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.

 
 
Aug 22, 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: Sizing Up Small Caps

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

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

This month’s issue is dedicated to small-cap stocks. To kick things off, I review the research that stirred investors’ interest in the market’s smallest names and discuss how it was subsequently all but debunked and then resuscitated (kind of). From there, I take a look at the differences in index methodologies across the small-cap benchmarks behind some of the most popular exchange-traded funds in the space. I conclude with my thoughts on what it all means with respect to portfolio construction.

Also in this issue:

  • Alex Bryan demonstrates how moving down the market cap ladder gives a boost to factor exposures.
  • Daniel Sotiroff explores the risk/reward relationship in foreign small caps.
  • We profile our top-rated foreign small-cap ETF, Vanguard FTSE All-World Ex-U.S. Small Cap ETF VSS.
  • Adam McCullough shares his analysis of Gold-rated iShares Core S&P Small Cap ETF IJR.
  • We share our takes on some of our highest- and lowest-conviction picks among U.S. small-cap ETFs.
  • In this month’s Sector Snapshot, I look at the tech sector’s July comeback and the key driver of the apparent cheapening of the Consumer Discretionary Select Sector SPDR XLY, as measured by our price/fair value ratio.

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 $
2.7
106.9
CASH$
N/A
1.0
17.1
57.3
15.1
70.5
9.3
22.1
6.7
29.6
4.3
45.4
5.6
24.6
5.3
32.4
Global Asset Allocation Portfolio
ETF
YTD Ret %
Price $
2.7
106.9
CASH$
N/A
1.0
17.1
57.3
9.3
22.1
6.7
29.6
4.3
45.4
14.9
42.0
8.2
92.2
5.6
24.6
5.3
32.4
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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