Morningstar Advisor - December 2010/January 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 iShares MSCI Emerging Markets Index EEM Vanguard Emerging Markets Stock ETF VWO iShares MSCI EAFE Index EFA iShares S&P 500 Index IVV PowerShares QQQ QQQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares MSCI Brazil Index EWZ iShares Russell 1000 Growth Index IWF SPDR S&P MidCap 400 MDY iShares Russell 1000 Value Index IWD iShares FTSE/Xinhua China 25 Index FXI iShares S&P MidCap 400 Index IJH SPDR Dow Jones Industrial Average DIA Market Vectors Gold Miners ETF GDX Vanguard REIT Index ETF VNQ Energy Select Sector SPDR XLE Vanguard FTSE All-World ex-US ETF VEU iShares S&P SmallCap 600 Index IJR Financial Select Sector SPDR XLF iShares Russell 1000 Index IWB Technology Select Sector SPDR XLK iShares Dow Jones Select Dividend Index DVY iShares Russell Midcap Index IWR iShares S&P 500 Growth Index IVW Vanguard Europe Pacific ETF VEA Vanguard Growth ETF VUG iShares Russell 2000 Value Index IWN SPDR S&P Dividend SDY Vanguard Small Cap ETF VB iShares MSCI Pacific ex-Japan EPP Utilities Select Sector SPDR XLU iShares MSCI Canada Index EWC iShares MSCI Japan Index EWJ iShares MSCI South Korea Index EWY Vanguard Value ETF VTV iShares S&P 500 Value Index IVE Vanguard Dividend Appreciation ETF VIG iShares Russell 2000 Growth Index IWO Consumer Staples Select Sector SPDR XLP iShares S&P Latin America 40 Index ILF iShares Dow Jones US Real Estate IYR iShares Russell Midcap Value Index IWS iShares MSCI Taiwan Index EWT iShares Russell 3000 Index IWV Vanguard Mid-Cap ETF VO Oil Services HOLDRs OIH Industrial Select Sector SPDR XLI iShares Russell Midcap Growth Index IWP Data as of October 31, 2010 Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Foreign Large Blend Large Blend Large Growth Large Blend Small Blend Latin America Stock Large Growth Mid-Cap Blend Large Value China Region Mid-Cap Blend Large Value Equity Precious Metals Real Estate Equity Energy Foreign Large Blend Small Blend Financial Large Blend Technology Large Value Mid-Cap Blend Large Growth Foreign Large Blend Large Growth Small Value Large Value Small Blend Pacific/Asia ex-Japan Stk Utilities Foreign Large Value Japan Stock Pacific/Asia ex-Japan Stk Large Value Large Value Large Blend Small Growth Consumer Staples Latin America Stock Real Estate Mid-Cap Value China Region Large Blend Mid-Cap Blend Equity Energy Industrials Mid-Cap Growth È È È È È É È Î Ç É Ë Ç È Ë È É Ë Ç È Î Ç È É Ê Ë É È É Í Ê Î È Ç È È Ç Ç Ç È Ï È Ë Ë Ê Ç È Ë É È Ì ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ — ÙÙ ÙÙÙ 76 Morningstar Advisor December/January 2011

Table of Contents for the Digital Edition of Morningstar Advisor - December 2010/January 2011

Morningstar Advisor - December 2010/january 2011
New on
Letter From the Editor
What Strategies Do You Use to Help Retirees Hedge Against Longevity Risk?
Investment Briefs
Four Picks for the Present
Scaring the Swiss
Tech Is the Apple of Managers’ Eyes
How to Read an Sec Filing
A Strategy That Loves Performance Chasers
Things Fall Apart, Even in Industrials
A Future in Questions, Not Answers
Research Over Chocolates
Creating Portfolios That Confront Retirement’s Risks
Building in-Retirement Portfolios to Last
On the Lookout for Guaranteed Income Streams
What Fires Up Mairs & Power
All Aboard!
Aiming at Alternatives
Stuff Your Stocking with Out-of-Favor Bargains
Stable, High Yields (No Bonds Included)
Mutural Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks with Wide Moats
Twelve Bee, Huh?

Morningstar Advisor - December 2010/January 2011