What Investors Were Researching in June
Interest in dividend-paying stocks and bonds remained high as the market eyed the Fed.
Commentary
Stocks broke their winning streak as Treasury-bond yields rose in June, with all eyes focusing on the Federal Reserve. The broad-based Morningstar US Market Index fell 1.32% during the month, though the index is still up 2.7% for the second quarter.
Worries about the Fed's exit from its extraordinary monetary policy spread in June. The fears started to take root in May after the central bank began hinting that it was considering tapering its purchases of mortgage-backed securities. The Federal Open Market Committee's June policy statement and chairman Ben Bernanke's press conference did little to soothe the market. The FOMC raised its outlook for the economy, and Bernanke said that Fed officials could take their foot off the accelerator as soon as the end of the year. Although several officials tried to downplay that there had been any major changes to policy, it still spooked the market.
Yields on the 10-year Treasury bond that were sitting well below 2.0% just a few weeks ago and that had started June at 2.1% soared to 2.6% before settling down to 2.5% by the end of the month. The rise in rates sent the long-government open-end fund category down 6.25% in the second quarter and sent bond investors streaming for the doors.
There was also concern during the month about slowing growth in emerging markets, notably China. The HSBC Flash China Manufacturing Purchasing Managers' Index hit a nine-month low in the month, flaming worries that the country was struggling to make a graceful transition from an infrastructure- and investment- oriented economy to a more consumer-driven model.
Against this backdrop, what were investors checking out on Morningstar.com during the month? Below are the 25 most-viewed stock, mutual fund, and exchange-traded fund Analyst Reports in June.
| Most Viewed Stock Analyst Reports in June 2013 | ||||
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| Name | Ticker | Moat | Star Rating | June Return |
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| Enbridge | ENB | Wide |  | -2.6% |
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| Apple | AAPL | Narrow |  | -11.8% |
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| Devon Energy | DVN | Narrow | | -8.4% |
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| Coca-Cola | KO | Wide | | 1.0% |
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| Rogers Comm | RCI | Narrow | | -12.5% |
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| Sims Metal Mgmt | SMS | None | | -17.4% |
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| Intel | INTC | Wide |  | -0.2% |
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| Zoetis | ZTS | Wide |  | -3.5% |
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| Oracle | ORCL | Wide | | -9.1% |
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| Microsoft | MSFT | Wide | | -1.0% |
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| Gilead Sciences | GILD | Narrow | | -5.9% |
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| Pfizer | PFE | Wide | | 2.9% |
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| Eldorado Gold | EGO | Narrow | | -22.5% |
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| Exelon | EXC | Wide | | -1.5% |
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| Wells Fargo | WFC | Narrow | | 1.8% |
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| Berkshire Hathaway | BRK.B | Wide | | -1.9% |
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| ITC Holdings | ITC | Wide | | 5.5% |
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| BHP Billiton | BHP | Narrow | | -10.8% |
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| Clorox | CLX | Narrow | | 0.1% |
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| Cisco Systems | CSCO | Wide | | 0.9% |
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| AT&T | T | Narrow | | 1.2% |
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| ORANGE | ORAN | Narrow | Under Review | -4.6% |
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| Qualcomm | QCOM | Wide | | -3.2% |
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| Valeant Pharma | VRX | Narrow | | -5.5% |
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| Spectra Energy | SE | Wide | | 12.7% |
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| Source: Morningstar, Return Data as of June 30, Star Ratings as of July 3. |
Enbridge , the midstream energy company that owns a large crude-oil pipeline network among other assets, vaulted to number one on the most-researched stock in the month. Valuation looks to be the culprit for the surge in popularity. Enbridge's Morningstar Rating for stocks of 5 stars made it one of the very few undervalued, wide-moat companies in a fully valued market.
Pfizer's animal-health spin-off Zoetis was the eighth-most-researched stock as Pfizer prepared to shed its ownership and the firm was added to the S&P 500.
| Most Viewed Open-End Fund Analyst Reports in June 2013 | ||||
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| Name | Ticker | Morningstar Category | Star Rating | June Return |
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| Vanguard Wellington | VWELX | Mod Allocation | | -1.4% |
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| Vanguard Div Growth | VDIGX | Large Blend | | -0.6% |
| Vanguard Wellsly Inc | VWINX | Cons Allocation | | -1.6% |
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| Dodge & Cox Income | DODIX | Interm-Term Bond | | -1.7% |
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| Oakmark Intl | OAKIX | Foreign Lg Blend | | -3.9% |
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| Vanguard Cap Opp | VHCOX | Large Growth | | -1.6% |
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| Matthews Asia Div | MAPIX | Diversified Pac/Asia | | -4.2% |
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| Met West Ttl Rtn Bnd | MWTRX | Interm-Term Bond | | -2.3% |
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| Yacktman | YACKX | Large Blend | | 0.2% |
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| FPA Crescent | FPACX | Mod Allocation | | -0.9% |
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| T. Rowe Cap App | PRWCX | Mod Allocation | | -0.4% |
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| PIMCO Total Return | PTTRX | Interm-Term Bond | | -2.6% |
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| PRIMECAP Odyssey Gr | POGRX | Large Growth | | -0.9% |
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| Brn Cp Mgmt Sml Co | BCSIX | Small Growth | | 1.1% |
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| Fido Flt Rate High Inc | FFRHX | Bank Loan | | -0.8% |
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| TRP Divsfd Sm Cap Gr | PRDSX | Small Growth | | -0.8% |
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| Vanguard PRIMECAP | VPMCX | Large Growth | | -1.5% |
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| Fidelity Contrafund | FCNTX | Large Growth | | -1.7% |
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| Harbor Intl | HAINX | Foreign Lg Blend | | -4.5% |
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| Vguard Infl-Prot Sec | VIPSX | Infl-Protec Bond | | -3.9% |
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| DFA US Tgtd Value | DFFVX | Small Value | | -0.7% |
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| Oakmark Equity & Inc | OAKBX | Mod Allocation | | -1.2% |
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| Vguard PCAP Core | VPCCX | Large Growth | | -1.5% |
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| Harbor Bond | HABDX | Interm-Term Bond | | -2.4% |
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| Loomis Sayles Bond | LSBRX | Multisector Bond | | -2.9% |
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| Source: Morningstar, Data as of June 30, Star Ratings as of July 3. |
There were plenty of familiar names on top of the most-researched mutual fund list last month. Vanguard Wellington and Vanguard Dividend Growth were near the top of the pack in May, as well. Plenty of investors were also checking out their bond holdings from Dodge & Cox Income to Met West Total Return Bond to two PIMCO-managed funds ( PIMCO Total Return and Harbor Bond ).
| Most Viewed ETF Analyst Reports in June 2013 | ||
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| Name | Ticker | June Return |
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| Vanguard Dividend Appreciation | VIG | -1.5% |
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| Vanguard REIT Index | VNQ | -1.9% |
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| Vanguard FTSE Emerg Mkt | VWO | -6.1% |
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| WisdomTree Emerg Mkt Sm Cp Div | DGS | -8.5% |
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| Vanguard Total Stock Market | VTI | -1.2% |
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| WisdomTree Emerg Mkt Equity | DEM | -7.4% |
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| Vanguard High Div Yield | VYM | -0.1% |
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| Vanguard Total Inl Stock | VXUS | -3.7% |
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| PowerShares Senior Loan Port | BKLN | -1.0% |
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| Vanguard Total Bond Mkt | BND | -1.6% |
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| iShares S&P U.S. Pref Stock | PFF | -2.2% |
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| iShares Dow Jones Select Div | DVY | -0.1% |
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| Vanguard FTSE All-World ex-US | VEU | -3.6% |
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| Vanguard FTSE Developed Mkts | VEA | -2.9% |
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| Schwab U.S. Div Equity | SCHD | -0.6% |
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| SPDR S&P Dividend | SDY | -1.0% |
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| iShares Core S&P 500 | IVV | -1.3% |
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| Vanguard S&P 500 | VOO | -1.3% |
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| iShares MSCI USA Min Vol | USMV | -0.3% |
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| PowerShares S&P 500 Low Vol | SPLV | 0.6% |
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| Vanguard Sm Cap Value | VBR | -1.1% |
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| iShares Barclays TIPS Bond | TIP | -3.5% |
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| iShares Core S&P Sm Cap | IJR | -0.1% |
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| Vanguard Energy | VDE | -2.1% |
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| Vanguard Materials | VAW | -4.5% |
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| Source: Morningstar, Data as of June 30. |
ETF investor interest in yield and dividend-paying stocks was unabated in June.
Vanguard Dividend Appreciation once again was the most-researched ETF in the month, while other dividend funds such as WisdomTree Emerging Markets Small Cap Dividend and Vanguard High Dividend Yield made appearances in the top 10. There were also some newcomers to the list last month compared with May's list, including hard-hit iShares Barclays TIPS Bond and Vanguard Materials .