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What Are Morningstar Ratings?

April 26, 2017morningstar ratings

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What Are Morningstar Ratings?

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The Morningstar Rating (a.k.a. star rating) from one to five stars measures a fund’s risk-adjusted historical performance compared to peers. A fund with a Morningstar Rating of four or five stars has produced higher returns while taking less risk (being less volatile) than similar funds. A fund with a Morningstar Rating of one or two stars has produced lower returns while taking more risk (being more volatile) than similar funds.