To adjust an equal-weight momentum ETF portfolio (MTUM + JMOM + FDMO + VFMO), we could’ve the ETF exposures by 20% and allocated to a mix of the sector ETFs to.
Doing so would’ve added ~250bp in the last few months.
These new Morningstar quantitative ratings are hot garbage.
I’m getting negative scores for managing 10 funds and having $0 invested in my own fund.
Neither of those are true.
The fact this was released tells me M* still doesn’t realize the influence it has on the industry.
And that’s despite the fact there are papers documenting that changes in Morningstar’s rating methodologies have literally changed the very structure of cross-sectional returns in the market.
That’s POWER.
“But Corey, your SAI says you don’t have any money in your fund!”
First, I am an owner/operator. Different situation. Second, maybe I have it in another vehicle.
But I don’t. I literally have it in the fund. It’s just that the SAI is updated ANNUALLY.