Morningstar’s fund analysts assigned a Gold rating to just one fund in the past few weeks: DFA US Small Cap I. On the flip side, the research shop doled out negative ratings to Two Nuveen funds: Nuveen Tradewinds Global All-Cap A and Nuveen Tradewinds Value Opportunities A.
According to Morningstar’s analysts, DFA US Small Cap's unique twist on passive investing sets it apart from its competition. “The fund doesn't have to adhere to an index, and stocks that meet its market-cap criteria can be substituted easily for one another because DFA believes they all have the same return profile,” they wrote. “This wide opportunity set and small individual positions also enable a higher asset base without its being capacity constrained.”