Here is the link to where I seen how to do the etching. They just used regular stickers and etching cream and they came out amazing so it is very easy to do nothing complicated at all.
Using my Silhouette Cameo I cut out the word Believe, then I used my transfer paper and transferred it to the ornament. This ornament is the shape of an M&M and that makes it easy to work with the surface of the ornament. I picked these up at Michael's they were 50% off.
Then we just place the ornament on the pencil. Here is a photo before I added the vinyl.
Here is a photo after I added the vinyl just before I etched it.