Style allocation is a concise view of a portfolio’s growth/blend/value and large/mid/small cap positioning, based on Morningstar® style box. To display this view, click on Allocation ->Stock Style
Value vs. Growth
- Value style include stocks with a price that is relatively low, given the anticipated per-share earnings, book value, revenues, cash flow, and dividends that the stock provides to investors.
- Growth style include stocks whose per-share earnings, book value, revenues, and cash flow are expected to grow quickly relative to other stocks in the same scoring group.
In general, a growth-oriented fund will hold the stocks of companies that the portfolio manager believes will increase earnings faster than the rest of the market. A value-oriented fund contains mostly stocks the manager thinks are currently undervalued in price and will eventually see their worth recognized by the market. A blend fund might be a mix of growth stocks and value stocks, or it may contain stocks that exhibit both characteristics.
Portfolio style box
The weights in the portfolio’s style box are calculated by aggregating the style box weights of the portfolio’s constituents (funds, ETFs, stocks).
- The average style is a weighted average of the portfolio's constituent weights.
- The weights in the box add to 100%. They are based on the percentage of portfolio analyzed (which is the total weight of stocks in the portfolio).
The style view is optional in the PDF report. To add this view to the report, select Add Content ->Stock style
Morningstar style box documentation
Note that Morningstar does not provide style box information for funds with an equity allocation that is less than 50%.