Morningstar Begins Rating ETFs | ETF Trends

Watch out mutual funds! Morningstar is introducing an exchange-traded fund rating service, The Wall Street Journal and Ignites reported today.

"The service will compare ETFs much the same way Morningstar now
compares mutual funds, with ratings of one to five stars based on past
performance figures adjusted for risk. Expense ratios are also compared.

Just the roughly 100 ETFs with three-year track records will be considered.

Lipper and Standard & Poor’s are already providing rankings for ETFs. Lipper’s service is free on its website, www.lipperweb.com, while S&P’s are available through brokers or financial advisors. Morningstar’s service is free on its website, www.morningstar.com."

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.