Morningstar Advisor - October/November 2011 - (Page 74)

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, Office, and our new Analyst Research Centers. Name Morningstar Category Style Box Morningstar Rating SPDR S&P 500 SPY Vanguard MSCI Emerging Markets ETF VWO iShares MSCI EAFE Index EFA iShares MSCI Emerging Markets Index EEM iShares S&P 500 Index IVV PowerShares QQQ QQQ Vanguard Total Stock Market ETF VTI iShares Russell 2000 Index IWM iShares Russell 1000 Growth Index IWF iShares MSCI Brazil Index EWZ iShares Russell 1000 Value Index IWD Market Vectors Gold Miners ETF GDX SPDR Dow Jones Industrial Average DIA SPDR S&P MidCap 400 MDY iShares S&P MidCap 400 Index IJH Vanguard REIT Index ETF VNQ Energy Select Sector SPDR XLE iShares MSCI Japan Index EWJ Vanguard Dividend Appreciation ETF VIG iShares Dow Jones Select Dividend Index DVY Technology Select Sector SPDR XLK Vanguard FTSE All-World ex-US ETF VEU iShares FTSE China 25 Index Fund FXI Vanguard MSCI EAFE ETF VEA iShares S&P 500 Growth Index IVW iShares Russell 1000 Index IWB SPDR S&P Dividend SDY iShares S&P SmallCap 600 Index IJR iShares Russell Midcap Index IWR Utilities Select Sector SPDR XLU Vanguard Growth ETF VUG Market Vectors Agribusiness ETF MOO Consumer Staples Select Sector SPDR XLP iShares MSCI Canada Index EWC Financial Select Sector SPDR XLF Vanguard Value ETF VTV Vanguard Small Cap ETF VB iShares MSCI South Korea Index EWY iShares S&P 500 Value Index IVE iShares Russell 2000 Value Index IWN iShares MSCI Pacific ex-Japan EPP iShares Russell 2000 Growth Index IWO Vanguard Mid-Cap ETF VO Health Care Select Sector SPDR XLV iShares MSCI Australia Index EWA iShares Russell 3000 Index IWV iShares Russell Midcap Growth Index IWP Vanguard Large Cap ETF VV iShares Dow Jones US Real Estate IYR Industrial Select Sector SPDR XLI Data as of August 31, 2011 Large Blend Diversified Emerging Mkts Foreign Large Blend Diversified Emerging Mkts Large Blend Large Growth Large Blend Small Blend Large Growth Latin America Stock Large Value Equity Precious Metals Large Value Mid-Cap Blend Mid-Cap Blend Real Estate Equity Energy Japan Stock Large Blend Large Value Technology Foreign Large Blend China Region Foreign Large Blend Large Growth Large Blend Large Value Small Blend Mid-Cap Blend Utilities Large Growth Natural Res Consumer Staples Foreign Large Value Financial Large Value Small Blend Pacific/Asia ex-Japan Stk Large Value Small Value Pacific/Asia ex-Japan Stk Small Growth Mid-Cap Blend Health Pacific/Asia ex-Japan Stk Large Blend Mid-Cap Growth Large Blend Real Estate Industrials È È È È È É È Î É Ç Ç É È Ë Ë Ë È È È Ê É È Ç È É È Ç Î Ë Ç É É È É Ç Ç Î È Ç Í È Ï Ë È È È Ì È Ë È ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙÙ Ù ÙÙÙ ÙÙÙÙ ÙÙ ÙÙ ÙÙ ÙÙÙ ÙÙÙ ÙÙÙ ÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙÙ ÙÙÙ ÙÙÙ 74 Morningstar Advisor October/November 2011

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2011

Morningstar Advisor - October/November 2011
Contents
Contributors
Letter From the Editor
The Emotional Burden
Where Are You Going for Yield?
Ahead of the Curve
How to Use a ‘Collar’
Why Dividends
Is Bond Investing All Uphill From Here?
Four Picks for the Present
Investment Briefs
The Risks of Stretching for Yield
For Banks, Uncertainty Reigns
The Virtues of Dividends
How Well Do You Know Templeton Global Bond?
The Case for Dividends in Emerging Markets
Finding Refuge in Value
Swift, Smooth, and Silent
Crack Open Closed- End Funds to Avoid the Relevance Paradox
Getting Beyond Labels in the ‘To vs. Through’ Debate
Handling the Headwinds
Bonds, Short-Term Bonds
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
A Prisoner of Pricing

Morningstar Advisor - October/November 2011