Vanguard Financials
ALTAR
Score™
7.4% info Recommen-
dation
OVERWEIGHT
2019E    2020E
P/E
ratio
12.9x P/Sales
ratio
2.5x
P/BV
ratio
1.5x Div.
yield
2.3%


  • 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 30, 2004
Assets (mns) $7,499
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 420
Wgt avg mkt cap (mns) $149,321
Large cap (>$10bn) 82.4%
Mid cap ($2-10bn) 12.8%
Small cap (<$2bn) 4.8%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
JPMORGAN CHASE & CO 10.2 %
BANK OF AMERICA CORP 7.2 %
BERKSHIRE HATHAWAY INC-CL B 6.9 %
WELLS FARGO & CO 5.5 %
CITIGROUP INC 4.2 %
US BANCORP 2.1 %
AMERICAN EXPRESS CO 2.1 %
GOLDMAN SACHS GROUP INC 1.8 %
CME GROUP INC 1.7 %
CHUBB LIMITED 1.7 %
Total 43.4 %

TOP COUNTRY EXPOSURE
UNITED STATES 93.8 %
BRITAIN 1.8 %
SWITZERLAND 1.7 %
BERMUDA 1.5 %
PUERTO RICO 0.2 %
CAYMAN ISLANDS 0.1 %





HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
22.5% 11.5% 10.4% 11.9% 4.5%

Market Correlations
versus... Beta R-squared
S&P500 1.18 68%
MSCI EAFE 0.89 33%
MSCI Emg. Mkts. 0.56 22%

Technical Indicators
Recent close $73.70
30d moving avg. $70.96
Annualized volatility 17.2%
Short interest (ETF) 0.2%
Short interest (Underlying) 2.2%
Relative strength (RSI) 75

Liquidity measures
Avg. volume (thou.) 470
Turnover 0.5%
Bid/Ask (% of price) 0.03%
ADV underlying (mns) $19,345

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard Financials 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™: 7.4%


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 98.7 8 2 7.5 +0.0
XLF Financials Select Sector SPDR 79.5 13 -3 7.1 -0.3
IEFN iShares Evolved U.S. Financials 72.4 18 -8 7.5 +0.0
RWW Invesco S&P Financials Revenue 68.6 45 -35 7.4 -0.0
IYF iShares DJ US Financials 68.2 42 -32 6.2 -1.2
JHMF John Hancock Multifactor Financials 65.9 40 -30 6.7 -0.7
IYG iShares DJ US Financial Services 65.7 42 -32 6.5 -0.9
RYF Invesco S&P Equal Weight Financials 51.0 40 -30 7.5 +0.1
IXG iShares S&P Global Financial Sector 48.4 46 -36 8.4 +1.0
DFNL Davis Select Financial 37.9 64 -54 6.8 -0.6
KBWB Invesco KBW Bank Portfolio 37.5 35 -25 7.8 +0.3
FXO First Trust Financial Alphadex 34.1 63 -53 8.0 +0.6
FTXO First Trust Nasdaq Bank 32.6 60 -50 7.8 +0.4
SPVU Invesco S&P 500 Value 31.8 13 -3 11.1 +3.7
IWX iShares Russell Top 200 Value 26.6 20 -10 7.0 -0.4
PWV Invesco Dynamic Large Cap Value 25.0 55 -45 8.0 +0.5
AMCA iShares Russell 1000 Pure U.S. Revenue 24.7 15 -5 6.6 -0.9
KBE KBW Bank ETF 24.2 35 -25 8.3 +0.9
IWD iShares Russell 1000 Value 24.1 19 -9 7.0 -0.4
DUSA Davis Select U.S. Equity 24.0 63 -53 5.1 -2.3

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 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
  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 Financials
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 10.4 %
Divided by: Fwd. P/BV 1.4 x
Less: Expense ratio 10 bp
Equals: ALTAR Score 7.4 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.61 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.
 

 

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.