Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Funds for 2021 and Beyond
Let's hunt for bargains amid the bubble.
by Russel Kinnel | 2021-01-13 05:00:00
Good riddance 2020! I'm still trying to make sense of that awful year, but let's pause to sum up the markets and the economy at this point.As I write this, unemployment is still worse than it ever got in the 2008–09 recession. And with hospital capacity strained in many areas, it's quite likely that the jobs picture is going to get worse this winter before it gets better.But vaccines are coming, and that means the economy should recover as the nation's health recovers. Exactly how fast America will get vaccinated and how long it will take to stop the spread of the coronavirus is unclear, even if the trend is positive.After a decade of growth stocks beating value, we got treated in 2020 to growth stocks absolutely crushing value to a degree not seen since 1999. The typical mid-cap growth fund gained 39%, while the typical mid-ca… Full Story
5 Tips for Trading ETFs
It is always a good time to brush up on what constitutes good hygiene when transacting ETFs.
by Ben Johnson, CFA | 2021-01-12 05:00:00
A version of this article was published Jan. 17, 2020, on Morningstar.com.Some investors gloss over the "exchange-traded" in "exchange-traded fund," failing to understand or appreciate those two words and the implications of investing in a fund that trades like a stock. It is hard to fault them, as many of the largest ETFs trade at tight spreads in very narrow bands around their net asset values through most market conditions. But not all ETFs are created equal, nor all market environments for that matter. The mechanisms that underpin the ETF ecosystem have experienced hiccups of varying magnitude, ranging from the "flash crash" in 2010 and the early morning meltdown witnessed on Aug. 24, 2015, to more sporadic episodes of lesser scope and impact. These events have served as painful reminders of why investors should exercise c… Full Story
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1You could lose money by investing in a money market fund.Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so.The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
2You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
3You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
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Mutual Funds: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Funds for 2021 and Beyond
Let's hunt for bargains amid the bubble.
5 Tips for Trading ETFs
It is always a good time to brush up on what constitutes good hygiene when transacting ETFs.
Funds for 2021 and Beyond
5 Tips for Trading ETFs
4 Investment Strategies Now on Our Radar
Fund Managers: No Travel? No Problem! Well, Maybe a Few
International Equities Finish 2020 Higher Despite Wild Ride
2020 Year-End Wrap-Up: U.S. Equity Funds
Blacklisted Chinese Stocks Not a Burning Issue for U.S.-Based Stock Funds, Yet
A Strong Choice Among Small-Growth Funds
2020 Was a Record Year for ETF Records
The Life Cycle of Thematic Funds
3rd Party Research Disclosure /public-10:12:42
Market Data Disclosure