Morningstar Risk Rating

The Morningstar Risk Rating is a system used by Morningstar, Inc. to assess the risk of a mutual fund or exchange-traded fund (ETF). The rating is based on a number of factors, including the fund's historical volatility, its asset allocation, and its investment style.

The Morningstar Risk Rating is a useful tool for investors who are looking for a way to compare the risk of different funds. The rating can help investors to identify funds that are appropriate for their risk tolerance.

The Morningstar Risk Rating is a qualitative rating, which means that it is based on the opinion of Morningstar's analysts. The rating is not based on any mathematical formula.

The Morningstar Risk Rating is assigned to each fund on a scale of 1 to 5, with 1 being the lowest risk and 5 being the highest risk. The rating is updated every six months.

The Morningstar Risk Rating is a valuable tool for investors, but it should not be used as the sole factor in making investment decisions. Investors should also consider other factors, such as the fund's historical performance, its investment objectives, and its fees.

Here are some additional details about the Morningstar Risk Rating:

* The rating is based on a number of factors, including the fund's historical volatility, its asset allocation, and its investment style.
* The rating is assigned to each fund on a scale of 1 to 5, with 1 being the lowest risk and 5 being the highest risk.
* The rating is updated every six months.
* The Morningstar Risk Rating is a valuable tool for investors, but it should not be used as the sole factor in making investment decisions. Investors should also consider other factors, such as the fund's historical performance, its investment objectives, and its fees.