Morningstar Rating for Funds
The Morningstar Rating for Funds, or the Star Rating, debuted in 1985, a year after Morningstar was founded. The 1- to 5-star system, "looks at a fund's risk-adjusted return based on its performance over three, five and 10 years and on its volatility. The highest rating of five stars is bestowed on the 10 percent of funds that perform the best."[1] Funds need to be at least three years old to be rated.
Originally, funds were compared in four broad asset classes until the ratings methodology was revised in 2002 to rank and rate funds in 50 categories.[2] [3] In 2006, the Morningstar Rating was applied to exchange-traded funds.[4]
References[edit]
- ^ Luhby, Tami (July 11, 2004). "Walking a tightrope; Tough-talking Morningstar prepares to go public as it grows more dependent on the industry it covers". Newsday. p. E04.
- ^ Baldwin, Amy (2002-04-30). "Morningstar Retools Rating System". Midland Reporter-Telegram. Retrieved 2021-02-26.
- ^ Rekenthaler, John (March 22, 2021). "The Morningstar Rating for Funds: What to Know". Morningstar.com. Retrieved 2021-03-25.
- ^ Anand, Shefali (2006-03-03). "Morningstar Is Moving Into ETF Rankings". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-02-26.