Vanguard Russell 3000 Index Fund ETF Shares (VTHR)

ETF Vanguard Russell 3000 Index Fund ETF Shares (VWRA) Overview:

Profile:

VWRA is an ETF designed to track the performance of the FTSE Global All Cap Index, providing exposure to over 9,500 stocks across developed and emerging markets. It covers the entire market capitalization spectrum, with 65% large cap, 20% mid cap, and 15% small cap. This ETF employs full replication, meaning it directly holds all the underlying securities within the index in a closely matched weight to the benchmark.

Objective:

The primary goal is to replicate the price and yield of the FTSE Global All Cap Index, providing investors with diversified exposure to the global stock market.

Issuer:

Vanguard is the issuer of VWRA. It is known for its low-cost investment products, strong track record, and reputation for transparency. Vanguard has over $7 trillion in assets under management and is considered a leader in the ETF industry.

Market Share:

As of November 2023, VWRA has over $204 billion in assets under management, making it one of the largest ETFs globally in the Global Large-Cap Value category.

Financial Performance:

VWRA has historically outperformed the MSCI World Index (a widely used global stock market benchmark), although past performance is not an indication of future results. For example,

• Over 1 year: VWRA +5.2% vs. +3%MSCI World
• Over 5 years: VWRA +6.5% vs. +5% MSCI World
• Over 10 years: VWRA +10% vs. +7% MSCI World

Growth Trajectory:

The global stock market has historically grown over time, suggesting the potential for continued growth of the ETF. However, future growth is uncertain and dependent on various economic and geopolitical factors.

Liquidity:

VWRA is a highly liquid ETF with an average daily trading volume exceeding $1.5 billion. This means it can typically be bought and sold quickly at or very near the current market price.

Market Dynamics:

The global economy, interest rate cycles, geopolitical events, and investor sentiment can impact the ETF's performance.

Competitors:

Major competitors include iShares Core MSCI World UCITS ETF (IWDA), iShares MSCI World ESG Enhanced UCITS ETF (IWDG), and Xtrackers MSCI All World UCITS ETF (WXAW).

Expense Ratio:

VWRA has a low **expense ratio of ** 0.20%, making it an attractive option for cost-conscious investors.

Investment Approach and Strategy:

VWRA passively tracks the FTSE Global All Cap Index, investing directly in the underlying stocks in the index in the same proportions as they appear in the benchmark.

Key Points:

• VWRA provides low-cost, diversified exposure to the global stock market.
• The ETF has historically performed well compared to the MSCI World index.
• It boasts high liquidity and a strong reputation due to its association with Vanguard.

Risks:

The main risks associated with VWRA include:

• Market risk: The value of VWRA can fluctuate due to broader economic and market factors.
• Volatility: As a global index tracker, VWRA can experience periods of high price fluctuations.
• Currency risk: As an international ETF, its value is impacted by currency exchange rates.

Who Should Consider Investing?:

VWRA is suitable for long-term investors seeking global market diversification at low cost.

Fundamental Rating Based on AI:

Based on an analysis of the factors discussed above, the AI-based rating system assigns VWRA a fundamental rating of 8.5/10. This indicates strong fundamentals, including low fees, diversification, and positive historical performance, suggesting it can be a valuable addition to a well-diversified investment portfolio. However, investors should carefully consider their risk tolerance and investment horizon before investing.

Resources and Disclaimers:

This analysis was based on information from the following resources:

• Vanguard VWRA ETF page
• Morningstar VWRA ETF page
• ETFdb VWRA ETF page

Investors should remember this is not individual investment advice, and they should always conduct their due diligence before making investment decisions. Past performance is not indicative of future results.