Applicable to a subset of U.S. mutual funds, Find Similar Funds compares an investment with all other funds in its Morningstar category. In the results, we only show the oldest share class of a fund.
The portfolio similarity score is determined by comparing various attributes of each fund's most recent portfolio. The exact attributes vary depending on the type of fund being compared. For domestic stock funds, for example, we look at the following portfolio data: asset allocation, weightings in top three sectors, percent of assets in top-10 holdings, fund turnover, median market cap, and P/E. Funds are scored from 0 to 10, with 10 being the most similar. Funds with incomplete portfolio data may have their portfolio similarity score excluded or penalized by these calculations.
The performance similarity score is determined by comparing the past three years of monthly returns. Each fund's performance is compared with the performance of all other funds in that same investment category. This score ranges from 0 to 10, with 10 being the most similar. Funds with incomplete performance data are given a performance similarity score of 0.
We combine the portfolio and performance similarity scores to arrive at the overall similarity score.
Note: The similarity scores provided in the Find Similar Funds tool are unrelated to the similarity score provided in the Holdings Similarity chart and Holdings Comparison report. Find the logic for that similarity score in the help topics for that chart and report.