Investing Insights

Morningstar stamps what it thinks about a fund’s future with this Medalist Rating. You’ve probably seen a star with the word Gold, Silver, or Bronze next to a fund you were researching on Morningstar.com. This represents the fund’s Morningstar Medalist Rating. The manager research team recently reworked and simplified how they judge funds to create a simpler process for investors to understand. The new methodology also brings more transparency and stability. Some funds’ ratings rose, while others fell or held steady. What were the key factors that led to the upgrades and downgrades, and which funds gained or lost status?

Morningstar Senior Principal of Ratings Russ Kinnel was in a room where it happened. Russ, who is also the editor of Morningstar FundInvestor, is here to talk about it.

How Morningstar’s New Medalist Rating Methodology Affects 11 of America’s Largest Funds

On this episode:

00:00:00 Welcome

00:01:33 Why Morningstar refreshed its Medalist Rating methodology

00:02:43 How the new criteria evaluate active and passive funds

00:03:07 Rating changes across fund categories and equity style boxes

00:04:09 Fidelity Contrafund, Pimco Income, and Vanguard Total Stock Market Index reviewed

00:06:25 Upgrades for target date, bank loan, and allocation funds

00:08:44 High fees trigger downgrades for some funds

 

Watch more from Morningstar:

Will Vacation Inflation Affect Your Summer Travel? Here’s What to Know

https://www.morningstar.com/stocks/will-vacation-inflation-affect-your-summer-travel-heres-what-know

Bond ETF Flows Just Flipped. Here’s What It Means for You

https://www.morningstar.com/bonds/bond-etf-flows-just-flipped-heres-what-it-means-you

How Big Tech’s Bond Spree and Rising US Debt Are Creating Risks and Opportunities

https://www.morningstar.com/bonds/how-big-techs-bond-spree-rising-us-debt-are-creating-risks-opportunities

 

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Macroeconomic conditions are squeezing US airlines and travelers just in time for the summer travel season. 

Higher fuel costs due to the conflict in the Middle East are pushing up ticket prices. The latest Consumer Price Index report showed fares rose by about 3% in April. Meanwhile, choices for cheap seats decreased when Spirit Airlines went out of business in May. The ultra low-cost carrier blamed soaring energy prices. What does this uptick in energy inflation mean for airlines’ profits and travelers’ wallets? 

 Nic Owens is an equity analyst for Morningstar and covers the North American airlines.

April CPI Report Shows Inflation Broadening As Energy Spike Impact Spreads

On this episode:

00:00:00 Welcome

00:01:21 Energy prices and airline profit outlooks

00:02:40 How this summer's travel demand stacks up 

00:04:01 Which Big Four airlines are most and least vulnerable 

00:05:44 Who will compete for Spirit's former customers

00:07:00 Tips for travelers  

00:08:51 What Morningstar’s analyst thinks about airline stocks

Watch more from Morningstar:

Bond ETF Flows Just Flipped. Here's What It Means for You

How Big Tech's Bond Spree and Rising US Debt Are Creating Risks and Opportunities

10 Exceptional Stocks With Double-Digit Dividend Raises

 

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ltrashort bond funds are experiencing highs and lows this year. 

 

They racked up a record $24 billion monthly inflow in March. But their fortunes reversed in April. Investors yanked out $1.6 billion. It was the biggest monthly outflow for the category in about two years. Ultrashort bond funds and similar fixed-income investments attract investors seeking a safe haven. They also generate cash and help moderate portfolio risks. So why are investors leaving now? What should you know before adding them to your portfolio? 

 

Morningstar’s ETFInvestor newsletter editor Dan Sotiroff is here to answer that.  And the associate director of US passive strategies research will reveal which shorter-term bond ETFs have high ratings from Morningstar.

 

Subscribe to Morningstar Investor Newsletters

https://newsletters.morningstar.com/

 

On this episode:

00:00:00 Welcome

00:01:33 Three types of shorter-term bonds explained

00:03:54 Comparison to money market funds and CDs

00:07:05 Why investor poured into funds before reversing course 

00:08:34 Who else are these suited for beyond income investors

00:11:11 Top-rated ultrashort and short-term bond ETFs

00:13:22 Top-rated short-term government bond ETFs

00:14:09 Takeaway for income investors

 

Watch more from Morningstar:

How Big Tech’s Bond Spree and Rising US Debt Are Creating Risks and Opportunities

10 Exceptional Stocks With Double-Digit Dividend Raises

Investors May Be Ignoring Big Market Disruptions. Is There Risk to the Rebuff?

 

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Is a global debt emergency on the horizon?

 

Big Tech’s bond-issuing spree is helping to pay for its massive artificial intelligence buildout. And it’s not expected to slow down this year.  Meanwhile, the US federal deficit has swelled to about $39 trillion, according to the US Treasury Department. That’s raising red flags about the potential impact on the Treasuries market. Government and corporate debt are growing but for different reasons. How should investors think about it?

 

Dominic Pappalardo is the chief multi-asset strategist for Morningstar Wealth. It’s part of registered investment advisor, Morningstar Investment Management.

 

 

Why Bonds Still Have Long-Term Appeal Despite Recent Wobbles

 

 

On this episode:

00:00:00 Welcome

00:01:29 Big Tech's AI bond-issuing spree explained

00:03:51 What's driving the US federal deficit higher

00:06:04 Calls to prepare for a bond market emergency 

00:07:38 Government vs. corporate debt key differences

00:08:45 Potential risks lurking in today's bond market

00:10:33 Bond portfolio opportunities and investor takeaways

 

Watch more from Morningstar:

10 Exceptional Stocks With Double-Digit Dividend Raises

Investors May Be Ignoring Big Market Disruptions. Is There Risk to the Rebuff?

Vanguard Wrote the Playbook for Success. Now, It Must Evolve to Stay on Top

 

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A rare group of dividend-paying stocks are standing out for their exceptional qualities. They’ve racked up five straight years of dividend growth of 10% or more. And they’ve passed several rigorous checks. Morningstar’s DividendInvestor newsletter editor David Harrell dug into the data to identify this year’s class of Dividend Growers.

Subscribe to Morningstar’s DividendInvestor newsletter. 

On this episode:

00:00:00 Welcome

00:01:08 Dividend Growers qualifications and key caveats

00:03:17 How the 2026 Dividend Growers list changed from last year

00:04:11 Meet the three newcomers: Intuit, Motorola Solutions, and TJX

00:05:43 Near-miss stocks and why the group’s average yields run higher

00:08:19 Who dividend growth stocks suit

00:11:13 Which 2026 Dividend Growers look undervalued now

 

Watch more from Morningstar:

Investors May Be Ignoring Big Market Disruptions. Is There Risk to the Rebuff?

Vanguard Wrote the Playbook for Success. Now, It Must Evolve to Stay on Top

Vanguard Is Entering a New Era. Can It Keep Winning for Another 50 Years?

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