ETF Research Center

Vanguard Mega Cap 300 ETF seeks investment results that correspond to the MSCI US Large Cap 300 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Dec 21, 2007
Assets (mns)	$1,989
Currency	USD
Expense ratio	7 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	262
Wgt avg mkt cap (mns)	$296,633
Large cap (>$10bn)	99.9%
Mid cap ($2-10bn)	0.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	24.9 %
MICROSOFT CORP	4.9 %
APPLE INC	4.5 %
AMAZON.COM INC	3.4 %
FACEBOOK	2.1 %
BERKSHIRE HATHAWAY INC-CL B	1.8 %
ALPHABET INC. CLASS A	1.7 %
ALPHABET INC. CLASS C	1.7 %
JPMORGAN CHASE & CO	1.7 %
JOHNSON & JOHNSON	1.6 %
VISA INC-CLASS A SHARES	1.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.3 %
	IRELAND	2.0 %
	BRITAIN	0.8 %
	SWITZERLAND	0.4 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru September 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.9%	4.3%	11.0%	13.2%	8.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.98	100%
MSCI EAFE	0.87	65%
MSCI Emg. Mkts.	0.59	48%

Technical Indicators
Recent close	$103.05
30d moving avg.	$102.75
Annualized volatility	12.0%
Short interest (ETF)	0.0%
Short interest (Underlying)	1.9%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	57
Turnover	0.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$116,140

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard Mega Cap 300 ETF ETF based on the alternatives' overlap in portfolio holdings with MGC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

MGC

Expense:

7 bp

ALTAR Score™:

6.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MGC
Ticker	Fund Name	Overlap¹ vs MGC (%)	Expense ratio (bp)	Savings vs MGC (bp)	ALTAR Score™ (%)	ALTAR vs MGC (%)
IWL	iShares Russell Top 200	93.3	15	-8	5.8	-0.2
VOO	Vanguard S&P 500 ETF	85.8	3	4	6.1	+0.1
SPY	S&P 500 SPDR	85.5	9	-2	6.1	+0.0
IVV	iShares Core S&P 500	85.5	4	3	6.1	+0.1
SPYX	SPDR S&P 500 Fossil Fuel Reserves Free	85.4	20	-13	6.1	+0.0
PBP	Invesco S&P 500 Buy/Write	85.3	49	-42	5.6	-0.5
HSPX	Global X S&P 500 Covered Call	85.0	65	-58	5.5	-0.5
SPXE	ProShares S&P 500 Ex-Energy	84.8	27	-20	6.0	-0.1
VV	Vanguard Large-Cap ETF	83.4	4	3	6.0	-0.0
SPXV	ProShares S&P 500 Ex-Health Care	83.3	27	-20	5.8	-0.3
SPXN	ProShares S&P 500 Ex-Financials	83.2	27	-20	6.0	-0.0
JUST	Goldman Sachs JUST U.S. Large Cap Equity	83.2	20	-13	5.8	-0.3
BBUS	JP Morgan Betabuilders U.S. Equity	82.1	2	5	6.0	-0.0
PBUS	Invesco PureBeta MSCI USA	81.6	4	3	6.1	+0.1
SCHX	Schwab U.S. Large-Cap	79.4	3	4	6.0	-0.1
SFY	SoFi Select 500	79.0	0	7	5.8	-0.2
SPLG	SPDR Portfolio Large Cap	78.8	3	4	6.0	-0.1
VONE	Vanguard Russell 1000	77.6	12	-5	5.9	-0.1
IWB	iShares Russell 1000	77.4	15	-8	5.9	-0.2
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	77.3	19	-12	5.8	-0.3

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Vanguard Mega Cap 300 ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	18.0	%
Divided by: Fwd. P/BV	2.9	x
Less: Expense ratio	7	bp
Equals: ALTAR Score	6.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.