Vanguard Health Care
ALTAR
Score™
5.5% info Recommen-
dation
NEUTRAL
2019E    2020E
P/E
ratio
21.4x P/Sales
ratio
1.8x
P/BV
ratio
4.0x Div.
yield
1.4%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
Vanguard Health Care ETF seeks to track the performance of the MSCI US Investable Market Health Care Index.

FUND BASICS
Category US Equities
Fund Sponsor Vanguard Group Inc/The
Website www.vanguard.com
Inception date Jan 30, 2004
Assets (mns) $10,284
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 397
Wgt avg mkt cap (mns) $127,546
Large cap (>$10bn) 87.4%
Mid cap ($2-10bn) 8.4%
Small cap (<$2bn) 4.2%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
JOHNSON & JOHNSON 8.5 %
UNITEDHEALTH GROUP INC 6.1 %
MERCK & CO. INC. 5.1 %
PFIZER INC 4.8 %
MEDTRONIC PLC 3.5 %
ABBOTT LABORATORIES 3.4 %
AMGEN INC 3.1 %
THERMO FISHER SCIENTIFIC INC 2.9 %
ABBVIE INC 2.8 %
BRISTOL-MYERS SQUIBB CO 2.7 %
Total 43.0 %

TOP COUNTRY EXPOSURE
UNITED STATES 92.4 %
IRELAND 5.7 %
BRITAIN 0.5 %
NETHERLANDS 0.1 %
SWITZERLAND 0.0 %
CAYMAN ISLANDS 0.0 %
CANADA 0.0 %
PUERTO RICO 0.0 %
COSTA RICA 0.0 %
BERMUDA 0.0 %

HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru December 31)
Year-to-date 1 year 5 years 10 years Since Incep.
21.9% 21.9% 10.5% 15.2% 10.4%

Market Correlations
versus... Beta R-squared
S&P500 0.91 67%
MSCI EAFE 0.80 43%
MSCI Emg. Mkts. 0.57 37%

Technical Indicators
Recent close $196.84
30d moving avg. $191.02
Annualized volatility 13.5%
Short interest (ETF) 1.8%
Short interest (Underlying) 2.9%
Relative strength (RSI) 74

Liquidity measures
Avg. volume (thou.) 168
Turnover 0.3%
Bid/Ask (% of price) 0.04%
ADV underlying (mns) $28,122

Distributions


FINDING ALTERNATIVE FUNDS

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

Benchmark ticker: VHT Expense: 10 bp ALTAR Score™: 5.5%


ALTERNATIVE ETFs BASED ON OVERLAP WITH VHT
Ticker Fund
Name
Overlap1
vs VHT
(%)
Expense
ratio
(bp)
Savings
vs VHT
(bp)
ALTAR
Score™
(%)
ALTAR
vs VHT
(%)
FHLC Fidelity MSCI Health Care 98.1 8 2 5.5 -0.1
IYH iShares US Healthcare 90.8 43 -33 5.9 +0.4
XLV Health Care Select Sector SPDR 84.1 13 -3 6.8 +1.3
JHMH John Hancock Multifactor Health Care 77.3 40 -30 6.3 +0.8
IXJ iShares S&P Global Healthcare 67.8 46 -36 6.0 +0.5
IEHS iShares Evolved U.S. Healthcare Staples 57.5 18 -8 5.6 +0.0
RYH Invesco S&P Equal Weight Healthcare 55.1 40 -30 6.7 +1.1
IEIH iShares Evolved U.S. Innovative Healthcare 50.6 18 -8 3.8 -1.8
FXH First Trust Health Care Alphadex 40.1 63 -53 6.7 +1.1
PBE Invesco Dynamic Biotechnology & Genome 34.8 57 -47 10.5 +5.0
PJP Invesco Dynamic Pharmaceuticals 34.8 56 -46 10.5 +4.9
FTXH First Trust Nasdaq Pharmaceuticals 33.0 60 -50 4.1 -1.4
GDNA Goldman Sachs Motif Human Evolution 29.3 50 -40 1.0 -4.5
IHE iShares DJ US Pharmaceuticals 28.2 42 -32 4.9 -0.6
LNGR Global X Longevity Thematic 26.9 50 -40 3.2 -2.3
IHI iShares DJ US Medical Devices 26.4 43 -33 3.6 -1.9
PPH VanEck Vectors Pharmaceuticals 26.2 36 -26 8.9 +3.3
DURA VanEck Vectors Morningstar Durable Dividend 24.4 29 -19 6.5 +1.0
HLAL Wahed FTSE USA Shariah 23.7 50 -40 5.3 -0.3
SPHQ Invesco S&P 500 Quality 22.9 15 -5 5.4 -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 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

Content on this tab for subscribers only

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 Health Care
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 19.7 %
Divided by: Fwd. P/BV 3.5 x
Less: Expense ratio 10 bp
Equals: ALTAR Score 5.5 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.39 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.