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

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

Strategic-beta exchange-traded funds track indexes that make rules-based, active bets in an attempt to deliver better returns, less risk, or some combination of the two as measured against a conventional broadly diversified, market-cap-weighted index. As of the end of May, there were 637 strategic-beta exchange-traded products that collectively held $619 billion of investors’ assets. This month’s issue is dedicated to analyzing these funds’ performance.

In this month’s cover, we assess the track records of strategic-beta ETFs across the Morningstar Categories that make up the U.S. equity Morningstar Style Box.

Also in this issue:

• Phillip Yoo stacks fixed-income strategic-beta ETFs up against their closest cap-weighted peers and actively-managed Morningstar Medalist funds.
• Adam McCullough profiles FlexShares Quality Dividend ETF QDF which carries a Morningstar Analyst Rating of Bronze.
• Alex Bryan shares his analysis of Bronze-rated Schwab Fundamental U.S. Small Company ETF FNDA.
• I leverage our equity analysts’ bottom-up research to take a top-down look at current valuations among a variety of equity ETFs. Unfortunately, it appears the bargain bin is bare.
• In this month’s Sector Snapshot, I once again look at the surging tech sector. While valuations in the space generally seem stretched, one of the segment’s market darlings is grossly overvalued, in our analyst’s opinion.

You can download this month's issue here:

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

Best,

Ben Johnson, CFA