ETF Research Center

Vanguard Energy ETF seeks to track the performance of the MSCI US Investable Market Energy Index. The Index consists of large, medium-size and small US companies within the energy sector that

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Sep 29, 2004
Assets (mns)	$3,061
Currency	USD
Expense ratio	10 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Brown Brothers Harriman & Co
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	134
Wgt avg mkt cap (mns)	$120,827
Large cap (>$10bn)	82.8%
Mid cap ($2-10bn)	11.6%
Small cap (<$2bn)	5.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	68.4 %
EXXON MOBIL CORP	21.9 %
CHEVRON CORP	18.0 %
CONOCOPHILLIPS	5.2 %
PHILLIPS 66	4.1 %
SCHLUMBERGER LTD	4.1 %
EOG RESOURCES INC	3.4 %
MARATHON PETROLEUM	3.3 %
VALERO ENERGY CORP	3.2 %
KINDER MORGAN INC	2.8 %
OCCIDENTAL PETROLEUM CORP	2.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.1 %
	BRITAIN	0.8 %
	SWITZERLAND	0.3 %
	NETHERLANDS	0.2 %
	BERMUDA	0.1 %

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.
2.0%	-11.6%	-4.7%	1.5%	4.8%

Market Correlations
versus...	Beta	R-squared
S&P500	1.28	55%
MSCI EAFE	1.39	53%
MSCI Emg. Mkts.	0.81	29%

Technical Indicators
Recent close	$78.10
30d moving avg.	$77.90
Annualized volatility	21.0%
Short interest (ETF)	0.1%
Short interest (Underlying)	3.9%
Relative strength (RSI)	47

Liquidity measures
Avg. volume (thou.)	310
Turnover	0.8%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$8,822

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VDE

Expense:

10 bp

ALTAR Score™:

3.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VDE
Ticker	Fund Name	Overlap¹ vs VDE (%)	Expense ratio (bp)	Savings vs VDE (bp)	ALTAR Score™ (%)	ALTAR vs VDE (%)
FENY	Fidelity MSCI Energy	96.4	8	2	3.9	+0.0
IYE	iShares DJ US Energy Sector	92.6	42	-32	3.9	+0.0
XLE	Energy Select Sector SPDR	87.5	13	-3	4.3	+0.4
IGE	iShares North American Natural Resources	62.7	46	-36	3.9	+0.0
JHME	John Hancock Multifactor Energy	62.6	40	-30	3.3	-0.6
RYE	Invesco S&P Equal Weight Energy ETF	53.3	40	-30	3.4	-0.5
FTXN	First Trust Nasdaq Oil & Gas	53.2	60	-50	2.6	-1.3
IXC	iShares S&P Global Energy Sector	51.1	46	-36	5.1	+1.2
XLEY	Cushing Energy & MLP	46.2	65	-55	3.5	-0.4
FILL	iShares MSCI Global Energy Producers	43.9	39	-29	5.6	+1.7
FXN	First Trust Energy Alphadex	43.6	63	-53	4.2	+0.3
NANR	SPDR S&P N. American Nat. Resources	37.5	35	-25	4.0	+0.1
PXI	Invesco Dynamic Energy Sector	36.3	60	-50	-0.8	-4.7
IEO	iShares U.S. Oil & Gas Exploration & Production	35.7	42	-32	3.2	-0.7
XOP	SPDR S&P Oil & Gas Exploration	35.1	35	-25	3.5	-0.5
XLSY	Cushing Energy Supply Chain & MLP	30.8	65	-55	5.4	+1.5
FRAK	VanEck Vectors Unconventional Oil & Gas	23.1	54	-44	2.2	-1.7
HDV	iShares High Dividend	21.3	8	2	6.6	+2.7
FDL	First Trust Morningstar Dividend Leaders	20.9	45	-35	8.5	+4.6
PXE	Invesco Dynamic Energy Exploration & Production	17.6	63	-53	1.2	-2.7

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 Energy ETF
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	4.9	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	3.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	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.