April/May 2010 Departments 6 New on MorningstarAdvisor.com Contributors Letter from the Editor Behavior Gap 18 Advisor Profile Investments á la Carte 58 By the Numbers 68 8 9 Women’s Work G Squared Advisory is building its practice around a sometimesoverlooked demographic: women of modest means. Four Picks for the Present Sector Rap Mutual Fund Analyst Picks 50 Most Popular ETFs Undervalued Stocks with Wide Moats VAs: Assets Rise as New Sales Slip In the Loop 72 74 61 11 Our Job: Building Better Investors On Topic 20 Investment Briefs Gray Matters 22 Pharmaceutical Firms Get the Urge to Merge Morningstar analysts see pharmaceuticals as 2010’s hot zone for mergers and acquisitions. Screens 76 Markowitz 2.0 How Markowitz’s portfolioconstruction tool can be enhanced for the 21st century. 14 What’s Your Biggest Long-term Concern for the Economy? 10 Questions 28 79 New at Morningstar Phillips Curve 16 An Early Start Asset Allocation Is King Forget about that 90% number. After removing the market movement, asset allocation and active management are equally important in explaining return variations. 64 Funds That Look Cheaper Than the Market Finding Dividend Leaders 80 When You Wish Upon a Star 66 4