Morningstar has handpicked 10 cheap gems from the red-hot ETF market, which is on pace for another record year of inflows, including 4 it says are seriously undervalued.

Exchange-traded funds (ETFs) are set for a second straight record-breaking year of inflows, having received $469 billion of investment over the past six months, according to fund research firm Morningstar.
A strong June saw ETFs add $74 billion in inflows,…

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