ETF Research Center

Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE High Dividend Yield Index, which consists of common stocks of companies that pay dividends that generally are higher than average.

FUND BASICS
Category	US Equities
Fund Sponsor	Vanguard Group Inc/The
Website	www.vanguard.com
Inception date	Nov 16, 2006
Assets (mns)	$29,121
Currency	USD
Expense ratio	6 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	406
Wgt avg mkt cap (mns)	$150,318
Large cap (>$10bn)	92.6%
Mid cap ($2-10bn)	6.4%
Small cap (<$2bn)	0.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	26.8 %
JPMORGAN CHASE & CO	4.0 %
JOHNSON & JOHNSON	3.5 %
PROCTER & GAMBLE CO/THE	2.9 %
EXXON MOBIL CORP	2.8 %
AT&T INC	2.6 %
VERIZON COMMUNICATIONS INC	2.4 %
INTEL CORP	2.4 %
MERCK & CO. INC.	2.1 %
CHEVRON CORP	2.1 %
WELLS FARGO & CO	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.2 %
	BRITAIN	1.5 %
	IRELAND	0.8 %
	SWITZERLAND	0.8 %
	BERMUDA	0.1 %
	PUERTO RICO	0.1 %
	BRAZIL	0.0 %
	NETHERLANDS	0.0 %
	LUXEMBOURG	0.0 %
	PANAMA	0.0 %

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.
20.5%	10.0%	8.9%	12.6%	7.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.88	91%
MSCI EAFE	0.81	65%
MSCI Emg. Mkts.	0.56	48%

Technical Indicators
Recent close	$92.24
30d moving avg.	$90.89
Annualized volatility	11.2%
Short interest (ETF)	0.1%
Short interest (Underlying)	2.2%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	1,411
Turnover	0.5%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$55,269

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

VYM

Expense:

6 bp

ALTAR Score™:

7.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH VYM
Ticker	Fund Name	Overlap¹ vs VYM (%)	Expense ratio (bp)	Savings vs VYM (bp)	ALTAR Score™ (%)	ALTAR vs VYM (%)
OYLD	Invesco Russell 1000 Yield Factor ETF	77.7	19	-13	7.0	-0.2
SCHV	Schwab U.S. Large-Cap Value	67.3	4	2	6.9	-0.3
MGV	Vanguard Mega Cap 300 Value	67.2	7	-1	7.0	-0.2
USDY	Pacific Global US Equity Income	65.2	29	-23	7.4	+0.2
VTV	Vanguard Value ETF	63.4	4	2	7.1	-0.0
DLN	WisdomTree Large Cap Dividend	61.4	28	-22	6.5	-0.7
IWX	iShares Russell Top 200 Value	59.1	20	-14	6.9	-0.3
DTD	WisdomTree Total Dividend	58.3	28	-22	6.5	-0.6
DGRO	iShares Core Dividend Growth	57.7	8	-2	6.4	-0.8
OUSA	O'Shares FTSE U.S. Quality Dividend	55.7	48	-42	5.9	-1.3
IWD	iShares Russell 1000 Value	54.4	19	-13	6.9	-0.3
VONV	Vanguard Russell 1000 Value	54.4	12	-6	7.0	-0.2
JKF	iShares Morningstar Large Value	53.7	25	-19	7.7	+0.5
DHS	WisdomTree Equity Income	50.8	38	-32	7.2	-0.0
PFM	Invesco Dividend Achievers	50.5	54	-48	5.4	-1.8
DIVB	iShares U.S. Dividend & Buyback	49.9	25	-19	6.6	-0.6
PRF	Invesco FTSE-RAFI U.S. 1000	49.8	39	-33	6.5	-0.7
IVE	iShares S&P 500 Value	49.5	18	-12	6.9	-0.3
SPYV	SPDR Portfolio S&P 500 Value	49.4	4	2	7.0	-0.1
VOOV	Vanguard S&P 500 Value	49.3	15	-9	7.0	-0.2

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 High Dividend Yield 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	16.1	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	6	bp
Equals: ALTAR Score	7.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	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.