ETF Research Center

The Vanguard Europe Pacific fund seeks investment results that correspond to the price and yield performance of the MSCI EAFE Index of mostly large cap stocks in developed markets outside the U.S.

FUND BASICS
Category	International Equities
Fund Sponsor	Vanguard
Website	www.vanguard.com
Inception date	Jul 26, 2007
Assets (mns)	$79,914
Currency	USD
Expense ratio	5 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	3933
Wgt avg mkt cap (mns)	$58,248
Large cap (>$10bn)	75.0%
Mid cap ($2-10bn)	19.5%
Small cap (<$2bn)	5.4%
Developed mkts	95.3%
Emerging mkts	4.7%

TOP TEN HOLDINGS
Total	9.2 %
NESTLE SA-REG	1.6 %
ROCHE HOLDING AG-GENUSSCHEIN	1.2 %
SAMSUNG ELECTRONICS CO LTD	1.1 %
NOVARTIS AG-REG	1.0 %
TOYOTA MOTOR CORP	0.9 %
HSBC HOLDINGS PLC	0.8 %
SAP AG	0.7 %
AIA GROUP LTD	0.7 %
ASTRAZENECA PLC	0.7 %
TOTAL SA	0.6 %

TOP COUNTRY EXPOSURE
	JAPAN	20.7 %
	BRITAIN	13.5 %
	CANADA	8.5 %
	SWITZERLAND	7.7 %
	FRANCE	7.5 %
	GERMANY	6.9 %
	AUSTRALIA	5.9 %
	SOUTH KOREA	4.1 %
	NETHERLANDS	3.3 %
	HONG KONG	2.7 %

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.
22.6%	22.6%	6.2%	5.7%	2.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.80	72%
MSCI EAFE	1.03	97%
MSCI Emg. Mkts.	0.71	79%

Technical Indicators
Recent close	$44.30
30d moving avg.	$44.09
Annualized volatility	11.4%
Short interest (ETF)	1.0%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	7,617
Turnover	0.4%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$55,784

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Vanguard Europe Pacific ETF based on the alternatives' overlap in portfolio holdings with VEA. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VEA

Expense:

5 bp

ALTAR Score™:

7.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VEA
Ticker	Fund Name	Overlap¹ vs VEA (%)	Expense ratio (bp)	Savings vs VEA (bp)	ALTAR Score™ (%)	ALTAR vs VEA (%)
SCHF	Schwab International Equity	86.8	6	-1	7.1	+0.0
IDEV	iShares Core MSCI Int'l Developed Markets	85.2	5	0	6.9	-0.2
SPDW	SPDR Portfolio World ex-US	81.6	4	1	6.9	-0.2
IEFA	iShares Core MSCI EAFE	80.4	7	-2	6.9	-0.2
PBDM	Invesco PureBeta FTSE Developed ex-North America	79.8	7	-2	7.3	+0.2
VEU	Vanguard FTSE All-World ex-US	74.4	9	-4	7.3	+0.2
VXUS	Vanguard Total International Stock	73.9	9	-4	7.3	+0.2
ACWX	iShares MSCI ACWI ex-US	73.0	31	-26	7.1	+0.0
HFXI	IQ 50 Percent Hedged FTSE Int'l	72.3	20	-15	7.0	-0.0
IXUS	iShares Core International Stock	72.1	9	-4	7.1	+0.1
EFA	iShares MSCI EAFE	71.5	31	-26	6.7	-0.4
DBEF	Xtrackers MSCI EAFE Hedged	71.2	35	-30	6.6	-0.5
DBAW	Xtrackers MSCI All World ex-US Hedged	71.1	40	-35	6.9	-0.1
PXF	Invesco FTSE-RAFI Developed ex-US	66.6	45	-40	7.9	+0.8
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	65.1	39	-34	8.2	+1.1
EFAX	SPDR MSCI EAFE Fossil Fuel Free	64.9	20	-15	6.8	-0.3
VSGX	Vanguard ESG International Stock	63.9	15	-10	7.0	-0.0
FNDF	Schwab Fundamental Intl Large Cap	63.9	25	-20	7.5	+0.4
CWI	SPDR MSCI ACWI ex-US	62.4	30	-25	7.1	+0.0

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 Europe Pacific
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	10.3	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	5	bp
Equals: ALTAR Score	7.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	CATEGORY AVERAGE	1.63

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.