Morningstar Launches Morningstar Broad Style Indexes, Establishing a More Robust Framework for Style Analysis in U.S. Equity Portfolios
January 27, 2021 at 06:30 pm IST
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Morningstar, Inc. announced the launch of the Morningstar® Broad Style Indexes, a family of indexes designed to more accurately represent the size and style dimensions of the U.S. equity market. The Morningstar Broad Style Indexes consists of 12 U.S. equity indexes that divide the market by capitalization and investment style. The Morningstar Style Box™, first created in 1992, characterizes investments by their fundamental attributes, dividing the equity market along dimensions of size and valuation. The market for U.S. style-based investment strategies has continued to grow: Traditional mutual funds and exchange-traded funds classified in Morningstar's U.S. Equity Large Cap Growth global fund category held nearly $2.7 trillion in investor capital and assets in U.S. Equity Large Cap Value strategies totaled more than $1.3 trillion, as of year-end 2020, according to Morningstar data. While the underlying data and methodology of the Broad Style Indexes are designed to be consistent with the Morningstar Style Box, the Broad Style Indexes cover larger segments of the market. By allowing for overlap in constituents and extending further down the market-capitalization spectrum, the indexes facilitate better benchmarking of active strategies, making them a natural complement for informing style-related investment decisions.
Morningstar, Inc. is a provider of independent investment insights. It operates through five segments: Morningstar Data and Analytics, PitchBook, Morningstar Wealth, Morningstar Credit, and Morningstar Retirement. Morningstar Data and Analytics segment provides investors comprehensive data, research and insights, and investment analysis to empower investment decision-making. PitchBook segment provides investors with access to a collection of data and research covering the private capital markets, including venture capital, private equity, private credit and bank loans, and merger and acquisition activities. Morningstar Wealth segment brings together its model portfolios and wealth platform and practice and portfolio management software for registered investment advisers (RIAs). Morningstar Credit segment provides investors with credit ratings, research, data, and credit analytics solutions. Morningstar Retirement segment include managed retirement accounts and fiduciary services.