Morningstar Advisor - April/May 2011 - (Page 74)

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 SPDR S&P 500 SPY Vanguard MSCI Emerging Markets ETF VWO iShares MSCI EAFE Index EFA iShares MSCI Emerging Markets Index EEM 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 Energy Select Sector SPDR XLE iShares S&P MidCap 400 Index IJH SPDR Dow Jones Industrial Average DIA Vanguard REIT Index ETF VNQ Financial Select Sector SPDR XLF Vanguard FTSE All-World ex-US ETF VEU iShares S&P SmallCap 600 Index IJR iShares Russell 1000 Index IWB Market Vectors Gold Miners ETF GDX iShares FTSE China 25 Index Fund FXI Technology Select Sector SPDR XLK iShares Russell Midcap Index IWR iShares MSCI Japan Index EWJ iShares S&P 500 Growth Index IVW Vanguard MSCI EAFE ETF VEA iShares Dow Jones Select Dividend Index DVY iShares MSCI Canada Index EWC Vanguard Growth ETF VUG Vanguard Dividend Appreciation ETF VIG SPDR S&P Dividend SDY Vanguard Small Cap ETF VB Vanguard Value ETF VTV iShares Russell 2000 Value Index IWN iShares S&P 500 Value Index IVE iShares MSCI South Korea Index EWY iShares Russell 2000 Growth Index IWO iShares MSCI Pacific ex-Japan EPP Oil Services HOLDRs OIH Vanguard Mid-Cap ETF VO Industrial Select Sector SPDR XLI Market Vectors Agribusiness ETF MOO Utilities Select Sector SPDR XLU iShares MSCI Taiwan Index EWT iShares Russell 3000 Index IWV iShares Russell Midcap Growth Index IWP iShares Russell Midcap Value Index IWS iShares Dow Jones US Real Estate IYR Market Vectors Russia ETF RSX Data as of February 28, 2011 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 Equity Energy Mid-Cap Blend Large Value Real Estate Financial Foreign Large Blend Small Blend Large Blend Equity Precious Metals China Region Technology Mid-Cap Blend Japan Stock Large Growth Foreign Large Blend Large Value Foreign Large Value Large Growth Large Blend Large Value Small Blend Large Value Small Value Large Value Pacific/Asia ex-Japan Stk Small Growth Pacific/Asia ex-Japan Stk Equity Energy Mid-Cap Blend Industrials Natural Res Utilities China Region Large Blend Mid-Cap Growth Mid-Cap Value Real Estate Europe Stock È È È È È É È Ï É Ç Ë Ç È Ë Ç Ë Ç È Î È É È É Ë È É È Ê È É È Ç Î Ç Í Ç Ç Ï È É Ë È È Ç Ç È Ì Ê Ë È ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙ ÙÙ ÙÙÙ ÙÙÙ — ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ Ù 74 Morningstar Advisor April/May 2011

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2011

Morningstar Advisor - April/May 2011
Letter From the Editor
The Debate That Matters Most
What Can the Mutual Fund Industry Do Better?
Cool Logic, Warm Intent
How to Start a Mutual Fund
Owner and Operator
Middle East Revolts Roil Oil Markets
Four Picks for the Present
Investment Briefs
How We Improve Our Odds of Picking Outperformers
Health Care Survived 2010, but Investors Want Proof
The Global Fund-Leadership Playoffs: Europe vs. the United States
U.S. Fund Investors Have It Good
U.S. Fund Firms Learn to Speak UCITS
Balancing Act
The Tamer Ride
Investors Lend a Hand
Healthy, Wealthy, and Wide
Foreign Funds That Win at Concentration
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
VAs Finish 2010 With a Solid Gain
Buying Good Funds, Poorly

Morningstar Advisor - April/May 2011