Morningstar Advisor - Fall 2008 - 86

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 SPDR Gold Shares GLD iShares MSCI Emerging Markets Index EEM PowerShares QQQ QQQQ iShares S&P 500 Index IVV iShares Russell 2000 Index IWM Financial Select Sector SPDR XLF iShares Russell 1000 Growth Index IWF Vanguard Total Stock Market ETF VTI DIAMONDS Trust, Series 1 DIA MidCap SPDRs MDY Energy Select Sector SPDR XLE iShares Russell 1000 Value Index IWD Vanguard Emerging Markets Stock ETF VWO iShares MSCI Japan Index EWJ iShares FTSE/Xinhua China 25 Index FXI iShares MSCI Brazil Index EWZ iShares S&P 500 Growth Index IVW iShares Dow Jones Select Dividend Index DVY iShares S&P SmallCap 600 Index IJR iShares S&P MidCap 400 Index IJH iShares Russell Midcap Index IWR iShares Russell 1000 Index IWB iShares Russell 2000 Value Index IWN Vanguard Growth ETF VUG iShares S&P 500 Value Index IVE iShares Russell 2000 Growth Index IWO Consumer Staples Select Sector SPDR XLP iShares Silver Trust SLV iShares S&P 100 Index OEF iShares Russell 3000 Index IWV Oil Services HOLDRs OIH iShares Dow Jones US Real Estate IYR iPath Dow Jones-AIG Commodity Idx TR ETN DJP iShares Russell Midcap Value Index IWS Ultra Financials ProShares UYG iShares MSCI Pacific ex-Japan EPP iShares Russell Midcap Growth Index IWP Vanguard REIT Index ETF VNQ iShares Cohen & Steers Realty Majors ICF Vanguard European Stock ETF VGK Health Care Select Sector SPDR XLV Technology Select Sector SPDR XLK Vanguard Value ETF VTV iShares MSCI Taiwan Index EWT iShares S&P Latin America 40 Index ILF Utilities Select Sector SPDR XLU PowerShares Water Resources PHO Market Vectors Gold Miners ETF GDX Data as of Sept. 30, 2008 Large Blend Foreign Large Blend Specialty-Precious Metals Diversified Emerging Mkts Large Growth Large Blend Small Blend Specialty-Financial Large Growth Large Blend Large Value Mid-Cap Blend Specialty-Natural Res Large Value Diversified Emerging Mkts Japan Stock Pacific/Asia ex-Japan Stk Latin America Stock Large Growth Large Value Small Blend Mid-Cap Blend Mid-Cap Blend Large Blend Small Value Large Growth Large Value Small Growth Large Blend Specialty-Precious Metals Large Blend Large Blend Specialty-Natural Res Specialty-Real Estate Specialty-Natural Res Mid-Cap Value Specialty-Financial Pacific/Asia ex-Japan Stk Mid-Cap Growth Specialty-Real Estate Specialty-Real Estate Europe Stock Specialty-Health Specialty-Technology Large Value Pacific/Asia ex-Japan Stk Latin America Stock Specialty-Utilities Specialty-Natural Res Specialty-Precious Metals È È — È É È Ï Ç É È Ç Ë Ç Ç È È Ç È É Ê Î Ë Ë È Í É Ç Ï È — È È É Ë — Ê Ç È Ì Ë Ë Ç É É Ç Ç È Ç Ì Ì ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙÙ Ù ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ — ÙÙ ÙÙÙ — ÙÙ — ÙÙÙÙ — ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ Ù ÙÙÙÙÙ ÙÙÙ — — 86 Morningstar Advisor Fall 2008
Morningstar Advisor - Fall 2008

Table of Contents for the Digital Edition of Morningstar Advisor - Fall 2008
