Morningstar Advisor - December/January 2010 - 70

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, Office, and our new Analyst Research Centers. Name Morningstar Category Style Box Morningstar Rating SPDRs SPY iShares MSCI Emerging Markets Index EEM iShares MSCI EAFE Index EFA iShares S&P 500 Index IVV PowerShares QQQ QQQQ Vanguard Emerging Markets Stock ETF VWO Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares MSCI Brazil Index EWZ iShares Russell 1000 Growth Index IWF iShares FTSE/Xinhua China 25 Index FXI iShares Russell 1000 Value Index IWD MidCap SPDRs MDY DIAMONDS Trust, Series 1 DIA Financial Select Sector SPDR XLF iShares S&P MidCap 400 Index IJH iShares S&P 500 Growth Index IVW Energy Select Sector SPDR XLE Market Vectors Gold Miners ETF GDX iShares MSCI Japan Index EWJ iShares S&P SmallCap 600 Index IJR iShares Russell 1000 Index IWB iShares Russell Midcap Index IWR Vanguard FTSE All-World ex-US ETF VEU Vanguard Europe Pacific ETF VEA iShares MSCI Pacific ex-Japan EPP Vanguard REIT Index ETF VNQ Technology Select Sector SPDR XLK Vanguard Growth ETF VUG iShares S&P 500 Value Index IVE iShares Russell 2000 Value Index IWN iShares Dow Jones Select Dividend Index DVY iShares MSCI Taiwan Index EWT iShares Russell 2000 Growth Index IWO iShares MSCI Canada Index EWC iShares Russell 3000 Index IWV iShares MSCI South Korea Index EWY Vanguard Value ETF VTV iShares Russell Midcap Value Index IWS iShares S&P U.S. Preferred Stock Index PFF iShares S&P Latin America 40 Index ILF iShares Dow Jones US Real Estate IYR iShares Russell Midcap Growth Index IWP Vanguard European Stock ETF VGK Vanguard Large Cap ETF VV iShares S&P 100 Index OEF Utilities Select Sector SPDR XLU Consumer Staples Select Sector SPDR XLP Oil Services HOLDRs OIH iShares MSCI Australia Index EWA Data as of October 31, 2009 Large Blend Diversified Emerging Mkts Foreign Large Blend Large Blend Large Growth Diversified Emerging Mkts Large Blend Small Blend Latin America Stock Large Growth Pacific/Asia ex-Japan Stk Large Value Mid-Cap Blend Large Value Financial Mid-Cap Blend Large Growth Equity Energy Equity Precious Metals Japan Stock Small Blend Large Blend Mid-Cap Blend Foreign Large Blend Foreign Large Blend Pacific/Asia ex-Japan Stk Real Estate Technology Large Growth Large Value Small Value Large Value Pacific/Asia ex-Japan Stk Small Growth Foreign Large Value Large Blend Pacific/Asia ex-Japan Stk Large Value Mid-Cap Value Miscellaneous Sector Latin America Stock Real Estate Mid-Cap Growth Europe Stock Large Blend Large Blend Utilities Consumer Staples Equity Energy Pacific/Asia ex-Japan Stk È È È È É È È Î È É È Ç Ë Ç Ç Ë É È É È Î È Ë È È È Ê É É Ç Í Ê Ç Ï È È Ç Ç Ê — É Ê Ì È È È Ç È É È ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ — — ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ Ù Ù ÙÙÙ ÙÙÙÙÙ ÙÙÙ Ù ÙÙÙ ÙÙÙ — ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ — ÙÙÙÙ 70 Morningstar Advisor December/January 2010
Morningstar Advisor - December/January 2010

Table of Contents for the Digital Edition of Morningstar Advisor - December/January 2010
