For the most part ETFs are index funds. But an index can go far beyond just market cap weighting. Most ETF insiders know this already that there is wide swath of opportunities, equal-weighted, market cap-weighted, fundamentally-weighted, some of them driving up from quantitative factors. And what we’ve seen is a great deal of outperformance by a lot of these quantitative ETFs, the ETFs that are applying additional screening besides the most basic aspects of stock investing. Morningstar’s Scott Burns and Paul Justice examine five standout large-cap ETFs in the video below:

Securities mentioned in this video:  

• PowerShares Dynamic Large Cap Value (PWV)
• SPDR S&P Dividend (SDY)
• Vanguard Dividend Appreciation ETF (VIG)
• First Trust Value Line Dividend Index (FVD)
•  Claymore/Sabrient Defensive Equity (DEF)

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2. Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through September 2011
3. Morningstar to Research and Rank ETF Managed Portfolios
4. Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through July 2011
5. Morningstar Announces Speakers and Agenda For 2011 ETF Invest Conference

NYSE:DEF, NYSE:FVD, PWV, SDY, VIG