ETF Research Center

Vanguard Russell 2000 is an exchange-traded fund in the USA. The Fund seeks to track the performance of the Russell 2000 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Sep 22, 2010
Assets (mns)	$1,549
Currency	USD
Expense ratio	15 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	2018
Wgt avg mkt cap (mns)	$2,225
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	51.1%
Small cap (<$2bn)	48.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	2.8 %
NOVOCURE LIMITED	0.4 %
HAEMONETICS CORP/MASS	0.3 %
TELADOC INC	0.3 %
GENERAC HOLDINGS INC	0.3 %
FIRST INDUSTRIAL REALTY TR	0.3 %
RADIAN GROUP INC	0.3 %
LUMENTUM HOLDINGS, INC.	0.3 %
MEDICINES COMPANY	0.3 %
ESSENT GROUP LTD	0.3 %
MARRIOTT VACATIONS WORLD	0.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.9 %
	BERMUDA	1.2 %
	BRITAIN	0.7 %
	IRELAND	0.3 %
	PUERTO RICO	0.3 %
	CAYMAN ISLANDS	0.3 %
	CANADA	0.2 %
	NETHERLANDS	0.2 %
	MONACO	0.1 %
	LUXEMBOURG	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
22.3%	7.6%	8.3%	--	11.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.18	79%
MSCI EAFE	1.05	52%
MSCI Emg. Mkts.	0.66	33%

Technical Indicators
Recent close	$129.37
30d moving avg.	$127.60
Annualized volatility	16.0%
Short interest (ETF)	0.1%
Short interest (Underlying)	7.0%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	181
Turnover	1.5%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$22,350

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard Russell 2000 ETF based on the alternatives' overlap in portfolio holdings with VTWO. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

VTWO

Expense:

15 bp

ALTAR Score™:

3.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VTWO
Ticker	Fund Name	Overlap¹ vs VTWO (%)	Expense ratio (bp)	Savings vs VTWO (bp)	ALTAR Score™ (%)	ALTAR vs VTWO (%)
IWM	iShares Russell 2000	97.0	19	-4	3.6	-0.1
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	71.9	20	-5	5.3	+1.7
SPSM	SPDR Portfolio Small Cap	69.6	5	10	4.8	+1.1
SCHA	Schwab U.S. Small-Cap	68.1	4	11	5.0	+1.3
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	56.5	29	-14	4.1	+0.5
IWO	iShares Russell 2000 Growth	55.0	24	-9	0.9	-2.8
VTWG	Vanguard Russell 2000 Growth	54.9	20	-5	0.9	-2.8
IWN	iShares Russell 2000 Value	53.9	24	-9	6.2	+2.6
VTWV	Vanguard Russell 2000 Value	53.9	20	-5	6.3	+2.6
PBSM	Invesco PureBeta MSCI USA Small Cap	53.2	6	9	5.3	+1.7
PRFZ	Invesco FTSE-RAFI Small-Mid 1500	51.8	39	-24	4.6	+0.9
SPMD	SPDR Portfolio Mid Cap	46.9	5	10	6.1	+2.5
IUSS	Invesco Strategic US Small Company	44.0	23	-8	6.2	+2.6
VBR	Vanguard Small-Cap Value ETF	42.3	7	8	7.7	+4.1
ISMD	Inspire Small/Mid Cap Impact	41.9	61	-46	4.6	+1.0
ESML	iShares MSCI USA Small-Cap ESG Optimized	41.9	17	-2	4.7	+1.1
VB	Vanguard Smallcap ETF	41.0	5	10	5.5	+1.9
FNDA	Schwab Fundamental Small Cap	40.9	25	-10	6.0	+2.4
VXF	Vanguard Extended Market	38.1	7	8	3.3	-0.4
PQSG	PGIM QMA Strategic Alpha Small-Cap Growth	36.4	29	-14	1.2	-2.5

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 Russell 2000
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	6.8	%
Divided by: Fwd. P/BV	1.8	x
Less: Expense ratio	15	bp
Equals: ALTAR Score	3.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.54	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.