Morningstar Advisor - February/March 2013 - (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 and Morningstar Office. Name Morningstar Category Style Box Morningstar Rating SPDR S&P 500 SPY Vanguard FTSE Emerging Markets ETF VWO iShares MSCI Emerging Markets Index EEM iShares MSCI EAFE Index EFA iShares Core S&P 500 ETF IVV Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Foreign Large Blend Large Blend È ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ PowerShares QQQ QQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares Russell 1000 Growth Index IWF Vanguard REIT Index ETF VNQ Large Growth Large Blend Small Blend Large Growth Real Estate É iShares Russell 1000 Value Index IWD iShares Core S&P Mid-Cap ETF IJH Vanguard Dividend Appreciation ETF VIG Vanguard MSCI EAFE ETF VEA SPDR Dow Jones Industrial Average DIA Large Value Mid-Cap Blend Large Blend Foreign Large Blend Large Value Ç SPDR S&P MidCap 400 MDY iShares Dow Jones Select Dividend Index DVY Financial Select Sector SPDR XLF SPDR S&P Dividend SDY iShares MSCI Brazil Index EWZ Mid-Cap Blend Mid-Cap Value Financial Large Value Latin America Stock Ë Technology Select Sector SPDR XLK Vanguard Growth ETF VUG iShares FTSE China 25 Index Fund FXI Vanguard FTSE All-World ex-US ETF VEU Market Vectors Gold Miners ETF GDX Technology Large Growth China Region Foreign Large Blend Equity Precious Metals É iShares Core S&P Small-Cap ETF IJR Vanguard Value ETF VTV Energy Select Sector SPDR XLE Vanguard S&P 500 ETF VOO iShares Russell 1000 Index IWB Small Blend Large Value Equity Energy Large Blend Large Blend Î iShares S&P 500 Growth Index IVW iShares Russell Midcap Index IWR Market Vectors Agribusiness ETF MOO Vanguard MSCI Europe ETF VGK iShares MSCI Japan Index EWJ Large Growth Mid-Cap Blend Natural Res Europe Stock Japan Stock É Health Care Select Sector SPDR XLV Consumer Staples Select Sector SPDR XLP Utilities Select Sector SPDR XLU JPMorgan Alerian MLP Index ETN AMJ WisdomTree Emerging Markets Equity Inc DEM Health Consumer Defensive Utilities Equity Energy Diversified Emerging Mkts È iShares S&P 500 Value Index IVE Vanguard Small Cap ETF VB iShares MSCI Canada Index EWC ALPS Alerian MLP ETF AMLP iShares Russell 2000 Value Index IWN Large Value Small Blend Foreign Large Value Equity Energy Small Value Ç Vanguard High Dividend Yield Indx ETF VYM Industrial Select Sector SPDR XLI iShares Russell 2000 Growth Index IWO Vanguard Mid-Cap ETF VO iShares Russell Midcap Value Index IWS Large Value Industrials Small Growth Mid-Cap Blend Mid-Cap Value Ç Data as of Dec. 31, 2012 76 Morningstar Advisor February/March 2013 È È È È È Î É Ë Ë È È Ç Ê Ç Ç È É Ç È É Ç È È È Ë È È È È Ç — Ç Î É Ê Í È Ï Ë Ê ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ — ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ — ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2013

Morningstar Advisor - February/March 2013
Letter From the Editor
Social Media, the Old- Fashioned Way
Do You Use Active Strategies?
Youth Appeal
How to Buy the Unloved 2013
Morningstar Managers of the Year
Investments á la Carte
Investment Briefs
Approaches to Absolute-Return Investing
In Agriculture, It’s Good to Be Strong
Yes, There Are Good Active Funds
The Decoupling
Where It Could Pay to Be Active
The Active Fund That Defies Obsolescence
The Epitome of an Active Manager
Lines of Communication
The Existence of Market Timing ‘Intelligence’
A Route to Commodities that Bypasses the Futures Market
Best Positioned for Health-Care Reform
Diversified Stock Funds That Earn Their Stars
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
A Twisted Debate

Morningstar Advisor - February/March 2013