We did a enjoyable little examine evaluating the common Morningstar Star Ranking vs. charges on the funds. We examined all ETF firms with at the very least 5 rated funds, leading to roughly 50 firms.
What we discovered would make sense: the costliest group of funds tended to be the worst performers. However when you do away with the costliest quartile, the common Morningstar score is about the identical. (This has been well-known for at the very least a decade…)
Whereas the mega corporations of Vanguard, Constancy, and Schwab are all represented within the high 10 common score (8-10), the highest seven corporations are all smaller boutiques with property round $1 – $10 billion.
Hat tip to Anvith for the assistance and Morningstar for the inspiration.
