Investing Insights

ETF Share Classes Are a Go for Dimensional: Here’s What Investors Need to Know On this episode: What was your reaction to the SEC removing these regulatory hurdles? Let’s first start with the rule change regarding crypto ETFs. Can you explain what new investment choices could be available, and what would they track? How soon could firms release new crypto ETFs? They’re already spot crypto ETFs trading. Could new competition push down fees overall? How have crypto ETFs performed so far in 2025? What crypto ETFs do Morningstar consider solid choices for investors? Morningstar considers crypto a speculative or high-risk asset. Will you remind investors why that is? Let’s switch to the SEC’s other recent rule change. It has approved Dimensional Fund Advisors to add an ETF share class to its mutual funds. Can you explain what an ETF share class is and provide a brief history lesson on it? More than 70 asset managers have banded together to get permission to offer dual share class funds. How often does that happen,

Investors’ exuberance is fueling this year’s stock rally, but will key economic risks dampen the market’s mood? The current bull run has lifted stocks from their springtime lows to higher levels in autumn. The artificial intelligence boom is one of the big factors driving it. Meanwhile, the Federal Reserve is dealing with the challenging situation of balancing the weakening job market and stubborn inflation. The Fed cut interest rates for the first time in 2025 in the third quarter, but the path forward from here is less certain. Morningstar Inc Senior Markets Reporter Sarah Hansen discusses seven key market factors you should watch in Q4 2025.Nvidia’s investment of up to $100 billion in ChatGPT creator OpenAI could shatter records. The big bet is helping feed two simple narratives about the AI era, according to Dan Kemp, chief research and investment officer at Morningstar Investment Management Europe. First, there’s too much investment in the technology, and booms tend to lead to busts. Second, AI has chang

It might be tempting to buy dividend stocks with the highest yields, but not all dividend payers are safe. Those big payouts could be signaling that a company’s fundamentals are cracking. Looming financial risks could wreak havoc on income-focused investors’ portfolios. But there are ways to spot dividend traps. Morningstar Indexes strategist and columnist Dan Lefkovitz explains how to avoid the risks.Both healthcare and consumer defensive sectors are lagging the broader stock market this year, but for different reasons.Dan Kemp, chief research and investment officer at Morningstar Investment Management Europe, explored what’s behind it in this week’s Markets Brief column. He says consumer defensive stocks are falling from high valuations, while healthcare stocks are facing significant headwinds like politics and earnings growth. He reminds investors that’s why it’s important to understand not only what you own in your portfolio, but why you own it as well. On this episode:What is a dividend trap, and under w

There’s a tug-of-war between investing in cash and long duration bonds in today’s interest environment. The longer-end of the yield curve may look more appealing since anticipation is building about interest rate cuts. Morningstar’s economics team and market watchers are predicting the Federal Reserve will lower rates more than once in the final months of 2025. What may matter more is the time horizon for your financial goals. Morningstar Inc Portfolio Strategist Amy Arnott has examined why for some investors, sticking with cash is a less risky and better approach.Oracle’s transformation is serving as a reminder that big opportunities to invest in artificial intelligence still exist. The database provider’s expansion into being a cloud provider recently sparked a 42% jump in its stock price. That caught the attention of Dan Kemp, chief research and investment officer at Morningstar Investment Management Europe. The author of the Markets Brief says one of the big takeaways is that stocks like Oracle are making

Exchange-traded fund launches have continued to accelerate, but not every shiny new strategy is worth owning. Good investment strategies can compensate investors with an appropriate return for the risks they take on. What kinds of ETFs are able to deliver over the long term, and which ones fall short? Dan Sotiroff is joining me today to explain the hidden risks in stock ETFs and what investors should look out for. Dan is a senior manager research analyst for Morningstar Research Services and the editor of Morningstar’s ETFInvestor newsletter. Can you talk about the idea that ETFs should be able to compensate investors for the risk they take on? What is an “appropriate level of return”?When looking at the risk and return profiles of ETFs, the term “active risk” often comes up. Can you give us a definition?What kinds of funds have the lowest active risk?Can you give an example of two ETFs that appear similar but take on different levels of risk?You’ve written that “any stock ETF with fewer than 100 holdings is

Nvidia counts several of its Magnificent Seven pals as customers buying its sophisticated AI chips. And the world’s most valuable company says it could earn even more if geopolitical tensions between the US and China eased. But investors are debating whether the market is experiencing an AI boom or AI bubble. How should buy-and-hold investors think about investing in AI—are there any undervalued stocks left today? Dave Sekera is chief US market strategist at Morningstar Research Services and co-host of The Morning Filter podcast.Learn about the new Morningstar Medalist Ratings for semiliquid funds during a live webinar on Morningstar’s YouTube channel on Wednesday, Sept. 10. CEO Kunal Kapoor and ETF and Passive Strategies Research Director Bryan Armour will discuss what investors should know about private assets and the first funds to earn the new rating on the Investors First series.On this episode: Welcome back to Investing Insights, Dave. Nvidia recently wrapped up the Magnificent Seven’s earnings season s

The revenue of US dividend stocks isn’t necessarily made in America. A portfolio of popular dividend-paying stocks is likely exposed to currency or geopolitical risks. That’s due to international revenue exposure: Some US-based companies earn 50% or more of their money outside of the country. A recent analysis of 35 dividend-paying stocks in Morningstar’s DividendInvestor newsletter found several well-known names generate sizable revenue overseas. So, how should investors balance US vs. non-US equity exposure? Morningstar’s DividendInvestor newsletter editor David Harrell explains what investors should know. Learn about Morningstar’s new Medalist Ratings for semiliquid funds during a live webinar on Morningstar’s YouTube channel on Wednesday, September 10th. CEO Kunal Kapoor and Global Head of Manager Research Laura Lutton will discuss what investors should know about private assets and the first funds to earn the new rating on the Investors First series. On this episode:You recently analyzed the internationa

Is the 60/40 portfolio living up to its reputation of resilience this year? The merit of a classic portfolio of 60% stocks and 40% bonds has been a matter of debate in recent years. A diversified 60/40 strategy failed to protect investors in 2022’s broad market crash—in fact, an all-stock portfolio would have held up better. However, a historical deep dive from Morningstar concluded that the tried-and-true approach lessened the pain in almost all of the worst market crashes in 150 years better than an all-stock portfolio. Morningstar Inc Portfolio Strategist Amy Arnott discusses the 60/40 portfolio’s ups and downs and its performance in 2025.On this episode:What is a 60/40 portfolio, and why is it popular? We often hear claims that the 60/40 portfolio is “dead” or obsolete. Why does it get criticized so much? Some of that criticism flared up in 2022. Why was the performance so bad for the 60/40 portfolio that year? Volatility has rocked the markets in 2025. How has the classic investment strategy done so far

It can sometimes seem like there’s an endless number of mutual funds for you to invest in. But not all of them are a right fit for your portfolio—and some aren’t worthy investments at all. A popular feature from Morningstar’s FundInvestor newsletter greatly shrinks the list and can help you home in on the winners. Russ Kinnel is the newsletter editor and senior principal of ratings for Morningstar Research Services. And he’s here to brag about his thrilling funds list. On this episode:Let’s begin with the idea behind the thrilling funds list. How did this get started, and what’s the mission? You start with thousands of fund share classes. How do you narrow the list to a few dozen, and what are you looking for? Thirty-three funds met your high standards and made the cut, and they’re all repeats. Did that surprise you? What kept some funds off this year’s list?A select group of these standouts are making big bets. Let’s start with the only thrilling fund from the diversified emerging-markets category.A trio of

Investors are piling into global gold ETFs for a safe haven from uncertainty. Demand surged in the first half of 2025, according to a new report from the World Gold Council. The industry trade group points to geopolitical turmoil, global trade policies, and higher gold prices for driving interest in these ETFs. The lure of investing in gold ETFs can vary from wanting to diversify a portfolio, hedge against inflation risks, or simply bet on rising prices. Bryan Armour explains what you should know about this speculative asset. He’s the director of ETF and passive strategies research for North America at Morningstar Research Services. On this episode:What are gold ETFs, how many types are there, and how do they work? The World Gold Council says there was strong demand for global gold ETFs in the first half of 2025. How much money has flowed in and out of these ETFs, and what’s your take on that?How have gold ETFs held up against market volatility in 2025? How does it compare with other periods of uncertainty? L

Fixed-income investors, bonds are rising to the occasion and looking attractive again. Their yields are higher, and they have delivered as diversifiers against stock sell-offs this year. Yet, uncertainty has muddled the outlook as the bond market seeks clarity about tariffs, inflation, and interest rates.Paul Olmsted covers US fixed-income strategies for Morningstar Research Services. The senior manager research analyst explains why you need bonds for a balanced portfolio.Let’s start with how you’re thinking about the bond market in 2025. Can you talk about what you have considered key moments this year? As a follow-up, what is at the core of the bond market’s concerns?We’re recording this episode on July 30th around 10:30am. The Fed is expected to announce their interest-rate decision this afternoon. Market watchers are predicting the Fed will hold rates steady. High interest rates pose a risk to bonds. What other risks should investors watch out for now? Some bond investors are seeking a “Powell hedge” due

Daniel Sotiroff, senior manager research analyst for Morningstar Research Services, explains how covered-call ETFs work along with the popular investment’s risks and rewards. On this episode:What are covered-call ETFs, and how do they work?Why are retirees and other income investors drawn to these ETFs? What’s making them so popular this year?Their yields look very high. What is driving them?What types of trade-offs are investors making?ETFs are known to be tax-efficient investments. What are the tax considerations for covered-call ETFs?Should you hold covered-call ETFs in a taxable or tax-deferred account?What’s the optimal retirement account to hold covered-call ETFs?Let’s talk about covered-call ETF performance in 2025. What have you’ve seen?Which covered-call ETFs do Morningstar analysts consider a solid choice for investors, and why? Read about topics from this episode. Should You Own a Covered-Call ETF Like JEPI? Is It Time to Reconsider Dividend Funds? 3 Great ETFs for Jittery Markets Covered-Call and

Amy Arnott, portfolio strategist for Morningstar Inc., discusses how a popular dividend investing strategy works, and who would or wouldn’t benefit from it. On this episode:Let’s focus on when dividend reinvesting works as a strategy and when it does not. Who should consider reinvesting dividends?When shouldn’t an investor reinvest their dividends?Are there any differences between reinvesting dividends in a taxable vs a tax-deferred account?What types of dividends are taxable and non-taxable?This part of the episode includes a correction: A response about which dividends are taxable versus nontaxable should have said, “If you're in a bond fund, most dividends would be taxable unless you’re investing in Treasury bonds, which would normally be exempt from state and local taxes.” We incorrectly said federal taxes.How long you’ve owned a dividend-paying stock matters when it comes to taxes. Can you explain the differences between qualified and non-qualified dividends?What kind of record-keeping does reinvesting d

Michael Field, European Market Strategist at Morningstar Holland, talks about tariff risks for key sectors and European stock performance as market volatility persists. On this episode:President Trump pushed his tariff deadline from July to August. How are global markets reacting to the uncertainty during this tariff watch?The EU is one of America’s largest trading partners. How important is it for these two sides to strike a deal? And what’s at stake if they don’t before the deadline?More than two dozen countries make up the EU. The bloc is seeking lower tariffs for a variety of sectors like aircraft, car parts, and spirits. Talk about that. So, what sectors do you think could be hit the hardest, and which ones could be spared?The EU has presented a united front. However, some countries want a trade deal sooner than later. Can you talk about the debate you’re witnessing in Europe? Trade deals typically take years to be implemented, so any announcement would be a preliminary agreement. If a US investor has Eu

Sarah Hansen, Morningstar Inc’s senior markets reporter, discusses the uncertain outlook for the third quarter and how investors should prepare for market volatility.What Was Surprising From Q2 Market VolatilityMixed Expectations as Trump’s Tariff Deadline ApproachesHow Should Investors Prepare Themselves for Market Volatility?How Tariff Uncertainty Could Affect Company EarningsHow Trump’s Tax and Spending Bill Raises Concerns About Federal DeficitHow the Fed’s Decision on Interest Rates Could Affect the Yield CurveShould Investors Brace for More Market Volatility? Read about topics from this episode.  13 Charts on Q2’s Major Market Rebound Market Volatility: What to Watch in Q2 After Big Swings in Q1 Has the Stock Market Reached Peak Optimism on Tariffs? What Investors Need to Know About Tariffs Tariffs Would Likely Hit These US Stock Sectors the Hardest What Investors Need to Know About the Budget Reconciliation Bill The Deficit is the Biggest Risk for the Bond Market, Says Matt Eagan of Loomis Sayles How M

Two Morningstar research leaders join Investing Insights to discuss whether US investors should consider international stocks and fixed income. They are Dominic Pappalardo, chief multi-asset strategist, and Philip Straehl, chief investment officer for the Americas, for Morningstar Wealth, part of registered investment adviser, Morningstar Investment Management. Key Takeaways:How the Markets Have Been Handling Volatility in 2025Why Economic Data Has Stayed More Stable Than the Markets During VolatilityWhy the Timing and the Scale of the Tariffs Were a Shock to the Market  Will International Stocks Outperform US Stocks?Why Now Is the Time to Check Your International vs US Stock AllocationShould Investors Broaden Their International Stock Exposure?Why Global Consumer Stocks Are Poised to Perform Well During Market Volatility  How Rising Yields in Fixed Income Can Create Opportunities for Investors  How the Shape of the Yield Curves Have ShiftedHow US Investors Can Mediate US Dollar Weakness With International Eq

Lan Tran, manager research analyst for Morningstar Research Services, discusses the benefits and limitations of digital investment advice. Plus, a look at the best and worst robo-advisors of 2025.  What Is a Robo-Advisor?Robo-Advisors vs. Traditional AdvisorsWho Should Use a Robo-Advisor?Benefits of Digital Investment Advice vs. a DIY ApproachDo Robo-Advisors Offer Retirement and Taxable Accounts?Limitations of Robo-AdvisorsRobo-Advisor Fee StructureHow Robo-Advisors Are Taking a Hybrid Approach to Financial AdviceHow Morningstar Rates the Best Robo-Advisors of 2025Do Robo-Advisors Control Security Selection in Your Portfolio?Why Betterment Is One of Morningstar’s Top 3 Robo-Advisors of 2025Why Fidelity Go Is 2025’s Runner-Up for Top Robo-AdvisorWhy Vanguard Remains the Best Robo-Advisor in 2025The Worst Robo-Advisor of 2025Read about topics from this episode.  Are Robo-Advisors Still Worth It?Compare Robo-Advisor Performance & Assess the Best OptionsThe Best Robo-Advisors of 2025Should You Be Using a Rob

Bryan Armour, director of ETF and passive strategies research for North America at Morningstar Research Services, discusses private equity ETFs and private credit ETFs. Armour also previews his session at the 2025 Morningstar Investment Conference featuring two ETF experts.Hear From Experts on Private Asset ETFs at the 2025 Morningstar Investment Conference How Do Private Equity and Private Credit Investments Work?Why Access to Private Markets Is ExpandingHow Private Assets Pose a Challenge in ETFsPrivate Asset ETF Performance: PRIV and XOVRWhat Does Morningstar Think of Private Asset ETFs?How Firms Are Pricing Private Portfolio SharesCan Private Credit ETFs and Private Equity ETFs Improve Diversification?What Investors Stand to Gain or Lose in Private MarketsWhy Private Equity and Private Credit ETFs Are Here to Stay Read about topics from this episode.  Register for the Morningstar Investment Conference 2025How Private Assets Impede the Benefits of ETFsNew Private Credit Funds Want Your Money. Here’s Why Yo

Amy Arnott, Morningstar Inc. portfolio strategist, discusses the success of the 60/40 portfolio and how diversification is paying off during market volatility this year.How Diversification Has Held Up Against Market Volatility in 2025Which Asset Classes Have Been Strong Diversifiers in 2025?Which Asset Classes Have Struggled as Diversifiers?How Have US vs. Non-US Stocks Performed in 2025?Can Investors Still Turn to Fixed Income During Market Volatility?How Correlations Between Asset Classes Is Key to Diversification60/40 Portfolio vs. Diversified PortfolioWhy the 60/40 Portfolio Outperformed in the Long TermThe Best Ways to Diversify Your Portfolio During Market VolatilityWhat Hasn’t Held Up as Portfolio Diversifiers?How Tough Macro Environments Affect Diversification PatternsKey Takeaways   Read about topics from this episode.  Diversification Landscape: Building Diversified Portfolios 3 Assets That Might Not Diversify as Well as You Think Portfolio Diversification: Answers to Your Questions The Best Ways to

David Harrell, editor of Morningstar’s DividendInvestor newsletter, talks about the dividend stocks that earned a spot on the newsletter’s annual Dividend Growers list. Harrell also discusses how to approach dividend investing.What Qualifies a Dividend Stock to Be on the DividendInvestor’s Annual Dividend Growers List?13 Elite Companies With Fast-Growing DividendsThis part of the episode includes a correction: In an earlier version of this podcast, a section about companies included on the DividendInvestor’s DividendGrowers list and a follow-up question about companies that weren’t included was inadvertently cut during production. The episode has been updated to restore this information.Why These Companies Failed to Make the Dividend Growers List in 2025Which Companies Were ‘Near Misses’ for the Dividend Growers List?Why Are Higher-Yielding Dividend Stocks Absent?Why Dividend Growth Investing Can Benefit Investors With a Longer Time Horizon  Is Double-Digit Dividend Growth Sustainable for Companies?Which Comp