1 Morningstar scored robo-advisors on a five-point scale, High, Above Average, Average, Below Average, and Low, along with four dimensions: total price (30% weighting); the process used to select investments, construct portfolios, and match portfolios with investors (30%); the parent organization behind the digital platform (20%); and the breadth of services (20%). Morningstar weighted each category score and then summed it to arrive at an overall score, which was then used to rank the robo-advisors.
2 Based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 3, 5, and 10-year periods. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. If the funds are eligible for Lipper Fund Awards, are in the Lipper database and meet all criteria as per methodology, they will be considered. The merit of the winners is based entirely on objective, quantitative criteria. Proprietary methodology is the foundation of the Award qualification. Past performance is no guarantee of future results.
3 The Morningstar Rating™ for funds, or "star rating," is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. Past performance is no guarantee of future results. Results are as of September 30, 2021, and will vary for other time periods. 1,512 ETFs were included in this analysis.
4 Based on various criteria, including low costs, risk-adjusted performance, and stewardship.
5 Based on a number of factors at the time these awards were announced in May 2021, including having a large number of investment options, low fees, reasonably low minimum investment/balance requirements, and helpful online account management options. Past performance is no guarantee of future results.
6 Funds included on Morningstar’s Thrilling 36 have expense ratios in their category’s cheapest quintile, manager investment of more than $1 million in the fund, a Morningstar Risk rating below the High level, a Morningstar Analyst Rating of Bronze or higher, and returns above the fund’s category benchmark over the manager’s tenure for a minimum of five years. In the case of allocation funds, category averages are used. Funds on the Thrilling 36 list must be a share class accessible to individual investors with a minimum investment no greater than $50,000. The Morningstar Risk measure is based on the utility theory of risk and penalizes downside volatility more than upside. It’s based on a fund’s three-, five-, and 10-year records and is measured relative to category peers. Past performance is no guarantee of future results.
7 Based on steady performance, low costs, skilled and trustworthy managers, and a consistent investment strategy. Past performance is no guarantee of future results.