ETF Research Center

Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Sep 29, 2004
Assets (mns)	$2,200
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	113
Wgt avg mkt cap (mns)	$347,889
Large cap (>$10bn)	83.7%
Mid cap ($2-10bn)	12.9%
Small cap (<$2bn)	3.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	67.8 %
FACEBOOK	14.6 %
ALPHABET INC. CLASS C	12.0 %
ALPHABET INC. CLASS A	11.4 %
AT&T INC	7.9 %
COMCAST CORP-CL A	4.5 %
VERIZON COMMUNICATIONS INC	4.4 %
WALT DISNEY CO/THE	4.3 %
NETFLIX INC	4.1 %
CHARTER COMMUNICATIONS, INC. CLASS	2.9 %
ACTIVISION BLIZZARD INC	1.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	97.2 %
	BRITAIN	0.9 %
	CANADA	0.2 %

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.
21.4%	10.5%	3.3%	9.2%	7.0%

Market Correlations
versus...	Beta	R-squared
S&P500	0.83	57%
MSCI EAFE	0.78	42%
MSCI Emg. Mkts.	0.44	22%

Technical Indicators
Recent close	$90.96
30d moving avg.	$88.53
Annualized volatility	13.4%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.2%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	115
Turnover	0.5%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$15,943

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VOX

Expense:

10 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VOX
Ticker	Fund Name	Overlap¹ vs VOX (%)	Expense ratio (bp)	Savings vs VOX (bp)	ALTAR Score™ (%)	ALTAR vs VOX (%)
FCOM	Fidelity MSCI Communication Services	95.4	8	2	5.2	-0.2
XLC	Communication Services Select Sector SPDR	75.7	13	-3	6.4	+1.0
IXP	iShares S&P Global Comm. Services	67.2	46	-36	6.3	+1.0
JHCS	John Hancock Multifactor Media & Communications	62.8	40	-30	6.3	+0.9
EWCO	Invesco S&P 500 Equal Weight Comm. Services	46.9	40	-30	8.0	+2.6
IEME	iShares Evolved U.S. Media and Entertainment	38.3	18	-8	6.8	+1.4
PNQI	Invesco Nasdaq Internet	25.3	62	-52	2.9	-2.5
FDN	First Trust DJ Internet	23.8	52	-42	3.4	-2.0
IYC	iShares DJ US Consumer Services	22.1	42	-32	5.0	-0.3
ENTR	ERShares Entrepreneur 30	21.8	49	-39	4.0	-1.4
QYLD	Global X NASDAQ 100 Covered Call ETF	21.7	60	-50	4.9	-0.5
TTTN	TigerShares China-U.S. Internet Titans	21.6	59	-49	4.0	-1.4
QQQ	Invesco QQQ	20.9	20	-10	5.3	-0.1
SOCL	Global X Social Media	18.6	65	-55	4.7	-0.7
TMFC	Motley Fool 100 Index	18.5	50	-40	4.4	-1.0
OGIG	O'Shares Global Internet Giants	18.3	48	-38	1.6	-3.8
IYZ	iShares U.S. Telecommunications	18.1	42	-32	8.2	+2.8
XLG	Invesco S&P Top 50	18.0	20	-10	5.2	-0.2
IYW	iShares US Technology	17.8	42	-32	5.2	-0.2
PBS	Invesco Dyn Media Port	17.8	63	-53	6.4	+1.0

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 Communication Services
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	13.5	%
Divided by: Fwd. P/BV	2.5	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	1.37	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.