Morningstar Fund Ratings Round-up

This week sees two upgrades for passive bond fund offerings, one from Vanguard and one from iShares

Jose Garcia Zarate 26 November, 2019 | 9:58AM

analyst rating

Upgrades

Vanguard Euro Government Bond Index – Gold

Jose Garcia Zarate

This is a market exposure where the opportunity to add meaningful value over a standard benchmark in a sustained manner has been severely reduced. As a result, a passive approach with a tight control over trading costs has become the default option for investors. This Vanguard strategy now comes with much lower fees, which only enhances its appeal and supports upgrading its Morningstar Analyst Rating from Silver to Gold for all its share classes. 

iShares Overseas Government Bond – Bronze

Jose Garcia Zarate

iShares Overseas Government Bond offers exposure to the market of investment-grade government bonds issued by the largest developed economies, excluding the U.K. This strategy is aimed at UK investors as a complement to domestic sovereign holdings. The exclusion of the UK makes for volatile comparisons of performance relative to peers in the category. However, the combination of the low cost of most of the strategy’s share classes and the efficient management process employed by iShares are good reasons to upgrade the Morningstar Analyst Rating from Neutral to Bronze.

Note: Under the enhanced Morningstar Analyst Rating different share classes of funds may have different ratings

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares Overseas Govt Bd Idx (UK) D Acc129.25 GBP-2.01
Vanguard Euro Govt Bd Idx Inv EUR Acc223.05 EUR-1.18

About Author

Jose Garcia Zarate

Jose Garcia Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites