With the proliferation of ETF options, the Morningstar ETF Quickrank is a great place to start your search for investment ideas. The ETF Quickrank, which, as the name suggests, quickly ranks ETFs, lets you sort through the ETF universe using criteria such as past performance, sector weightings and fees. You can also search by Morningstar Fund Categories.
You can find the ETF Quickrank on both the Tools and ETF sections on Morningstar.co.uk, or click here. Simply click on a column header to rank the full ETF universe a certain criterion. For example, if you only want to see which ETFs have a 5-star Morningstar rating, click the Morningstar Rating column header and ETFs will be ranked from 5-stars to 1-star offerings. If you prefer to narrow your search, you can start by selecting which exchange you want your ETF results to be traded on, such as the London Stock Exchange. You could narrow it further by Morningstar category, ETF providers, or search for specific ETF names or tickers.
Let’s say I’m interested in finding an ETF that’s listed on the LSE that would provide me with exposure to global emerging markets equity, and has a track record that’s secured it a 5-star rating from Morningstar. Here’s how I find out what my options are:
- Open the ETF Quickrank
- Select ‘London Stock Exchange’ from the exchange options
- Select ‘Global Emerging Markets Equity’ from the Morningstar category options
- Click ‘Search’
- Click the Morningstar Rating column header to rank the best performers first
Running the above search instantly shows me that none of the ETFs in this category currently hold a 5-star rating, which isn’t too surprising given the torrid year that emerging markets had in 2011. There are, however, four distinct ETFs that meet my needs and have a 4-star rating. I can also see that the cheapest, by a whisker, is CS ETF (Lux) on MSCI emerging Markets (GBP). By clicking on this ETF, I see that it returned negative 19% in 2011 but has already recovered 9% so far this year. As a Premium member , I can also read Morningstar’s research on the fund, which tells me that this is suitable as a core portfolio holding. The research also lists suitable alternatives should I wish to look elsewhere.
Returning to the Quickrank results, I can add this ETF—and others—straight to my saved portfolio. Premium users can then X-ray the investment's impact on their portfolio by clicking the relevant buttons at the top of the Quickrank.
Why not take our ETF Quickrank for a spin and see what you discover?
