Morningstar Advisor - April/May 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 ÙÙÙ 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 iShares Dow Jones Select Dividend Index DVY Large Value Mid-Cap Blend Large Blend Foreign Large Blend Mid-Cap Value Ç SPDR Dow Jones Industrial Average DIA SPDR S&P MidCap 400 MDY Financial Select Sector SPDR XLF SPDR S&P Dividend SDY Vanguard Growth ETF VUG Large Value Mid-Cap Blend Financial Large Value Large Growth È iShares Core S&P Small-Cap ETF IJR Technology Select Sector SPDR XLK Vanguard FTSE All-World ex-US ETF VEU Vanguard S&P 500 ETF VOO Vanguard Value ETF VTV Small Blend Technology Foreign Large Blend Large Blend Large Value Î Ç ÙÙÙ iShares MSCI Brazil Capped Index EWZ iShares FTSE China 25 Index Fund FXI iShares Russell Midcap Index IWR Energy Select Sector SPDR XLE Market Vectors Gold Miners ETF GDX Latin America Stock China Region Mid-Cap Blend Equity Energy Equity Precious Metals È ÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ iShares Russell 1000 Index IWB iShares S&P 500 Growth Index IVW Health Care Select Sector SPDR XLV iShares MSCI Japan Index EWJ Consumer Staples Select Sector SPDR XLP Large Blend Large Growth Health Japan Stock Consumer Defensive È Vanguard MSCI Europe ETF VGK Utilities Select Sector SPDR XLU Market Vectors Agribusiness ETF MOO Vanguard Small Cap ETF VB WisdomTree Emerging Markets Equity Inc DEM Europe Stock Utilities Natural Res Small Blend Diversified Emerging Mkts È JPMorgan Alerian MLP Index ETN AMJ iShares S&P 500 Value Index IVE ALPS Alerian MLP ETF AMLP Vanguard High Dividend Yield Indx ETF VYM iShares Dow Jones US Real Estate IYR Equity Energy Large Value Equity Energy Large Value Real Estate Industrial Select Sector SPDR XLI iShares Russell 2000 Value Index IWN WisdomTree Japan Hedged Equity DXJ iShares MSCI Canada Index EWC Vanguard Mid-Cap ETF VO Industrials Small Value Japan Stock Foreign Large Value Mid-Cap Blend Data as of Feb. 28, 2013 76 Morningstar Advisor April/May 2013 È È È È È Î É Ë Ë È È Ê Ë Ç È É É È ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ È Ç Ë È É É È È È ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ Ç ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ Ç ÙÙÙÙÙ ÙÙÙ Ç È Î Ê Ç Ë È Í È É Ë ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2013

Morningstar Advisor - April/May 2013
Letter From the Editor
The Pursuit of Happiness and Financial Advice
What Strategies Do You Use to Control Risk?
Driven to Succeed for Clients and Family
How to Assess a Portfolio’s Bond Risk
Luck, Skill, and Investing
Investments á la Carte
Investment Briefs
Investing’s No- Brainers Have Costs
A Defensive Ride
Risk On/On Risk
The Risk of Being Overconfident
Year of Living Dangerously
The Risk-Parity Approach
A Guide to Mutual Funds Running Risk-Parity Strategies
What Moats Tell Us About Risk
Risk’s Wake-Up Call
Seeing Is Believing
Why Investors Lag the Returns of Their Funds
Liquidity Signals
Pump Them Up
Golden Oldies Keep on Truckin’
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Our Social Blind Spot

Morningstar Advisor - April/May 2013