Morningstar Advisor - June/July 2011 - (Page 76)

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 QQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares Russell 1000 Growth Index IWF iShares MSCI Brazil Index EWZ iShares Russell 1000 Value Index IWD iShares S&P MidCap 400 Index IJH SPDR S&P MidCap 400 MDY SPDR Dow Jones Industrial Average DIA Vanguard REIT Index ETF VNQ Energy Select Sector SPDR XLE Financial Select Sector SPDR XLF iShares MSCI Japan Index EWJ iShares FTSE China 25 Index Fund FXI Vanguard FTSE All-World ex-US ETF VEU iShares S&P SmallCap 600 Index IJR Technology Select Sector SPDR XLK iShares Russell 1000 Index IWB Vanguard MSCI EAFE ETF VEA iShares Russell Midcap Index IWR Market Vectors Gold Miners ETF GDX iShares S&P 500 Growth Index IVW iShares MSCI Canada Index EWC Vanguard Dividend Appreciation ETF VIG iShares Dow Jones Select Dividend Index DVY Vanguard Growth ETF VUG SPDR S&P Dividend SDY iShares MSCI South Korea Index EWY Vanguard Value ETF VTV Vanguard Small Cap ETF VB iShares S&P 500 Value Index IVE iShares Russell 2000 Value Index IWN Consumer Staples Select Sector SPDR XLP iShares Russell 2000 Growth Index IWO Industrial Select Sector SPDR XLI iShares MSCI Pacific ex-Japan EPP Utilities Select Sector SPDR XLU iShares MSCI Germany Index EWG Health Care Select Sector SPDR XLV Oil Services HOLDRs OIH Vanguard Mid-Cap ETF VO Market Vectors Agribusiness ETF MOO iShares MSCI Taiwan Index EWT Market Vectors Russia ETF RSX iShares Dow Jones US Real Estate IYR Data as of April 30, 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 Large Value Mid-Cap Blend Mid-Cap Blend Large Value Real Estate Equity Energy Financial Japan Stock China Region Foreign Large Blend Small Blend Technology Large Blend Foreign Large Blend Mid-Cap Blend Equity Precious Metals Large Growth Foreign Large Value Large Blend Large Value Large Growth Large Value Pacific/Asia ex-Japan Stk Large Value Small Blend Large Value Small Value Consumer Staples Small Growth Industrials Pacific/Asia ex-Japan Stk Utilities Europe Stock Health Equity Energy Mid-Cap Blend Natural Res China Region Europe Stock Real Estate È È È È È É È Î É Ç Ç Ë Ë È Ë È Ç È Ç È Î É È È Ë É É È È Ê É Ç Ç Ç Î Ç Í È Ï É È Ç È È É Ë É Ç È Ë ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ — ÙÙÙ ÙÙÙ Ù Ù ÙÙÙ 76 Morningstar Advisor June/July 2011

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2011

Morningstar Advisor - June/July 2011
Letter From the Editor
Questions for the Secret Society
Are 529 Plans a Useful Tool for Clients’ College-Savings Goals?
Taking the Lead
How to Sell Covered Calls
The College-Savings Challenge
Time to Play Defense?
Four Picks for the Present
Investment Briefs
Careful What You Wish For
Caution in Utilities After Japan Crisis
Blossoms and Thorns in the 529 Garden
Lower Fees, Competitive Returns Help More 529s Make the Grade
Morningstar Grades 529 Plans
529 Risks Include the Political
Researching 529 Plans Made Easy
How Closed-End Funds Are Born
Boutique Within a Bank
The Inefficient Pricing of Moats
More Steak Than Sizzle
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Dangers of Demonizing

Morningstar Advisor - June/July 2011