ETF Research Center

VFMF is an actively managed fund that invests in US equities exhibiting value, momentum, quality, and low volatility factors. The fund seeks long-term capital appreciation.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard
Website	www.vangaurd.com
Inception date	Feb 13, 2018
Assets (mns)	$101
Currency	USD
Expense ratio	18 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	603
Wgt avg mkt cap (mns)	$56,652
Large cap (>$10bn)	48.5%
Mid cap ($2-10bn)	32.4%
Small cap (<$2bn)	19.2%
Developed mkts	99.8%
Emerging mkts	0.2%

TOP TEN HOLDINGS
Total	8.5 %
TARGET CORP	1.3 %
INTEL CORP	1.0 %
SANTANDER CONSUMER USA HOLDI	0.9 %
JPMORGAN CHASE & CO	0.9 %
CITIGROUP INC	0.8 %
NXP SEMICONDUCTORS NV	0.8 %
PROCTER & GAMBLE CO/THE	0.8 %
BANK OF AMERICA CORP	0.7 %
LAM RESEARCH CORP	0.7 %
MERCK & CO. INC.	0.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	91.3 %
	IRELAND	2.5 %
	NETHERLANDS	1.0 %
	BRITAIN	1.0 %
	BERMUDA	0.6 %
	SWITZERLAND	0.6 %
	PUERTO RICO	0.5 %
	MONACO	0.2 %
	ISRAEL	0.2 %
	CAYMAN ISLANDS	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-3.6%	8.5%	--	--	2.8%

Market Correlations
versus...	Beta	R-squared
S&P500	1.09	91%
MSCI EAFE	1.10	69%
MSCI Emg. Mkts.	0.76	53%

Technical Indicators
Recent close	$81.14
30d moving avg.	$81.00
Annualized volatility	16.2%
Short interest (ETF)	0.0%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	10
Turnover	0.8%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$70,939

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard U.S. Multifactor ETF ETF based on the alternatives' overlap in portfolio holdings with VFMF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VFMF

Expense:

18 bp

ALTAR Score™:

7.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VFMF
Ticker	Fund Name	Overlap¹ vs VFMF (%)	Expense ratio (bp)	Savings vs VFMF (bp)	ALTAR Score™ (%)	ALTAR vs VFMF (%)
VFQY	Vanguard U.S. Quality Factor	43.6	13	5	3.4	-4.1
AVUS	Avantis U.S. Equity	34.9	15	3	5.9	-1.5
VFVA	Vanguard U.S. Value Factor	33.3	13	5	8.9	+1.5
EXT	WisdomTree Total Earnings	32.8	28	-10	6.7	-0.7
TUSA	First Trust Total US Market AlphaDEX	32.5	70	-52	6.1	-1.4
FNDB	Schwab Fundamental Broad Mkt	31.4	25	-7	5.6	-1.8
FAB	First Trust Multi Cap Value	31.4	71	-53	8.3	+0.9
VLU	SPDR S&P 1500 Value Tilt	31.3	12	6	7.1	-0.3
ONEO	SPDR Russell 1000 Momentum Focus	30.7	20	-2	6.6	-0.8
TILT	Flexshares Morningstar US Market Factor Tilt	30.7	25	-7	5.8	-1.6
PRF	Invesco FTSE-RAFI U.S. 1000	30.5	39	-21	6.3	-1.1
FNDX	Schwab Fundamental Large Cap	30.4	25	-7	5.5	-1.9
JHML	John Hancock Multifactor Large Cap	30.2	34	-16	5.6	-1.8
BFOR	Barron's 400	30.1	66	-48	5.6	-1.8
VFMO	Vanguard U.S. Momentum Factor	29.6	13	5	3.3	-4.2
OMOM	Invesco Russell 1000 Momentum Factor ETF	29.5	19	-1	5.8	-1.6
EPS	WisdomTree Earnings 500	29.5	8	10	6.7	-0.7
DEUS	Xtrackers Russell 1000 Comprehensive Factor	28.7	17	1	6.5	-0.9
USEQ	Invesco Russell 1000 Enhanced Equal Weight	28.6	29	-11	6.5	-1.0
DIVB	iShares U.S. Dividend & Buyback	28.5	25	-7	6.6	-0.8

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	**	**	**	**	**	**	**
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 U.S. Multifactor ETF
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	15.5	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	18	bp
Equals: ALTAR Score	7.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.56

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.