Morningstar Advisor - August/September 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 Vanguard Emerging Markets Stock ETF VWO iShares S&P 500 Index IVV PowerShares QQQ QQQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares Russell 1000 Growth Index IWF iShares MSCI Brazil Index EWZ SPDR S&P MidCap 400 MDY iShares Russell 1000 Value Index IWD iShares FTSE/Xinhua China 25 Index FXI SPDR Dow Jones Industrial Average DIA Market Vectors Gold Miners ETF GDX iShares S&P MidCap 400 Index IJH Financial Select Sector SPDR XLF iShares S&P SmallCap 600 Index IJR Energy Select Sector SPDR XLE Vanguard REIT Index ETF VNQ Vanguard FTSE All-World ex-US ETF VEU iShares Russell Midcap Index IWR iShares Russell 1000 Index IWB iShares S&P 500 Growth Index IVW iShares MSCI Japan Index EWJ Vanguard Europe Pacific ETF VEA Technology Select Sector SPDR XLK iShares Dow Jones Select Dividend Index DVY Vanguard Growth ETF VUG iShares S&P 500 Value Index IVE iShares Russell 2000 Value Index IWN Vanguard Small Cap ETF VB iShares MSCI Canada Index EWC Vanguard Value ETF VTV iShares MSCI Pacific ex-Japan EPP Utilities Select Sector SPDR XLU iShares MSCI South Korea Index EWY Vanguard Dividend Appreciation ETF VIG iShares Russell 2000 Growth Index IWO Industrial Select Sector SPDR XLI iShares MSCI Taiwan Index EWT iShares Russell 3000 Index IWV iShares Russell Midcap Growth Index IWP Consumer Staples Select Sector SPDR XLP iShares Russell Midcap Value Index IWS Health Care Select Sector SPDR XLV iShares Dow Jones US Real Estate IYR Vanguard Mid-Cap ETF VO Vanguard Large Cap ETF VV Vanguard European ETF VGK Data as of June 30, 2010

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

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72 Morningstar Advisor August/September 2010
Morningstar Advisor - August/September 2010

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2010
