ETF Research Center

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)	$69,372
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	4188
Wgt avg mkt cap (mns)	$93,259
Large cap (>$10bn)	64.6%
Mid cap ($2-10bn)	26.5%
Small cap (<$2bn)	7.8%
Developed mkts	7.6%
Emerging mkts	90.2%

TOP TEN HOLDINGS
Total	20.7 %
ALIBABA GROUP HOLDING LTD. SPONSOR	5.1 %
TENCENT HOLDINGS LTD	4.7 %
TAIWAN SEMICONDUCTOR MANUFAC	2.7 %
TAIWAN SEMICONDUCTOR-SP ADR	1.7 %
CHINA CONSTRUCTION BANK-H	1.3 %
NASPERS LTD-N SHS	1.2 %
PING AN INSURANCE GROUP CO-H	1.1 %
RELIANCE INDUSTRIES LTD	1.1 %
IND & COMM BK OF CHINA - H	1.0 %
HOUSING DEVELOPMENT FINANCE	0.9 %

TOP COUNTRY EXPOSURE
	CHINA	30.5 %
	TAIWAN	14.2 %
	INDIA	9.9 %
	BRAZIL	8.0 %
	SOUTH AFRICA	5.0 %
	HONG KONG	4.4 %
	RUSSIA	4.2 %
	MEXICO	2.8 %
	MALAYSIA	2.5 %
	THAILAND	2.4 %

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.
20.7%	20.7%	5.0%	3.4%	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.84	50%
MSCI EAFE	1.08	69%
MSCI Emg. Mkts.	0.96	94%

Technical Indicators
Recent close	$45.91
30d moving avg.	$44.30
Annualized volatility	14.3%
Short interest (ETF)	1.1%
Relative strength (RSI)	72

Liquidity measures
Avg. volume (thou.)	10,463
Turnover	0.7%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$60,971

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™:

7.9%

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	77.6	13	-1	7.9	-0.0
IEMG	iShares Core MSCI Emerging Markets	73.3	14	-2	8.0	+0.0
EEM	iShares MSCI Emerging Markets	72.6	67	-55	7.7	-0.3
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	70.1	65	-53	7.7	-0.3
PBEE	Invesco PureBeta FTSE Emerging Markets	68.0	14	-2	8.4	+0.5
SPEM	SPDR Portfolio Emerging Markets	61.9	11	1	7.8	-0.1
FLAX	Franklin FTSE Asia Ex Japan	56.6	19	-7	7.8	-0.1
JHEM	John Hancock Multifactor Emerging Markets	55.8	55	-43	8.1	+0.2
AAXJ	iShares MSCI Asia ex-Japan	54.7	67	-55	7.4	-0.6
EEMA	iShares MSCI Emg Mkts Asia	54.4	50	-38	7.9	+0.0
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	53.1	30	-18	7.9	-0.1
GMF	SPDR S&P Emerging Asia Pacific	52.6	49	-37	7.4	-0.5
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	50.4	59	-47	12.0	+4.1
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	49.9	45	-33	8.3	+0.4
BKF	iShares MSCI BRIC	48.0	67	-55	7.7	-0.3
XSOE	WisdomTree Emg Mkt ex-SOE	45.9	32	-20	6.3	-1.7
PXH	Invesco FTSE-RAFI Emerging Markets	44.6	50	-38	11.4	+3.5
QEMM	SPDR MSCI Emerging Markets Quality Mix	44.5	30	-18	8.6	+0.6
AVEM	Avantis Emerging Markets Equity	42.3	33	-21	7.7	-0.3
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	41.4	20	-8	7.5	-0.4

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 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	1.6	x
Less: Expense ratio	12	bp
Equals: ALTAR Score	7.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	CATEGORY AVERAGE	1.48

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.