ETF Research Center

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

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$4,699
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	68
Wgt avg mkt cap (mns)	$40,302
Large cap (>$10bn)	83.2%
Mid cap ($2-10bn)	15.9%
Small cap (<$2bn)	1.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	52.9 %
NEXTERA ENERGY GROUP	11.7 %
DUKE ENERGY CORP	6.5 %
SOUTHERN CO	6.4 %
DOMINION RESOURCES INC/VA	6.4 %
AMERICAN ELECTRIC POWER	4.7 %
EXELON CORP	4.3 %
SEMPRA ENERGY	4.1 %
XCEL ENERGY INC	3.2 %
WEC ENERGY GROUP INC	2.9 %
PUBLIC SERVICE ENTERPRISE GP	2.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.9 %
	BRITISH VIRGIN ISLANDS	0.1 %

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.
24.9%	24.9%	10.4%	12.0%	10.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.25	9%
MSCI EAFE	0.21	5%
MSCI Emg. Mkts.	0.12	3%

Technical Indicators
Recent close	$150.56
30d moving avg.	$142.77
Annualized volatility	9.8%
Short interest (ETF)	2.1%
Short interest (Underlying)	2.6%
Relative strength (RSI)	78

Liquidity measures
Avg. volume (thou.)	142
Turnover	0.5%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$4,714

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VPU

Expense:

10 bp

ALTAR Score™:

4.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VPU
Ticker	Fund Name	Overlap¹ vs VPU (%)	Expense ratio (bp)	Savings vs VPU (bp)	ALTAR Score™ (%)	ALTAR vs VPU (%)
FUTY	Fidelity MSCI Utilities	98.6	8	2	4.8	+0.0
IDU	iShares DJ US Utilities	95.3	43	-33	4.5	-0.2
XLU	Utilities Select Sector SPDR	86.0	13	-3	4.8	+0.1
JHMU	John Hancock Multifactor Utilities	73.6	40	-30	4.8	+0.1
RYU	Invesco S&P Equal Weight Utilities	67.2	40	-30	4.7	-0.0
JXI	iShares S&P Global Utilities	61.5	46	-36	4.9	+0.2
UTES	Reaves Utilities	50.1	49	-39	4.0	-0.8
FXU	First Trust Utilities Alphadex	46.3	63	-53	5.1	+0.4
PUI	Invesco DWA Utilities Momentum	42.4	60	-50	3.8	-0.9
ECLN	First Trust EIP Carbon Impact	36.9	95	-85	3.1	-1.7
IFRA	iShares U.S. Infrastructure	30.6	40	-30	5.2	+0.4
GII	SPDR FTSE/Macquarie Global Infrastructure	30.2	40	-30	4.6	-0.1
IGF	iShares S&P Global Infrastructure	30.2	46	-36	4.5	-0.2
EMLP	First Trust N. American Energy Infrastructure	29.5	95	-85	4.6	-0.1
SPLV	Invesco S&P 500 Low Volatility	28.8	25	-15	5.0	+0.3
DVOL	First Trust Dorsey Wright Momentum & Low Volatility	27.3	60	-50	4.2	-0.5
LVHD	Legg Mason Low Volatility High Dividend ETF	26.7	27	-17	6.6	+1.8
DVY	iShares Select Dividend	25.9	39	-29	7.7	+2.9
NLR	VanEck Vectors Nuclear Energy	24.1	60	-50	9.3	+4.6

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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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 Utilities ETF
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	10.7	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	10	bp
Equals: ALTAR Score	4.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	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.