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.

A report on investor returns in the United States.

After successfully containing its domestic COVID-19 outbreak by the end of February, China was able to jump-start its economy in the second quarter and now leads the global economic recovery. With China's factories fully up and running, the question turn

As the field of sustainable investing matures, Morningstar continues to evolve its data, research and analytics to help investors assess the ESG risks and attributes in their portfolios.

Morningstar has conducted qualitative, analyst-driven research on 529 plans since 2004. Since July 2012, we have expressed this research through the Morningstar Analyst Rating for 529 College-Savings Plans accompanied by written analysis. An essential co

Fixed income investors can find their portfolios exposed to many different types of risk. These risks can affect whether their investment objectives are achieved. Portfolio breakdowns are a traditional means of analyzing risk. They have a critical shortc

After several months of dour data rolling in for the U.S. and global economies, the surprisingly positive U.S. jobs report on June 5 and retail sales report on June 16 have given investors a glimpse of the recovery from the coronavirus. For the United St

Are funds reacting similarly during the coronavirus pandemic?

The purpose of this project is to investigate the financial attitudes and behaviors of generation Z, defined here as persons born between 1995 and 2010.

These securities may look appealing on paper, but investors should be aware of their drawbacks.

The coronavirus pandemic is already delivering eye-popping economic data, with the U.S. unemployment rate reaching 15% in April, the worst number since the Great Depression. Despite the inflow of very bad data, equity markets have rallied over the past s

ESG funds show resilience during COVID-19 sell-off.

Explanation of the methodology behind the Morningstar distribution analysis fields.

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

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

This methodology is applied to HK MPF Funds.

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 are

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

While the circumstances of this market crash might be unique, are such drops normal for equity markets, or is this time different?

Hong Kong and Taiwan shone as well.

A better way to understand client’s risk preference in the context of investing well.

We forecast a 2.9% drop in U.S. 2020 GDP; our base case includes a second-quarter shutdown but effective treatment in the second half.