Vanguard Financials Index Fund
ALTAR
Score™		 7.1% info Recommen-
dation		 SPECULATIVE
2020E    2021E
P/E
ratio		 18.6x P/Sales
ratio		 2.6x
P/BV
ratio		 1.4x Div.
yield		 2.2%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
Vanguard Financials ETF seeks to track the performance of the MSCI US Investable Market Financials Index.

FUND BASICS
Category US Equities
Fund Sponsor Vanguard Group Inc/The
Website www.vanguard.com
Inception date Jan 26, 2004
Assets (mns) $7,772
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 416
Wgt avg mkt cap (mns) $133,884
Large cap (>$10bn) 82.6%
Mid cap ($2-10bn) 13.2%
Small cap (<$2bn) 4.1%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
JPMORGAN CHASE & CO 9.5 %
BERKSHIRE HATHAWAY INC-CL B 7.4 %
BANK OF AMERICA CORP 5.8 %
CITIGROUP INC 3.0 %
WELLS FARGO & CO 2.8 %
BLACKROCK INC 2.5 %
MORGAN STANLEY 2.3 %
GOLDMAN SACHS GROUP INC 2.2 %
SCHWAB (CHARLES) CORP 2.0 %
AMERICAN EXPRESS CO 1.9 %
Total 39.6 %

TOP COUNTRY EXPOSURE
UNITED STATES 89.1 %
BRITAIN 1.8 %
SWITZERLAND 1.6 %
BERMUDA 1.3 %
PUERTO RICO 0.2 %
CAYMAN ISLANDS 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.
-1.9% -1.9% 10.8% 10.6% 4.5%

Market Correlations
versus... Beta R-squared
S&P500 1.19 85%
MSCI EAFE 1.18 83%
MSCI Emg. Mkts. 0.96 70%

Technical Indicators
Recent close $76.49
30d moving avg. $72.76
Annualized volatility 24.2%
Short interest (ETF) 0.2%
Short interest (Underlying) 2.2%
Relative strength (RSI) 65

Liquidity measures
Avg. volume (thou.) 605
Turnover 0.6%
Bid/Ask (% of price) 0.04%
ADV underlying (mns) $28,010

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 96 potential alternatives to the Vanguard Financials Index Fund ETF based on the alternatives' overlap in portfolio holdings with VFH. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: VFH Expense: 10 bp ALTAR Score™: 7.1%


ALTERNATIVE ETFs BASED ON OVERLAP WITH VFH
Ticker Fund
Name		 Overlap1
vs VFH
(%)		 Expense
ratio
(bp)		 Savings
vs VFH
(bp)		 ALTAR
Score™
(%)		 ALTAR
vs VFH
(%)
FNCL Fidelity MSCI Financials Index ETF 93.7 8 2 7.1 +0.0
XLF Financial Select Sector SPDR Fund 75.3 13 -3 6.7 -0.4
IYF iShares U.S. Financials ETF 69.4 42 -32 6.0 -1.1
IEFN iShares Evolved U.S. Financials ETF 68.8 18 -8 7.5 +0.4
JHMF John Hancock Multifactor Financials ETF 63.2 40 -30 6.4 -0.7
IYG iShares US Financial Services ETF 62.0 42 -32 5.8 -1.3
RYF Invesco S&P 500 Equal Weight Financials ETF 51.0 40 -30 7.5 +0.4
IXG iShares Global Financials ETF 49.1 46 -36 8.5 +1.4
SPVU Invesco S&P 500 Enhanced Value ETF 38.5 13 -3 9.5 +2.4
DFNL Davis Select Financial ETF 32.9 64 -54 6.7 -0.4
FXO First Trust Financials AlphaDEX Fund 31.7 63 -53 9.1 +2.0
KBWB Invesco KBW Bank ETF 31.6 35 -25 7.7 +0.6
PKW Invesco Buyback Achievers ETF 31.4 62 -52 5.4 -1.7
VOOV Vanguard S&P 500 Value ETF 23.7 10 0 6.6 -0.5
KBE SPDR S&P Bank ETF 23.6 35 -25 8.1 +1.0
PWV Invesco Dynamic Large Cap Value ETF 23.6 56 -46 6.8 -0.3
MGV Vanguard Mega Cap Value ETF 23.4 7 3 6.4 -0.7
RAFE PIMCO RAFI ESG U.S. ETF 23.4 30 -20 6.7 -0.4
KCE SPDR S&P Capital Markets ETF 23.3 35 -25 7.0 -0.1
RPV Invesco S&P 500 Pure Value ETF 22.8 35 -25 9.9 +2.8
VLU SPDR S&P 1500 Value Tilt ETF 22.7 12 -2 6.2 -0.9
VFVA Vanguard U.S. Value Factor ETF 22.5 14 -4 8.5 +1.4
IWX iShares Russell Top 200 Value ETF 22.4 20 -10 6.0 -1.1
VYM Vanguard High Dividend Yield Index ETF 22.1 6 4 6.6 -0.5
FAB First Trust Multi Cap Value AlphaDEX Fund 21.8 71 -61 7.5 +0.4
VTV Vanguard Value Index Fund 21.8 4 6 6.5 -0.6
DUSA Davis Select U.S. Equity ETF 21.7 63 -53 5.6 -1.5
DIVB iShares U.S. Dividend & Buyback ETF 21.7 25 -15 5.9 -1.2
VONV Vanguard Russell 1000 Value Index Fund 21.0 8 2 6.1 -1.0
REVS Columbia Research Enhanced Value ETF 20.0 19 -9 6.7 -0.4
IUSV iShares Core S&P U.S. Value ETF 19.9 4 6 6.4 -0.7
IWD iShares Russell 1000 Value ETF 19.9 19 -9 6.0 -1.1
AMCA iShares Russell 1000 Pure U.S. Revenue ETF 19.9 15 -5 6.0 -1.1
SPYV SPDR Portfolio S&P 500 Value ETF 19.8 4 6 6.4 -0.7
DGRO iShares Core Dividend Growth ETF 19.8 8 2 6.0 -1.1
IVE iShares S&P 500 Value ETF 19.8 18 -8 6.3 -0.8
FTA First Trust Large Cap Value AlphaDEX Fund 19.3 60 -50 7.4 +0.3
JKF iShares Morningstar Large Cap Value ETF 18.5 25 -15 6.6 -0.5
SCHV Schwab U.S. Large-Cap Value ETF 18.0 4 6 6.1 -1.0
PRF Invesco FTSE RAFI US 1000 ETF 17.3 39 -29 5.8 -1.3
KIE SPDR S&P Insurance ETF 17.3 35 -25 8.1 +1.1
FTXO First Trust Nasdaq Bank ETF 16.8 60 -50 6.6 -0.5
EQRR ProShares Equities for Rising Rates ETF 16.8 35 -25 6.1 -1.0
CDL VictoryShares US Large Cap High Dividend Volatility Wtd Idx 16.6 35 -25 7.6 +0.5
CDC VictoryShares US EQ Income Enhanced Volatility Wtd Index ETF 16.6 35 -25 7.7 +0.6
VTRN Victory Portfolios II VictoryShares Top Veteran Employers ET 16.4 60 -50 6.2 -0.9
ALTL Pacer Lunt Large Cap Alternator ETF 16.3 60 -50 5.5 -1.6
SPHB Invesco S&P 500 High Beta ETF 16.2 25 -15 5.9 -1.2
TUSA First Trust Total US Market AlphaDEX ETF 16.2 70 -60 4.8 -2.3
FLV American Century Focused Large Cap Value ETF 16.0 42 -32 5.8 -1.3
PY Principal Shareholder Yield Index ETF 15.9 15 -5 7.9 +0.8
FNDX Schwab Fundamental U.S. Large Co. Index ETF 15.8 25 -15 5.8 -1.3
VETS Pacer Military Times Best Employers ETF 15.8 60 -50 6.1 -1.0
FNDB Schwab Fundamental U.S. Broad Market Index ETF 15.7 25 -15 5.7 -1.4
FDL First Trust Morningstar Dividend Leaders Index Fund 15.5 45 -35 9.1 +2.1
NULV Nuveen ESG Large-Cap Value ETF 15.5 35 -25 6.0 -1.1
EPS WisdomTree U.S. Earnings 500 Fund 15.5 8 2 6.0 -1.1
FCTR First Trust Lunt U.S. Factor Rotation ETF 15.4 65 -55 1.2 -5.9
IWS iShares Russell Mid-Cap Value ETF 15.4 24 -14 6.0 -1.1
VFLQ Vanguard U.S. Liquidity Factor ETF 15.4 14 -4 3.5 -3.6
TILT Flexshares Morningstar US Market Factors Tilt Index Fund 15.4 25 -15 5.0 -2.1
EQWL Invesco Russell Top 200 Equal Weight ETF 15.1 25 -15 5.6 -1.5
MOAT VanEck Vectors Morningstar Wide Moat ETF 15.1 48 -38 6.2 -0.9
LEND Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF 15.1 65 -55 15.8 +8.7
USEQ Invesco Russell 1000 Enhanced Equal Weight ETF 15.0 29 -19 6.0 -1.1
ESGV Vanguard ESG U.S. Stock ETF 15.0 12 -2 4.6 -2.5
SPXT ProShares S&P 500 Ex-Technology ETF 14.7 27 -17 4.9 -2.2
RDVY First Trust Rising Dividend Achievers ETF 14.7 50 -40 6.4 -0.7
EQOP Natixis U.S. Equity Opportunities ETF 14.6 90 -80 4.0 -3.1
DTD WisdomTree U.S.Total Dividend Fund 14.4 28 -18 6.3 -0.8
FEX First Trust Large Cap Core AlphaDEX Fund 14.4 60 -50 4.7 -2.4
AVUS Avantis U.S. Equity ETF 14.3 15 -5 4.9 -2.2
RWL Invesco S&P 500 Revenue ETF 14.2 39 -29 6.3 -0.8
DBLV AdvisorShares DoubleLine Value Equity ETF 14.0 91 -81 5.4 -1.7
IAK iShares U.S. Insurance ETF 13.8 42 -32 7.7 +0.6
PBSM Invesco PureBeta MSCI USA Small Cap ETF 13.6 6 4 4.1 -3.0
KRE SPDR S&P Regional Banking ETF 13.5 35 -25 7.3 +0.3
FUNL CornerCap Fundametrics Large-Cap ETF 13.5 50 -40 7.2 +0.1
DHS WisdomTree U.S. High Dividend Fund 13.4 38 -28 8.4 +1.3
VBR Vanguard Small Cap Value Index Fund 13.3 7 3 6.4 -0.7
SIZE iShares MSCI USA Size Factor ETF 13.3 15 -5 5.2 -1.9
EUSA iShares MSCI USA Equal Weighted ETF 13.3 15 -5 5.1 -2.0
ESGS Columbia Sustainable U.S. Equity Income ETF 13.3 35 -25 7.5 +0.4
FDVV Fidelity Core Dividend ETF 13.2 29 -19 6.1 -1.0
RSP Invesco S&P 500 Equal Weight ETF 13.2 20 -10 5.6 -1.5
LGLV SPDR Russell 1000 Low Volatility ETF 13.2 12 -2 5.2 -1.9
JKD iShares Morningstar Large-Cap ETF 13.2 20 -10 4.8 -2.3
JVAL JPMorgan U.S. Value Factor ETF 13.1 12 -2 7.2 +0.1
CFO VictoryShares US 500 Enhanced Volatility Weighted Index ETF 13.1 35 -25 5.1 -2.0
CFA VictoryShares US 500 Volatility Weighted Index ETF 13.0 35 -25 5.1 -2.0
CHGX Change Finance U.S. Large Cap Fossil Fuel Free ETF 13.0 49 -39 4.2 -2.9
SYV SPDR MFS Systematic Value Equity ETF 12.9 60 -50 6.0 -1.1
VFQY Vanguard U.S. Quality Factor ETF 12.8 13 -3 5.3 -1.8
JKI iShares Morningstar Mid-Cap Value ETF 12.7 30 -20 7.6 +0.5
QLC FlexShares US Quality Large Cap Index Fund 12.7 32 -22 4.5 -2.6
SCHD Schwab U.S. Dividend Equity ETF 12.7 6 4 7.1 +0.1

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

  2015 2016 2017 2018 2019 2020E 2021E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
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
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:		 Vanguard Financials Index Fund
Relative
to:		 S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE
Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 9.6 %
Divided by: Fwd. P/BV 1.3 x
Less: Expense ratio 10 bp
Equals: ALTAR Score 7.1 %
info More information on ALTAR Score™
MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING		 1.53 CATEGORY
AVERAGE		 1.49
 
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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.