Definition of style box

Morningstar's compact graphic representation of the two variables that comprise a mutual fund's or exchange-traded fund's holdings and risk: its investment methodology and the size of the companies in which the fund invests. The Domestic-Equity Style Box is a nine box grid resembling a tic-tac-toe square. The vertical boxes indicate whether the stocks the fund holds are small-, medium-, or large-capitalization. The horizontal boxes indicate whether the fund's investment methodology is value-based, growth-based, or a blend of value and growth. A fund's location on the matrix provides a quick take on the fund. The Style Box also helps an investor identify the different funds that meet his or her objectives. By going to the www.morningstar.com web site, an investor can simply click on a Style Box square to get a list of the funds meeting desired capitalization and methodology criteria. Morningstar also has an International-Equity Style Box and a Fixed-Income Style Box. The latter uses variables of interest-rate sensitivity (short, intermediate, and long duration) and credit quality (high, medium, low).