The products leverage forward-looking insights from Morningstar equity analysts in order to provide a high degree of thematic purity.
This differs from lower-touch thematic index construction approaches, such as relying on historical revenue figures or keyword searches across public filings. However, due to the index’s transparent, rules-based construction methodology, it also differs from strategies that employ more “active” approaches to stock selection.
In the US, 77% of assets under management in the large cap core space are passively managed. In the emerging markets, passively managed assets account for just 37% of the total5.