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)	$2,348
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	114
Wgt avg mkt cap (mns)	$387,842
Large cap (>$10bn)	84.3%
Mid cap ($2-10bn)	12.2%
Small cap (<$2bn)	3.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	67.7 %
FACEBOOK	14.5 %
ALPHABET INC. CLASS C	12.2 %
ALPHABET INC. CLASS A	11.5 %
AT&T INC	7.2 %
NETFLIX INC	5.4 %
COMCAST CORP-CL A	4.1 %
VERIZON COMMUNICATIONS INC	4.0 %
WALT DISNEY CO/THE	3.9 %
CHARTER COMMUNICATIONS, INC. CLASS	3.1 %
ACTIVISION BLIZZARD INC	1.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.7 %
	BRITAIN	0.4 %
	CANADA	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
0.6%	16.5%	5.4%	9.3%	7.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.82	61%
MSCI EAFE	0.77	44%
MSCI Emg. Mkts.	0.47	29%

Technical Indicators
Recent close	$100.17
30d moving avg.	$97.67
Annualized volatility	12.7%
Short interest (ETF)	0.5%
Short interest (Underlying)	4.2%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	131
Turnover	0.6%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$20,054

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard Telecommunication Services Index Fund 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™:

4.8%

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	97.2	8	2	4.9	+0.1
XLC	Communication Services Select Sector SPDR	75.8	13	-3	5.7	+0.9
IXP	iShares S&P Global Comm. Services	68.3	46	-36	5.9	+1.0
JHCS	John Hancock Multifactor Media & Communications	63.6	40	-30	5.5	+0.6
EWCO	Invesco S&P 500 Equal Weight Comm. Services	47.6	40	-30	6.2	+1.3
IEME	iShares Evolved U.S. Media and Entertainment	39.4	18	-8	6.0	+1.2
PNQI	Invesco Nasdaq Internet	25.5	62	-52	2.3	-2.5
PBS	Invesco Dyn Media Port	24.1	63	-53	3.0	-1.8
FDN	First Trust DJ Internet	23.4	52	-42	2.9	-1.9
IYC	iShares DJ US Consumer Services	22.3	42	-32	4.5	-0.3
QYLD	Global X NASDAQ 100 Covered Call ETF	21.2	60	-50	4.3	-0.5
TTTN	TigerShares China-U.S. Internet Titans	21.0	59	-49	3.5	-1.3
QQQ	Invesco QQQ	20.1	20	-10	4.5	-0.3
NUSI	Nationwide Risk-Managed Income ETF	19.5	68	-58	4.3	-0.6
SOCL	Global X Social Media	19.0	65	-55	2.9	-2.0
ENTR	ERShares Entrepreneur 30	18.7	49	-39	2.6	-2.2
TMFC	Motley Fool 100 Index	18.1	50	-40	3.9	-1.0
XLG	Invesco S&P Top 50	17.7	20	-10	4.9	+0.1
IGM	iShares S&P N. American Technology	17.4	46	-36	4.1	-0.8
IYZ	iShares U.S. Telecommunications	17.2	42	-32	7.4	+2.6

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Vanguard Telecommunication Services Index Fund
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.6	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	4.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.39	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.