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)	$29,208
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	400
Wgt avg mkt cap (mns)	$151,639
Large cap (>$10bn)	92.8%
Mid cap ($2-10bn)	6.3%
Small cap (<$2bn)	0.9%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	26.4 %
JPMORGAN CHASE & CO	3.9 %
JOHNSON & JOHNSON	3.7 %
PROCTER & GAMBLE CO/THE	2.9 %
AT&T INC	2.6 %
INTEL CORP	2.6 %
EXXON MOBIL CORP	2.3 %
VERIZON COMMUNICATIONS INC	2.2 %
COCA-COLA CO/THE	2.1 %
MERCK & CO. INC.	1.9 %
CHEVRON CORP	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.3 %
	BRITAIN	1.5 %
	IRELAND	0.8 %
	SWITZERLAND	0.8 %
	BERMUDA	0.1 %
	PUERTO RICO	0.1 %
	BRAZIL	0.0 %
	HONG KONG	0.0 %
	LUXEMBOURG	0.0 %
	PANAMA	0.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-2.5%	14.0%	9.9%	12.9%	7.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.89	91%
MSCI EAFE	0.84	67%
MSCI Emg. Mkts.	0.57	54%

Technical Indicators
Recent close	$90.92
30d moving avg.	$93.67
Annualized volatility	11.3%
Short interest (ETF)	0.4%
Short interest (Underlying)	2.2%
Relative strength (RSI)	51

Liquidity measures
Avg. volume (thou.)	1,340
Turnover	0.4%
Bid/Ask (% of price)	0.01%
ADV underlying (mns)	$51,448

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Vanguard High Dividend Yield Index 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™:

7.4%

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	78.9	19	-13	7.4	+0.0
SCHV	Schwab U.S. Large-Cap Value ETF	66.9	4	2	7.1	-0.2
MGV	Vanguard Mega Cap Value ETF	66.7	7	-1	7.2	-0.1
USDY	Pacific Global US Equity Income ETF	65.5	29	-23	7.7	+0.4
VTV	Vanguard Value Index Fund	63.5	4	2	7.3	-0.0
DLN	WisdomTree U.S. LargeCap Dividend Fund	61.2	28	-22	6.7	-0.7
DGRO	iShares Core Dividend Growth ETF	60.0	8	-2	6.6	-0.8
DTD	WisdomTree U.S.Total Dividend Fund	59.3	28	-22	6.8	-0.6
IWX	iShares Russell Top 200 Value ETF	58.7	20	-14	7.0	-0.3
JKF	iShares Morningstar Large Cap Value ETF	56.7	25	-19	7.9	+0.5
OUSA	O'Shares FTSE US Quality Dividend ETF	56.2	48	-42	6.1	-1.3
VOOV	Vanguard S&P 500 Value ETF	56.2	15	-9	7.2	-0.2
SPYV	SPDR Portfolio S&P 500 Value ETF	56.1	4	2	7.3	-0.1
IVE	iShares S&P 500 Value ETF	56.1	18	-12	7.2	-0.2
RAFE	PIMCO RAFI ESG U.S. ETF	55.1	29	-23	8.2	+0.8
VONV	Vanguard Russell 1000 Value Index Fund	54.4	8	-2	7.0	-0.3
IUSV	iShares Core S&P U.S. Value ETF	54.2	4	2	7.3	-0.0
IWD	iShares Russell 1000 Value ETF	53.4	19	-13	6.9	-0.5
PFM	Invesco Dividend Achievers ETF	51.1	54	-48	5.3	-2.0
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	49.9	19	-13	6.6	-0.8

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 Index 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	16.4	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	6	bp
Equals: ALTAR Score	7.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	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.