Morningstar Advisor - June/July 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 Core S&P 500 ETF IVV iShares MSCI EAFE Index EFA Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Large Blend Foreign Large Blend È ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ PowerShares QQQ QQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM Vanguard REIT Index ETF VNQ iShares Russell 1000 Growth Index IWF Large Growth Large Blend Small Blend Real Estate Large Growth 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 Financial Select Sector SPDR XLF Large Value Mid-Cap Blend Large Blend Foreign Large Blend Financial Ç iShares Dow Jones Select Dividend Index DVY SPDR Dow Jones Industrial Average DIA SPDR S&P MidCap 400 MDY SPDR S&P Dividend SDY iShares MSCI Japan Index EWJ Mid-Cap Value Large Value Mid-Cap Blend Large Value Japan Stock Ê Vanguard Growth ETF VUG Technology Select Sector SPDR XLK iShares Core S&P Small-Cap ETF IJR Vanguard Value ETF VTV Vanguard FTSE All-World ex-US ETF VEU Large Growth Technology Small Blend Large Value Foreign Large Blend É Vanguard S&P 500 ETF VOO WisdomTree Japan Hedged Equity DXJ iShares Russell Midcap Index IWR iShares Russell 1000 Index IWB Energy Select Sector SPDR XLE Large Blend Japan Stock Mid-Cap Blend Large Blend Equity Energy È iShares S&P 500 Growth Index IVW iShares MSCI Brazil Capped Index EWZ Health Care Select Sector SPDR XLV iShares FTSE China 25 Index Fund FXI Consumer Staples Select Sector SPDR XLP Large Growth Latin America Stock Health China Region Consumer Defensive É Vanguard Small Cap ETF VB ALPS Alerian MLP ETF AMLP Utilities Select Sector SPDR XLU iShares S&P 500 Value Index IVE Vanguard High Dividend Yield Indx ETF VYM Small Blend Equity Energy Utilities Large Value Large Value Î JPMorgan Alerian MLP Index ETN AMJ Vanguard FTSE Europe ETF VGK iShares Dow Jones US Real Estate IYR Market Vectors Gold Miners ETF GDX WisdomTree Emerging Markets Equity Inc DEM Equity Energy Europe Stock Real Estate Equity Precious Metals Diversified Emerging Mkts — Market Vectors Agribusiness ETF MOO iShares Russell 2000 Value Index IWN Consumer Discret Select Sector SPDR XLY Vanguard Mid-Cap ETF VO PowerShares S&P 500 Low Volatility SPLV Natural Res Small Value Consumer Cyclical Mid-Cap Blend Large Value È Data as of Apr. 30, 2013 76 Morningstar Advisor June/July 2013 È È È È È Î Ì É Ë È È Ç Ç Ë È È É Î Ç È È Ë È Ç È É Ç È Ê Ç Ç Ç È Ë Ì Ç Í É Ë Ç ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ — ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙÙ ÙÙ ÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ — ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ —

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2013

Morningstar Advisor - June/July 2013
Letter From the Editor
Not Your Values
How Do You Use Alternatives for Clients?
Working to Build a Niche
How to Put Buffett’s Investing Philosophy into Practice
Sophisticated Strategies for the Masses
Investments á la Carte
Investment Briefs
The Percentile Trap
Defense Firms Will Stay Aloft
Beware the Lure of Diversification
Using Alternatives in Practice
Managed Futures and Cash Rates
The World Is Getting Grayer
Waiting to Pull Up Anchor
The Price of Managing Volatility
Let’s Get Back to Basics
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Mutual Fund Urban Myths

Morningstar Advisor - June/July 2013