ETF Research Center

Vanguard Mega Cap 300 Growth ETF seeks investment results that correspond to the price and yield of the MSCI US Large Cap Growth Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Dec 21, 2007
Assets (mns)	$5,594
Currency	USD
Expense ratio	7 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	114
Wgt avg mkt cap (mns)	$521,120
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	49.0 %
APPLE INC	10.8 %
MICROSOFT CORP	10.6 %
AMAZON.COM INC	6.5 %
FACEBOOK	4.5 %
ALPHABET INC. CLASS A	3.7 %
ALPHABET INC. CLASS C	3.6 %
VISA INC-CLASS A SHARES	2.9 %
MASTERCARD INC-CLASS A	2.4 %
HOME DEPOT INC	2.1 %
COMCAST CORP-CL A	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.7 %
	BRITAIN	1.4 %
	IRELAND	1.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
37.4%	37.4%	13.8%	14.8%	10.8%

Market Correlations
versus...	Beta	R-squared
S&P500	1.05	93%
MSCI EAFE	0.97	65%
MSCI Emg. Mkts.	0.65	50%

Technical Indicators
Recent close	$153.83
30d moving avg.	$146.95
Annualized volatility	13.2%
Short interest (ETF)	0.2%
Short interest (Underlying)	2.1%
Relative strength (RSI)	80

Liquidity measures
Avg. volume (thou.)	130
Turnover	0.4%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$73,075

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

MGK

Expense:

7 bp

ALTAR Score™:

4.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MGK
Ticker	Fund Name	Overlap¹ vs MGK (%)	Expense ratio (bp)	Savings vs MGK (bp)	ALTAR Score™ (%)	ALTAR vs MGK (%)
VUG	Vanguard Growth ETF	82.3	4	3	4.5	-0.1
IWY	iShares Russell Top 200 Growth	79.0	20	-13	4.6	0.0
SPYG	SPDR Portfolio S&P 500 Growth	68.9	4	3	4.7	+0.1
IVW	iShares S&P 500 Growth	68.8	18	-11	4.5	-0.1
SCHG	Schwab U.S. Large-Cap Growth	67.4	4	3	4.5	-0.1
VONG	Vanguard Russell 1000 Growth	66.0	12	-5	4.7	+0.1
TMFC	Motley Fool 100 Index	65.9	50	-43	4.0	-0.6
IWF	iShares Russell 1000 Growth	65.7	19	-12	4.6	-0.1
IUSG	iShares Core U.S. Growth	64.3	4	3	4.7	+0.1
IETC	iShares Evolved U.S. Technology	61.5	18	-11	4.3	-0.3
QQQ	Invesco QQQ	60.8	20	-13	4.7	+0.1
QYLD	Global X NASDAQ 100 Covered Call ETF	60.8	60	-53	4.5	-0.1
IGM	iShares S&P N. American Technology	58.0	46	-39	4.1	-0.5
VOOG	Vanguard S&P 500 Growth	57.3	15	-8	4.6	-0.0
JKE	iShares Morningstar Large Cap Growth	56.9	25	-18	3.4	-1.2
OQAL	Invesco Russell 1000 Quality Factor ETF	56.1	19	-12	4.9	+0.3
XOUT	GraniteShares XOUT US Large Cap	54.9	60	-53	4.7	+0.1
SPUS	SP Funds S&P 500 Sharia Industry Exclusions	54.4	49	-42	4.7	+0.1
XLG	Invesco S&P Top 50	53.0	20	-13	4.8	+0.2
IWL	iShares Russell Top 200	51.4	15	-8	5.3	+0.7

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 Growth
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	28.2	%
Divided by: Fwd. P/BV	6.0	x
Less: Expense ratio	7	bp
Equals: ALTAR Score	4.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.36	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.