ETF Research Center

Vanguard Small-Cap Value ETF seeks to track the performance of the MSCI US Small Cap Value Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$14,927
Currency	USD
Expense ratio	7 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	852
Wgt avg mkt cap (mns)	$4,748
Large cap (>$10bn)	6.8%
Mid cap ($2-10bn)	76.1%
Small cap (<$2bn)	17.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	5.7 %
SAIC INC	0.7 %
ATMOS ENERGY CORP	0.6 %
IDEX CORP	0.6 %
TERADYNE INC	0.6 %
ALLEGION PLC	0.6 %
MEDICAL PROPERTIES TRUST INC	0.5 %
PERKINELMER INC	0.5 %
BOOZ ALLEN HAMILTON HOLDINGS	0.5 %
AQUA AMERICA INC	0.5 %
VICI PROPERTIES INC	0.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.6 %
	BERMUDA	1.5 %
	BRITAIN	1.1 %
	IRELAND	0.9 %
	PUERTO RICO	0.5 %
	CAYMAN ISLANDS	0.3 %
	CANADA	0.1 %
	LUXEMBOURG	0.0 %

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.
22.8%	22.8%	7.4%	11.9%	8.9%

Market Correlations
versus...	Beta	R-squared
S&P500	1.13	82%
MSCI EAFE	1.02	56%
MSCI Emg. Mkts.	0.65	39%

Technical Indicators
Recent close	$137.61
30d moving avg.	$136.51
Annualized volatility	15.0%
Short interest (ETF)	0.3%
Short interest (Underlying)	5.4%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	280
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$19,840

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VBR

Expense:

7 bp

ALTAR Score™:

7.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VBR
Ticker	Fund Name	Overlap¹ vs VBR (%)	Expense ratio (bp)	Savings vs VBR (bp)	ALTAR Score™ (%)	ALTAR vs VBR (%)
SPMD	SPDR Portfolio Mid Cap	55.0	5	2	6.1	-1.3
VB	Vanguard Smallcap ETF	54.6	5	2	5.3	-2.1
SCHA	Schwab U.S. Small-Cap	49.6	4	3	4.7	-2.7
IVOO	Vanguard S&P Mid-Cap 400	49.1	15	-8	5.9	-1.5
MDY	S&P MidCap 400 SPDR	49.0	24	-17	5.9	-1.5
IJH	iShares Core S&P MidCap	49.0	7	0	6.1	-1.3
SPSM	SPDR Portfolio Small Cap	48.4	5	2	4.6	-2.8
PBSM	Invesco PureBeta MSCI USA Small Cap	48.4	6	1	5.1	-2.3
EZM	WisdomTree Midcap Earnings	45.5	38	-31	8.3	+0.9
EWMC	Invesco S&P Mid Cap 400 Equal Weight	44.5	40	-33	6.3	-1.1
FNDA	Schwab Fundamental Small Cap	42.8	25	-18	6.0	-1.4
IWM	iShares Russell 2000	42.3	19	-12	3.4	-4.0
ESML	iShares MSCI USA Small-Cap ESG Optimized	42.1	17	-10	4.6	-2.8
VTWO	Vanguard Russell 2000	42.1	15	-8	3.5	-3.9
RNMC	First Trust Mid Cap US Equity Select	40.9	60	-53	6.3	-1.1
IJJ	iShares S&P MidCap 400 Value	40.8	25	-18	7.6	+0.2
MDYV	SPDR S&P400 Mid Cap Value	40.7	15	-8	7.7	+0.3
FSMD	Fidelity Small-Mid Factor ETF	39.7	29	-22	6.1	-1.3
FNX	First Trust Mid Cap Core Alpadex	38.7	62	-55	6.4	-1.0
IVOV	Vanguard S&P Mid-Cap 400 Value	38.4	20	-13	7.2	-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 Small-Cap Value ETF
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	11.7	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	7	bp
Equals: ALTAR Score	7.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.64	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.