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)	$3,136
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	139
Wgt avg mkt cap (mns)	$126,220
Large cap (>$10bn)	85.0%
Mid cap ($2-10bn)	9.4%
Small cap (<$2bn)	5.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	68.7 %
EXXON MOBIL CORP	22.3 %
CHEVRON CORP	17.4 %
CONOCOPHILLIPS	5.1 %
SCHLUMBERGER LTD	4.2 %
EOG RESOURCES INC	3.9 %
PHILLIPS 66	3.7 %
VALERO ENERGY CORP	3.0 %
KINDER MORGAN INC	3.0 %
MARATHON PETROLEUM	3.0 %
OCCIDENTAL PETROLEUM CORP	2.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.6 %
	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 December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
9.3%	9.3%	-3.3%	2.1%	5.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.30	54%
MSCI EAFE	1.42	54%
MSCI Emg. Mkts.	0.84	32%

Technical Indicators
Recent close	$79.92
30d moving avg.	$80.30
Annualized volatility	21.4%
Short interest (ETF)	0.3%
Short interest (Underlying)	3.9%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	444
Turnover	1.1%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$9,246

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 18 potential alternatives to the Vanguard Energy 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™:

3.8%

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	97.8	8	2	3.8	+0.1
IYE	iShares DJ US Energy Sector	94.8	42	-32	3.8	+0.0
XLE	Energy Select Sector SPDR	89.1	13	-3	4.2	+0.5
JHME	John Hancock Multifactor Energy	63.8	40	-30	3.1	-0.7
IGE	iShares North American Natural Resources	61.9	46	-36	3.8	+0.0
RYE	Invesco S&P Equal Weight Energy ETF	53.4	40	-30	3.2	-0.6
IXC	iShares Global Energy	51.2	46	-36	4.9	+1.2
FTXN	First Trust Nasdaq Oil & Gas	46.8	60	-50	4.0	+0.3
FXN	First Trust Energy Alphadex	45.6	63	-53	3.9	+0.2
FILL	iShares MSCI Global Energy Producers	43.6	39	-29	5.5	+1.8
NANR	SPDR S&P N. American Nat. Resources	37.5	35	-25	3.8	+0.1
IEO	iShares U.S. Oil & Gas Exploration & Production	36.6	42	-32	2.8	-1.0
XOP	SPDR S&P Oil & Gas Exploration & Production	35.7	35	-25	2.9	-0.9
PXI	Invesco Dynamic Energy Sector	35.0	60	-50	0.4	-3.4
FRAK	VanEck Vectors Unconventional Oil & Gas	25.2	54	-44	1.8	-2.0
HDV	iShares High Dividend	23.0	8	2	6.9	+3.1
FDL	First Trust Morningstar Dividend Leaders	22.1	45	-35	8.3	+4.6
EQRR	ProShares Equities for Rising Rates	17.7	35	-25	7.5	+3.7

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
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	1.3	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	3.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.