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Morningstar and iShares Join Forces to Lead the Industry in Style Investing
New Morningstar Broad Style Indexes to be tracked by iShares ETFs Enhanced iShares ETFs will reflect iconic Morningstar Style Box™, and are designed to
About this update from Morningstar, Inc.
[{"type":"text","content":"\nNew Morningstar Broad Style Indexes to be tracked by iShares ETFs\n\nEnhanced iShares ETFs will reflect iconic Morningstar Style Box™, and are designed to deliver innovation, quality, and value\n\n CHICAGO & NEW YORK--(BUSINESS WIRE)--\nIn a commitment to reinvent the $3.0 trillion style investing market for U.S. equities, Morningstar and iShares are joining forces. Morningstar, Inc. (Nasdaq: MORN) is a leading provider of independent investment research and has been a leader in style analysis and investing since the creation of the Morningstar Style Box™ in 1992. iShares is the leading global issuer of ETFs, with more than $2.5 trillion in assets under management.\n\nIn January 2021, Morningstar will formally launch a new index family — the Morningstar Broad Style Indexes℠— designed to more accurately represent the size and style dimensions of the U.S. equity market. The underlying data and methodology of the Morningstar Broad Style Indexes are designed to be consistent with the Morningstar Style Box, making the Morningstar Broad Style Indexes a natural complement for informing style-related investment decisions. As part of this initiative, the nine funds in the iShares Morningstar U.S. Equity Style Box ETF suite will begin tracking the new Morningstar Broad Style Indexes.1 The Morningstar Style Box will not experience changes as part of the launch of the Morningstar Broad Style Index family.\n\n“Style investing is the bedrock of many investors’ portfolios. Inspired by more than 30 years of independent research and analysis, the new Morningstar Broad Style Indexes aim to empower investors through a more flexible and intuitive framework for building U.S. equity portfolios,” said Ron Bundy, president, Morningstar Indexes. “As we look to expand our set of style indexes in the new year, we are proud of our enhanced relationship with iShares.”\n\nAs of November 2020, $753 billion in assets are invested in U.S. value or growth index funds, with another $284 billion globally.2 In addition, active managers continue to search for alpha in styles, with $2.2 trillion of actively managed assets benchmarked against value or growth indexes3 in the United States. Style investing is a well-established discipline for investing in U.S. equities. Decades of academic research and investor experience have confirmed the distinct performance charac...