ETF Research Center

Vanguard FTSE All World ex-US Small-Cap ETF seeks to track the performance of a benchmark index that measures the investment return of both developed and emerging international small cap companies.

FUND BASICS
Category	International Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Apr 06, 2009
Assets (mns)	$5,718
Currency	USD
Expense ratio	12 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	3914
Wgt avg mkt cap (mns)	$1,868
Large cap (>$10bn)	1.0%
Mid cap ($2-10bn)	44.4%
Small cap (<$2bn)	54.3%
Developed mkts	76.9%
Emerging mkts	22.8%

TOP TEN HOLDINGS
Total	3.0 %
OPEN TEXT CORP	0.5 %
EMERA INC	0.4 %
KIRKLAND LAKE GOLD LTD.	0.3 %
CAE INC	0.3 %
GENIVAR INC	0.3 %
ALGONQUIN POWER & UTILITIES	0.3 %
FIRST QUANTUM MINERALS LTD	0.3 %
CAN APARTMENT PROP REAL ESTA	0.3 %
CCL INDUSTRIES INC - CL B	0.2 %
INDUSTRIAL ALLIANCE INSURANC	0.2 %

TOP COUNTRY EXPOSURE
	CANADA	13.1 %
	JAPAN	11.3 %
	BRITAIN	9.1 %
	TAIWAN	6.1 %
	AUSTRALIA	3.6 %
	GERMANY	3.0 %
	SOUTH KOREA	2.9 %
	SWEDEN	2.9 %
	SWITZERLAND	2.6 %
	CHINA	2.1 %

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.
21.3%	21.3%	6.1%	6.2%	9.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.82	67%
MSCI EAFE	1.03	88%
MSCI Emg. Mkts.	0.76	84%

Technical Indicators
Recent close	$112.17
30d moving avg.	$110.47
Annualized volatility	12.1%
Short interest (ETF)	0.1%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	145
Turnover	0.3%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$11,794

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard FTSE All World ex-US Small Cap ETF based on the alternatives' overlap in portfolio holdings with VSS. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VSS

Expense:

12 bp

ALTAR Score™:

6.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VSS
Ticker	Fund Name	Overlap¹ vs VSS (%)	Expense ratio (bp)	Savings vs VSS (bp)	ALTAR Score™ (%)	ALTAR vs VSS (%)
SCHC	Schwab Intl Small-Cap Equity	62.2	12	0	6.3	+0.1
SCZ	iShares MSCI EAFE Small Cap	40.6	39	-27	6.0	-0.2
PDN	Invesco FTSE RAFI Developed Mkts ex-US Small-Mid Cap	34.0	49	-37	6.3	+0.1
FNDC	Schwab Fundamental Intl Small Cap	32.7	39	-27	4.4	-1.8
GWX	SPDR International SmallCap	30.7	40	-28	4.5	-1.7
IEUS	iShares MSCI Europe Small Cap	28.7	40	-28	6.1	-0.1
DDLS	WisdomTree Dynamic Currency Hedged Int'l SmallCap	20.0	43	-31	8.0	+1.8
DLS	WisdomTree Int'l SmallCap Dividend	18.5	58	-46	8.0	+1.8
ISDS	Invesco Strategic Developed ex-US Small Company	18.0	35	-23	5.0	-1.2
TLTD	FlexShares Mngstr Developed Mkts ex-US Factor Tilt	16.0	39	-27	8.1	+1.9
EEMS	iShares MSCI Emerging Market Small Cap	14.2	67	-55	6.4	+0.2
AVDE	Avantis International Equity	13.6	23	-11	7.3	+1.1
ISCF	iShares FactorSelect MSCI Intl Small-Cap	12.8	40	-28	7.0	+0.8
AVDV	Avantis International Small Cap Value	12.0	36	-24	7.1	+0.9
EWX	SPDR S&P Emerging Markets Small Cap	11.9	65	-53	7.3	+1.1
MFDX	PIMCO RAFI Dynamic Multi-Factor International Equity	10.9	39	-27	6.1	-0.1
SCJ	iShares MSCI Japan Small Cap	10.6	47	-35	6.1	-0.1
DFE	WisdomTree Europe Small Cap Dividend	9.7	58	-46	8.6	+2.4
DFJ	WisdomTree Japan Small Cap Dividend	9.3	58	-46	7.9	+1.7
DXJS	WisdomTree Japan Hedged Small	9.3	58	-46	7.7	+1.5

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 FTSE All World ex-US Small Cap
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	7.8	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	12	bp
Equals: ALTAR Score	6.2	%

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.