ETF Research Center

Vanguard Information Technology Index ETF seeks to track the performance of the MSCI US Investable Market Information Technology Index. The Fund invests all of its assets in the stocks that ma

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$24,003
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	323
Wgt avg mkt cap (mns)	$507,054
Large cap (>$10bn)	90.7%
Mid cap ($2-10bn)	7.9%
Small cap (<$2bn)	1.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	56.5 %
APPLE INC	18.1 %
MICROSOFT CORP	16.0 %
VISA INC-CLASS A SHARES	4.3 %
MASTERCARD INC-CLASS A	3.8 %
INTEL CORP	3.7 %
CISCO SYSTEMS INC	2.7 %
ADOBE SYSTEMS INC	2.2 %
SALESFORCE.COM INC	1.9 %
ORACLE CORP	1.9 %
ACCENTURE PLC-CL A	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.5 %
	IRELAND	2.1 %
	SWITZERLAND	0.5 %
	BERMUDA	0.2 %
	SINGAPORE	0.1 %
	ISRAEL	0.1 %
	CAYMAN ISLANDS	0.0 %
	BRITAIN	0.0 %
	PUERTO RICO	0.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
43.0%	31.1%	18.8%	17.7%	11.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.16	76%
MSCI EAFE	1.01	48%
MSCI Emg. Mkts.	0.72	39%

Technical Indicators
Recent close	$234.91
30d moving avg.	$229.99
Annualized volatility	16.0%
Short interest (ETF)	0.4%
Short interest (Underlying)	2.5%
Relative strength (RSI)	71

Liquidity measures
Avg. volume (thou.)	469
Turnover	0.5%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$46,707

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VGT

Expense:

10 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VGT
Ticker	Fund Name	Overlap¹ vs VGT (%)	Expense ratio (bp)	Savings vs VGT (bp)	ALTAR Score™ (%)	ALTAR vs VGT (%)
FTEC	Fidelity MSCI Info Technology	99.0	8	2	5.5	+0.0
XLK	Technology Select Sector SPDR	86.8	13	-3	5.6	+0.1
IXN	iShares S&P Global Technology	79.1	46	-36	5.3	-0.1
IYW	iShares US Technology	74.8	42	-32	5.2	-0.2
IGM	iShares S&P N. American Technology	71.3	46	-36	4.6	-0.8
IETC	iShares Evolved U.S. Technology	68.6	18	-8	4.8	-0.6
JHMT	John Hancock Multifactor Technology	54.4	40	-30	6.1	+0.6
QYLD	Global X NASDAQ 100 Covered Call ETF	46.8	60	-50	4.8	-0.7
QQQ	Invesco QQQ	45.9	20	-10	5.2	-0.3
RYT	Invesco S&P Equal Weight Technology	43.2	40	-30	6.4	+1.0
TDIV	First Trust NASDAQ Technology Dividend	42.5	50	-40	6.7	+1.3
IWY	iShares Russell Top 200 Growth	39.7	20	-10	5.0	-0.4
MGK	Vanguard Mega Cap 300 Growth	39.5	7	3	5.0	-0.4
IWF	iShares Russell 1000 Growth	38.1	19	-9	5.0	-0.5
VONG	Vanguard Russell 1000 Growth	37.9	12	-2	5.1	-0.4
VUG	Vanguard Growth ETF	37.3	4	6	4.9	-0.6
SPHQ	Invesco S&P High Quality Portfolio	37.2	15	-5	5.6	+0.2
TMFC	Motley Fool 100 Index	35.4	50	-40	4.3	-1.1
XNTK	SPDR NYSE Technology	35.0	35	-25	5.6	+0.2
SCHG	Schwab U.S. Large-Cap Growth	34.4	4	6	4.9	-0.6

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 Info Tech ETF
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	29.0	%
Divided by: Fwd. P/BV	5.2	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	5.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	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.