Vanguard Emerging Markets
ALTAR
Score™
8.8% info Recommen-
dation
NEUTRAL
2019E    2020E
P/E
ratio
13.1x P/Sales
ratio
1.1x
P/BV
ratio
1.5x Div.
yield
3.1%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
Vanguard FTSE Emerging Markets ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index.

FUND BASICS
Category Emerging Market Equities
Fund Sponsor Vanguard
Website www.vanguard.com
Inception date Mar 10, 2005
Assets (mns) $63,532
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 4207
Wgt avg mkt cap (mns) $72,601
Large cap (>$10bn) 63.1%
Mid cap ($2-10bn) 27.2%
Small cap (<$2bn) 8.7%
Developed mkts 7.7%
Emerging mkts 90.4%

TOP TEN HOLDINGS
ALIBABA GROUP HOLDING LTD. SPONSOR 4.4 %
TENCENT HOLDINGS LTD 4.0 %
TAIWAN SEMICONDUCTOR MANUFAC 2.5 %
TAIWAN SEMICONDUCTOR-SP ADR 1.6 %
CHINA CONSTRUCTION BANK-H 1.2 %
RELIANCE INDUSTRIES LTD 1.1 %
PING AN INSURANCE GROUP CO-H 1.1 %
NASPERS LTD-N SHS 1.1 %
IND & COMM BK OF CHINA - H 1.0 %
HOUSING DEVELOPMENT FINANCE 0.9 %
Total 18.8 %

TOP COUNTRY EXPOSURE
CHINA 28.0 %
TAIWAN 14.1 %
INDIA 10.0 %
BRAZIL 7.8 %
SOUTH AFRICA 5.1 %
HONG KONG 4.4 %
RUSSIA 4.0 %
MEXICO 2.7 %
THAILAND 2.6 %
MALAYSIA 2.6 %

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.
12.2% 13.7% 2.3% 3.7% 7.0%

Market Correlations
versus... Beta R-squared
S&P500 0.79 45%
MSCI EAFE 1.04 67%
MSCI Emg. Mkts. 0.96 94%

Technical Indicators
Recent close $42.28
30d moving avg. $41.80
Annualized volatility 14.1%
Short interest (ETF) 0.6%
Relative strength (RSI) 62

Liquidity measures
Avg. volume (thou.) 12,926
Turnover 0.9%
Bid/Ask (% of price) 0.02%
ADV underlying (mns) $41,000

Distributions


FINDING ALTERNATIVE FUNDS

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

Benchmark ticker: VWO Expense: 12 bp ALTAR Score™: 8.8%


ALTERNATIVE ETFs BASED ON OVERLAP WITH VWO
Ticker Fund
Name
Overlap1
vs VWO
(%)
Expense
ratio
(bp)
Savings
vs VWO
(bp)
ALTAR
Score™
(%)
ALTAR
vs VWO
(%)
SCHE Schwab Emerging Markets Equity 75.1 13 -1 8.7 -0.0
IEMG iShares Core MSCI Emerging Markets 72.4 14 -2 8.6 -0.1
EEM iShares MSCI Emerging Markets 70.7 67 -55 8.6 -0.2
DBEM Xtrackers MSCI Emg. Mkts. Hedged 68.7 65 -53 8.5 -0.2
PBEE Invesco PureBeta FTSE Emerging Markets 65.8 14 -2 9.3 +0.5
SPEM SPDR Portfolio Emerging Markets 60.4 11 1 8.5 -0.3
FLAX Franklin FTSE Asia Ex Japan 54.8 19 -7 8.7 -0.0
JHEM John Hancock Multifactor Emerging Markets 53.8 55 -43 8.8 +0.1
AAXJ iShares MSCI Asia ex-Japan 52.1 67 -55 8.3 -0.5
EEMA iShares MSCI Emg Mkts Asia 52.0 50 -38 8.7 -0.0
EEMX SPDR MSCI Emerging Markets Fossil Fuel Free 51.6 30 -18 8.6 -0.2
TLTE FlexShares Mngstr Emerging Markets Factor Tilt 50.7 59 -47 10.6 +1.8
GMF SPDR S&P Emerging Asia Pacific 49.4 49 -37 8.2 -0.6
GEM Goldman Sachs ActiveBeta Emg Mkts Equity 46.8 45 -33 9.2 +0.4
BKF iShares MSCI BRIC 44.7 67 -55 8.8 +0.1
PXH Invesco FTSE-RAFI Emerging Markets 44.0 50 -38 12.5 +3.8
XSOE WisdomTree Emg Mkt ex-SOE 43.8 32 -20 6.9 -1.8
QEMM SPDR MSCI Emerging Markets Quality Mix 43.7 30 -18 9.3 +0.5
AVEM Avantis Emerging Markets Equity 40.5 33 -21 8.4 -0.4
ESGE iShares MSCI EM ESG Optimized 40.4 25 -13 9.3 +0.6

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%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
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 Emerging Markets
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 12.6 %
Divided by: Fwd. P/BV 1.4 x
Less: Expense ratio 12 bp
Equals: ALTAR Score 8.8 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.48 CATEGORY
AVERAGE
1.49
 
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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.