Morningstar's Investment Finder

Once you've selected a target model to diversify your positions across the different market segments, you're ready to start using Morningstar's Investment Finder to diversify your portfolio within each market segment. Morningstar's Investment Finder offers you an easy way to search for new investments that can help you achieve investment variety and address company-specific risk within your portfolio.

While you use this tool, keep in mind that your goal is to diversify your investments within each market segment. To achieve this goal, you may want to think about:

  • Choosing investments in different market sectors
  • Investing in different size companies (large, mid and small)
  • Finding investments with different styles (core, growth or value)
  • Not concentrating too heavily on one investment within a market segment
  • For fixed income, investing in different time frames (short, mid or long) or quality

The Investment Finder is made up of four sections, and details about each section are provided below.

Add/Remove Criteria

To help you find investments that match your objectives, you can add or remove search criteria from the left column so your results include only the investments in which you're most interested.

The different criteria that can be added and removed are grouped into different sections. The first two sections – market segment and asset type – allow you to customize your search within each market segment and asset type so you can find the stocks, exchange-traded funds and mutual funds that fit the needs of your portfolio.

The next four sections correspond directly to the tabs along the top of the primary section: Snapshot, Performance & Price, Fundamentals & Risk and Portfolio. Click any of these section headers to see the different criteria offered in each section and customize your search to find investments that fit your personal criteria. Each criterion you add will automatically be applied to your search results and narrow the list you see.

Read Investment Finder Market Data to learn more about any of the search criteria you want to use.

Search Results

When the Investment Finder launches, it auto-populates with the first 15 results in the market segment you're searching. So, if you click Find New Investments next to the U.S. Large Cap category, the primary section of the Investment Finder will automatically show you the first 15 U.S. Large Caps in alphabetical order.

To change the sorting order at any time, click a column header to sort according to that column's criteria. For example, you could click Morningstar Rating if we wanted to see your search results listed in order of their ratings, or YTD% if you'd rather see your results in order of their year-to-date returns.

When you click the purple Add button next to any investment, you're adding that investment to the Selection Basket (see #4).

Real-Time Market Data

The four tabs along the top of Morningstar's Investment Finder offer you on-the-spot, real-time market data for any of your search results. The tabs across the top allow you to see a quick Snapshot of your search results, take a look at Performance & Price characteristics, evaluate Fundamentals & Risk data and see overall Portfolio and investment style characteristics of any security.

Read Investment Finder Market Data to learn more about any of the data displayed for your search results.

Selection “Basket”

When you find an investment that matches you financial goals, click the purple Add button next to that investment. This adds the investment you selected to the lower portion of Morningstar's Investment Finder labeled My Selections and creates a “basket” of all the investments you want to save. Once you've finished looking for investments, you can add each of the items in your basket to a hypothetical portfolio, called your action plan model – just click the Save to Portfolio button. This will save the entire basket you created to your action plan model, where you can analyze your investments and determine which trades you want to place.

After clicking Save to Portfolio, you'll be taken to the Allocation Tool to choose the exact dollar or percent amount of your portfolio you want allocated to each investment.

Next Step: Highlight potential gaps in your portfolio using our X-ray tool.

Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market.

Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) or mutual fund carefully before investing. A prospectus contains this and other information and should be read carefully before investing. A mutual fund prospectus may be ordered through www.scottrade.com or through a Scottrade branch office. An ETF prospectus must be obtained from the issuer.

The information provided should not be construed as a recommendation or investment advice.