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

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2013

Morningstar Advisor - August/September 2013
Contents
Contributors
Letter From the Editor
Under Pressure
Has Your View of Bonds Recently Changed?
The Simple Life Cuts a Path to Prosperity
How Extended Is Your Bond Fund?
A Bond Contrarian Scours the Globe for Value
Investments á la Carte
Investment Briefs
Bond Market Behemoths
Shopping in the Digital Age
Shopping in the Digital Age
Diverse Crowd
Motor City Meltdown
Bond Convergence
Corporates Are Fairly Valued, but Opportunities Will Arise
A Legend Still Pines for the Good Fight
Greener Pastures
Forecasting Market Bubbles and Crashes
Forecasting Market Bubbles and Crashes
Home-Court Advantage
Overcoming Technophobia
These Funds Are Counting on Undervalued Sectors
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
What Price Advice?

Morningstar Advisor - August/September 2013