Morningstar Advisor - August/September 2011 - 47

sure that we're meeting the needs of the
advice channel through the depth and breadth
of the investment capabilities we have.
But also I think what's happened over the
years-and I think importantly-is the
movement of [us asking], How do you help
advisors be successful? At one level, it's
understanding our investment-management
capabilities and how should you expect
them to perform in different markets. But it's
also trying to be very, very thoughtful with
advisors and understanding what their needs
are. Everybody has relative strengths, and
understanding the relative strengths of the
different advisors is very important. I think
investors are vastly better off than they were
10, 15, 20 years ago.
Bill McNabb: We have served independent
advisors for more than 25 years, but it was
a relatively small segment of the marketplace.
As we began to see the business model for
advisors change from transaction-based to
fee-based, the big " Aha! " for us was:
How would advisors react if we treated
them the way we treat many of our institutional
clients?
For that constituency, our goal is to offer
high-quality, low-cost investments. Obviously,
indexing is an important part of that, but
not the only part. Could we bring the same to
the advisor market under these new rules of
engagement? Treating advisors like institutions
for us meant more than just product. There is
the critical element of service, in terms of
helping advisory firms achieve their goals, build
robust client bases, and serve their end clients
extremely well.
We also have a tremendous depth of research.
The advisor community is really, really hungry
for ideas. We've had considerable success
in sharing with advisors our various research
pieces, and having them make use of them for
building up their own practices and assembling
portfolios for their clients.
I agree with Marty: This overall development is
very good for the end user of the service, in
that there's much more focus on transparency
on the product side as opposed to the advice
side. Where we're having the most success is
with advisors who really want to be clear,
saying, " This is what you're paying me for, and
this is what the underlying cost of the product
is. " In those situations, the total cost, if you
will, to the end consumer is pretty important.
That's where Vanguard helps the equation.
Flanagan: The investor is so much better off
because the sophistication across the spectrum
has gone up quite dramatically. You're seeing
the likes of CFAs in the field matching off
against the advisor channel. And, by the way,
many of the independent financial advisors
are CFAs themselves, and Certified Financial
Planners. I think that's a great thing.
MorningstarAdvisor.com 47
http://www.cffpinfo.com http://www.cffpinfo.com http://www.MorningstarAdvisor.com

Morningstar Advisor - August/September 2011

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2011

Morningstar Advisor - August/September 2011
Contents
Contributors
Letter From the Editor
Simplicity and Design Matter
Do You Use ETFs Strategically or Tactically?
The Institutional Way
How to Analyze an ETF
Eyeing ETFs’ Next Chapter
Small-Cap/Large-Cap Flip-Flop?
Four Picks for the Present
Investment Briefs
Morningstar Investment Conference
Pitfalls of Peer Groups
A REIT Recovery, With a Catch
Turning Fund Distribution on Its Head
Here Come ETF Managed Portfolios
Circle These Picks Amid the Crop of New ETFs
ETF Analyst Favorites
Beware, the Accidental Portfolio Manager
It’s the Destination, Not the Vehicle
New Growth, Rooted in Experience
Better Ways to Look at ETFs
How to Better Manage Your Clients’ Future(s)
More Bargain Than Bubble
Cheap, Local, and On a Roll
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
First-Quarter Assets Hit an All-Time High
You Say You Want a Revolution?
Morningstar Advisor - August/September 2011 - Intro
Morningstar Advisor - August/September 2011 - Morningstar Advisor - August/September 2011
Morningstar Advisor - August/September 2011 - Cover2
Morningstar Advisor - August/September 2011 - 1
Morningstar Advisor - August/September 2011 - 2
Morningstar Advisor - August/September 2011 - Contents
Morningstar Advisor - August/September 2011 - 4
Morningstar Advisor - August/September 2011 - 5
Morningstar Advisor - August/September 2011 - Contributors
Morningstar Advisor - August/September 2011 - Letter From the Editor
Morningstar Advisor - August/September 2011 - Simplicity and Design Matter
Morningstar Advisor - August/September 2011 - 9
Morningstar Advisor - August/September 2011 - Do You Use ETFs Strategically or Tactically?
Morningstar Advisor - August/September 2011 - 11
Morningstar Advisor - August/September 2011 - The Institutional Way
Morningstar Advisor - August/September 2011 - 13
Morningstar Advisor - August/September 2011 - How to Analyze an ETF
Morningstar Advisor - August/September 2011 - 15
Morningstar Advisor - August/September 2011 - Eyeing ETFs’ Next Chapter
Morningstar Advisor - August/September 2011 - 17
Morningstar Advisor - August/September 2011 - Small-Cap/Large-Cap Flip-Flop?
Morningstar Advisor - August/September 2011 - 19
Morningstar Advisor - August/September 2011 - Four Picks for the Present
Morningstar Advisor - August/September 2011 - 21
Morningstar Advisor - August/September 2011 - Investment Briefs
Morningstar Advisor - August/September 2011 - 23
Morningstar Advisor - August/September 2011 - 24
Morningstar Advisor - August/September 2011 - 25
Morningstar Advisor - August/September 2011 - Morningstar Investment Conference
Morningstar Advisor - August/September 2011 - 27
Morningstar Advisor - August/September 2011 - Pitfalls of Peer Groups
Morningstar Advisor - August/September 2011 - 29
Morningstar Advisor - August/September 2011 - 30
Morningstar Advisor - August/September 2011 - 31
Morningstar Advisor - August/September 2011 - A REIT Recovery, With a Catch
Morningstar Advisor - August/September 2011 - 33
Morningstar Advisor - August/September 2011 - 34
Morningstar Advisor - August/September 2011 - 35
Morningstar Advisor - August/September 2011 - 36
Morningstar Advisor - August/September 2011 - 37
Morningstar Advisor - August/September 2011 - Turning Fund Distribution on Its Head
Morningstar Advisor - August/September 2011 - 39
Morningstar Advisor - August/September 2011 - Here Come ETF Managed Portfolios
Morningstar Advisor - August/September 2011 - 41
Morningstar Advisor - August/September 2011 - Circle These Picks Amid the Crop of New ETFs
Morningstar Advisor - August/September 2011 - ETF Analyst Favorites
Morningstar Advisor - August/September 2011 - Beware, the Accidental Portfolio Manager
Morningstar Advisor - August/September 2011 - 45
Morningstar Advisor - August/September 2011 - It’s the Destination, Not the Vehicle
Morningstar Advisor - August/September 2011 - 47
Morningstar Advisor - August/September 2011 - 48
Morningstar Advisor - August/September 2011 - 49
Morningstar Advisor - August/September 2011 - 50
Morningstar Advisor - August/September 2011 - 51
Morningstar Advisor - August/September 2011 - 52
Morningstar Advisor - August/September 2011 - 53
Morningstar Advisor - August/September 2011 - New Growth, Rooted in Experience
Morningstar Advisor - August/September 2011 - 55
Morningstar Advisor - August/September 2011 - 56
Morningstar Advisor - August/September 2011 - 57
Morningstar Advisor - August/September 2011 - Better Ways to Look at ETFs
Morningstar Advisor - August/September 2011 - 59
Morningstar Advisor - August/September 2011 - 60
Morningstar Advisor - August/September 2011 - 61
Morningstar Advisor - August/September 2011 - How to Better Manage Your Clients’ Future(s)
Morningstar Advisor - August/September 2011 - 63
Morningstar Advisor - August/September 2011 - 64
Morningstar Advisor - August/September 2011 - 65
Morningstar Advisor - August/September 2011 - More Bargain Than Bubble
Morningstar Advisor - August/September 2011 - 67
Morningstar Advisor - August/September 2011 - Cheap, Local, and On a Roll
Morningstar Advisor - August/September 2011 - 69
Morningstar Advisor - August/September 2011 - Mutual Fund Analyst Picks
Morningstar Advisor - August/September 2011 - 71
Morningstar Advisor - August/September 2011 - 72
Morningstar Advisor - August/September 2011 - 73
Morningstar Advisor - August/September 2011 - 50 Most Popular ETFs
Morningstar Advisor - August/September 2011 - 75
Morningstar Advisor - August/September 2011 - Undervalued Stocks With Wide Moats
Morningstar Advisor - August/September 2011 - 77
Morningstar Advisor - August/September 2011 - First-Quarter Assets Hit an All-Time High
Morningstar Advisor - August/September 2011 - 79
Morningstar Advisor - August/September 2011 - You Say You Want a Revolution?
Morningstar Advisor - August/September 2011 - Cover3
Morningstar Advisor - August/September 2011 - Cover4
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