Morningstar Advisor - February/March 2012 - (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 1000 Growth Index IWF iShares Russell 2000 Index IWM iShares Russell 1000 Value Index IWD SPDR Dow Jones Industrial Average DIA iShares MSCI Brazil Index EWZ iShares Dow Jones Select Dividend Index DVY iShares S&P MidCap 400 Index IJH Vanguard REIT Index ETF VNQ Market Vectors Gold Miners ETF GDX Vanguard Dividend Appreciation ETF VIG SPDR S&P MidCap 400 MDY SPDR S&P Dividend SDY Technology Select Sector SPDR XLK Utilities Select Sector SPDR XLU iShares S&P SmallCap 600 Index IJR Energy Select Sector SPDR XLE Vanguard MSCI EAFE ETF VEA iShares S&P 500 Growth Index IVW iShares Russell 1000 Index IWB Vanguard Growth ETF VUG iShares Russell Midcap Index IWR Vanguard FTSE All-World ex-US ETF VEU iShares FTSE China 25 Index Fund FXI Consumer Staples Select Sector SPDR XLP Market Vectors Agribusiness ETF MOO Financial Select Sector SPDR XLF iShares MSCI Japan Index EWJ Vanguard Value ETF VTV iShares MSCI Canada Index EWC iShares S&P 500 Value Index IVE iShares Russell 2000 Value Index IWN Vanguard Small Cap ETF VB JPMorgan Alerian MLP Index ETN AMJ iShares Russell 2000 Growth Index IWO Health Care Select Sector SPDR XLV iShares Dow Jones US Real Estate IYR Vanguard Mid-Cap ETF VO iShares Russell 3000 Index IWV iShares MSCI Pacific ex-Japan EPP iShares MSCI South Korea Index EWY Vanguard Large Cap ETF VV iShares Russell Midcap Growth Index IWP iShares S&P 100 Index OEF Data as of Dec. 31, 2011 Large Blend Diversified Emerging Mkts Foreign Large Blend Diversified Emerging Mkts Large Blend Large Growth Large Blend Large Growth Small Blend Large Value Large Value Latin America Stock Mid-Cap Value Mid-Cap Blend Real Estate Equity Precious Metals Large Blend Mid-Cap Blend Large Value Technology Utilities Small Blend Equity Energy Foreign Large Blend Large Growth Large Blend Large Growth Mid-Cap Blend Foreign Large Blend China Region Consumer Defensive Natural Res Financial Japan Stock Large Value Foreign Large Value Large Value Small Value Small Blend Equity Energy Small Growth Health Real Estate Mid-Cap Blend Large Blend Pacific/Asia ex-Japan Stk Pacific/Asia ex-Japan Stk Large Blend Mid-Cap Growth Large Blend È È È È È É È É Î Ç È Ç Ê Ë Ë É È Ë Ç É Ç Î Ç È É È É Ë È Ç È È Ç È Ç È Ç Í Î — Ï È Ë Ë È È È È Ì È ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙ ÙÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙ ÙÙ ÙÙÙ — ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ 76 Morningstar Advisor February/March 2012

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2012

Morningstar Advisor - February/March 2012
Letter From the Editor
Make a Difference Stories, Not Debates
How Concerned Are You About Europe?
Analytical and Independent
What to Ask When a Fund Manager Leaves
Past, Present, Future
Have Financials Gotten Cheap Enough?
Four Picks for the Present
Investment Briefs
Tactical Funds Miss Their Chance
Specialty Retail: Ad Hoc Opportunity
How Europe Is Making Its Crisis Worse
Impact on U.S. Economy Will Be Minimal
European Banks: Bargains or Value Traps?
Don’t Count the Euro Out Yet
Europe on the Brink
GoodHaven Realizes Its Vision
How Index Trading Increases Market Vulnerability
Nonlisted REITS: Handle With Care
Safety Picks for the Many Moods of Mr. Market
On the Prowl for Large- Blend Index-Beaters
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Math That Matters

Morningstar Advisor - February/March 2012