Morningstar Advisor - October/November 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 Core S&P Mid-Cap ETF IJH Diversified Emerging Mkts Large Blend Small Blend Large Growth Mid-Cap Blend È iShares Russell 1000 Value Index IWD Vanguard REIT Index ETF VNQ Vanguard Dividend Appreciation ETF VIG Financial Select Sector SPDR XLF Vanguard FTSE Developed Markets ETF VEA Large Value Real Estate Large Blend Financial Foreign Large Blend Ç SPDR S&P MidCap 400 MDY iShares Select Dividend ETF DVY SPDR S&P Dividend SDY SPDR Dow Jones Industrial Average DIA iShares Core S&P Small-Cap ETF IJR Mid-Cap Blend Mid-Cap Value Large Value Large Value Small Blend Ë Technology Select Sector SPDR XLK Vanguard Growth ETF VUG Vanguard Value ETF VTV Vanguard S&P 500 ETF VOO iShares MSCI Japan Index EWJ Technology Large Growth Large Value Large Blend Japan Stock É WisdomTree Japan Hedged Equity DXJ Vanguard FTSE All-World ex-US ETF VEU Vanguard FTSE Europe ETF VGK iShares Russell Midcap Index IWR iShares Russell 1000 Index IWB Japan Stock Foreign Large Blend Europe Stock Mid-Cap Blend Large Blend È Energy Select Sector SPDR XLE iShares S&P 500 Growth Index IVW Health Care Select Sector SPDR XLV Vanguard Small Cap ETF VB ALPS Alerian MLP ETF AMLP Equity Energy Large Growth Health Small Blend Equity Energy Ç Vanguard High Dividend Yield Indx ETF VYM Market Vectors Gold Miners ETF GDX Consumer Discret Select Sector SPDR XLY iShares S&P 500 Value Index IVE Industrial Select Sector SPDR XLI Large Value Equity Precious Metals Consumer Cyclical Large Value Industrials Ç JPMorgan Alerian MLP Index ETN AMJ iShares Russell 2000 Growth Index IWO Vanguard Mid-Cap ETF VO iShares Russell 2000 Value Index IWN Consumer Staples Select Sector SPDR XLP Equity Energy Small Growth Mid-Cap Blend Small Value Consumer Defensive — Utilities Select Sector SPDR XLU iShares China Large-Cap FXI iShares MSCI Brazil Capped EWZ iShares Russell Midcap Value Index IWS WisdomTree Emerging Markets Equity Inc DEM Utilities China Region Latin America Stock Mid-Cap Value Diversified Emerging Mkts Ç Data as of Aug. 31, 2013 76 Morningstar Advisor October/November 2013 È È È É È Î É Ë Ë È Ç È Ê È Ç Î É Ç È È È È Ë È É É Î Ê Ë É Ç È Ï Ì Í È Ç È Ê Ç ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ Ù ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ — ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ — ÙÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙ Ù Ù ÙÙÙÙ ÙÙÙÙÙ

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2013

Morningstar Advisor - October/November 2013
Letter From the Editor
How to Make Social Media Work for You
Do Mutual Funds Still Have a Role?
More Personal Than Finance
How to Handle Your TIPS Positions
A Real Estate Veteran Starts From Scratch
Investments á la Carte
Investment Briefs
When to Say No
Take a Guarded Approach to Homebuilders
Fund Distribution Has Been Turned on Its Head. Now What?
Winning the Distribution Battle
Active ETFs Wait for Their Heyday
A Fund Firm Defies Indexing Trend
Piloting New Channels
A Good Fit
The Predictive Power of Fair Value Estimates
Does Being Prudent Pay Off?
Utilizing Utilities’ Total Return
Stuck in the Middle Is Not a Bad Place to Be
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Good Guys Win

Morningstar Advisor - October/November 2013