ETF Research Center

Vanguard Pacific ETF seeks to track the performance of the MSCI Pacific Index.

FUND BASICS
Category	International Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Mar 10, 2005
Assets (mns)	$3,908
Currency	USD
Expense ratio	9 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	2324
Wgt avg mkt cap (mns)	$43,780
Large cap (>$10bn)	66.8%
Mid cap ($2-10bn)	24.1%
Small cap (<$2bn)	9.1%
Developed mkts	88.3%
Emerging mkts	11.7%

TOP TEN HOLDINGS
Total	15.4 %
SAMSUNG ELECTRONICS CO LTD	3.4 %
TOYOTA MOTOR CORP	2.4 %
AIA GROUP LTD	1.8 %
COMMONWEALTH BANK OF AUSTRAL	1.4 %
CSL LIMITED	1.3 %
SONY CORP	1.2 %
BHP BILLITON LTD	1.1 %
SOFTBANK GROUP CORP.	1.0 %
MITSUBISHI UFJ FINANCIAL GRO	0.9 %
KEYENCE CORP	0.9 %

TOP COUNTRY EXPOSURE
	JAPAN	57.4 %
	AUSTRALIA	16.3 %
	SOUTH KOREA	11.3 %
	HONG KONG	7.6 %
	SINGAPORE	2.8 %
	NEW ZEALAND	0.9 %
	CHINA	0.4 %
	MACAU	0.3 %
	BRITAIN	0.2 %
	BERMUDA	0.2 %

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.
18.1%	18.1%	7.0%	6.1%	5.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.81	70%
MSCI EAFE	0.98	84%
MSCI Emg. Mkts.	0.72	79%

Technical Indicators
Recent close	$70.86
30d moving avg.	$70.01
Annualized volatility	11.7%
Short interest (ETF)	0.1%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	304
Turnover	0.6%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$24,453

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VPL

Expense:

9 bp

ALTAR Score™:

7.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VPL
Ticker	Fund Name	Overlap¹ vs VPL (%)	Expense ratio (bp)	Savings vs VPL (bp)	ALTAR Score™ (%)	ALTAR vs VPL (%)
IPAC	iShares Core MSCI Pacific	76.2	9	0	7.2	-0.3
FLJP	Franklin FTSE Japan	53.3	9	0	7.8	+0.4
FLJH	Franklin FTSE Japan Hedged	53.3	9	0	7.7	+0.3
HFXJ	IQ 50 Percent Hedged FTSE Japan	53.3	30	-21	7.5	+0.1
BBJP	JPMorgan BetaBuilders Japan	50.4	19	-10	7.7	+0.3
EWJ	iShares MSCI Japan	49.3	47	-38	7.4	+0.0
DBJP	Xtrackers MSCI Japan Hedged	49.0	45	-36	7.3	-0.2
QJPN	SPDR MSCI Japan Quality Mix	48.8	14	-5	7.8	+0.4
GSJY	Goldman Sachs ActiveBeta Japan Equity	47.7	25	-16	7.5	+0.1
JPXN	iShares JPX-Nikkei 400	47.7	48	-39	7.4	+0.0
JPN	Xtrackers Japan JPX-Nikkei 400 Equity	47.5	9	0	7.8	+0.4
RFAP	First Trust Riverfront Dynamic Asia Pacific	44.1	83	-74	7.0	-0.5
PBDM	Invesco PureBeta FTSE Developed ex-North America	40.1	7	2	7.2	-0.2
HFXI	IQ 50 Percent Hedged FTSE Int'l	39.9	20	-11	7.0	-0.5
EWJE	iShares MSCI Japan Equal Weighted	37.9	15	-6	7.0	-0.4
SCHF	Schwab International Equity	36.8	6	3	7.0	-0.4
DXJ	WisdomTree Japan Hedged Equity	36.1	48	-39	8.2	+0.8
EASG	Xtrackers MSCI EAFE ESG Leaders Equity	35.8	14	-5	6.5	-1.0
FNDF	Schwab Fundamental Intl Large Cap	35.5	25	-16	7.4	-0.0

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 Pacific ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.3	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	9	bp
Equals: ALTAR Score	7.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.58	CATEGORY AVERAGE	1.63

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.