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 paper contains information about Morningstar Manager Research Coverage in Australia & New Zealand

Data Content Guide

Morningstar Indexes' insights into market leadership, the impact of macroeconomic factors on assets, and diversification.

Inside the world of precious-metals equities.

Empowering investor success.

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

Stricter rules may force up to 45% of ISR funds to divest EUR 7 billion worth of oil and gas companies.

Stronger fixed-income returns boost starting safe withdrawal percentages to 4%, their highest level in three years.

Data Content Guide

Over the past several years the battery technology space has been evolving rapidly, driven by growth of consumer electronics, electric vehicles, and energy storage solutions for renewable power generation and grid stability.

Morningstar has conducted qualitative, analyst-driven research on 529 plans since 2004 and rated plans since July 2012. An essential complement to our database of investment information and our suite of quantitative research tools, such as the Morningsta

Article 8 fund outflows continue, while Article 9 funds lose appeal amid market and regulatory turbulence.

Inflows decrease further amid gloomy markets, but Europe continues to show resilience.

In this research, we home in on common advisor behaviors to identify which actions may unintentionally trouble clients and damage the advisor-client relationship.

If BlackRock, Vanguard, and State Street didn’t vote, support for ESG proposals would be higher.

Faith-based investing, a distinctive approach that integrates financial goals with religious and ethical principles, has emerged as a noteworthy avenue for investors seeking to align their portfolios with their deeply held convictions.

Morningstar Indexes' analysis questions the conventional wisdom about small-cap stocks and asks whether they're still worth the trouble.

In this fourth annual edition of Investing in Times of Climate Change, we provide an update on the rapidly evolving global landscape of climate funds. Mutual funds with a climate-related mandate represent a wide and growing range of strategies that aim t

As awareness around environmental and social issues has grown, more investors than ever have incorporated an environmental, social, and governance focus into their investment processes.

For funds available for sale in the United States.

For portfolios available for sale in the United States.

Treating the goal-setting process as a multistep endeavor may help advisors elicit not just the specific financial goals clients want to achieve but also their broader goals. By tapping into both kinds of goals, advisors can help their clients make plans

Prevailing trends accelerate in 2023: higher volumes of proposals, lower average support.

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

Morningstar uses a series of six individual models working in unison to algorithmically assess a vehicle and assign the People, Process, and Parent Pillar ratings to it for those assigned Directly, by Algorithm.

Data Content Guide

In the face of a recession, investors are looking for advice.

Morningstar Sustainalytics Low Carbon Transition Rating assesses the degree to which a company’s projected Greenhouse Gas Emissions (GHG) differ from its fair-share budget for GHG emissions.

Over the past decade, cryptocurrencies have witnessed an unprecedented surge, establishing themselves as a prominent investment avenue.

The Morningstar Risk Model is a holdings-based model that helps identify and assess the risk in one’s investments.

A report on investor returns in the United States.

Global funds and exchange-traded funds had $54 billion of inflows in the first half of 2023, but only one category group, fixed income, had inflows. Its $236 billion flow more than made up for all other groups.