Never mind apples and oranges. The folks at Morningstar
are going to start looking at ETFs like they look at traditional open-end mutual funds.
| Ben Johnson|
Director of Passive Funds Research
, director of global ETF research at the Chicago-based investment research and mutual fund ratings giant, revealed
yesterday a two-pronged change in how his team treats ETFs. First, M* will begin rating some ETFs (about 300 at first) using its qualitative, forward-looking Analyst Ratings (which M* started
back in 2011 for traditional mutual funds and which feature the three Olympic medal colors as well as neutral and negative). Second, M* will rate ETFs and mutual funds against each other with its quantitative, backward-looking star ratings.
"Investors increasingly see open-end funds and ETFs as interchangeable options when choosing investments," Johnson states. "By combining them into the same peer group, investors can more easily compare investments regardless of the product structure."
Neil Anderson, Managing Editor
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