The expense ratio is the annual fee that all funds or ETFs charge their shareholders. It expresses the percentage of assets deducted each fiscal year for fund expenses, including 12b-1 fees, management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund.

A fund's Expense Ratio receives a passing score if its expense ratio is in the lowest quintile of that fund's category.

This is a proprietary Morningstar data point. An assessment of the variations in a fund's monthly returns, with an emphasis on downside variations, in comparison to similar funds.

Any risk level lower than High receives a passing grade.

The performance measure compares a fund's performance to that of its benchmark over the period of the longest serving manager's tenure.

A fund's Performance Measure receives a passing score if that fund's return is greater than its benchmark return over the tenure of the longest serving manager. If the tenure of longest termed manager is less than 5 years, the fund receives a failing grade.

Morningstar evaluates funds based on three key pillars — Process, People and Parent — which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analysts assign a rating of High, Above Average, Average, Below Average, and Low to each pillar. The People pillar asks the question "What is Morningstar's assessment of the manager's talent, tenure, and resources?"

The People pillar receives a passing score if the management receives a score of High or Above Average.

The amount of money a fund manager(s) invests in his or her fund.

A Manager Rating receives a passing score if the manager has 500k or more invested in his/her fund.

Morningstar evaluates funds based on three key pillars — Process, People and Parent — which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analysts assign a rating of High, Above Average, Average, Below Average, and Low to each pillar. The Parent pillar asks the question "What priorities prevail at the firm? Stewardship or salesmanship?"

The Parent pillar receives a passing score if the firm receives a score of High or Above Average.