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.

We present the high-level trends in open-end and exchange-traded funds that affected investor decisions last year.

Hedge funds have proliferated and become an accepted allocation within institutional investor portfolios, but there is not a generally accepted definition of what constitutes a hedge fund.

Morningstar collects information on exchange-traded funds, and where a share class of an ETF is listed on multiple exchanges or more than once on the same exchange, this is known as a cross-listing of an ETF share class.

Strategy data, coupled with Morningstar's investment-level and rich portfolio holdings data, informs a comprehensive analytical view of where a strategy fits within investor portfolios and the global marketplace.

Improving emergency savings requires attention to mindset and actions.

This report evaluates 16 major retail-oriented US digital advice providers, focusing on key characteristics like fees, investment advice quality, and financial planning tools.

Inflows into Article 8 funds rise, but redemptions from Article 9 funds continue.

Inflows increase, driven by Europe, despite headwinds.

Investors' "risk on" posture was evident throughout the year in exchange-traded fund flows and was further amplified by the US presidential election in November.

Closed-end funds can borrow money to help finance the acquisition of their investment portfolio with the hope of enhancing shareholder returns.

Selecting a comparable fund on specified criteria.

Morningstar calculates Potential Capital Gains Exposure to give investors some idea of the potential tax consequences of their investment in a fund.

Index selection and weighting are the two main components of an index’s construction methodology, referring to how constituents are chosen and weighted within an index.

This guide covers several statistics that are derived from rates of return. They include what are commonly referred to as modern portfolio theory statistics as well as several others. They provide information about individual funds and are also used to c

Data Content Guide

Data content guide.

The Morningstar Portfolio Product Involvement metrics measure a portfolio’s exposure to involvement in a range of products, services, and business activities.

To maximize in-retirement income, consider a combination of flexible portfolio withdrawals and delayed Social Security filing.

Each security in a fund portfolio is assigned a detailed asset classification, known as the Detail Type Id.

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.

A view into gender and racial representation within investment teams.

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