Morningstar Advisor - Fall 2008 - (Page 62)

Investments á la Carte Consumer Confidence Thirteen investment vehicles that offer strong plays on consumer spending. Growth S Apple, Inc. AAPL Vanguard Growth VUG Baron Small to Mid-Cap Equity Apple’s iPods are great, but the huge potential in its iPhones and computers makes this a great play on the future of technology. The index that it tracks is a benefit to investors here, as are the very attractive expense ratio and holdings that have lots of potential. Casinos, restaurants, and specialty retailers are big in this portfolio. That’s a good thing, because it plays to manager Ron Baron’s expertise. Consumer-related stocks account for a big part of this portfolio, and while there’s been recent pain, the future could be bright. This firm’s focus on the low end of the tax-preparation spectrum is wellthought-out, and while declining volume is concerning, the price is right. John Rogers’ strategy has taken a hit in recent years, but his consumerleaning ways could soon pay off for investors. Stability and predictability are the watchwords here, so don’t expect a flashy or faddish portfolio, just one that’s consistent and solid. The geography of Southern’s operations makes it a rare utility capable of higher growth than the norm. A strong balance sheet doesn’t hurt, either. A low expense ratio is key here, as it allows much of the dividend income created by this ETF to flow back to investors. The slide in consumers stocks around the globe has provided plenty of opportunity, and solid management means that we can trust their choices. The demand for environmental services isn’t likely to waver, and Veolia does business in both developed and emerging markets. Low expenses and a large-cap focus make this ETF a bit easier to swallow than investing directly in emerging-markets ADRs. This tax-efficient fund packs plenty of value in its growth-and-value portfolio, though expenses are relatively high. ETF SA Value MF Oakmark Select OAKLX Jackson Hewitt JTX Ariel Mid Cap S SA Income MF Eaton Vance Income Fund of Boston EVIBX Southern Company SO iShares Dow Jones Select Dividend DVY S ETF International MF Artisan International Value ARTKX Veolia Environment VE BLDRS Emerging Markets 50 ADR Index ADRE S ETF Non-Market Correlated ETF PowerShares Dynamic Large Cap Value PWV 62 Morningstar Advisor Fall 2008

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Morningstar Advisor - Fall 2008 Contents New on MorningstarAdvisor.com Letter from the Editor Contributors Inbox Are You Preparing for Higher Taxes? State of Financials Oracles of Alabama Investment Briefs Managers’ Investment Secrets Revealed Conformity Becomes a Growing Concern at American Gimme Shelter Location, Location, Location Rooted in Buffett, Going for Growth Keeping Little Company Away from the Numbers Consumer Confidence What about Natural Gas? TIPS to Beat Back Inflation Investing in Hidden Assets Funds That Have an Edge Come Tax Time Mutual Fund Analyst Picks 50 Most Popular Equity ETFs Undervalued Stocks Most Popular Variable Annuities New at Morningstar One for You, 19 for Me

Morningstar Advisor - Fall 2008

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