Fund Spy

The 10 Biggest Funds to Get Downgrades in 2018

Russel Kinnel
 A version of this article was originally published in the October 2018 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website.  

Last week I shared our biggest upgrades with you, so that means this week it's time to get sad and look at the largest funds whose Morningstar Analyst Ratings were downgraded this year. Sorry. (Please click through to the analysis to get the whole scoop on these funds.)

 Vanguard Short-Term Investment-Grade (VFSTX) and  Vanguard Intermediate-Term Investment-Grade (VFICX) 
Downgraded to Bronze from Silver
Do Vanguard's bond managers matter? You bet. Low fees help, but management is still important. Greg Nassour was these funds' lead manager and co-head of Vanguard's U.S. corporate-bond desk. He left in April. Vanguard appeared to be surprised by the move. It named two comanagers while it looks for a permanent replacement.

Russel Kinnel has a position in the following securities mentioned above: HACAX. Find out about Morningstar's editorial policies.