What is the Morningstar Quantitative Rating for Funds?

The Morningstar Quantitative Rating uses machine-learning to apply an analyst rating to thousands of funds. But how good is it at picking winners? 

Lee Davidson 10 June, 2020 | 10:20AM

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Investors will be able to understand/see the Morningstar view on many more funds after the roll-out of the Morningstar Qualitative Rating. But how does it work?

The Morningstar star rating rates funds on a scale of one to five based on their past performance. The Morningstar Analyst Rating, meanwhile, ranks funds Gold through Bronze, Neutral and Negative based on a number of qualitative factors including the fund’s strategy, fees and parent company, all of which help to determine the likelihood of the fund outperforming its peers over the long-term.

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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.

About Author

Lee Davidson

Lee Davidson  is an ETF analyst with Morningstar Europe.

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