ETF Research Center

Vanguard REIT ETF seeks to track the performance of the MSCI REIT Index. The Fund invests in the stocks that make up the Index, holding each stock in the same proportion as its weighting in the

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Sep 29, 2004
Assets (mns)	$36,491
Currency	USD
Expense ratio	12 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	JPMorgan Chase Bank
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	183
Wgt avg mkt cap (mns)	$22,572
Large cap (>$10bn)	62.7%
Mid cap ($2-10bn)	31.6%
Small cap (<$2bn)	5.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	31.8 %
AMERICAN TOWER CORP-CL A	6.5 %
PROLOGIS INC	3.9 %
CROWN CASTLE INTL CORP	3.9 %
SIMON PROPERTY GROUP INC	3.4 %
EQUINIX INC	3.2 %
WELLTOWER, INC.	2.4 %
PUBLIC STORAGE	2.4 %
EQUITY RESIDENTIAL	2.2 %
AVALONBAY COMMUNITIES INC	2.1 %
SBA COMMUNICATIONS CORP. CLASS A	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	87.4 %
	BRITAIN	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.
29.6%	25.0%	8.1%	13.5%	9.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.52	26%
MSCI EAFE	0.37	11%
MSCI Emg. Mkts.	0.21	6%

Technical Indicators
Recent close	$91.29
30d moving avg.	$93.34
Annualized volatility	12.4%
Short interest (ETF)	4.0%
Short interest (Underlying)	3.2%
Relative strength (RSI)	42

Liquidity measures
Avg. volume (thou.)	3,608
Turnover	0.9%
Bid/Ask (% of price)	0.01%
ADV underlying (mns)	$7,301

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Vanguard REIT ETF ETF based on the alternatives' overlap in portfolio holdings with VNQ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VNQ

Expense:

12 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VNQ
Ticker	Fund Name	Overlap¹ vs VNQ (%)	Expense ratio (bp)	Savings vs VNQ (bp)	ALTAR Score™ (%)	ALTAR vs VNQ (%)
FREL	Fidelity MSCI Real Estate	87.4	8	4	6.2	+0.0
IYR	iShares U.S. Real Estate	81.2	42	-30	5.9	-0.3
BBRE	JPMorgan BetaBuilders MSCI U.S. REIT	69.1	11	1	6.4	+0.3
USRT	iShares Core. U.S. REIT	69.0	8	4	6.6	+0.4
PSR	Invesco Active US Real Estate	68.7	35	-23	5.5	-0.6
FRI	First Trust S&P REIT	68.6	50	-38	6.1	-0.1
REET	iShares Global REIT	63.1	14	-2	6.3	+0.1
XLRE	Real Estate Select Sector SPDR	54.6	13	-1	5.4	-0.7
FFR	First Trust FTSE EPRA/NAREIT Global Real Estate	54.2	60	-48	6.2	+0.0
PPTY	PPTY-U.S. Diversified Real Estate	52.8	53	-41	5.4	-0.8
SCHH	Schwab US REIT	50.7	7	5	6.5	+0.4
RWR	SPDR Dow Jones REIT ETF	50.7	25	-13	6.3	+0.2
RWO	SPDR DJ Global Real Estate	50.7	50	-38	6.0	-0.1
EWRE	Invesco S&P 500 Equal Weight Real Estate	49.3	40	-28	5.6	-0.5
ICF	iShares Cohen & Steers Realty Majors	47.6	34	-22	5.3	-0.8
GRI	Cohen & Steers Global Realty	44.9	55	-43	5.8	-0.3
GQRE	FlexShares Global Quality Real Estate	31.6	45	-33	6.5	+0.3
REZ	iShares Residential Real Estate Capped	25.6	48	-36	5.2	-1.0
RORE	Hartford Multifactor REIT	24.6	45	-33	13.0	+6.9

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 REIT 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	14.8	%
Divided by: Fwd. P/BV	2.4	x
Less: Expense ratio	12	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.61	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.