How Does Morningstar Determine Which ETFs are the Best?
The best ETFs receive Morningstar Medalist Ratings of Gold, the highest rating on a five-tier scale that consists of Gold, Silver, Bronze, Neutral, and Negative.
The Morningstar Medalist Rating may be assigned by an analyst or driven by quantitative algorithms that allow Morningstar to scale its fund coverage. To narrow the scope of this list, the funds below have ratings assigned by analysts.
The Morningstar Medalist Rating is a forward-looking measure of Morningstar’s confidence in a fund’s ability to beat its peers, after accounting for fees and risk, through a market cycle. Medals (Gold, Silver, and Bronze) indicate that analysts expect a fund to outperform its peers over a full market cycle; Neutral and Negative ratings mean that analysts aren’t confident in a fund’s ability to do so.
A fund’s rating is based on an assessment of the fund managers’ approach to…
