The rating agency Morningstar has spruced up its rating system, which “hasn’t proved to be very predictive for future performance and volatility” and has “lost its luster because of the…
Tag: Morningstar Ratings
Morningstar Incorporates Artificial Intelligence into New Ratings
Earlier this month, Morningstar introduced new quantitative ratings that will cover more than 10,000 funds and ETFs. The system will use both machine learning and artificial intelligence to “learn from…
Bloomberg's Kaissar Weighs-In on Morningstar Fund Ratings
In a recent article, Bloomberg columnist Nir Kaissar challenges the rationale of a Wall Street Journal article suggesting that Morningstar mutual fund ratings lead investors to “assume erroneously” how those…
Some Thoughts On Improving the Predictive Value of Morningstar's Ratings
By Jack M. Forehand (@practicalquant) — The Wall Street Journal article last week that called into question the predictive value of Morningstar star ratings has caused a lot of debate…
Morningstar Ratings and Future Fund Performance
In a recent paper published by the firm’s quantitative research team, the Morningstar Rating, also known as the “star rating”, is summarized and evaluated with respect to accuracy. Morningstar now…