Morningstar Australasia has expanded its research activities with the inclusion of qualitative analyst research on domestically offered exchange-traded funds (ETFs) in its range of services.
The inaugural ETF research reports will cover 96 per cent of the total assets allocated to the local ETF market as at 31 July of this year. Specifically, they will cover ETFs provided by iShares, Vanguard, and State Street, or 13 funds in total.
"Australian investors now have nearly 40 exchange-traded funds to choose from. By providing comprehensive, independent analyst research, we can help investors and their advisers better evaluate the relative strengths and weaknesses of ETFs and how they should be used most effectively in portfolios," Morningstar co-head of fund research Tim Murphy said.
"Additionally, the shift from commission to fee-for-service advice businesses in Australia will make ETFs a more attractive proposition for advisers to recommend to their clients," he said.
As with other Morningstar research reports, the ETF qualitative papers will include recommendations ranging from Highly Recommended at the top end of the scale to Avoid at the lower end.
The new research service will be made available via the organisation's Adviser Research Centre, Adviser Workstation, and the Morningstar.com.au retail investor website.
In addition, the research facility will also be made available on the Morningstar Direct service for institutional investors.
The research will be updated periodically and will be aided by educational material on the effective use of ETFs in a portfolio, which Morningstar will also publish.
