ETF Research Center

Vanguard Value ETF seeks to track the performance of the MSCI US Prime Market Value Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group
Website	www.vanguard.com
Inception date	Jan 30, 2004
Assets (mns)	$53,840
Currency	USD
Expense ratio	4 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	JPMorgan Chase Bank
Weighting	Multi-Factor
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	339
Wgt avg mkt cap (mns)	$150,686
Large cap (>$10bn)	96.6%
Mid cap ($2-10bn)	3.4%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	22.9 %
BERKSHIRE HATHAWAY INC-CL B	3.2 %
JPMORGAN CHASE & CO	2.9 %
JOHNSON & JOHNSON	2.6 %
PROCTER & GAMBLE CO/THE	2.2 %
EXXON MOBIL CORP	2.2 %
AT&T INC	2.1 %
BANK OF AMERICA CORP	2.0 %
WALT DISNEY CO/THE	1.9 %
INTEL CORP	1.9 %
UNITEDHEALTH GROUP INC	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.9 %
	IRELAND	2.6 %
	SWITZERLAND	0.8 %
	BRITAIN	0.5 %
	BERMUDA	0.4 %

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.
18.4%	11.0%	9.3%	12.6%	8.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.96	92%
MSCI EAFE	0.81	56%
MSCI Emg. Mkts.	0.54	40%

Technical Indicators
Recent close	$116.98
30d moving avg.	$113.31
Annualized volatility	12.1%
Short interest (ETF)	0.2%
Short interest (Underlying)	2.1%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	1,227
Turnover	0.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$66,630

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VTV

Expense:

4 bp

ALTAR Score™:

7.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VTV
Ticker	Fund Name	Overlap¹ vs VTV (%)	Expense ratio (bp)	Savings vs VTV (bp)	ALTAR Score™ (%)	ALTAR vs VTV (%)
MGV	Vanguard Mega Cap 300 Value	84.0	7	-3	7.0	-0.2
SCHV	Schwab U.S. Large-Cap Value	80.0	4	0	7.0	-0.2
IWD	iShares Russell 1000 Value	75.5	19	-15	7.0	-0.2
VONV	Vanguard Russell 1000 Value	75.2	12	-8	7.1	-0.2
IVE	iShares S&P 500 Value	65.0	18	-14	7.0	-0.2
SPYV	SPDR Portfolio S&P 500 Value	64.9	4	0	7.1	-0.1
VOOV	Vanguard S&P 500 Value	64.9	15	-11	7.0	-0.2
OYLD	Invesco Russell 1000 Yield Factor ETF	64.8	19	-15	7.0	-0.2
DLN	WisdomTree Large Cap Dividend	64.4	28	-24	6.5	-0.7
IUSV	iShares Core U.S. Value	64.2	4	0	7.2	-0.1
IWX	iShares Russell Top 200 Value	63.3	20	-16	6.9	-0.3
VYM	Vanguard High Dividend Yield ETF	63.1	6	-2	7.2	+0.0
PRF	Invesco FTSE-RAFI U.S. 1000	62.2	39	-35	6.7	-0.5
FNDX	Schwab Fundamental Large Cap	61.4	25	-21	6.6	-0.6
SPXT	ProShares S&P 500 Ex-Technology	61.0	27	-23	6.0	-1.2
DTD	WisdomTree Total Dividend	60.3	28	-24	6.6	-0.6
DIVB	iShares U.S. Dividend & Buyback	58.2	25	-21	6.6	-0.6
FNDB	Schwab Fundamental Broad Mkt	57.9	25	-21	6.6	-0.6
VLU	SPDR S&P 1500 Value Tilt	56.9	12	-8	7.4	+0.2
EPS	WisdomTree Earnings 500	56.4	8	-4	6.9	-0.3

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 Value 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	14.8	%
Divided by: Fwd. P/BV	2.0	x
Less: Expense ratio	4	bp
Equals: ALTAR Score	7.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.56	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.