At the top tier, the stock universe is divided into three major economic spheres, or Super Sectors: Information Economy, Service Economy, and Manufacturing Economy. Next, each of these Super Sectors is further sub-divided into four specific groups, which collectively form the 12 Morningstar Sectors. Finally, companies are mapped to one of the 129 unique Morningstar Industries.
The result is a unified system that classifies all securities by the company’s primary type of business. Using Morningstar Sector Indexes, investors can quickly discern similarities and differences between funds or portfolios and evaluate investments at the sector or industry level. |
