Morningstar Advisor - Summer 2008 - (Page 84)

By the Numbers: ETFs 50 Most Popular Equity ETFs Morningstar’s analysis of exchange-traded funds now harnesses the rigorous, bottom-up research that our 100-plus equity analysts conduct in order to estimate the fair value of stock ETFs. By comparing our fair value estimate for an ETF’s portfolio with the fund’s market price, we can better gauge whether an ETF is cheap, dear, or reasonably priced. In so doing, we can help you profit from inviting opportunities as they arise. The table lists the 50 most popular equity ETFs, ranked by assets under management. A Morningstar Valuation Rating of Undervalued means the ETF is trading at a significant discount to our estimate of its intrinsic worth. A rating of Overvalued means the ETF is trading at a significant premium to our fair value estimate. We rate Fairly Valued any ETF that trades in between. The Fair Value Estimate is the aggregate, asset-weighted fair value of the stocks in an ETF portfolio that are under coverage by Morningstar equity analysts, divided by the ETF’s shares outstanding. Depending on the coverage rate, the Fair Value Estimate may not include all of the stocks in the portfolio. As such, when calculating our estimate, we assume that all stocks not under coverage are trading at fair value. Morningstar’s exchange-traded securities team analyzes the fundamental attractiveness of hundreds of ETFs. Our extensive ETF research is available in Morningstar Principia, Advisor Workstation, and our new Analyst Research Centers. Name Morningstar Category Style Box Morningstar Rating SPDRs SPY iShares MSCI EAFE Index EFA iShares MSCI Emerging Markets Index EEM SPDR Gold Shares GLD iShares S&P 500 Index IVV PowerShares QQQ QQQQ iShares Russell 1000 Growth Index IWF Vanguard Total Stock Market ETF VTI MidCap SPDRs MDY iShares MSCI Brazil Index EWZ DIAMONDS Trust, Series 1 DIA iShares MSCI Japan Index EWJ iShares Russell 1000 Value Index IWD iShares Russell 2000 Index IWM Financial Select Sector SPDR XLF Vanguard Emerging Markets Stock ETF VWO iShares S&P 500 Growth Index IVW Energy Select Sector SPDR XLE iShares FTSE/Xinhua China 25 Index FXI iShares S&P MidCap 400 Index IJH iShares Dow Jones Select Dividend Index DVY Oil Services HOLDRs OIH iShares S&P SmallCap 600 Index IJR iShares S&P Latin America 40 Index ILF iPath Dow Jones–AIG Commodity Idx TR ETN DJP iShares Russell 1000 Index IWB iShares MSCI Pacific ex–Japan EPP Vanguard Growth ETF VUG iShares Russell Midcap Index IWR iShares S&P 500 Value Index IVE iShares MSCI Taiwan Index EWT iShares Silver Trust SLV iShares S&P 100 Index OEF iShares Russell 2000 Value Index IWN iShares Russell 2000 Growth Index IWO Technology Select Sector SPDR XLK PowerShares DB Commodity Idx Trking Fund DBC iShares Russell Midcap Growth Index IWP iShares Russell 3000 Index IWV iShares Russell Midcap Value Index IWS PowerShares DB Agriculture DBA Vanguard European Stock ETF VGK iShares S&P North Amer Natural Resources IGE iShares MSCI South Korea Index EWY iShares S&P MidCap 400 Growth Index IJK iShares Cohen & Steers Realty Majors ICF iShares MSCI Canada Index EWC PowerShares Water Resources PHO Consumer Staples Select Sector SPDR XLP Vanguard Value ETF VTV Data as of June 30, 2008 Large Blend Foreign Large Blend Diversified Emerging Mkts Specialty–Precious Metals Large Blend Large Growth Large Growth Large Blend Mid–Cap Blend Latin America Stock Large Value Japan Stock Large Value Small Blend Specialty–Financial Diversified Emerging Mkts Large Growth Specialty–Natural Res Pacific/Asia ex–Japan Stk Mid–Cap Blend Large Value Specialty–Natural Res Small Blend Latin America Stock Specialty–Natural Res Large Blend Pacific/Asia ex–Japan Stk Large Growth Mid–Cap Blend Large Value Pacific/Asia ex–Japan Stk Specialty–Precious Metals Large Blend Small Value Small Growth Specialty–Technology Specialty–Natural Res Mid–Cap Growth Large Blend Mid–Cap Value Specialty–Natural Res Europe Stock Specialty–Natural Res Pacific/Asia ex–Japan Stk Mid–Cap Growth Specialty–Real Estate Foreign Large Value Specialty–Natural Res Large Blend Large Value È È È — È É É È Ë È Ç È Ç Î Ç È É È È Ë Ê É Î È — È È É Ë Ç Ç — È Í Ï É — Ì È Ê — Ç È Ç Ì Ë È Ì È Ç ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙ Ù — ÙÙÙÙ ÙÙÙÙ — ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ Ù — ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ — ÙÙÙ ÙÙÙ ÙÙÙÙ — ÙÙÙ ÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ — ÙÙÙ ÙÙÙ 84 Morningstar Advisor Summer 2008

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Morningstar Advisor - Summer 2008 Contents Letter from the Editor Contributors Inbox College Planning: Solutions and Concerns ETFs: The Next Chapter Engineering Financial Advice Investment Briefs Flexible vs. Style-Pure Managers: The Evidence Forging a New Commodity Index Work Your Way Through College Planning Sizing Up the Options Best and Worst 529 College-Savings Plans A 529 Travel Guide 10 Tax-Smart Tips for College-Savings Planning Global Dialogue How Sequoia Cranks Out Good Returns Year After Year The Many Layers of David Winters Living on the Edge Stocks to Buy Once a Decade With Munis Feeling the Pain, Some Opportunities Arise Health Care Provides Shelter from Economic Storm Help Your Clients Get More Out of Their Bond Portfolios Mutual Fund Analyst Picks 50 Most Popular Equity ETFs Undervalued Stocks Most Popular Variable Annuities New at Morningstar New on MorningstarAdvisor.com Closer to Fine

Morningstar Advisor - Summer 2008

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