Morningstar Advisor - April/May 2010 - 72

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.

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SPDR S&P 500 SPY iShares MSCI Emerging Markets Index EEM iShares MSCI EAFE Index EFA iShares S&P 500 Index IVV Vanguard Emerging Markets Stock ETF VWO PowerShares QQQ QQQQ iShares Russell 2000 Index IWM Vanguard Total Stock Market ETF VTI iShares Russell 1000 Growth Index IWF iShares MSCI Brazil Index EWZ iShares Russell 1000 Value Index IWD SPDR Dow Jones Industrial Average DIA SPDR S&P MidCap 400 MDY iShares FTSE/Xinhua China 25 Index FXI iShares S&P MidCap 400 Index IJH Financial Select Sector SPDR XLF iShares S&P 500 Growth Index IVW Energy Select Sector SPDR XLE iShares S&P SmallCap 600 Index IJR iShares MSCI Japan Index EWJ Market Vectors Gold Miners ETF GDX iShares Russell Midcap Index IWR iShares Russell 1000 Index IWB Vanguard REIT Index ETF VNQ Vanguard FTSE All-World ex-US ETF VEU Technology Select Sector SPDR XLK Vanguard Europe Pacific ETF VEA Vanguard Growth ETF VUG iShares MSCI Pacific ex-Japan EPP iShares S&P 500 Value Index IVE iShares Dow Jones Select Dividend Index DVY iShares Russell 2000 Value Index IWN Vanguard Small Cap ETF VB iShares Russell 2000 Growth Index IWO iShares MSCI Taiwan Index EWT Utilities Select Sector SPDR XLU Vanguard Value ETF VTV iShares MSCI Canada Index EWC iShares Russell Midcap Growth Index IWP iShares MSCI South Korea Index EWY iShares Russell 3000 Index IWV Health Care Select Sector SPDR XLV iShares Russell Midcap Value Index IWS iShares S&P 100 Index OEF iShares S&P Latin America 40 Index ILF Vanguard European ETF VGK Vanguard Large Cap ETF VV Consumer Staples Select Sector SPDR XLP Industrial Select Sector SPDR XLI iShares Dow Jones US Real Estate IYR Data as of Feb. 28, 2010

Large Blend Diversified Emerging Mkts Foreign Large Blend Large Blend Diversified Emerging Mkts Large Growth Small Blend Large Blend Large Growth Latin America Stock Large Value Large Value Mid-Cap Blend Pacific/Asia ex-Japan Stk Mid-Cap Blend Financial Large Growth Equity Energy Small Blend Japan Stock Equity Precious Metals Mid-Cap Blend Large Blend Real Estate Foreign Large Blend Technology Foreign Large Blend Large Growth Pacific/Asia ex-Japan Stk Large Value Large Value Small Value Small Blend Small Growth Pacific/Asia ex-Japan Stk Utilities Large Value Foreign Large Value Mid-Cap Growth Pacific/Asia ex-Japan Stk Large Blend Health Mid-Cap Value Large Blend Latin America Stock Europe Stock Large Blend Consumer Staples Industrials Real Estate

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72 Morningstar Advisor April/May 2010
Morningstar Advisor - April/May 2010

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2010
