Morningstar Advisor - April/May 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 Emerging Markets Index EEM iShares MSCI EAFE Index EFA PowerShares QQQ QQQ iShares S&P 500 Index IVV 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 Vanguard REIT Index ETF VNQ iShares S&P MidCap 400 Index IJH SPDR S&P MidCap 400 MDY Vanguard Dividend Appreciation ETF VIG iShares MSCI Brazil Index EWZ iShares Dow Jones Select Dividend Index DVY SPDR S&P Dividend SDY Technology Select Sector SPDR XLK Market Vectors Gold Miners ETF GDX Energy Select Sector SPDR XLE Vanguard MSCI EAFE ETF VEA iShares S&P SmallCap 600 Index IJR Vanguard Growth ETF VUG iShares S&P 500 Growth Index IVW iShares Russell 1000 Index IWB iShares Russell Midcap Index IWR iShares FTSE China 25 Index Fund FXI Vanguard FTSE All-World ex-US ETF VEU Utilities Select Sector SPDR XLU Financial Select Sector SPDR XLF Market Vectors Agribusiness ETF MOO Vanguard Value ETF VTV Consumer Staples Select Sector SPDR XLP iShares MSCI Japan Index EWJ iShares MSCI Canada Index EWC iShares S&P 500 Value Index IVE JPMorgan Alerian MLP Index ETN AMJ Vanguard Small Cap ETF VB iShares Russell 2000 Value Index IWN iShares Russell 2000 Growth Index IWO Health Care Select Sector SPDR XLV iShares Dow Jones US Real Estate IYR Vanguard Mid-Cap ETF VO WisdomTree Emerging Markets Equity Inc DEM iShares Russell Midcap Growth Index IWP iShares MSCI South Korea Index EWY iShares S&P 100 Index OEF iShares MSCI Pacific ex-Japan EPP iShares Russell 3000 Index IWV Data as of Feb. 29, 2012 Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Foreign Large Blend Large Growth Large Blend Large Blend Large Growth Small Blend Large Value Large Value Real Estate Mid-Cap Blend Mid-Cap Blend Large Blend Latin America Stock Mid-Cap Value Large Value Technology Equity Precious Metals Equity Energy Foreign Large Blend Small Blend Large Growth Large Growth Large Blend Mid-Cap Blend China Region Foreign Large Blend Utilities Financial Natural Res Large Value Consumer Defensive Japan Stock Foreign Large Value Large Value Equity Energy Small Blend Small Value Small Growth Health Real Estate Mid-Cap Blend Diversified Emerging Mkts Mid-Cap Growth Pacific/Asia ex-Japan Stk Large Blend Pacific/Asia ex-Japan Stk Large Blend È È È È É È È É Î Ç È Ë Ë Ë È Ç Ê Ç É É È È Î É É È Ë Ç È Ç Ç É Ç È È È Ç — Î Í Ï È Ë Ë È Ì Ç È È È ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ — ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ 76 Morningstar Advisor April/May 2012

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2012

Morningstar Advisor - April/May 2012
Letter From the Editor
We’re Too Smart
How Do You Use Alternatives?
Taking the Lead
How to Find Economic Moats
The Beauty of Currencies
No Clarity on Bonds
Four Picks for the Present
Investment Briefs
Performance Chasing, Evaluated
Technology’s Slim Pickings
How Much Is Enough?
The Fear Bubble
Three Traits of a Successful Long-Short Equity Manager
Why Absolute-Return Funds Fail to Deliver
An Economist’s Response to Crises
Undiscovered in Plain Sight
Untangling ETF Tax- Efficiency Myths
Central Banks Driving the Gold Rush
U.S. Industrials Could Add Some Magic to Europe-Weary Portfolios
No-Hesitation Allocation Funds
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Greatest Story Ever Told

Morningstar Advisor - April/May 2012