Data provider Morningstar has developed its analytics offering for equity investments to include more detail on factors for mutual funds and ETF exposures.
Named Factor Profile, the visual tool defines the dimensions of five factors including style, yield, momentum, quality, volatility and liquidity.
The purpose of the tool is to enable investors to get a further understanding of what drives a stock fund’s return.
For example, investors can look at a fund’s current positioning relative to its historic ranges which can help them to determine whether a fund consistently targets certain characteristics or shifts focus frequently.
Factor Profile is available for all equity mutual funds and ETFs in Morningstar Direct, the company’s investment analysis platform.
