ETF Research Center

Vanguard Small-Cap ETF seeks to track the performance of the MSCI US Small Market 1750 Index. The Fund invests all of its assets in the stocks that make up the Index, holding each stock in the

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$29,443
Currency	USD
Expense ratio	5 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1368
Wgt avg mkt cap (mns)	$5,075
Large cap (>$10bn)	8.4%
Mid cap ($2-10bn)	76.6%
Small cap (<$2bn)	15.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	3.4 %
BURLINGTON STORES INC	0.4 %
SAIC INC	0.4 %
RINGCENTRAL, INC. CLASS A	0.3 %
TELEDYNE TECHNOLOGIES INC	0.3 %
ZEBRA TECHNOLOGIES CORP-CL A	0.3 %
ATMOS ENERGY CORP	0.3 %
IDEX CORP	0.3 %
STERIS PLC	0.3 %
EPAM SYSTEMS INC	0.3 %
TYLER TECHNOLOGIES INC	0.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.2 %
	BERMUDA	1.2 %
	IRELAND	1.0 %
	BRITAIN	0.8 %
	PUERTO RICO	0.3 %
	CAYMAN ISLANDS	0.2 %
	NETHERLANDS	0.1 %
	SWITZERLAND	0.1 %
	CANADA	0.1 %

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.
27.3%	27.3%	8.9%	12.8%	9.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.13	85%
MSCI EAFE	1.00	54%
MSCI Emg. Mkts.	0.63	37%

Technical Indicators
Recent close	$168.55
30d moving avg.	$166.04
Annualized volatility	14.9%
Short interest (ETF)	0.4%
Short interest (Underlying)	6.2%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	589
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$37,788

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VB

Expense:

5 bp

ALTAR Score™:

5.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VB
Ticker	Fund Name	Overlap¹ vs VB (%)	Expense ratio (bp)	Savings vs VB (bp)	ALTAR Score™ (%)	ALTAR vs VB (%)
PBSM	Invesco PureBeta MSCI USA Small Cap	78.3	6	-1	5.1	-0.2
VXF	Vanguard Extended Market	68.1	7	-2	3.2	-2.1
SCHA	Schwab U.S. Small-Cap	61.9	4	1	4.7	-0.5
SPMD	SPDR Portfolio Mid Cap	59.0	5	0	6.0	+0.8
SPSM	SPDR Portfolio Small Cap	58.9	5	0	4.6	-0.7
ESML	iShares MSCI USA Small-Cap ESG Optimized	56.4	17	-12	4.6	-0.6
SFYX	SoFi Next 500	56.3	0	5	5.4	+0.2
SCHM	Schwab US Mid Cap	55.1	4	1	6.0	+0.7
VBR	Vanguard Small-Cap Value ETF	54.6	7	-2	7.4	+2.1
OSIZ	Invesco Russell 1000 Size Factor ETF	51.6	19	-14	5.9	+0.6
FNDA	Schwab Fundamental Small Cap	48.0	25	-20	6.0	+0.7
FSMD	Fidelity Small-Mid Factor ETF	47.2	29	-24	6.1	+0.9
VBK	Vanguard Small-Cap Growth ETF	46.7	7	-2	2.7	-2.6
EZM	WisdomTree Midcap Earnings	45.7	38	-33	8.3	+3.0
IUSS	Invesco Strategic US Small Company	45.1	23	-18	5.9	+0.7
SMMD	iShares Russell 2500	43.7	15	-10	5.4	+0.1
IJH	iShares Core S&P MidCap	43.2	7	-2	6.1	+0.8
MDY	S&P MidCap 400 SPDR	43.2	24	-19	5.9	+0.6
IVOO	Vanguard S&P Mid-Cap 400	43.2	15	-10	5.9	+0.6
EWMC	Invesco S&P Mid Cap 400 Equal Weight	43.0	40	-35	6.3	+1.0

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 Smallcap 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	11.1	%
Divided by: Fwd. P/BV	2.1	x
Less: Expense ratio	5	bp
Equals: ALTAR Score	5.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.57	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.