Morningstar Magazine - February/March 2014 - (Page 84)

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 iShares Core S&P 500 IVV iShares MSCI EAFE EFA PowerShares QQQ QQQ Vanguard FTSE Emerging Markets ETF VWO Large Blend Large Blend Foreign Large Blend Large Growth Diversified Emerging Mkts È ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ Vanguard Total Stock Market ETF VTI iShares MSCI Emerging Markets EEM iShares Russell 2000 IWM iShares Core S&P Mid-Cap IJH iShares Russell 1000 Growth IWF Large Blend Diversified Emerging Mkts Small Blend Mid-Cap Blend Large Growth È iShares Russell 1000 Value IWD Vanguard Dividend Apprec Idx ETF VIG Vanguard FTSE Developed Markets ETF VEA Vanguard REIT Index ETF VNQ Financial Select Sector SPDR XLF Large Value Large Blend Foreign Large Blend Real Estate Financial Ç SPDR S&P MidCap 400 MDY Vanguard S&P 500 ETF VOO iShares Core S&P Small-Cap IJR iShares MSCI Japan EWJ Vanguard FTSE Europe ETF VGK Mid-Cap Blend Large Blend Small Blend Japan Stock Europe Stock Ë Vanguard Growth ETF VUG Technology Select Sector SPDR XLK iShares Select Dividend DVY WisdomTree Japan Hedged Equity DXJ Vanguard Value ETF VTV Large Growth Technology Mid-Cap Value Japan Stock Large Value É SPDR Dow Jones Industrial Average DIA SPDR S&P Dividend ETF SDY Vanguard FTSE All-World ex- VEU Industrial Select Sector SPDR XLI iShares S&P 500 Growth IVW Large Value Large Value Foreign Large Blend Industrials Large Growth È iShares Russell Mid-Cap IWR Health Care Select Sector SPDR XLV iShares Russell 1000 IWB Energy Select Sector SPDR XLE iShares MSCI EMU Index EZU Mid-Cap Blend Health Large Blend Equity Energy Europe Stock Ë Vanguard Small Cap ETF VB Consumer Discret Select Sector SPDR XLY ALPS Alerian MLP ETF AMLP Vanguard High Dividend Yield Indx ETF VYM Vanguard Mid-Cap ETF VO Small Blend Consumer Cyclical Equity Energy Large Value Mid-Cap Blend Î Guggenheim S&P 500 Equal Weight RSP Consumer Staples Select Sector SPDR XLP Market Vectors Gold Miners ETF GDX iShares S&P 500 Value IVE iShares Russell 2000 Growth IWO Large Blend Consumer Defensive Equity Precious Metals Large Value Small Growth È iShares MSCI Germany EWG iShares Russell 2000 Value IWN JPMorgan Alerian MLP Index ETN AMJ iShares China Large-Cap FXI iShares Russell Mid-Cap Value IWS Miscellaneous Region Small Value Equity Energy China Region Mid-Cap Value È Data as of Jan 10, 2014 84 Morningstar February/March 2014 È È É È È Î Ë É È È Ë Ç È Î È È É Ê È Ç È È È É É È Ç Ç É Ê Ç Ì È Ë Ç Ï Í - È Ê ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙÙ ÙÙÙÙÙ Ù ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙ - ÙÙ ÙÙÙÙÙ Ù ÙÙÙÙ

Table of Contents for the Digital Edition of Morningstar Magazine - February/March 2014

Morningstar Magazine - February/March 2014
Letter From the Editor
Preparing for the Next 50 Years
Morningstar Managers of the Year
Fixing the Trust Deficit
Rethinking the Path to Retirement
Same Old, Same Old
Global Briefs
The Economic Implications of an Older World
Banking on Performance
Is the Affordable Care Act Healing Health Care’s Woes?70
Baxter Has a Positive Prognosis
Leading Fidelity’s Charge for RIAs
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Moving the Goal Post

Morningstar Magazine - February/March 2014