3 Highly Rated ETFs on Sale
These ETFs are undervalued according to their price/fair value ratios.
Ben Johnson: Hi, I'm Ben Johnson, director of global ETF research, with Morningstar. Today, we're looking at three Morningstar Medalist ETFs that are trading at a discount to their Morningstar fair value estimates. Each of these funds is a Morningstar Medalist, meaning that they earn a Morningstar Analyst Rating of Gold, Silver, or Bronze. This indicates that we think these funds are among the best of breed within their respective Morningstar Categories. And all three of these ETFs are currently trading at a discount to their Morningstar fair value estimate, which is an aggregate of all of the fair value estimates, both qualitative and quantitative, for the individual stocks that these ETFs hold in their portfolios.
The first ETF that I'd like to highlight is the Schwab Emerging Markets Equity ETF. The ticker for this fund is (SCHE). At present, SCHE is trading at a 28% discount to Morningstar's fair value estimate. SCHE combines a cost-effective approach with an ultralow fee that should help it perform well against its Morningstar Category peers. It earns a Morningstar Analyst Rating of Bronze.