(PUB) Investing 2016

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7 Morningstar FundInvestor March 2016
Data through February 29, 2016 FINRA members: For internal or institutional use only.
Vanguard Total World Stock Index Inv Ticker
VTWSX
Yield
2.5%
Total Assets
$2,579 mil
Mstar Category
World Stock
Benchmark 1: MSCI ACWI NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 02-23-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
8.0
6.0
Historical Profile
Return
Risk
Rating
Average
Average
QQQ
Neutral
4 4 4 4 4 4 4 4 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
* * * * ( * ( * Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 02-16 History
. . 13.32 17.51 19.41 17.50 20.06 24.11 24.48 23.45 21.90 NAV
. . . 33.30 12.87 -7.88 17.15 22.79 3.92 -2.02 -6.61 Total Return %
. . . -1.33 0.20 -0.54 1.02 -0.01 -0.24 0.35 0.07 +/- Bmark 1
. . . -8.15 1.72 5.82 0.32 7.51 7.78 3.65 1.26 +/- Bmark 2
. . . 1.84 2.00 1.93 2.51 2.38 2.40 2.27 0.00 Income Return %
. . . 31.46 10.87 -9.82 14.64 20.42 1.51 -4.28 -6.61 Capital Return %
. . . 46 48 50 42 64 35 57 50 Total Rtn % Rank Cat
. . 0.08 0.25 0.35 0.38 0.44 0.47 0.57 0.55 0.00 Income $
. . . 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $
. . 0.46 0.50 0.45 0.40 0.35 0.30 0.27 0.25 . Expense Ratio %
. . 2.32 2.28 2.03 2.30 2.44 2.28 2.38 2.31 . Income Ratio %
. . 5 18 7 10 16 12 7 7 . Turnover Rate %
. . 69 153 272 273 407 669 848 956 914 Net Assets $mil
Performance 02-29-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 4.17 0.54 -18.20 7.51 -7.88
2012 12.23 -5.55 6.59 3.68 17.15
2013 6.29 -0.40 8.16 7.25 22.79
2014 1.38 4.95 -2.72 0.40 3.92
2015 2.78 0.69 -9.40 4.50 -2.02
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -8.52 -0.16 1.08 48 9,148
6 Mo -5.75 -0.21 3.54 47 9,425
1 Yr -12.15 0.17 5.22 55 8,785
3 Yr Avg 3.91 0.24 6.10 60 11,218
5 Yr Avg 3.84 0.13 5.13 64 12,072
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 3.00 41 0.87 37
5 Yr (estimated) 2.98 53 0.82 44
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: 0% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -12.15
3 Yr 3.91 Avg Avg QQQ
5 Yr 3.84 Avg Avg QQQ
10 Yr — — — —
Incept 3.16
Other Measures Standard Index Best Fit Index
Alpha 5.6 0.3
Beta 0.84 0.98
R-Squared 92 99
Standard Deviation 11.16
Mean 3.91
Sharpe Ratio 0.39
Portfolio Analysis 01-31-16
Total Stocks: 7357
Share change since 12-31-15 Sector Country % Assets
TApple Inc Technology United States 1.40
TMicrosoft Corp Technology United States 1.02
TExxon Mobil Corporation Energy United States 0.84
TJohnson & Johnson Hlth Care United States 0.74
TGeneral Electric Co Industrl United States 0.70
TWells Fargo & Co Finan Svcs United States 0.65
TFacebook Inc A Technology United States 0.63
TNestle SA Cnsmr Def Switzerland 0.63
TAT&T Inc Comm Svcs United States 0.58
TAlphabet Inc A Technology United States 0.57
TAlphabet Inc C Technology United States 0.57
TAmazon.com Inc Cnsmr Cyc United States 0.57
TJPMorgan Chase & Co Finan Svcs United States 0.57
TProcter & Gamble Co Cnsmr Def United States 0.57
TVerizon Communications In Comm Svcs United States 0.52
TPfizer Inc Hlth Care United States 0.48
TRoche Holding AG Dividend Hlth Care Switzerland 0.47
TCoca-Cola Co Cnsmr Def United States 0.45
THome Depot Inc Cnsmr Cyc United States 0.44
TToyota Motor Corp Cnsmr Cyc Japan 0.44
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 45.3
Large 30.6
Mid 17.7
Small 5.5
Micro 0.8
Avg $mil:
28,478
Value Measures Rel Category
Price/Earnings 15.47 0.91
Price/Book 1.75 0.77
Price/Sales 1.22 0.78
Price/Cash Flow 6.34 0.74
Dividend Yield % 2.85 1.06
Growth Measures % Rel Category
Long-Term Erngs 9.62 0.92
Book Value 2.15 0.51
Sales -4.87 -6.18
Cash Flow 0.26 0.95
Historical Erngs -39.13 -22.83
Composition - Net
Cash 0.4 Bonds 0.0
Stocks 99.5 Other 0.1
Foreign (% of Stock) 46.6
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 38.10 1.03
r BasicMat 4.98 1.02
t CnsmrCyc 12.05 1.03
y FinanSvcs 17.11 0.98
u Real Est 3.96 1.27
j Sensitive 35.90 0.99
i CommSrvs 4.63 0.88
o Energy 5.97 0.94
p Industrl 11.35 1.08
a Technlgy 13.95 1.00
k Defensive 26.00 0.97
s CnsmrDef 10.28 0.95
d Hlthcare 12.29 0.99
f Utilities 3.43 1.02
Regional Exposure % Stock
UK/W. Europe 22 N. America 56
Japan 9 Latn America 1
Asia X Japan 10 Other 2
Country Exposure % Stock
United States 53
Japan 9
UK 7
Switzerland 3
France 3
Morningstar's Take by Patricia Oey 02-23-16
Vanguard Total World Stock Index is one of the most
diversified, and cheapest, equity portfolios available. It
merits a Morningstar Analyst Rating of Silver.
This index fund covers a lot of ground. It tracks the
market-cap-weighted FTSE Global All Cap Index, holds
about 7,400 stocks, and covers 98% of the world's public
equity market capitalization. It typically invests about half
of the portfolio in the United States, nearly 40% in non-
U.S. developed markets, and the remaining 10% in
emerging markets. Thus, this single fund can fill the
equities portion of a diversified portfolio of stock and bond
funds.
With its extremely broad coverage, this fund looks
different than other Morningstar Medalists in the world-
stock Morningstar Category. Many of those funds tend to
be "global best ideas" vehicles with fewer holdings
(typically around 100). Relative to category averages, this
fund has been light in developed Europe equities and
slightly overweight in emerging-markets equities. And
relative to its main world-stock peers, this fund has more
exposure to mid- and small-caps given its all-cap focus.
These tilts can affect short-term relative performance but
haven'tprevented the fund fromkeepingpacewithpeers.
Since the fund's June 2008 inception, its 3.3% annualized
gain through Jan. 31, 2016, slightly beat the average
world-stock fund's 3.1% return.
Relative to peers, low fees give the fund a big head
start, as do low tax and transaction costs. The fund has
yet to make a capital gains distribution, and trading costs
are negligible, which is due, in part, to very low portfolio
turnover. In the three years through January 2016, this
fund's 0.87% tax-cost ratio (which estimates the bite
taxes on dividends and capital gains distributions take out
of returns) was lower than more than 60% of peers'.
Though cheap, there are cheaper options. The fund's
annual expense ratio of 0.25% is higher than the 0.17%
charged by its own exchange-traded fund share class.
Nevertheless, this fund is the only one of its kind available
in a mutual fund retail share class and remains a solid
option for global equity exposure.
Address: Vanguard International Equity Index Fund Minimum Purchase: $3000 Add: $1 IRA: $3000
Valley Forge PA 19482 Min Auto Inv Plan: $3000 Add: $1
800-662-7447 Sales Fees: No-load
Web Address: Management Fee: 0.21%
Inception: 06-26-08 Actual Fees: Mgt:0.21% Dist:—
Advisor: Vanguard Group Inc Expense Projections: 3Yr:$80 5Yr:$141 10Yr:$318
Subadvisor: None Income Distribution: Quarterly
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