Morningstar Solutions
ETF Solutions
Screen for the Right ETF
Slide 2: ETF Screener
With the proliferation of ETF options, the Morningstar ETF Screener is a great place to start your search for investment ideas. The screener lets you sort the ETF universe by criteria such as past performance, sector weightings, and fees as well as by Morningstar Fund Category.
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Slide 3: ETF Screener
Access the ETF screener by clicking on the link from the ETF cover page. You will be presented with several preset screener criteria. You can choose to use these criteria, remove them by hitting the "x" on the far right side of the criteria, or add more by selecting the "Add Criteria" button on the top bar. There are scores of additional criteria here from short- and long-term performance metrics and sector weightings to fees and daily trading volume. Selecting any individual criteria will bring up a concise definition of that screen. Select the "Add Criteria" button if you'd like the use the metric.
Slide 4: ETF Screener
Morningstar Premium Members should be sure to check out the Premium-only valuation criteria. Our equity analysts have assigned fair value estimates and economic moat ratings to 2,000-plus stocks. We've aggregated this data to come up with fair value estimates for hundreds of equity ETFs. By comparing the current trading price to our estimate of an ETF's intrinsic worth, we can find funds that are undervalued and have the potential to provide outsized returns if they converge to our fair value estimate. The ETF screener and ETF Quickrank allow you to easily sort our rated ETFs by price/fair value estimate ratio.
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Slide 5: ETF Screener
The economic moat rating is our take on a firm's long-term competitive advantages. We believe that wide moat firms like Wal-Mart and Microsoft will be able to consistently earn returns on invested capital greater than their cost of capital. A good way to find an ETF that holds quality companies is to search for one with a high percentage of narrow and wide moat firms in its portfolio.
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Slide 6: ETF Screener
After selecting the criteria that you wish to screen for, there are two ways to define the range for your results. First, you can simply enter the high and low numeric values in the boxes to the right of the criteria name. Alternatively, you can adjust the bars on the ETF distribution graph to capture the ETFs you want. This is a great option if you aren't sure exactly what range you are looking for and want to get a quick sense of where most of the ETF universe stands.
Slide 7: ETF Screener
Want to drill down further? Select the "Categories" button and you can filter your screener results by Morningstar Category or Fund Family. For example, if you only want to see Large Growth or Real Estate ETFs, simply add those criteria.
Slide 8: ETF Screener
Once you're happy with your screen, you can start digging deeper into the funds that passed. You can click on the ETF name to go to the Morningstar ETF Quote page, where you can access analyst research, portfolios, performance history, tax information, and even options data. Don't forget you can always save your screener criteria and return later to finish your research, or to see if any additional ETFs have passed your screen.
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Accompanying Video
Screen for the Right ETF
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