Vanguard Financials Index Fund
ALTAR
Score™		 9.0% info Recommen-
dation		 SPECULATIVE
2020E    2021E
P/E
ratio		 16.3x P/Sales
ratio		 2.0x
P/BV
ratio		 1.1x Div.
yield		 3.1%


  • 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) $5,840
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 428
Wgt avg mkt cap (mns) $108,112
Large cap (>$10bn) 81.0%
Mid cap ($2-10bn) 13.6%
Small cap (<$2bn) 5.4%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
JPMORGAN CHASE & CO 9.3 %
BERKSHIRE HATHAWAY INC-CL B 8.0 %
BANK OF AMERICA CORP 6.0 %
CITIGROUP INC 3.5 %
WELLS FARGO & CO 3.2 %
BLACKROCK INC 2.7 %
S&P GLOBAL, INC. 2.6 %
AMERICAN EXPRESS CO 2.1 %
GOLDMAN SACHS GROUP INC 2.1 %
CME GROUP INC 1.9 %
Total 41.4 %

TOP COUNTRY EXPOSURE
UNITED STATES 95.4 %
BRITAIN 2.4 %
SWITZERLAND 1.8 %
BERMUDA 1.5 %
PUERTO RICO 0.2 %
CAYMAN ISLANDS 0.1 %





HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru June 30)
Year-to-date 1 year 5 years 10 years Since Incep.
-23.9% -14.8% 5.1% 9.5% 3.0%

Market Correlations
versus... Beta R-squared
S&P500 1.21 86%
MSCI EAFE 1.26 81%
MSCI Emg. Mkts. 0.90 66%

Technical Indicators
Recent close $56.49
30d moving avg. $58.78
Annualized volatility 22.1%
Short interest (ETF) 0.3%
Short interest (Underlying) 2.2%
Relative strength (RSI) 53

Liquidity measures
Avg. volume (thou.) 1,132
Turnover 1.1%
Bid/Ask (% of price) 0.04%
ADV underlying (mns) $31,996

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 100 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™: 9.0%


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 99.2 8 2 9.0 +0.0
XLF Financial Select Sector SPDR Fund 80.4 13 -3 8.5 -0.5
IEFN iShares Evolved U.S. Financials ETF 70.8 18 -8 9.5 +0.5
IYG iShares US Financial Services ETF 65.6 42 -32 7.0 -2.0
IYF iShares U.S. Financials ETF 64.5 42 -32 7.2 -1.8
JHMF John Hancock Multifactor Financials ETF 63.8 40 -30 7.9 -1.1
RYF Invesco S&P 500 Equal Weight Financials ETF 53.2 40 -30 9.9 +0.9
IXG iShares Global Financials ETF 46.9 46 -36 10.1 +1.0
DFNL Davis Select Financial ETF 34.2 64 -54 8.6 -0.4
KBWB Invesco KBW Bank ETF 31.9 35 -25 10.5 +1.5
FXO First Trust Financials AlphaDEX Fund 30.8 63 -53 11.8 +2.8
SPVU Invesco S&P 500 Enhanced Value ETF 30.1 13 -3 11.5 +2.5
PKW Invesco Buyback Achievers ETF 28.9 62 -52 6.9 -2.2
FTXO First Trust Nasdaq Bank ETF 26.5 60 -50 9.1 +0.1
KCE SPDR S&P Capital Markets ETF 25.7 35 -25 9.0 -0.1
PWV Invesco Dynamic Large Cap Value ETF 25.1 55 -45 8.9 -0.1
DUSA Davis Select U.S. Equity ETF 21.7 63 -53 5.8 -3.2
KBE SPDR S&P Bank ETF 21.6 35 -25 11.7 +2.7
RAFE PIMCO RAFI ESG U.S. ETF 21.4 29 -19 7.9 -1.1
REVS Columbia Research Enhanced Value ETF 21.0 19 -9 7.8 -1.2
RPV Invesco S&P 500 Pure Value ETF 20.7 35 -25 11.3 +2.3
VONV Vanguard Russell 1000 Value Index Fund 20.6 8 2 7.4 -1.7
VLU SPDR S&P 1500 Value Tilt ETF 20.6 12 -2 7.5 -1.5
VFVA Vanguard U.S. Value Factor ETF 20.4 14 -4 11.7 +2.7
KIE SPDR S&P Insurance ETF 20.1 35 -25 10.3 +1.3
IWX iShares Russell Top 200 Value ETF 19.7 20 -10 7.2 -1.8
DIVB iShares U.S. Dividend & Buyback ETF 19.6 25 -15 6.7 -2.3
MGV Vanguard Mega Cap Value ETF 19.2 7 3 7.3 -1.7
VTV Vanguard Value Index Fund 19.0 4 6 7.5 -1.5
AMCA iShares Russell 1000 Pure U.S. Revenue ETF 18.9 15 -5 6.9 -2.1
DGRO iShares Core Dividend Growth ETF 18.9 8 2 6.7 -2.3
JKF iShares Morningstar Large Cap Value ETF 18.4 25 -15 7.6 -1.4
VOOV Vanguard S&P 500 Value ETF 18.3 15 -5 7.4 -1.6
FTA First Trust Large Cap Value AlphaDEX Fund 18.3 60 -50 9.3 +0.3
IUSV iShares Core S&P U.S. Value ETF 18.2 4 6 7.6 -1.5
IWD iShares Russell 1000 Value ETF 18.2 19 -9 7.2 -1.8
VFLQ Vanguard U.S. Liquidity Factor ETF 18.0 14 -4 4.7 -4.3
SPYV SPDR Portfolio S&P 500 Value ETF 18.0 4 6 7.5 -1.5
IVE iShares S&P 500 Value ETF 18.0 18 -8 7.3 -1.7
FAB First Trust Multi Cap Value AlphaDEX Fund 17.9 71 -61 9.7 +0.7
SPYB SPDR S&P 500 Buyback ETF 17.6 0 10 0.0 -9.0
LVHB Innovator Lunt Low Vol/High Beta Tactical ETF 17.5 49 -39 9.4 +0.4
SPHB Invesco S&P 500 High Beta ETF 17.5 25 -15 9.6 +0.5
SPVM Invesco S&P 500 Value with Momentum ETF 17.3 39 -29 9.2 +0.2
TUSA First Trust Total US Market AlphaDEX ETF 16.4 70 -60 6.0 -3.0
FDL First Trust Morningstar Dividend Leaders Index Fund 16.0 45 -35 10.3 +1.3
CFA VictoryShares US 500 Volatility Weighted Index ETF 16.0 35 -25 6.0 -3.1
SCHV Schwab U.S. Large-Cap Value ETF 15.8 4 6 7.2 -1.8
PRF Invesco FTSE RAFI US 1000 ETF 15.8 39 -29 6.9 -2.1
CVY Invesco Zacks Multi-Asset Income ETF 15.7 97 -87 11.6 +2.6
IAK iShares U.S. Insurance ETF 15.7 43 -33 9.9 +0.9
TILT Flexshares Morningstar US Market Factors Tilt Index Fund 15.6 25 -15 6.7 -2.4
VYM Vanguard High Dividend Yield Index ETF 15.5 6 4 7.4 -1.6
FEX First Trust Large Cap Core AlphaDEX Fund 15.5 60 -50 6.0 -3.0
TTFS AdvisorShares Wilshire Buyback ETF 15.4 91 -81 6.2 -2.8
PY Principal Shareholder Yield Index ETF 15.3 29 -19 9.6 +0.6
EPS WisdomTree U.S. Earnings 500 Fund 15.3 8 2 6.5 -2.5
FLV American Century Focused Large Cap Value ETF 15.3 42 -32 6.8 -2.2
USDY Pacific Global US Equity Income ETF 15.3 29 -19 7.3 -1.7
NULV Nuveen ESG Large-Cap Value ETF 15.2 35 -25 7.4 -1.6
VETS Pacer Military Times Best Employers ETF 15.1 60 -50 7.0 -2.1
IWS iShares Russell Mid-Cap Value ETF 15.0 24 -14 7.3 -1.7
LGLV SPDR Russell 1000 Low Volatility ETF 14.8 12 -2 5.7 -3.3
SIZE iShares Edge MSCI USA Size Factor ETF 14.7 15 -5 6.4 -2.7
USEQ Invesco Russell 1000 Enhanced Equal Weight ETF 14.7 29 -19 6.8 -2.2
EUSA iShares MSCI USA Equal Weighted ETF 14.6 15 -5 6.3 -2.7
SYV SPDR MFS Systematic Value Equity ETF 14.2 60 -50 7.5 -1.5
RDVY First Trust Rising Dividend Achievers ETF 14.2 50 -40 8.0 -1.0
EQWL Invesco Russell Top 200 Equal Weight ETF 14.1 25 -15 6.2 -2.9
FMK First Trust Mega Cap AlphaDEX Fund 14.0 70 -60 5.2 -3.8
MOAT VanEck Vectors Morningstar Wide Moat ETF 13.9 49 -39 6.4 -2.6
PFI Invesco DWA Financial Momentum ETF 13.6 60 -50 3.6 -5.4
SPXT ProShares S&P 500 Ex-Technology ETF 13.6 27 -17 5.7 -3.3
AVUS Avantis U.S. Equity ETF 13.6 15 -5 5.8 -3.2
DTD WisdomTree U.S.Total Dividend Fund 13.5 28 -18 6.7 -2.3
DURA VanEck Vectors Morningstar Durable Dividend ETF 13.4 29 -19 7.2 -1.8
SCIU Global X Scientific Beta US ETF 13.2 19 -9 5.8 -3.2
PBSM Invesco PureBeta MSCI USA Small Cap ETF 13.1 6 4 5.4 -3.6
FNDB Schwab Fundamental U.S. Broad Market Index ETF 13.1 25 -15 6.6 -2.4
FNDX Schwab Fundamental U.S. Large Co. Index ETF 13.1 25 -15 6.6 -2.4
RWL Invesco S&P 500 Revenue ETF 13.0 39 -29 7.3 -1.7
VXF Vanguard Extended Market Index Fund 13.0 7 3 3.8 -5.2
AUSF Global X Adaptive U.S. Factor ETF 13.0 27 -17 8.0 -1.0
VFQY Vanguard U.S. Quality Factor ETF 12.9 13 -3 6.1 -2.9
GSEW Goldman Sachs Equal Weight U.S. Large Cap Equity ETF 12.7 9 1 5.9 -3.1
SCHD Schwab U.S. Dividend Equity ETF 12.6 6 4 8.3 -0.7
KRE SPDR S&P Regional Banking ETF 12.6 35 -25 11.5 +2.5
TTAC TrimTabs All Cap U.S. Free-Cash-Flow ETF 12.5 59 -49 3.7 -5.4
RSP Invesco S&P 500 Equal Weight ETF 12.5 20 -10 6.8 -2.2
QUS SPDR MSCI USA StrategicFactors ETF 12.5 15 -5 5.9 -3.1
DLN WisdomTree U.S. LargeCap Dividend Fund 12.4 28 -18 6.4 -2.6
JHMM John Hancock Multifactor Mid Cap ETF 12.3 42 -32 5.8 -3.2
VFMF Vanguard U.S. Multifactor ETF 12.3 19 -9 7.3 -1.7
SCHA Schwab U.S. Small-Cap ETF 12.0 4 6 4.7 -4.3
IAI iShares U.S. Broker-Dealers ETF 12.0 42 -32 6.9 -2.1
JKI iShares Morningstar Mid-Cap Value ETF 11.9 30 -20 9.3 +0.3
IAT iShares U.S. Regional Banks ETF 11.8 42 -32 11.2 +2.1
EQRR ProShares Equities for Rising Rates ETF 11.8 35 -25 6.1 -2.9
ETHO Etho Climate Leadership U.S. ETF 11.8 47 -37 4.4 -4.6
FDVV Fidelity Core Dividend ETF 11.8 29 -19 7.2 -1.9

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 9.4 %
Divided by: Fwd. P/BV 1.0 x
Less: Expense ratio 10 bp
Equals: ALTAR Score 9.0 %
info More information on ALTAR Score™
MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING		 1.56 CATEGORY
AVERAGE		 1.52
 
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.