Morningstar Advisor - December 2012/January 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 MSCI Emerging Markets ETF VWO iShares MSCI Emerging Markets Index EEM iShares MSCI EAFE Index EFA iShares Core S&P 500 ETF IVV PowerShares QQQ QQQ Vanguard Total Stock Market ETF VTI iShares Russell 1000 Growth Index IWF iShares Russell 2000 Index IWM Vanguard REIT Index ETF VNQ iShares Russell 1000 Value Index IWD iShares Core S&P Mid-Cap ETF IJH Vanguard Dividend Appreciation ETF VIG iShares Dow Jones Select Dividend Index DVY SPDR Dow Jones Industrial Average DIA Market Vectors Gold Miners ETF GDX Vanguard MSCI EAFE ETF VEA SPDR S&P MidCap 400 MDY SPDR S&P Dividend SDY iShares MSCI Brazil Index EWZ Technology Select Sector SPDR XLK Financial Select Sector SPDR XLF Vanguard Growth ETF VUG iShares Core S&P Small-Cap ETF IJR Vanguard FTSE All-World ex-US ETF VEU Energy Select Sector SPDR XLE iShares S&P 500 Growth Index IVW Vanguard Value ETF VTV iShares Russell 1000 Index IWB iShares FTSE China 25 Index Fund FXI iShares Russell Midcap Index IWR Consumer Staples Select Sector SPDR XLP Utilities Select Sector SPDR XLU Vanguard S&P 500 ETF VOO Market Vectors Agribusiness ETF MOO Health Care Select Sector SPDR XLV JPMorgan Alerian MLP Index ETN AMJ iShares Dow Jones US Real Estate IYR iShares S&P 500 Value Index IVE WisdomTree Emerging Markets Equity Inc DEM Vanguard Small Cap ETF VB iShares MSCI Canada Index EWC ALPS Alerian MLP ETF AMLP Vanguard High Dividend Yield Indx ETF VYM iShares MSCI Japan Index EWJ iShares Russell 2000 Value Index IWN iShares S&P 100 Index OEF Vanguard MSCI Europe ETF VGK iShares Russell 2000 Growth Index IWO Vanguard Mid-Cap ETF VO Data as of Oct. 31, 2012 Large Blend Diversified Emerging Mkts Diversified Emerging Mkts Foreign Large Blend Large Blend Large Growth Large Blend Large Growth Small Blend Real Estate Large Value Mid-Cap Blend Large Blend Mid-Cap Value Large Value Equity Precious Metals Foreign Large Blend Mid-Cap Blend Large Value Latin America Stock Technology Financial Large Growth Small Blend Foreign Large Blend Equity Energy Large Growth Large Value Large Blend China Region Mid-Cap Blend Consumer Defensive Utilities Large Blend Natural Res Health Equity Energy Real Estate Large Value Diversified Emerging Mkts Small Blend Foreign Large Value Equity Energy Large Value Japan Stock Small Value Large Blend Europe Stock Small Growth Mid-Cap Blend È È È È È É È É Î Ë Ç Ë È Ê Ç É È Ë Ç È É Ç É Î È È É Ç È Ç Ë È Ç È É È — Ë Ç Ç Î É Ê Ç È Í È È Ï Ë ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ — ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙÙÙ — ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ 76 Morningstar Advisor December/January 2013

Table of Contents for the Digital Edition of Morningstar Advisor - December 2012/January 2013

Morningstar Advisor - December2012/January 2013
Letter From the Editor
What Stands Between Me and Stupid
Why Do You Use Dynamic Funds of Funds?
Serving Clients and Community
How to Pick an ETF Managed Portfolio Strategy
Tactical View of Risk
Investments á la Carte
Investment Briefs
Unbundling ETF Managed Portfolios
Risks Loom Over Telecom Industry
Outsourcing Asset Allocation
ETF Managed Portfolios on the Rise
Age-Based Options Take Over 529 Industry
How the Landscape for Advisors Is Changing
Mark Egan Embraces Volatility
Alpha, Beta, and Now … Gamma
Performance Gaps
Gains in Momentum
Companies Where Management Teams Add Value
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Once and Future King

Morningstar Advisor - December 2012/January 2013