ETFs Price-Fair Value Analysis

Using Morningstar's ETF price/fair value measure to evaluate the market and various sectors, Dan Culloton of Morningstar.com concludes that "as 2005 draws to a close, the song remains the same: Energy and basic-materials ETFs still look expensive, while consumer-goods and financial ETFs look undervalued." Culloton provides a detailed explanation of the price/fair value ratio, and details its application in these areas: Broad Market vs. Large Growth, Energy, Materials, Technology, Consumer Goods,Telecom, and Financial Services in this article from Morningstar via Yahoo Finance.

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(May '04-Jun '05)