About the Editor
Ben Johnson, CFA, is director of global ETF research for Morningstar. Before assuming his current role in 2012, he was director of ETF research for Europe and Asia. He also previously served as a senior equity analyst, covering the agriculture and chemicals industries. Before joining Morningstar in 2006, he worked as a financial advisor for Morgan Stanley.

Johnson holds a bachelor's degree in economics from the University of Wisconsin. He also holds the Chartered Financial Analyst® designation. In 2015, Fund Directions and Fund Action named Johnson among the 2015 Rising Stars of Mutual Funds.


Investment Strategy
Morningstar ETFInvestor scans the globe for value and improving fundamentals across virtually all asset classes. Editor Ben Johnson draws upon academic and practitioner research — including Morningstar's sizeable bench of stock, bond and fund analysts — to find reliable drivers of outperformance.

Morningstar ETFInvestor features two real-money portfolios.

The ETF Income Portfolio assembles a high-quality collection of income-generating ETFs with the goal of earning 5% in excess of the 30-day T-bill rate over a full business cycle. The portfolio adheres to a benchmark-agnostic strategy in its search for absolute returns.

The ETF Global Asset Allocation Portfolio, on the other hand, is more benchmark sensitive. It seeks undervalued asset classes with improving fundamentals. The strategy seeks to beat the 60/40 MSCI ACWI/Barclays US Aggregate benchmark over a full business cycle, with the least risk possible.

 
 
Dec 02, 2016
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About Editor Editor's Photo
Ben Johnson, CFA,
Director, Global ETF Research and Editor
Ben Johnson, CFA, is director of global ETF research for Morningstar. Before assuming his current role in 2012, he was director of ETF research for Europe and Asia. He also previously served
Featured Posts
New Issue: Introducing the Morningstar Analyst Rating for ETFs

The PDF version of the November issue of ETFInvestor is now available for download.

The iPad version will be available in approximately 3 business days.

In this month’s cover story, I introduce the Morningstar Analyst Rating for ETFs.

Most investors do not have a black or white, active or passive view of the world. In fact, many are becoming increasingly strategy- and vehicle-agnostic, looking to select best-of-breed approaches to portfolio construction irrespective of where they are located on the active-passive continuum or whether they’re a fund or ETF. They are simply looking to select the type of vehicle that best meets their needs. This is evidenced by the continued growth of assets under management in ETFs around the world. We expect that these trends will only continue, and potentially accelerate over time. By incorporating ETFs into our Analyst Rating framework, we are leveling the field to help investors to pick the best funds from an ever-expanding list of choices.

Also in this issue:

  • I walk through the mechanics of our price/fair value ratio for ETFs and look at some of the potential bargains that are currently being called out by this metric.
  • I profile Vanguard Total Stock Market Index ETF VTI which carries a Morningstar Analyst Rating of Gold.
  • Matt Diamond shares his analysis of Neutral-rated iShares Emerging Markets ETF EEM.
  • Alex Bryan provides a useful framework for parsing the particulars of the indexes that underlie ETFs and index mutual funds.
  • In this month’s Sector Snapshot, I look at the recently infirmed healthcare sector.

You can download this month's issue here:

http://etf.morningstar.com/Newsletter.aspx?download=currentIssue

Best,

Ben Johnson, CFA

Portfolio Holdings
Income Portfolio
ETF
YTD Ret %
Price $
-0.5
103.7
CASH$
N/A
1.0
2.5
49.9
-5.2
61.5
11.9
20.2
5.3
28.8
11.2
42.9
17.1
22.7
-6.6
29.8
Global Asset Allocation Portfolio
ETF
YTD Ret %
Price $
-0.5
103.7
CASH$
N/A
1.0
2.5
49.9
11.9
20.2
5.3
28.8
11.2
42.9
-2.0
36.0
8.9
84.7
17.1
22.7
-6.6
29.8
Most Popular ETFs
ETF Name
YTD Rtn %
3 Yr Rtn %
Trading Vol.
NASDAQ 100 Trust Shares
-10.76
1.45
125,000,944
SPDRs
-3.64
2.68
87,466,496
Semiconductor HOLDRs
-6.23
-11.66
26,838,700
iShares MSCI Japan Index
-6.59
7.18
17,256,500
iShares Russell 2000 Index
-7.46
6.43
16,210,700
Energy Select Sector SPDR
15.88
15.50
14,900,000
Financial Select Sector SPDR
-8.42
2.61
11,612,800
DIAMONDS Trust, Series 1
-3.75
2.21
7,350,600
Utilities Select Sector SPDR
6.84
6.82
3,848,200
Materials Select Sector SPDR
-4.31
8.50
2,179,300
 
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