| Target Retirement Funds |
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These funds are managed for investors planning to retire—or
to begin withdrawing substantial portions of their investments—in
a particular year. The funds follow an asset allocation strategy
that grows more conservative as the target date nears.
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| Tax-Adjusted
Return (Funds) |
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| Taxes are a significant consideration for many investors who own mutual funds in taxable accounts. When a fund receives a stock dividend or interest from a bond, it will divide that dividend among its shareholders, and when a fund sells a security at a gain, it will divide that capital gain among its shareholders. Investors pay taxes on these dividends and capital gains, and they may also pay taxes on capital gains when they sell the fund.
Investors can compare the total return, load-adjusted return, and after-tax returns for a fund to understand how loads and taxes affect the performance of the fund. Investors can also use after-tax returns to compare one fund to another.
Tax-adjusted returns are adjusted for taxes and sales charges and follow the SEC guidelines for calculating returns before sale of shares. The tax-adjusted return shows a fund's annualized after tax total return for the five- and 10-year periods, excluding any capital-gains effects that would result from selling the fund at the end of the period. To determine this figure, all income and short-term capital gains distributions are taxed at the maximum federal rate at the time of distribution. Long-term capital gains are taxed at a 20% rate. The after tax portion is then reinvested in the fund. State and local taxes are ignored, and only the capital gains are adjusted for tax-exempt funds, as the income from these funds is nontaxable.
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| Tax Cost Ratio
(Funds) |
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The Morningstar Tax Cost Ratio measures how much a fund's annualized return is reduced by the taxes investors pay on distributions. Mutual funds regularly distribute stock dividends, bond dividends and capital gains to their shareholders. Investors then must pay taxes on those distributions during the year they were received.
Like an expense ratio, the tax cost ratio is a measure of how one factor can negatively impact performance. Also like an expense ratio, it is usually concentrated in the range of 0-5%. 0% indicates that the fund had no taxable distributions and 5% indicates that the fund was less tax efficient.
For example, if a fund had a 2% tax cost ratio for the three-year time period, it means that on average each year, investors in that fund lost 2% of their assets to taxes. If the fund had a three-year annualized pre-tax return of 10%, an investor in the fund took home about 8% on an after-tax basis. (Because the returns are compounded, the after-tax return is actually 7.8%.)
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| Tax Managed Funds |
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| These funds are managed with a sensitivity to
tax ramifications. They try to minimize taxable distributions
through various methods. |
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| Tax Rate
(Stocks) |
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This represents the percentage of earnings before taxes that
are paid in taxes. It is calculated by dividing earnings before
taxes by taxes paid. The tax rate measures a company's tax
efficiency.
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| Ticker |
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This symbol represents a fund's or a company's stock on
an exchange. The ticker can be the most dependable way to
identify a security, because it is less likely to change than
a security name. Ticker symbols for companies listed on the
NYSE or AMEX are up to three letters long. Companies traded
on the Nasdaq National Market or Nasdaq Small-Cap exchanges
commonly consist of four to five letters. Tickers for multiple
share classes of stocks are denoted with a period followed
by the share class letter. For example, the ticker symbol
for the A shares of j.M. Smucker is SMJ.A.
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| Total Cost Projections
(Funds) |
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| Found in a fund's prospectus, these figures show how much an investor would expect to pay in expenses-sales charges (loads) and fees-over the next three, five, and 10 years, assuming a $10,000 investment that grows by 5% per year with redemption at the end of each time period. Total cost projections are commonly based on the past year's incurred fees or an estimate of the current fiscal year's fees, should a portion of the overall fee structure change as of the printing of the fund's most current prospectus. Newer funds are required to print total cost projections for one- and three-year time periods only since longer-term projections may not be possible to estimate. |
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| Total Revenue
$ (Stocks) |
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| Revenue is a measure of how much money a company
has brought in within a given period. It's most useful in the
context of revenue figures for previous years and quarters,
but total revenue by itself is one common way to measure the
size of a company. |
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| Total Shares
(Stocks) |
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This figure shows the company's weighted-average shares outstanding
each year. For foreign companies, shares outstanding are adjusted
by the ADR share ratio.
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| Trailing 12
Month Yield (Funds) |
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Trailing 12 Month Yield (%) is the percentage income your portfolio returned over the past 12 months. It is calculated by taking the weighted average of the yields of the stocks and funds that compose the portfolio. Dividend yield for the underlying stocks and funds is calculated by dividing the total dollar amount the security paid out as income to shareholders by the share price. Note that for mutual funds, the dollar income value includes interest income from fixed-income securities, dividends from stocks, and realized gains from currency transactions. See also SEC Yield
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| Trailing Return
+/- Category (Funds) |
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This data point indicates how a fund has performed relative to its peers over the time period shown. Using relative returns such as these is useful because they compare a fund to an appropriate peer group and help remove performance factors that are generally beyond a manager's control. See also Annual Return
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| Trailing Return
% Rank in Category (Funds) |
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| This is the fund's total-return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favorable) percentile rank is 1, and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. See also Annual Return |
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| Turnover Ratio
(Funds) |
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| This is a measure of the fund's trading activity,
which is computed by taking the lesser of purchases or sales
(excluding all securities with maturities of less than one year)
and dividing by average monthly net assets. A turnover ratio
of 100% or more does not necessarily suggest that all securities
in the portfolio have been traded. In practical terms, the resulting
percentage loosely represents the percentage of the portfolio's
holdings that have changed over the past year. A low turnover
figure (20% to 30%) would indicate a buy-and-hold strategy.
High turnover (more than 100%) would indicate an investment
strategy involving considerable buying and selling of securities.
Morningstar does not calculate turnover ratios. The figure is
culled directly from the financial highlights of the fund's
annual report. |
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| % U.S. Stock
(Funds) |
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| The percentage listed under the heading Stocks
incorporates only the portfolio's straight common stock holdings.
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| Volume
(Stocks) |
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| This represents the number of shares traded on
the current trading day. |
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| Yield
(Stocks) |
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This is the annual dividend per share divided by the current
stock price and displayed as a percentage.
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