ETF Research Center

The Vanguard FTSE Europe ETF seeks to track the performance of the FTSE Developed Europe All Cap Index, which measures the investment return of stocks issued by companies located in the major markets of Europe.

FUND BASICS
Category	International Equities
Fund Sponsor	Vanguard
Website	www.vanguard.com
Inception date	Mar 10, 2005
Assets (mns)	$13,334
Currency	USD
Expense ratio	9 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	1342
Wgt avg mkt cap (mns)	$68,578
Large cap (>$10bn)	79.4%
Mid cap ($2-10bn)	17.0%
Small cap (<$2bn)	3.4%
Developed mkts	99.3%
Emerging mkts	0.7%

TOP TEN HOLDINGS
Total	15.5 %
NESTLE SA-REG	2.9 %
ROCHE HOLDING AG-GENUSSCHEIN	2.1 %
NOVARTIS AG-REG	1.8 %
HSBC HOLDINGS PLC	1.5 %
SAP AG	1.3 %
TOTAL SA	1.3 %
BP PLC	1.3 %
ASTRAZENECA PLC	1.2 %
ROYAL DUTCH SHELL PLC-B SHS	1.1 %
LVMH MOET HENNESSY LOUIS VUI	1.1 %

TOP COUNTRY EXPOSURE
	BRITAIN	24.7 %
	FRANCE	14.2 %
	SWITZERLAND	13.9 %
	GERMANY	13.2 %
	NETHERLANDS	6.2 %
	SWEDEN	4.5 %
	SPAIN	4.2 %
	ITALY	3.8 %
	DENMARK	2.7 %
	BELGIUM	1.8 %

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.
17.9%	11.4%	3.9%	5.5%	4.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.76	54%
MSCI EAFE	1.10	95%
MSCI Emg. Mkts.	0.73	70%

Technical Indicators
Recent close	$56.27
30d moving avg.	$54.59
Annualized volatility	12.5%
Short interest (ETF)	1.5%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	3,432
Turnover	1.5%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$29,506

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VGK

Expense:

9 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VGK
Ticker	Fund Name	Overlap¹ vs VGK (%)	Expense ratio (bp)	Savings vs VGK (bp)	ALTAR Score™ (%)	ALTAR vs VGK (%)
IEUR	iShares Core MSCI Europe	91.1	9	0	6.9	-0.0
FEU	SPDR DJ Stoxx 50	90.5	9	0	6.9	-0.1
FLEE	Franklin FTSE Europe	87.5	9	0	6.9	-0.0
FLEH	Franklin FTSE Europe Hedged	87.5	9	0	6.9	-0.1
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	87.4	30	-21	6.7	-0.3
BBEU	JPMorgan BetaBuilders Europe	83.8	9	0	6.9	-0.0
DBEU	Xtrackers Europe Hedged	83.1	45	-36	6.4	-0.5
IEV	iShares S&P Europe 350	80.6	59	-50	6.4	-0.5
GSEU	Goldman Sachs ActiveBeta Europe Equity	67.6	25	-16	6.5	-0.5
EFA	iShares MSCI EAFE	60.1	31	-22	7.0	+0.0
EFAX	SPDR MSCI EAFE Fossil Fuel Free	58.6	20	-11	7.1	+0.2
DBEF	Xtrackers MSCI EAFE Hedged	58.5	35	-26	6.8	-0.1
IEFA	iShares Core MSCI EAFE	58.3	7	2	7.1	+0.1
HFXI	IQ 50 Percent Hedged FTSE Int'l	56.8	20	-11	7.2	+0.3
PBDM	Invesco PureBeta FTSE Developed ex-North America	56.5	7	2	7.5	+0.6
ESGD	iShares MSCI EAFE ESG Optimized	52.9	20	-11	6.9	-0.1
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	52.8	35	-26	7.8	+0.9
DWM	WisdomTree DEFA Fund	52.7	48	-39	7.7	+0.7
SCHF	Schwab International Equity	52.4	6	3	7.4	+0.4
IDEV	iShares Core MSCI Int'l Developed Markets	52.3	5	4	7.1	+0.2

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 FTSE Europe
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	11.0	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.