One new actively managed PGIM high-yield exchange-traded fund and a passively managed short-term bond ETF from Dimensional Fund Advisors were among the new additions to Morningstar Manager Research’s latest list of overlooked or emerging fund managers and strategies in the first half of 2026.
In our latest round of Morningstar Prospects, we added six strategies with strong management teams and sound approaches. We also graduated one strategy to full coverage because of our increased conviction in its ability to outperform and dropped two strategies, leaving a total of 52 on the Morningstar Prospects list as of July 2026.
Here’s a breakdown of the changes by asset class:
Equity
Additions
After we added 13 new equity strategies to the Prospects list in January 2026, we had two additions, one drop, and one graduate in July 2026.
The two newcomers were Great Lakes International Value Equity and Great Lakes Global Value. Manager Raymond Wicklander and his three analysts aim to win by not losing. The group seeks stable, competitively advantaged companies trading at reasonable valuations, which has resulted in strong downside protection during market selloffs.
Graduates
Ashmore Emerging Markets Equity EMFIX graduated to full coverage and earned Above Average People and Process ratings. Manager Dhiren Shah and his collaborative team of emerging-market specialists have impressed us. The group works closely together, and Shah can tap the firm’s on-the-ground resources for unique insights into various regions across the world. He and his team also effectively blend top-down insights and rigorous bottom-up research to create a unique portfolio, which has led to strong results since Shah’s 2017 start as manager.
Drops
We dropped Parametric Hedged Equity ETF PHEQ from the Prospects list in July 2026. We struggled to gain conviction in the strategy’s team and approach. The ETF’s muted flows and relatively small asset base of roughly $140 million at the end of June 2026 didn’t help, either.
Fixed Income
Additions
After three additions to the fixed-income Prospects list in January 2026, we added four more, and dropped one in July 2026.
The capabilities of the actively managed PGIM High Yield Bond ETF PHYL, which launched in September 2018 and had $1.3 billion in assets in June 2026, rival the industry’s best. The unique team setup in which experienced managers research securities with analysts to facilitate quick decision-making is a big part of its edge.
GMO Emerging Country Debt GMDFX, which has been among the emerging-markets bond Morningstar Category’s top performers since manager Tina Vandersteel became lead manager in 2015, is compelling. Rather than relying on country allocation, Vandersteel and her team seek undervalued securities through bottom-up research, exploiting pricing differences between benchmark-eligible bonds and adjacent instruments with similar sovereign risk.
Since the passive Dimensional Short-Duration Fixed Income ETF’s DFSD November 2021 inception, it has garnered roughly $7 billion in assets.
Lastly, Intrepid Income ICMUX posted top-decile results in its multisector bond category over the trailing 10-year period through June 2026.
Drops
We dropped American Century High Income AHIIX from Prospects in July 2026 because its approach didn’t stand out, and there are more compelling options in the high-yield bond category.
Allocation
After adding three allocation strategies to the Prospects list in 2026’s first half, we made no changes to the list in July.