ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group
Website	www.vanguard.com
Inception date	Dec 21, 2007
Assets (mns)	$2,666
Currency	USD
Expense ratio	7 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	#N/A Field Not Applicable
Weighting	Multi-Factor
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	156
Wgt avg mkt cap (mns)	$177,070
Large cap (>$10bn)	100.0%
Mid cap ($2-10bn)	0.0%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	27.3 %
BERKSHIRE HATHAWAY INC-CL B	3.8 %
JPMORGAN CHASE & CO	3.5 %
JOHNSON & JOHNSON	3.1 %
PROCTER & GAMBLE CO/THE	2.6 %
EXXON MOBIL CORP	2.6 %
AT&T INC	2.5 %
BANK OF AMERICA CORP	2.4 %
WALT DISNEY CO/THE	2.3 %
INTEL CORP	2.3 %
UNITEDHEALTH GROUP INC	2.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.2 %
	IRELAND	2.8 %
	SWITZERLAND	0.8 %
	BRITAIN	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.1%	11.5%	9.6%	12.5%	7.1%

Market Correlations
versus...	Beta	R-squared
S&P500	0.94	91%
MSCI EAFE	0.79	54%
MSCI Emg. Mkts.	0.52	39%

Technical Indicators
Recent close	$84.61
30d moving avg.	$82.85
Annualized volatility	11.9%
Short interest (ETF)	0.1%
Short interest (Underlying)	1.7%
Relative strength (RSI)	81

Liquidity measures
Avg. volume (thou.)	78
Turnover	0.3%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$50,121

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

MGV

Expense:

7 bp

ALTAR Score™:

7.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MGV
Ticker	Fund Name	Overlap¹ vs MGV (%)	Expense ratio (bp)	Savings vs MGV (bp)	ALTAR Score™ (%)	ALTAR vs MGV (%)
VTV	Vanguard Value ETF	84.0	4	3	7.2	+0.2
IWX	iShares Russell Top 200 Value	73.7	20	-13	7.0	-0.1
SCHV	Schwab U.S. Large-Cap Value	69.0	4	3	7.0	-0.1
VYM	Vanguard High Dividend Yield ETF	67.4	6	1	7.3	+0.2
OYLD	Invesco Russell 1000 Yield Factor ETF	66.4	19	-12	7.1	0.0
IWD	iShares Russell 1000 Value	63.5	19	-12	7.0	-0.1
VONV	Vanguard Russell 1000 Value	63.3	12	-5	7.1	+0.0
DLN	WisdomTree Large Cap Dividend	62.3	28	-21	6.5	-0.6
SPYV	SPDR Portfolio S&P 500 Value	59.7	4	3	7.2	+0.1
IVE	iShares S&P 500 Value	59.6	18	-11	7.0	-0.1
VOOV	Vanguard S&P 500 Value	59.3	15	-8	7.0	-0.0
JKF	iShares Morningstar Large Value	55.9	25	-18	7.8	+0.7
IUSV	iShares Core U.S. Value	55.7	4	3	7.2	+0.1
DIVB	iShares U.S. Dividend & Buyback	55.4	25	-18	6.7	-0.4
DTD	WisdomTree Total Dividend	54.4	28	-21	6.6	-0.5
OEF	iShares S&P 100	53.9	20	-13	5.5	-1.6
FNDX	Schwab Fundamental Large Cap	53.6	25	-18	6.7	-0.4
PRF	Invesco FTSE-RAFI U.S. 1000	53.4	39	-32	6.7	-0.4
DGRO	iShares Core Dividend Growth	53.4	8	-1	6.4	-0.7
SPXT	ProShares S&P 500 Ex-Technology	53.3	27	-20	6.0	-1.1

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

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.3	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	7	bp
Equals: ALTAR Score	7.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.55	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.