Answer: Investors can find a fund's best-fit index on Morningstar.com by clicking on the Ratings and Risk tab on the gray toolbar at the top of a fund's quote page and scrolling down to the Best Fit Index. The market index that shows the highest correlation with a fund over the most-recent 36 months, as measured by the highest R-squared.Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. Best Fit Alpha. This is the alpha of the fund relative to its Best Fit Index. Alpha is a measure of the difference between a fund's actual returns and its expected performance given its level of Best Fit Beta. This is the beta of the fund relative to its Best Fit Index. Beta is a measure of a fund's sensitivity to market movements. The beta of the market is 1.00 by definition. The best fit Alpha represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months based on the best fit R-squared. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. The best fit R-squared score represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. Learn about FIT with our data and independent analysis including price, star rating, valuation, dividends, and financials. Start a 14-day free trial to Morningstar Premium to unlock our take on FIT.
The best fit R-squared score represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes.
Answer: Investors can find a fund's best-fit index on Morningstar.com by clicking on the Ratings and Risk tab on the gray toolbar at the top of a fund's quote page and scrolling down to the Best Fit Index. The market index that shows the highest correlation with a fund over the most-recent 36 months, as measured by the highest R-squared.Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. Best Fit Alpha. This is the alpha of the fund relative to its Best Fit Index. Alpha is a measure of the difference between a fund's actual returns and its expected performance given its level of Best Fit Beta. This is the beta of the fund relative to its Best Fit Index. Beta is a measure of a fund's sensitivity to market movements. The beta of the market is 1.00 by definition. The best fit Alpha represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months based on the best fit R-squared. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. The best fit R-squared score represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes.
Best Fit Index. The market index that shows the highest correlation with a fund over the most-recent 36 months, as measured by the highest R-squared.Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes.
These involve comparing RBSA with style clusters and best fit indices. Recent Morningstar, for our Mutual Funds Portfolio Returns data base and US style.
U.S. News has ranked more than 4,500 ETFs to help you make clear and confident financial decisions. Rankings & Advice Use the Best Fit ETF rankings to identify large, liquid funds that perform
Best Fit Beta. This is the beta of the fund relative to its Best Fit Index. Beta is a measure of a fund's sensitivity to market movements. The beta of the market is 1.00 by definition. The best fit Alpha represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months based on the best fit R-squared. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. The best fit R-squared score represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes.
Morningstar recalculates the best-fit index in-house on a monthly basis. Example: Kemper Small Cap Equity Fund shows the Russell 2000 as its best-fit index. The best-fit R-squared in this case is 92, which means that 92% of movements in Kemper Small Cap Equity are comparable to movements in the Russell 2000.
The best fit R-squared score represents the market index that shows the highest correlation between a fund and an index over the most-recent 36 months. To find the best fit R-squared, Morningstar regresses a fund's monthly excess returns against the monthly excess returns of several well-known market indexes. Learn about FIT with our data and independent analysis including price, star rating, valuation, dividends, and financials. Start a 14-day free trial to Morningstar Premium to unlock our take on FIT. Ratings and Risk Morningstar Ratings After determining the best-fit index, Morningstar deducts the current return of the 90-day T-bill from the total return of both the fund and the best-fit index. The difference is called the fund's excess return. The exact mathematical definition of alpha that Morningstar uses is listed below. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information.