

Behavioral Nudges for Goals-Based Financial Planning

Identify meaningful goals and create a goals-based investment plan for your clients. We created a financial planning list to help advisors start the conversation.

All Client Engagement Posts

Corporate Sustainability

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ESG Strategy: A Guide for Corporate Sustainability

Deepen your understanding of corporate sustainability with this guide from Morningstar. For general readers and financial advisors alike. Download now!

Morningstar’s Latest Corporate Sustainability Report is Here

This year, our Corporate Sustainability Report examines how Morningstar is grappling with some of the biggest challenges facing industry leaders.

Delivering Climate Data Resources

A trusted, central source of verifiable data to track and understand carbon emissions.

The Future of Corporate Sustainability

A focus on the future at Morningstar's first public corporate sustainability discussion.

UN Global Compact: Q&A With Kunal Kapoor

Morningstar signed the U.N. Global Compact in 2021, committing the firm to align our business strategy and operations with the U.N.’s 10 universal principles.

Morningstar’s 2021 Corporate Sustainability Report: Increasing Transparency

The report examines the firm’s commitment to building ESG data, research, and tools for all investors and prioritizing principles of sustainability in our workplace and the communities in which we operate.

Our Decarbonization Strategy and Net Zero Transition Plan

Morningstar’s Climate Transition Plan summarizes our initial approach to executing our organization’s net-zero commitment.

Morningstar’s Sustainable Investing Summit: Three Corporate Sustainability Trends

Over 300 industry leaders participated in discussions about climate transition, net-zero goals, and driving impact in sustainable finance.

Indexes

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Don't Neglect Investments Outside the US

The strategic case for global diversification is less about noncorrelated assets and more about broadening the investment opportunity set to the fullest.

The Future of Indexing; Who Will Survive? Who Will Thrive?

In recent industry discussions, I've been asked who will win in this industry going forward. The choice appears to be between the small upstarts or the established players. My answer? Neither.

How Did Meta Become a Value Stock and Why Isn't It Considered "Sustainable"?

For long-term shareholders, Meta Platforms, previously Facebook, has been a stomach-churning investment.

Gain Diversified Exposure to Transformational Technologies with the Morningstar Exponential Technologies Index

Companies with significant exposure to innovational technologies can disrupt industries, create new markets, and enjoy strong growth, which can make them attractive investments.

All Indexes Posts

Sustainable Investing

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What Are Sustainable Funds and How Have They Performed?

Advisors who present clients with how they can include sustainable funds in a portfolio and explain exactly what they are can earn clients' trust.

Help Your Clients Tackle Food Insecurity With Personalized Portfolios

Here’s how to guide client sustainability conversations on community issues and use that insight in personalized portfolios.

Which Sustainable Funds Are Fossil-Fuel-Free?

Despite the overall growth of sustainable funds, avoiding fossil-free funds requires a closer look. Learn more in this post by Morningstar researcher Jon Hale.

Sustainable Investing in Government Bonds

ESG Bond Indexes Reveal How Country Risk Changed in 2020

How Can Investors Measure Diversity, Equity, and Inclusion?

A Morningstar Index Highlights Corporate Leaders in DEI

All Sustainable Investing Posts

Retirement

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Retirement Income Strategies to Maximize Savings

Learn what Morningstar has to say about the state of retirement income. Our latest report tests and compares retirement withdrawal strategies

Chart A Retirement Course With A Glide Path Analysis

Use a glide path analysis to determine if the retirement target date is a fit. View the sample bubble chart to tell if your plan's investment is right for participants.

Naive Diversification Effect: The Hidden Cost to Retirement Portfolios

How plan sponsors can help investors avoid the cost of naive diversification.

Could Multiple-Employer Plans Be a Game Changer for Retirement Security?

Considering key questions around the new, sweeping legislation

How Core Investment Menu Size Impacts Participant Investment Decisions in Defined-Contribution Plans

Morningstar’s research counters long-standing belief that smaller core investment menus result in better participant investment outcomes

Target-Date Funds May Not Play Well With Others in Defined-Contribution Plans

Morningstar research explores the profiles of investors who mix target-date funds with other investment options

Managed Retirement Accounts: The Value of Advisors and Consultants

Debunking the myth of a diminished role

All Retirement Posts

Markets

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Stock Market Outlook: 3 Charts that Explain 2023

Investors need help understanding what recent headlines mean for their portfolios and financial goals.

Inflation and Recession Forecast for U.S. Investors

Will a recession happen in the next year? Read our predictions on how inflation and the economy could affect investment portfolios.

Finding Stability in a Volatile World

Advisors today have many tools for, and opinions about, assessing client risk tolerance and mapping this to a portfolio.

A Behavioral Guide to Market Volatility

How behavioral science can help advisors guide clients through investing in volatile markets.

2018 Market Performance in 10 Charts

A look at how the global financial markets performed last year

Regulations

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Burden Vs. Competitive Advantage: Why You Should Embrace Today's Regulatory Environment

Addressing the SEC Marketing Rule and the demand for greater transparency.

How a Changing Regulatory Landscape Presents an Opportunity for Advisors When Conducting Rollovers

Rollovers are the lifeblood of growing assets for any financial advisor—and regulators have taken notice.

What’s New With the EU Sustainable Finance Action Plan

A look at the latest developments in the context of the Plan’s overall goals.

All Regulations Posts

Risk

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How to Measure and Manage Investment Risk

Risk assessments only work if they help advisors understand their clients’ true appetite for risk and then match them to appropriate investments.

Step-by-Step Guide: How to Calculate Risk Tolerance in an Economic Downturn

Don’t let your clients’ emotions interfere with their investing success.

Do Investment Risk Profiles Work? How to Calculate Profiles for Top-Notch Financial Plans

The science behind investment risk profiles can feel fuzzy. No wonder why many financial advisors see risk profiles as another compliance requirement to cross off.

How Accurate Risk Profiles Set Clients Up for Long-Term Success

Recession rumblings. Inflation fears. Interest rate hikes. In the palms of their hands, investors have access to market information like never before.

How to Understand a Portfolio’s Risk Exposure

Learn how to leverage the Morningstar Global Risk Model to assess risk exposure for your client's portfolios in this post by equity ratings director Tom Whitelaw. Read more.

Financial Scenario Analysis With Examples

How scenario analysis tools can help investors manage financial risk and evaluate returns.

Our Take on Why Securities-Lending Risk is Overblown

3 key considerations for investors evaluating securities-lending programs

All Risk Posts

Personal Investor

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Introducing Morningstar Investor

The successor to Morningstar Premium helps investors like you navigate the noise.

Why You Should Be a Risk-Taker

Risk-taking investors know they can take control and make smart risks to reach their goals.

What to Know About the Trend Toward Institutional Investing

Understand the impact and implications of an investing world gone institutional

Top 10 HSA Providers: Our 2018 Assessment

A few are healthy, but most need attention

All Personal Investor Posts

Fund Managers

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Female Fund Manager Performance: What Does Gender Have to Do With It?

We looked at if gender affects investment performance. Here's what we found.

What Are the Effects of Fund Manager Changes?

Investors should think twice about acting on a fund management change

Advisors

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Financial Advisor Technology: How Does Your Firm Compare?

What our advisor survey tells us about technology overload