The December 2020 addition of Tesla (TSLA) to the S&P 500 was a useful reminder of the significant differences between apparently similar indexes with respect to how they select stocks, weight them, and maintain their portfolios over time. A casual observer of markets could easily be forgiven for having assumed that Tesla was a component of all major U.S. stock indexes well before the end of last year given its mainstream ubiquity and mushrooming market capitalization. Plus, one of the major points of appeal of broad market indexes is, well, their breadth. They tend not to miss out on much. But not all big benchmarks are similarly broad, nor do they all take the same approach to which stocks they let in and those they leave out.
An Upgrade for the T Rowe Price Retirement Target-Date Series
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These T Rowe Price Funds Find Gold
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Top-rated fund managers pushed into beaten-down sectors and pared their stakes in high-flying stocks as 2020’s roller-coaster ride came to an end. The fourth quarter of 2020 featured a contentious election cycle in the United States and the release of initial coronavirus vaccine trial results, both of which further roiled markets and prevented an otherwise merciful, smooth ending to the year. To get a sense of how active stock managers responded to the quarter’s challenges, we looked at the buys and sells of the aggregated portfolios of all U.S. equity funds with Morningstar Analyst Ratings of Gold, Silver, or Bronze.
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Each year, Morningstar s team of manager research analysts evaluates the 529 investment universe and assigns forward-looking, qualitative Morningstar Analyst Ratings for 529 college savings plans based on our assessment of their investment merits. This year is pivotal, as it marks the first methodology enhancement to the ratings that debuted eight years ago. This updated rubric reflects our understanding of what drives compelling outcomes for 529 plan participants and takes into account the broader industry s evolution and rising standards.
This year, Morningstar analysts assigned ratings to 61 plans that captured 97% of the more than $363 billion invested in 529 plans as of Aug. 30, 2020.
Under the enhanced methodology, we now organize our research around four key pillars: Process, People, Parent, and Price. (In prior assessments, a fifth pillar was dedicated solely to performance, but that is now considered in tandem with the People, Process, and Parent Pillars,