This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morningstar Votes for Mutual Funds

"As we do with conventional open-end funds, we call them as we see them," says Dan Culloton, an analyst at Morningstar.

One possible reason for the perception of a negative ETF bias is that "you've had a gold-rush mentality where providers have been launching funds in a lot of very narrowly defined sectors," the Morningstar analyst says. "We tend to be more skeptical of narrowly defined, sector-oriented vehicles, ones that are more volatile, expensive and harder to use.

"If we tend to say a lot of negative things about ETFs, I think you'll see we are consistent with the negative things about conventional funds," Culloton adds. compared Morningstar's comments on core, diversified domestic, large-cap blend ETFs (i.e. not narrowly defined, concentrated assets) and their mutual fund counterparts. The comparison revealed more negative comments about the ETFs than the mutual funds, even though several of the mutual funds were underperforming the market. Consider the following:

The first ETF on the list described above, ranked by assets, the Vanguard Total Stock Market (VTI) gets a nice write-up. "Vanguard Total Stock Market ETF has it all, literally," Culloton writes on Morningstar's Web site. "It may look a bit sluggish in the future if small stocks surrender the market leadership but this fund can still serve as an excellent core holding."

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
TMW $0.00 0.00%
IWV $126.74 0.00%
IVV $213.08 0.00%
IWB $118.66 0.00%
IYY $107.05 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs