ETF Research Center

Vanguard Consumer Discretonary ETF seeks to track the performance of the Morgan Stanley Capital International US Investable Market Consumer Discretionary Index. The Fund invests all of its ass

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$2,980
Currency	USD
Expense ratio	10 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	295
Wgt avg mkt cap (mns)	$257,325
Large cap (>$10bn)	81.9%
Mid cap ($2-10bn)	14.8%
Small cap (<$2bn)	3.3%
Developed mkts	99.2%
Emerging mkts	0.8%

TOP TEN HOLDINGS
Total	53.4 %
AMAZON.COM INC	22.5 %
HOME DEPOT INC	7.7 %
MCDONALD'S CORP	4.7 %
NIKE INC -CL B	3.8 %
STARBUCKS CORP	3.2 %
LOWE'S COS INC	3.0 %
BOOKING HOLDINGS INC.	2.6 %
TJX COMPANIES INC	2.3 %
TARGET CORP	2.1 %
GENERAL MOTORS CO	1.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.8 %
	IRELAND	0.8 %
	ARGENTINA	0.8 %
	SWITZERLAND	0.4 %
	BRITAIN	0.2 %
	BERMUDA	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
23.8%	12.8%	11.2%	16.7%	10.1%

Market Correlations
versus...	Beta	R-squared
S&P500	1.12	88%
MSCI EAFE	1.06	64%
MSCI Emg. Mkts.	0.76	53%

Technical Indicators
Recent close	$182.21
30d moving avg.	$182.62
Annualized volatility	14.5%
Short interest (ETF)	0.1%
Short interest (Underlying)	4.6%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	47
Turnover	0.3%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$30,987

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VCR

Expense:

10 bp

ALTAR Score™:

5.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VCR
Ticker	Fund Name	Overlap¹ vs VCR (%)	Expense ratio (bp)	Savings vs VCR (bp)	ALTAR Score™ (%)	ALTAR vs VCR (%)
FDIS	Fidelity MSCI Consumer Discrettionary	98.1	8	2	5.4	-0.1
XLY	Consumer Discretionary Select Sector SPDR	80.2	13	-3	5.7	+0.3
IEDI	iShares Evolved U.S. Discretionary Spending	63.6	18	-8	5.0	-0.4
JHMC	John Hancock Multifactor Consumer Discretionary	60.3	40	-30	5.9	+0.5
IYC	iShares DJ US Consumer Services	56.7	42	-32	5.1	-0.4
RXI	iShares S&P Global Consumer Discretionary	55.5	46	-36	6.8	+1.3
RCD	Invesco S&P Equal Weight Consumer Discretionary	42.8	40	-30	8.4	+2.9
RTH	VanEck Vectors Retail	40.7	35	-25	5.9	+0.4
FXD	First Trust Consumer Discretionary	31.9	64	-54	8.0	+2.5
ONLN	ProShares Online Retail	25.0	58	-48	2.3	-3.2
MILN	Global X Millennials Thematic	24.2	50	-40	2.9	-2.5
FTXD	First Trust Nasdaq Retail	23.9	60	-50	6.5	+1.0
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	21.1	60	-50	7.4	+1.9
XRT	SPDR S&P Retail	19.2	35	-25	8.9	+3.4
IYK	iShares US Consumer Goods	18.6	42	-32	6.3	+0.8
MGK	Vanguard Mega Cap 300 Growth	16.8	7	3	5.1	-0.4
QRFT	Qraft Ai-Enhanced U.S. Large Cap ETF	16.8	75	-65	4.7	-0.8
FLQL	Franklin LibertyQ U.S. Equity	16.5	15	-5	6.9	+1.4
PKW	Invesco Buyback Acheivevers	16.0	62	-52	6.1	+0.6
PEZ	Invesco DWA Consumer Discretionary Momentum	16.0	60	-50	4.9	-0.6

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 Consumer Discretionary
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	25.3	%
Divided by: Fwd. P/BV	4.5	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	5.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	CATEGORY AVERAGE	1.56

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.