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

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2012

Morningstar Advisor - August/September 2012
Letter From the Editor
How Much of the Behavior Gap Is Your Fault?
What’s Your View of the Muni-Bond Market?
A Balanced Life
How to Get to Know EMMA
A Strong, Robust Fund Business
Dividend Investing Abroad
Four Picks for the Present
Investment Briefs
Fund Expenses Through the Decades
Autos on Comeback Track
Lessons From the Muni-Bond Rebound
Municipal-Bond Landscape Shifts
Municipal Bonds 101
A Tale of Two Cities
Unraveling the Mysteries of Money
Small Companies Mean the World to Him
The Chinese Art Market and the Origin of Bubbles
The Myth of the Dumb Investor
Stocks That Can Stand the Heat
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The War on Savers

Morningstar Advisor - August/September 2012