.

SmartMoney Blogs

Real-Time Advice
Our real-time advice on how market shifts and news impact you and your money

ETF Portfolios Get the Morningstar Treatment

Morningstar, the influential research firm that has for years bestowed stars on top-performing mutual funds, is adding a new investment to it universe: ETF managed portfolios.

This week, the Chicago-based researcher unveiled a new section of its web site where it will publish standardized returns for the ETF products – which typically represent a portfolio of exchange-traded funds selected by a professional investment manager. It will also include Morningstar’s classic star rankings and analyst write-ups of the new investments.

The most detailed data on ETF managed portfolios will be available only to financial advisers – the investments are marketed to these pros by Wall Street firms. But individual investors should take note, say experts: Morningstar’s effort could bring clarity to a corner of the investment universe ultimately targeting mom and pop where solid information is sometimes hard come by.

The strategies, recently profiled by the Wall Street Journal, are gaining fans quickly: they held $45 billion at the end of the first quarter, up roughly a third in just six months, according to Morningstar.

Among the reasons experts say they’re popular: An ability to capitalize on the buzz around fast-growing exchange-traded funds and an emphasis on annual investment fees rather than up front commissions. Since many advisers themselves are moving to charging investors annual fees, the pricing structure meshes well with their business model.

But there are some reasons to be skeptical. The new strategies can be pricey and managed accounts aren’t subject to many of the same rules designed to protect investors who own mutual funds, according to experts like John McGuire, partner at Bingham McCutchen LLP. “You don’t have the same magnitude of regulation,” he says.

For investors looking at these strategies here are some things investing pros say to keep in mind.

*Benchmarking can be tricky. The record for mutual fund managers is clear — and not veryinspiring. Over the past five years, only about a third have beaten their stock or bond benchmark. While the new strategies are essentially a bet that WallStreet can do better by shifting money between those various benchmarks, experts say it’s unclear how success should be measured. For strategies that involve only U.S. stocks, traditional indexes used to judge mutual funds might still work, but what about strategies that mix US and foreign stocks or stocks and bonds? “The user has to decide what they want to accomplish then ask ‘Is this something you can do on your own’” with a discount brokerage account or target-date fund? says Morningstar analyst Andrew Gogerty.”

*While ETFs gained popularity largely because they lowered investment costs, the new strategies, which use ETFs but also employ an active investment manager, risk neutralizing that advantage. Unlike mutual funds, managed account fees are negotiable so it’s difficult to judge what the average investor truly pays. But the Wall Street Journal reports all-in fees between the ETFs, the investment strategist and the financial adviser could range up to $200 for every $10,000 invested, a difficult hurdle.

*While a few of the ETF managed portfolios have been around for decades, many are brand new. Of the 500 in Morningstar’s database, about half have appeared since 2007. Perhaps, more important, reporting returns is voluntary. That means even firms that appear to have strong track records are hard to judge. For instance, a manager with three market-beating strategies might five years ago have offered six, half of which failed and were shuttered, disappearing from the record. Some big players, such as Envestnet, don’t report to Morningstar at all. Envestnet, which itself analyzes investment managers as well as marketing its own strategies, sees Morningstar as competition, says Tim Clift, chief strategist of the company’s investment arm.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (3 of 3)

View all Comments »
    • By WebOsPublisher

      Disaster Icons Natural: Search results Stock Illustrations on Dreamstime,a powerful stock photography vectors and free clipart to download.
      Natural Disaster Icons Stock Illustrations, Disaster Icons Natural Royalty Free Vectors Images And Disaster Icons Natural Clipart – Dreamstime
      var dtl_language_js = ‘en’;
      var dtl_SearchSubmit_006 = “enter keyword or file ID”;
      var ua = navigator.userAgent.toLowerCase();
      Email us | Phone: +1 615-771-5611
      Username
      Password
      Login
      Forgot your password? | Not a member?
      Sign up for free
      Abstract  Animals  Arts & Architecture  Business  Editorial  Illustrations & Clipart  Industries  IT & C  Nature  Objects  People  Technology  Travel
      Buy credits  About our images  Your downloads  Lightboxes  Free photos  FAQs  Message boards
      Upload files  Assignments  Sell your images  Your online files  Your earnings  Comments  FAQs  Message boards
      Message boards  Merchandise store  Our photographers  Collections  Utilities  Contests  Assignments  Stock Rank  Terms of use  FAQs
      photography
      illustrations
      only vector/RAW
      RF
      editorial
      Exclusive
      with people
      Search
      Match all words
      Match any word
      | Reset search
      new search
      within results
      memorize options
      | Content filter
      on
      off

      Home > Search results: 16 images Content filter: ON
      h1 color: #DE3288;font-family: Arial;font-size: 17pt;font-weight: normal;float:left;padding-left: 5px;margin:10px 0px 10px 0px;
      h2 color: #DE3288;font-family: Arial;font-size: 11pt;font-weight: normal;margin: 0; padding:0;
      Natural Disaster Icons Stock Vectors and Illustrations
      Page:
      .pagvisited

      font-weight:bold;
      padding: 4px 7px;
      width: 16px;
      text-align: center;
      display: inline;
      cursor:pointer;
      cursor:hand;
      border:1px solid #E5E2DE;
      background:#FFFFFF;

      .pagactive

      font-weight:bold;
      padding: 4px 7px;
      width: 16px;
      text-align: center;
      display: inline;
      cursor: pointer;
      border: 1px solid rgb(229, 226, 222);
      background: none repeat scroll 0% 0% rgb(246, 243, 240);

      .pagactive:link background:#F6F3F0;
      .pagactive:visited background:#F6F3F0;
      .pagactive:hover background:#FFFFFF;
      .pagactive:active background:#F6F3F0;
      1
      Items Per Page
      20
      80
      200
      Sort by
      most relevant
      best selling
      most downloaded
      latest uploads
      lowest price
      largest first
      smallest first
      a.searchitemgg white-space:nowrap; padding-right:5px; display:block;
      a:link.searchitemgg white-space:nowrap; padding-right:5px;
      a:visited.searchitemgg white-space:nowrap; padding-right:5px;
      a:focus.searchitemgg white-space:nowrap; padding-right:5px;
      a:hover.searchitemgg

      position:absolute;
      bottom:40px;
      left:0px;
      width:126px;
      background:#E5E2DE;
      padding:2px 3px 0px 3px;
      white-space:normal;
      position:relative \9;

      a:active.searchitemgg white-space:nowrap; padding-right:5px;
      .thb_c21

      height:14px;
      height:17px \9;
      margin-right:2px;

      Natural disaster icons
      Natural disaster icons
      Natural disasters icons vector
      House disaster icons
      Natural disasters’ icons
      House disaster icons
      House disaster icons
      Apocalyptic and natural disasters icon set
      Weather icons
      Natural Disasters
      House disaster
      Weather Icons
      Safe energy
      Save the earth
      The planet’s resources
      Icon of fire
      Page:
      .pagvisited

      font-weight:bold;
      padding: 4px 7px;
      width: 16px;
      text-align: center;
      display: inline;
      cursor:pointer;
      cursor:hand;
      border:1px solid #E5E2DE;
      background:#FFFFFF;

      .pagactive

      font-weight:bold;
      padding: 4px 7px;
      width: 16px;
      text-align: center;
      display: inline;
      cursor: pointer;
      border: 1px solid rgb(229, 226, 222);
      background: none repeat scroll 0% 0% rgb(246, 243, 240);

      .pagactive:link background:#F6F3F0;
      .pagactive:visited background:#F6F3F0;
      .pagactive:hover background:#FFFFFF;
      .pagactive:active background:#F6F3F0;
      1
      Share
      var static_adr=’thumbs.dreamstime.com/’;
      var srh_field=’natural disaster icons’;
      var dtlanguage=’en’;
      var DTL_FUNCTIONS_PR_025=’The flagging system enables you to report images that are completely irrelevant for the search you just made. It is not a rating system, thus you are asked to report only the spam attempts.’;
      var sel=0;
      // TODO make this work
      function ChangeThis(obj)
      if(obj.value != -1 && obj.value !== 0)
      if($(obj).val()==”alpha”
      grayback();
      $options=$(‘#lightbid’).children(‘option’);
      $arrVals=[];
      $options.each(function()
      if($(this).val()==”alpha”);
      var sort_by = function(field, reverse, primer)

      var key = function (x) return primer ? primer(x[field]) : x[field];
      return function (a,b)
      var A = key(a), B = key(b);
      return ((A B) ? +1 : 0)) * [-1,1][+!!reverse];
      ;
      ;
      switch($(obj).val())

      case ‘alpha’:
      $arrVals.sort(sort_by(‘txtx’,true,false));
      break;
      case ‘date’:
      $arrVals.sort(sort_by(‘datex’,false,false));
      break;

      $(obj).html(“”);
      for(var i=0, m=$arrVals.length;i—————————Sort alphabeticalySort by date’)
      $(obj).val(sel);

      Collapse |
      Close
      Lightbox/cart:
      View & Download
      You have 0 images
      Close
      Please select an existing lightbox/cart or create a new one.
      Add to an existing lightbox:
      Select Lightbox
      ———————
      or
      New lightbox name:
      Quicksearch for stock photography:
      Search
      About Us | FAQ | Contact Us | Terms of use | API / Referral program | Site map | Privacy policy
      Upload image | Free Stock Images | Timeline Images
      Support – phone: +1 615-771-5611, Click here to contact us
      Language:
      English
      Deutsch
      EspaГ±ol
      Français
      Italiano
      Nederlands
      PortuguГЄs
      PСѓСЃСЃРєРёР№
      ОµО»О»О·ОЅО№ОєО¬
      汉语
      Polski
      Svenskt
      Copyright © 2000-2012 Dreamstime. All rights reserved.
      Dreamstime is a member of PACA and CEPIC.
      /* */

      http://id.lenta.ru/profile/108850/

    • By WebOsPublisher

      Dribbble – Updating my favourite icon creator… by Ian Tearle
      Sign in
      Shots
      Popular
      Everyone
      Debuts
      Playoffs
      Explore
      Highlights
      Buckets
      Colors
      Projects
      Tags
      Designers
      Find Designers
      Players
      Rookies
      Prospects
      Jobs
      About
      Sign up
      Updating my favourite icon creator…
      by Ian Tearle
      Pro
      Mar 20, 2012
      1 Attachment
      App Icon Template [2.0].png 1.2 MB
      6 likes
      1 bucket
      Tweet
      375 views
      drbl.in/duVv
      #DADADA
      #0B0B0B
      #626263
      #999795
      #BDCBD5
      #610B09
      #8E372A
      #6A7C8D
      Tags
      36
      coaches loupe
      15
      ios
      11
      iphone
      8
      icon
      2
      photoshop
      1
      ipad
      2 Responses
      Pro
      Ian Tearle
      The original version from Michael Flarup pixelresort.com/blog/app-icon-template/ has not been updated yet, I needed the icons now, so I updated his template. If you’d like it then please ask, I don’t want to step on Micheal’s feet and spoil his hard work. He should get all credit.
      9 months ago
      Pro
      Tanveer Junayed пЈї
      Great work!
      9 months ago
      Ads via The Deck
      More by Ian Tearle
      Newer
      Older
      keyboard shortcuts: ← previous shot → next shot L or F like
      Show and tell for designers.
      70,042,906,943 pixels dribbbled
      About
      FAQ
      Contact
      Advertise
      Testimonials
      Handbook
      Terms
      Privacy
      API
      Equipment
      Copyright © 2009-2012 Dribbble LLC. All screenshots © their respective owners. Handcrafted in Salem, Massachusetts USA.
      Twitter
      Meetups
      Newsletter
      Blog
      Hosted by
      $(‘#share-form-url’).click(function()
      this.select();
      );
      // Move Deck ad content from loading area to display location
      $deckAdContainer.
      append($(‘.thedeck.loading-dock
      var _gaq = _gaq || [];
      _gaq.push(['_setAccount', 'UA-24041469-1']);
      _gaq.push(['_trackPageview']);
      (function()
      var ga = document.createElement(‘script’); ga.type = ‘text/javascript’; ga.async = true;
      ga.src = (‘https:’ == document.location.protocol ? ‘https://ssl’ : ‘www’) + ‘.google-analytics.com/ga.js’;
      var s = document.getElementsByTagName(‘script’)[0]; s.parentNode.insertBefore(ga, s);
      )();

    • By WebOsPublisher

      On Friday,an update was released by Facebook that didn’t exactly thrill the masses. Upon installing,users noticed that they now had 3 icons from Facebook
      Facebook Update Adds Little Facebook Icons to Camera and Messenger Shortcuts, We Still Think It’s a Dirty Little Trick | Android News, Phones, Tablets, Apps, Reviews – Android Headlines
      body background-color:#ffffff;
      h1,h2,h3,h4,h5,h6,h7,#sitetitle .title font-weight:bold !important;
      .post-title a,.post-title a:link,.post-title a:visited color:#010105 !important;
      #sitetitle,#logo float:left;width:49%;
      #sitetitle .title,#sitetitle .description float:none;text-indent:-999em;position:absolute;display:none;left:-999em;
      #topnav,#topnav ul ul a background:#ffffff;
      #topnav border:0;
      #topnav ul ul,#topnav ul ul a border-color:#fff;
      #topnav ul li.searchform padding-right:4px;padding-left:4px;
      #topnav ul a,#topnav ul ul a color:#333333;
      #topnav ul a:hover,#topnav ul ul a:hover color:#000000;
      .maincontent a, .maincontent a:link, .maincontent a:visited color:#ab1207;
      .maincontent a:hover, .maincontent a:active color:#010105;
      #contentright a, #contentright a:link, #contentright a:visited color:#ab1207;
      #contentright a:hover, #contentright a:active color:#010105;
      .vvqbox display: block; max-width: 100%; visibility: visible !important; margin: 10px auto; .vvqbox img max-width: 100%; height: 100%; .vvqbox object max-width: 100%;
      .fancybox-hiddendisplay:none
      About
      Privacy Policy
      Join Our Team
      Staff
      Contact
      Android Paid Application Review Service
      Android Paid App Advertising, Marketing and Promotions
      App ReviewsApp Top 10 ListsPhone & Tablet RankingsPhone & Tablet WarsAH PodcastBuying GuideShop
      Facebook Update Adds Little Facebook Icons to Camera and Messenger Shortcuts, We Still Think It’s a Dirty Little Trick
      - droid-life.com |
      April 24, 2012
      | Reply
      Tweet
      On Friday, an update was released by Facebook that didn’t exactly thrill the masses. Upon installing, users noticed that they now had 3 icons from Facebook in their app drawers: В Camera, Messenger, and Facebook. The camera app was a shortcut so that you could instantly take photos and then load them into FB, while theВ messengerВ shortcut was exactly what you would expect it to be, a shortcut to their messenger service. As I mentioned earlier, many of you were not excited to now have Facebook in 3 different spots, especially right next to two of the most used native apps on your phone. You now had to be careful when you hit “Camera” or “Messenger/Messages” as these are the …
      Continue Reading Here
      Facebook Update Adds Little Facebook Icons to Camera and Messenger Shortcuts, We Still Think It’s a Dirty Little Trick
      – droid-life.com
      Tweet
      Tags: bloatware, facebook, launcher, messenger service, native apps, shortcuts
      Category: Uncategorized
      About the Author (Author Profile)
      /* */
      « Google increases free Gmail storage space to 10GB, 25GB for paying Google Drive customers
      [Lightning Review] Capta: Thanks To Some Awesome Alien Goo, Tripod-ifying Your Phone Has Never Been Easier »
      Connect With Us
      Google Nexus 4 Giveaway at AndroidHeadlines.com!
      We are giving away a brand new Google Nexus 4. Before you continue reading this, if you haven’tВ read our reviewВ go and read it now then come back. The Nexus 4
      … Read More В»
      Featured Posts
      Droid Daily 12/7/12: Sony, HTC Butterfly, Action Launcher, Google Wallet, and More
      Tweet Tweet With Tons of Android News coming out every hour is near impossible to write about it all but we want to make sure you don’t miss a thing! So everyday we offer a quick view of stories that did not make our front page top news and give you some extra reading, so you [...]
      Tweet
      Alexander Maxham |
      December 7, 2012
      | Reply
      The Next Step In The Evolution of The Mobile Industry?
      Tweet Tweet As we mentioned earlier today, the consumer electronics industry is a whirlwind of change and has been for the last twenty years. The home computer industry has sought to focus consumers on everything from the size of their hard drives В to the number of cores in their product’s processor. The smart phone industry has [...]
      Tweet
      Doug Scudder |
      December 7, 2012
      | 2 Replies
      Asphalt 8: Infinity, Dungeon Hunter 4 and More from Gameloft coming in 2013
      Tweet Tweet When you think about mobile gaming, or Android gaming more specifically, what’s the first developer you think of? Probably not Rockstar or Electronic Arts. For most people its Gameloft. They have created some really great games over the years. And that probably won’t be changing anytime soon. Today, their entire line of titles for [...]
      Tweet
      Alexander Maxham |
      December 7, 2012
      | Reply
      T-Mobile Testing New Prepaid Option, GoSmart Mobile
      Tweet Tweet First we had news of T-Mobile killing off their “Classic Plans” and subsidized devices, then we found out about their plans to sell Apple products, and now we have confirmation from FierceWireless that the carrier is planning on testing a new prepaid brand called GoSmart Mobile in select markets. If all goes well the company “plans [...]
      Tweet
      Joe Levin |
      December 7, 2012
      | 4 Replies
      Is Sprint Trying to Keep Google Wireless from Happening?
      Tweet Tweet We knew when we first started hearing about Google and Dish Network being in talks about possibly creating a wireless operator, which we have since called Google Wireless, that other carriers weren’t going to like it. And of course they wouldn’t. Google has shown in the last year, that they are willing to sell [...]
      Tweet
      Alexander Maxham |
      December 7, 2012
      | 2 Replies
      © 2012 Android News, Phones, Tablets, Apps, Reviews – Android Headlines. All rights reserved. Solostream
      /* */

About Real-Time Advice

  • How breaking news — in the markets, Washington, and around the world — affects you and your money. Have a question about how current events may change your financial future? Email us at ask@smartmoney.com.

.