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15 Top Funds Leading the Way on ESG


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Alyssa Stankiewicz does not own shares in any of the securities mentioned above. Find out about Morningstar’s
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When It Comes to Indexes, the Devil is in the Details


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. ....

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How to Identify the Best Investments for Your IRA


Editor s note: A version of this article was originally published on March 28, 2019. It is part of Morningstar s Tax and IRA Guide special report. 
As of today, you have a little more than a month and a half to contribute to an IRA for the 2020 tax year.
Of course, the heaviest lift in funding an IRA is finding the money to invest: While your 401(k) contributions likely go into your account on autopilot, most of us don’t have an extra $6,000 or $7,000 (the 2020 IRA contribution limits for savers under/over 50, respectively) lying around. It’s no wonder so many people rush in their contributions at the last possible minute, just before their tax-filing deadlines. (Bear in mind that you can make smaller contributions than the full contribution amount.) ....

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The Case for Indexing in the Corporate Bond Market


Exchange-traded funds tracking indexes that are representative of the broad investment-grade corporate bond market are a solid option for exposure to this asset class. Portfolios that mimic the contours of this opportunity set and boast low fees have been difficult for active managers to beat. Over the 10 years through June 2020, just 40% of actively managed funds in the corporate bond Morningstar Category managed to survive and outperform the average of their passive peers.
This article explores the contours of the investment-grade corporate bond market, how it has evolved over time, and the case for indexing in this asset class.
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