Morningstar Advisor - June/July 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 Vanguard REIT Index ETF VNQ iShares Russell 1000 Value Index IWD SPDR Dow Jones Industrial Average DIA Vanguard Dividend Appreciation ETF VIG iShares S&P MidCap 400 Index IJH iShares Dow Jones Select Dividend Index DVY SPDR S&P MidCap 400 MDY Technology Select Sector SPDR XLK SPDR S&P Dividend SDY iShares MSCI Brazil Index EWZ Vanguard MSCI EAFE ETF VEA Market Vectors Gold Miners ETF GDX iShares S&P SmallCap 600 Index IJR Vanguard Growth ETF VUG iShares S&P 500 Growth Index IVW Vanguard FTSE All-World ex-US ETF VEU iShares Russell 1000 Index IWB Energy Select Sector SPDR XLE iShares Russell Midcap Index IWR Utilities Select Sector SPDR XLU Financial Select Sector SPDR XLF iShares FTSE China 25 Index Fund FXI Vanguard Value ETF VTV Market Vectors Agribusiness ETF MOO Consumer Staples Select Sector SPDR XLP iShares MSCI Japan Index EWJ iShares MSCI Canada Index EWC JPMorgan Alerian MLP Index ETN AMJ iShares S&P 500 Value Index IVE Health Care Select Sector SPDR XLV Vanguard Small Cap ETF VB Vanguard S&P 500 ETF VOO iShares Dow Jones US Real Estate IYR iShares Russell 2000 Value Index IWN WisdomTree Emerging Markets Equity Inc DEM iShares Russell 2000 Growth Index IWO Vanguard Mid-Cap ETF VO Vanguard High Dividend Yield Indx ETF VYM iShares S&P 100 Index OEF Vanguard Large Cap ETF VV iShares Russell Midcap Growth Index IWP Data as of April 30, 2012 Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Foreign Large Blend Large Growth Large Blend Large Blend Large Growth Small Blend Real Estate Large Value Large Value Large Blend Mid-Cap Blend Mid-Cap Value Mid-Cap Blend Technology Large Value Latin America Stock Foreign Large Blend Equity Precious Metals Small Blend Large Growth Large Growth Foreign Large Blend Large Blend Equity Energy Mid-Cap Blend Utilities Financial China Region Large Value Natural Res Consumer Defensive Japan Stock Foreign Large Value Equity Energy Large Value Health Small Blend Large Blend Real Estate Small Value Diversified Emerging Mkts Small Growth Mid-Cap Blend Large Value Large Blend Large Blend Mid-Cap Growth È È È È É È È É Î Ë Ç È È Ë Ê Ë É Ç È È É Î É É È È Ç Ë Ç Ç Ç Ç É È È É — Ç È Î È Ë Í Ç Ï Ë Ç È È Ì ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙ — ÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ 76 Morningstar Advisor June/July 2012

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2012

Morningstar Advisor - June/July 2012
Letter From the Editor
Be Worth Remarking About
How Important Is Stewardship?
From West Point to Points East
Where a Fund’s Secrets Lie
Getting Fund Directors on Board
Managers Prep for Housing Rebound
Four Picks for the Present
Investment Briefs
A Hedge Against Career Risk
Natural Gas Reaches Capitulation
Family Matters
How Good Stewardship Predicts Superior Performance
Stewardship Goes Back to the Fundamentals
On the Go for Fixed Income
Where Shareholders Ride First Class
Dangers Lurk in Exchange-Traded Notes
Stocks on Sale in a Strong Market
A Good Steward Is Easy to Find
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
Buffett Rule’s Biggest Losers

Morningstar Advisor - June/July 2012