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Commentary

What Investors Were Researching in June

Interest in dividend-paying stocks and bonds remained high as the market eyed the Fed.

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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
Name Ticker Moat Star Rating June Return
Enbridge ENB Wide -2.6%
Apple AAPL Narrow -11.8%
Devon Energy DVN Narrow -8.4%
Coca-Cola KO Wide 1.0%
Rogers Comm RCI Narrow -12.5%
Sims Metal Mgmt SMS None -17.4%
Intel
INTC Wide -0.2%
Zoetis ZTS Wide -3.5%
Oracle ORCL Wide -9.1%
Microsoft MSFT Wide -1.0%
Gilead Sciences GILD Narrow -5.9%
Pfizer PFE Wide
2.9%
Eldorado Gold EGO Narrow
-22.5%
Exelon EXC Wide -1.5%
Wells Fargo WFC Narrow 1.8%
Berkshire Hathaway BRK.B Wide
-1.9%
ITC Holdings ITC Wide 5.5%
BHP Billiton BHP Narrow -10.8%
Clorox CLX Narrow 0.1%
Cisco Systems CSCO Wide 0.9%
AT&T T Narrow 1.2%
ORANGE  ORAN Narrow Under Review -4.6%
Qualcomm QCOM Wide -3.2%
Valeant Pharma VRX Narrow -5.5%
Spectra Energy SE Wide 12.7%
Source: Morningstar, Return Data as of June 30, Star Ratings as of July 3.

 Enbridge (ENB), 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 (PFE) animal-health spin-off  Zoetis (ZTS) 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
Name Ticker Morningstar Category Star Rating June Return
Vanguard Wellington VWELX Mod Allocation -1.4%
Vanguard Div Growth VDIGX Large Blend -0.6%
Vanguard Wellsly Inc VWINX Cons Allocation -1.6%
Dodge & Cox Income DODIX Interm-Term Bond -1.7%
Oakmark Intl OAKIX Foreign Lg Blend -3.9%
Vanguard Cap Opp VHCOX Large Growth -1.6%
Matthews Asia Div MAPIX Diversified Pac/Asia -4.2%
Met West Ttl Rtn Bnd MWTRX Interm-Term Bond -2.3%
Yacktman YACKX Large Blend 0.2%
FPA Crescent FPACX Mod Allocation -0.9%
T. Rowe Cap App PRWCX Mod Allocation -0.4%
PIMCO Total Return
PTTRX Interm-Term Bond -2.6%
PRIMECAP Odyssey Gr POGRX Large Growth -0.9%
Brn Cp Mgmt Sml Co BCSIX Small Growth 1.1%
Fido Flt Rate High Inc FFRHX Bank Loan -0.8%
TRP Divsfd Sm Cap Gr PRDSX Small Growth -0.8%
Vanguard PRIMECAP VPMCX Large Growth -1.5%
Fidelity Contrafund FCNTX Large Growth -1.7%
Harbor Intl HAINX Foreign Lg Blend -4.5%
Vguard Infl-Prot Sec VIPSX Infl-Protec Bond -3.9%
DFA US Tgtd Value DFFVX Small Value -0.7%
Oakmark Equity & Inc OAKBX Mod Allocation -1.2%
Vguard PCAP Core VPCCX Large Growth -1.5%
Harbor Bond HABDX Interm-Term Bond -2.4%
Loomis Sayles Bond LSBRX Multisector Bond -2.9%
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 (VWELX) and  Vanguard Dividend Growth (VDIGX) 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 (DODIX) to  Met West Total Return Bond (MWTRX) to two PIMCO-managed funds ( PIMCO Total Return (PTTRX) and  Harbor Bond (HABDX)). 

 Most Viewed ETF Analyst Reports in June 2013
Name Ticker June Return
Vanguard Dividend Appreciation VIG -1.5%
Vanguard REIT Index VNQ -1.9%
Vanguard FTSE Emerg Mkt VWO -6.1%
WisdomTree Emerg Mkt Sm Cp Div DGS -8.5%
Vanguard Total Stock Market VTI -1.2%
WisdomTree Emerg Mkt Equity DEM -7.4%
Vanguard High Div Yield VYM -0.1%
Vanguard Total Inl Stock VXUS -3.7%
PowerShares Senior Loan Port BKLN -1.0%
Vanguard Total Bond Mkt BND -1.6%
iShares S&P U.S. Pref Stock PFF -2.2%
iShares Dow Jones Select Div DVY -0.1%
Vanguard FTSE All-World ex-US VEU -3.6%
Vanguard FTSE Developed Mkts VEA -2.9%
Schwab U.S. Div Equity SCHD -0.6%
SPDR S&P Dividend SDY -1.0%
iShares Core S&P 500 IVV -1.3%
Vanguard S&P 500 VOO -1.3%
iShares MSCI USA Min Vol USMV -0.3%
PowerShares S&P 500 Low Vol SPLV 0.6%
Vanguard Sm Cap Value VBR -1.1%
iShares Barclays TIPS Bond TIP -3.5%
iShares Core S&P Sm Cap IJR -0.1%
Vanguard Energy  VDE -2.1%
Vanguard Materials VAW -4.5%
Source: Morningstar, Data as of June 30.

ETF investor interest in yield and dividend-paying stocks was unabated in June.
 Vanguard Dividend Appreciation (VIG) once again was the most-researched ETF in the month, while other dividend funds such as  WisdomTree Emerging Markets Small Cap Dividend (DGS) and  Vanguard High Dividend Yield (VYM) 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 (TIP) and  Vanguard Materials (VAW)

Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.