Morningstar’s 3×3 “style box” for stock mutual funds has always been a useful tool for showing what portion of the fund is allocated to each category of stocks (e.g., large-cap growth, small-cap value, etc.). When the style box was originally created, the allocation of the overall stock market was by definition one-third growth, one-third blend, and one-third value. However, due to the explosive returns of large-cap growth stocks over the last several years, now even a “total stock market” index fund is categorized as a large-cap growth fund.
Allan Roth discusses the topic, as well as an update that Morningstar will be making in the near future:
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