worst

February 9, 2020 Mutual Funds No Comments

Best And Worst Q1 2020: Consumer Cyclicals ETFs And Mutual Funds

Best And Worst Q1 2020: Consumer Cyclicals ETFs And Mutual Funds Based on an aggregation of ratings of the 449 stocks in the Consumer Cyclicals sector. XLY is our top-rated Consumer Cyclicals sector ETF and FSRPX is our top-rated Consumer Cyclicals mutual fund. The … Continue reading at seekingalpha.com Mutual Funds Are Still Keeping Secrets […]

December 20, 2019 Mutual Funds No Comments

Best And Worst Q4 2019: Small Cap Value ETFs And Mutual Funds

Best And Worst Q4 2019: Small Cap Value ETFs And Mutual Funds The Small Cap Value style ranks 10th in Q4’19. Based on an aggregation of ratings of 19 ETFs and 212 mutual funds in the Small Cap Value style. JKL is our top-rated Small Cap Value ETF and LMVOX is … Continue reading at […]

December 12, 2019 Large Cap No Comments

Best And Worst Q4 2019: Large-Cap Value ETFs And Mutual Funds

Best And Worst Q4 2019: Large-Cap Value ETFs And Mutual Funds Sources: New Constructs, LLC and company filings Stock Dividend Fund (SDIVX) is excluded from Figure 2 because its total net assets (TNA) are below $ 100 million and do not meet our liquidity minimums. Continue reading at seekingalpha.com Is BEST Inc. (BEST) A Good […]

December 11, 2019 Mutual Funds No Comments

Malaysia Top Funds Like Tech Stocks in Asia’s Worst Major Market

Malaysia Top Funds Like Tech Stocks in Asia’s Worst Major Market (Bloomberg) — The funds that won big from Asia’s worst-performing major equity market placed their bets on technology stocks. Eastspring Investments Small Cap Fund scored a 16.8% return in 2019, … Continue reading at finance.yahoo.com Investors Bail on Stock Market Rally, Fleeing Funds at […]

December 6, 2019 Mutual Funds No Comments

Best And Worst Q4 2019: Large-Cap Growth ETFs And Mutual Funds

Best And Worst Q4 2019: Large-Cap Growth ETFs And Mutual Funds The Large-Cap Growth style ranks fifth in Q4’19. Based on an aggregation of ratings of 25 ETFs and 698 mutual funds in the Large-Cap Growth style. SPGP is our top-rated Large-Cap Growth ETF and FUQIX … Continue reading at seekingalpha.com Play These 3 Goldman […]

December 1, 2019 Mutual Funds No Comments

Best And Worst Q4 2019: All Cap Growth ETFs And Mutual Funds

Best And Worst Q4 2019: All Cap Growth ETFs And Mutual Funds The All Cap Growth style ranks seventh in Q4’19. Based on an aggregation of ratings of 26 ETFs and 545 mutual funds in the All Cap Growth style. TTAC is our top-rated All Cap Growth ETF and NLAFX is … Continue reading at […]

November 23, 2019 ETF 2 Comments

Best And Worst Q4 2019: Utilities ETFs And Mutual Funds

Best And Worst Q4 2019: Utilities ETFs And Mutual Funds The Utilities sector ranks eleventh in Q4’19. Based on an aggregation of ratings of the 68 stocks in the Utilities sector. FXU is our top-rated Utilities ETF and BULIX is our top-rated Utilities … Continue reading at seekingalpha.com Horizons ETFs Announces November 2019 Distributions for […]

November 11, 2019 Mutual Funds 18 Comments

Best And Worst Q4 2019: Financials ETFs And Mutual Funds

Best And Worst Q4 2019: Financials ETFs And Mutual Funds The Financials sector ranks third out of the 11 sectors as detailed in our Q4’19 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Financials sector ranked second. It gets our … Continue reading at seekingalpha.com Mutual Funds’ exposure to NBFC debt papers […]

Wherever you look, you will find various rating systems on mutual funds, each of which uses a different approach. All of them are designed to weed through the thousands of funds to get to the best ones. But is there really such a thing? Does a high rating really mean a fund will do better in the future? Many people seem to think so. A recent study showed that Morningstar, North America's most recognized rating system for funds, has a tremendous influence on fund sales. If Morningstar gives a five-star rating, those funds typically enjoy increased sales as a result.

Performance will vary. Fund performance often falls off and risk levels rise during the subsequent three years after a fund is given an initial five-star Morningstar rating, suggests another recent study by Matthew Morey, a professor at Pace University. One reason for this is that after receiving a five-star rating the size of the fund grows dramatically, which then makes the fund unwieldy to manage, he suggests. Since Morey's study was completed, Morningstar also has changed the way it doles out top rankings to make them more precise. One of the biggest problems with all rating systems is that they are not necessarily predictive in nature. This means they're not really set up to tell you whether certain funds will necessarily do better in the future. For the most part, the ratings indicate how much you might have made and how much aggravation you faced in the process.

Ratings are a very important element in trying to distinguish between good and bad funds. Good research, however, goes far beyond just looking for five stars or an A+. When evaluating funds, look at the quantitative, measurable characteristics of a fund: returns up against the benchmark, costs, risks, taxes and manager tenure. Use rating systems as part of your research, but remember: just because the analysts give them top marks, it does not mean they will be the best investment in the future, and doesn't it mean that they'll be the best investment for you in particular. Take the time to understand how the ratings were achieved. This will be the first step to educating yourself about funds.