ETF Research Center

Vanguard Industrials ETF seeks to track the performance of the MSCI US Investable Market Industrials Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Sep 29, 2004
Assets (mns)	$3,648
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	354
Wgt avg mkt cap (mns)	$56,112
Large cap (>$10bn)	78.2%
Mid cap ($2-10bn)	17.1%
Small cap (<$2bn)	4.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	34.5 %
BOEING CO	6.2 %
HONEYWELL INTERNATIONAL INC	4.1 %
UNION PACIFIC CORP	3.9 %
UNITED TECHNOLOGIES CORP	3.8 %
GENERAL ELECTRIC CO	3.1 %
LOCKHEED MARTIN CORP	3.1 %
3M CO	3.1 %
UNITED PARCEL SERVICE-CL B	2.7 %
CATERPILLAR INC	2.6 %
RAYTHEON COMPANY	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	92.8 %
	IRELAND	3.7 %
	BRITAIN	1.5 %
	CANADA	0.8 %
	BERMUDA	0.1 %

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.
24.6%	15.0%	9.3%	14.2%	9.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.28	85%
MSCI EAFE	1.08	51%
MSCI Emg. Mkts.	0.71	36%

Technical Indicators
Recent close	$152.71
30d moving avg.	$150.15
Annualized volatility	16.8%
Short interest (ETF)	0.7%
Short interest (Underlying)	3.5%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	76
Turnover	0.3%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$18,174

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VIS

Expense:

10 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VIS
Ticker	Fund Name	Overlap¹ vs VIS (%)	Expense ratio (bp)	Savings vs VIS (bp)	ALTAR Score™ (%)	ALTAR vs VIS (%)
FIDU	Fidelity Industrials	95.4	8	2	6.0	-0.3
XLI	Industrials Select Sector SPDR	76.2	13	-3	6.2	-0.1
IYJ	iShares DJ US Industrials	70.4	42	-32	5.4	-0.9
JHMI	John Hancock Multifactor Industrials	63.6	40	-30	6.7	+0.4
RGI	Invesco S&P Equal Weight Industrials	55.1	40	-30	6.7	+0.4
EXI	iShares Global Industrials	52.0	46	-36	6.1	-0.2
FXR	First Trust Industrials/Producer Durables	35.4	62	-52	7.0	+0.7
PPA	Invesco Aero & Defense	28.0	59	-49	5.1	-1.2
BIBL	Inspire 100	27.1	35	-25	5.6	-0.7
ITA	iShares U.S. Aerospace & Defense	24.1	42	-32	5.4	-0.9
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	23.3	60	-50	6.8	+0.4
VIG	Vanguard Dividend Appreciation	22.4	6	4	5.5	-0.9
XAR	SPDR S&P Aerospace & Defense	21.3	35	-25	5.0	-1.4
XKFF	SPDR Kensho Final Frontiers	20.9	45	-35	4.9	-1.4
MAGA	Point Bridge GOP Stock Tracker	20.4	72	-62	6.6	+0.2
TPLC	Timothy Plan US Large Cap Core	19.0	52	-42	5.6	-0.8
JKD	iShares Morningstar Large Companies	18.5	20	-10	5.8	-0.6
DGRW	WisdomTree US Dividend Growth	18.1	28	-18	6.7	+0.4
DSTL	Distillate US Fundamental Stability & Value	17.2	39	-29	7.3	+0.9
ONEO	SPDR Russell 1000 Momentum Focus	17.2	20	-10	6.5	+0.1

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 Industrials
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	21.6	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	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.