7
Morningstar FundInvestor
April 2
013
Morningstar Analyst Rating
04-01-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
25.73
25.05
21.84
26.35
. . . . . . . .
Total Return %
2.98
18.21
-14.52
2.80
. . . . . . . .
*
*
+/-MSCI EAFE
-2.15
0.89
-2.38
. . . . . . . . .
+/-MSCI WexUS
-0.19
1.38
-0.81
. . . . . . . . .
Income Return %
0.26
3.44
2.56
. . . . . . . . .
Capital Return %
2.72
14.77
-17.08
. . . . . . . . .
Total Rtn % Rank Cat
69
49
60
. . . . . . . . .
Income $
0.07
0.75
0.68
0.42
. . . . . . . .
Capital Gains $
0.00
0.00
0.00
0.00
. . . . . . . .
Expense Ratio %
.
0.16
0.18
. . . . . . . . .
Income Ratio %
.
3.23
2.99
. . . . . . . . .
Turnover Rate %
.
3
3
6
. . . . . . . .
Net Assets $mil
17,784
16,419
12,415
2,167
. . . . . . . .
Performance
03-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
. . . . .
. . . .
2.80
3.04 0.70 -20.92 4.18 -14.52
12.00 -7.48
6.93 6.69 18.21
2.98
. . . .
*
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE WexUS
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
2.98 -2.15
-0.19
69 10,298
9.87 -2.17
0.67
59 10,987
8.69 -2.56
0.33
60 10,869
. . . . .
. . . . .
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
. . . .
. . . .
. . . .
Potential Capital Gain Exposure: 5% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
8.69
3 Yr
. . . .
5 Yr
. . . .
10 Yr
. . . .
Incept
4.74
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
Alpha
.
.
Beta
.
.
R-Squared
.
.
Standard Deviation
.
Mean
.
Sharpe Ratio
.
Morningstar’s Take
by Patricia Oey 04-01-13
Vanguard Total International Stock VTIAX is a solid
choice for passive cap-weighted exposure to
international equities. This fund invests in 46
developed and emerging markets that together account
for about 55% of the world’s market cap.
Despite the fund’s broad international exposure, it’s
recently exhibited a strong correlation to the S&P 500
(92% over the past five years). This is because many of
its large-cap holdings, such as Royal Dutch Shell
RDS.A, Nestle NSRGY, and Samsung Electronics, are
multinationals that compete with their S&P 500
counterparts in similar markets across the globe.
As for risk, although about 20% of the fund’s
portfolio is invested in emerging-markets equities, its
trailing 10-year annualized monthly standard deviation
of returns of 19% is in line with that of the MSCI EAFE
Index, which comprises only developed-markets
equities. Thanks to a lift from buoyant
emerging-markets stocks, this fund’s benchmark’s
10-year Sharpe ratio was 0.58, slightly higher than the
MSCI EAFE Index’s 0.51.
This is an all-cap fund, unlike Vanguard FTSE
All-World ex-US VFWAX, which excludes small caps.
Over the past 10 years to Feb. 28, 2013, the volatility
and the risk-adjusted returns of an all-cap
international equity portfolio (as measured by the FTSE
Global All Cap ex US Index) were almost the same as
a large- and mid-cap international equity portfolio (as
measured by the FTSE AW ex US Index). The Sharpe
ratios for the two indexes were 0.59 and 0.58,
respectively. Meanwhile, international small caps (as
measured by the FTSE Global Small Cap ex USA Index)
have generated higher risk-adjusted returns (Sharpe
ratio of 0.66) and have been less correlated to the S&P
500 (trailing 10-year correlation of 85% versus the
FTSE Global All Cap ex US Index’s 90%). But the
inclusion of small caps has had limited impact on this
fund’s performance as they account for about 10% of
the portfolio.
Address:
Po Box 2600
Valley Forge, PA 19482
800-662-7447
Web Address:
Inception:
11-29-10
Advisor:
Vanguard Group, Inc.
Subadvisor:
None
NTF Plans:
Vanguard NTF
Minimum Purchase:
$10000
Add: $100 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load
Management Fee:
0.12%
Actual Fees:
Mgt:0.12% Dist:
.
Expense Projections:
3Yr:$52
5Yr:$90 10Yr:$205
Income Distribution:
Annually
Data through March 31, 2013
Vanguard Total Intl Stock Index Admiral
Ticker
Status Yield Total Assets
Mstar Category
VTIAX Open
3.2% $89,902 mil
Foreign Large Blend
93% 98% 97% 98%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 03-13
Historical Profile
Return
Risk
Rating
Not Rated
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI EAFE
Performance Quartile
(within Category)
History
10.0
8.0
8.7
10.7
11.4
Portfolio Analysis
12-31-12
Share change since 09-12 Total Stocks:6000Sector
Country
% Assets
Nestle SA
Cnsmr Def
Switzerland
1.14
HSBC Holdings PLC
Finan Svs U.K.
1.05
Novartis AG
Hlth care Switzerland
0.79
Roche Holding AG
Hlth care Switzerland
0.78
Samsung Electronics Co L
Technology Korea
0.75
BP PLC
Energy
U.K.
0.72
Royal Dutch Shell PLC Cl
Energy
U.K.
0.71
Toyota Motor Corp
Cnsmr Cyc Japan
0.70
BHP Billiton Ltd
Basic Mat
Australia
0.68
Vodafone Group PLC
Comm Svs U.K.
0.67
Sanofi
Hlth care France
0.61
Total SA
Energy
France
0.60
GlaxoSmithKline PLC
Hlth care U.K.
0.59
Commonwealth Bank of Aus
Finan Svs Australia
0.56
CMT Market Liquidity Rat
.
United States
0.56
British American Tobacco
Cnsmr Def
U.K.
0.53
Royal Dutch Shell PLC Cl
Energy
U.K.
0.51
Siemens AG
Industrl
Germany
0.49
Royal Bank Of Canada
Finan Svs Canada
0.47
Basf SE
Basic Mat
Germany
0.47
Current Investment Style
Market Cap %
Giant
48.3
Large
30.5
Mid
16.8
Small
4.1
Micro
0.4
Avg $mil:
19,244
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
U.K.
15
Japan
14
Canada
8
Australia
6
Germany
6
Regional Exposure
% Stock
UK/W. Europe 44
Japan
14
Asia X Japan 25
N. America 8
Latn America 5
Other
4
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 46.08
.
BasicMat 11.00
.
14 11
CnsmrCyc10.39
.
10 8
FinanSvs 20.89
.
22 19
Real Est 3.80
.
4 2
Sensitive 33.95
.
CommSrvs 5.28
.
7 5
Energy 9.19
.
11 8
Industrl 12.59
.
13 12
Technlgy 6.89
.
8 7
Defensive19.97
.
CnsmrDef 9.74
.
10 8
Hlthcare 6.92
.
7 6
Utilities 3.31
.
5 3
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
0.6
Stocks
98.0
Bonds
0.0
Other
1.4
Foreign
99.9
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.41
-50.25
-23.85
-16.67
1.20
1.14
NMF
NMF
NMF
0.41
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
11.96
1.35
0.85
4.26
3.14
0.95
0.90
0.89
0.87
1.10
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2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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