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.

 
 
Apr 30, 2017
Welcome !
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: Mind The Gap - Active Versus Passive Edition 2017

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

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

When it comes to investing, we are so often our own worst enemy. Countless studies have shown that we tend to chase performance: buying high, selling low, and failing to learn from our mistakes every time. This applies to individual stocks, funds, Beanie Babies, you name it.

We pay a steep price for our actions, one that can be many multiples of a commission or an annual fee. In the realm of funds, we can roughly quantify the cost of this bad behavior. For years, my colleague and Morningstar FundInvestor editor Russ Kinnel has documented this phenomenon and sized the toll it takes on investors’ returns in his annual “Mind the Gap” study.

As was the case when I first conducted this analysis in the April 2016 issue of ETFInvestor, I look at this from a different angle. This month, I examine how, on average, investors in passively managed funds have behaved relative to investors in actively managed funds.

Also in this issue:

  • I share a list of my favorite free investing tools.
  • Alex Bryan profiles PowerShares QQQ ETF QQQ which carries a Morningstar Analyst Rating of Neutral
  • Adam McCullough shares his analysis of Neutral-rated iShares U.S. Preferred Stock ETF PFF.
  • Alex and Adam share a synopsis of their recently issued research on the impact that industry tilts have on factor strategies’ performance.
  • Daniel Sotiroff examines three different shades of systematic value strategies, underlining the fact that not all value funds are created equal.
  • In this month’s Sector Snapshot, I discuss the March reversal in financial stocks and look at a recent standout in the tech 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 $
1.5
105.7
CASH$
N/A
1.0
11.0
54.3
9.9
67.3
8.3
21.9
5.5
29.2
2.6
44.7
1.2
23.5
2.9
31.7
Global Asset Allocation Portfolio
ETF
YTD Ret %
Price $
1.5
105.7
CASH$
N/A
1.0
11.0
54.3
8.3
21.9
5.5
29.2
2.6
44.7
9.9
40.2
7.4
91.5
1.2
23.5
2.9
31.7
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
 
Contact Us | © Morningstar ETFInvestor
Customer Support
Product Support
Inquiries regarding your subscription such as address changes, missing/damaged issues, etc.
Phone: 1-800-957-6021 | Mon-Fri 8:30AM-5:00PM
Inquiries regarding technical issues such as logging in or downloading
Phone: 1-312-424-4288 | Mon-Fri 8AM-6PM
E-mail: newslettersupport@morningstar.com
Product Sales
Inquiries regarding your subscription renewal, billing or to learn about other Morningstar investment publications and resources
Phone: 1-866-608-9570 | Mon-Fri 8AM-5PM
E-mail: ussales@morningstar.com
Contact Your Editor