Morningstar Advisor - August/September 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 QQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares Russell 1000 Growth Index IWF iShares MSCI Brazil Index EWZ iShares S&P MidCap 400 Index IJH iShares Russell 1000 Value Index IWD SPDR S&P MidCap 400 MDY SPDR Dow Jones Industrial Average DIA Vanguard REIT Index ETF VNQ Energy Select Sector SPDR XLE Technology Select Sector SPDR XLK Financial Select Sector SPDR XLF iShares S&P SmallCap 600 Index IJR Vanguard FTSE All-World ex-US ETF VEU iShares MSCI Japan Index EWJ Vanguard MSCI EAFE ETF VEA iShares Russell Midcap Index IWR iShares FTSE China 25 Index Fund FXI iShares Russell 1000 Index IWB Market Vectors Gold Miners ETF GDX Vanguard Dividend Appreciation ETF VIG iShares S&P 500 Growth Index IVW iShares Dow Jones Select Dividend Index DVY SPDR S&P Dividend SDY Vanguard Growth ETF VUG iShares MSCI Canada Index EWC Market Vectors Agribusiness ETF MOO Vanguard Value ETF VTV iShares MSCI South Korea Index EWY Utilities Select Sector SPDR XLU iShares Russell 2000 Value Index IWN Vanguard Small Cap ETF VB iShares S&P 500 Value Index IVE Industrial Select Sector SPDR XLI Health Care Select Sector SPDR XLV iShares Russell 2000 Growth Index IWO Consumer Staples Select Sector SPDR XLP Vanguard Mid-Cap ETF VO iShares MSCI Pacific ex-Japan EPP iShares Dow Jones US Real Estate IYR iShares MSCI Germany Index EWG Vanguard MSCI Europe ETF VGK iShares MSCI Taiwan Index EWT iShares Russell Midcap Growth Index IWP Data as of June 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 Mid-Cap Blend Large Value Mid-Cap Blend Large Value Real Estate Equity Energy Technology Financial Small Blend Foreign Large Blend Japan Stock Foreign Large Blend Mid-Cap Blend China Region Large Blend Equity Precious Metals Large Blend Large Growth Large Value Large Value Large Growth Foreign Large Value Natural Res Large Value Pacific/Asia ex-Japan Stk Utilities Small Value Small Blend Large Value Industrials Health Small Growth Consumer Staples Mid-Cap Blend Pacific/Asia ex-Japan Stk Real Estate Europe Stock Europe Stock China Region Mid-Cap Growth È È È È È É È Î É Ç Ë Ç Ë È Ë È É Ç Î È È È Ë Ç È É È É Ê Ç É È É Ç Ç Ç Í Î Ç É È Ï È Ë È Ë È È È Ì ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ Ù ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ Ù ÙÙÙ 74 Morningstar Advisor August/September 2011

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2011

Morningstar Advisor - August/September 2011
Letter From the Editor
Simplicity and Design Matter
Do You Use ETFs Strategically or Tactically?
The Institutional Way
How to Analyze an ETF
Eyeing ETFs’ Next Chapter
Small-Cap/Large-Cap Flip-Flop?
Four Picks for the Present
Investment Briefs
Morningstar Investment Conference
Pitfalls of Peer Groups
A REIT Recovery, With a Catch
Turning Fund Distribution on Its Head
Here Come ETF Managed Portfolios
Circle These Picks Amid the Crop of New ETFs
ETF Analyst Favorites
Beware, the Accidental Portfolio Manager
It’s the Destination, Not the Vehicle
New Growth, Rooted in Experience
Better Ways to Look at ETFs
How to Better Manage Your Clients’ Future(s)
More Bargain Than Bubble
Cheap, Local, and On a Roll
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
First-Quarter Assets Hit an All-Time High
You Say You Want a Revolution?

Morningstar Advisor - August/September 2011