# EDGAR Filing Document

**Accession Number:** 0000734383
**File Stem:** 0001104659-23-039770
**Filing Date:** 2023-3
**Character Count:** 852521
**Document Hash:** 3bd5d4097e56e133c2cbe7df1a490289
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-039770.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001104659-23-039770

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 48

**CONFORMED PERIOD OF REPORT**: 20230131

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**EFFECTIVENESS DATE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VANGUARD SPECIALIZED FUNDS
- **CENTRAL INDEX KEY:** 0000734383
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03916
- **FILM NUMBER:** 23783704

**BUSINESS ADDRESS:**
- **STREET 1:** PO BOX 2600
- **STREET 2:** V26
- **CITY:** VALLEY FORGE
- **STATE:** PA
- **ZIP:** 19482
- **BUSINESS PHONE:** 6106691000

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 2600
- **STREET 2:** V26
- **CITY:** VALLEY FORGE
- **STATE:** PA
- **ZIP:** 19482

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VANGUARD SPECIALIZED FUNDS/
- **DATE OF NAME CHANGE:** 20011121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VANGUARD SPECIALIZED PORTFOLIOS INC
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### Vanguard Dividend Growth Fund (Series ID: S000002920)

| Class ID   | Class Name      | Ticker Symbol   |
|:---|:---|:---|
| C000008004 | Investor Shares | VDIGX           |

### Vanguard Energy Fund (Series ID: S000002921)

| Class ID   | Class Name      | Ticker Symbol   |
|:---|:---|:---|
| C000008005 | Investor Shares | VGENX           |
| C000008006 | Admiral Shares  | VGELX           |

### Vanguard Health Care Fund (Series ID: S000002922)

| Class ID   | Class Name      | Ticker Symbol   |
|:---|:---|:---|
| C000008007 | Investor Shares | VGHCX           |
| C000008008 | Admiral Shares  | VGHAX           |

### Vanguard Global Capital Cycles Fund (Series ID: S000002923)

| Class ID   | Class Name      | Ticker Symbol   |
|:---|:---|:---|
| C000008009 | Investor Shares | VGPMX           |

### Vanguard Real Estate Index Fund (Series ID: S000002924)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000008010 | Investor Shares      | VGSIX           |
| C000008011 | Admiral Shares       | VGSLX           |
| C000008012 | Institutional Shares | VGSNX           |
| C000032424 | ETF Shares           | VNQ             |

### Vanguard Dividend Appreciation Index Fund (Series ID: S000011322)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000031350 | ETF Shares     | VIG             |
| C000135474 | Admiral Shares | VDADX           |

### Vanguard Global ESG Select Stock Fund (Series ID: S000065529)

| Class ID   | Class Name      | Ticker Symbol   |
|:---|:---|:---|
| C000211921 | Admiral Shares  | VESGX           |
| C000211922 | Investor Shares | VEIGX           |

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT** 

**OF** 

**REGISTERED MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act file number**: 811-03916**

---

| | |
|:---|:---|
| Name of Registrant: | **Vanguard Specialized Funds** |
| Address of Registrant: | **P.O. Box 2600** |

---

**Valley Forge, PA 19482**

---

| | |
|:---|:---|
| Name and address of agent for service: | **Anne E. Robinson, Esquire** |

---

**P.O. Box 876**

**Valley Forge, PA 19482**

Registrant's telephone number, including area code: **(610) 669-1000**

Date of fiscal year end: January 31

Date of reporting period: February 1, 2022—January 31, 2023

**Item 1:** Reports to Shareholders

![](tm234052d2energyfunarq51i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Energy Fund

------

Contents

---

| | |
|:---|:---|
| Your Fund's Performance at a Glance<br>| 1 |
| Advisor's Report<br>| 2 |
| About Your Fund's Expenses<br>| 5 |
| Performance Summary<br>| 7 |
| Financial Statements<br>| 9 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

------

Your Fund's Performance at a Glance

• For the 12 months ended January 31, 2023, Vanguard Energy Fund returned 16.72% for Investor Shares and 16.83% for Admiral Shares. It outpaced the 11.88% return of its benchmark index.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation readings around much of the world continued climbing to multidecade
highs amid supply chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that
inflation might have peaked, and central banks began slowing their pace of interest rate hikes.

• Sticky inflation, dramatic rate hikes, and fears of a recession weighed heavily on sentiment in the stock market. Energy was one of the few sectors that posted positive returns for the 12-month period.

• The fund's stock selection in integrated oil and gas companies lagged those in the benchmark. That and the fund's underweight to that sector were the largest detractors to
relative performance. However, this was more than offset by stock selection in other sectors—notably in oil and gas refining and marketing, and electric utilities—that boosted absolute and relative
results. The fund's overweight to oil and gas exploration and production also helped relative performance.

#### Market Barometer

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

------

Advisor's Report

#### Investment Strategy
Vanguard Energy Fund focuses on long-term total return through exposure to diversified energy companies. We believe that the future of energy will become increasingly carbon-free and therefore take a comprehensive approach to defining opportunities in the evolving sector.

Our custom energy and utilities benchmark, which is meant to represent the breadth of this opportunity, is a market-cap-weighted index of the holdings in the existing MSCI ACWI Energy and MSCI ACWI Utilities indexes, which seek to measure the performance of energy-related and utility equities, respectively, in developed and emerging markets. We invest in a diverse set of subindustries, including integrated oil, oil and gas exploration and production, refining and marketing, energy equipment and services, electric networks, natural gas networks, and independent, renewable power. Our portfolio represents the energy sector as a whole, though the weightings of the underlying subindustries reflect the relative attractiveness of stocks within them.

#### Investment environment
During the 12 months ended January 31, 2023, global equities as represented by the MSCI All Country World Index returned –7.54%. In contrast, our custom energy and utilities benchmark returned 11.88%.

In 2022, energy prices continued to exhibit strength, supported by an

undersupplied market and the ongoing conflict between Russia and Ukraine. While demand is slowly returning to pre-pandemic levels, particularly with China's reopening, oil producer discipline remains intact. OPEC+ continues to manage the market, while U.S. producers maintain their recently acquired preference for shareholder distributions over increasing volumes. This dynamic remains in place heading into 2023, with the added prospect of tightening OPEC+ spare capacity and the expected end of withdrawals from the U.S. Strategic Petroleum Reserve.

#### Our successes and shortfalls
The fund returned 16.72% for Investor Shares, outpacing the benchmark return of 11.88% during the 12-month period. Security selection decisions contributed to relative outperformance, while sector allocation, a result of our stock selection process, detracted.

Strong stock selection in the refining and marketing sector added to positive relative performance. From an allocation perspective, the fund's overweight to integrated oils was a detractor.

On an individual security basis, an overweight to Marathon Petroleum and not owning Gazprom added the most value, while not owning ExxonMobil and an overweight to Lukoil detracted the most.

Marathon Petroleum is a U.S. petroleum refining, marketing, and transportation company. Shares outperformed during the period as the company reported strong

------

results and executed a significant share buyback. Marathon's adjusted earnings and revenues beat estimates, benefiting from a tight supply-demand balance for refined products. Gazprom, the Russian multinational energy company, had its international shares delisted from major stock exchanges following the Russian invasion of Ukraine.

Not owning ExxonMobil weighed on relative performance over the period as the company performed well, aided by high oil and gas prices and record high refining margins. Nevertheless, looking forward, we continue to prefer the European majors (Shell, BP, TotalEnergies) relative to the U.S. leaders (ExxonMobil and Chevron) for three key reasons: The European companies currently offer more attractive valuations, lower dividend payout ratios, and more explicit strategies attempting to address the energy transition.

We are particularly bullish on Shell and BP because of their leadership positions in liquefied natural gas (LNG) and strong customer-facing businesses. Currently, Shell and BP offer superior valuations and high free cash flow yields after dividends. Now that their balance sheets are in relatively strong positions, we expect continued and significant share buybacks in 2023.

#### The fund's positioning
While there are still uncertainties about the pace and shape of the global economic recovery, we believe that oil supply and demand balances will remain

relatively tight as we enter 2023, offering a supportive backdrop for energy stocks. We anticipate tight supply will be driven by ongoing discipline from OPEC+, sanctions on Russian oil, and continuing capital discipline from U.S. shale producers, while China's earlier-than-expected emergence from its zero-COVID policy should support stronger-than-expected full-year demand.

A warm start to winter has pushed near-term natural gas prices lower globally. As a result of the more favorable backdrop for oil over natural gas, we have shifted positioning more toward oil-leveraged stocks (such as Diamondback Energy) and away from gas-leveraged stocks (such as EQT Corporation). However, in the long term, we remain positive on global gas and LNG fundamentals and so retain large positions in major gas and LNG suppliers, notably Shell, BP, TotalEnergies, and Equinor.

The disruptions in energy supply caused by Russia's invasion of Ukraine have led governments globally to reassess energy security and redouble efforts toward domestic energy supply. Added to the megatrend of decarbonization, this means that carbon-free domestic electricity is now experiencing multiple major tailwinds. The support for solar, wind, battery storage, and nuclear power in the U.S. Inflation Reduction Act (IRA), the extension of nuclear power plant lives in Europe, and Europe's planned response to the U.S. IRA are all evidence of strong and lasting support for clean electricity and decarbonization. To benefit from this

------

megatrend, the fund retains a meaningful position in clean energy infrastructure, concentrated in electricity networks and clean energy generation.

Over the long term, we believe that the growth and stability provided by clean energy exposure, combined with the higher yet more volatile returns provided by oil and gas equities, will allow the fund to deliver attractive risk-adjusted returns.

G. Thomas Levering,

Senior Managing Director,

Global Industry Analyst

Wellington Management Company llp

February 10, 2023

------

About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

------

---

| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| **Based on Actual Fund Return** |  |  |  |
| Energy Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1089.20 | &nbsp;&nbsp;&nbsp;&nbsp;$2.53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral™ Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1089.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 |
| **Based on Hypothetical 5% Yearly Return** |  |  |  |
| Energy Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1022.79 | &nbsp;&nbsp;&nbsp;&nbsp;$2.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1023.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04 |

---

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.48% for Investor Shares and 0.40% for Admiral Shares. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

------

Energy Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2energyfunarq51i002.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2energyfunarq51i003.jpg) | &nbsp;&nbsp;&nbsp;Energy Fund Investor Shares | &nbsp;&nbsp;&nbsp;16.72% | &nbsp;&nbsp;&nbsp;&nbsp;0.13% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.72% | &nbsp;&nbsp;&nbsp;&nbsp;$10747 |
| ![](tm234052d2energyfunarq51i004.jpg) | &nbsp;&nbsp;&nbsp;Spliced Energy Index | &nbsp;&nbsp;&nbsp;11.88 | &nbsp;&nbsp;&nbsp;&nbsp;-2.23 | &nbsp;&nbsp;&nbsp;&nbsp;-0.84 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9194 |
| ![](tm234052d2energyfunarq51i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

Spliced Energy Index: MSCI All Country World Energy Index through October 20, 2020; MSCI All Country World Energy + Utilities Index thereafter.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $50,000<br> Investment |
| Energy Fund Admiral Shares | &nbsp;&nbsp;&nbsp;16.83% | &nbsp;&nbsp;&nbsp;&nbsp;0.21% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.80% | &nbsp;&nbsp;&nbsp;&nbsp;$54137 |
| Spliced Energy Index | &nbsp;&nbsp;&nbsp;11.88 | &nbsp;&nbsp;&nbsp;-2.23 | &nbsp;&nbsp;&nbsp;&nbsp;-0.84 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45972 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157905 |

---

See Financial Highlights for dividend and capital gains information.

------

Energy Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| United States | 53.4% |
| United Kingdom | &nbsp;&nbsp;17.9 |
| France | &nbsp;&nbsp;&nbsp;9.9 |
| Canada | &nbsp;&nbsp;&nbsp;6.5 |
| Italy | &nbsp;&nbsp;&nbsp;3.3 |
| Spain | &nbsp;&nbsp;&nbsp;2.4 |
| Norway | &nbsp;&nbsp;&nbsp;2.0 |
| India | &nbsp;&nbsp;&nbsp;1.6 |
| Germany | &nbsp;&nbsp;&nbsp;1.3 |
| Brazil | &nbsp;&nbsp;&nbsp;1.0 |
| Other | &nbsp;&nbsp;&nbsp;0.7 |

---

The table reflects the fund's investments, except for short-term investments.

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Energy Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
| **Common Stocks (99.1%)** | **Common Stocks (99.1%)** | **Common Stocks (99.1%)** | **Common Stocks (99.1%)** |
| **Brazil (1.0%)** | **Brazil (1.0%)** | **Brazil (1.0%)** | **Brazil (1.0%)** |
|  | Petroleo Brasileiro SA | 10733525 | &nbsp;&nbsp;&nbsp;&nbsp;62291 |
| **Canada (6.4%)** | **Canada (6.4%)** | **Canada (6.4%)** | **Canada (6.4%)** |
|  | Cenovus Energy Inc. | 9517662 | &nbsp;&nbsp;&nbsp;&nbsp;190163 |
| <sup>1</sup> | Enbridge Inc. | 3586487 | &nbsp;&nbsp;&nbsp;&nbsp;146851 |
|  | ARC Resources Ltd. | 1735762 | &nbsp;&nbsp;&nbsp;&nbsp;20168 |
|  | TC Energy Corp. | &nbsp;&nbsp;&nbsp;&nbsp;426524 | &nbsp;&nbsp;&nbsp;&nbsp;18378 |
|  | TC Energy Corp. (XTSE) | &nbsp;&nbsp;&nbsp;&nbsp;398407 | &nbsp;&nbsp;&nbsp;&nbsp;17187 |
|  |  |  | **392747** |
| **China (0.7%)** | **China (0.7%)** | **China (0.7%)** | **China (0.7%)** |
|  | China Yangtze Power Co. Ltd. Class A | 13244460 | &nbsp;&nbsp;&nbsp;&nbsp;40793 |
| **France (9.8%)** | **France (9.8%)** | **France (9.8%)** | **France (9.8%)** |
|  | TotalEnergies SE | 4006239 | &nbsp;&nbsp;&nbsp;&nbsp;247669 |
|  | Engie SA (XPAR) | 12909716 | &nbsp;&nbsp;&nbsp;&nbsp;183316 |
|  | TotalEnergies SE ADR | 2761952 | &nbsp;&nbsp;&nbsp;&nbsp;171352 |
|  |  |  | **602337** |
| **Germany (1.3%)** | **Germany (1.3%)** | **Germany (1.3%)** | **Germany (1.3%)** |
|  | RWE AG | 1840525 | &nbsp;&nbsp;&nbsp;&nbsp;81938 |
| **India (1.6%)** | **India (1.6%)** | **India (1.6%)** | **India (1.6%)** |
|  | Power Grid Corp. of India Ltd. | 37222540 | &nbsp;&nbsp;&nbsp;&nbsp;98779 |
| **Italy (3.3%)** | **Italy (3.3%)** | **Italy (3.3%)** | **Italy (3.3%)** |
|  | Tenaris SA | 6229860 | &nbsp;&nbsp;&nbsp;&nbsp;110398 |
|  | Enel SpA | 15780455 | &nbsp;&nbsp;&nbsp;&nbsp;92917 |
|  |  |  | **203315** |
| **Norway (2.0%)** | **Norway (2.0%)** | **Norway (2.0%)** | **Norway (2.0%)** |
|  | Equinor ASA | 3973475 | &nbsp;&nbsp;&nbsp;&nbsp;121098 |
| **Russia (0.0%)** | **Russia (0.0%)** | **Russia (0.0%)** | **Russia (0.0%)** |
| <sup>\*,2</sup> | LUKOIL PJSC ADR | 1423477 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Spain (2.4%)** | **Spain (2.4%)** | **Spain (2.4%)** | **Spain (2.4%)** |
|  | Iberdrola SA (XMAD) | 12033572 | &nbsp;&nbsp;&nbsp;&nbsp;141175 |
|  | Iberdrola SA | &nbsp;&nbsp;&nbsp;&nbsp;201835 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2358 |
|  |  |  | **143533** |
| **United Kingdom (17.7%)** | **United Kingdom (17.7%)** | **United Kingdom (17.7%)** | **United Kingdom (17.7%)** |
|  | Shell plc (XLON) | 11675963 | &nbsp;&nbsp;&nbsp;&nbsp;342780 |
|  | BP plc | 45226687 | &nbsp;&nbsp;&nbsp;&nbsp;273181 |
|  | Shell plc ADR | 3863908 | &nbsp;&nbsp;&nbsp;&nbsp;227237 |
|  | BP plc ADR | 3529398 | &nbsp;&nbsp;&nbsp;&nbsp;127870 |
|  | National Grid plc | 8844572 | &nbsp;&nbsp;&nbsp;&nbsp;112440 |
|  |  |  | **1083508** |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Shares** | **Market<br> Value• ($000)** |
| **United States (52.9%)** | **United States (52.9%)** | **United States (52.9%)** | **United States (52.9%)** |
|  | Marathon Petroleum Corp. | 3629400 | &nbsp;&nbsp;&nbsp;&nbsp;466450 |
|  | ConocoPhillips | 3719886 | &nbsp;&nbsp;&nbsp;&nbsp;453343 |
|  | Duke Energy Corp. | 1751647 | &nbsp;&nbsp;&nbsp;&nbsp;179456 |
|  | Diamondback Energy Inc. | 1114821 | &nbsp;&nbsp;&nbsp;&nbsp;162898 |
|  | NextEra Energy Inc. | 2167740 | &nbsp;&nbsp;&nbsp;&nbsp;161778 |
|  | Exelon Corp. | 3768354 | &nbsp;&nbsp;&nbsp;&nbsp;158987 |
|  | EOG Resources Inc. | 1167829 | &nbsp;&nbsp;&nbsp;&nbsp;154445 |
|  | Coterra Energy Inc. | 6120212 | &nbsp;&nbsp;&nbsp;&nbsp;153189 |
|  | Southern Co. | 2087721 | &nbsp;&nbsp;&nbsp;&nbsp;141297 |
|  | FirstEnergy Corp. | 3334765 | &nbsp;&nbsp;&nbsp;&nbsp;136559 |
|  | Chesapeake Energy Corp. | 1507060 | &nbsp;&nbsp;&nbsp;&nbsp;130692 |
|  | Sempra Energy (XNYS) | &nbsp;&nbsp;&nbsp;&nbsp;799397 | &nbsp;&nbsp;&nbsp;&nbsp;128167 |
|  | American Electric Power Co. Inc. | 1313994 | &nbsp;&nbsp;&nbsp;&nbsp;123463 |
|  | Edison International | 1746546 | &nbsp;&nbsp;&nbsp;&nbsp;120337 |
|  | Williams Cos. Inc. | 3153024 | &nbsp;&nbsp;&nbsp;&nbsp;101654 |
|  | Schlumberger NV | 1519225 | &nbsp;&nbsp;&nbsp;&nbsp;86565 |
|  | Constellation Energy Corp. | &nbsp;&nbsp;&nbsp;&nbsp;897726 | &nbsp;&nbsp;&nbsp;&nbsp;76630 |
|  | CenterPoint Energy Inc. | 2528118 | &nbsp;&nbsp;&nbsp;&nbsp;76147 |
|  | Targa Resources Corp. | &nbsp;&nbsp;&nbsp;&nbsp;983114 | &nbsp;&nbsp;&nbsp;&nbsp;73753 |
| <sup>\*</sup> | First Solar Inc. | &nbsp;&nbsp;&nbsp;&nbsp;354172 | &nbsp;&nbsp;&nbsp;&nbsp;62901 |
|  | Avangrid Inc. | 1106747 | &nbsp;&nbsp;&nbsp;&nbsp;46672 |
|  | Pioneer Natural Resources Co. | &nbsp;&nbsp;&nbsp;&nbsp;188653 | &nbsp;&nbsp;&nbsp;&nbsp;43456 |
|  |  |  | **3238839** |
| **Total Common Stocks (Cost $4,404,902)** | **Total Common Stocks (Cost $4,404,902)** | **Total Common Stocks (Cost $4,404,902)** | **6069178** |
| **Temporary Cash Investments (2.8%)** | **Temporary Cash Investments (2.8%)** | **Temporary Cash Investments (2.8%)** | **Temporary Cash Investments (2.8%)** |
| **Money Market Fund (1.8%)** | **Money Market Fund (1.8%)** | **Money Market Fund (1.8%)** | **Money Market Fund (1.8%)** |
| <sup>3,4</sup> | Vanguard Market Liquidity Fund 4.437% | 1097977 | &nbsp;&nbsp;&nbsp;&nbsp;109787 |

---

------

Energy Fund

---

| | | |
|:---|:---|:---|
|  | Face<br> Amount<br> ($000) | Market<br> Value• ($000) |
| **Repurchase Agreement (1.0%)** | **Repurchase Agreement (1.0%)** | **Repurchase Agreement (1.0%)** |
| NatWest Markets plc, 4.260%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $62,907,000, collateralized by U.S. Treasury Note/Bond 2.375%, 4/30/26, with a value of $64,158,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62900 | &nbsp;&nbsp;&nbsp;&nbsp;62900 |
| **Total Temporary Cash Investments (Cost $172,686)** | **Total Temporary Cash Investments (Cost $172,686)** | **172687** |
| **Total Investments (101.9%) (Cost $4,577,588)** | **Total Investments (101.9%) (Cost $4,577,588)** | **6241865** |
| **Other Assets and Liabilities—Net (-1.9%)** | **Other Assets and Liabilities—Net (-1.9%)** | **(115896)** |
| **Net Assets (100%)** | **Net Assets (100%)** | **6125969** |
| Cost is in $000. | Cost is in $000. | Cost is in $000. |

---

---

| | |
|:---|:---|
| • | See Note A in Notes to Financial Statements. |
| \* | Non-income-producing security. |
| 1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $104,411,000. |
| 2 | Security value determined using significant unobservable inputs. |
| 3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 4 | Collateral of $109,650,000 was received for securities on loan. |
|  | ADR—American Depositary Receipt. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value<sup>1</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated Issuers (Cost $4,467,802) | &nbsp;&nbsp;6132078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliated Issuers (Cost $109,786) | &nbsp;&nbsp;&nbsp;&nbsp;109787 |
| Total Investments in Securities | 6241865 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228 |
| Foreign Currency, at Value (Cost $180) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;179 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18377 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6644 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2325 |
| **Total Assets** | **6269618** |
| **Liabilities** |  |
| Due to Custodian | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1622 |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18388 |
| Collateral for Securities on Loan | &nbsp;&nbsp;&nbsp;&nbsp;109650 |
| Payables to Investment Advisor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4127 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5138 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;825 |
| Deferred Foreign Capital Gains Taxes | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3899 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;**143649** |
| **Net Assets** | **6125969** |
| 1 Includes $104,411,000 of securities on loan. |  |
| **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | 4882222 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;1243747 |
| **Net Assets** | **6125969** |
| **Investor Shares—Net Assets** |  |
| **Applicable to 41,994,923 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**1949974** |
| **Net Asset Value Per Share—Investor Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$46.43** |
| **Admiral Shares—Net Assets** |  |
| **Applicable to 47,934,110 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **4175995** |
| **Net Asset Value Per Share—Admiral Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$87.12** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;300110 |
| Interest<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1220 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301488 |
| **Expenses** |  |
| Investment Advisory Fees—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3520 |
| The Vanguard Group—Note C |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31 |
| Shareholders' Reports—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84 |
| Shareholders' Reports—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;348 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23570 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23561 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**277927** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold<sup>2,3</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;264307 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2045) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**262262** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities<sup>2,4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;339360 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;279 |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**339639** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**879828** |

---

---

| | |
|:---|:---|
| 1 | Dividends are net of foreign withholding taxes of $12,111,000. |
| 2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, $50,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
| 3 | Realized gain (loss) is net of foreign capital gain taxes of $38,000. |
| 4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($321000). |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;277927 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;177015 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;262262 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116270 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;339639 | &nbsp;&nbsp;&nbsp;1155587 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;&nbsp;&nbsp;879828 | &nbsp;&nbsp;&nbsp;1448872 |
| **Distributions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(85883) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(57404) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;(187798) | &nbsp;&nbsp;&nbsp;&nbsp;(119222) |
| Total Distributions | &nbsp;&nbsp;&nbsp;(273681) | &nbsp;&nbsp;&nbsp;&nbsp;(176626) |
| **Capital Share Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(18400) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14569) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;159170 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7935 |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;&nbsp;140770 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6634) |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;746917 | &nbsp;&nbsp;&nbsp;1265612 |
| **Net Assets** |  |  |
| **Beginning of Period** | **5379052** | &nbsp;&nbsp;&nbsp;**4113440** |
| **End of Period** | **6125969** | &nbsp;&nbsp;&nbsp;**5379052** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$41.64** | &nbsp;&nbsp;&nbsp;**$31.66** | &nbsp;&nbsp;&nbsp;**$43.28** | &nbsp;&nbsp;&nbsp;**$47.85** | &nbsp;&nbsp;&nbsp;**$55.62** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.099 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.364 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.449 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.519 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.300 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.807 | &nbsp;&nbsp;&nbsp;&nbsp;10.019 | &nbsp;&nbsp;&nbsp;&nbsp;(11.669) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.524) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.788) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.906 | &nbsp;&nbsp;&nbsp;&nbsp;11.383 | &nbsp;&nbsp;&nbsp;&nbsp;(10.220) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.005) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6.488) |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.116) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.403) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.400) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.565) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.282) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.116) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.403) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.400) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.565) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.282) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$46.43** | &nbsp;&nbsp;&nbsp;**$41.64** | &nbsp;&nbsp;&nbsp;**$31.66** | &nbsp;&nbsp;&nbsp;**$43.28** | &nbsp;&nbsp;&nbsp;**$47.85** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**16.72%** | &nbsp;&nbsp;&nbsp;**36.33%** | &nbsp;&nbsp;&nbsp;**-23.55%** | &nbsp;&nbsp;&nbsp;**-6.55%** | &nbsp;&nbsp;&nbsp;**-11.48%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$1950 | &nbsp;&nbsp;&nbsp;$1771 | &nbsp;&nbsp;&nbsp;$1363 | &nbsp;&nbsp;&nbsp;$1793 | &nbsp;&nbsp;&nbsp;$2265 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.46%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.41% | &nbsp;&nbsp;&nbsp;0.37% | &nbsp;&nbsp;&nbsp;0.32% | &nbsp;&nbsp;&nbsp;0.37% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;4.70% | &nbsp;&nbsp;&nbsp;3.68% | &nbsp;&nbsp;&nbsp;4.49% | &nbsp;&nbsp;&nbsp;3.20% | &nbsp;&nbsp;&nbsp;2.42% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;16% | &nbsp;&nbsp;&nbsp;14% | &nbsp;&nbsp;&nbsp;55% | &nbsp;&nbsp;&nbsp;48% | &nbsp;&nbsp;&nbsp;31% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.06%, 0.02%, (0.02%), (0.06%), and (0.01%). |
| 4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.46%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Admiral Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$78.12** | &nbsp;&nbsp;&nbsp;**$59.39** | &nbsp;&nbsp;&nbsp;**$81.18** | &nbsp;&nbsp;&nbsp;**$89.77** | &nbsp;&nbsp;&nbsp;**$104.35** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.014 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.615 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.787 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.511 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.026 | &nbsp;&nbsp;&nbsp;&nbsp;18.794 | &nbsp;&nbsp;&nbsp;&nbsp;(21.903) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8.512) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14.600) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;13.040 | &nbsp;&nbsp;&nbsp;&nbsp;21.409 | &nbsp;&nbsp;&nbsp;&nbsp;(19.116) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.586) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12.089) |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.040) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.679) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.674) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.004) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.491) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.040) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.679) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.674) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.004) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.491) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$87.12** | &nbsp;&nbsp;&nbsp;**$78.12** | &nbsp;&nbsp;&nbsp;**$59.39** | &nbsp;&nbsp;&nbsp;**$81.18** | &nbsp;&nbsp;&nbsp;&nbsp;**$89.77** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**16.83%** | &nbsp;&nbsp;&nbsp;**36.43%** | &nbsp;&nbsp;&nbsp;**-23.47%** | &nbsp;&nbsp;&nbsp;**-6.50%** | &nbsp;&nbsp;&nbsp;**-11.40%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$4176 | &nbsp;&nbsp;&nbsp;$3608 | &nbsp;&nbsp;&nbsp;$2751 | &nbsp;&nbsp;&nbsp;$4388 | &nbsp;&nbsp;&nbsp;$5606 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.38%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.33% | &nbsp;&nbsp;&nbsp;0.29% | &nbsp;&nbsp;&nbsp;0.24% | &nbsp;&nbsp;&nbsp;0.29% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;4.78% | &nbsp;&nbsp;&nbsp;3.76% | &nbsp;&nbsp;&nbsp;4.60% | &nbsp;&nbsp;&nbsp;3.28% | &nbsp;&nbsp;&nbsp;2.50% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;16% | &nbsp;&nbsp;&nbsp;14% | &nbsp;&nbsp;&nbsp;55% | &nbsp;&nbsp;&nbsp;48% | &nbsp;&nbsp;&nbsp;31% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.06%, 0.02%, (0.02%), (0.06%), and (0.01%). |
| 4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.38%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Energy Fund

Notes to Financial Statements

Vanguard Energy Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations.

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

**A.** The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of

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Energy Fund

prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the

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Energy Fund

higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

**B.** Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments
based on the fund's performance relative to the MSCI ACWI Energy Index for periods prior to October 21, 2020, and to the current benchmark MSCI ACWI Energy + Utilities Index, beginning October 21, 2020, for the
preceding three years. The benchmark change will be fully phased in by October 2023. For the year ended January 31, 2023, the investment advisory fee paid represented an effective annual basic rate of 0.15% of the
fund's average net assets, before a net increase of $3,520,000 (0.06%) based on performance.

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Energy Fund

**C.** In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution
services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled
twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $228,000, representing less than 0.01% of the fund's net assets and 0.09% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

**D.** The fund has asked its investment advisor to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated.
Such rebates are used solely to reduce the fund's management and administrative expenses. For the year ended January 31, 2023, these arrangements reduced the fund's expenses by $9,000 (an annual rate of
less than 0.01% of average net assets).

**E.** Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or
methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments as of January 31, 2023, based on the inputs used to value them:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks—North and South America | 3693877 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;3693877 |
| Common Stocks—Other | &nbsp;&nbsp;&nbsp;&nbsp;526459 | &nbsp;&nbsp;&nbsp;1848842 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;2375301 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;109787 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62900 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;172687 |
| Total | &nbsp;&nbsp;4330123 | &nbsp;&nbsp;&nbsp;1911742 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;6241865 |

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**F.** Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no
effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable foreign currency transactions and tax expense on capital gains were
reclassified between the individual components of total distributable earnings (loss).

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Energy Fund

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11515 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;(426695) |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;1658927 |

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The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;273681 | &nbsp;&nbsp;&nbsp;&nbsp;176626 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Total | &nbsp;&nbsp;&nbsp;273681 | &nbsp;&nbsp;&nbsp;&nbsp;176626 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;4579311 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;1800978 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(138423) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;1662555 |

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**G.** During the year ended January 31, 2023, the fund purchased $1,112,425,000 of investment securities and sold $947,361,000 of investment securities, other than temporary cash investments.

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Energy Fund

**H.** Capital share transactions for each class of shares were:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |  |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **Investor Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;545067 | &nbsp;&nbsp;&nbsp;&nbsp;12243 | &nbsp;&nbsp;&nbsp;&nbsp;433225 | &nbsp;&nbsp;&nbsp;&nbsp;11662 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79747 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1759 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53100 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1381 |
| Redeemed | &nbsp;&nbsp;&nbsp;(643214) | &nbsp;&nbsp;(14541) | &nbsp;&nbsp;(500894) | &nbsp;&nbsp;(13551) |
| Net Increase (Decrease)—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(18400) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(539) | &nbsp;&nbsp;&nbsp;&nbsp;(14569) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(508) |
| **Admiral Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;1135398 | &nbsp;&nbsp;&nbsp;&nbsp;13603 | &nbsp;&nbsp;&nbsp;&nbsp;851809 | &nbsp;&nbsp;&nbsp;&nbsp;12163 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;166639 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1960 | &nbsp;&nbsp;&nbsp;&nbsp;105042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1455 |
| Redeemed | (1142867) | &nbsp;&nbsp;(13815) | &nbsp;&nbsp;(948916) | &nbsp;&nbsp;&nbsp;(13745) |
| Net Increase (Decrease)—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;159170 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1748 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7935 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(127) |

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**I.** Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Energy Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Energy Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023, the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP <br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

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#### Tax information (unaudited)
Pending Client Information

For corporate shareholders, 51.3%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $257,616,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

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experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. (investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School

(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

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#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) and deputy chief compliance officer (2017–2019) of State Street.

#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

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| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. Mclsaac** | **Lauren Valente** |

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![](tm234052d2energyfunarq51i006.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> Vanguard Marketing Corporation, Distributor.

Q510 032023

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![](tm234052d2globcaparq530i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Global Capital Cycles Fund

------

*Contents*

---

| | |
|:---|:---|
| [Your Fund's Performance at a Glance](#xx_cd8097f0-4272-498d-abe5-51256909bff3_1tm234052d2_globcaparq530)<br>| 1 |
| [Advisor's Report](#xx_6c7b18b9-d053-4975-aafc-b408ebb7bbf1_1tm234052d2_globcaparq530)<br>| 2 |
| [AboutYour Fund's Expenses](#xx_f3f1d158-1b70-4320-bdf2-03f699e97348_1tm234052d2_globcaparq530)<br>| 6 |
| [Performance Summary](#xx_6954ed86-b3c1-4d7d-8881-e58a16b8bb6f_1tm234052d2_globcaparq530)<br>| 8 |
| [Financial Statements](#xx_d2d82de0-95c4-40ee-b733-c182cd8baca7_1tm234052d2_globcaparq530)<br>| 10 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

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Your Fund's Performance at a Glance

• Vanguard Global Capital Cycles Fund returned 13.81% for the 12 months ended January 31, 2023, more than 17 percentage points higher than its performance benchmark, the S&P Global BMI Metals & Mining 25%
Weighted Index.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation across much of the world continued climbing to multidecade highs amid
supply-chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that inflation might
have peaked, and central banks began slowing their pace of interest rate hikes.

• In this environment, the majority of the sectors the fund invests in had positive returns. Strong stock selection in materials and financials, the two largest sectors, contributed most to the fund's
outperformance. Real estate was the biggest net detractor.

• By market, U.S. and U.K. stocks contributed the most to performance, while an underweight allocation to Australia proved a net detractor.

• Over the decade ended January 31, 2023, the fund's average annual return of –0.49% lagged the 0.15% return of its spliced benchmark index.

*Market Barometer*

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

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[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Advisor's Report

For the 12 months ended January 31, 2023, Vanguard Global Capital Cycles Fund returned 13.81%, net of fees and expenses, outperforming the –3.30% return of the S&P Global BMI Metals & Mining 25% Weighted Index.

#### The investment environment
Global equities, as measured by the MSCI All Country World Index, declined for the 12-month period as markets were rattled by slowing global economic growth, increased inflation, rising interest rates, and the resurgence of COVID-19 in some countries.

Equities opened the year lower as volatility spiked sharply, driven by rising geopolitical instability and tighter monetary policy enacted to address accelerating inflation. Following Russia's large-scale military attack on Ukraine, severe economic sanctions largely cut off the Russian economy from global financial markets and limited the ability of the Russian central bank to take counteractive measures.

Global equities fell sharply in the second quarter amid continued elevated volatility as investors grew increasingly concerned about the economic toll of persistent geopolitical instability, soaring inflation, and constrained supply chains. Global equities fell in the third quarter as risk-off sentiment was driven by higher inflation, rising interest rates, geopolitical turmoil, and growing signs of a global economic slowdown. During the third quarter the Federal Reserve hiked its target interest rate by 150 basis points (bps) in an effort

to rein in decades-high inflation, while the European Central Bank ended its negative interest rate policy, raising rates by 125 bps. (A basis point is one-hundredth of a percentage point.)

Stocks rallied in the final months of the period as investors were encouraged by milder inflation, which provided greater scope for some major central banks to slow their pace of interest rate hikes. In contrast, market sentiment was dented by anxiety about tighter central bank policy amid weakening global economic growth and cautious corporate commentary that added to signs of recession. Chinese equities soared after investors grew bullish on China's economic outlook for 2023 following the government's abrupt COVID-19 pivot that ended mass testing, lockdowns, and quarantine for international travelers.

#### The fund's successes
Both security selection and sector allocation drove relative outperformance in aggregate over the period. Strong security selection within materials (Glencore, Livent), financials (UniCredit, Intact Financial), and industrials (BWX Technologies, Fluor) contributed to performance. An underweight allocation to information technology and an overweight allocation to materials also contributed.

The fund's largest relative contributors included overweight positions in Glencore (materials) and Schlumberger (energy).

Glencore shares ended the period higher as the U.K.-based mining and commodity

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trading company generated record profits on the back of soaring coal prices. We believe the company has everything necessary to benefit from the energy transition as we shift from an energy-intensive economy to a metals-intensive one. Moreover, there will be increased buildout of electricity grids, which will require metals such as copper. The company has communicated a strategy to run down its coal portfolio and use cash flow to reinvest in its portfolio of energy-transition metals. Therefore, we expect the compelling story of environmental, social, and governance (ESG) improvement to expand the pool of potential investors.

Shares of Schlumberger advanced during the period. The U.S.-based oilfield services company reported third-quarter earnings that beat expectations and raised guidance for the rest of 2022 as overseas drilling accelerated following North America's lead amid tight global supply. Schlumberger changed its name to SLB and rebranded as a technology company to go after more work in the clean-energy space. The company plans to continue operating its legacy oil and gas business while expanding into technologies that will help companies curb emissions of carbon dioxide and methane.

#### The fund's shortfalls
Although security selection and sector allocation contributed to relative performance in aggregate, selection within real estate and information technology detracted, as did the fund's underweight to consumer staples.

The fund's largest relative detractors included overweight positions in Medical Properties Trust (real estate) and Intel (information technology).

Shares of Medical Properties Trust ended the period lower as higher interest rates and market conditions weighed heavily on health care real estate. The company also faced additional pressure due to concerns about the financial health of its top tenant. We eliminated our position given negative press driving the stock price lower and our belief that there is little opportunity for long-term growth.

Intel shares declined over the period. The chipmaker's fourth-quarter results missed consensus estimates, driven by lower sales as demand for personal computers retreated from the COVID-19 boom. Management also announced a weaker-than-expected forecast and declined to provide a full-year forecast due to the uncertainty of the current environment. We continue to hold our position as we believe the company has improving business fundamentals at a cheap valuation.

#### The fund's positioning and investment strategy
Toward the end of the year, improvements in global supply chains helped ease inflationary pressures, although geopolitical tensions heightened as the war in Ukraine escalated and global trade relations were stressed.

We believe that several of the driving forces behind higher levels of inflation are not transitory but structural. On the goods

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side, this includes increased environmental regulation and the recent efforts of reshoring as opposed to offshoring, which has been amplified by additional political protectionism. On the services side, we are seeing inflation expectations already feeding through to higher wage growth, while lower participation rates post-COVID and overall demographic changes point toward higher service inflation in the future.

Importantly, we do not expect inflation to move higher in a linear manner. Rather, we expect a more volatile inflationary environment with a higher trend over time—and this transition is already underway. However, given current levels, we see signs that annual inflation should slow in the near term due to the global cyclical slowdown over the next three to six months and global easing in supply-chain bottlenecks.

Our framework continues to identify several compelling dislocations in inflation-sensitive companies in traditional energy and metal sectors as well as in financials, particularly insurance and European banks. We also see attractive opportunities in actors of the energy transition, including along the electric vehicle (EV) value chain, in electric utilities, and in energy services.

With regard to energy and metal producers, we believe the global energy transition will require substantial capital spending and infrastructure development through midcentury, dwarfing previous landmark economic stimulus plans. We think the combination of outsized

spending, policy tailwinds, and shifting consumer and investor attitudes will kick-start this new capital cycle. In the first stages, renewable energy, EVs, and battery storage will use large volumes of energy, raw materials, and base metals. Therefore, the demand for these raw materials is set to grow commensurately, requiring additional supply.

Indeed, project pipelines are thin for most base metals following years of underinvestment, and as such we expect market tightness. The metals industry overall has been navigating increased scrutiny from stakeholders on ESG issues as well as shifting investor preference for sustainable returns. These dynamics have hampered a traditional supply response, pointing to structurally higher margins from metals producers.

In financials, we believe European banks have the potential to continue to surprise on the upside, further increasing capital returns to shareholders, thanks to accelerating loan growth, expanding margins, and still-attractive valuations.

Demand for EVs, in the short run, has been hampered by rising prices for certain commodities such as lithium, but we believe the trajectory remains unchanged, and the adoption curve remains below our estimates, which we think should lead to further bottlenecks in battery capacity and equipment.

Utility companies have historically been able to pass on inflation to consumers. However, in Europe, with inflation spiking, the energy crisis ongoing, and a recession

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looming, more regulatory scrutiny is expected, including the potential implementation of a windfall tax. As such, we favor U.S. utilities to their European counterparts and added to American Electric and Exelon this quarter. Longer term, we believe regulators and governments will continue to allow those companies to have similar return structures, as massive investment will be needed, including to modernize the grid.

Keith E. White,

Senior Managing Director<br> and Equity Portfolio Manager

Wellington Management Company llp

February 10, 2023

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About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

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---

| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
| Global Capital Cycles Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| Based on Actual Fund Return | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1178.30 | &nbsp;&nbsp;&nbsp;&nbsp;$2.42 |
| Based on Hypothetical 5% Yearly Return | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1022.99 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 |

---

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratio for that period is 0.44%. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

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Global Capital Cycles Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2globcaparq530i002.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2globcaparq530i003.jpg) | &nbsp;&nbsp;&nbsp;Global Capital Cycles Fund | &nbsp;&nbsp;&nbsp;13.81% | &nbsp;&nbsp;&nbsp;&nbsp;6.08% | &nbsp;&nbsp;&nbsp;&nbsp;-0.49% | &nbsp;&nbsp;&nbsp;&nbsp;$9525 |
| ![](tm234052d2globcaparq530i004.jpg) | &nbsp;&nbsp;&nbsp;Spliced Global Capital Cycles Index | &nbsp;&nbsp;&nbsp;&nbsp;-3.30 | &nbsp;&nbsp;&nbsp;&nbsp;3.75 | &nbsp;&nbsp;&nbsp;&nbsp;0.15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10151 |
| ![](tm234052d2globcaparq530i005.jpg) | &nbsp;&nbsp;&nbsp;MSCI All Country World Index | &nbsp;&nbsp;&nbsp;&nbsp;-7.99 | &nbsp;&nbsp;&nbsp;&nbsp;5.53 | &nbsp;&nbsp;&nbsp;&nbsp;8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22073 |

---

Spliced Global Capital Cycles Index: S&P Global Custom Metals and Mining Index through September 25, 2018; S&P Global BMI Metals & Mining 25% Weighted Index thereafter.

See Financial Highlights for dividend and capital gains information.

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Global Capital Cycles Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| United States | 27.8% |
| United Kingdom | 26.4 |
| Canada | 16.4 |
| China | &nbsp;&nbsp;&nbsp;5.3 |
| Australia | &nbsp;&nbsp;&nbsp;3.8 |
| Japan | &nbsp;&nbsp;&nbsp;3.6 |
| Germany | &nbsp;&nbsp;&nbsp;3.4 |
| Switzerland | &nbsp;&nbsp;&nbsp;2.4 |
| Italy | &nbsp;&nbsp;&nbsp;2.4 |
| Sweden | &nbsp;&nbsp;&nbsp;1.6 |
| Brazil | &nbsp;&nbsp;&nbsp;1.5 |
| Austria | &nbsp;&nbsp;&nbsp;1.5 |
| France | &nbsp;&nbsp;&nbsp;1.4 |
| South Korea | &nbsp;&nbsp;&nbsp;1.0 |
| Other | &nbsp;&nbsp;&nbsp;1.5 |

---

The table reflects the fund's investments, except for short-term investments.

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Global Capital Cycles Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **Common Stocks (92.0%)** | **Common Stocks (92.0%)** | **Common Stocks (92.0%)** | **Common Stocks (92.0%)** |
| **Australia (3.4%)** | **Australia (3.4%)** | **Australia (3.4%)** | **Australia (3.4%)** |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;BHP Group Ltd. ADR | &nbsp;&nbsp;&nbsp;&nbsp;409441 | &nbsp;&nbsp;&nbsp;&nbsp;28722 |
| | &nbsp;&nbsp;&nbsp;&nbsp;BHP Group Ltd. (XASX) | &nbsp;&nbsp; 677588 | &nbsp;&nbsp;&nbsp;&nbsp;23731 |
|  |  |  | &nbsp;&nbsp; **52453** |
| **Austria (1.4%)** | **Austria (1.4%)** | **Austria (1.4%)** | **Austria (1.4%)** |
| <sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;BAWAG Group AG | &nbsp;&nbsp;&nbsp;&nbsp;336663 | &nbsp;&nbsp;&nbsp;&nbsp;20855 |
| **Brazil (1.4%)** | **Brazil (1.4%)** | **Brazil (1.4%)** | **Brazil (1.4%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Vale SA Class B ADR | &nbsp;&nbsp; 1154895 | &nbsp;&nbsp;&nbsp;&nbsp;21573 |
| **Canada (15.1%)** | **Canada (15.1%)** | **Canada (15.1%)** | **Canada (15.1%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Barrick Gold Corp. | &nbsp;&nbsp;&nbsp; 8017404 | &nbsp;&nbsp; 156740 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Intact Financial Corp. | &nbsp;&nbsp; 270193 | &nbsp;&nbsp; 39198 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Endeavour Mining plc | &nbsp;&nbsp;&nbsp;&nbsp;720255 | &nbsp;&nbsp; 16970 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Agnico Eagle Mines Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;286965 | &nbsp;&nbsp; 16208 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Foran Mining Corp. | &nbsp;&nbsp; 314757 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;793 |
|  |  |  | &nbsp;&nbsp; **229909** |
| **China (4.9%)** | **China (4.9%)** | **China (4.9%)** | **China (4.9%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Alibaba Group Holding Ltd. | &nbsp;&nbsp; 1762644 | &nbsp;&nbsp;&nbsp;&nbsp;24234 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Ping An Insurance Group Co. of China Ltd. Class H | &nbsp;&nbsp; 2920174 | &nbsp;&nbsp;&nbsp;&nbsp;22683 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Contemporary Amperex Technology Co. Ltd. Class A | &nbsp;&nbsp; 189139 | &nbsp;&nbsp; 13120 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Baidu Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;633893 | &nbsp;&nbsp; 10656 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;XPeng Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;592432 | &nbsp;&nbsp; 3118 |
|  |  |  | &nbsp;&nbsp; **73811** |
| **France (1.3%)** | **France (1.3%)** | **France (1.3%)** | **France (1.3%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;STMicroelectronics NV | &nbsp;&nbsp;&nbsp;&nbsp;355632 | &nbsp;&nbsp; 16746 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Rubis SCA | &nbsp;&nbsp; 103412 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2894 |
|  |  |  | &nbsp;&nbsp; **19640** |
| **Germany (3.1%)** | **Germany (3.1%)** | **Germany (3.1%)** | **Germany (3.1%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Bayer AG (Registered) | &nbsp;&nbsp;&nbsp;&nbsp;545555 | &nbsp;&nbsp;&nbsp;&nbsp;33958 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Hypoport SE | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98728 | &nbsp;&nbsp; 13450 |
|  |  |  | &nbsp;&nbsp; **47408** |
| **Greece (0.6%)** | **Greece (0.6%)** | **Greece (0.6%)** | **Greece (0.6%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Public Power Corp. SA | 1080483 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8608 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **Hong Kong (0.8%)** | **Hong Kong (0.8%)** | **Hong Kong (0.8%)** | **Hong Kong (0.8%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;AIA Group Ltd. | 1092248 | &nbsp;&nbsp; 12351 |
| **Italy (2.2%)** | **Italy (2.2%)** | **Italy (2.2%)** | **Italy (2.2%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;UniCredit SpA | 1729248 | &nbsp;&nbsp; 33774 |
| **Japan (3.3%)** | **Japan (3.3%)** | **Japan (3.3%)** | **Japan (3.3%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Panasonic Holdings Corp. | 2446600 | &nbsp;&nbsp;&nbsp;&nbsp;22688 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Mitsubishi UFJ Financial Group Inc. | &nbsp;&nbsp; 2247800 | &nbsp;&nbsp; 16465 |
| | &nbsp;&nbsp;&nbsp;&nbsp;T&D Holdings Inc. | &nbsp;&nbsp; 711540 | &nbsp;&nbsp; 11389 |
|  |  |  | &nbsp;&nbsp; **50542** |
| **South Korea (0.9%)** | **South Korea (0.9%)** | **South Korea (0.9%)** | **South Korea (0.9%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Coupang Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;793662 | &nbsp;&nbsp; 13405 |
| **Sweden (1.5%)** | **Sweden (1.5%)** | **Sweden (1.5%)** | **Sweden (1.5%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;SKF AB Class B | 1252691 | &nbsp;&nbsp; 22171 |
| **Switzerland (2.2%)** | **Switzerland (2.2%)** | **Switzerland (2.2%)** | **Switzerland (2.2%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Novartis AG (Registered) | &nbsp;&nbsp;&nbsp;&nbsp;373666 | &nbsp;&nbsp;&nbsp;&nbsp;33783 |
| **United Kingdom (24.3%)** | **United Kingdom (24.3%)** | **United Kingdom (24.3%)** | **United Kingdom (24.3%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Glencore plc | &nbsp;&nbsp;10251133 | &nbsp;&nbsp;&nbsp;&nbsp;68651 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Anglo American plc | 1303992 | &nbsp;&nbsp;&nbsp;&nbsp;56242 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Rio Tinto plc ADR | &nbsp;&nbsp; 567573 | &nbsp;&nbsp;&nbsp;&nbsp;45037 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Unilever plc | &nbsp;&nbsp; 811595 | &nbsp;&nbsp; 41310 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Nomad Foods Ltd. | &nbsp;&nbsp; 2169446 | &nbsp;&nbsp;&nbsp;&nbsp;38594 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Standard Chartered plc | &nbsp;&nbsp; 2917552 | &nbsp;&nbsp;&nbsp;&nbsp;24506 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Haleon plc | 6026994 | &nbsp;&nbsp; 24153 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Centamin plc | &nbsp;&nbsp;14554379 | &nbsp;&nbsp; 19952 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Babcock International Group plc | 4009566 | &nbsp;&nbsp; 15148 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;John Wood Group plc | &nbsp;&nbsp;&nbsp; 7774205 | &nbsp;&nbsp; 13629 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Serco Group plc | &nbsp;&nbsp; 6226714 | &nbsp;&nbsp; 11215 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Fresnillo plc | &nbsp;&nbsp; 1020765 | &nbsp;&nbsp; 10369 |
|  |  |  | &nbsp;&nbsp; **368806** |
| **United States (25.6%)** | **United States (25.6%)** | **United States (25.6%)** | **United States (25.6%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Electric Power Co. Inc. | &nbsp;&nbsp; 1074552 | &nbsp;&nbsp; 100965 |
| | &nbsp;&nbsp;&nbsp;&nbsp;BWX Technologies Inc. | &nbsp;&nbsp; 1201722 | &nbsp;&nbsp; 73137 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Enstar Group Ltd. | &nbsp;&nbsp; 175285 | &nbsp;&nbsp;&nbsp;&nbsp;42472 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Viper Energy Partners LP | &nbsp;&nbsp; 1212762 | &nbsp;&nbsp;&nbsp;&nbsp;38505 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Schlumberger Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;523533 | &nbsp;&nbsp;&nbsp;&nbsp;29831 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Merck & Co. Inc. | &nbsp;&nbsp;&nbsp; 267474 | &nbsp;&nbsp;&nbsp;&nbsp;28729 |

---

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;Intel Corp. | &nbsp;&nbsp; 920517 | &nbsp;&nbsp; 26014 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Exelon Corp. | &nbsp;&nbsp;&nbsp;&nbsp;331845 | &nbsp;&nbsp;&nbsp;&nbsp;14000 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Diamond Offshore Drilling Inc. | &nbsp;&nbsp; 1165041 | &nbsp;&nbsp; 13351 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Fluor Corp. | &nbsp;&nbsp; 318722 | &nbsp;&nbsp; 11713 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Mosaic Co. | &nbsp;&nbsp; 205876 | &nbsp;&nbsp; 10199 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Metals Acquisition Corp. Warrants Exp. 7/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;330300 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;233 |
|  |  |  | &nbsp;&nbsp; **389149** |
| **Total Common Stocks<br> (Cost $1,157,924)** | **Total Common Stocks<br> (Cost $1,157,924)** | **Total Common Stocks<br> (Cost $1,157,924)** | **1398238** |
| **Temporary Cash Investments (8.5%)** | **Temporary Cash Investments (8.5%)** | **Temporary Cash Investments (8.5%)** | **Temporary Cash Investments (8.5%)** |
| **Money Market Fund (8.5%)** | **Money Market Fund (8.5%)** | **Money Market Fund (8.5%)** | **Money Market Fund (8.5%)** |
| <sup>3,4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Vanguard Market Liquidity Fund, 4.437% **(Cost $128,747)** | &nbsp;&nbsp;&nbsp; 1287611 | &nbsp;&nbsp; **128748** |
| **Total Investments (100.5%)<br> (Cost $1,286,671)** | **Total Investments (100.5%)<br> (Cost $1,286,671)** |  | **1526986** |
| **Other Assets and Liabilities—Net (-0.5%)** | **Other Assets and Liabilities—Net (-0.5%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6973)** |
| **Net Assets (100%)** | **Net Assets (100%)** |  | **1520013** |

---

Cost is in $000.

• See Note A in Notes to Financial Statements.

---

| | |
|:---|:---|
| \* | Non-income-producing security. |
| 1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $24,485,000. |
| 2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2023, the aggregate value was $20,855,000, representing 1.4% of net assets. |
| 3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 4 | Collateral of $25,126,000 was received for securities on loan. |

---

ADR—American Depositary Receipt.

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value<sup>1</sup> |  |
| &nbsp;&nbsp;Unaffiliated Issuers (Cost $1,157,924) | &nbsp;&nbsp;1398238 |
| &nbsp;&nbsp;Affiliated Issuers (Cost $128,747) | &nbsp;&nbsp;&nbsp;&nbsp;128748 |
| Total Investments in Securities | &nbsp;&nbsp;1526986 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53 |
| Foreign Currency, at Value (Cost $202) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;201 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27958 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1748 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;854 |
| **Total Assets** | &nbsp;&nbsp;**1557800** |
| **Liabilities** |  |
| Due to Custodian | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3464 |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7631 |
| Collateral for Securities on Loan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25126 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;634 |
| Payables to Investment Advisor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;694 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;238 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37787** |
| **Net Assets** | &nbsp;&nbsp;**1520013** |
| 1 Includes $24,485,000 of securities on loan. |  |
| <br> <br> **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | &nbsp;&nbsp;3363644 |
| Total Distributable Earnings (Loss) | (1843631) |
| **Net Assets** | &nbsp;&nbsp;**1520013** |
| **Net Assets** |  |
| **Applicable to 122,273,792 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**1520013** |
| **Net Asset Value Per Share** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$12.43** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48459 |
| Non-Cash Dividends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5209 |
| Interest<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;722 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54525 |
| **Expenses** |  |
| Investment Advisory Fees—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;664 |
| The Vanguard Group—Note C |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27 |
| Shareholders' Reports | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6017 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6016 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**48509** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold<sup>2,3</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104928 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(952) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**103976** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities<sup>2,4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17807 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21 |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17828** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**170313** |

---

---

| | |
|:---|:---|
| 1 | Dividends are net of foreign withholding taxes of $2,027,000. |
| 2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $722,000, $53,000, less than $1,000, and (less than $1,000), respectively. Purchases and sales are for temporary cash investment purposes. |
| 3 | Realized Gain (Loss) is net of foreign capital gains taxes of $3,277,000. |
| 4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($3105000). |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48509 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43390 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;103976 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;166516 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17828 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41453 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;&nbsp;&nbsp;170313 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;251359 |
| **Distributions** |  |  |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;(44720) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42400) |
| **Capital Share Transactions** |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;320924 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228666 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38683 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36640 |
| Redeemed | &nbsp;&nbsp;&nbsp;(324685) | &nbsp;&nbsp;&nbsp;&nbsp;(296930) |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34922 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31624) |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;160515 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;177335 |
| **Net Assets** |  |  |
| **Beginning of Period** | **1359498** | &nbsp;&nbsp;&nbsp;**1182163** |
| **End of Period** | **1520013** | &nbsp;&nbsp;&nbsp;**1359498** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$11.28** | &nbsp;&nbsp;&nbsp;&nbsp;**$9.57** | &nbsp;&nbsp;&nbsp;**$7.97** | &nbsp;&nbsp;&nbsp;**$7.62** | &nbsp;&nbsp;&nbsp;**$10.57** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.392 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.356 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.197 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.212 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.122 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.134 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.715 | &nbsp;&nbsp;&nbsp;&nbsp;1.597 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.337 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.858) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.526 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.071 | &nbsp;&nbsp;&nbsp;&nbsp;1.794 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.549 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.736) |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.376) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.361) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.194) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.199) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.214) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.376) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.361) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.194) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.199) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.214) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$12.43** | &nbsp;&nbsp;&nbsp;**$11.28** | &nbsp;&nbsp;&nbsp;**$9.57** | &nbsp;&nbsp;&nbsp;**$7.97** | &nbsp;&nbsp;&nbsp;&nbsp;**$7.62** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**13.81%** | &nbsp;&nbsp;&nbsp;**21.74%** | &nbsp;&nbsp;&nbsp;**22.63%** | &nbsp;&nbsp;&nbsp;**7.11%** | &nbsp;&nbsp;&nbsp;**-26.17%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$1520 | &nbsp;&nbsp;&nbsp;$1359 | &nbsp;&nbsp;&nbsp;$1182 | &nbsp;&nbsp;&nbsp;$1212 | &nbsp;&nbsp;&nbsp;$1399 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.43%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.36% | &nbsp;&nbsp;&nbsp;0.35% | &nbsp;&nbsp;&nbsp;0.38% | &nbsp;&nbsp;&nbsp;0.33% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;3.45% | &nbsp;&nbsp;&nbsp;3.28% | &nbsp;&nbsp;&nbsp;2.43% | &nbsp;&nbsp;&nbsp;2.68% | &nbsp;&nbsp;&nbsp;1.38% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;63% | &nbsp;&nbsp;&nbsp;57% | &nbsp;&nbsp;&nbsp;70% | &nbsp;&nbsp;&nbsp;56% | &nbsp;&nbsp;&nbsp;110% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.05%, (0.01%), (0.03%), 0.00%, and (0.04%). |
| 4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.43%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

Notes to Financial Statements

Vanguard Global Capital Cycles Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

------

[**Table of Contents**](#JOB_Vangu_4b43e947-7789-46e7-815e-2c0a1c19a321_TOCtm234052d2_globcaparq530)

Global Capital Cycles Fund

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

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Global Capital Cycles Fund

7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ‎ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of ‎payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.

B. Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund's performance relative to the Custom Global Capital Cycles Index since January 31, 2019. For the year ended January 31, 2023, the investment advisory fee represented an effective annual basic rate of 0.15% of the fund's average net assets, before a net increase of $664,000 (0.05%) based on performance.

C. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $53,000, representing less than 0.01% of the fund's net assets and 0.02% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

D. The fund's custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended January 31, 2023, custodian fee offset arrangements reduced the fund's expenses by $1,000 (an annual rate of less than 0.01% of average net assets).

E. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

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Global Capital Cycles Fund

**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks—North and South America | 640631 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;640631 |
| Common Stocks—Other | 125758 | &nbsp;&nbsp;&nbsp;631849 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;757607 |
| Temporary Cash Investments | 128748 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;128748 |
| Total | 895137 | &nbsp;&nbsp;&nbsp;631849 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;1526986 |

---

F. Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable foreign currency transactions and tax expense on capital gains were reclassified between the individual components of total distributable earnings (loss).

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;845 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;238916 |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;(2084162) |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Other Temporary Differences | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;770 |
| Total | &nbsp;&nbsp;&nbsp;(1843631) |

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Global Capital Cycles Fund

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;44720 | &nbsp;&nbsp;&nbsp;&nbsp;42400 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Total | &nbsp;&nbsp;&nbsp;44720 | &nbsp;&nbsp;&nbsp;&nbsp;42400 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;1288098 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;282981 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44093) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;238888 |

---

G. During the year ended January 31, 2023, the fund purchased $846,668,000 of investment securities and sold $885,743,000 of investment securities, other than temporary cash investments.

H. Capital shares issued and redeemed were:

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, |  |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;&nbsp;2022<br> Shares<br> (000) |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;&nbsp;2022<br> Shares<br> (000) |
| Issued | &nbsp;&nbsp;27145 | &nbsp;&nbsp;&nbsp;&nbsp;21067 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;3366 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3333 |
| Redeemed | (28764) | &nbsp;&nbsp;&nbsp;(27397) |
| Net Increase (Decrease) in Shares Outstanding | &nbsp;&nbsp;&nbsp;&nbsp;1747 | &nbsp;&nbsp;&nbsp;&nbsp;(2997) |

---

I. Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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#### Report of Independent Registered

#### Public Accounting Firm
To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Global Capital Cycles Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Global Capital Cycles Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023, the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

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Tax information (unaudited)

For corporate shareholders, 16.2%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $37,846,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $191,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

The fund designates to shareholders foreign source income of $47,029,000 and foreign taxes paid of $6,010,000, or if subsequently determined to be different, the maximum amounts allowable by law. Form 1099-DIV reports calendar-year amounts that can be included on the income tax return of shareholders.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief ‎operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of ‎Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and ‎Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

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#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer ‎‎(retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. ‎‎(investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment ‎Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–‎‎2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of ‎financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–‎present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School ‎‎(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). ‎Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer ‎‎(November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) ‎and deputy chief compliance officer (2017–2019) of State Street.

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#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the ‎investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at ‎Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

---

| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. McIsaac** | **Lauren Valente** |

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![](tm234052d2globcaparq530i006.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People<br> Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> Vanguard Marketing Corporation, Distributor.

Q530 032023

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![](tm234052d2healthcarearq5i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Health Care Fund

------

Contents

---

| | |
|:---|:---|
| Your Fund's Performance at a Glance<br>| 1 |
| Advisor's Report<br>| 2 |
| About Your Fund's Expenses<br>| 5 |
| Performance Summary<br>| 7 |
| Financial Statements<br>| 9 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

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Your Fund's Performance at a Glance

• For the 12 months ended January 31, 2023, Vanguard Health Care Fund returned 6.57% for Investor Shares and 6.63% for Admiral Shares. These results outpaced the 1.13% return of the fund's benchmark index.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation readings across much of the world continued climbing to multidecade
highs amid supply chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that
inflation might have peaked, and central banks began slowing their pace of interest rate hikes.

• Sticky inflation, dramatic rate hikes, and fears of a recession weighed heavily on sentiment in the stock market. Health care was one of the few sectors that posted positive returns for the 12 months.

• The fund's performance relative to the benchmark was bolstered primarily by stock selection, most notably in biotechnology and pharmaceuticals. The fund's allocations
among subsectors, especially an overweight to biotechnology, also boosted relative performance.

#### Market Barometer

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

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Advisor's Report

For the 12 months ended January 31, 2023, Vanguard Health Care Fund returned 6.57% for Investor Shares and 6.63% for Admiral Shares. The fund outperformed the 1.13% return of its benchmark index and the –1.67% average return of its Lipper peer fund group.

#### The investment environment
We view the health care sector through a custom lens of subsectors. We combine biotechnology and pharmaceuticals and think of them in terms of capitalization: biopharma small-cap, biopharma mid-cap, and biopharma large-cap. The other subsectors are health care services and medical technology.

Biopharma large-cap was the top-performing subsector in the benchmark during the 12 months, followed by health care services and biopharma mid-cap. Medical technology lagged the broader health care sector. Small-cap biopharmaceuticals are not meaningfully represented in the benchmark.

#### Our successes
Stock selection contributed positively to the fund's performance, particularly in the biopharma large-cap and biopharma mid-cap subsectors. From an allocation perspective, our underweight to the underperforming medical technology space contributed to relative performance, as did our overweight to biopharma mid-cap.

Eli Lilly, a biopharma large-cap company, was the fund's top relative performer.

Shares rose after it received FDA approval for tirzepatide, for the treatment of type 2 diabetes. Compelling pivotal data for non-diabetic obesity also underscored the drug's long-term value. Furthermore, positive results in the phase 3 trial for an Alzheimer's drug manufactured by Eisai raised hopes for other anti-amyloid drugs, including Eli Lilly's donanemab.

Another top contributor was Alnylam Pharmaceuticals, a biopharma large-cap company. Its shares rose after Onpattro—the company's RNA interference therapy that reduces amyloid deposits in various tissues and organs—met the main goal of a late-stage trial in patients with a form of heart disease. This paves the way for the company to seek wider approval from U.S. regulators.

Not owning biopharma large-cap company Roche Holding AG was also among the top relative contributors. Roche had two research and development disappointments: the failed phase 3 results of its Alzheimer's studies for gantenerumab, and results from tiragolumab for non-small cell lung cancer treatment that failed to meet the primary co-endpoint of progression-free survival.

#### Our shortfalls
Stock selection was weakest within the biopharma small-cap subsector. From an allocation perspective, our underweight to the biopharma large-cap space detracted from relative performance.

Not owning Merck & Co., a biopharma large-cap company, for most of the period

------

was the largest detractor. Its shares rose on the back of higher sales guidance for leading immunotherapy cancer treatment Keytruda and human papillomavirus vaccine Gardasil, in addition to R&D success for sotatercept—a drug for pulmonary arterial hypertension that was added to Merck's pipeline through its acquisition of Acceleron Pharma. The study achieved its primary endpoint of showing significant improvement in exercise capacity.

Another top detractor was not owning Novo Nordisk, a biopharma large-cap company. Shares rose after the company announced strong third-quarter profits driven primarily by demand for the company's diabetes treatment Ozempic. Additionally, the company made progress on alleviating supply disruptions with its obesity drug Wegovy, and management expressed confidence in increasing production capacity in 2023.

Viatris—a biopharma mid-cap company formed through the combination of Mylan and Pfizer's generics business, Upjohn—was another notable detractor. Shares declined after the company reported worse-than-expected topline results for the last quarter of 2021 and issued guidance below estimates.

#### Our additions and eliminations
We initiated a position in Merck, as we are becoming increasingly optimistic that the company will be able to manage the loss of exclusivity of Keytruda later this decade. We are starting to see improved growth security in Keytruda and Gardasil

and are encouraged by progress in the oncology pipeline and the company's competitive position in pneumococcal conjugate vaccines.

We also initiated a position in Abbott Laboratories, a diversified medical technology company, as we are finding an attractive risk/reward opportunity following the stock's recent underperformance. The company has faced short-term headwinds, including declines in COVID-19 testing demand and challenges following a baby-formula product recall. However, we are encouraged by its fundamentals, which are supported by a strong balance sheet and its portfolio of diversified franchises such as Libre, the company's continuous glucose monitoring system for diabetes.

We eliminated positions in Bristol-Myers Squibb and Incyte. Both face patent expirations of their lead franchise this decade and need more significant new product innovation to offset these challenges.

#### The fund's characteristics
At the fiscal year's end, about 27% of the fund's assets were in non-U.S. investments, a level that has remained fairly stable in recent years. Our non-U.S. holdings were primarily companies domiciled in Japan, the United Kingdom, Switzerland, Belgium, and Denmark, many of which operate globally. We believe this strategy provides diversification for shareholders over the long term.

The fund held 105 companies across all subsectors of health care as of the end of

------

the period, reflecting a slight decrease from the 108 equity names we held a year ago. The fund's 10 largest holdings represented a significant 41% of total assets.

#### The fund's positioning and outlook
We have a positive outlook across the health care opportunity set. Groundbreaking innovation, supportive valuations, and business models that are positioned to show resilience through the cycle should benefit long-term investors in this sector. Within biopharma, we anticipate continued developments in areas such as Alzheimer's disease, metabolic diseases, and cancer, as well as companies discovering drugs using new modalities such as messenger RNA, RNA interference, and bispecific antibodies.

Innovation is also accelerating across medical technology, which should lead to strong growth. This includes advances in new diabetes and cardiovascular devices and novel tools that serve the life sciences industry. Lastly, health care services companies remain well-positioned to help solve the societal challenge of rising health care costs. Some will benefit from the ongoing transition from a fee-for-service to a fee-for-value care system. We expect the strength of managed care business models to continue to shine. We are finding attractive opportunities among companies focused on improving patient outcomes while reining in costs.

Jean M. Hynes, CFA

Senior Managing Director and

Portfolio Manager

Wellington Management Company llp

February 10, 2023

------

About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

------

---

| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| **Based on Actual Fund Return** |  |  |  |
| Health Care Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1038.90 | &nbsp;&nbsp;&nbsp;&nbsp;$1.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral™ Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1039.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54 |
| **Based on Hypothetical 5% Yearly Return** |  |  |  |
| Health Care Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1023.44 | &nbsp;&nbsp;&nbsp;&nbsp;$1.79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1023.69 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 |

---

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.35% for Investor Shares and 0.30% for Admiral Shares. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

------

Health Care Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2healthcarearq5i002.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2healthcarearq5i003.jpg) | &nbsp;&nbsp;&nbsp;Health Care Fund Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;6.57% | &nbsp;&nbsp;&nbsp;&nbsp;8.50% | &nbsp;&nbsp;&nbsp;&nbsp;12.85% | &nbsp;&nbsp;&nbsp;&nbsp;$33484 |
| ![](tm234052d2healthcarearq5i004.jpg) | &nbsp;&nbsp;&nbsp;MSCI All Country World Index Health Care Index | &nbsp;&nbsp;&nbsp;&nbsp;1.13 | &nbsp;&nbsp;&nbsp;&nbsp;8.29 | &nbsp;&nbsp;&nbsp;&nbsp;10.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28067 |
| ![](tm234052d2healthcarearq5i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $50,000<br> Investment |
| Health Care Fund Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;6.63% | &nbsp;&nbsp;&nbsp;8.56% | &nbsp;&nbsp;&nbsp;&nbsp;12.90% | &nbsp;&nbsp;&nbsp;&nbsp;$168254 |
| MSCI All Country World Index Health Care Index | &nbsp;&nbsp;&nbsp;&nbsp;1.13 | &nbsp;&nbsp;&nbsp;8.29 | &nbsp;&nbsp;&nbsp;&nbsp;10.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;140334 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157905 |

---

See Financial Highlights for dividend and capital gains information.

------

Health Care Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| United States | 72.2% |
| Japan | &nbsp;&nbsp;&nbsp;8.8 |
| United Kingdom | &nbsp;&nbsp;&nbsp;6.9 |
| Switzerland | &nbsp;&nbsp;&nbsp;5.3 |
| Belgium | &nbsp;&nbsp;&nbsp;3.1 |
| Denmark | &nbsp;&nbsp;&nbsp;2.2 |
| China | &nbsp;&nbsp;&nbsp;1.1 |
| Other | &nbsp;&nbsp;&nbsp;0.4 |

---

The table reflects the fund's investments, except for short-term investments.

------

Health Care Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
| **Common Stocks (98.3%)** | **Common Stocks (98.3%)** | **Common Stocks (98.3%)** | **Common Stocks (98.3%)** |
| **Belgium (3.1%)** | **Belgium (3.1%)** | **Belgium (3.1%)** | **Belgium (3.1%)** |
| <sup>1</sup> | UCB SA | 10923125 | &nbsp;&nbsp;&nbsp;&nbsp;896839 |
| <sup>\*</sup> | Argenx SE | 1339326 | &nbsp;&nbsp;&nbsp;&nbsp;510131 |
| <sup>\*</sup> | Galapagos NV | 1175458 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52024 |
|  |  |  | **1458994** |
| **Brazil (0.0%)** | **Brazil (0.0%)** | **Brazil (0.0%)** | **Brazil (0.0%)** |
| <sup>\*,2</sup> | Hapvida Participacoes e Investimentos SA | 8909471 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9039 |
| **China (1.1%)** | **China (1.1%)** | **China (1.1%)** | **China (1.1%)** |
| <sup>2</sup> | WuXi AppTec Co. Ltd. Class H | 9838416 | &nbsp;&nbsp;&nbsp;&nbsp;127841 |
| <sup>\*</sup> | Legend Biotech Corp. ADR | 1483204 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74902 |
| <sup>\*</sup> | Zai Lab Ltd. | 14229400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59519 |
|  | Yifeng Pharmacy Chain Co. Ltd. Class A | 6945794 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58463 |
| <sup>\*,2</sup> | Wuxi Biologics Cayman Inc. | 6756200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56417 |
| <sup>\*</sup> | Zai Lab Ltd. ADR | 1085794 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45755 |
|  | Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 24872000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41347 |
| <sup>\*,2</sup> | Remegen Co. Ltd. Class H | 4397500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35558 |
|  | Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | &nbsp;&nbsp;&nbsp;&nbsp;452517 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22372 |
| <sup>\*,2</sup> | Everest Medicines Ltd. | 2139500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6836 |
|  |  |  | **529010** |
| **Denmark (2.2%)** | **Denmark (2.2%)** | **Denmark (2.2%)** | **Denmark (2.2%)** |
| <sup>\*</sup> | Genmab A/S | 2088852 | &nbsp;&nbsp;&nbsp;&nbsp;818614 |
| <sup>\*</sup> | Ascendis Pharma A/S ADR | &nbsp;&nbsp;&nbsp;&nbsp;942809 | &nbsp;&nbsp;&nbsp;&nbsp;116984 |
| <sup>\*,3</sup> | Genmab A/S ADR | 2285855 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89491 |
|  |  |  | **1025089** |
| **Italy (0.2%)** | **Italy (0.2%)** | **Italy (0.2%)** | **Italy (0.2%)** |
|  | DiaSorin SpA | &nbsp;&nbsp;&nbsp;&nbsp;552359 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71906 |
|  | Amplifon SpA | 1439109 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39738 |
|  |  |  | **111644** |
| **Japan (8.6%)** | **Japan (8.6%)** | **Japan (8.6%)** | **Japan (8.6%)** |
|  | Daiichi Sankyo Co. Ltd. | 43891190 | 1378488 |
| <sup>1</sup> | Eisai Co. Ltd. | 18623177 | 1152216 |
|  | Chugai Pharmaceutical Co. Ltd. | 17516900 | &nbsp;&nbsp;&nbsp;&nbsp;454127 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
|  | Ono Pharmaceutical Co. Ltd. | 19628460 | &nbsp;&nbsp;&nbsp;&nbsp;425912 |
|  | Astellas Pharma Inc. | 22277204 | &nbsp;&nbsp;&nbsp;&nbsp;327923 |
|  | Terumo Corp. | 6976400 | &nbsp;&nbsp;&nbsp;&nbsp;203085 |
|  | Nippon Shinyaku Co. Ltd. | 1977800 | &nbsp;&nbsp;&nbsp;&nbsp;101790 |
|  | Asahi Intecc Co. Ltd. | 2023500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35501 |
|  |  |  | **4079042** |
| **Spain (0.1%)** | **Spain (0.1%)** | **Spain (0.1%)** | **Spain (0.1%)** |
|  | Almirall SA | 3142775 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31667 |
| **Switzerland (5.2%)** | **Switzerland (5.2%)** | **Switzerland (5.2%)** | **Switzerland (5.2%)** |
|  | Novartis AG (Registered) | 21530502 | 1946553 |
|  | Alcon Inc. | 3393208 | &nbsp;&nbsp;&nbsp;&nbsp;256047 |
|  | Lonza Group AG (Registered) | &nbsp;&nbsp;&nbsp;&nbsp;352632 | &nbsp;&nbsp;&nbsp;&nbsp;201156 |
|  | Tecan Group AG (Registered) | &nbsp;&nbsp;&nbsp;&nbsp;203082 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85228 |
|  |  |  | **2488984** |
| **United Kingdom (6.8%)** | **United Kingdom (6.8%)** | **United Kingdom (6.8%)** | **United Kingdom (6.8%)** |
|  | AstraZeneca plc | 19440938 | 2547006 |
|  | GSK plc | 22646145 | &nbsp;&nbsp;&nbsp;&nbsp;397780 |
|  | Hikma Pharmaceuticals plc | 6910934 | &nbsp;&nbsp;&nbsp;&nbsp;146195 |
| <sup>\*</sup> | Abcam plc ADR | 7161997 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99337 |
|  | Genus plc | 1004385 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36024 |
|  |  |  | **3226342** |
| **United States (71.0%)** | **United States (71.0%)** | **United States (71.0%)** | **United States (71.0%)** |
|  | UnitedHealth Group Inc. | 5901234 | 2945837 |
|  | Eli Lilly & Co. | 7644984 | 2631021 |
|  | Pfizer Inc. | 48324782 | 2134022 |
|  | Merck & Co. Inc. | 18307050 | 1966360 |
| <sup>\*</sup> | Biogen Inc. | 4887203 | 1421687 |
|  | Stryker Corp. | 5156679 | 1308817 |
|  | Elevance Health Inc. | 2560815 | 1280382 |
|  | Danaher Corp. | 4433654 | 1172169 |
| <sup>\*</sup> | Boston Scientific Corp. | 25019385 | 1157147 |
| <sup>\*</sup> | Regeneron Pharmaceuticals Inc. | 1522435 | 1154721 |
|  | Thermo Fisher Scientific Inc. | 2024414 | 1154584 |
|  | Abbott Laboratories | 9932377 | 1098024 |
|  | Humana Inc. | 2102867 | 1076037 |
| <sup>\*</sup> | Alnylam Pharmaceuticals Inc. | 4718518 | 1068273 |
| <sup>\*</sup> | Vertex Pharmaceuticals Inc. | 3181078 | 1027806 |

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------

Health Care Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
|  | HCA Healthcare Inc. | 3130156 | &nbsp;&nbsp;&nbsp;&nbsp;798409 |
|  | Zoetis Inc. | 4787260 | &nbsp;&nbsp;&nbsp;&nbsp;792244 |
| <sup>\*</sup> | Edwards Lifesciences Corp. | 9662088 | &nbsp;&nbsp;&nbsp;&nbsp;741082 |
| <sup>\*</sup> | Centene Corp. | 8903692 | &nbsp;&nbsp;&nbsp;&nbsp;678818 |
| <sup>\*</sup> | Seagen Inc. | 4583727 | &nbsp;&nbsp;&nbsp;&nbsp;639338 |
| <sup>\*</sup> | Moderna Inc. | 3493282 | &nbsp;&nbsp;&nbsp;&nbsp;615027 |
|  | Agilent Technologies Inc. | 3576445 | &nbsp;&nbsp;&nbsp;&nbsp;543906 |
| <sup>\*</sup> | Insulet Corp. | 1720456 | &nbsp;&nbsp;&nbsp;&nbsp;494321 |
|  | Laboratory Corp. of America Holdings | 1485818 | &nbsp;&nbsp;&nbsp;&nbsp;374604 |
| <sup>\*</sup> | IQVIA Holdings Inc. | 1559767 | &nbsp;&nbsp;&nbsp;&nbsp;357826 |
| <sup>\*</sup> | Align Technology Inc. | 1245662 | &nbsp;&nbsp;&nbsp;&nbsp;335992 |
| <sup>\*</sup> | agilon health Inc. | 14265479 | &nbsp;&nbsp;&nbsp;&nbsp;310417 |
|  | Teleflex Inc. | 1217493 | &nbsp;&nbsp;&nbsp;&nbsp;296362 |
| <sup>\*</sup> | Illumina Inc. | 1377704 | &nbsp;&nbsp;&nbsp;&nbsp;295104 |
| <sup>\*</sup> | Waters Corp. | &nbsp;&nbsp;&nbsp;&nbsp;811122 | &nbsp;&nbsp;&nbsp;&nbsp;266518 |
| <sup>\*</sup> | Sarepta Therapeutics Inc. | 1904084 | &nbsp;&nbsp;&nbsp;&nbsp;237953 |
| <sup>\*</sup> | Acadia Healthcare Co. Inc. | 2711116 | &nbsp;&nbsp;&nbsp;&nbsp;227788 |
| <sup>\*</sup> | Molina Healthcare Inc. | &nbsp;&nbsp;&nbsp;&nbsp;729664 | &nbsp;&nbsp;&nbsp;&nbsp;227531 |
| <sup>\*</sup> | Exact Sciences Corp. | 2807222 | &nbsp;&nbsp;&nbsp;&nbsp;189544 |
| <sup>\*</sup> | Apellis Pharmaceuticals Inc. | 3222912 | &nbsp;&nbsp;&nbsp;&nbsp;169944 |
| <sup>\*,1</sup> | Agios Pharmaceuticals Inc. | 5148413 | &nbsp;&nbsp;&nbsp;&nbsp;151775 |
| <sup>\*</sup> | Alkermes plc | 4619968 | &nbsp;&nbsp;&nbsp;&nbsp;132316 |
| <sup>\*,1</sup> | Ironwood Pharmaceuticals Inc. Class A | 10902066 | &nbsp;&nbsp;&nbsp;&nbsp;125592 |
|  | Royalty Pharma plc Class A | 3053455 | &nbsp;&nbsp;&nbsp;&nbsp;119665 |
| <sup>\*</sup> | Blueprint Medicines Corp. | 2379137 | &nbsp;&nbsp;&nbsp;&nbsp;111201 |
| <sup>\*</sup> | Intra-Cellular Therapies Inc. | 2295196 | &nbsp;&nbsp;&nbsp;&nbsp;109986 |
|  | Encompass Health Corp. | 1753507 | &nbsp;&nbsp;&nbsp;&nbsp;109507 |
| <sup>\*</sup> | Mirati Therapeutics Inc. | 1981533 | &nbsp;&nbsp;&nbsp;&nbsp;105834 |
| <sup>\*</sup> | Karuna Therapeutics Inc. | &nbsp;&nbsp;&nbsp;&nbsp;514899 | &nbsp;&nbsp;&nbsp;&nbsp;102666 |
| <sup>\*</sup> | Cytokinetics Inc. | 2281868 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;96934 |
| <sup>\*</sup> | Denali Therapeutics Inc. | 3056783 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92529 |
| <sup>\*</sup> | Syndax Pharmaceuticals Inc. | 3092082 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88743 |
| <sup>\*</sup> | Oak Street Health Inc. | 2978154 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86545 |
| <sup>\*</sup> | REVOLUTION Medicines Inc. | 2991103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79982 |
| <sup>\*</sup> | Immunocore Holdings plc ADR | 1174442 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71958 |
| <sup>\*</sup> | Syneos Health Inc. | 1911256 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68652 |
| <sup>\*</sup> | Intellia Therapeutics Inc. | 1534651 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65131 |
| <sup>\*</sup> | Sage Therapeutics Inc. | 1406483 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62363 |
| <sup>\*</sup> | Amedisys Inc. | &nbsp;&nbsp;&nbsp;&nbsp;603050 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58291 |
| <sup>\*</sup> | Vaxcyte Inc. | 1271342 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57655 |
| <sup>\*</sup> | PTC Therapeutics Inc. | 1235744 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56708 |
| <sup>\*</sup> | Evolent Health Inc. Class A | 1734142 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55874 |
| <sup>\*</sup> | Reata Pharmaceuticals Inc. Class A | 1237211 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53608 |
| <sup>\*</sup> | Charles River Laboratories International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;210626 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51235 |
| <sup>\*</sup> | Surgery Partners Inc. | 1504178 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49939 |
| <sup>\*</sup> | Prothena Corp. plc | &nbsp;&nbsp;&nbsp;&nbsp;852512 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48210 |
| <sup>\*</sup> | TG Therapeutics Inc. | 3066304 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46700 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
| <sup>\*</sup> | Glaukos Corp. | &nbsp;&nbsp;&nbsp;&nbsp;934746 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45849 |
| <sup>\*</sup> | Amicus Therapeutics Inc. | 3307491 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43130 |
| <sup>\*</sup> | Ultragenyx Pharmaceutical Inc. | &nbsp;&nbsp;&nbsp;&nbsp;900000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40797 |
| <sup>\*</sup> | Kymera Therapeutics Inc. | &nbsp;&nbsp;&nbsp;&nbsp;877191 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32789 |
| <sup>\*</sup> | Celldex Therapeutics Inc. | &nbsp;&nbsp;&nbsp;&nbsp;734330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32355 |
| <sup>\*,1</sup> | 2seventy bio Inc. | 2046666 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27835 |
| <sup>\*</sup> | Rocket Pharmaceuticals Inc. | 1199337 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26062 |
| <sup>\*</sup> | NanoString Technologies Inc. | 1416596 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14988 |
|  |  |  | **33713019** |
| **Total Common Stocks (Cost $28,715,157)** | **Total Common Stocks (Cost $28,715,157)** | **Total Common Stocks (Cost $28,715,157)** | **46672830** |
| **Temporary Cash Investments (1.7%)** | **Temporary Cash Investments (1.7%)** | **Temporary Cash Investments (1.7%)** | **Temporary Cash Investments (1.7%)** |
| **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** |
| <sup>4,5</sup> | Vanguard Market Liquidity Fund 4.437% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6690 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;669 |
|  |  | Face<br> Amount<br> ($000) |  |
| **Repurchase Agreements (1.6%)** | **Repurchase Agreements (1.6%)** | **Repurchase Agreements (1.6%)** | **Repurchase Agreements (1.6%)** |
|  | Bank of America Securities LLC, 4.300%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $61,507,000, collateralized by Ginnie Mae 4.000%–4.500%, 6/20/52–9/20/52, with a value of $62,730,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61500 |
|  | Bank of Nova Scotia, 4.250%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $79,009,000, collateralized by U.S. Treasury Note/Bond 0.375%–7.625%, 4/15/24–5/15/45, with a value of $80,590,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79000 |
|  | Barclays Capital Inc., 4.230%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $148,317,000, collateralized by U.S. Treasury Note/Bond 0.375%–1.250%, 12/31/25–11/30/26, with a value of $151,266,000) | &nbsp;&nbsp;&nbsp;&nbsp;148300 | &nbsp;&nbsp;&nbsp;&nbsp;148300 |

---

------

Health Care Fund

---

| | | |
|:---|:---|:---|
|  | Face<br> Amount<br> ($000) | Market<br> Value• ($000) |
| BNP Paribas Securities Corp., 4.300%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $27,903,000, collateralized by Fannie Mae 2.500%, 2/1/51, Freddie Mac 2.000%–6.000%, 12/1/51–2/1/53, Ginnie Mae 2.500%–6.000%, 7/15/24–10/20/51, and U.S. Treasury Bill 0.000%, 3/21/23–6/1/23, with a value of $28,458,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27900 |
| Credit Agricole Securities, 4.250%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $8,001,000, collateralized by U.S. Treasury Note/Bond 2.875%, 11/15/46, with a value of $8,160,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8000 |
| HSBC Bank USA, 4.260%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $54,706,000, collateralized by U.S. Treasury Bill 0.000%, 1/25/24, with a value of $55,794,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54700 |
| HSBC Bank USA, 4.300%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $1,500,000, collateralized by Fannie Mae 5.000%, 10/1/52, with a value of $1,530,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1500 |
| Natixis SA, 4.250%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $21,903,000, collateralized by Federal Home Loan Bank 3.000%, 2/24/37, U.S. Treasury Inflation Indexed Note/Bond 0.125%, 2/15/51, and U.S. Treasury Note/Bond 2.500%–6.625%, 2/15/27–2/15/36, with a value of $22,338,000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21900 |

---

---

| | | |
|:---|:---|:---|
|  | Face<br> Amount<br> ($000) | Market<br> Value• ($000) |
| Nomura International plc, 4.280%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $197,023,000, collateralized by U.S. Treasury Note/Bond 0.250%–4.750%, 9/30/25–2/15/41, with a value of $200,940,000) | &nbsp;&nbsp;&nbsp;&nbsp;197000 | &nbsp;&nbsp;&nbsp;&nbsp;197000 |
| RBC Capital Markets LLC, 4.270%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $147,117,000, collateralized by Fannie Mae 3.500%, 2/1/43, U.S. Treasury Inflation Indexed Note/Bond 0.500%, 4/15/24, and U.S. Treasury Note/Bond 0.375%–3.250%, 12/31/25–6/30/29, with a value of $150,042,000) | &nbsp;&nbsp;&nbsp;&nbsp;147100 | &nbsp;&nbsp;&nbsp;&nbsp;147100 |
|  |  | **746900** |
| **U.S. Government and Agency Obligations (0.1%)** | **U.S. Government and Agency Obligations (0.1%)** | **U.S. Government and Agency Obligations (0.1%)** |
| United States Treasury Bill,<br> 4.320%–4.339%, 4/4/23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49613 |
| **Total Temporary Cash Investments (Cost $797,188)** | **Total Temporary Cash Investments (Cost $797,188)** | **797182** |
| **Total Investments (100.0%) (Cost $29,512,345)** | **Total Investments (100.0%) (Cost $29,512,345)** | **47470012** |
| **Other Assets and Liabilities—Net (0.0%)** | **Other Assets and Liabilities—Net (0.0%)** | **7413** |
| **Net Assets (100%)** | **Net Assets (100%)** | **47477425** |
| Cost is in $000. | Cost is in $000. | Cost is in $000. |

---

---

| | |
|:---|:---|
| • | See Note A in Notes to Financial Statements. |
| \* | Non-income-producing security. |
| 1 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
| 2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2023, the aggregate value was $235,691,000, representing 0.5% of net assets. |
| 3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $564,000. |
| 4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 5 | Collateral of $576,000 was received for securities on loan. |
|  | ADR—American Depositary Receipt. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value<sup>1</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated Issuers (Cost $27,587,286) | &nbsp;&nbsp;45115086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliated Issuers (Cost $1,925,059) | &nbsp;&nbsp;&nbsp;2354926 |
| Total Investments in Securities | &nbsp;&nbsp;&nbsp;47470012 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1801 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68 |
| Foreign Currency, at Value (Cost $1,482) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1394 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14833 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59392 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4046 |
| **Total Assets** | &nbsp;&nbsp;**47551546** |
| **Liabilities** |  |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30760 |
| Collateral for Securities on Loan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;576 |
| Payables to Investment Advisor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18673 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20898 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3214 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**74121** |
| **Net Assets** | &nbsp;&nbsp;&nbsp;**47477425** |
| 1 Includes $564,000 of securities on loan. |  |
| **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | &nbsp;&nbsp;28125477 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;19351948 |
| **Net Assets** | &nbsp;&nbsp;&nbsp;**47477425** |
| **Investor Shares—Net Assets** |  |
| **Applicable to 35,259,414 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;&nbsp;&nbsp;**7495969** |
| **Net Asset Value Per Share—Investor Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$212.59** |
| **Admiral Shares—Net Assets** |  |
| **Applicable to 446,008,662 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **39981456** |
| **Net Asset Value Per Share—Admiral Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$89.64** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends—Unaffiliated Issuers<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;483582 |
| Dividends—Affiliated Issuers<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29407 |
| Interest—Unaffiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15562 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1173 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;529724 |
| **Expenses** |  |
| Investment Advisory Fees—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1628 |
| The Vanguard Group—Note C |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;984 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;767 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30 |
| Shareholders' Reports—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;166 |
| Shareholders' Reports—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138051 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(55) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137996 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**391728** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold—Unaffiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2863025 |
| Investment Securities Sold—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(807486) |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1453) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2054086** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities—Unaffiliated<br> Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(229200) |
| Investment Securities—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;779448 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1226) |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**549022** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2994836** |

---

---

| | |
|:---|:---|
| 1 | Dividends are net of foreign withholding taxes of $15,841,000. |
| 2 | Dividends are net of foreign withholding taxes of $6,251,000. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;391728 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;430364 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;2054086 | &nbsp;&nbsp;&nbsp;&nbsp;4838005 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;549022 | &nbsp;&nbsp;&nbsp;(2985233) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;2994836 | &nbsp;&nbsp;&nbsp;&nbsp;2283136 |
| **Distributions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(407436) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(650696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | (2190665) | &nbsp;&nbsp;&nbsp;(3443247) |
| Total Distributions | &nbsp;&nbsp;(2598101) | &nbsp;&nbsp;&nbsp;(4093943) |
| **Capital Share Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(56992) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(610620) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;(289544) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;737980 |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;&nbsp;(346536) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127360 |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50199 | &nbsp;&nbsp;&nbsp;(1683447) |
| **Net Assets** |  |  |
| **Beginning of Period** | &nbsp;&nbsp;**47427226** | &nbsp;&nbsp;&nbsp;**49110673** |
| **End of Period** | &nbsp;&nbsp;**47477425** | &nbsp;&nbsp;&nbsp;**47427226** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$210.54** | &nbsp;&nbsp;&nbsp;**$218.60** | &nbsp;&nbsp;&nbsp;**$204.57** | &nbsp;&nbsp;&nbsp;**$203.34** | &nbsp;&nbsp;&nbsp;**$215.96** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.654 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.869 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.005 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.506 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.375 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.988 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.949 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.203 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.326 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.489 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.642 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.818 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.208 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.832 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.864 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.659) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.951) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.886) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.428) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.323) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9.933) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16.927) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15.292) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22.174) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15.161) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11.592) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18.878) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17.178) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24.602) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17.484) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$212.59** | &nbsp;&nbsp;&nbsp;**$210.54** | &nbsp;&nbsp;&nbsp;**$218.60** | &nbsp;&nbsp;&nbsp;**$204.57** | &nbsp;&nbsp;&nbsp;**$203.34** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**6.57%** | &nbsp;&nbsp;&nbsp;**4.48%** | &nbsp;&nbsp;&nbsp;**16.16%** | &nbsp;&nbsp;&nbsp;**13.16%** | &nbsp;&nbsp;&nbsp;**2.76%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$7496 | &nbsp;&nbsp;&nbsp;$7493 | &nbsp;&nbsp;&nbsp;$8342 | &nbsp;&nbsp;&nbsp;$8729 | &nbsp;&nbsp;&nbsp;$8850 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.34%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.30% | &nbsp;&nbsp;&nbsp;0.32% | &nbsp;&nbsp;&nbsp;0.32% | &nbsp;&nbsp;&nbsp;0.34% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;0.80% | &nbsp;&nbsp;&nbsp;0.82% | &nbsp;&nbsp;&nbsp;0.95% | &nbsp;&nbsp;&nbsp;1.25% | &nbsp;&nbsp;&nbsp;1.12% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;19% | &nbsp;&nbsp;&nbsp;15% | &nbsp;&nbsp;&nbsp;18% | &nbsp;&nbsp;&nbsp;18% | &nbsp;&nbsp;&nbsp;16% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.00%, (0.04%), (0.01%), (0.02%), and 0.00%. |
| 4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.34%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Admiral Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$88.77** | &nbsp;&nbsp;&nbsp;**$92.17** | &nbsp;&nbsp;&nbsp;**$86.27** | &nbsp;&nbsp;&nbsp;**$85.75** | &nbsp;&nbsp;&nbsp;**$91.08** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.830 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.883 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.097 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.036 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.052 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.780 | &nbsp;&nbsp;&nbsp;&nbsp;12.316 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.844 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.057 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.802 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.610 | &nbsp;&nbsp;&nbsp;&nbsp;13.199 | &nbsp;&nbsp;&nbsp;&nbsp;10.941 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.093 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.743) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.870) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.849) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.068) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.027) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.189) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.140) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6.450) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9.353) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6.396) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.932) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8.010) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.299) | &nbsp;&nbsp;&nbsp;&nbsp;(10.421) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.423) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$89.64** | &nbsp;&nbsp;&nbsp;**$88.77** | &nbsp;&nbsp;&nbsp;**$92.17** | &nbsp;&nbsp;&nbsp;**$86.27** | &nbsp;&nbsp;&nbsp;**$85.75** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**6.63%** | &nbsp;&nbsp;&nbsp;**4.53%** | &nbsp;&nbsp;&nbsp;**16.21%** | &nbsp;&nbsp;&nbsp;**13.22%** | &nbsp;&nbsp;&nbsp;**2.81%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$39981 | &nbsp;&nbsp;&nbsp;$39934 | &nbsp;&nbsp;&nbsp;$40769 | &nbsp;&nbsp;&nbsp;$38126 | &nbsp;&nbsp;&nbsp;$37888 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.29%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.25% | &nbsp;&nbsp;&nbsp;0.27% | &nbsp;&nbsp;&nbsp;0.27% | &nbsp;&nbsp;&nbsp;0.28% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;0.86% | &nbsp;&nbsp;&nbsp;0.86% | &nbsp;&nbsp;&nbsp;0.99% | &nbsp;&nbsp;&nbsp;1.30% | &nbsp;&nbsp;&nbsp;1.18% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;19% | &nbsp;&nbsp;&nbsp;15% | &nbsp;&nbsp;&nbsp;18% | &nbsp;&nbsp;&nbsp;18% | &nbsp;&nbsp;&nbsp;16% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.00%, (0.04%), (0.01%), (0.02%), and 0.00%. |
| 4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.29%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Health Care Fund

Notes to Financial Statements

Vanguard Health Care Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

**A.** The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master

------

Health Care Fund

repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple

------

Health Care Fund

Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

**B.** Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments
based on the fund's performance relative to the MSCI All Country World Health Care Index for the preceding three years. For the year ended January 31, 2023, the investment advisory fee represented an effective
annual basic rate of 0.14% of the fund's average net assets, before a net increase of $1,628,000 (0.00%) based on performance.

------

Health Care Fund

**C.** In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution
services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled
twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $1,801,000, representing less than 0.01% of the fund's net assets and 0.72% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

**D.** The fund has asked its investment advisor to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated.
Such rebates are used solely to reduce the fund's management and administrative expenses. The fund's custodian bank has also agreed to reduce its fees when the fund maintains cash on deposit in the
non-interest-bearing custody account. For the year ended January 31, 2023, these arrangements reduced the fund's management and administrative expenses by $53,000 and custodian fees by $2,000. The total expense
reduction represented an effective annual rate of less than 0.01% of the fund's average net assets.

**E.** Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or
methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks—North and South America | 33722058 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;33722058 |
| Common Stocks—Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;426469 | &nbsp;&nbsp;&nbsp;12524303 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;12950772 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;669 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;796513 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;797182 |
| Total | &nbsp;&nbsp;34149196 | &nbsp;&nbsp;&nbsp;13320816 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;47470012 |

---

**F.** Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no
effect on net assets or net asset value per share. As of period end,

------

Health Care Fund

permanent differences primarily attributable to the accounting for applicable foreign currency transactions, passive foreign investment companies, and distributions in connection with fund share redemptions were reclassified between the following accounts:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Paid-in Capital | &nbsp;&nbsp;&nbsp;&nbsp;61730 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;(61730) |

---

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21088 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;1474284 |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;17856576 |

---

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;&nbsp;386442 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;966751 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;2211659 | &nbsp;&nbsp;&nbsp;&nbsp;3127192 |
| Total | &nbsp;&nbsp;&nbsp;2598101 | &nbsp;&nbsp;&nbsp;&nbsp;4093943 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;29613839 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;20297006 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(2440832) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;17856174 |

---

**G.** During the year ended January 31, 2023, the fund purchased $8,773,240,000 of investment securities and sold $11,222,909,000 of investment securities, other than temporary cash investments.

------

Health Care Fund

**H.** Capital share transactions for each class of shares were:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |  |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **Investor Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;421032 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;629952 | &nbsp;&nbsp;&nbsp;&nbsp;2783 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;383037 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1809 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;609552 | &nbsp;&nbsp;&nbsp;&nbsp;2709 |
| Redeemed | &nbsp;&nbsp;&nbsp;(861061) | &nbsp;&nbsp;&nbsp;&nbsp;(4158) | &nbsp;&nbsp;(1850124) | &nbsp;&nbsp;&nbsp;&nbsp;(8061) |
| Net Increase (Decrease)—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(56992) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(333) | &nbsp;&nbsp;&nbsp;&nbsp;(610620) | &nbsp;&nbsp;&nbsp;&nbsp;(2569) |
| **Admiral Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;917744 | &nbsp;&nbsp;&nbsp;&nbsp;10465 | &nbsp;&nbsp;&nbsp;&nbsp;1787859 | &nbsp;&nbsp;&nbsp;&nbsp;18432 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;1929691 | &nbsp;&nbsp;&nbsp;&nbsp;21616 | &nbsp;&nbsp;&nbsp;&nbsp;3027419 | &nbsp;&nbsp;&nbsp;&nbsp;31867 |
| Redeemed | (3136979) | &nbsp;&nbsp;(35909) | &nbsp;&nbsp;&nbsp;(4077298) | &nbsp;&nbsp;(42774) |
| Net Increase (Decrease)—Admiral Shares | &nbsp;&nbsp;&nbsp;(289544) | &nbsp;&nbsp;&nbsp;&nbsp;(3828) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;737980 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7525 |

---

**I.** Certain of the fund's investments were in companies that were considered to be affiliated companies of the fund because the fund owned more than 5% of the outstanding voting securities of the company or the
issuer was another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Current Period Transactions | Current Period Transactions | Current Period Transactions | Current Period Transactions | Current Period Transactions | Current Period Transactions |  |
|  | Jan. 31,<br> 2022<br> Market<br> Value<br> ($000) | Purchases<br> at Cost<br> ($000) | Proceeds<br> from<br> Securities<br> Sold<br> ($000) | Realized<br> Net<br> Gain<br> (Loss)<br> ($000) | Change in<br> Unrealized<br> App. (Dep.)<br> ($000) | Income<br> ($000) | Capital Gain<br> Distributions<br> Received<br> ($000) | Jan. 31,<br> 2023<br> Market<br> Value<br> ($000) |
| 2seventy bio Inc. | &nbsp;&nbsp;&nbsp;&nbsp;38211 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(10376) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27835 |
| Agios Pharmaceuticals Inc. | &nbsp;&nbsp;&nbsp;159034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(7259) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;151775 |
| Alkermes plc | &nbsp;&nbsp;&nbsp;301083 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;201154 | &nbsp;&nbsp;&nbsp;(86001) | &nbsp;&nbsp;118388 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>1</sup> |
| Bluebird Bio Inc. | &nbsp;&nbsp;&nbsp;&nbsp;48445 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;25566 | (331131) | &nbsp;&nbsp;308252 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Eisai Co. Ltd. | &nbsp;&nbsp;&nbsp;894327 | &nbsp;&nbsp;&nbsp;45294 | &nbsp;&nbsp;&nbsp;24013 | &nbsp;&nbsp;&nbsp;&nbsp;(1449) | &nbsp;&nbsp;238057 | 20009 |  | &nbsp;&nbsp;1152216 |
| Ironwood Pharmaceuticals Inc. Class A | &nbsp;&nbsp;&nbsp;121558 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4034 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;125592 |
| Nektar Therapeutics Class A | &nbsp;&nbsp;&nbsp;126587 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;31437 | (403000) | &nbsp;&nbsp;&nbsp;307850 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| UCB SA | 1018749 | &nbsp;&nbsp;&nbsp;90308 | &nbsp;&nbsp;&nbsp;46817 | &nbsp;&nbsp;&nbsp;&nbsp;14097 | (179498) | &nbsp;&nbsp;&nbsp;9398 |  | &nbsp;&nbsp;&nbsp;&nbsp;896839 |
| Vanguard Market Liquidity Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4711 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;669 |
| Total | 2712705 | 135602 | 328987 | &nbsp;&nbsp;(807486) | &nbsp;&nbsp;779448 | 29407 |  | 2354926 |

---

1 Not applicable—at January 31, 2023, the security was still held, but the issuer was no longer an affiliated company of the fund. <br> 2 Not applicable—purchases and sales are for temporary cash investment purposes.

------

Health Care Fund

**J.** Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

------

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Health Care Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Health Care Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023, the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from the brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

------

#### Tax information (unaudited)
For corporate shareholders, 75.6%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $386,442,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $1,928,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

The fund distributed $2,263,579,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

------

experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. (investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School

(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

------

#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) and deputy chief compliance officer (2017–2019) of State Street.

#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

---

| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. Mclsaac** | **Lauren Valente** |

---

------

![](tm234052d2healthcarearq5i006.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.

#### CFA<sup>®</sup> is a registered trademark owned by CFA Institute.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> Vanguard Marketing Corporation, Distributor.

Q520 032023

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![](tm234052d2reitindexarq12i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Real Estate Index Funds

Vanguard Real Estate Index Fund <br> Vanguard Real Estate II Index Fund

------

*Contents*

---

| | |
|:---|:---|
| [Your Fund's Performance at a Glance](#xx_36049146-9849-407b-88e9-195f0a4471d0_1tm234052d2_reitindexarq1230)<br>| 1 |
| [AboutYour Fund's Expenses](#xx_9cc28a74-d54d-44ae-a254-47bfe225e329_1tm234052d2_reitindexarq1230)<br>| 2 |
| [Real Estate Index Fund](#xx_b24aab80-8da8-4c98-8c0d-bc22ff242fd7_1tm234052d2_reitindexarq1230)<br>| 4 |
| [Real Estate II Index Fund](#xx_1f0af3b5-5654-4133-9a1d-13b6ebbdbc65_1tm234052d2_reitindexarq1230)<br>| 29 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Your Fund's Performance at a Glance

• For the 12 months ended January 31, 2023, returns for Vanguard Real Estate Index Fund ranged from –11.39% for Investor Shares to –11.27% for Institutional Shares, –11.26% for Admiral Shares, and
 –11.25% for ETF Shares (based on net asset value). Vanguard Real Estate II Index Fund returned –11.23%. The results slightly lagged those of the funds' benchmark index.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation readings around much of the world continued climbing to multidecade
highs amid supply chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that
inflation might have peaked, and central banks began slowing their pace of interest rate hikes.

• Sticky inflation, dramatic rate hikes, and fears of a recession weighed heavily on sentiment in the stock market.

• The majority of the 12 sectors recorded negative returns for the 12 months. Real estate operating companies, mortgage and office REITs, and real estate services performed the worst.

• For the 10 years ended January 31, 2023, average annual returns for the Real Estate Index Fund ranged from 6.95% for Investor Shares to 7.08% for the Real Estate ETF, 7.09% for
Admiral Shares, and 7.11% for Institutional Shares, in line with its benchmark's return. The Real Estate Index II Fund launched in 2017 and doesn't have a 10-year record.

*Market Barometer*

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

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| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| **Based on Actual Fund Return** |  |  |  |
| Real Estate Index Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$943.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;943.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral™ Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;943.40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;943.50 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.49 |
| Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$943.70 | &nbsp;&nbsp;&nbsp;&nbsp;$0.39 |
| **Based on Hypothetical 5% Yearly Return** |  |  |  |
| Real Estate Index Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1023.89 | &nbsp;&nbsp;&nbsp;&nbsp;$1.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.51 |
| Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1024.80 | &nbsp;&nbsp;&nbsp;&nbsp;$0.41 |

---

The calculations are based on expenses incurred in the most recent six-month period. The funds' annualized six-month expense ratios for that period are: for the Real Estate Index Fund, 0.26% for Investor Shares, 0.12% for ETF Shares, 0.12% for Admiral Shares, and 0.10% for Institutional Shares; and for the Real Estate II Index Fund, 0.08%. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2reitindexarq12i002.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2reitindexarq12i003.jpg) | &nbsp;&nbsp;&nbsp;Real Estate Index Fund Investor Shares | &nbsp;&nbsp;&nbsp;-11.39% | &nbsp;&nbsp;&nbsp;&nbsp;6.52% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.95% | &nbsp;&nbsp;&nbsp;&nbsp;$19573 |
| ![](tm234052d2reitindexarq12i004.jpg) | &nbsp;&nbsp;&nbsp;Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;&nbsp;6.77 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20031 |
| ![](tm234052d2reitindexarq12i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

Real Estate Spliced Index: MSCI US REIT Index through February 1, 2018; MSCI US Investable Market Real Estate 25/50 Transition Index through July 24, 2018; MSCI US Investable Market Real Estate 25/50 Index thereafter.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| Real Estate Index Fund ETF Shares Net Asset Value | &nbsp;&nbsp;&nbsp;-11.25% | &nbsp;&nbsp;&nbsp;6.64% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.08% | &nbsp;&nbsp;&nbsp;&nbsp;$19824 |
| Real Estate Index Fund ETF Shares Market Price | &nbsp;&nbsp;&nbsp;-11.24 | &nbsp;&nbsp;&nbsp;6.64 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.08 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19821 |
| Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;6.77 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20031 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

See Financial Highlights for dividend and capital gains information.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| Real Estate Index Fund Admiral Shares | &nbsp;&nbsp;&nbsp;-11.26% | &nbsp;&nbsp;&nbsp;6.66% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.09% | &nbsp;&nbsp;&nbsp;&nbsp;$19845 |
| Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;6.77 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20031 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $5,000,000<br> Investment |
| Real Estate Index Fund Institutional Shares | &nbsp;&nbsp;&nbsp;-11.27% | &nbsp;&nbsp;&nbsp;6.68% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11% | &nbsp;&nbsp;&nbsp;&nbsp;$9938961 |
| Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;6.77 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10015355 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15790549 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Cumulative Returns of ETF Shares: January 31, 2013, Through January 31, 2023** | **Cumulative Returns of ETF Shares: January 31, 2013, Through January 31, 2023** | **Cumulative Returns of ETF Shares: January 31, 2013, Through January 31, 2023** | **Cumulative Returns of ETF Shares: January 31, 2013, Through January 31, 2023** |
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years |
| Real Estate Index Fund ETF Shares Market Price | &nbsp;&nbsp;&nbsp;-11.24% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.94% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.21% |
| Real Estate Index Fund ETF Shares Net Asset Value | &nbsp;&nbsp;&nbsp;-11.25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.94 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.24 |
| Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.72 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.31 |

---

For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, click on Price, and then scroll down to the Premium/Discount chart. The ETF premium/discount chart there shows the percentage and days on which the ETF Shares' market price was above or below the NAV.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| Diversified Real Estate Activities | &nbsp;&nbsp;&nbsp;0.1% |
| Diversified REITs | &nbsp;&nbsp;&nbsp;3.0 |
| Health Care REITs | &nbsp;&nbsp;&nbsp;7.9 |
| Hotel & Resort REITs | &nbsp;&nbsp;&nbsp;2.8 |
| Industrial REITs | 12.6 |
| Office REITs | &nbsp;&nbsp;&nbsp;5.5 |
| Real Estate Development | &nbsp;&nbsp;&nbsp;0.3 |
| Real Estate Operating Companies | &nbsp;&nbsp;&nbsp;0.4 |
| Real Estate Services | &nbsp;&nbsp;&nbsp;4.1 |
| Residential REITs | 13.6 |
| Retail REITs | 12.6 |
| Specialized REITs | 37.1 |

---

The table reflects the fund's investments, except for short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard ("GICS"), except for the "Other" category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.

The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard and Poor's, a division of McGraw-Hill Companies, Inc. ("S&P"), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **Equity Real Estate Investment Trusts (REITs) (95.0%)** | **Equity Real Estate Investment Trusts (REITs) (95.0%)** | **Equity Real Estate Investment Trusts (REITs) (95.0%)** | **Equity Real Estate Investment Trusts (REITs) (95.0%)** |
| **Diversified REITs (2.6%)** | **Diversified REITs (2.6%)** | **Diversified REITs (2.6%)** | **Diversified REITs (2.6%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;WP Carey Inc. | &nbsp;&nbsp;&nbsp;&nbsp;8608205 | &nbsp;&nbsp;&nbsp;&nbsp;736260 |
| | &nbsp;&nbsp;&nbsp;&nbsp;STORE Capital Corp. | &nbsp;&nbsp; 11353001 | &nbsp;&nbsp;&nbsp;&nbsp;365680 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Essential Properties Realty Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6299864 | &nbsp;&nbsp; 160521 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Broadstone Net Lease Inc. | &nbsp;&nbsp; 7722008 | &nbsp;&nbsp; 139846 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Global Net Lease Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4629492 | &nbsp;&nbsp; 69211 |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Assets Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2296988 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65372 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexander & Baldwin Inc. | &nbsp;&nbsp;&nbsp;&nbsp;3246506 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64995 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Empire State Realty Trust Inc. Class A | &nbsp;&nbsp; 6163089 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51400 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Armada Hoffler Properties Inc. | &nbsp;&nbsp; 3019416 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38286 |
| | &nbsp;&nbsp;&nbsp;&nbsp;iStar Inc. | &nbsp;&nbsp; 3807294 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35332 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gladstone Commercial Corp. | &nbsp;&nbsp; 1761403 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29926 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;NexPoint Diversified Real Estate Trust | &nbsp;&nbsp;&nbsp;&nbsp;1405990 | &nbsp;&nbsp; 18404 |
| | &nbsp;&nbsp;&nbsp;&nbsp;One Liberty Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;752349 | &nbsp;&nbsp; 18139 |
|  |  |  | &nbsp;&nbsp; **1793372** |
| **Health Care REITs (6.9%)** | **Health Care REITs (6.9%)** | **Health Care REITs (6.9%)** | **Health Care REITs (6.9%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Welltower Inc. | &nbsp;&nbsp; 19927089 | 1495329 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Ventas Inc. | &nbsp;&nbsp; 17836395 | &nbsp;&nbsp; 924104 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Healthpeak Properties Inc. | &nbsp;&nbsp; 24077458 | &nbsp;&nbsp;&nbsp;&nbsp;661648 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Healthcare Realty Trust Inc. Class A | &nbsp;&nbsp; 16980986 | &nbsp;&nbsp; 365601 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Medical Properties Trust Inc. | 26728489 | &nbsp;&nbsp; 346134 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Omega Healthcare Investors Inc. | &nbsp;&nbsp; 10446488 | &nbsp;&nbsp; 307545 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Physicians Realty Trust | &nbsp;&nbsp; 10096143 | &nbsp;&nbsp; 160125 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Sabra Health Care REIT Inc. | &nbsp;&nbsp; 10309979 | &nbsp;&nbsp; 139185 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Health Investors Inc. | &nbsp;&nbsp; 1993214 | &nbsp;&nbsp;&nbsp; 117261 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CareTrust REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4330908 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89736 |
| | &nbsp;&nbsp;&nbsp;&nbsp;LTC Properties Inc. | &nbsp;&nbsp; 1808103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68979 |

---

---

| | | |
|:---|:---|:---|
|  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Community Healthcare Trust Inc. | &nbsp;&nbsp; 1063187 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal Health Realty Income Trust | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;585063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Medical REIT Inc. | &nbsp;&nbsp; 2774558 | &nbsp;&nbsp; 31158 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diversified Healthcare Trust | &nbsp;&nbsp; 10716655 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8481 |
|  |  | &nbsp;&nbsp; **4792942** |
| **Hotel & Resort REITs (2.5%)** | **Hotel & Resort REITs (2.5%)** | **Hotel & Resort REITs (2.5%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Host Hotels & Resorts Inc. | 31900770 | &nbsp;&nbsp; 601330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ryman Hospitality Properties Inc. | &nbsp;&nbsp; 2338106 | &nbsp;&nbsp; 217187 |
| &nbsp;&nbsp;&nbsp;&nbsp;Apple Hospitality REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;9700839 | &nbsp;&nbsp; 171996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Park Hotels & Resorts Inc. | &nbsp;&nbsp; 10030773 | &nbsp;&nbsp; 147553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sunstone Hotel Investors Inc. | &nbsp;&nbsp; 9477828 | &nbsp;&nbsp; 104161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | &nbsp;&nbsp;&nbsp;&nbsp;5868441 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;96242 |
| &nbsp;&nbsp;&nbsp;&nbsp;RLJ Lodging Trust | &nbsp;&nbsp; 7265444 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91327 |
| &nbsp;&nbsp;&nbsp;&nbsp;DiamondRock Hospitality Co. | &nbsp;&nbsp; 9416148 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts Inc. | &nbsp;&nbsp; 5105117 | &nbsp;&nbsp; 76066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service Properties Trust | &nbsp;&nbsp;&nbsp; 7374649 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65708 |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit Hotel Properties Inc. | &nbsp;&nbsp; 4766517 | &nbsp;&nbsp; 40611 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chatham Lodging Trust | &nbsp;&nbsp;&nbsp;&nbsp;2070669 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29424 |
|  |  | &nbsp;&nbsp; **1732282** |
| **Industrial REITs (11.0%)** | **Industrial REITs (11.0%)** | **Industrial REITs (11.0%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Prologis Inc. | &nbsp;&nbsp; 41187127 | 5324672 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rexford Industrial Realty Inc. | &nbsp;&nbsp; 7633409 | &nbsp;&nbsp;&nbsp;&nbsp;484492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Americold Realty Trust Inc. | &nbsp;&nbsp; 12018685 | &nbsp;&nbsp; 377507 |
| &nbsp;&nbsp;&nbsp;&nbsp;EastGroup Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1944393 | &nbsp;&nbsp; 327144 |
| &nbsp;&nbsp;&nbsp;&nbsp;First Industrial Realty Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;5894270 | &nbsp;&nbsp; 314459 |
| &nbsp;&nbsp;&nbsp;&nbsp;STAG Industrial Inc. | &nbsp;&nbsp; 7998344 | &nbsp;&nbsp; 284741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Terreno Realty Corp. | &nbsp;&nbsp; 3371074 | &nbsp;&nbsp;&nbsp; 217198 |
| &nbsp;&nbsp;&nbsp;&nbsp;LXP Industrial Trust | &nbsp;&nbsp; 12485278 | &nbsp;&nbsp; 144205 |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;Innovative Industrial Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1248492 | &nbsp;&nbsp; 112090 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Plymouth Industrial REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1789256 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40044 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Industrial Logistics Properties Trust | &nbsp;&nbsp; 2910003 | &nbsp;&nbsp; 12833 |
|  |  |  | &nbsp;&nbsp; **7639385** |
| **Office REITs (4.8%)** | **Office REITs (4.8%)** | **Office REITs (4.8%)** | **Office REITs (4.8%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities Inc. | &nbsp;&nbsp; 6916996 | &nbsp;&nbsp; 1111838 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Boston Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6644087 | &nbsp;&nbsp;&nbsp;&nbsp;495250 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kilroy Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;4693244 | &nbsp;&nbsp; 192611 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Cousins Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6756799 | &nbsp;&nbsp; 185271 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Vornado Realty Trust | &nbsp;&nbsp; 7273008 | &nbsp;&nbsp; 177389 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Highwoods Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4695483 | &nbsp;&nbsp; 142602 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Corporate Office Properties Trust | &nbsp;&nbsp; 5014539 | &nbsp;&nbsp; 140758 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Douglas Emmett Inc. | &nbsp;&nbsp; 7846678 | &nbsp;&nbsp; 131432 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity Commonwealth | &nbsp;&nbsp;&nbsp;&nbsp;4960886 | &nbsp;&nbsp; 126602 |
| | &nbsp;&nbsp;&nbsp;&nbsp;SL Green Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;2870606 | &nbsp;&nbsp; 118125 |
| | &nbsp;&nbsp;&nbsp;&nbsp;JBG SMITH Properties | &nbsp;&nbsp;&nbsp;&nbsp;4595791 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92559 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Hudson Pacific Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6324828 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72040 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Easterly Government Properties Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;3852655 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62567 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Veris Residential Inc. | &nbsp;&nbsp;&nbsp;&nbsp;3456969 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59806 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Piedmont Office Realty Trust Inc. Class A | &nbsp;&nbsp; 5511535 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58422 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Paramount Group Inc. | &nbsp;&nbsp;&nbsp;&nbsp;8053502 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51945 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Brandywine Realty Trust | &nbsp;&nbsp; 7664789 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50281 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Office Properties Income Trust | &nbsp;&nbsp; 2160075 | &nbsp;&nbsp; 37067 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Orion Office REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2524592 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24362 |
| | &nbsp;&nbsp;&nbsp;&nbsp;City Office REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1852461 | &nbsp;&nbsp; 18228 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Franklin Street Properties Corp. | &nbsp;&nbsp; 4133818 | &nbsp;&nbsp; 12732 |
| <sup>\*,2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;New York REIT Liquidating LLC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1208 | &nbsp;&nbsp; 14 |
|  |  |  | &nbsp;&nbsp; **3361901** |
| **Other (12.1%)<sup>3</sup>** | **Other (12.1%)<sup>3</sup>** | **Other (12.1%)<sup>3</sup>** | **Other (12.1%)<sup>3</sup>** |
| <sup>4,5</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Vanguard Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;387519976 | &nbsp;&nbsp; 8471187 |
| **Residential REITs (11.8%)** | **Residential REITs (11.8%)** | **Residential REITs (11.8%)** | **Residential REITs (11.8%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;AvalonBay Communities Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6239635 | &nbsp;&nbsp;&nbsp; 1107161 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity Residential | &nbsp;&nbsp; 15344227 | &nbsp;&nbsp; 976660 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Invitation Homes Inc. | &nbsp;&nbsp; 27236187 | &nbsp;&nbsp; 885176 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Sun Communities Inc. | &nbsp;&nbsp; 5503127 | &nbsp;&nbsp;&nbsp;&nbsp;863220 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Mid-America Apartment Communities Inc. | &nbsp;&nbsp; 5151214 | &nbsp;&nbsp; 858810 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Essex Property Trust Inc. | &nbsp;&nbsp; 2906001 | &nbsp;&nbsp;&nbsp;&nbsp;656960 |
| | &nbsp;&nbsp;&nbsp;&nbsp;UDR Inc. | &nbsp;&nbsp; 14498842 | &nbsp;&nbsp; 617506 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity LifeStyle Properties Inc. | &nbsp;&nbsp; 7888333 | &nbsp;&nbsp;&nbsp;&nbsp;566225 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Camden Property Trust | &nbsp;&nbsp; 4515888 | &nbsp;&nbsp;&nbsp;&nbsp;556403 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Homes 4 Rent Class A | &nbsp;&nbsp; 12915399 | &nbsp;&nbsp;&nbsp;&nbsp;442869 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;6879792 | &nbsp;&nbsp;&nbsp;&nbsp;263221 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Independence Realty Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;9908240 | &nbsp;&nbsp; 186572 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Elme Communities | &nbsp;&nbsp; 3901427 | &nbsp;&nbsp; 74907 |
| | &nbsp;&nbsp;&nbsp;&nbsp;NexPoint Residential Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;1031206 | &nbsp;&nbsp; 52076 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Apartment Investment & Management Co. Class A | &nbsp;&nbsp;&nbsp;&nbsp;6781782 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50931 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Centerspace | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;685372 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46345 |
| | &nbsp;&nbsp;&nbsp;&nbsp;UMH Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;2332058 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41790 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Bluerock Homes Trust Inc. | &nbsp;&nbsp; 149 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 |
|  |  |  | &nbsp;&nbsp; **8246835** |
| **Retail REITs (11.0%)** | **Retail REITs (11.0%)** | **Retail REITs (11.0%)** | **Retail REITs (11.0%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Realty Income Corp. | &nbsp;&nbsp; 27558427 | 1869288 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Simon Property Group Inc. | &nbsp;&nbsp; 14207415 | 1825085 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kimco Realty Corp. | &nbsp;&nbsp; 27598339 | &nbsp;&nbsp; 619859 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Regency Centers Corp. | &nbsp;&nbsp; 6872112 | &nbsp;&nbsp; 457889 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Retail Properties Inc. | &nbsp;&nbsp; 7903313 | &nbsp;&nbsp; 374222 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | &nbsp;&nbsp; 3248876 | &nbsp;&nbsp;&nbsp;&nbsp;362347 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Brixmor Property Group Inc. | &nbsp;&nbsp; 13373567 | &nbsp;&nbsp; 314680 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Spirit Realty Capital Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6084329 | &nbsp;&nbsp;&nbsp;&nbsp;266980 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Agree Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;3562592 | &nbsp;&nbsp; 265876 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kite Realty Group Trust | &nbsp;&nbsp;&nbsp;&nbsp;9778298 | &nbsp;&nbsp; 212189 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Phillips Edison & Co. Inc. | &nbsp;&nbsp; 5206159 | &nbsp;&nbsp; 174510 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Macerich Co. | &nbsp;&nbsp;&nbsp;&nbsp;9588248 | &nbsp;&nbsp; 131743 |
| | &nbsp;&nbsp;&nbsp;&nbsp;SITE Centers Corp. | &nbsp;&nbsp;&nbsp;&nbsp;8599633 | &nbsp;&nbsp;&nbsp; 117385 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Tanger Factory Outlet Centers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4659047 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89034 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Retail Opportunity Investments Corp. | &nbsp;&nbsp; 5559816 | &nbsp;&nbsp; 88012 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Urban Edge Properties | &nbsp;&nbsp; 5242911 | &nbsp;&nbsp; 82576 |
| | &nbsp;&nbsp;&nbsp;&nbsp;InvenTrust Properties Corp. | &nbsp;&nbsp; 3010096 | &nbsp;&nbsp; 74861 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Acadia Realty Trust | &nbsp;&nbsp;&nbsp;&nbsp;4238675 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65827 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Getty Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;1773350 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64603 |
| | &nbsp;&nbsp;&nbsp;&nbsp;NETSTREIT Corp. | &nbsp;&nbsp; 2249128 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45275 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Necessity Retail REIT Inc. Class A | &nbsp;&nbsp; 5942915 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40590 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RPT Realty | &nbsp;&nbsp;&nbsp;&nbsp;3796833 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39791 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Saul Centers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;639248 | &nbsp;&nbsp; 27366 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Urstadt Biddle Properties Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;1334058 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25054 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexander's Inc. | &nbsp;&nbsp; 102436 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24306 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CBL & Associates Properties Inc. | &nbsp;&nbsp; 566768 | &nbsp;&nbsp; 15104 |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;Urstadt Biddle Properties Inc. | &nbsp;&nbsp; 16032 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;269 |
| <sup>\*,2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Spirit MTA REIT | &nbsp;&nbsp;&nbsp;&nbsp;2071263 | &nbsp;&nbsp; — |
|  |  |  | &nbsp;&nbsp; **7674721** |
| **Specialized REITs (32.3%)** | **Specialized REITs (32.3%)** | **Specialized REITs (32.3%)** | **Specialized REITs (32.3%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Tower Corp. | &nbsp;&nbsp; 20776071 | &nbsp;&nbsp; 4641167 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equinix Inc. | &nbsp;&nbsp;&nbsp;&nbsp;4064086 | 2999824 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Crown Castle Inc. | &nbsp;&nbsp; 19323658 | 2862027 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Public Storage | &nbsp;&nbsp; 7049932 | &nbsp;&nbsp; 2145576 |
| | &nbsp;&nbsp;&nbsp;&nbsp;SBA Communications Corp. Class A | &nbsp;&nbsp; 4813893 | 1432278 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Digital Realty Trust Inc. | &nbsp;&nbsp; 12200029 | 1398367 |
| | &nbsp;&nbsp;&nbsp;&nbsp;VICI Properties Inc. Class A | &nbsp;&nbsp; 37576692 | 1284371 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Weyerhaeuser Co. | &nbsp;&nbsp; 33035120 | &nbsp;&nbsp; 1137399 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Extra Space Storage Inc. | &nbsp;&nbsp;&nbsp;&nbsp;5975557 | &nbsp;&nbsp; 943122 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Iron Mountain Inc. | &nbsp;&nbsp; 12971309 | &nbsp;&nbsp;&nbsp; 707974 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gaming & Leisure Properties Inc. | &nbsp;&nbsp; 11451516 | &nbsp;&nbsp; 613343 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CubeSmart | &nbsp;&nbsp; 10015763 | &nbsp;&nbsp;&nbsp;&nbsp;458622 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Lamar Advertising Co. Class A | &nbsp;&nbsp; 3887242 | &nbsp;&nbsp; 414147 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Life Storage Inc. | &nbsp;&nbsp; 3765098 | &nbsp;&nbsp;&nbsp;&nbsp;406781 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Rayonier Inc. | &nbsp;&nbsp;&nbsp;&nbsp;6533800 | &nbsp;&nbsp; 237765 |
| | &nbsp;&nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. | &nbsp;&nbsp;&nbsp;&nbsp;3596091 | &nbsp;&nbsp; 176029 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Storage Affiliates Trust | &nbsp;&nbsp;&nbsp;&nbsp;3891493 | &nbsp;&nbsp; 158773 |
| | &nbsp;&nbsp;&nbsp;&nbsp;EPR Properties | &nbsp;&nbsp;&nbsp;&nbsp;3346235 | &nbsp;&nbsp; 142148 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Outfront Media Inc. | &nbsp;&nbsp; 6225151 | &nbsp;&nbsp; 123881 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Four Corners Property Trust Inc. | &nbsp;&nbsp;&nbsp;&nbsp;3635636 | &nbsp;&nbsp; 104561 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Uniti Group Inc. | &nbsp;&nbsp; 10593083 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69808 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Safehold Inc. | &nbsp;&nbsp; 1100744 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38482 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gladstone Land Corp. | &nbsp;&nbsp;&nbsp;&nbsp;1451595 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28364 |
|  |  |  | &nbsp;&nbsp;**22524809** |
| **Total Equity Real Estate Investment Trusts (REITs) (Cost $61,308,066)** | **Total Equity Real Estate Investment Trusts (REITs) (Cost $61,308,066)** | **Total Equity Real Estate Investment Trusts (REITs) (Cost $61,308,066)** | **66237434** |
| **Real Estate Management & Development (4.3%)** | **Real Estate Management & Development (4.3%)** | **Real Estate Management & Development (4.3%)** | **Real Estate Management & Development (4.3%)** |
| **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;St. Joe Co. | &nbsp;&nbsp;&nbsp;&nbsp;1446722 | &nbsp;&nbsp; 68141 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RMR Group Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;690879 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21431 |
|  |  |  | &nbsp;&nbsp; **89572** |
| **Real Estate Development (0.2%)** | **Real Estate Development (0.2%)** | **Real Estate Development (0.2%)** | **Real Estate Development (0.2%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Howard Hughes Corp. | &nbsp;&nbsp; 1670153 | &nbsp;&nbsp; 142781 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Forestar Group Inc. | &nbsp;&nbsp; 887144 | &nbsp;&nbsp; 13201 |
|  |  |  | &nbsp;&nbsp; **155982** |
| **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;DigitalBridge Group Inc. | &nbsp;&nbsp;&nbsp; 7317660 | &nbsp;&nbsp; 108301 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings Inc. | &nbsp;&nbsp; 5537251 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99006 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Seritage Growth Properties Class A | &nbsp;&nbsp;&nbsp;&nbsp;1623385 | &nbsp;&nbsp; 19724 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;FRP Holdings Inc. | &nbsp;&nbsp; 273865 | &nbsp;&nbsp; 15383 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;WeWork Inc. | &nbsp;&nbsp; 7893023 | &nbsp;&nbsp; 12550 |
|  |  |  | &nbsp;&nbsp; **254964** |
| **Real Estate Services (3.6%)** | **Real Estate Services (3.6%)** | **Real Estate Services (3.6%)** | **Real Estate Services (3.6%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;CBRE Group Inc. Class A | &nbsp;&nbsp; 14331530 | 1225489 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Jones Lang LaSalle Inc. | &nbsp;&nbsp; 2138169 | &nbsp;&nbsp;&nbsp;&nbsp;395283 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Zillow Group Inc. Class C | &nbsp;&nbsp; 7062314 | &nbsp;&nbsp; 312225 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Zillow Group Inc. Class A | &nbsp;&nbsp; 2635902 | &nbsp;&nbsp; 113238 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Cushman & Wakefield plc | &nbsp;&nbsp; 6549668 | &nbsp;&nbsp; 94512 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Newmark Group Inc. Class A | &nbsp;&nbsp; 7046602 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60389 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;eXp World Holdings Inc. | &nbsp;&nbsp; 3047437 | &nbsp;&nbsp; 47510 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Anywhere Real Estate Inc. | &nbsp;&nbsp; 5101407 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43260 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Compass Inc. Class A | &nbsp;&nbsp; 10606305 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42637 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Marcus & Millichap Inc. | &nbsp;&nbsp; 1160691 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42064 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Opendoor Technologies Inc. | &nbsp;&nbsp; 18220853 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39904 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Redfin Corp. | &nbsp;&nbsp;&nbsp;&nbsp;4000946 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29927 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RE/MAX Holdings Inc. Class A | &nbsp;&nbsp; 836768 | &nbsp;&nbsp; 19087 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Douglas Elliman Inc. | &nbsp;&nbsp; 3260615 | &nbsp;&nbsp; 15195 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Doma Holdings Inc. | &nbsp;&nbsp; 5139837 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3649 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Offerpad Solutions Inc. | &nbsp;&nbsp; 2606443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2391 |
|  |  |  | &nbsp;&nbsp; **2486760** |
| **Total Real Estate Management & Development (Cost $3,883,149)** | **Total Real Estate Management & Development (Cost $3,883,149)** | **Total Real Estate Management & Development (Cost $3,883,149)** | &nbsp;&nbsp;&nbsp;**2987278** |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Shares** | &nbsp;&nbsp;**Market<br> Value• ($000)** |
| **Temporary Cash Investments (0.6%)** | **Temporary Cash Investments (0.6%)** | **Temporary Cash Investments (0.6%)** | **Temporary Cash Investments (0.6%)** |
| **Money Market Fund (0.6%)** | **Money Market Fund (0.6%)** | **Money Market Fund (0.6%)** | **Money Market Fund (0.6%)** |
| <sup>6,7</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Vanguard Market Liquidity Fund, 4.437%<br> **(Cost $399,812)** | &nbsp;&nbsp;&nbsp;&nbsp;3999300 | **399890** |
| **Total Investments (99.9%)<br> (Cost $65,591,027)** | **Total Investments (99.9%)<br> (Cost $65,591,027)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**69624602** |
| **Other Assets and Liabilities—Net (0.1%)** | **Other Assets and Liabilities—Net (0.1%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**48464** |
| **Net Assets (100%)** | **Net Assets (100%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**69673066** |

---

Cost is in $000.

• See Note A in Notes to Financial Statements.

---

| | |
|:---|:---|
| \* | Non-income-producing security. |
| 1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $34,913,000. |
| 2 | Security value determined using significant unobservable inputs. |
| 3 | "Other" represents securities that are not classified by the fund's benchmark index. |
| 4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
| 5 | Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments. |
| 6 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 7 | Collateral of $38,046,000 was received for securities on loan. |

---

REIT—Real Estate Investment Trust.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

------

#### Derivative Financial Instruments Outstanding as of Period End

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps |
| Reference Entity | Termination<br> Date | Counterparty | Notional<br> Amount<br> ($000) | Floating<br> Interest<br> Rate<br> Received<br> (Paid)<sup>1</sup><br> (%) | Value and<br> Unrealized<br> Appreciation<br> ($000) | Value and<br> Unrealized<br> (Depreciation)<br> ($000) |
| American Homes 4 Rent Class A | 8/31/23 | BANA | &nbsp;&nbsp;&nbsp;31647 | (4.477) | &nbsp;&nbsp;&nbsp;4247 |  |
| Digital Realty Trust Inc. | 8/31/23 | BANA | &nbsp;&nbsp;&nbsp;37601 | (4.477) | &nbsp;&nbsp;&nbsp;5708 |  |
| Digital Realty Trust Inc. | 1/31/24 | GSI | &nbsp;&nbsp;&nbsp;28655 | (4.607) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Equity Residential | 8/31/23 | BANA | &nbsp;&nbsp;&nbsp;35400 | (4.477) | &nbsp;&nbsp;&nbsp;3042 |  |
| Redfin Corp. | 1/31/24 | GSI | &nbsp;&nbsp;&nbsp;&nbsp;2618 | (4.557) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Simon Property Group Inc. | 1/31/24 | GSI | &nbsp;&nbsp;&nbsp;51384 | (4.607) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| VICI Properties Inc. Class A | 8/31/23 | BANA | 174960 | (4.877) | 11054 |  |
| Welltower Inc. | 8/31/23 | BANA | &nbsp;&nbsp;&nbsp;49163 | (4.477) | &nbsp;&nbsp;&nbsp;6946 |  |
|  |  |  |  |  | 30997 |  |

---

1 Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. <br> BANA—Bank of America, N.A. <br> GSI—Goldman Sachs International.

At January 31, 2023, the counterparties had deposited in segregated accounts securities with a value of $32,988,000 in connection with open over-the-counter swap contracts.

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value<sup>1</sup> |  |
| &nbsp;&nbsp;Unaffiliated Issuers (Cost $57,813,711) | 60753525 |
| &nbsp;&nbsp;Affiliated Issuers (Cost $399,812) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399890 |
| &nbsp;&nbsp;Vanguard Real Estate II Index Fund (Cost $7,377,504) | &nbsp;&nbsp;&nbsp;&nbsp;8471187 |
| Total Investments in Securities | 69624602 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2082 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24622 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56541 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21640 |
| Unrealized Appreciation—Over-the-Counter Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30997 |
| **Total Assets** | **69760484** |
| **Liabilities** |  |
| Due to Custodian | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5465 |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7203 |
| Collateral for Securities on Loan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38046 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33384 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3320 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**87418** |
| **Net Assets** | **69673066** |
| 1 Includes $34,913,000 of securities on loan. |  |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | |
|:---|:---|
| Statement of Assets and Liabilities (continued) | Statement of Assets and Liabilities (continued) |
| <br> <br> **At January 31, 2023, net assets consisted of:** |  |
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount |
| Paid-in Capital | 68336414 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;1336652 |
| **Net Assets** | **69673066** |
| **Investor Shares—Net Assets** |  |
| **Applicable to 4,205,462 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**127243** |
| **Net Asset Value Per Share—Investor Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$30.26** |
| **ETF Shares—Net Assets** |  |
| **Applicable to 404,429,314 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **36825433** |
| **Net Asset Value Per Share—ETF Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$91.06** |
| **Admiral Shares—Net Assets** |  |
| **Applicable to 171,331,723 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**22110207** |
| **Net Asset Value Per Share—Admiral Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$129.05** |
| **Institutional Shares—Net Assets** |  |
| **Applicable to 531,216,655 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**10610183** |
| **Net Asset Value Per Share—Institutional Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$19.97** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends—Unaffiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1564425 |
| Dividends—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68745 |
| Dividends—Vanguard Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;198144 |
| Interest—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6278 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2046 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1839638 |
| **Expenses** |  |
| The Vanguard Group—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;333 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37 |
| Shareholders' Reports—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 |
| Shareholders' Reports—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1654 |
| Shareholders' Reports—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;427 |
| Shareholders' Reports—Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;181 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82373 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(95) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82278 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1757360** |
| **Realized Net Gain (Loss)** |  |
| Capital Gain Distributions Received—Unaffiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;329013 |
| Capital Gain Distributions Received—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 |
| Capital Gain Distributions Received—Vanguard Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90589 |
| Investment Securities Sold—Unaffiliated Issuers<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2537306 |
| Investment Securities Sold—Affiliated Issuers<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41663 |
| Investment Securities Sold—Vanguard Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | |
|:---|:---|
| Statement of Operations (continued) | Statement of Operations (continued) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50078) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2948495** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities—Unaffiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13306186) |
| Investment Securities—Affiliated Issuers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;128233 |
| Investment Securities—Vanguard Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1360121) |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30997 |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(14507077)** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(9801222)** |

---

---

| | |
|:---|:---|
| 1 | Includes $3,058,163,000 of net gain (loss) resulting from in-kind redemptions. |
| 2 | Includes $69,236,000 of net gain (loss) resulting from in-kind redemptions. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;1757360 | &nbsp;&nbsp;&nbsp;&nbsp;1487532 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;2948495 | &nbsp;&nbsp;&nbsp;&nbsp;2507302 |
| Change in Unrealized Appreciation (Depreciation) | (14507077) | &nbsp;&nbsp;&nbsp;14077791 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;&nbsp;(9801222) | &nbsp;&nbsp;&nbsp;18072625 |
| **Distributions** |  |  |
| Net Investment Income and/or Realized Capital Gains |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3184) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3637) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(893338) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(811715) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(518210) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(463925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(253055) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(220900) |
| Return of Capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1590) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(446081) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(418428) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(258764) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(239147) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(126361) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(113871) |
| Total Distributions | &nbsp;&nbsp;&nbsp;(2500583) | &nbsp;&nbsp;&nbsp;&nbsp;(2273497) |
| **Capital Share Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41427) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;(3046898) | &nbsp;&nbsp;&nbsp;&nbsp;6252486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34532 | &nbsp;&nbsp;&nbsp;&nbsp;1052588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;306763 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221639 |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;(2747030) | &nbsp;&nbsp;&nbsp;&nbsp;7491600 |
| Total Increase (Decrease) | (15048835) | &nbsp;&nbsp;&nbsp;23290728 |
| **Net Assets** |  |  |
| **Beginning of Period** | &nbsp;&nbsp;**84721901** | &nbsp;&nbsp;&nbsp;**61431173** |
| **End of Period** | &nbsp;&nbsp;**69673066** | &nbsp;&nbsp;&nbsp;**84721901** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investor Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$35.37** | &nbsp;&nbsp;&nbsp;**$28.23** | &nbsp;&nbsp;&nbsp;**$31.21** | &nbsp;&nbsp;&nbsp;**$27.69** | &nbsp;&nbsp;&nbsp;**$26.40** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.684 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.602 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.586 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.719 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.787 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.766) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.475 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.498) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.801 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.639 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.082) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.077 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.912) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.520 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.426 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.686) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.620) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.624) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.752) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.851) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.342) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.317) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.444) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.248) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.285) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.028) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.937) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.068) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.000) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.136) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$30.26** | &nbsp;&nbsp;&nbsp;**$35.37** | &nbsp;&nbsp;&nbsp;**$28.23** | &nbsp;&nbsp;&nbsp;**$31.21** | &nbsp;&nbsp;&nbsp;**$27.69** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**-11.39%** | &nbsp;&nbsp;&nbsp;**28.73%** | &nbsp;&nbsp;&nbsp;**-5.88%** | &nbsp;&nbsp;&nbsp;**16.59%** | &nbsp;&nbsp;&nbsp;**9.53%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$127 | &nbsp;&nbsp;&nbsp;$196 | &nbsp;&nbsp;&nbsp;$188 | &nbsp;&nbsp;&nbsp;$243 | &nbsp;&nbsp;&nbsp;$1871 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.26%<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.26% | &nbsp;&nbsp;&nbsp;0.26% | &nbsp;&nbsp;&nbsp;0.26% | &nbsp;&nbsp;&nbsp;0.25% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;2.18% | &nbsp;&nbsp;&nbsp;1.77% | &nbsp;&nbsp;&nbsp;2.18% | &nbsp;&nbsp;&nbsp;2.48% | &nbsp;&nbsp;&nbsp;3.02% |
| Portfolio Turnover Rate<sup>4</sup> | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;8% | &nbsp;&nbsp;&nbsp;6% | &nbsp;&nbsp;&nbsp;24% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.25%. |
| 4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ETF Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$106.44** | &nbsp;&nbsp;&nbsp;&nbsp;**$84.96** | &nbsp;&nbsp;&nbsp;**$93.93** | &nbsp;&nbsp;&nbsp;**$83.36** | &nbsp;&nbsp;&nbsp;**$79.47** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.240 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.960 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.889 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.335 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.487 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14.394) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.486 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.525) | &nbsp;&nbsp;&nbsp;&nbsp;11.379 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.934 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12.154) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.446 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.636) | &nbsp;&nbsp;&nbsp;&nbsp;13.714 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.421 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.152) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.943) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.947) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.364) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.646) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.074) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.023) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.387) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.780) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.885) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.226) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.966) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.334) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.144) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.531) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;&nbsp;**$91.06** | &nbsp;&nbsp;&nbsp;**$106.44** | &nbsp;&nbsp;&nbsp;**$84.96** | &nbsp;&nbsp;&nbsp;**$93.93** | &nbsp;&nbsp;&nbsp;**$83.36** |
| **Total Return** | &nbsp;&nbsp;&nbsp;**-11.25%** | &nbsp;&nbsp;&nbsp;**28.88%** | &nbsp;&nbsp;&nbsp;**-5.80%** | &nbsp;&nbsp;&nbsp;**16.70%** | &nbsp;&nbsp;&nbsp;**9.70%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$36825 | &nbsp;&nbsp;&nbsp;$46673 | &nbsp;&nbsp;&nbsp;$32064 | &nbsp;&nbsp;&nbsp;$37682 | &nbsp;&nbsp;&nbsp;$30857 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.12%<sup>2</sup> | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.12% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;2.38% | &nbsp;&nbsp;&nbsp;1.90% | &nbsp;&nbsp;&nbsp;2.33% | &nbsp;&nbsp;&nbsp;2.60% | &nbsp;&nbsp;&nbsp;3.15% |
| Portfolio Turnover Rate<sup>3</sup> | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;8% | &nbsp;&nbsp;&nbsp;6% | &nbsp;&nbsp;&nbsp;24% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
| 3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Admiral Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$150.85** | &nbsp;&nbsp;&nbsp;**$120.40** | &nbsp;&nbsp;&nbsp;**$133.12** | &nbsp;&nbsp;&nbsp;**$118.14** | &nbsp;&nbsp;&nbsp;**$112.63** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.201 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.761 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.677 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.315 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.507 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20.428) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.890 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10.672) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.121 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.008 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17.227) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.651 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7.995) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.436 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.515 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.050) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.770) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.759) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.350) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.751) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.523) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.431) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.966) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.106) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.254) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.573) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.201) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.725) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4.456) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.005) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$129.05** | &nbsp;&nbsp;&nbsp;**$150.85** | &nbsp;&nbsp;&nbsp;**$120.40** | &nbsp;&nbsp;&nbsp;**$133.12** | &nbsp;&nbsp;&nbsp;**$118.14** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**-11.26%** | &nbsp;&nbsp;&nbsp;**28.91%** | &nbsp;&nbsp;&nbsp;**-5.74%** | &nbsp;&nbsp;&nbsp;**16.73%** | &nbsp;&nbsp;&nbsp;**9.69%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$22110 | &nbsp;&nbsp;&nbsp;$25764 | &nbsp;&nbsp;&nbsp;$19702 | &nbsp;&nbsp;&nbsp;$23274 | &nbsp;&nbsp;&nbsp;$18223 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.12%<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.12% | &nbsp;&nbsp;&nbsp;0.11% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;2.41% | &nbsp;&nbsp;&nbsp;1.90% | &nbsp;&nbsp;&nbsp;2.33% | &nbsp;&nbsp;&nbsp;2.60% | &nbsp;&nbsp;&nbsp;3.16% |
| Portfolio Turnover Rate<sup>4</sup> | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;8% | &nbsp;&nbsp;&nbsp;6% | &nbsp;&nbsp;&nbsp;24% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
| 4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Institutional Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$23.35** | &nbsp;&nbsp;&nbsp;**$18.64** | &nbsp;&nbsp;&nbsp;**$20.60** | &nbsp;&nbsp;&nbsp;**$18.28** | &nbsp;&nbsp;&nbsp;**$17.43** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.432 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.421 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.518 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.543 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.168) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.933 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.646) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.496 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.085 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.668) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.365 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.225) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.014 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.628 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.475) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.432) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.429) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.522) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.583) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.237) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.223) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.306) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.172) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.195) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.712) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.655) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.735) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.694) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.778) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$19.97** | &nbsp;&nbsp;&nbsp;**$23.35** | &nbsp;&nbsp;&nbsp;**$18.64** | &nbsp;&nbsp;&nbsp;**$20.60** | &nbsp;&nbsp;&nbsp;**$18.28** |
| **Total Return** | &nbsp;&nbsp;&nbsp;**-11.27%** | &nbsp;&nbsp;&nbsp;**28.91%** | &nbsp;&nbsp;&nbsp;**-5.68%** | &nbsp;&nbsp;&nbsp;**16.77%** | &nbsp;&nbsp;&nbsp;**9.70%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$10610 | &nbsp;&nbsp;&nbsp;$12089 | &nbsp;&nbsp;&nbsp;$9478 | &nbsp;&nbsp;&nbsp;$10027 | &nbsp;&nbsp;&nbsp;$8206 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.10%<sup>2</sup> | &nbsp;&nbsp;&nbsp;0.10% | &nbsp;&nbsp;&nbsp;0.10% | &nbsp;&nbsp;&nbsp;0.10% | &nbsp;&nbsp;&nbsp;0.09% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;2.43% | &nbsp;&nbsp;&nbsp;1.92% | &nbsp;&nbsp;&nbsp;2.37% | &nbsp;&nbsp;&nbsp;2.63% | &nbsp;&nbsp;&nbsp;3.18% |
| Portfolio Turnover Rate<sup>3</sup> | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;7% | &nbsp;&nbsp;&nbsp;8% | &nbsp;&nbsp;&nbsp;6% | &nbsp;&nbsp;&nbsp;24% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
| 3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Notes to Financial Statements

Vanguard Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.

As a part of its principal investment strategy, the fund attempts to replicate its benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through a wholly owned subsidiary—in the stocks that make up the index. Vanguard Real Estate II Index Fund is the wholly owned subsidiary in which the fund has invested a portion of its assets. For additional financial information about the Real Estate II Index Fund, refer to the accompanying financial statements.

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in affiliated Vanguard funds are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund's target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund's maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty's default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the year ended January 31, 2023, the fund's average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings.

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management's estimates of such amounts for REIT distributions for which actual information has not been reported. Income, capital gain, and return of capital distributions received from affiliated Vanguard funds are recorded on ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $2,082,000, representing less than 0.01% of the fund's net assets and 0.83% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

C. The fund's custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended January 31, 2023, custodian fee offset arrangements reduced the fund's expenses by $95,000 (an annual rate of less than 0.01% of average net assets).

D. Various inputs may be used to determine the value of the fund's investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments and derivatives as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks | 69224698 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;69224712 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399890 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399890 |
| Total | 69624588 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;69624602 |
| **Derivative Financial Instruments** |  |  |  |  |
| Assets |  |  |  |  |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;30997 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30997 |

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

E. Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable in-kind redemptions and swap agreements were reclassified between the following accounts:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Paid-in Capital | &nbsp;&nbsp;&nbsp;&nbsp;3137196 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;(3137196) |

---

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; the deferral of income from real estate investment trusts; and the recognition of unrealized gains or losses from certain derivative contracts. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp;3729779 |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;(2572771) |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Other Temporary Differences | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;179644 |
| Total | &nbsp;&nbsp;&nbsp;&nbsp;1336652 |

---

The tax character of distributions paid was as follows:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;1667787 | &nbsp;&nbsp;&nbsp;&nbsp;1500177 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;832796 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;773321 |
| Total | &nbsp;&nbsp;&nbsp;2500583 | &nbsp;&nbsp;&nbsp;&nbsp;2273498 |

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\* Includes short-term capital gains, if any.

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

As of January 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;65894823 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;11273876 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(7544097) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;3729779 |

---

F. During the year ended January 31, 2023, the fund purchased $11,858,060,000 of investment securities and sold $14,892,200,000 of investment securities, other than temporary cash investments. Purchases and sales include $6,055,352,000 and $9,385,117,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended January 31, 2023, such purchases were $15,414,000 and sales were $4,383,000, resulting in net realized loss of $361,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G. Capital share transactions for each class of shares were:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **Investor Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12156 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40853 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1192 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4774 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;163 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5511 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;161 |
| Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;(58357) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1875) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(81477) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2463) |
| Net Increase (Decrease)—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(41427) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1334) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35113) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1110) |
| **ETF Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;6166911 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65225 | &nbsp;&nbsp;12323320 | &nbsp;&nbsp;&nbsp;&nbsp;119786 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Redeemed | (9213809) | &nbsp;&nbsp;&nbsp;&nbsp;(99300) | &nbsp;&nbsp;(6070834) | &nbsp;&nbsp;&nbsp;&nbsp;(58700) |
| Net Increase (Decrease)—ETF Shares | (3046898) | &nbsp;&nbsp;&nbsp;&nbsp;(34075) | &nbsp;&nbsp;&nbsp;&nbsp;6252486 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61086 |
| **Admiral Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;2666411 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20054 | &nbsp;&nbsp;&nbsp;&nbsp;4265102 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29377 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;682639 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5494 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;616726 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4188 |
| Redeemed | (3314518) | &nbsp;&nbsp;&nbsp;&nbsp;(25007) | &nbsp;&nbsp;(3829240) | &nbsp;&nbsp;&nbsp;&nbsp;(26405) |
| Net Increase (Decrease)—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34532 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;541 | &nbsp;&nbsp;&nbsp;&nbsp;1052588 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7160 |

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **Institutional Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;2009244 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97409 | &nbsp;&nbsp;&nbsp;&nbsp;2230405 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98845 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;357630 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18606 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;311998 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13695 |
| Redeemed | (2060111) | &nbsp;&nbsp;(102593) | &nbsp;&nbsp;(2320764) | &nbsp;&nbsp;(103325) |
| Net Increase (Decrease)—Institutional Shares | &nbsp;&nbsp;&nbsp;&nbsp;306763 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13422 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221639 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9215 |

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[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate Index Fund

H. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;Current Period Transactions | &nbsp;&nbsp;Current Period Transactions | &nbsp;&nbsp;Current Period Transactions | &nbsp;&nbsp;Current Period Transactions | &nbsp;&nbsp;Current Period Transactions | &nbsp;&nbsp;Current Period Transactions |  |
|  | Jan. 31, 2022<br> Market Value<br> ($000) | &nbsp;&nbsp;Purchases<br> at Cost<br> ($000) | Proceeds<br> from<br> Securities<br> Sold<sup>1</sup><br> ($000) | Realized<br> Net Gain<br> (Loss)<br> ($000) | Change in<br> Unrealized<br> App. (Dep.)<br> ($000) | Income<br> ($000) | Capital Gain<br> Distributions<br> Received<br> ($000) | Jan. 31, 2023<br> Market Value<br> ($000) |
| Easterly Government Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;90343 | &nbsp;&nbsp;&nbsp;&nbsp;13288 | &nbsp;&nbsp;&nbsp;22120 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(553) | &nbsp;&nbsp;&nbsp;&nbsp;(16183) | &nbsp;&nbsp;&nbsp;&nbsp;1997 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> |
| Equity Commonwealth | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>3</sup> | &nbsp;&nbsp;&nbsp;&nbsp;20421 | &nbsp;&nbsp;&nbsp;43382 | &nbsp;&nbsp;&nbsp;(2063) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64 | &nbsp;&nbsp;&nbsp;&nbsp;5071 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> |
| Hudson Pacific Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>3</sup> | &nbsp;&nbsp;&nbsp;&nbsp;16823 | &nbsp;&nbsp;&nbsp;30465 | (18155) | &nbsp;&nbsp;&nbsp;&nbsp;(68244) | &nbsp;&nbsp;&nbsp;&nbsp;6832 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> |
| Vanguard Market Liquidity Fund | &nbsp;&nbsp;&nbsp;147613 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55 | &nbsp;&nbsp;&nbsp;&nbsp;6278 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;399890 |
| Vanguard Real Estate II Index Fund | 9542041 | &nbsp;&nbsp;337315 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (1360121) | 198144 | 90589 | 8471187 |
| VICI Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>3,5</sup> | &nbsp;&nbsp;594465 | 424164 | &nbsp;&nbsp;62419 | &nbsp;&nbsp;&nbsp;&nbsp;212541 | &nbsp;&nbsp;&nbsp;54845 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NA<sup>2</sup> |
| Total | 9779997 | &nbsp;&nbsp;982312 | 520131 | &nbsp;&nbsp;41663 | (1231888) | 273167 | 90591 | 8871077 |

---

---

| | |
|:---|:---|
| 1 | Does not include adjustments related to return of capital. |
| 2 | Not applicable—at January 31, 2023, the security was still held, but the issuer was no longer an affiliated company of the fund. |
| 3 | Not applicable—at January 31, 2022, the issuer was not an affiliated company of the fund. |
| 4 | Not applicable—purchases and sales are for temporary cash investment purposes. |
| 5 | Not applicable—in April 2022, VICI Properties Inc. acquired MGM Growth Properties LLC. |

---

I. Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: September 26, 2017, Through January 31, 2023
Initial Investment of $100,000,000

![](tm234052d2reitindexarq12i006.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Since<br> Inception<br> (9/26/2017) | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $100,000,000<br> Investment |
| ![](tm234052d2reitindexarq12i003.jpg) | &nbsp;&nbsp;&nbsp;Real Estate II Index Fund | &nbsp;&nbsp;&nbsp;-11.23% | &nbsp;&nbsp;&nbsp;&nbsp;6.70% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.67% | &nbsp;&nbsp;&nbsp;&nbsp;$134285670 |
| ![](tm234052d2reitindexarq12i004.jpg) | &nbsp;&nbsp;&nbsp;Real Estate Spliced Index | &nbsp;&nbsp;&nbsp;-11.15 | &nbsp;&nbsp;&nbsp;&nbsp;6.77 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.74 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;134763810 |
| ![](tm234052d2reitindexarq12i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;10.92 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;174033800 |

---

Real Estate Spliced Index: MSCI US REIT Index through February 1, 2018; MSCI US Investable Market Real Estate 25/50 Transition Index through July 24, 2018; MSCI US Investable Market Real Estate 25/50 Index thereafter.

"Since Inception" performance is calculated from the fund's inception date for both the fund and its comparative standard(s).

See Financial Highlights for dividend and capital gains information.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| Diversified Real Estate Activities | &nbsp;&nbsp;&nbsp;0.2% |
| Diversified REITs | &nbsp;&nbsp;&nbsp;2.9 |
| Health Care REITs | &nbsp;&nbsp;&nbsp;7.9 |
| Hotel & Resort REITs | &nbsp;&nbsp;&nbsp;2.8 |
| Industrial REITs | 12.4 |
| Office REITs | &nbsp;&nbsp;&nbsp;5.5 |
| Real Estate Development | &nbsp;&nbsp;&nbsp;0.3 |
| Real Estate Operating Companies | &nbsp;&nbsp;&nbsp;0.4 |
| Real Estate Services | &nbsp;&nbsp;&nbsp;4.1 |
| Residential REITs | 13.6 |
| Retail REITs | 12.6 |
| Specialized REITs | 37.3 |

---

The table reflects the fund's investments, except for short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard ("GICS"), except for the "Other" category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.

The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard and Poor's, a division of McGraw-Hill Companies, Inc. ("S&P"), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **Equity Real Estate Investment Trusts (REITs) (94.9%)** | **Equity Real Estate Investment Trusts (REITs) (94.9%)** | **Equity Real Estate Investment Trusts (REITs) (94.9%)** | **Equity Real Estate Investment Trusts (REITs) (94.9%)** |
| **Diversified REITs (2.9%)** | **Diversified REITs (2.9%)** | **Diversified REITs (2.9%)** | **Diversified REITs (2.9%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;WP Carey Inc. | 1222290 | &nbsp;&nbsp; 104542 |
| | &nbsp;&nbsp;&nbsp;&nbsp;STORE Capital Corp. | &nbsp;&nbsp;1612144 | &nbsp;&nbsp;&nbsp;&nbsp;51927 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Essential Properties Realty Trust Inc. | &nbsp;&nbsp; 895719 | &nbsp;&nbsp;&nbsp;&nbsp;22823 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Broadstone Net Lease Inc. | &nbsp;&nbsp;1097179 | &nbsp;&nbsp; 19870 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Global Net Lease Inc. | &nbsp;&nbsp;&nbsp;&nbsp;659032 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9853 |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Assets Trust Inc. | &nbsp;&nbsp; 326198 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9284 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexander & Baldwin Inc. | &nbsp;&nbsp; 461014 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9229 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Empire State Realty Trust Inc. Class A | &nbsp;&nbsp; 876755 | &nbsp;&nbsp; 7312 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Armada Hoffler Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;428464 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5433 |
| | &nbsp;&nbsp;&nbsp;&nbsp;iStar Inc. | &nbsp;&nbsp;&nbsp;&nbsp;541478 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5025 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gladstone Commercial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;250489 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4256 |
| | &nbsp;&nbsp;&nbsp;&nbsp;NexPoint Diversified Real Estate Trust | &nbsp;&nbsp;&nbsp;&nbsp;200024 | &nbsp;&nbsp; 2618 |
| | &nbsp;&nbsp;&nbsp;&nbsp;One Liberty Properties Inc. | &nbsp;&nbsp; 106880 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2577 |
|  |  |  | &nbsp;&nbsp; **254749** |
| **Health Care REITs (7.9%)** | **Health Care REITs (7.9%)** | **Health Care REITs (7.9%)** | **Health Care REITs (7.9%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Welltower Inc. | 2936055 | &nbsp;&nbsp;&nbsp;&nbsp;220322 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Ventas Inc. | 2532696 | &nbsp;&nbsp; 131219 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Healthpeak Properties Inc. | &nbsp;&nbsp;3419232 | &nbsp;&nbsp;&nbsp;&nbsp;93960 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Healthcare Realty Trust Inc. Class A | &nbsp;&nbsp;2411439 | &nbsp;&nbsp; 51918 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Medical Properties Trust Inc. | 3795895 | &nbsp;&nbsp; 49157 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Omega Healthcare Investors Inc. | 1483327 | &nbsp;&nbsp;&nbsp;&nbsp;43669 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Physicians Realty Trust | 1435547 | &nbsp;&nbsp; 22768 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Sabra Health Care REIT Inc. | 1463753 | &nbsp;&nbsp; 19761 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Health Investors Inc. | &nbsp;&nbsp; 282818 | &nbsp;&nbsp; 16638 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CareTrust REIT Inc. | &nbsp;&nbsp; 614701 | &nbsp;&nbsp; 12737 |
| | &nbsp;&nbsp;&nbsp;&nbsp;LTC Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;256575 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9788 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Community Healthcare Trust Inc. | &nbsp;&nbsp; 151103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6479 |

---

---

| | | |
|:---|:---|:---|
|  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Universal Health Realty Income Trust | &nbsp;&nbsp;&nbsp;&nbsp;83070 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Global Medical REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;394880 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4435 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diversified Healthcare Trust | &nbsp;&nbsp;1510063 | &nbsp;&nbsp; 1195 |
|  |  | &nbsp;&nbsp; **688599** |
| **Hotel & Resort REITs (2.8%)** | **Hotel & Resort REITs (2.8%)** | **Hotel & Resort REITs (2.8%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Host Hotels & Resorts Inc. | 4529546 | &nbsp;&nbsp;&nbsp;&nbsp;85382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ryman Hospitality Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;332092 | &nbsp;&nbsp;&nbsp;&nbsp;30848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Apple Hospitality REIT Inc. | &nbsp;&nbsp;1377563 | &nbsp;&nbsp;&nbsp;&nbsp;24424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Park Hotels & Resorts Inc. | 1026200 | &nbsp;&nbsp; 15095 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sunstone Hotel Investors Inc. | &nbsp;&nbsp;1344618 | &nbsp;&nbsp; 14777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pebblebrook Hotel Trust | &nbsp;&nbsp;&nbsp;&nbsp;832720 | &nbsp;&nbsp; 13657 |
| &nbsp;&nbsp;&nbsp;&nbsp;RLJ Lodging Trust | 1030971 | &nbsp;&nbsp; 12959 |
| &nbsp;&nbsp;&nbsp;&nbsp;DiamondRock Hospitality Co. | &nbsp;&nbsp;1336171 | &nbsp;&nbsp; 12867 |
| &nbsp;&nbsp;&nbsp;&nbsp;Xenia Hotels & Resorts Inc. | &nbsp;&nbsp;&nbsp;&nbsp;724666 | &nbsp;&nbsp; 10798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service Properties Trust | 1045623 | &nbsp;&nbsp; 9317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Summit Hotel Properties Inc. | &nbsp;&nbsp; 676855 | &nbsp;&nbsp; 5767 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chatham Lodging Trust | &nbsp;&nbsp; 294311 | &nbsp;&nbsp; 4182 |
|  |  | &nbsp;&nbsp; **240073** |
| **Industrial REITs (12.4%)** | **Industrial REITs (12.4%)** | **Industrial REITs (12.4%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Prologis Inc. | 5848437 | &nbsp;&nbsp;&nbsp;&nbsp;756086 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rexford Industrial Realty Inc. | &nbsp;&nbsp;1083911 | &nbsp;&nbsp;&nbsp;&nbsp;68796 |
| &nbsp;&nbsp;&nbsp;&nbsp;EastGroup Properties Inc. | &nbsp;&nbsp; 276035 | &nbsp;&nbsp;&nbsp;&nbsp;46443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Americold Realty Trust Inc. | &nbsp;&nbsp;1457078 | &nbsp;&nbsp; 45767 |
| &nbsp;&nbsp;&nbsp;&nbsp;First Industrial Realty Trust Inc. | &nbsp;&nbsp; 836745 | &nbsp;&nbsp;&nbsp;&nbsp;44640 |
| &nbsp;&nbsp;&nbsp;&nbsp;STAG Industrial Inc. | &nbsp;&nbsp;1135488 | &nbsp;&nbsp;&nbsp;&nbsp;40423 |
| &nbsp;&nbsp;&nbsp;&nbsp;Terreno Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;478790 | &nbsp;&nbsp;&nbsp;&nbsp;30848 |
| &nbsp;&nbsp;&nbsp;&nbsp;LXP Industrial Trust | &nbsp;&nbsp;1773744 | &nbsp;&nbsp;&nbsp;&nbsp;20487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Innovative Industrial Properties Inc. | &nbsp;&nbsp; 177341 | &nbsp;&nbsp; 15922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plymouth Industrial REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;253867 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial Logistics Properties Trust | &nbsp;&nbsp; 416776 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1838 |
|  |  | &nbsp;&nbsp;**1076932** |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Shares** | &nbsp;&nbsp;**Market<br> Value• ($000)** |
| **Office REITs (5.5%)** | **Office REITs (5.5%)** | **Office REITs (5.5%)** | **Office REITs (5.5%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexandria Real Estate Equities Inc. | &nbsp;&nbsp; 982123 | &nbsp;&nbsp; 157866 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Boston Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;943551 | &nbsp;&nbsp; 70332 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kilroy Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;666203 | &nbsp;&nbsp; 27341 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Cousins Properties Inc. | &nbsp;&nbsp; 959195 | &nbsp;&nbsp; 26301 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Vornado Realty Trust | 1032690 | &nbsp;&nbsp; 25187 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Highwoods Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;666545 | &nbsp;&nbsp; 20243 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Corporate Office Properties Trust | &nbsp;&nbsp; 712501 | &nbsp;&nbsp;&nbsp;&nbsp;20000 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Douglas Emmett Inc. | &nbsp;&nbsp;&nbsp;1114112 | &nbsp;&nbsp; 18661 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity Commonwealth | &nbsp;&nbsp; 705107 | &nbsp;&nbsp; 17994 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;SL Green Realty Corp. | &nbsp;&nbsp; 407189 | &nbsp;&nbsp; 16756 |
| | &nbsp;&nbsp;&nbsp;&nbsp;JBG SMITH Properties | &nbsp;&nbsp; 653519 | &nbsp;&nbsp; 13162 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Hudson Pacific Properties Inc. | &nbsp;&nbsp; 897852 | &nbsp;&nbsp; 10227 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Easterly Government Properties Inc. Class A | &nbsp;&nbsp; 546152 | &nbsp;&nbsp; 8870 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Veris Residential Inc. | &nbsp;&nbsp;&nbsp;&nbsp;490802 | &nbsp;&nbsp; 8491 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Piedmont Office Realty Trust Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;781797 | &nbsp;&nbsp; 8287 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Paramount Group Inc. | &nbsp;&nbsp;1143174 | &nbsp;&nbsp;&nbsp; 7374 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Brandywine Realty Trust | 1084906 | &nbsp;&nbsp;&nbsp; 7117 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Office Properties Income Trust | &nbsp;&nbsp;&nbsp;&nbsp;306675 | &nbsp;&nbsp; 5263 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Orion Office REIT Inc. | &nbsp;&nbsp; 357915 | &nbsp;&nbsp; 3454 |
| | &nbsp;&nbsp;&nbsp;&nbsp;City Office REIT Inc. | &nbsp;&nbsp;&nbsp;&nbsp;263546 | &nbsp;&nbsp; 2593 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Franklin Street Properties Corp. | &nbsp;&nbsp; 590918 | &nbsp;&nbsp; 1820 |
|  |  |  | &nbsp;&nbsp; **477339** |
| **Residential REITs (13.6%)** | **Residential REITs (13.6%)** | **Residential REITs (13.6%)** | **Residential REITs (13.6%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;AvalonBay Communities Inc. | &nbsp;&nbsp;&nbsp;&nbsp;885998 | &nbsp;&nbsp;&nbsp; 157211 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity Residential | &nbsp;&nbsp;2264001 | &nbsp;&nbsp; 144104 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Invitation Homes Inc. | &nbsp;&nbsp;3867562 | &nbsp;&nbsp; 125696 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Sun Communities Inc. | &nbsp;&nbsp;&nbsp;&nbsp;781453 | &nbsp;&nbsp; 122579 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Mid-America Apartment Communities Inc. | &nbsp;&nbsp;&nbsp;&nbsp;731459 | &nbsp;&nbsp; 121949 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Essex Property Trust Inc. | &nbsp;&nbsp; 412599 | &nbsp;&nbsp; 93276 |
| | &nbsp;&nbsp;&nbsp;&nbsp;UDR Inc. | &nbsp;&nbsp;2058674 | &nbsp;&nbsp; 87679 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equity LifeStyle Properties Inc. | &nbsp;&nbsp;1120051 | &nbsp;&nbsp; 80397 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Camden Property Trust | &nbsp;&nbsp; 641214 | &nbsp;&nbsp;&nbsp;&nbsp;79004 |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Homes 4 Rent Class A | 1982924 | &nbsp;&nbsp; 67994 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Apartment Income REIT Corp. Class A | &nbsp;&nbsp; 976919 | &nbsp;&nbsp; 37377 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Independence Realty Trust Inc. | 1408056 | &nbsp;&nbsp; 26514 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Elme Communities | &nbsp;&nbsp; 553414 | &nbsp;&nbsp; 10626 |
| | &nbsp;&nbsp;&nbsp;&nbsp;NexPoint Residential Trust Inc. | &nbsp;&nbsp; 146387 | &nbsp;&nbsp; 7392 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Apartment Investment & Management Co. Class A | &nbsp;&nbsp;&nbsp;&nbsp;964549 | &nbsp;&nbsp; 7244 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;Centerspace | &nbsp;&nbsp; 97523 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6594 |
| | &nbsp;&nbsp;&nbsp;&nbsp;UMH Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;331073 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5933 |
|  |  |  | &nbsp;&nbsp;**1181569** |
| **Retail REITs (12.6%)** | **Retail REITs (12.6%)** | **Retail REITs (12.6%)** | **Retail REITs (12.6%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;Simon Property Group Inc. | &nbsp;&nbsp;2074197 | &nbsp;&nbsp;&nbsp;&nbsp;266451 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Realty Income Corp. | &nbsp;&nbsp;3913115 | &nbsp;&nbsp;&nbsp;&nbsp;265427 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kimco Realty Corp. | &nbsp;&nbsp;3919129 | &nbsp;&nbsp;&nbsp;&nbsp;88024 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Regency Centers Corp. | &nbsp;&nbsp; 975762 | &nbsp;&nbsp; 65015 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Retail Properties Inc. | &nbsp;&nbsp;1122346 | &nbsp;&nbsp; 53143 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Federal Realty Investment Trust | &nbsp;&nbsp;&nbsp;&nbsp;461506 | &nbsp;&nbsp;&nbsp;&nbsp;51472 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Brixmor Property Group Inc. | 1898578 | &nbsp;&nbsp; 44674 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Spirit Realty Capital Inc. | &nbsp;&nbsp;&nbsp;&nbsp;863856 | &nbsp;&nbsp; 37906 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Agree Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;505859 | &nbsp;&nbsp; 37752 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kite Realty Group Trust | 1388585 | &nbsp;&nbsp; 30132 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Phillips Edison & Co. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;739322 | &nbsp;&nbsp;&nbsp;&nbsp;24782 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Macerich Co. | 1361425 | &nbsp;&nbsp; 18706 |
| | &nbsp;&nbsp;&nbsp;&nbsp;SITE Centers Corp. | &nbsp;&nbsp;1221116 | &nbsp;&nbsp; 16668 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Tanger Factory Outlet Centers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;661005 | &nbsp;&nbsp; 12632 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Retail Opportunity Investments Corp. | &nbsp;&nbsp;&nbsp;&nbsp;789232 | &nbsp;&nbsp; 12494 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Urban Edge Properties | &nbsp;&nbsp; 744040 | &nbsp;&nbsp; 11719 |
| | &nbsp;&nbsp;&nbsp;&nbsp;InvenTrust Properties Corp. | &nbsp;&nbsp;&nbsp;&nbsp;426949 | &nbsp;&nbsp; 10618 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Acadia Realty Trust | &nbsp;&nbsp; 601824 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9346 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Getty Realty Corp. | &nbsp;&nbsp;&nbsp;&nbsp;251894 | &nbsp;&nbsp; 9176 |
| | &nbsp;&nbsp;&nbsp;&nbsp;NETSTREIT Corp. | &nbsp;&nbsp; 318416 | &nbsp;&nbsp; 6410 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Necessity Retail REIT Inc. Class A | &nbsp;&nbsp; 843319 | &nbsp;&nbsp; 5760 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RPT Realty | &nbsp;&nbsp;&nbsp;&nbsp;538528 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5644 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Saul Centers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;90858 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3890 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Urstadt Biddle Properties Inc. Class A | &nbsp;&nbsp; 191345 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3593 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Alexander's Inc. | &nbsp;&nbsp; 14595 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3463 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CBL & Associates Properties Inc. | &nbsp;&nbsp;&nbsp;&nbsp;80280 | &nbsp;&nbsp; 2139 |
| <sup>\*,2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Spirit MTA REIT | &nbsp;&nbsp; 257871 | &nbsp;&nbsp; — |
|  |  |  | &nbsp;&nbsp;**1097036** |
| **Specialized REITs (37.2%)** | **Specialized REITs (37.2%)** | **Specialized REITs (37.2%)** | **Specialized REITs (37.2%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;American Tower Corp. | &nbsp;&nbsp;2950127 | &nbsp;&nbsp;&nbsp;&nbsp;659029 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Equinix Inc. | &nbsp;&nbsp; 577084 | &nbsp;&nbsp;&nbsp;&nbsp;425963 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Crown Castle Inc. | &nbsp;&nbsp;2743886 | &nbsp;&nbsp;&nbsp;&nbsp;406397 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Public Storage | &nbsp;&nbsp;1001058 | &nbsp;&nbsp;&nbsp;&nbsp;304662 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Digital Realty Trust Inc. | &nbsp;&nbsp;1821104 | &nbsp;&nbsp;&nbsp;&nbsp;208735 |
| | &nbsp;&nbsp;&nbsp;&nbsp;VICI Properties Inc. Class A | &nbsp;&nbsp;6102367 | &nbsp;&nbsp;&nbsp;&nbsp;208579 |
| | &nbsp;&nbsp;&nbsp;&nbsp;SBA Communications Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;683548 | &nbsp;&nbsp; 203376 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Weyerhaeuser Co. | 4690809 | &nbsp;&nbsp; 161505 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Extra Space Storage Inc. | &nbsp;&nbsp;&nbsp;&nbsp;848508 | &nbsp;&nbsp; 133920 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Iron Mountain Inc. | 1841970 | &nbsp;&nbsp; 100535 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gaming & Leisure Properties Inc. | &nbsp;&nbsp;1626169 | &nbsp;&nbsp; 87098 |
| | &nbsp;&nbsp;&nbsp;&nbsp;CubeSmart | &nbsp;&nbsp;1422150 | &nbsp;&nbsp; 65120 |

---

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| | &nbsp;&nbsp;&nbsp;&nbsp;Lamar Advertising Co. Class A | &nbsp;&nbsp;&nbsp;&nbsp;552007 | &nbsp;&nbsp; 58811 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Life Storage Inc. | &nbsp;&nbsp; 534715 | &nbsp;&nbsp; 57771 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Rayonier Inc. | &nbsp;&nbsp; 927884 | &nbsp;&nbsp; 33766 |
| | &nbsp;&nbsp;&nbsp;&nbsp;PotlatchDeltic Corp. | &nbsp;&nbsp; 510642 | &nbsp;&nbsp;&nbsp;&nbsp;24996 |
| | &nbsp;&nbsp;&nbsp;&nbsp;National Storage Affiliates Trust | &nbsp;&nbsp;&nbsp;&nbsp;552342 | &nbsp;&nbsp;&nbsp;&nbsp;22535 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;EPR Properties | &nbsp;&nbsp;&nbsp;&nbsp;475386 | &nbsp;&nbsp; 20194 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Outfront Media Inc. | &nbsp;&nbsp;&nbsp;&nbsp;882979 | &nbsp;&nbsp; 17571 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Four Corners Property Trust Inc. | &nbsp;&nbsp; 516003 | &nbsp;&nbsp; 14840 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Uniti Group Inc. | 1504029 | &nbsp;&nbsp; 9911 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Safehold Inc. | &nbsp;&nbsp; 156502 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5471 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Gladstone Land Corp. | &nbsp;&nbsp; 206103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4027 |
|  |  |  | &nbsp;&nbsp;**3234812** |
| **Total Equity Real Estate Investment Trusts (REITs) (Cost $7,046,202)** | **Total Equity Real Estate Investment Trusts (REITs) (Cost $7,046,202)** | **Total Equity Real Estate Investment Trusts (REITs) (Cost $7,046,202)** | **8251109** |
| **Real Estate Management & Development (4.9%)** | **Real Estate Management & Development (4.9%)** | **Real Estate Management & Development (4.9%)** | **Real Estate Management & Development (4.9%)** |
| **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** | **Diversified Real Estate Activities (0.1%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;St. Joe Co. | &nbsp;&nbsp;&nbsp;&nbsp;205390 | &nbsp;&nbsp; 9674 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RMR Group Inc. Class A | &nbsp;&nbsp; 98011 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3040 |
|  |  |  | &nbsp;&nbsp; **12714** |
| **Real Estate Development (0.3%)** | **Real Estate Development (0.3%)** | **Real Estate Development (0.3%)** | **Real Estate Development (0.3%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Howard Hughes Corp. | &nbsp;&nbsp; 237215 | &nbsp;&nbsp;&nbsp;&nbsp;20280 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Forestar Group Inc. | &nbsp;&nbsp; 125880 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1873 |
|  |  |  | &nbsp;&nbsp; **22153** |
| **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** | **Real Estate Operating Companies (0.4%)** |
| | &nbsp;&nbsp;&nbsp;&nbsp;DigitalBridge Group Inc. | 1038243 | &nbsp;&nbsp; 15366 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Kennedy-Wilson Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;785464 | &nbsp;&nbsp; 14044 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Seritage Growth Properties Class A | &nbsp;&nbsp; 230514 | &nbsp;&nbsp; 2801 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;FRP Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;38782 | &nbsp;&nbsp; 2178 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;WeWork Inc. | &nbsp;&nbsp;1130344 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1797 |
|  |  |  | &nbsp;&nbsp; **36186** |
| **Real Estate Services (4.1%)** | **Real Estate Services (4.1%)** | **Real Estate Services (4.1%)** | **Real Estate Services (4.1%)** |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;CBRE Group Inc. Class A | 2035540 | &nbsp;&nbsp; 174059 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Jones Lang LaSalle Inc. | &nbsp;&nbsp;&nbsp;&nbsp;303629 | &nbsp;&nbsp; 56132 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Zillow Group Inc. Class C | 1005072 | &nbsp;&nbsp;&nbsp;&nbsp;44434 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Zillow Group Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;372098 | &nbsp;&nbsp; 15985 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Cushman & Wakefield plc | &nbsp;&nbsp;&nbsp;&nbsp;929688 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13415 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Newmark Group Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;998822 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8560 |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;eXp World Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;432629 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6745 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Anywhere Real Estate Inc. | &nbsp;&nbsp;&nbsp;&nbsp;724552 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6144 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Compass Inc. Class A | &nbsp;&nbsp;1506201 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6055 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Marcus & Millichap Inc. | &nbsp;&nbsp; 164344 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5956 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Opendoor Technologies Inc. | 2593429 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5680 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Redfin Corp. | &nbsp;&nbsp; 617367 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4618 |
| | &nbsp;&nbsp;&nbsp;&nbsp;RE/MAX Holdings Inc. Class A | &nbsp;&nbsp; 119118 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2717 |
| | &nbsp;&nbsp;&nbsp;&nbsp;Douglas Elliman Inc. | &nbsp;&nbsp;&nbsp;&nbsp;461492 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2150 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Doma Holdings Inc. | &nbsp;&nbsp; 719697 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 511 |
| <sup>\*,1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Offerpad Solutions Inc. | &nbsp;&nbsp; 357193 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 328 |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **353489** |
| **Total Real Estate Management & Development (Cost $508,696)** | **Total Real Estate Management & Development (Cost $508,696)** | **Total Real Estate Management & Development (Cost $508,696)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**424542** |
| **Temporary Cash Investments (0.7%)** | **Temporary Cash Investments (0.7%)** | **Temporary Cash Investments (0.7%)** | **Temporary Cash Investments (0.7%)** |
| **Money Market Fund (0.7%)** | **Money Market Fund (0.7%)** | **Money Market Fund (0.7%)** | **Money Market Fund (0.7%)** |
| <sup>3,4</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Vanguard Market Liquidity Fund, 4.437%<br> **(Cost $58,760)** | &nbsp;&nbsp; 587679 | **58762** |
| **Total Investments (100.5%)<br> (Cost $7,613,658)** | **Total Investments (100.5%)<br> (Cost $7,613,658)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8734413** |
| **Other Assets and Liabilities—Net (-0.5%)** | **Other Assets and Liabilities—Net (-0.5%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(44578)** |
| **Net Assets (100%)** | **Net Assets (100%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8689835** |

---

Cost is in $000.

• See Note A in Notes to Financial Statements.

---

| | |
|:---|:---|
| \* | Non-income-producing security. |
| 1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $48,513,000. |
| 2 | Security value determined using significant unobservable inputs. |
| 3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 4 | Collateral of $51,019,000 was received for securities on loan. |

---

REIT—Real Estate Investment Trust.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

------

#### Derivative Financial Instruments Outstanding as of Period End

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps |
| Reference Entity | Termination<br> Date | Counterparty | Notional<br> Amount<br> ($000) | Floating<br> Interest<br> Rate<br> Received<br> (Paid)<sup>1</sup><br> (%) | Value and<br> Unrealized<br> Appreciation<br> ($000) | Value and<br> Unrealized<br> (Depreciation)<br> ($000) |
| Americold Realty Trust Inc. | 1/31/24 | GSI | 7853 | (4.557) |  |  |
| Park Hotels & Resorts Inc. | 1/31/24 | GSI | 5884 | (4.557) |  |  |

---

1 Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. <br> GSI—Goldman Sachs International.

At January 31, 2023, the counterparties had deposited in segregated accounts securities with a value of $992,000 in connection with open over-the-counter swap contracts.

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value<sup>1</sup> |  |
| &nbsp;&nbsp;Unaffiliated Issuers (Cost $7,554,898) | 8675651 |
| &nbsp;&nbsp;Affiliated Issuers (Cost $58,760) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58762 |
| Total Investments in Securities | 8734413 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;296 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6315 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7898 |
| **Total Assets** | **8748922** |
| **Liabilities** |  |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7344 |
| Collateral for Securities on Loan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51019 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;428 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;296 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**59087** |
| **Net Assets** | **8689835** |
| 1 Includes $48,513,000 of securities on loan. |  |
| <br> <br> **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | 7582685 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;1107150 |
| **Net Assets** | **8689835** |
| **Net Assets** |  |
| **Applicable to 397,480,558 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **8689835** |
| **Net Asset Value Per Share** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$21.86** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;218246 |
| Interest<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;235 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;218573 |
| **Expenses** |  |
| The Vanguard Group—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37 |
| Shareholders' Reports | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6857 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6848 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**211725** |
| **Realized Net Gain (Loss)** |  |
| Capital Gain Distributions Received | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48674 |
| Investment Securities Sold<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22717 |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1111) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**70280** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1336365) |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1336365)** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1054360)** |

---

---

| | |
|:---|:---|
| 1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $92,000, ($3000), and $2,000, respectively. Purchases and sales are for temporary cash investment purposes. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;211725 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176897 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70280 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53384 |
| Change in Unrealized Appreciation (Depreciation) | (1336365) | &nbsp;&nbsp;&nbsp;1912230 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1054360) | &nbsp;&nbsp;&nbsp;2142511 |
| **Distributions** |  |  |
| Net Investment Income and/or Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;(291773) | &nbsp;&nbsp;&nbsp;&nbsp;(186333) |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48996) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(76790) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;(340769) | &nbsp;&nbsp;&nbsp;&nbsp;(263123) |
| **Capital Share Transactions** |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;203267 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;340769 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263123 |
| Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1113) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;&nbsp;542923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263123 |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;(852206) | &nbsp;&nbsp;&nbsp;2142511 |
| **Net Assets** |  |  |
| **Beginning of Period** | &nbsp;&nbsp;**9542041** | &nbsp;&nbsp;&nbsp;**7399530** |
| **End of Period** | &nbsp;&nbsp;**8689835** | &nbsp;&nbsp;&nbsp;**9542041** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_84def593-61aa-4493-9a21-d523e7783cc7_TOCtm234052d2_reitindexarq1230)

Real Estate II Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$25.69** | &nbsp;&nbsp;&nbsp;**$20.50** | &nbsp;&nbsp;&nbsp;**$22.64** | &nbsp;&nbsp;&nbsp;**$20.10** | &nbsp;&nbsp;&nbsp;**$19.17** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.558 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.484 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.471 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.571 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.611 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.493) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.427 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.808) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.752 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.176 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.935) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.911 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.337) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.323 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.787 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.528) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.477) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.465) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.590) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.626) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.238) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.034) | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.129) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.210) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.338) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.193) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.231) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.895) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.721) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.803) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.783) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.857) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$21.86** | &nbsp;&nbsp;&nbsp;**$25.69** | &nbsp;&nbsp;&nbsp;**$20.50** | &nbsp;&nbsp;&nbsp;**$22.64** | &nbsp;&nbsp;&nbsp;**$20.10** |
| **Total Return** | &nbsp;&nbsp;&nbsp;**-11.23%** | &nbsp;&nbsp;&nbsp;**28.96%** | &nbsp;&nbsp;&nbsp;**-5.70%** | &nbsp;&nbsp;&nbsp;**16.78%** | &nbsp;&nbsp;&nbsp;**9.68%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$8690 | &nbsp;&nbsp;&nbsp;$9542 | &nbsp;&nbsp;&nbsp;$7400 | &nbsp;&nbsp;&nbsp;$7848 | &nbsp;&nbsp;&nbsp;$6719 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.08%<sup>2</sup> | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;2.47% | &nbsp;&nbsp;&nbsp;1.95% | &nbsp;&nbsp;&nbsp;2.41% | &nbsp;&nbsp;&nbsp;2.63% | &nbsp;&nbsp;&nbsp;3.22% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;5%<sup>3</sup> | &nbsp;&nbsp;&nbsp;6% | &nbsp;&nbsp;&nbsp;4% | &nbsp;&nbsp;&nbsp;3% | &nbsp;&nbsp;&nbsp;23% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%. |
| 3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

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Real Estate II Index Fund

Notes to Financial Statements

Vanguard Real Estate II Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund is a wholly owned subsidiary of Vanguard Real Estate Index Fund ("Real Estate Index Fund"), and at January 31, 2023, the Real Estate Index Fund was the record and beneficial owner of 97.5% of the fund's net assets. As part of the Real Estate Index Fund's principal investment strategy, it attempts to replicate the benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through the fund—in the stocks that make up the index.

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund's target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund's maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty's default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting

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arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the year ended January 31, 2023, the fund's average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities

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lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management's estimates of such amounts for REIT distributions for which actual information has not been reported. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

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Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $296,000, representing less than 0.01% of the fund's net assets and 0.12% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

C. The fund's custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended January 31, 2023, custodian fee offset arrangements reduced the fund's expenses by $9,000 (an annual rate of less than 0.01% of average net assets).

D. Various inputs may be used to determine the value of the fund's investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments and derivatives as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks | 8675651 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;8675651 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58762 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58762 |
| Total | 8734413 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;8734413 |
| **Derivative Financial Instruments** |  |  |  |  |
| Assets |  |  |  |  |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

---

E. Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable swap agreements and designation of dividends paid were reclassified between the individual components of total distributable earnings (loss).

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; and the deferral of

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income from real estate investment trusts. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;1081493 |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Other Temporary Differences | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25657 |
| Total | &nbsp;&nbsp;&nbsp;1107150 |

---

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;198902 | &nbsp;&nbsp;&nbsp;&nbsp;180753 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;92871 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5580 |
| Return of Capital | &nbsp;&nbsp;&nbsp;&nbsp;48996 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76790 |
| Total | &nbsp;&nbsp;&nbsp;340769 | &nbsp;&nbsp;&nbsp;&nbsp;263123 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;7652920 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;2006428 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(924935) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;1081493 |

---

F. During the year ended January 31, 2023, the fund purchased $943,813,000 of investment securities and sold $441,979,000 of investment securities, other than temporary cash investments. Purchases and sales include $191,875,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended January 31, 2023, such purchases were $1,939,000 and sales were $467,000, resulting in net realized loss of $77,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

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G. Capital shares issued and redeemed were:

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, |  |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;&nbsp;2022<br> Shares<br> (000) |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;&nbsp;2022<br> Shares<br> (000) |
| Issued | &nbsp;&nbsp;9838 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Issued in Lieu of Cash Distributions | 16244 | &nbsp;&nbsp;&nbsp;10506 |
| Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;(52) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Increase (Decrease) in Shares Outstanding | 26030 | &nbsp;&nbsp;&nbsp;10506 |

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H. Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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#### Report of Independent Registered

#### Public Accounting Firm
To the Board of Trustees of Vanguard Specialized Funds and Vanguard Fixed Income Securities Funds and Shareholders of Vanguard Real Estate Index Fund and Vanguard Real Estate II Index Fund

#### Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Vanguard Real Estate Index Fund (one of the funds constituting Vanguard Specialized Funds) and Vanguard Real Estate II Index Fund (one of the funds constituting Vanguard Fixed Income Securities Funds) (hereafter collectively referred to as the "Funds") as of January 31, 2023, the related statements of operations for the year ended January 31, 2023, the statements of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of January 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended January 31, 2023 and each of the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinions
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

‎ /s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023‎

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds ‎since 1975.

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Tax information (unaudited) for Vanguard Real Estate Index Fund

The fund hereby designates $33,231,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $1,776,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

The fund hereby designates $1,634,556,000, or if subsequently determined to be different, the maximum amount allowable by law, of qualified business income for individual shareholders for the fiscal year.

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Tax information (unaudited) for Vanguard Real Estate II Index Fund

The fund hereby designates $3,899,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $27,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

The fund distributed $92,871,000 as capital gain dividends (from net long-term capital gains) to shareholders during the fiscal year. The fund designates $83,134,000 of its capital gain dividends as 20% rate gain distributions and $9,737,000 as unrecaptured section 1250 gain distributions (25% rate gain).

The fund hereby designates $195,003,000, or if subsequently determined to be different, the maximum amount allowable by law, of qualified business income for individual shareholders for the fiscal year.

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THESE FUNDS ARE NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. ("MSCI"), ANY OF ITS AFFILIATES, ANY OF ITS DIRECT OR INDIRECT INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE "MSCI PARTIES"). THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY VANGUARD. NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OF THESE FUNDS OR ANY MEMBER OF THE PUBLIC REGARDING THE ADVISABILITY OF INVESTING IN FUNDS GENERALLY OR IN THESE FUNDS PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THESE FUNDS OR THE ISSUER OR OWNER OF THESE FUNDS. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUERS OR OWNERS OF THESE FUNDS INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THESE FUNDS TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE CONSIDERATION INTO WHICH THESE FUNDS ARE REDEEMABLE. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE OWNERS OF THESE FUNDS IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THESE FUNDS.

ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES WHICH MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, LICENSEE'S CUSTOMERS OR COUNTERPARTIES, ISSUERS OF THE FUNDS, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO ANY MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING WITHOUT LIMITATION LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief ‎operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of ‎Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and ‎Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

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#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer ‎‎(retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. ‎‎(investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment ‎Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–‎‎2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of ‎financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–‎present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School ‎‎(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). ‎Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer ‎‎(November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) ‎and deputy chief compliance officer (2017–2019) of State Street.

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#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the ‎investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at ‎Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

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| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. McIsaac** | **Lauren Valente** |

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![](tm234052d2reitindexarq12i007.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People<br> Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> U.S. Patent No. 6,879,964.<br> Vanguard Marketing Corporation, Distributor.

Q1230 032023

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![](tm234052d2divgrowtharq57i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Dividend Growth Fund

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Contents

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| | |
|:---|:---|
| Your Fund's Performance at a Glance<br>| 1 |
| Advisor's Report<br>| 2 |
| About Your Fund's Expenses<br>| 5 |
| Performance Summary<br>| 7 |
| Financial Statements<br>| 9 |
| Trustees Approve Advisory Arrangement<br>| 23 |

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Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

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Your Fund's Performance at a Glance

• For the fiscal year ended January 31, 2023, Vanguard Dividend Growth Fund returned –0.76%, outperforming its benchmark's –1.94% return.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation readings across much of the world continued climbing to multidecade
highs amid supply chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that
inflation might have peaked, and central banks began slowing their pace of interest rate hikes.

• Sticky inflation, dramatic rate increases, and fears of a recession weighed heavily on sentiment in the stock market.

• Stock selection in the industrial and consumer discretionary sectors helped the Dividend Growth Fund's relative returns most. Other relative contributors included stock
selection in financials as well as an underweight position in the poorly performing information technology sector. The greatest relative detractors included stock selection in health care and materials.

#### Market Barometer

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

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Advisor's Report

For the 12 months ended January 31, 2023, Vanguard Dividend Growth Fund returned –0.76%, outperforming the –1.94% return of the fund's benchmark, the S&P U.S. Dividend Growers Index.

#### The investment environment
U.S. equities, as measured by the Standard & Poor's 500 Index, fell in 2022 amid rampant inflation, surging borrowing costs, uncertainty about corporate earnings, and an increased probability of recession. U.S. equities started 2022 lower as they registered their first quarterly loss since March 2020. Fears about the economic implications of Russia's large-scale military attack on Ukraine and the prospect of aggressive monetary policy tightening by the Federal Reserve drove the S&P 500 Index into correction territory in February. U.S. equities continued to fall during a volatile second quarter.

Growth stocks significantly underperformed their value counterparts as surging U.S. Treasury yields and disappointing earnings results from some of the largest technology companies drove the Nasdaq Composite Index to its largest quarterly loss since December 2008. U.S. equities fell in the third quarter as risk sentiment deteriorated on fears that aggressive interest rate increases and tighter financial conditions would drive the U.S. into recession.

U.S. equities rallied in the fourth quarter after three straight quarterly declines. Greater optimism that the Fed would begin to scale back its aggressive pace of

rate hikes, along with outsized short covering and hedging, helped to fuel a sharp rebound in stocks in October and November. Risk sentiment waned in December amid recession fears, macroeconomic headwinds, and downside earnings risks anticipated in the coming quarters.

The speed and magnitude of Fed monetary tightening in 2022 was nearly unprecedented. Its economic impact is not yet obvious because there is typically a lag between Fed actions and their effect on economic activity. We believe that the full effect will become apparent in the next few quarters. Based on history, we expect to see two primary effects: first, a dramatic slowdown in economic activity (likely with a significant decline in corporate earnings); and second, a significant slowdown in inflation.

Investors are hoping that the peak in inflation will lead to the end of tightening and a "Fed pivot" to lower interest rates and looser policy. Our view is more cautious. We agree that inflation has peaked and that the Fed will stop raising rates; however, we think that economic growth is on the verge of slowing significantly and that corporate earnings will likely be weak in 2023. In addition, we fear that inflation is going to prove stickier than many are hoping, and that may force the Fed to maintain tighter policy than the market would like. We see signs that an inflationary inertia has taken hold in the broader economy, which suggests that inflation may remain stubbornly above the Fed's long-term target.

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We remain committed to dividend growth as the north star in our process, an approach that leads us to own high-quality, stable compounders that should fare well in the sort of environment we just described. On a "run-rate" basis, the fund is expected to produce a mean, asset-weighted dividend growth of 14.8% for calendar-year 2023. Our run-rate calculation is a rough estimate of potential dividend growth: It takes a company's current declared dividend rate, annualizes it, and compares it with the previous calendar year's actual dividend rate. Despite certain shortcomings, we view this estimate as a reasonable report card for our companies.

Some portfolio companies with notable dividend run-rate increases include NIKE, a sportswear manufacturing company (20.4%), Texas Instruments, a semiconductor manufacturing company (17.8%), and Danaher, a science and technology innovator (19.0%). The portfolio remains high-quality and we are optimistic that it will be resilient in a weak economic environment, as it was in 2022.

#### The fund's successes and shortfalls
Stock selection in consumer discretionary, industrials, and financials was the largest contributor to relative performance during the fiscal year. Our underweight to information technology and overweight positions in industrials and health care also helped results. The top absolute contributors were TJX Companies (consumer discretionary), Northrop Grumman (industrials), and Merck (health care).

Shares of TJX Companies, a U.S.-based off-price apparel and home goods retailer, rose for the period because of solid demand and good buying opportunities, as traditional retailers continued to experience inventory challenges. Management remains focused on future profitability and its long-term goal of becoming a $60 billion revenue company.

Shares of Northrop Grumman, a U.S. aerospace and defense company, rose on strength in the industry as the conflict in Ukraine has led to increased military spending. Like its peers, its growth is moderating as the B-21 and F-35 programs have plateaued and the U.S. government shifts from unmanned aerospace platforms to space platforms, which takes time to play out.

Shares of global health care company Merck rose. It generates a stable return on capital, which we expect to accelerate as it leans into its new-drug pipeline and expands the use cases for its immunotherapy drug, Keytruda. Merck has a forward-looking approach to long-term strategic issues, with a strong focus on internal talent development alongside a strong board and a great management team.

Stock selection in health care, materials, and consumer staples were the largest detractors from relative results. Our out-of-benchmark position in real estate and an underweight to financials also weighed on relative performance. Our largest absolute detractors included Baxter International (health care),

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Comcast (communication services), and Microsoft (information technology).

Baxter International shares underperformed in 2022 primarily because of continued inflationary pressures, which stemmed from higher raw material costs, overhead costs, and difficulty securing critical components, specifically chips, because of shortages.

Comcast shares fell despite the company's reporting second-quarter results that topped analysts' estimates. For the first time in its history, Comcast did not add broadband customers during a quarter.

Shares of Microsoft declined after the company reported weaker-than-expected cloud revenue in the fiscal first quarter, despite beating earnings and revenue estimates. The company also issued second-quarter revenue guidance that fell short of expectations.

#### The fund's positioning and investment strategy
Our primary objective is to identify companies that we believe will steadily and reliably increase their dividend payments. We seek to achieve this by carefully building the Dividend Growth Fund one stock at a time, giving central consideration to each company's dividend-growth prospects. Our industry and sector weightings are a result of this process. At the end of the period, the fund had significant absolute weights in industrials, health care, and information technology but less exposure (below 5%) to real estate. We did not hold any stocks

in utilities, communication services, or energy at period-end.

Working on behalf of the fund's shareholders, we are continually trying to balance the virtue of rigid adherence to a focused approach to investment with the need to adjust and safeguard when necessary. We have high confidence in our investment approach and conviction that patience and careful stock picking will deliver in the long term.

Donald J. Kilbride,

Senior Managing Director and

Equity Portfolio Manager

Peter C. Fisher,

Portfolio Manager

Wellington Management Company llp

February 10, 2023

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About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

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| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
| Dividend Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| Based on Actual Fund Return | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1019.30 | &nbsp;&nbsp;&nbsp;&nbsp;$1.53 |
| Based on Hypothetical 5% Yearly Return | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1023.69 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 |

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The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratio for that period is 0.30%. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

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Dividend Growth Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2divgrowtharq57i002.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2divgrowtharq57i003.jpg) | &nbsp;&nbsp;&nbsp;Dividend Growth Fund | &nbsp;&nbsp;&nbsp;-0.76% | &nbsp;&nbsp;&nbsp;&nbsp;10.84% | &nbsp;&nbsp;&nbsp;&nbsp;12.44% | &nbsp;&nbsp;&nbsp;&nbsp;$32289 |
| ![](tm234052d2divgrowtharq57i004.jpg) | &nbsp;&nbsp;&nbsp;Dividend Growth Spliced Index | &nbsp;&nbsp;&nbsp;-1.94 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.97 | &nbsp;&nbsp;&nbsp;&nbsp;11.78 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30458 |
| ![](tm234052d2divgrowtharq57i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

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Dividend Growth Spliced Index: NASDAQ US Dividend Achievers Select Index through September 19, 2021; S&P U.S. Dividend Growers Index thereafter.

See Financial Highlights for dividend and capital gains information.

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Dividend Growth Fund

Fund Allocation

As of January 31, 2023

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| | |
|:---|:---|
| Consumer Discretionary | 12.8% |
| Consumer Staples | 15.1 |
| Financials | &nbsp;&nbsp;&nbsp;9.2 |
| Health Care | 18.3 |
| Industrials | 20.8 |
| Information Technology | 15.6 |
| Materials | &nbsp;&nbsp;&nbsp;5.2 |
| Real Estate | &nbsp;&nbsp;&nbsp;3.0 |

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The table reflects the fund's investments, except for short-term investments. Sector categories are based on the Global Industry Classification Standard ("GICS"), except for the "Other" category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard and Poor's, a division of McGraw-Hill Companies, Inc. ("S&P"), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

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Dividend Growth Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

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| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| **Common Stocks (97.1%)** | **Common Stocks (97.1%)** | **Common Stocks (97.1%)** |
| **Consumer Discretionary (12.5%)** | **Consumer Discretionary (12.5%)** | **Consumer Discretionary (12.5%)** |
| TJX Cos. Inc. | 26774678 | 2191775 |
| NIKE Inc. Class B | 14480107 | 1843752 |
| McDonald's Corp. | 5996876 | 1603564 |
| Home Depot Inc. | 3153585 | 1022298 |
|  |  | **6661389** |
| **Consumer Staples (14.7%)** | **Consumer Staples (14.7%)** | **Consumer Staples (14.7%)** |
| Colgate-Palmolive Co. | 21242045 | 1583170 |
| PepsiCo Inc. | 8539179 | 1460370 |
| Procter & Gamble Co. | 10138846 | 1443569 |
| Coca-Cola Co. | 20650771 | 1266305 |
| Costco Wholesale Corp. | 2191388 | 1120106 |
| Diageo plc | 21972876 | &nbsp;&nbsp;&nbsp;&nbsp;960788 |
|  |  | **7834308** |
| **Financials (9.0%)** | **Financials (9.0%)** | **Financials (9.0%)** |
| Marsh & McLennan Cos. Inc. | 8807118 | 1540453 |
| Chubb Ltd. | 6094600 | 1386461 |
| American Express Co. | 6899286 | 1206892 |
| PNC Financial Services Group Inc. | 4001572 | &nbsp;&nbsp;&nbsp;&nbsp;661980 |
|  |  | **4795786** |
| **Health Care (17.8%)** | **Health Care (17.8%)** | **Health Care (17.8%)** |
| UnitedHealth Group Inc. | 3967182 | 1980378 |
| Stryker Corp. | 6905037 | 1752567 |
| Johnson & Johnson | 8267659 | 1351101 |
| Danaher Corp. | 4766298 | 1260114 |
| Medtronic plc | 12684304 | 1061549 |
| Merck & Co. Inc. | 7847792 | &nbsp;&nbsp;&nbsp;&nbsp;842931 |
| Baxter International Inc. | 16576448 | &nbsp;&nbsp;&nbsp;&nbsp;757378 |
| Pfizer Inc. | 11049853 | &nbsp;&nbsp;&nbsp;&nbsp;487962 |
|  |  | **9493980** |
| **Industrials (20.2%)** | **Industrials (20.2%)** | **Industrials (20.2%)** |
| Honeywell International Inc. | 8697718 | 1813300 |
| Northrop Grumman Corp. | 3430395 | 1536954 |

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| | | | |
|:---|:---|:---|:---|
|  |  | Shares | Market<br> Value• ($000) |
|  | Raytheon Technologies Corp. | 13730740 | 1371014 |
|  | General Dynamics Corp. | 5570714 | 1298311 |
|  | Union Pacific Corp. | 5721760 | 1168326 |
|  | United Parcel Service Inc. Class B (XNYS) | 5921866 | 1096907 |
|  | Canadian National Railway Co. | 9141864 | 1088188 |
|  | Lockheed Martin Corp. | 1823908 | &nbsp;&nbsp;&nbsp;&nbsp;844944 |
|  | Deere & Co. | 1417859 | &nbsp;&nbsp;&nbsp;&nbsp;599528 |
|  |  |  | **10817472** |
| **Information Technology (15.1%)** | **Information Technology (15.1%)** | **Information Technology (15.1%)** | **Information Technology (15.1%)** |
|  | Microsoft Corp. | 6418825 | 1590649 |
|  | Visa Inc. Class A | 6888638 | 1585833 |
|  | Mastercard Inc. Class A | 3732371 | 1383217 |
|  | Texas Instruments Inc. | 7514084 | 1331571 |
|  | Accenture plc Class A | 4558827 | 1272141 |
|  | Automatic Data Processing Inc. | 4143705 | &nbsp;&nbsp;&nbsp;&nbsp;935690 |
|  |  |  | **8099101** |
| **Materials (5.0%)** | **Materials (5.0%)** | **Materials (5.0%)** | **Materials (5.0%)** |
|  | Linde plc | 4442957 | 1470352 |
|  | Ecolab Inc. | 7904944 | 1223923 |
|  |  |  | **2694275** |
| **Real Estate (2.8%)** | **Real Estate (2.8%)** | **Real Estate (2.8%)** | **Real Estate (2.8%)** |
|  | American Tower Corp. | 3574792 | &nbsp;&nbsp;&nbsp;&nbsp;798573 |
|  | Public Storage | 2390232 | &nbsp;&nbsp;&nbsp;&nbsp;727443 |
|  |  |  | **1526016** |
| **Total Common Stocks<br> (Cost $29,177,761)** | **Total Common Stocks<br> (Cost $29,177,761)** | **Total Common Stocks<br> (Cost $29,177,761)** | **51922327** |
| **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** |
| **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** | **Money Market Fund (0.0%)** |
| <sup>1</sup> | Vanguard Market Liquidity Fund, 4.437% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;262 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26 |

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Dividend Growth Fund

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| | | |
|:---|:---|:---|
|  | Face<br> Amount<br> ($000) | Market<br> Value• ($000) |
| **Repurchase Agreements (2.7%)** | **Repurchase Agreements (2.7%)** | **Repurchase Agreements (2.7%)** |
| Credit Agricole Securities 4.250%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $100,112,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%, 1/15/30, with a value of $102,102,000) | &nbsp;&nbsp;&nbsp;&nbsp;100100 | &nbsp;&nbsp;&nbsp;&nbsp;100100 |
| Natixis SA 4.250%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $558,866,000, collateralized by Federal Home Loan Bank 2.080%–3.000%, 2/24/37– 9/25/45, U.S. Treasury Inflation Indexed Note/Bond 4.657%, 7/31/23, and U.S. Treasury Note/Bond 0.125%–6.625%, 4/15/23–11/15/52, with a value of $569,976,000) | &nbsp;&nbsp;&nbsp;&nbsp;558800 | &nbsp;&nbsp;&nbsp;&nbsp;558800 |
| NatWest Markets plc 4.260%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $519,461,000, collateralized by U.S. Treasury Bill 0.000%, 2/9/23–1/25/24, and U.S. Treasury Inflation Indexed Note/Bond 4.554%–4.829%, 4/30/23–1/31/25, with a value of $529,788,000) | &nbsp;&nbsp;&nbsp;&nbsp;519400 | &nbsp;&nbsp;&nbsp;&nbsp;519400 |

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| | | |
|:---|:---|:---|
|  | Face<br> Amount<br> ($000) | Market<br> Value• ($000) |
| Societe Generale 4.260%, 2/1/23<br> (Dated 1/31/23, Repurchase Value $266,232,000, collateralized by Federal National Mortgage Assn. 3.000%–5.000%, 9/1/46–7/1/56, with a value of $271,524,000) | &nbsp;&nbsp;&nbsp;&nbsp;266200 | &nbsp;&nbsp;&nbsp;&nbsp;266200 |
|  |  | **1444500** |
| **Total Temporary Cash Investments (Cost $1,444,526)** | **Total Temporary Cash Investments (Cost $1,444,526)** | **1444526** |
| **Total Investments (99.8%) (Cost $30,622,287)** | **Total Investments (99.8%) (Cost $30,622,287)** | **53366853** |
| **Other Assets and Liabilities—Net (0.2%)** | **Other Assets and Liabilities—Net (0.2%)** | **85254** |
| **Net Assets (100%)** | **Net Assets (100%)** | **53452107** |
| Cost is in $000. | Cost is in $000. | Cost is in $000. |

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• See Note A in Notes to Financial Statements. <br> 1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

See accompanying Notes, which are an integral part of the Financial Statements.

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Dividend Growth Fund

Statement of Assets and Liabilities

As of January 31, 2023

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| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated Issuers (Cost $30,622,261) | 53366827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliated Issuers (Cost $26) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26 |
| Total Investments in Securities | 53366853 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47594 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69579 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22998 |
| **Total Assets** | **53509027** |
| **Liabilities** |  |
| Foreign Currency Due to Custodian, at Value (Proceeds $3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 |
| Due to Custodian | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115 |
| Payables to Investment Advisor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19078 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34467 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3257 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**56920** |
| **Net Assets** | &nbsp;&nbsp;**53452107** |
| **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | 30645277 |
| Total Distributable Earnings (Loss) | 22806830 |
| **Net Assets** | &nbsp;&nbsp;**53452107** |
| **Net Assets** |  |
| **Applicable to 1,509,222,120 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**53452107** |
| **Net Asset Value Per Share** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$35.42** |

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See accompanying Notes, which are an integral part of the Financial Statements.

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Dividend Growth Fund

Statement of Operations

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1010865 |
| Interest<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27212 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1038078 |
| **Expenses** |  |
| Investment Advisory Fees—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68639 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14424 |
| The Vanguard Group—Note C |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2771 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;273 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 |
| Shareholders' Reports | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;568 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156701 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156674 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**881404** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;952240 |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1508) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**950732** |
| **Change in Unrealized Appreciation (Depreciation) of Investment Securities<sup>2</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2275243)** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(443107)** |

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| | |
|:---|:---|
| 1 | Dividends are net of foreign withholding taxes of $3,080,000. |
| 2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $0, $0, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |

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See accompanying Notes, which are an integral part of the Financial Statements.

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Dividend Growth Fund

Statement of Changes in Net Assets

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| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;881404 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;808227 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;950732 | &nbsp;&nbsp;&nbsp;&nbsp;3426528 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;(2275243) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7167222 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;&nbsp;&nbsp;(443107) | &nbsp;&nbsp;&nbsp;11401977 |
| **Distributions** |  |  |
| Total Distributions | &nbsp;&nbsp;&nbsp;(3115838) | &nbsp;&nbsp;&nbsp;&nbsp;(2973671) |
| **Capital Share Transactions** |  |  |
| Issued | &nbsp;&nbsp;&nbsp;6800227 | &nbsp;&nbsp;&nbsp;&nbsp;5053981 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;2759975 | &nbsp;&nbsp;&nbsp;&nbsp;2627602 |
| Redeemed | &nbsp;&nbsp;(6734733) | &nbsp;&nbsp;&nbsp;&nbsp;(7022848) |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;2825469 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;658735 |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;(733476) | &nbsp;&nbsp;&nbsp;&nbsp;9087041 |
| **Net Assets** |  |  |
| **Beginning of Period** | **54185583** | &nbsp;&nbsp;&nbsp;**45098542** |
| **End of Period** | &nbsp;&nbsp;**53452107** | &nbsp;&nbsp;&nbsp;**54185583** |

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See accompanying Notes, which are an integral part of the Financial Statements.

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Dividend Growth Fund

Financial Highlights

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$37.85** | &nbsp;&nbsp;&nbsp;**$31.82** | &nbsp;&nbsp;&nbsp;**$30.63** | &nbsp;&nbsp;&nbsp;**$26.03** | &nbsp;&nbsp;&nbsp;**$27.85** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.596 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.576 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.557 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.536 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.520 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.893) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.593 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.572 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.499 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.178) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.297) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.169 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.129 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.035 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.342 |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.590) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.574) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.539) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.525) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.526) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.543) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.565) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.400) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.910) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.636) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.133) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.139) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.939) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.435) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.162) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$35.42** | &nbsp;&nbsp;&nbsp;**$37.85** | &nbsp;&nbsp;&nbsp;**$31.82** | &nbsp;&nbsp;&nbsp;**$30.63** | &nbsp;&nbsp;&nbsp;**$26.03** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**-0.76%** | &nbsp;&nbsp;&nbsp;**25.66%** | &nbsp;&nbsp;&nbsp;**7.03%** | &nbsp;&nbsp;&nbsp;**23.33%** | &nbsp;&nbsp;&nbsp;**1.63%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$53452 | &nbsp;&nbsp;&nbsp;$54186 | &nbsp;&nbsp;&nbsp;$45099 | &nbsp;&nbsp;&nbsp;$43024 | &nbsp;&nbsp;&nbsp;$32856 |
| Ratio of Total Expenses to Average Net Assets<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.30%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.27% | &nbsp;&nbsp;&nbsp;0.26% | &nbsp;&nbsp;&nbsp;0.27% | &nbsp;&nbsp;&nbsp;0.22% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;1.68% | &nbsp;&nbsp;&nbsp;1.56% | &nbsp;&nbsp;&nbsp;1.85% | &nbsp;&nbsp;&nbsp;1.82% | &nbsp;&nbsp;&nbsp;1.93% |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;11% | &nbsp;&nbsp;&nbsp;15% | &nbsp;&nbsp;&nbsp;15% | &nbsp;&nbsp;&nbsp;17% | &nbsp;&nbsp;&nbsp;23% |

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| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of 0.03%, (0.00%), (0.01%), 0.00%, and (0.05%). |
| 4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.30%. |

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See accompanying Notes, which are an integral part of the Financial Statements.

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Dividend Growth Fund

Notes to Financial Statements

Vanguard Dividend Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

**A.** The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any

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Dividend Growth Fund

repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple

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Dividend Growth Fund

Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

**B.** Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments
based on the fund's performance relative to the NASDAQ US Dividend Achievers Select Index for periods prior to September 20, 2021, and to the current benchmark S&P U.S. Dividend Growers Index, beginning
September 20, 2021, for the preceding three years. The benchmark change will be fully phased in by October 2024. For the year ended January 31, 2023, the investment advisory fee represented an effective annual basic
rate of 0.13% of the fund's average net assets, before a net increase of $14,424,000 (0.03%) based on performance.

**C.** In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative,
marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of
trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $2,003,000, representing less than 0.01% of the fund's net assets and 0.80% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

**D.** The fund has asked its investment advisor to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated.
Such rebates are used solely to reduce the fund's management and

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Dividend Growth Fund

administrative expenses. The fund's custodian bank has also agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended January 31, 2023, these arrangements reduced the fund's management and administrative expenses by $19,000 and custodian fees by $8,000. The total expense reduction represented an effective annual rate of less than 0.01% of the fund's average net assets.

**E.** Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value
securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks | 50961539 | &nbsp;&nbsp;&nbsp;&nbsp;960788 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;51922327 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26 | &nbsp;&nbsp;&nbsp;1444500 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;1444526 |
| Total | 50961565 | &nbsp;&nbsp;&nbsp;2405288 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;53366853 |

---

**F.** Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no
effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable foreign currency transactions and distributions in connection with
fund share redemptions were reclassified between the following accounts:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Paid-in Capital | &nbsp;&nbsp;&nbsp;&nbsp;76043 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;(76043) |

---

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future.

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Dividend Growth Fund

The differences are primarily related to the deferral of losses from wash sales. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65688 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;22741142 |

---

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;&nbsp;988587 | &nbsp;&nbsp;&nbsp;&nbsp;1045281 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;2127251 | &nbsp;&nbsp;&nbsp;&nbsp;1928390 |
| Total | &nbsp;&nbsp;&nbsp;3115838 | &nbsp;&nbsp;&nbsp;&nbsp;2973671 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;30625711 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;23682241 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(941099) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;22741142 |

---

**G.** During the year ended January 31, 2023, the fund purchased $5,830,917,000 of investment securities and sold $6,366,263,000 of investment securities, other than temporary cash investments.

The fund purchased securities from and sold securities to other funds or accounts managed by its investment advisor or their affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended January 31, 2023, such purchases were $50,920,000 and sales were $0; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

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Dividend Growth Fund

**H.** Capital shares issued and redeemed were:

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;2022<br> Shares<br> (000) |
|  | 2023<br> Shares<br> (000) | &nbsp;&nbsp;2022<br> Shares<br> (000) |
| Issued | &nbsp;&nbsp;191019 | &nbsp;&nbsp;&nbsp;&nbsp;137831 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;76943 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68554 |
| Redeemed | (190197) | &nbsp;&nbsp;(192414) |
| Net Increase (Decrease) in Shares Outstanding | &nbsp;&nbsp;&nbsp;&nbsp;77765 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13971 |

---

**I.** Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Dividend Growth Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Dividend Growth Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023, the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

------

#### Tax information (unaudited)
For corporate shareholders, 88.5%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $944,211,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $4,823,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund for the fiscal year are qualified short-term capital gains.

The fund distributed $2,199,699,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.

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Trustees Approve Advisory Arrangement

The board of trustees of Vanguard Dividend Growth Fund renewed the fund's investment advisory arrangement with Wellington Management Company llp (Wellington Management). The board determined that renewing the fund's advisory arrangement was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of the advisor's investment staff, portfolio management process, and performance. This evaluation included information provided to the board by Vanguard's Portfolio Review Department, which is responsible for fund and advisor oversight and product management. The Portfolio Review Department met regularly with the advisor and made monthly presentations to the board during the fiscal year that directed the board's focus to relevant information and topics.

The board, or an investment committee made up of board members, also received information throughout the year during advisor presentations. For each advisor presentation, the board was provided with letters and reports that included information about, among other things, the advisory firm and the advisor's assessment of the investment environment, portfolio performance, and portfolio characteristics.

In addition, the board received periodic reports throughout the year, which included information about the fund's performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Portfolio Review Department's ongoing assessment of the advisors.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the continuation of the advisory arrangement. Rather, it was the totality of the circumstances that drove the board's decision.

#### Nature, extent, and quality of services
The board reviewed the quality of the fund's investment management services over both the short and long term and took into account the organizational depth and stability of the advisor. The board considered that Wellington Management, founded in 1928, is among the nation's oldest and most respected institutional managers. The board also noted that the portfolio manager of the fund has nearly three decades of industry experience. Wellington Management seeks to invest in companies with a history of paying a stable or growing dividend and the ability to continue increasing their dividend over the long term. Utilizing fundamental research, Wellington Management focuses on a company's ability to create value and the ability and willingness to distribute that value to shareholders in a sustainable manner. Valuation is also an important input to the investment process, as the advisor seeks to purchase these businesses when short-term dislocations have made the share price attractive. Wellington Management has advised the fund since its inception in 1992.

The board concluded that Wellington Management's experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.

------

#### Investment performance
The board considered the short- and long-term performance of the fund, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The board concluded that the performance was such that the advisory arrangement should continue.

#### Cost
The board concluded that the fund's expense ratio was below the average expense ratio charged by funds in its peer group and that the fund's advisory fee rate was also below the peer-group average.

The board did not consider the profitability of Wellington Management in determining whether to approve the advisory fee, because Wellington Management is independent of Vanguard and the advisory fee is the result of arm's-length negotiations.

#### The benefit of economies of scale
The board concluded that the fund's shareholders benefit from economies of scale because of breakpoints in the fund's advisory fee schedule. The breakpoints reduce the effective rate of the fee as the fund's assets increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

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experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. (investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School

(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

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#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) and deputy chief compliance officer (2017–2019) of State Street.

#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

---

| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. Mclsaac** | **Lauren Valente** |

---

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![](tm234052d2divgrowtharq57i006.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> Vanguard Marketing Corporation, Distributor.

Q570 032023

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![](tm234052d2divappindarq60i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Dividend Appreciation Index Fund

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Contents

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| | |
|:---|:---|
| Your Fund's Performance at a Glance<br>| 1 |
| About Your Fund's Expenses<br>| 2 |
| Performance Summary<br>| 4 |
| Financial Statements<br>| 7 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

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Your Fund's Performance at a Glance

• For the 12 months ended January 31, 2023, Vanguard Dividend Appreciation Index Fund returned –2.02% for both ETF Shares (based on net asset value) and Admiral Shares. Those results were in line with the
 –1.94% return of its benchmark index after taking into account the cost of running the fund.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation readings across much of the world continued climbing to multidecade
highs amid supply chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that
inflation might have peaked, and central banks began slowing their pace of interest rate hikes.

• Sticky inflation, dramatic rate hikes, and fears of a recession weighed heavily on sentiment in the stock market.

• From a sector perspective, the largest contributors to the fund's performance were industrials and health care. Information technology, consumer discretionary, and communication
services detracted most.

#### Market Barometer

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

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About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

------

---

| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| **Based on Actual Fund Return** |  |  |  |
| Dividend Appreciation Index Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1031.00 | &nbsp;&nbsp;&nbsp;&nbsp;$0.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral™ Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1031.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.41 |
| **Based on Hypothetical 5% Yearly Return** |  |  |  |
| Dividend Appreciation Index Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1024.90 | &nbsp;&nbsp;&nbsp;&nbsp;$0.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.80 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.41 |

---

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.06% for ETF Shares and 0.08% for Admiral Shares. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

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Dividend Appreciation Index Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: January 31, 2013, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2divappindarq60i002.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2divappindarq60i003.jpg) | &nbsp;&nbsp;&nbsp;Dividend Appreciation Index Fund ETF Shares Net Asset Value | &nbsp;&nbsp;&nbsp;-2.02% | &nbsp;&nbsp;&nbsp;&nbsp;9.89% | &nbsp;&nbsp;&nbsp;&nbsp;11.70% | &nbsp;&nbsp;&nbsp;&nbsp;$30242 |
|  | &nbsp;&nbsp;&nbsp;Dividend Appreciation Index Fund ETF Shares Market Price | &nbsp;&nbsp;&nbsp;-2.02 | &nbsp;&nbsp;&nbsp;&nbsp;9.88 | &nbsp;&nbsp;&nbsp;&nbsp;11.70 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30235 |
| ![](tm234052d2divappindarq60i004.jpg) | &nbsp;&nbsp;&nbsp;Spliced S&P U.S. Dividend Growers Index | &nbsp;&nbsp;&nbsp;-1.94 | &nbsp;&nbsp;&nbsp;&nbsp;9.97 | &nbsp;&nbsp;&nbsp;&nbsp;11.78 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30458 |
| ![](tm234052d2divappindarq60i005.jpg) | &nbsp;&nbsp;&nbsp;Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;12.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31581 |

---

Spliced S&P U.S. Dividend Growers Index: NASDAQ US Dividend Achievers Select Index through September 19, 2021; S&P U.S. Dividend Growers Index thereafter.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;Since<br> Inception<br> (12/19/2013) | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| Dividend Appreciation Index Fund Admiral Shares | &nbsp;&nbsp;&nbsp;-2.02% | &nbsp;&nbsp;&nbsp;9.88% | &nbsp;&nbsp;&nbsp;&nbsp;10.74% | &nbsp;&nbsp;&nbsp;&nbsp;$25357 |
| Spliced S&P U.S. Dividend Growers Index | &nbsp;&nbsp;&nbsp;-1.94 | &nbsp;&nbsp;&nbsp;9.97 | &nbsp;&nbsp;&nbsp;&nbsp;10.83 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25533 |
| Dow Jones U.S. Total Stock Market Float Adjusted Index | &nbsp;&nbsp;&nbsp;-8.42 | &nbsp;&nbsp;&nbsp;8.99 | &nbsp;&nbsp;&nbsp;&nbsp;10.84 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25566 |

---

Spliced S&P U.S. Dividend Growers Index: NASDAQ US Dividend Achievers Select Index through September 19, 2021; S&P U.S. Dividend Growers Index thereafter.

"Since Inception" performance is calculated from the Admiral Shares' inception date for both the fund and its comparative standard(s).

See Financial Highlights for dividend and capital gains information.

------

Dividend Appreciation Index Fund

#### Cumulative Returns of ETF Shares: January 31, 2013, Through January 31, 2023

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Five<br> Years | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ten<br> Years |
| Dividend Appreciation Index Fund ETF Shares Market Price | &nbsp;&nbsp;&nbsp;-2.02% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60.20% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202.35% |
| Dividend Appreciation Index Fund ETF Shares Net Asset Value | &nbsp;&nbsp;&nbsp;-2.02 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60.27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202.42 |
| Spliced S&P U.S. Dividend Growers Index | &nbsp;&nbsp;&nbsp;-1.94 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60.85 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204.58 |

---

For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, click on Price, and then scroll down to the Premium/Discount chart. The ETF premium/discount chart there shows the percentage and days on which the ETF Shares' market price was above or below the NAV.

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Dividend Appreciation Index Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| Communication Services | &nbsp;&nbsp;&nbsp;1.9% |
| Consumer Discretionary | &nbsp;&nbsp;&nbsp;9.7 |
| Consumer Staples | 12.9 |
| Energy | &nbsp;&nbsp;&nbsp;0.1 |
| Financials | 15.6 |
| Health Care | 15.1 |
| Industrials | 13.3 |
| Information Technology | 23.3 |
| Materials | &nbsp;&nbsp;&nbsp;4.9 |
| Utilities | &nbsp;&nbsp;&nbsp;3.2 |

---

The table reflects the fund's investments, except for short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard ("GICS"), except for the "Other" category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.

Global Industry Classification Standard ("GICS") was developed by and is the exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard and Poor's, a division of McGraw-Hill Companies, Inc. ("S&P"), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

------

Dividend Appreciation Index Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| **Common Stocks (99.7%)** | **Common Stocks (99.7%)** | **Common Stocks (99.7%)** |
| **Communication Services (1.8%)** | **Communication Services (1.8%)** | **Communication Services (1.8%)** |
| Comcast Corp. Class A | 27613767 | 1086602 |
| Activision Blizzard Inc. | 4523310 | &nbsp;&nbsp;&nbsp;&nbsp;346350 |
| John Wiley & Sons Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;272740 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12491 |
|  |  | **1445443** |
| **Consumer Discretionary (9.7%)** | **Consumer Discretionary (9.7%)** | **Consumer Discretionary (9.7%)** |
| Home Depot Inc. | 6570662 | 2130011 |
| McDonald's Corp. | 4651251 | 1243744 |
| NIKE Inc. Class B | 8009526 | 1019853 |
| Lowe's Cos. Inc. | 4051158 | &nbsp;&nbsp;&nbsp;&nbsp;843654 |
| Starbucks Corp. | 7478275 | &nbsp;&nbsp;&nbsp;&nbsp;816179 |
| Target Corp. | 2977937 | &nbsp;&nbsp;&nbsp;&nbsp;512622 |
| Tractor Supply Co. | &nbsp;&nbsp;&nbsp;&nbsp;701370 | &nbsp;&nbsp;&nbsp;&nbsp;159905 |
| Genuine Parts Co. | &nbsp;&nbsp;&nbsp;&nbsp;895249 | &nbsp;&nbsp;&nbsp;&nbsp;150241 |
| Best Buy Co. Inc. | 1301429 | &nbsp;&nbsp;&nbsp;&nbsp;115463 |
| Pool Corp. | &nbsp;&nbsp;&nbsp;&nbsp;247755 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95537 |
| Service Corp. International | &nbsp;&nbsp;&nbsp;&nbsp;978218 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72535 |
| VF Corp. | 2118967 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65561 |
| Williams-Sonoma Inc. | &nbsp;&nbsp;&nbsp;&nbsp;432285 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58332 |
| Whirlpool Corp. | &nbsp;&nbsp;&nbsp;&nbsp;355766 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55353 |
| Churchill Downs Inc. | &nbsp;&nbsp;&nbsp;&nbsp;209193 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51901 |
| Lithia Motors Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;173244 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45598 |
| Gentex Corp. | 1487048 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43883 |
| Polaris Inc. | &nbsp;&nbsp;&nbsp;&nbsp;346965 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39845 |
| Thor Industries Inc. | &nbsp;&nbsp;&nbsp;&nbsp;340457 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32456 |
| Monro Inc. | &nbsp;&nbsp;&nbsp;&nbsp;199455 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10152 |
| Dillard's Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23185 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9119 |
| Aaron's Co. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;196562 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2880 |
|  |  | **7574824** |
| **Consumer Staples (12.9%)** | **Consumer Staples (12.9%)** | **Consumer Staples (12.9%)** |
| Procter & Gamble Co. | 15192759 | 2163145 |
| Coca-Cola Co. | 24717257 | 1515662 |
| PepsiCo Inc. | 8744393 | 1495466 |
| Costco Wholesale Corp. | 2800786 | 1431594 |
| Walmart Inc. | 9010574 | 1296351 |
| Colgate-Palmolive Co. | 5305038 | &nbsp;&nbsp;&nbsp;&nbsp;395384 |
| Archer-Daniels-Midland Co. | 3489293 | &nbsp;&nbsp;&nbsp;&nbsp;289088 |
| Sysco Corp. | 3250580 | &nbsp;&nbsp;&nbsp;&nbsp;251790 |
| Hershey Co. | &nbsp;&nbsp;&nbsp;&nbsp;933151 | &nbsp;&nbsp;&nbsp;&nbsp;209586 |
| Kroger Co. | 3183052 | &nbsp;&nbsp;&nbsp;&nbsp;142060 |
| Church & Dwight Co. Inc. | 1561422 | &nbsp;&nbsp;&nbsp;&nbsp;126257 |
| Tyson Foods Inc. Class A | 1853906 | &nbsp;&nbsp;&nbsp;&nbsp;121894 |

---

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| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| McCormick & Co. Inc. | 1588681 | &nbsp;&nbsp;&nbsp;&nbsp;119342 |
| Clorox Co. | &nbsp;&nbsp;&nbsp;&nbsp;782161 | &nbsp;&nbsp;&nbsp;&nbsp;113171 |
| J M Smucker Co. | &nbsp;&nbsp;&nbsp;&nbsp;676637 | &nbsp;&nbsp;&nbsp;&nbsp;103390 |
| Hormel Foods Corp. | 1837992 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83279 |
| Brown-Forman Corp. Class B | 1160944 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77296 |
| Casey's General Stores Inc. | &nbsp;&nbsp;&nbsp;&nbsp;236801 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55864 |
| Ingredion Inc. | &nbsp;&nbsp;&nbsp;&nbsp;416040 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42769 |
| Lancaster Colony Corp. | &nbsp;&nbsp;&nbsp;&nbsp;125599 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24104 |
| WD-40 Co. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86932 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15173 |
| J & J Snack Foods Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94985 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13611 |
| Nu Skin Enterprises Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;316609 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13576 |
| Andersons Inc. | &nbsp;&nbsp;&nbsp;&nbsp;201474 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7410 |
| SpartanNash Co. | &nbsp;&nbsp;&nbsp;&nbsp;222713 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7056 |
| Tootsie Roll Industries Inc. | &nbsp;&nbsp;&nbsp;&nbsp;114668 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5129 |
|  |  | **10119447** |
| **Energy (0.1%)** | **Energy (0.1%)** | **Energy (0.1%)** |
| Texas Pacific Land Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39115 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78068 |
| **Financials (15.6%)** | **Financials (15.6%)** | **Financials (15.6%)** |
| JPMorgan Chase & Co. | 18628254 | 2607210 |
| S&P Global Inc. | 2114964 | &nbsp;&nbsp;&nbsp;&nbsp;792985 |
| Goldman Sachs Group Inc. | 2150787 | &nbsp;&nbsp;&nbsp;&nbsp;786779 |
| BlackRock Inc. | &nbsp;&nbsp;&nbsp;&nbsp;955302 | &nbsp;&nbsp;&nbsp;&nbsp;725275 |
| Chubb Ltd. | 2636055 | &nbsp;&nbsp;&nbsp;&nbsp;599676 |
| Marsh & McLennan Cos. Inc. | 3150177 | &nbsp;&nbsp;&nbsp;&nbsp;550997 |
| Aon plc Class A (XNYS) | 1347779 | &nbsp;&nbsp;&nbsp;&nbsp;429510 |
| PNC Financial Services Group Inc. | 2576613 | &nbsp;&nbsp;&nbsp;&nbsp;426249 |
| Truist Financial Corp. | 8423179 | &nbsp;&nbsp;&nbsp;&nbsp;416021 |
| CME Group Inc. | 2284797 | &nbsp;&nbsp;&nbsp;&nbsp;403632 |
| Moody's Corp. | 1000827 | &nbsp;&nbsp;&nbsp;&nbsp;323017 |
| Travelers Cos. Inc. | 1517367 | &nbsp;&nbsp;&nbsp;&nbsp;289999 |
| Aflac Inc. | 3644302 | &nbsp;&nbsp;&nbsp;&nbsp;267856 |
| Arthur J Gallagher & Co. | 1331087 | &nbsp;&nbsp;&nbsp;&nbsp;260520 |
| Bank of New York Mellon Corp. | 4795012 | &nbsp;&nbsp;&nbsp;&nbsp;242484 |
| Ameriprise Financial Inc. | &nbsp;&nbsp;&nbsp;&nbsp;681537 | &nbsp;&nbsp;&nbsp;&nbsp;238620 |
| Allstate Corp. | 1720154 | &nbsp;&nbsp;&nbsp;&nbsp;220988 |
| State Street Corp. | 2327197 | &nbsp;&nbsp;&nbsp;&nbsp;212543 |
| Discover Financial Services | 1765287 | &nbsp;&nbsp;&nbsp;&nbsp;206062 |
| T Rowe Price Group Inc. | 1391122 | &nbsp;&nbsp;&nbsp;&nbsp;162024 |
| Fifth Third Bancorp | 4358398 | &nbsp;&nbsp;&nbsp;&nbsp;158166 |

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Dividend Appreciation Index Fund

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| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| Raymond James Financial Inc. | 1218991 | &nbsp;&nbsp;&nbsp;&nbsp;137466 |
| Cincinnati Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;998058 | &nbsp;&nbsp;&nbsp;&nbsp;112930 |
| FactSet Research Systems Inc. | &nbsp;&nbsp;&nbsp;&nbsp;240838 | &nbsp;&nbsp;&nbsp;&nbsp;101860 |
| W R Berkley Corp. | 1297106 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90979 |
| Brown & Brown Inc. | 1492010 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87372 |
| MarketAxess Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;238770 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86877 |
| Cboe Global Markets Inc. | &nbsp;&nbsp;&nbsp;&nbsp;673358 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82742 |
| Globe Life Inc. | &nbsp;&nbsp;&nbsp;&nbsp;574418 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69418 |
| Reinsurance Group of America Inc. | &nbsp;&nbsp;&nbsp;&nbsp;427474 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64878 |
| American Financial Group Inc. | &nbsp;&nbsp;&nbsp;&nbsp;443756 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63275 |
| RenaissanceRe Holdings Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;290161 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56782 |
| Cullen/Frost Bankers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;406443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52951 |
| Commerce Bancshares Inc. | &nbsp;&nbsp;&nbsp;&nbsp;728238 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48472 |
| Assurant Inc. | &nbsp;&nbsp;&nbsp;&nbsp;335268 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44453 |
| Prosperity Bancshares Inc. | &nbsp;&nbsp;&nbsp;&nbsp;578774 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43906 |
| SEI Investments Co. | &nbsp;&nbsp;&nbsp;&nbsp;656839 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41006 |
| Erie Indemnity Co. Class A | &nbsp;&nbsp;&nbsp;&nbsp;158865 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38819 |
| SouthState Corp. | &nbsp;&nbsp;&nbsp;&nbsp;484312 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38551 |
| Morningstar Inc. | &nbsp;&nbsp;&nbsp;&nbsp;158604 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38522 |
| Primerica Inc. | &nbsp;&nbsp;&nbsp;&nbsp;234536 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37936 |
| Lincoln National Corp. | 1001402 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35480 |
| RLI Corp. | &nbsp;&nbsp;&nbsp;&nbsp;256790 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34012 |
| Bank OZK | &nbsp;&nbsp;&nbsp;&nbsp;701499 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32037 |
| Axis Capital Holdings Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;487492 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30502 |
| Hanover Insurance Group Inc. | &nbsp;&nbsp;&nbsp;&nbsp;225805 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30389 |
| Evercore Inc. Class A | &nbsp;&nbsp;&nbsp;&nbsp;227839 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29576 |
| First Financial Bankshares Inc. | &nbsp;&nbsp;&nbsp;&nbsp;822798 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29308 |
| Home BancShares Inc. | 1203734 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28733 |
| UMB Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;276551 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24942 |
| Assured Guaranty Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;379580 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23762 |
| Independent Bank Corp. (XNGS) | &nbsp;&nbsp;&nbsp;&nbsp;290859 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23179 |
| American Equity Investment Life Holding Co. | &nbsp;&nbsp;&nbsp;&nbsp;440884 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21008 |
| Community Bank System Inc. | &nbsp;&nbsp;&nbsp;&nbsp;342454 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19763 |
| BOK Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;185771 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18670 |
| Simmons First National Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;824687 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18399 |
| Atlantic Union Bankshares Corp. | &nbsp;&nbsp;&nbsp;&nbsp;472929 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18298 |
| First Merchants Corp. | &nbsp;&nbsp;&nbsp;&nbsp;383048 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16333 |
| International Bancshares Corp. | &nbsp;&nbsp;&nbsp;&nbsp;333009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15608 |
| Towne Bank | &nbsp;&nbsp;&nbsp;&nbsp;421317 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12838 |
| Cohen & Steers Inc. | &nbsp;&nbsp;&nbsp;&nbsp;157970 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11606 |
| Lakeland Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;160524 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11351 |
| Stock Yards Bancorp Inc. | &nbsp;&nbsp;&nbsp;&nbsp;184657 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11072 |
| Sandy Spring Bancorp Inc. | &nbsp;&nbsp;&nbsp;&nbsp;284640 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9621 |
| Westamerica BanCorp | &nbsp;&nbsp;&nbsp;&nbsp;171923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9552 |
| BancFirst Corp. | &nbsp;&nbsp;&nbsp;&nbsp;108958 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9385 |

---

---

| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| Horace Mann Educators Corp. | &nbsp;&nbsp;&nbsp;&nbsp;259732 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9249 |
| Lakeland Bancorp Inc. | &nbsp;&nbsp;&nbsp;&nbsp;421266 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8118 |
| Federal Agricultural Mortgage Corp. Class C | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57702 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7673 |
| Southside Bancshares Inc. | &nbsp;&nbsp;&nbsp;&nbsp;196604 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7447 |
| Tompkins Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81380 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6130 |
| 1st Source Corp. | &nbsp;&nbsp;&nbsp;&nbsp;107205 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5273 |
| Horizon Bancorp Inc. | &nbsp;&nbsp;&nbsp;&nbsp;244500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3824 |
| First Financial Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70355 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3160 |
| Bank of Marin Bancorp | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2859 |
| Southern Missouri Bancorp Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47917 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2320 |
|  |  | **12241285** |
| **Health Care (15.0%)** | **Health Care (15.0%)** | **Health Care (15.0%)** |
| UnitedHealth Group Inc. | 5933763 | 2962075 |
| Johnson & Johnson | 16603468 | 2713339 |
| Abbott Laboratories | 11073306 | 1224154 |
| Bristol-Myers Squibb Co. | 13749187 | &nbsp;&nbsp;&nbsp;&nbsp;998878 |
| Elevance Health Inc. | 1516652 | &nbsp;&nbsp;&nbsp;&nbsp;758311 |
| Medtronic plc | 8449183 | &nbsp;&nbsp;&nbsp;&nbsp;707112 |
| Stryker Corp. | 2139336 | &nbsp;&nbsp;&nbsp;&nbsp;542985 |
| Becton Dickinson and Co. | 1826997 | &nbsp;&nbsp;&nbsp;&nbsp;460805 |
| Humana Inc. | &nbsp;&nbsp;&nbsp;&nbsp;804221 | &nbsp;&nbsp;&nbsp;&nbsp;411520 |
| McKesson Corp. | &nbsp;&nbsp;&nbsp;&nbsp;918053 | &nbsp;&nbsp;&nbsp;&nbsp;347648 |
| AmerisourceBergen Corp. Class A | 1021618 | &nbsp;&nbsp;&nbsp;&nbsp;172613 |
| STERIS plc | &nbsp;&nbsp;&nbsp;&nbsp;632926 | &nbsp;&nbsp;&nbsp;&nbsp;130705 |
| West Pharmaceutical Services Inc. | &nbsp;&nbsp;&nbsp;&nbsp;470147 | &nbsp;&nbsp;&nbsp;&nbsp;124871 |
| Quest Diagnostics Inc. | &nbsp;&nbsp;&nbsp;&nbsp;745608 | &nbsp;&nbsp;&nbsp;&nbsp;110708 |
| Chemed Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94400 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47685 |
| Ensign Group Inc. | &nbsp;&nbsp;&nbsp;&nbsp;353926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33004 |
| Perrigo Co. plc | &nbsp;&nbsp;&nbsp;&nbsp;857169 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32075 |
| Embecta Corp. | &nbsp;&nbsp;&nbsp;&nbsp;366604 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9675 |
| Atrion Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8508 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5848 |
| LeMaitre Vascular Inc. | &nbsp;&nbsp;&nbsp;&nbsp;120171 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5670 |
| National HealthCare Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85864 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5112 |
|  |  | **11804793** |
| **Industrials (13.2%)** | **Industrials (13.2%)** | **Industrials (13.2%)** |
| Honeywell International Inc. | 4285714 | &nbsp;&nbsp;&nbsp;&nbsp;893486 |
| United Parcel Service Inc. Class B (XNYS) | 4635232 | &nbsp;&nbsp;&nbsp;&nbsp;858584 |
| Caterpillar Inc. | 3304833 | &nbsp;&nbsp;&nbsp;&nbsp;833776 |
| Union Pacific Corp. | 3940991 | &nbsp;&nbsp;&nbsp;&nbsp;804711 |
| Lockheed Martin Corp. | 1499958 | &nbsp;&nbsp;&nbsp;&nbsp;694871 |
| Illinois Tool Works Inc. | 1774726 | &nbsp;&nbsp;&nbsp;&nbsp;418906 |
| Northrop Grumman Corp. | &nbsp;&nbsp;&nbsp;&nbsp;933399 | &nbsp;&nbsp;&nbsp;&nbsp;418200 |
| CSX Corp. | 13353476 | &nbsp;&nbsp;&nbsp;&nbsp;412889 |
| Eaton Corp. plc | 2526016 | &nbsp;&nbsp;&nbsp;&nbsp;409745 |
| Waste Management Inc. | 2372632 | &nbsp;&nbsp;&nbsp;&nbsp;367117 |
| Emerson Electric Co. | 3780281 | &nbsp;&nbsp;&nbsp;&nbsp;341057 |
| General Dynamics Corp. | 1437869 | &nbsp;&nbsp;&nbsp;&nbsp;335110 |
| L3Harris Technologies Inc. | 1208865 | &nbsp;&nbsp;&nbsp;&nbsp;259688 |
| Cintas Corp. | &nbsp;&nbsp;&nbsp;&nbsp;546182 | &nbsp;&nbsp;&nbsp;&nbsp;242363 |
| Cummins Inc. | &nbsp;&nbsp;&nbsp;&nbsp;899065 | &nbsp;&nbsp;&nbsp;&nbsp;224353 |
| Rockwell Automation Inc. | &nbsp;&nbsp;&nbsp;&nbsp;727792 | &nbsp;&nbsp;&nbsp;&nbsp;205259 |
| Fastenal Co. | 3635751 | &nbsp;&nbsp;&nbsp;&nbsp;183787 |

---

------

Dividend Appreciation Index Fund

---

| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| WW Grainger Inc. | &nbsp;&nbsp;&nbsp;&nbsp;285537 | &nbsp;&nbsp;&nbsp;&nbsp;168318 |
| Republic Services Inc. Class A | 1306518 | &nbsp;&nbsp;&nbsp;&nbsp;163080 |
| Dover Corp. | &nbsp;&nbsp;&nbsp;&nbsp;891325 | &nbsp;&nbsp;&nbsp;&nbsp;135330 |
| Xylem Inc. | 1144277 | &nbsp;&nbsp;&nbsp;&nbsp;119016 |
| IDEX Corp. | &nbsp;&nbsp;&nbsp;&nbsp;478563 | &nbsp;&nbsp;&nbsp;&nbsp;114702 |
| Expeditors International of Washington Inc. | 1010174 | &nbsp;&nbsp;&nbsp;&nbsp;109250 |
| JB Hunt Transport Services Inc. | &nbsp;&nbsp;&nbsp;&nbsp;526403 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99517 |
| Snap-on Inc. | &nbsp;&nbsp;&nbsp;&nbsp;339359 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84409 |
| Stanley Black & Decker Inc. | &nbsp;&nbsp;&nbsp;&nbsp;939644 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83920 |
| Nordson Corp. | &nbsp;&nbsp;&nbsp;&nbsp;340933 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82949 |
| Carlisle Cos. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;328815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82487 |
| Hubbell Inc. Class B | &nbsp;&nbsp;&nbsp;&nbsp;340998 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78058 |
| Toro Co. | &nbsp;&nbsp;&nbsp;&nbsp;672355 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74981 |
| CH Robinson Worldwide Inc. | &nbsp;&nbsp;&nbsp;&nbsp;746451 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74772 |
| Graco Inc. | 1069831 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73091 |
| Allegion plc | &nbsp;&nbsp;&nbsp;&nbsp;558063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65600 |
| Lincoln Electric Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;366850 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61216 |
| Robert Half International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;700456 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58810 |
| Regal Rexnord Corp. | &nbsp;&nbsp;&nbsp;&nbsp;420714 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58563 |
| HEICO Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;437841 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58531 |
| Pentair plc | 1044662 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57853 |
| A O Smith Corp. | &nbsp;&nbsp;&nbsp;&nbsp;816921 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55306 |
| Lennox International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;204388 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53268 |
| Donaldson Co. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;778589 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48545 |
| HEICO Corp. | &nbsp;&nbsp;&nbsp;&nbsp;254093 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43437 |
| MDU Resources Group Inc. | 1294001 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39998 |
| Applied Industrial Technologies Inc. | &nbsp;&nbsp;&nbsp;&nbsp;245181 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35112 |
| MSA Safety Inc. | &nbsp;&nbsp;&nbsp;&nbsp;233672 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31871 |
| Ryder System Inc. | &nbsp;&nbsp;&nbsp;&nbsp;319143 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30130 |
| ManpowerGroup Inc. | &nbsp;&nbsp;&nbsp;&nbsp;321079 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27985 |
| GATX Corp. | &nbsp;&nbsp;&nbsp;&nbsp;224367 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25679 |
| Insperity Inc. | &nbsp;&nbsp;&nbsp;&nbsp;227690 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25171 |
| Franklin Electric Co. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;247502 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22349 |
| Hillenbrand Inc. | &nbsp;&nbsp;&nbsp;&nbsp;442593 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20740 |
| ABM Industries Inc. | &nbsp;&nbsp;&nbsp;&nbsp;420179 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19711 |
| Brady Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;298733 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15973 |
| McGrath RentCorp. | &nbsp;&nbsp;&nbsp;&nbsp;153786 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15308 |
| Trinity Industries Inc. | &nbsp;&nbsp;&nbsp;&nbsp;521841 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15013 |
| Griffon Corp. | &nbsp;&nbsp;&nbsp;&nbsp;304797 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12460 |
| Lindsay Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69473 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10881 |
| Standex International Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76796 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8875 |
| Tennant Co. | &nbsp;&nbsp;&nbsp;&nbsp;116738 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8187 |
| Matthews International Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;198439 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7350 |
| Apogee Enterprises Inc. | &nbsp;&nbsp;&nbsp;&nbsp;145657 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6823 |
| Douglas Dynamics Inc. | &nbsp;&nbsp;&nbsp;&nbsp;148124 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5986 |
| Gorman-Rupp Co. | &nbsp;&nbsp;&nbsp;&nbsp;142569 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4096 |
|  |  | **10398609** |
| **Information Technology (23.3%)** | **Information Technology (23.3%)** | **Information Technology (23.3%)** |
| Microsoft Corp. | 10914783 | 2704792 |
| Visa Inc. Class A | 10054987 | 2314759 |
| Mastercard Inc. Class A | 5418822 | 2008215 |
| Broadcom Inc. | 2564255 | 1500115 |
| Cisco Systems Inc. | 26077639 | 1269199 |
| Accenture plc Class A | 3999446 | 1116045 |
| Texas Instruments Inc. | 5763735 | 1021391 |
| QUALCOMM Inc. | 7075296 | &nbsp;&nbsp;&nbsp;&nbsp;942500 |

---

---

| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| Oracle Corp. | 9991111 | &nbsp;&nbsp;&nbsp;&nbsp;883814 |
| Intuit Inc. | 1790198 | &nbsp;&nbsp;&nbsp;&nbsp;756663 |
| Automatic Data Processing Inc. | 2642802 | &nbsp;&nbsp;&nbsp;&nbsp;596771 |
| Analog Devices Inc. | 3341758 | &nbsp;&nbsp;&nbsp;&nbsp;573011 |
| KLA Corp. | &nbsp;&nbsp;&nbsp;&nbsp;905671 | &nbsp;&nbsp;&nbsp;&nbsp;355458 |
| Amphenol Corp. Class A | 3772355 | &nbsp;&nbsp;&nbsp;&nbsp;300921 |
| Roper Technologies Inc. | &nbsp;&nbsp;&nbsp;&nbsp;673638 | &nbsp;&nbsp;&nbsp;&nbsp;287475 |
| Motorola Solutions Inc. | 1061490 | &nbsp;&nbsp;&nbsp;&nbsp;272814 |
| Microchip Technology Inc. | 3484649 | &nbsp;&nbsp;&nbsp;&nbsp;270478 |
| TE Connectivity Ltd. | 2024094 | &nbsp;&nbsp;&nbsp;&nbsp;257364 |
| Paychex Inc. | 2035450 | &nbsp;&nbsp;&nbsp;&nbsp;235827 |
| HP Inc. | 5982916 | &nbsp;&nbsp;&nbsp;&nbsp;174342 |
| Corning Inc. | 4969578 | &nbsp;&nbsp;&nbsp;&nbsp;171997 |
| Broadridge Financial Solutions Inc. | &nbsp;&nbsp;&nbsp;&nbsp;745373 | &nbsp;&nbsp;&nbsp;&nbsp;112074 |
| Jack Henry & Associates Inc. | &nbsp;&nbsp;&nbsp;&nbsp;471051 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84832 |
| Littelfuse Inc. | &nbsp;&nbsp;&nbsp;&nbsp;156697 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40223 |
| Badger Meter Inc. | &nbsp;&nbsp;&nbsp;&nbsp;184930 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21433 |
| Cass Information Systems Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3784 |
|  |  | **18276297** |
| **Materials (4.9%)** | **Materials (4.9%)** | **Materials (4.9%)** |
| Linde plc | 3139565 | 1039008 |
| Air Products and Chemicals Inc. | 1406620 | &nbsp;&nbsp;&nbsp;&nbsp;450836 |
| Sherwin-Williams Co. | 1497907 | &nbsp;&nbsp;&nbsp;&nbsp;354390 |
| Nucor Corp. | 1712879 | &nbsp;&nbsp;&nbsp;&nbsp;289511 |
| Ecolab Inc. | 1573311 | &nbsp;&nbsp;&nbsp;&nbsp;243596 |
| Albemarle Corp. | &nbsp;&nbsp;&nbsp;&nbsp;743763 | &nbsp;&nbsp;&nbsp;&nbsp;209332 |
| PPG Industries Inc. | 1492257 | &nbsp;&nbsp;&nbsp;&nbsp;194501 |
| International Flavors & Fragrances Inc. | 1618504 | &nbsp;&nbsp;&nbsp;&nbsp;182017 |
| Avery Dennison Corp. | &nbsp;&nbsp;&nbsp;&nbsp;514056 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97383 |
| Reliance Steel & Aluminum Co. | &nbsp;&nbsp;&nbsp;&nbsp;372509 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84727 |
| Packaging Corp. of America | &nbsp;&nbsp;&nbsp;&nbsp;588876 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84033 |
| Celanese Corp. Class A | &nbsp;&nbsp;&nbsp;&nbsp;638542 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78668 |
| RPM International Inc. | &nbsp;&nbsp;&nbsp;&nbsp;820140 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73739 |
| Eastman Chemical Co. | &nbsp;&nbsp;&nbsp;&nbsp;796269 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70207 |
| Royal Gold Inc. | &nbsp;&nbsp;&nbsp;&nbsp;416452 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52902 |
| AptarGroup Inc. | &nbsp;&nbsp;&nbsp;&nbsp;413588 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47827 |
| Sonoco Products Co. | &nbsp;&nbsp;&nbsp;&nbsp;618522 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37798 |
| Ashland Inc. | &nbsp;&nbsp;&nbsp;&nbsp;336725 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36794 |
| Silgan Holdings Inc. | &nbsp;&nbsp;&nbsp;&nbsp;529811 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28551 |
| Westlake Corp. | &nbsp;&nbsp;&nbsp;&nbsp;218998 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26882 |
| Cabot Corp. | &nbsp;&nbsp;&nbsp;&nbsp;356519 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26856 |
| Balchem Corp. | &nbsp;&nbsp;&nbsp;&nbsp;203835 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26627 |
| HB Fuller Co. | &nbsp;&nbsp;&nbsp;&nbsp;337172 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23299 |
| Avient Corp. | &nbsp;&nbsp;&nbsp;&nbsp;542227 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21971 |
| Sensient Technologies Corp. | &nbsp;&nbsp;&nbsp;&nbsp;268349 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20311 |
| Scotts Miracle-Gro Co. | &nbsp;&nbsp;&nbsp;&nbsp;258532 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18663 |
| Quaker Chemical Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86426 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17015 |
| Stepan Co. | &nbsp;&nbsp;&nbsp;&nbsp;134926 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14820 |
| Worthington Industries Inc. | &nbsp;&nbsp;&nbsp;&nbsp;191276 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10878 |
| Hawkins Inc. | &nbsp;&nbsp;&nbsp;&nbsp;122181 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4765 |
|  |  | **3867907** |
| **Utilities (3.2%)** | **Utilities (3.2%)** | **Utilities (3.2%)** |
| NextEra Energy Inc. | 12620378 | &nbsp;&nbsp;&nbsp;&nbsp;941859 |
| Xcel Energy Inc. | 3474573 | &nbsp;&nbsp;&nbsp;&nbsp;238946 |
| WEC Energy Group Inc. | 2003283 | &nbsp;&nbsp;&nbsp;&nbsp;188289 |
| Eversource Energy | 2211772 | &nbsp;&nbsp;&nbsp;&nbsp;182095 |

---

------

Dividend Appreciation Index Fund

---

| | | |
|:---|:---|:---|
|  | Shares | Market<br> Value• ($000) |
| American Water Works Co. Inc. | 1154688 | &nbsp;&nbsp;&nbsp;&nbsp;180697 |
| DTE Energy Co. | 1230440 | &nbsp;&nbsp;&nbsp;&nbsp;143186 |
| CMS Energy Corp. | 1843538 | &nbsp;&nbsp;&nbsp;&nbsp;116493 |
| Atmos Energy Corp. | &nbsp;&nbsp;&nbsp;&nbsp;868960 | &nbsp;&nbsp;&nbsp;&nbsp;102138 |
| Alliant Energy Corp. | 1595115 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86184 |
| Essential Utilities Inc. | 1516671 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70874 |
| IDACORP Inc. | &nbsp;&nbsp;&nbsp;&nbsp;320721 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33935 |
| National Fuel Gas Co. | &nbsp;&nbsp;&nbsp;&nbsp;578213 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33571 |
| New Jersey Resources Corp. | &nbsp;&nbsp;&nbsp;&nbsp;613546 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30628 |
| ONE Gas Inc. | &nbsp;&nbsp;&nbsp;&nbsp;343600 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28299 |
| American States Water Co. | &nbsp;&nbsp;&nbsp;&nbsp;234960 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22126 |
| California Water Service Group | &nbsp;&nbsp;&nbsp;&nbsp;348889 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21342 |
| MGE Energy Inc. | &nbsp;&nbsp;&nbsp;&nbsp;228365 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16696 |
| Chesapeake Utilities Corp. | &nbsp;&nbsp;&nbsp;&nbsp;112244 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14152 |
| SJW Group | &nbsp;&nbsp;&nbsp;&nbsp;170773 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13219 |
| Middlesex Water Co. | &nbsp;&nbsp;&nbsp;&nbsp;111994 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9392 |
| York Water Co. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89059 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4048 |
|  |  | **2478169** |
| **Total Common Stocks<br> (Cost $59,906,736)** | **Total Common Stocks<br> (Cost $59,906,736)** | **78284842** |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Shares** | **Market<br> Value• ($000)** |
| **Temporary Cash Investments (0.2%)** | **Temporary Cash Investments (0.2%)** | **Temporary Cash Investments (0.2%)** | **Temporary Cash Investments (0.2%)** |
| **Money Market Fund (0.2%)** | **Money Market Fund (0.2%)** | **Money Market Fund (0.2%)** | **Money Market Fund (0.2%)** |
| <sup>1</sup> | Vanguard Market Liquidity Fund, 4.437% **(Cost $159,229)** | 1592681 | **159252** |
| **Total Investments (99.9%) (Cost $60,065,965)** | **Total Investments (99.9%) (Cost $60,065,965)** | **Total Investments (99.9%) (Cost $60,065,965)** | **78444094** |
| **Other Assets and Liabilities—Net (0.1%)** | **Other Assets and Liabilities—Net (0.1%)** | **Other Assets and Liabilities—Net (0.1%)** | **89140** |
| **Net Assets (100%)** | **Net Assets (100%)** | **Net Assets (100%)** | **78533234** |
| Cost is in $000. | Cost is in $000. | Cost is in $000. | Cost is in $000. |

---

• See Note A in Notes to Financial Statements. <br> 1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

------

#### Derivative Financial Instruments Outstanding as of Period End

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts | Futures Contracts |
|  |  |  | ($000) | ($000) |
|  | Expiration | Number of<br> Long (Short)<br> Contracts | Notional<br> Amount | &nbsp;&nbsp;Value and<br> Unrealized<br> Appreciation<br> (Depreciation) |
| Long Futures Contracts |  |  |  |  |
| E-mini S&P 500 Index | March 2023 | 480 | 98160 | &nbsp;&nbsp;3450 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps | Over-the-Counter Total Return Swaps |
| Reference Entity | Termination<br> Date | &nbsp;&nbsp;&nbsp;Counterparty | &nbsp;&nbsp;&nbsp;Notional<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;Floating<br> Interest Rate<br> Received<br> (Paid)<sup>1</sup><br> (%) | &nbsp;&nbsp;&nbsp;Value and<br> Unrealized<br> Appreciation<br> ($000) | &nbsp;&nbsp;&nbsp;Value and<br> Unrealized<br> (Depreciation)<br> ($000) |
| Kroger Co. | 1/31/24 | &nbsp;&nbsp;&nbsp;GSI | &nbsp;&nbsp;&nbsp;&nbsp;44630 | &nbsp;&nbsp;&nbsp;(4.570) | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Visa Inc. Class A | 8/31/23 | &nbsp;&nbsp;&nbsp;BANA | &nbsp;&nbsp;&nbsp;102443 | &nbsp;&nbsp;&nbsp;(4.227) | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(315) |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;(315) |

---

---

| | |
|:---|:---|
| 1 | Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
|  | 1M—1-month. |
|  | BANA—Bank of America, N.A. |
|  | GSI—Goldman Sachs International. |

---

At January 31, 2023, the counterparties had deposited in segregated accounts securities with a value of $10,647,000 in connection with open over-the-counter swap contracts.

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unaffiliated Issuers (Cost $59,906,736) | 78284842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affiliated Issuers (Cost $159,229) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159252 |
| Total Investments in Securities | 78444094 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2921 |
| Cash Collateral Pledged—Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5090 |
| Cash Collateral Pledged—Over-the-Counter Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2040 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10106 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71869 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7485 |
| Variation Margin Receivable—Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1380 |
| **Total Assets** | **78544985** |
| **Liabilities** |  |
| Due to Custodian | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2123 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7030 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2163 |
| Unrealized Depreciation—Over-the-Counter Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;315 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11751** |
| **Net Assets** | **78533234** |
| **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | 62556656 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;15976578 |
| **Net Assets** | **78533234** |
| **ETF Shares—Net Assets** |  |
| **Applicable to 422,764,818 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **66062087** |
| **Net Asset Value Per Share—ETF Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$156.26** |
| **Admiral Shares—Net Assets** |  |
| **Applicable to 294,086,548 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**12471147** |
| **Net Asset Value Per Share—Admiral Shares** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**$42.41** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1524292 |
| Interest<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3566 |
| Securities Lending—Net | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1527860 |
| **Expenses** |  |
| The Vanguard Group—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;445 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;300 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 |
| Shareholders' Reports—ETF Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1388 |
| Shareholders' Reports—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27 |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47739 |
| Expenses Paid Indirectly | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) |
| Net Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47735 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1480125** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold<sup>1,2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2782977 |
| Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27234) |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2186 |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2757929** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5755218) |
| Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8999 |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(317) |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5746536)** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1508482)** |

---

---

| | |
|:---|:---|
| 1 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,463,000, ($3000), less than $1,000, and $23,000, respectively. Purchases and sales are for temporary cash investment purposes. |
| 2 | Includes $3,222,592,000 of net gain (loss) resulting from in-kind redemptions. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;1480125 | &nbsp;&nbsp;&nbsp;&nbsp;1283185 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;&nbsp;&nbsp;2757929 | &nbsp;&nbsp;&nbsp;&nbsp;7696290 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;(5746536) | &nbsp;&nbsp;&nbsp;&nbsp;3906835 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;(1508482) | &nbsp;&nbsp;&nbsp;12886310 |
| **Distributions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;(1250613) | &nbsp;&nbsp;&nbsp;&nbsp;(1043492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;(233770) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(206613) |
| Total Distributions | &nbsp;&nbsp;(1484383) | &nbsp;&nbsp;&nbsp;&nbsp;(1250105) |
| **Capital Share Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETF Shares | &nbsp;&nbsp;&nbsp;2946879 | &nbsp;&nbsp;&nbsp;&nbsp;4113142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87399 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;215802 |
| Net Increase (Decrease) from Capital Share Transactions | &nbsp;&nbsp;&nbsp;3034278 | &nbsp;&nbsp;&nbsp;&nbsp;4328944 |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41413 | &nbsp;&nbsp;&nbsp;15965149 |
| **Net Assets** |  |  |
| **Beginning of Period** | **78491821** | &nbsp;&nbsp;&nbsp;**62526672** |
| **End of Period** | **78533234** | &nbsp;&nbsp;&nbsp;**78491821** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ETF Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$162.69** | &nbsp;&nbsp;&nbsp;**$137.11** | &nbsp;&nbsp;&nbsp;**$125.38** | &nbsp;&nbsp;&nbsp;**$104.09** | &nbsp;&nbsp;&nbsp;**$107.10** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.982 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.736 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.299 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.214 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.084 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6.439) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.504 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.728 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.210 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.056) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3.457) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.240 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.424 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.972) |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.973) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.660) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.297) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.134) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.038) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.973) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.660) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.297) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.134) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2.038) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$156.26** | &nbsp;&nbsp;&nbsp;**$162.69** | &nbsp;&nbsp;&nbsp;**$137.11** | &nbsp;&nbsp;&nbsp;**$125.38** | &nbsp;&nbsp;&nbsp;**$104.09** |
| **Total Return** | &nbsp;&nbsp;&nbsp;**-2.02%** | &nbsp;&nbsp;&nbsp;**20.71%** | &nbsp;&nbsp;&nbsp;**11.44%** | &nbsp;&nbsp;&nbsp;**22.68%** | &nbsp;&nbsp;&nbsp;**-0.87%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$66062 | &nbsp;&nbsp;&nbsp;$65589 | &nbsp;&nbsp;&nbsp;$51842 | &nbsp;&nbsp;&nbsp;$42217 | &nbsp;&nbsp;&nbsp;$30969 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.06%<sup>2</sup> | &nbsp;&nbsp;&nbsp;0.06% | &nbsp;&nbsp;&nbsp;0.06% | &nbsp;&nbsp;&nbsp;0.06% | &nbsp;&nbsp;&nbsp;0.06% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;1.96% | &nbsp;&nbsp;&nbsp;1.74% | &nbsp;&nbsp;&nbsp;1.84% | &nbsp;&nbsp;&nbsp;1.90% | &nbsp;&nbsp;&nbsp;2.01% |
| Portfolio Turnover Rate<sup>3</sup> | &nbsp;&nbsp;&nbsp;12% | &nbsp;&nbsp;&nbsp;26% | &nbsp;&nbsp;&nbsp;25% | &nbsp;&nbsp;&nbsp;14% | &nbsp;&nbsp;&nbsp;16% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.06%. |
| 3 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Financial Highlights

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Admiral Shares** |  |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;2020 | &nbsp;&nbsp;&nbsp;2019 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$44.15** | &nbsp;&nbsp;&nbsp;**$37.21** | &nbsp;&nbsp;&nbsp;**$34.03** | &nbsp;&nbsp;&nbsp;**$28.25** | &nbsp;&nbsp;&nbsp;**$29.07** |
| **Investment Operations** |  |  |  |  |  |
| Net Investment Income<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.801 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.734 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.617 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.594 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.560 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.743) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.920 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.179 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.757 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.830) |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.942) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.654 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.796 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.351 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.270) |
| **Distributions** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.798) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.714) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.571) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.550) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.798) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.714) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.616) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.571) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.550) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$42.41** | &nbsp;&nbsp;&nbsp;**$44.15** | &nbsp;&nbsp;&nbsp;**$37.21** | &nbsp;&nbsp;&nbsp;**$34.03** | &nbsp;&nbsp;&nbsp;**$28.25** |
| **Total Return<sup>2</sup>** | &nbsp;&nbsp;&nbsp;**-2.02%** | &nbsp;&nbsp;&nbsp;**20.67%** | &nbsp;&nbsp;&nbsp;**11.44%** | &nbsp;&nbsp;&nbsp;**22.65%** | &nbsp;&nbsp;&nbsp;**-0.89%** |
| **Ratios/Supplemental Data** |  |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$12471 | &nbsp;&nbsp;&nbsp;$12903 | &nbsp;&nbsp;&nbsp;$10685 | &nbsp;&nbsp;&nbsp;$9955 | &nbsp;&nbsp;&nbsp;$6755 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.08%<sup>3</sup> | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% | &nbsp;&nbsp;&nbsp;0.08% |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;1.94% | &nbsp;&nbsp;&nbsp;1.72% | &nbsp;&nbsp;&nbsp;1.82% | &nbsp;&nbsp;&nbsp;1.87% | &nbsp;&nbsp;&nbsp;1.99% |
| Portfolio Turnover Rate<sup>4</sup> | &nbsp;&nbsp;&nbsp;12% | &nbsp;&nbsp;&nbsp;26% | &nbsp;&nbsp;&nbsp;25% | &nbsp;&nbsp;&nbsp;14% | &nbsp;&nbsp;&nbsp;16% |

---

---

| | |
|:---|:---|
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%. |
| 4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund's capital shares, including ETF Creation Units. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

Dividend Appreciation Index Fund

Notes to Financial Statements

Vanguard Dividend Appreciation Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca, Inc.; they can be purchased and sold through a broker.

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

**A.** The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund's performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.

------

Dividend Appreciation Index Fund

During the year ended January 31, 2023, the fund's average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund's target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund's maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty's default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the year ended January 31, 2023, the fund's average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations,

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Dividend Appreciation Index Fund

which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and

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Dividend Appreciation Index Fund

borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

**B.** In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing,
and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are
generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $2,921,000, representing less than 0.01% of the fund's net assets and 1.17% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

**C.** The fund's custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended January 31, 2023, custodian fee offset
arrangements reduced the fund's expenses by $4,000 (an annual rate of less than 0.01% of average net assets).

**D.** Various inputs may be used to determine the value of the fund's investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes.
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

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Dividend Appreciation Index Fund

**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.**

The following table summarizes the market value of the fund's investments and derivatives as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks | 78284842 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;78284842 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159252 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159252 |
| Total | 78444094 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;78444094 |
| **Derivative Financial Instruments** |  |  |  |  |
| Assets |  |  |  |  |
| Futures Contracts<sup>1</sup> | 3450 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;3450 |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Total | 3450 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;3450 |
| Liabilities |  |  |  |  |
| Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;315 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;315 |

---

1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities.

**E.** Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no
effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable in-kind redemptions and swap agreements were reclassified between the
following accounts:

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Paid-in Capital | &nbsp;&nbsp;&nbsp;&nbsp;3222290 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;(3222290) |

---

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; and the recognition

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Dividend Appreciation Index Fund

of unrealized gains or losses from certain derivative contracts. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125286 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;&nbsp;(2492949) |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;18344241 |

---

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;1484383 | &nbsp;&nbsp;&nbsp;&nbsp;1250105 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Total | &nbsp;&nbsp;&nbsp;1484383 | &nbsp;&nbsp;&nbsp;&nbsp;1250105 |

---

\* Includes short-term capital gains, if any.

As of January 31, 2023, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;60099853 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;20171860 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(1827619) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;18344241 |

---

**F.** During the year ended January 31, 2023, the fund purchased $19,080,149,000 of investment securities and sold $16,031,896,000 of investment securities, other than temporary cash investments. Purchases and sales
include $9,593,420,000 and $6,953,201,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended January 31, 2023, such purchases were $795,326,000 and sales were $726,474,000, resulting in net realized loss of $34,386,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

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Dividend Appreciation Index Fund

**G.** Capital share transactions for each class of shares were:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |  |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **ETF Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;9908220 | &nbsp;&nbsp;&nbsp;&nbsp;64894 | &nbsp;&nbsp;&nbsp;&nbsp;22417718 | &nbsp;&nbsp;&nbsp;&nbsp;148569 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Redeemed | (6961341) | &nbsp;&nbsp;(45275) | &nbsp;&nbsp;(18304576) | &nbsp;&nbsp;(123525) |
| Net Increase (Decrease)—ETF Shares | &nbsp;&nbsp;2946879 | &nbsp;&nbsp;&nbsp;&nbsp;19619 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4113142 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25044 |
| **Admiral Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;1662170 | &nbsp;&nbsp;&nbsp;&nbsp;40062 | &nbsp;&nbsp;&nbsp;&nbsp;1970820 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46680 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;199774 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4966 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176877 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4201 |
| Redeemed | (1774545) | &nbsp;&nbsp;(43189) | &nbsp;&nbsp;&nbsp;&nbsp;(1931895) | &nbsp;&nbsp;&nbsp;&nbsp;(45799) |
| Net Increase (Decrease)—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87399 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1839 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;215802 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5082 |

---

**H.** Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Dividend Appreciation Index Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Dividend Appreciation Index Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023, the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended January 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the five years in the period ended January 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

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#### Tax information (unaudited)
For corporate shareholders, 97.0%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $1,484,383,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $996,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

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The "S&P U.S. Dividend Growers Index" is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"), and has been licensed for use by Vanguard. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ("S&P") and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by Vanguard. Vanguard Dividend Appreciation Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of Vanguard Dividend Appreciation Index Fund or any member of the public regarding the advisability of investing in securities generally or in Vanguard Dividend Appreciation Index Fund particularly or the ability of the S&P U.S. Dividend Growers Index to track general market performance. S&P Dow Jones Indices' only relationship to Vanguard with respect to the S&P U.S. Dividend Growers Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P U.S. Dividend Growers Index is determined, composed and calculated by S&P Dow Jones Indices without regard to Vanguard or Vanguard Dividend Appreciation Index Fund. S&P Dow Jones Indices have no obligation to take the needs of Vanguard or the owners of Vanguard Dividend Appreciation Index Fund into consideration in determining, composing or calculating the S&P U.S. Dividend Growers Index. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of Vanguard Dividend Appreciation Index Fund or the timing of the issuance or sale of Vanguard Dividend Appreciation Index Fund or in the determination or calculation of the equation by which Vanguard Dividend Appreciation Index Fund is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of Vanguard Dividend Appreciation Index Fund. There is no assurance that investment products based on the S&P U.S. Dividend Growers Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P U.S. DIVIDEND GROWERS INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY VANGUARD, OWNERS OF VANGUARD DIVIDEND APPRECIATION INDEX FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S& P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF 40 SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND VANGUARD, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

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experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. (investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School

(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

------

#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) and deputy chief compliance officer (2017–2019) of State Street.

#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

---

| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. Mclsaac** | **Lauren Valente** |

---

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![](tm234052d2divappindarq60i006.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> U.S. Patent Nos. 6,879,964.<br> Vanguard Marketing Corporation, Distributor.

Q6020 032023

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![](tm234052d2globesglstoq54i001.jpg)

#### Annual Report \| January 31, 2023
Vanguard Global ESG Select Stock Fund

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*Contents*

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| | |
|:---|:---|
| [Your Fund's Performance at a Glance](#xx_869b6548-2b0e-4ada-8ffc-9512680e2060_1tm234052d2_globesglstoq5470)<br>| 1 |
| [Advisor's Report](#xx_67b3e810-a39f-4b4b-95d1-0ed47ffd2280_1tm234052d2_globesglstoq5470)<br>| 2 |
| [AboutYour Fund's Expenses](#xx_71873d3a-dfd4-4f80-9f2d-5d2447546ed1_1tm234052d2_globesglstoq5470)<br>| 6 |
| [Performance Summary](#xx_f8482674-46ef-4b36-878d-1deebdf4e3bd_1tm234052d2_globesglstoq5470)<br>| 8 |
| [Financial Statements](#xx_853d97d1-21bb-42cc-9aaf-ecbbe802bfff_1tm234052d2_globesglstoq5470)<br>| 10 |
| [Trustees Approve Advisory Arrangement](#xx_8bf583fe-b50e-4e35-93e3-376dc53aceb6_1tm234052d2_globesglstoq5470)<br>| 24 |

---

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

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[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Your Fund's Performance at a Glance

• Vanguard Global ESG Select Stock Fund returned –2.39% for Investor Shares and –2.27% for Admiral Shares for the 12 months ended January 31, 2023. It outperformed its benchmark, the FTSE All-World Index,
which returned –7.53%.

• Despite some relief in midsummer and toward the end of the period, it was a volatile, challenging time for financial markets. Early on, inflation across much of the world continued climbing to multidecade highs amid
supply-chain bottlenecks, rising energy and food prices, and broader price increases in goods and services. Central banks responded by aggressively tightening monetary policy. Later, it appeared that inflation might
have peaked, and central banks began slowing their pace of interest rate hikes.

• The fund had negative absolute returns in seven of the 10 industry sectors it invests in. Materials detracted most relative to the benchmark. Information technology, consumer discretionary, and financials were net
contributors.

• By market, U.S., Spanish, and Hong Kong stocks lifted relative returns the most. Canadian, Danish, and French stocks were net detractors, as was a lack of holdings in Australia.

• From the fund's June 5, 2019, inception through January 31, 2023, its annualized average returns of 13.34% for Investor Shares and 13.46% for Admiral Shares outpaced the
benchmark's 9.33% average return.

*Market Barometer*

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Year | &nbsp;&nbsp;&nbsp;&nbsp;Three Years | &nbsp;&nbsp;&nbsp;&nbsp;Five Years |
| **Stocks** |  |  |  |
| Russell 1000 Index (Large-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.38% |
| Russell 2000 Index (Small-caps) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | &nbsp;&nbsp;&nbsp;&nbsp;5.54 |
| Russell 3000 Index (Broad U.S. market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.51 | &nbsp;&nbsp;&nbsp;&nbsp;9.12 |
| FTSE All-World ex US Index (International) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-5.39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | &nbsp;&nbsp;&nbsp;&nbsp;1.73 |
| **Bonds** |  |  |  |
| Bloomberg U.S. Aggregate Float Adjusted Index<br> (Broad taxable market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-8.40% | &nbsp;&nbsp;&nbsp;&nbsp;-2.34% | &nbsp;&nbsp;&nbsp;&nbsp;0.89% |
| Bloomberg Municipal Bond Index<br> (Broad tax-exempt market) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-3.25 | &nbsp;&nbsp;&nbsp;&nbsp;-0.42 | &nbsp;&nbsp;&nbsp;&nbsp;2.07 |
| FTSE Three-Month U.S. Treasury Bill Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.29 |
| **CPI** |  |  |  |
| Consumer Price Index | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.41% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06% | &nbsp;&nbsp;&nbsp;&nbsp;3.83% |

---

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[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Advisor's Report

For the 12 months ended January 31, 2023, Vanguard Global ESG Select Stock Fund returned –2.39% for Investor Shares and –2.27% for Admiral Shares, outperforming the –7.53% return of its benchmark, the FTSE All-World Index.

#### The investment environment
For the 12 months, global equities declined as markets were rattled by slowing economic growth, increased inflation, rising interest rates, and COVID-19 resurgences in some countries. Equities opened 2022 lower as volatility spiked sharply, driven by rising geopolitical instability and tighter monetary policy aimed at addressing accelerating inflation. Russia's attack on Ukraine forced millions to flee Ukraine as fighting intensified. U.S. and NATO allies imposed severe sanctions on Russia, largely cutting off its economy from global financial markets and limiting its central bank's ability to take counteractive measures.

Global equities fell sharply in the second quarter, with volatility remaining elevated as investors grew increasingly concerned about the economic toll of persistent geopolitical instability, soaring inflation, and constrained supply chains. Energy prices continued to rise as the crisis in Ukraine severely pressured oil and natural gas supplies.

In the third quarter, global equities fell as risk-off sentiment was driven by higher inflation, rising rates, geopolitical turmoil, and growing signs of a global slowdown. The U.S. Federal Reserve raised its target interest rate by 150 basis points over the quarter to rein in decades-high inflation. The European Central Bank ended its

negative interest rate policy, raising rates by 125 basis points over the quarter. (A basis point is one-hundredth of a percentage point.)

Stocks rallied in the fourth quarter and the start of 2023 as investors were encouraged by milder inflation, which provided greater scope for some major central banks to slow their pace of rate hikes. In contrast, market sentiment was dented by anxiety about tighter central bank policy amid weakening global growth and cautious corporate commentary that added to fears of recession. Chinese equities soared after investors grew bullish on China's 2023 economic outlook following the government's abrupt COVID-19 pivot that ended mass testing, lockdowns, and quarantine for international travelers.

#### Our successes and shortfalls
The fund's outperformance of its benchmark was driven primarily by strong stock selection in the information technology, consumer discretionary, and financial sectors, while selection in materials and industrials detracted. Sector allocation, a result of our bottom-up selection, did not meaningfully affect relative performance.

Merck and AIA Group were among the fund's top relative contributors. Merck is a global health care company that markets prescription medicines, vaccines, biologic therapies, animal health, and consumer care products both directly and through joint ventures. We expect Merck's stable return on capital to accelerate as it leans into its new drug pipeline and expands the use cases for its immunotherapy drug Keytruda. Merck has a forward-looking

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approach to long-term strategic issues, with a strong focus on internal talent development alongside a strong board and great management team. The company is in a strong position after the 2021 spin-off of its reproductive health business, Organon, with additional capital to invest into organic and inorganic research and development to further expand its leadership as a research-intensive biopharmaceutical company.

The share price of AIA, a Hong Kong-based multinational insurance company, climbed after management reported a rebound in new business value in China and Hong Kong following the easing of pandemic curbs. The company saw sales growth in both older branches and new locations in mainland China, supported by a rebound in activity in Shanghai. Its Hong Kong business was helped by sales to mainland Chinese visitors through Macau as well as Bank of East Asia outlets. AIA's culture values staff and customers, recognizing the importance of trust and human capital to the business's long-term success. It focuses closely on knowing its customers and treating them fairly through data protection and cybersecurity oversight and has a strong whistleblower policy. We believe AIA has attractive long-term growth prospects in developing regions like China that are beginning to embrace financial planning and more sophisticated savings vehicles.

Recruit Holdings, a Japan-based human resources company, was among the biggest relative detractors for the 12 months. Market sentiment weighed on its share price as investors grew increasingly

concerned about a possible recession or downturn that would hinder Recruit's ability to generate revenue amid a slowdown in worldwide staffing. Recruit focuses on creating value through information, with its long-term success requiring a strong emphasis on ethics and data protection as well as adaptability to changing expectations from customers and society. The management team is highly innovative and adaptable, enabling it to successfully digitalize the company's business model.

#### The fund's positioning and investment strategy
Our investment philosophy is grounded in the idea that sustainable financial strength plus superior stewardship is a powerful combination, often overlooked as a source of competitive advantage and a driver of alpha. We believe the best way to balance return and responsibility is to extend the investment time horizon, because these considerations converge over the long term. The portfolio thus reflects our conviction that:

• Companies with high returns on capital and strong stewardship are advantaged in outperforming peers and the market.

• Patience and portfolio construction are two core disciplines that allow us to focus and develop differentiated insights that ultimately drive shareholder returns over the long term.

• Active ownership through engagement and proxy voting are fiduciary responsibilities that can positively influence company behavior and reinforce the tenets that we believe lead to
sustained outperformance.

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Rather than focus exclusively on environmental, social, and governance factors, our approach takes a more holistic view of corporate responsibility. We call this stewardship. We do not rely on third-party ESG research or prescribed ESG screening methodologies. Rather, the portfolio is constructed by selecting stocks based on their individual merits and by applying our own quantitative and qualitative judgment to ensure that each company meets our high standards for stewardship.

Our investment universe is focused on the largest and most liquid global equities, which initially biases our selection to companies that have been around the longest, with higher-than-average returns on equity and more sophisticated approaches to stewardship, consistent with our investment framework. Our approach is to seek to invest in what we believe to be the "best of the best." We then conduct detailed fundamental analysis on each company, evaluating the sustainability of financial returns, the history of capital allocation, ESG priorities, aptitude and attitude toward engagement, and a company's desire to pursue best-in-class stewardship.

A critical element of the research process involves understanding how companies balance the interests of all stakeholders, prioritize ESG risks and opportunities, and integrate material ESG factors into strategy and long-term planning. Ultimately, we typically invest in around 35 to 45 stocks across regions and sectors that meet our fundamental and stewardship criteria. Valuation does not drive investment decisions but is used as an input for position sizing. The portfolio is

constructed to reduce country, sector, and style biases, so that stock-specific factors are the main drivers of risk and return.

The past year's challenges contrasted with the supportive macroeconomic backdrop of the prevailing cycle, which arguably had been in place for 10-plus years. Although we do not make top-down forecasts to position the portfolio, the world is changing as we examine things from the bottom up, reinforcing the importance of owning adaptable companies. Looking ahead, we believe companies will face higher inflation, rates, and cost of capital. We see labor challenges persisting in many regions, particularly as companies try to recruit and retain entry-level workers. The balance of power is shifting away from the providers of capital, and this is likely to result in upward, secular pressure on wages. As another example, COVID-19 exposed the fragility of just-in-time inventory and complex, multinational supply chains. We expect an evolution to increased onshoring, diversified and redundant sourcing, and higher inventory levels. This will also increase input costs over time.

We see two important investment implications from this macroeconomic shift. First, it will become even more important for companies to successfully balance the needs of shareholders and stakeholders. We have always assessed managements and boards on their ability to consider important trade-offs and to act in a way that maximizes the benefit to all. In coming years, leading companies will outperform based on their capacity to attract, pay, and retain talent. They will equally distinguish themselves by strengthening supply chains to be more

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resilient and dependable. Success in these areas will have to be weighed against the obligation to provide an attractive return to investors. We will continue to favor companies that we believe can solve this multidimensional puzzle.

Second, there will be more emphasis on strong stewards of capital and resources. We believe these leaders will increasingly be recognized across a broad set of industries and geographies. At the risk of overgeneralization, the market disproportionately valued tech and consumer relative to cyclical sectors for the 10 years leading into 2022. The same can be said for U.S. stocks relative to the rest of the world and for companies with high top-line growth. Now it seems the regime is changing. Our portfolio is not dependent on the status quo nor on one particular path forward.

We believe it is our fiduciary duty to actively engage with portfolio companies, on behalf of fund holders. We aim to support or influence decisions that can maximize long-term stakeholder and shareholder value. Leveraging Wellington's corporate access and relationships, we engage directly with company managements and boards to identify and understand ESG risks and opportunities. We challenge insular thinking. We help prioritize governance factors that matter to longstanding owners. We offer guidance on environmental and social issues for which companies may lack broader perspective.

Lastly, engagement enables us to hold boards and managements accountable for their actions. We hope to invest in

companies that prioritize their long-term health and sustained returns on capital rather than capitulating to short-term performance pressures and seeking growth at all costs. We are particularly attracted to situations where we believe financial returns may be higher or last longer than the market anticipates. To support these aspirations, we aim to meet at least annually with managements and a board director for every security we own, focusing on the ESG considerations that we believe are most material to creating long-term value.

Mark D. Mandel, CFA,

Senior Managing Director,<br> Equity Portfolio Manager

Yolanda C. Courtines, CFA,

Senior Managing Director,<br> Equity Portfolio Manager

Wellington Management Company llp

February 13, 2023

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About Your Fund's Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund.

A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund's costs in two ways:

**•** **Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.** 

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading "Expenses Paid During Period."

**•** **Based on hypothetical 5% yearly return. This section is intended to help you compare your fund's costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund's actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.** 

Note that the expenses shown in the table are meant to highlight and help you compare *ongoing* costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a "sales load."

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund's expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund's current prospectus.

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| | | | |
|:---|:---|:---|:---|
| **Six Months Ended January 31, 2023** |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning<br> Account Value<br> 7/31/2022 | &nbsp;&nbsp;&nbsp;&nbsp;Ending<br> Account Value<br> 1/31/2023 | &nbsp;&nbsp;&nbsp;&nbsp;Expenses<br> Paid During<br> Period |
| **Based on Actual Fund Return** |  |  |  |
| Global ESG Select Stock Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1063.40 | &nbsp;&nbsp;&nbsp;&nbsp;$3.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral™ Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1064.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.50 |
| **Based on Hypothetical 5% Yearly Return** |  |  |  |
| Global ESG Select Stock Fund |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;$1022.28 | &nbsp;&nbsp;&nbsp;&nbsp;$2.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000.00 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1022.79 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.45 |

---

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.58% for Investor Shares and 0.48% for Admiral Shares. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

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Global ESG Select Stock Fund

Performance Summary

**All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor's shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.**

#### Cumulative Performance: June 5, 2019, Through January 31, 2023
Initial Investment of $10,000

![](tm234052d2globesglstoq54i002.jpg)

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 | &nbsp;&nbsp;&nbsp;Average Annual Total Returns<br> Periods Ended January 31, 2023 |  |
|  |  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Since<br> Inception<br> (6/5/2019) | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $10,000<br> Investment |
| ![](tm234052d2globesglstoq54i003.jpg) | &nbsp;&nbsp;&nbsp;Global ESG Select Stock Fund Investor Shares | &nbsp;&nbsp;&nbsp;-2.39% | &nbsp;&nbsp;&nbsp;&nbsp;13.34% | &nbsp;&nbsp;&nbsp;&nbsp;$15811 |
| ![](tm234052d2globesglstoq54i004.jpg) | &nbsp;&nbsp;&nbsp;FTSE All-World Index | &nbsp;&nbsp;&nbsp;-7.53 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.33 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13859 |

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"Since Inception" performance is calculated from the Investor Shares' inception date for both the fund and its comparative standard(s).

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;One<br> Year | &nbsp;&nbsp;&nbsp;&nbsp;Since<br> Inception<br> (6/5/2019) | &nbsp;&nbsp;&nbsp;&nbsp;Final Value<br> of a $50,000<br> Investment |
| Global ESG Select Stock Fund Admiral Shares | &nbsp;&nbsp;&nbsp;-2.27% | &nbsp;&nbsp;&nbsp;13.46% | &nbsp;&nbsp;&nbsp;&nbsp;$79355 |
| FTSE All-World Index | &nbsp;&nbsp;&nbsp;-7.53 | &nbsp;&nbsp;&nbsp;&nbsp;9.33 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69293 |

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"Since Inception" performance is calculated from the Admiral Shares' inception date for both the fund and its comparative standard(s).

See Financial Highlights for dividend and capital gains information.

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[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Fund Allocation

As of January 31, 2023

---

| | |
|:---|:---|
| United States | 43.7% |
| Netherlands | 10.0 |
| United Kingdom | &nbsp;&nbsp;&nbsp;8.7 |
| France | &nbsp;&nbsp;&nbsp;6.9 |
| Spain | &nbsp;&nbsp;&nbsp;6.3 |
| Japan | &nbsp;&nbsp;&nbsp;5.4 |
| Taiwan | &nbsp;&nbsp;&nbsp;5.0 |
| Canada | &nbsp;&nbsp;&nbsp;4.9 |
| Switzerland | &nbsp;&nbsp;&nbsp;3.4 |
| Hong Kong | &nbsp;&nbsp;&nbsp;3.0 |
| Singapore | &nbsp;&nbsp;&nbsp;2.7 |

---

The table reflects the fund's investments, except for short-term investments.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Financial Statements

Schedule of Investments

As of January 31, 2023

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at www.sec.gov.

---

| | | |
|:---|:---|:---|
|  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **Common Stocks (97.6%)** | **Common Stocks (97.6%)** | **Common Stocks (97.6%)** |
| **Canada (4.7%)** | **Canada (4.7%)** | **Canada (4.7%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank of Nova Scotia | &nbsp;&nbsp; 488311 | 26435 |
| &nbsp;&nbsp;&nbsp;&nbsp;BCE Inc. | &nbsp;&nbsp; 312349 | &nbsp;&nbsp; 14766 |
|  |  | &nbsp;&nbsp; **41201** |
| **France (6.8%)** | **France (6.8%)** | **France (6.8%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cie Generale des Etablissements Michelin SCA | &nbsp;&nbsp;&nbsp;&nbsp;788409 | 24929 |
| &nbsp;&nbsp;&nbsp;&nbsp;Schneider Electric SE | &nbsp;&nbsp;&nbsp; 107188 | &nbsp;&nbsp; 17388 |
| &nbsp;&nbsp;&nbsp;&nbsp;L'Oreal SA | &nbsp;&nbsp;&nbsp;&nbsp;39851 | &nbsp;&nbsp; 16455 |
|  |  | &nbsp;&nbsp; **58772** |
| **Hong Kong (2.9%)** | **Hong Kong (2.9%)** | **Hong Kong (2.9%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;AIA Group Ltd. | &nbsp;&nbsp;&nbsp;2247119 | &nbsp;&nbsp; 25410 |
| **Japan (5.3%)** | **Japan (5.3%)** | **Japan (5.3%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Recruit Holdings Co. Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;920800 | &nbsp;&nbsp; 29613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mitsubishi UFJ Financial Group Inc. | 2264800 | &nbsp;&nbsp; 16589 |
|  |  | &nbsp;&nbsp; **46202** |
| **Netherlands (9.8%)** | **Netherlands (9.8%)** | **Netherlands (9.8%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Koninklijke DSM NV | &nbsp;&nbsp; 212027 | &nbsp;&nbsp; 27267 |
| &nbsp;&nbsp;&nbsp;&nbsp;ING Groep NV | &nbsp;&nbsp;1787369 | 25882 |
| &nbsp;&nbsp;&nbsp;&nbsp;ASML Holding NV (Registered) NYRS | &nbsp;&nbsp; 26764 | &nbsp;&nbsp; 17687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wolters Kluwer NV | &nbsp;&nbsp; 123960 | &nbsp;&nbsp; 13514 |
| &nbsp;&nbsp;&nbsp;&nbsp;ASML Holding NV | &nbsp;&nbsp; 815 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;539 |
|  |  | &nbsp;&nbsp; **84889** |
| **Singapore (2.6%)** | **Singapore (2.6%)** | **Singapore (2.6%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;DBS Group Holdings Ltd. | &nbsp;&nbsp; 828187 | 22673 |
| **Spain (6.1%)** | **Spain (6.1%)** | **Spain (6.1%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Industria de Diseno Textil SA | &nbsp;&nbsp;&nbsp;&nbsp;996668 | &nbsp;&nbsp; 31117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Iberdrola SA (XMAD) | 1846964 | 21668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Iberdrola SA | &nbsp;&nbsp;&nbsp;&nbsp;30045 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;351 |
|  |  | &nbsp;&nbsp; **53136** |
| **Switzerland (3.3%)** | **Switzerland (3.3%)** | **Switzerland (3.3%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Novartis AG (Registered) | &nbsp;&nbsp; 321418 | 29059 |
| **Taiwan (4.9%)** | **Taiwan (4.9%)** | **Taiwan (4.9%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Taiwan Semiconductor Manufacturing Co. Ltd. | &nbsp;&nbsp;2393163 | 42232 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Shares | &nbsp;&nbsp;Market<br> Value• ($000) |
| **United Kingdom (8.5%)** | **United Kingdom (8.5%)** | **United Kingdom (8.5%)** | **United Kingdom (8.5%)** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;GSK plc | 1285242 | 22575 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;National Grid plc | &nbsp;&nbsp;1643180 | 20889 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Compass Group plc | &nbsp;&nbsp;&nbsp;&nbsp;633920 | &nbsp;&nbsp; 15143 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Diageo plc | &nbsp;&nbsp;&nbsp;&nbsp;342738 | &nbsp;&nbsp; 14987 |
| **** |  |  | &nbsp;&nbsp; **73594** |
| **United States (42.7%)** | **United States (42.7%)** | **United States (42.7%)** | **United States (42.7%)** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Microsoft Corp. | &nbsp;&nbsp; 179736 | 44540 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Prologis Inc. | &nbsp;&nbsp; 237297 | 30678 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Visa Inc. Class A | &nbsp;&nbsp; 133047 | 30629 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Home Depot Inc. | &nbsp;&nbsp;&nbsp;&nbsp;89739 | 29091 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Northern Trust Corp. | &nbsp;&nbsp;&nbsp;&nbsp;290466 | &nbsp;&nbsp; 28166 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Texas Instruments Inc. | &nbsp;&nbsp; 152957 | &nbsp;&nbsp; 27106 |
| <sup>\*</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Edwards Lifesciences Corp. | &nbsp;&nbsp;&nbsp;&nbsp;335234 | &nbsp;&nbsp; 25712 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Cisco Systems Inc. | &nbsp;&nbsp; 517824 | 25202 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Merck & Co. Inc. | &nbsp;&nbsp;&nbsp;&nbsp;223602 | &nbsp;&nbsp; 24017 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Deere & Co. | &nbsp;&nbsp;&nbsp;&nbsp;46883 | &nbsp;&nbsp; 19824 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Ecolab Inc. | &nbsp;&nbsp; 113661 | &nbsp;&nbsp; 17598 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Progressive Corp. | &nbsp;&nbsp; 114250 | &nbsp;&nbsp; 15578 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Accenture plc Class A | &nbsp;&nbsp;&nbsp;&nbsp;54731 | &nbsp;&nbsp; 15273 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Colgate-Palmolive Co. | &nbsp;&nbsp; 185575 | &nbsp;&nbsp; 13831 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Trane Technologies plc | &nbsp;&nbsp; 73147 | &nbsp;&nbsp; 13102 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Automatic Data Processing Inc. | &nbsp;&nbsp;&nbsp;&nbsp;45990 | &nbsp;&nbsp; 10385 |
| **** |  |  | &nbsp;&nbsp;**370732** |
| **Total Common Stocks<br> (Cost $754,296)** | **Total Common Stocks<br> (Cost $754,296)** | **Total Common Stocks<br> (Cost $754,296)** | **847900** |

---

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Shares** | &nbsp;&nbsp;**Market<br> Value• ($000)** |
| **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** | **Temporary Cash Investments (2.7%)** |
| **Money Market Fund (2.7%)** | **Money Market Fund (2.7%)** | **Money Market Fund (2.7%)** | **Money Market Fund (2.7%)** |
| <sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;Vanguard Market Liquidity Fund, 4.437%<br> **(Cost $23,400)** | &nbsp;&nbsp;&nbsp;&nbsp;234043 | **23402** |
| **Total Investments (100.3%)<br> (Cost $777,696)** | **Total Investments (100.3%)<br> (Cost $777,696)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**871302** |
| **Other Assets and Liabilities—Net (-0.3%)** | **Other Assets and Liabilities—Net (-0.3%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2357)** |
| **Net Assets (100%)** | **Net Assets (100%)** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**868945** |

---

Cost is in $000.

• See Note A in Notes to Financial Statements.

\* Non-income-producing security. <br> 1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Statement of Assets and Liabilities

As of January 31, 2023

---

| | |
|:---|:---|
| ($000s, except shares, footnotes, and per-share amounts) | &nbsp;&nbsp;Amount |
| **Assets** |  |
| Investments in Securities, at Value |  |
| &nbsp;&nbsp;Unaffiliated Issuers (Cost $754,296) | 847900 |
| &nbsp;&nbsp;Affiliated Issuers (Cost $23,400) | &nbsp;&nbsp;&nbsp;23402 |
| Total Investments in Securities | &nbsp;&nbsp;871302 |
| Investment in Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30 |
| Foreign Currency, at Value (Cost $942) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;942 |
| Receivables for Investment Securities Sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 |
| Receivables for Accrued Income | &nbsp;&nbsp;&nbsp;&nbsp;1033 |
| Receivables for Capital Shares Issued | &nbsp;&nbsp;&nbsp;&nbsp;1719 |
| **Total Assets** | **875035** |
| **Liabilities** |  |
| Payables for Investment Securities Purchased | &nbsp;&nbsp;&nbsp;&nbsp;5221 |
| Payables for Capital Shares Redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;272 |
| Payables to Investment Advisor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;499 |
| Payables to Vanguard | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98 |
| **Total Liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;**6090** |
| **Net Assets** | **868945** |
| <br> <br> **At January 31, 2023, net assets consisted of:** |  |
| Paid-in Capital | 787966 |
| Total Distributable Earnings (Loss) | &nbsp;&nbsp;&nbsp;80979 |
| **Net Assets** | **868945** |
| **Investor Shares—Net Assets** |  |
| **Applicable to 6,004,802 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | **177808** |
| **Net Asset Value Per Share—Investor Shares** | &nbsp;&nbsp;&nbsp;**$29.61** |
| **Admiral Shares—Net Assets** |  |
| **Applicable to 18,665,759 outstanding $.001 par value shares of<br> beneficial interest (unlimited authorization)** | &nbsp;&nbsp;**691137** |
| **Net Asset Value Per Share—Admiral Shares** | &nbsp;&nbsp;&nbsp;**$37.03** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Statement of Operations

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year Ended<br> January 31, 2023 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($000) |
| **Investment Income** |  |
| **Income** |  |
| Dividends<sup>1</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17942 |
| Interest<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;339 |
| Total Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18281 |
| **Expenses** |  |
| Investment Advisory Fees—Note B |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Adjustment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;174 |
| The Vanguard Group—Note C |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and Administrative—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and Distribution—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29 |
| Custodian Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25 |
| Auditing Fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33 |
| Shareholders' Reports—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26 |
| Shareholders' Reports—Admiral Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 |
| Trustees' Fees and Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Other Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 |
| Total Expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3706 |
| **Net Investment Income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14575** |
| **Realized Net Gain (Loss)** |  |
| Investment Securities Sold<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12581) |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(338) |
| **Realized Net Gain (Loss)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(12919)** |
| **Change in Unrealized Appreciation (Depreciation)** |  |
| Investment Securities<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12481) |
| Foreign Currencies | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 |
| **Change in Unrealized Appreciation (Depreciation)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(12470)** |
| **Net Increase (Decrease) in Net Assets Resulting from Operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(10814)** |

---

---

| | |
|:---|:---|
| 1 | Dividends are net of foreign withholding taxes of $1,245,000. |
| 2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $339,000, ($5000), less than $1,000, and $2,000, respectively. Purchases and sales are for temporary cash investment purposes. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Statement of Changes in Net Assets

---

| | | |
|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, |
|  | 2023<br> ($000) | &nbsp;&nbsp;&nbsp;2022<br> ($000) |
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations** |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;14575 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9979 |
| Realized Net Gain (Loss) | &nbsp;&nbsp;(12919) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9849 |
| Change in Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;(12470) | &nbsp;&nbsp;&nbsp;&nbsp;70974 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | &nbsp;&nbsp;(10814) | &nbsp;&nbsp;&nbsp;&nbsp;90802 |
| **Distributions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;(3362) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | &nbsp;&nbsp;(13272) | &nbsp;&nbsp;&nbsp;&nbsp;(14372) |
| Total Distributions | &nbsp;&nbsp;(16634) | &nbsp;&nbsp;&nbsp;&nbsp;(18473) |
| **Capital Share Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor Shares | &nbsp;&nbsp;&nbsp;15722 | &nbsp;&nbsp;&nbsp;&nbsp;65231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admiral Shares | 105498 | &nbsp;&nbsp;&nbsp;304765 |
| Net Increase (Decrease) from Capital Share Transactions | 121220 | &nbsp;&nbsp;&nbsp;369996 |
| Total Increase (Decrease) | &nbsp;&nbsp;&nbsp;93772 | &nbsp;&nbsp;&nbsp;442325 |
| **Net Assets** |  |  |
| **Beginning of Period** | **775173** | &nbsp;&nbsp;&nbsp;**332848** |
| **End of Period** | **868945** | &nbsp;&nbsp;&nbsp;**775173** |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Financial Highlights

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investor Shares** |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;May 21,<br> 2019<sup>1</sup> to<br> January 31,<br> 2020 |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;May 21,<br> 2019<sup>1</sup> to<br> January 31,<br> 2020 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$30.97** | &nbsp;&nbsp;&nbsp;**$26.32** | &nbsp;&nbsp;&nbsp;**$22.34** | &nbsp;&nbsp;&nbsp;**$20.00** |
| **Investment Operations** |  |  |  |  |
| Net Investment Income<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.524 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.487 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.258 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.298) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.004 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.257 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.774) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.491 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.244 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.515 |
| **Distributions** |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.467) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.386) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.229) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.167) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.119) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.455) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.035) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.008) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.586) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.841) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.264) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.175) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$29.61** | &nbsp;&nbsp;&nbsp;**$30.97** | &nbsp;&nbsp;&nbsp;**$26.32** | &nbsp;&nbsp;&nbsp;**$22.34** |
| **Total Return<sup>3</sup>** | &nbsp;&nbsp;&nbsp;**-2.39%** | &nbsp;&nbsp;&nbsp;**20.86%** | &nbsp;&nbsp;&nbsp;**19.06%** | &nbsp;&nbsp;&nbsp;**12.57%** |
| **Ratios/Supplemental Data** |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$178 | &nbsp;&nbsp;&nbsp;$169 | &nbsp;&nbsp;&nbsp;$86 | &nbsp;&nbsp;&nbsp;$34 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.57%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.56%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.55%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.58%<sup>5,6</sup> |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;1.88% | &nbsp;&nbsp;&nbsp;1.61% | &nbsp;&nbsp;&nbsp;1.62% | &nbsp;&nbsp;&nbsp;1.81%<sup>5</sup> |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;38% | &nbsp;&nbsp;&nbsp;19% | &nbsp;&nbsp;&nbsp;21% | &nbsp;&nbsp;&nbsp;15% |

---

---

| | |
|:---|:---|
| 1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 2019, the first business day after the subscription period, at a net asset value of $20.00. |
| 2 | Calculated based on average shares outstanding. |
| 3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 4 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.01%, and 0.00%. |
| 5 | Annualized. |
| 6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.55%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

Global ESG Select Stock Fund

Financial Highlights

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Admiral Shares** |  |  |  |  |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;May 21,<br> 2019<sup>1</sup> to<br> January 31,<br> 2020 |
| For a Share Outstanding<br> Throughout Each Period | &nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;May 21,<br> 2019<sup>1</sup> to<br> January 31,<br> 2020 |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp;&nbsp;**$38.73** | &nbsp;&nbsp;&nbsp;**$32.91** | &nbsp;&nbsp;&nbsp;**$27.93** | &nbsp;&nbsp;&nbsp;**$25.00** |
| **Investment Operations** |  |  |  |  |
| Net Investment Income<sup>2</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.684 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.649 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.504 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.338 |
| Net Realized and Unrealized Gain (Loss) on Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.609) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.258 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.830 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.823 |
| Total from Investment Operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.925) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.907 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.334 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.161 |
| **Distributions** |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.626) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.517) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.310) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.221) |
| Distributions from Realized Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.149) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.570) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.044) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.010) |
| Total Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.775) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.087) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.354) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.231) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp;&nbsp;**$37.03** | &nbsp;&nbsp;&nbsp;**$38.73** | &nbsp;&nbsp;&nbsp;**$32.91** | &nbsp;&nbsp;&nbsp;**$27.93** |
| **Total Return<sup>3</sup>** | &nbsp;&nbsp;&nbsp;**-2.27%** | &nbsp;&nbsp;&nbsp;**20.99%** | &nbsp;&nbsp;&nbsp;**19.17%** | &nbsp;&nbsp;&nbsp;**12.64%** |
| **Ratios/Supplemental Data** |  |  |  |  |
| Net Assets, End of Period (Millions) | &nbsp;&nbsp;&nbsp;$691 | &nbsp;&nbsp;&nbsp;$606 | &nbsp;&nbsp;&nbsp;$247 | &nbsp;&nbsp;&nbsp;$74 |
| Ratio of Total Expenses to Average Net Assets | &nbsp;&nbsp;&nbsp;0.47%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.46%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.45%<sup>4</sup> | &nbsp;&nbsp;&nbsp;0.48%<sup>5,6</sup> |
| Ratio of Net Investment Income to Average Net Assets | &nbsp;&nbsp;&nbsp;1.97% | &nbsp;&nbsp;&nbsp;1.71% | &nbsp;&nbsp;&nbsp;1.71% | &nbsp;&nbsp;&nbsp;1.89%<sup>5</sup> |
| Portfolio Turnover Rate | &nbsp;&nbsp;&nbsp;38% | &nbsp;&nbsp;&nbsp;19% | &nbsp;&nbsp;&nbsp;21% | &nbsp;&nbsp;&nbsp;15% |

---

---

| | |
|:---|:---|
| 1 | The subscription period for the fund was May 21, 2019, to June 4, 2019, during which time all assets were held in cash. Performance measurement began June 5, 2019, the first business day after the subscription period, at a net asset value of $25.00. |
| 2 | Calculated based on average shares outstanding. |
| 3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 4 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, 0.01%, and 0.00%. |
| 5 | Annualized. |
| 6 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.45%. |

---

See accompanying Notes, which are an integral part of the Financial Statements.

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Global ESG Select Stock Fund

Notes to Financial Statements

Vanguard Global ESG Select Stock Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.

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Global ESG Select Stock Fund

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the year ended January 31, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

6. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ‎ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of ‎payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.

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Global ESG Select Stock Fund

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. Wellington Management Company llp provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund's performance relative to the FTSE All-World Index since July 31, 2019. For the year ended January 31, 2023, the investment advisory fee represented an effective annual basic rate of 0.23% of the fund's average net assets, before a net increase of $174,000 (0.02%) based on performance.

C. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At January 31, 2023, the fund had contributed to Vanguard capital in the amount of $30,000, representing less than 0.01% of the fund's net assets and 0.01% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

D. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

#### Level 1 —Quoted prices in active markets for identical securities.

#### Level 2 —Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
**Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.**

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Global ESG Select Stock Fund

The following table summarizes the market value of the fund's investments as of January 31, 2023, based on the inputs used to value them:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1<br> ($000) | &nbsp;&nbsp;&nbsp;Level 2<br> ($000) | &nbsp;&nbsp;&nbsp;Level 3<br> ($000) | &nbsp;&nbsp;&nbsp;Total<br> ($000) |
| **Investments** |  |  |  |  |
| Assets |  |  |  |  |
| Common Stocks—North and South America | 411933 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;411933 |
| Common Stocks—Other | &nbsp;&nbsp;&nbsp;17687 | &nbsp;&nbsp;&nbsp;418280 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;435967 |
| Temporary Cash Investments | &nbsp;&nbsp;&nbsp;23402 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;23402 |
| Total | 453022 | &nbsp;&nbsp;&nbsp;418280 | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;871302 |

---

E. Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable foreign currency transactions were reclassified between the individual components of total distributable earnings (loss).

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Undistributed Ordinary Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1338 |
| Undistributed Long-Term Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Capital Loss Carryforwards | &nbsp;&nbsp;&nbsp;(12594) |
| Qualified Late-Year Losses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Net Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp;92177 |

---

The tax character of distributions paid was as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Year Ended January 31, | &nbsp;&nbsp;&nbsp;Year Ended January 31, |
|  | &nbsp;&nbsp;&nbsp;2023<br> Amount<br> ($000) | &nbsp;&nbsp;&nbsp;&nbsp;2022<br> Amount<br> ($000) |
| Ordinary Income\* | &nbsp;&nbsp;&nbsp;16027 | &nbsp;&nbsp;&nbsp;&nbsp;15894 |
| Long-Term Capital Gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;607 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2579 |
| Total | &nbsp;&nbsp;&nbsp;16634 | &nbsp;&nbsp;&nbsp;&nbsp;18473 |

---

\* Includes short-term capital gains, if any.

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Global ESG Select Stock Fund

As of January 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Amount<br> ($000) |
| Tax Cost | &nbsp;&nbsp;&nbsp;779130 |
| Gross Unrealized Appreciation | &nbsp;&nbsp;&nbsp;124068 |
| Gross Unrealized Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;(31896) |
| Net Unrealized Appreciation (Depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;92172 |

---

F. During the year ended January 31, 2023, the fund purchased $392,460,000 of investment securities and sold $278,424,000 of investment securities, other than temporary cash investments.

G. Capital share transactions for each class of shares were:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, | Year Ended January 31, |
|  | 2023 | 2023 | &nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;2022 |
|  | Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) | &nbsp;&nbsp;Amount<br> ($000) | &nbsp;&nbsp;Shares<br> (000) |
| **Investor Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;&nbsp;&nbsp;51485 | &nbsp;&nbsp;&nbsp;&nbsp;1829 | &nbsp;&nbsp;&nbsp;&nbsp;125865 | &nbsp;&nbsp;&nbsp;&nbsp;4203 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2932 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113 |
| Redeemed | &nbsp;&nbsp;(38695) | &nbsp;&nbsp;(1394) | &nbsp;&nbsp;&nbsp;&nbsp;(64184) | &nbsp;&nbsp;(2117) |
| Net Increase (Decrease)—Investor Shares | &nbsp;&nbsp;&nbsp;&nbsp;15722 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;539 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65231 | &nbsp;&nbsp;&nbsp;&nbsp;2199 |
| **Admiral Shares** |  |  |  |  |
| Issued | &nbsp;&nbsp;229900 | &nbsp;&nbsp;&nbsp;&nbsp;6607 | &nbsp;&nbsp;&nbsp;&nbsp;414883 | &nbsp;&nbsp;11050 |
| Issued in Lieu of Cash Distributions | &nbsp;&nbsp;&nbsp;&nbsp;11097 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11765 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301 |
| Redeemed | (135499) | &nbsp;&nbsp;(3904) | &nbsp;&nbsp;(121883) | &nbsp;&nbsp;(3207) |
| Net Increase (Decrease)—Admiral Shares | &nbsp;&nbsp;105498 | &nbsp;&nbsp;&nbsp;&nbsp;3020 | &nbsp;&nbsp;&nbsp;&nbsp;304765 | &nbsp;&nbsp;&nbsp;&nbsp;8144 |

---

H. Management has determined that no events or transactions occurred subsequent to January 31, 2023, that would require recognition or disclosure in these financial statements.

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#### Report of Independent Registered

#### Public Accounting Firm
To the Board of Trustees of Vanguard Specialized Funds and Shareholders of Vanguard Global ESG Select Stock Fund

#### Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Global ESG Select Stock Fund (one of the funds constituting Vanguard Specialized Funds, referred to hereafter as the "Fund") as of January 31, 2023, the related statement of operations for the year ended January 31, 2023 and the statement of changes in net assets for each of the two years in the period ended January 31, 2023, including the related notes, and the financial highlights for each of the three years in the period ended January 31, 2023 and for the period May 21, 2019 (commencement of subscription period) through January 31, 2020 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of January 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended January 31, 2023 and the financial highlights for each of the three years in the period ended January 31, 2023 and for the period May 21, 2019 (commencement of subscription period) through January 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of January 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

‎ /s/PricewaterhouseCoopers LLP<br> Philadelphia, Pennsylvania<br> March 23, 2023

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

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Tax information (unaudited)

For corporate shareholders, 36.9%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.

The fund hereby designates $14,865,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for individual shareholders for the fiscal year.

The fund hereby designates $81,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.

For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund for the fiscal year are qualified short-term capital gains.

The fund distributed $607,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.

The fund designates to shareholders foreign source income of $13,040,000 and foreign taxes paid of $1,153,000, or if subsequently determined to be different, the maximum amounts allowable by law. Form 1099-DIV reports calendar-year amounts that can be included on the income tax return of shareholders.

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Trustees Approve Advisory Arrangement

The board of trustees of Vanguard Global ESG Select Stock Fund has renewed the fund's investment advisory arrangement with Wellington Management Company llp (Wellington Management). The board determined that renewing the fund's advisory arrangement was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of the advisor's investment staff, portfolio management process, and performance. This evaluation included information provided to the board by Vanguard's Portfolio Review Department, which is responsible for fund and advisor oversight and product management. The Portfolio Review Department met regularly with the advisor and made monthly presentations to the board during the fiscal year that directed the board's focus to relevant information and topics.

The board, or an investment committee made up of board members, also received information throughout the year during advisor presentations. For each advisor presentation, the board was provided with letters and reports that included information about, among other things, the advisory firm and the advisor's assessment of the investment environment, portfolio performance, and portfolio characteristics.

In addition, the board received periodic reports throughout the year, which included information about each fund's performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Portfolio Review Department's ongoing assessment of the advisor.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board's decision.

#### Nature, extent, and quality of services
The board reviewed the quality of the investment management services provided to the fund since its inception in 2019; it also took into account the organizational depth and stability of the advisor. The board considered that Wellington Management, founded in 1928, is among the nation's oldest and most respected institutional investment managers. Wellington Management seeks to invest in global mid- and large-capitalization companies with high financial productivity and leading environmental, social, and governance (ESG) practices. Wellington Management conducts proprietary investment and ESG research to construct a highly selective stock portfolio, representing 40 to 50 stocks that will be owned for an extended time period. Additionally, the advisor engages with company management and votes proxies.

The board concluded that the advisor's experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.

#### Investment performance
The board considered the short-term and since-inception performance of the fund, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The board concluded that the performance was such that the advisory arrangement should continue.

#### Cost
The board concluded that the fund's expense ratio was below the average expense ratio charged by funds in its peer group and that the fund's advisory fee rate was also below the peer-group average.

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The board did not consider the profitability of Wellington Management in determining whether to approve the advisory fee, because Wellington Management is independent of Vanguard and the advisory fee is the result of arm's-length negotiations.

#### The benefit of economies of scale
The board concluded that the fund's shareholders benefit from economies of scale because of breakpoints in the fund's advisory fee schedule with Wellington Management. The breakpoints reduce the effective rate of the fee as the fund's assets increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund's trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them.

A majority of Vanguard's board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 206 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the *Statement of Additional Information*, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

#### Interested Trustee<sup>1</sup>

#### Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Member of the board of governors of the Investment Company Institute and the board of governors of FINRA. Trustee and vice chair of The Shipley School.

#### Independent Trustees

#### Tara Bunch
Born in 1962. Trustee since November 2021. Principal occupation(s) during the past five years and other experience: head of global operations at Airbnb (2020–present). Vice president of AppleCare (2012–2020). Member of the board of directors of Out & Equal, the advisory board of the University of California, Berkeley School of Engineering, and the advisory board of Santa Clara University's Leavey School of Business.

#### Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Member of the board of directors of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, Roberts Wesleyan College, and the Rochester Philharmonic Orchestra. Trustee of the University of Rochester.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief ‎operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of ‎Hillenbrand, Inc. (global industrial company). Director of the V Foundation. Member of the advisory council for the College of Arts and ‎Letters at the University of Notre Dame. Chairman of the board of Saint Anselm College.

1 Mr. Buckley is considered an "interested person," as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

#### Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM's Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

#### Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer ‎‎(retired 2020) and vice president (retired 2020) of the University of Notre Dame. Chair of the board of Catholic Investment Services, Inc. ‎‎(investment advisors). Member of the board of superintendence of the Institute for the Works of Religion, the Notre Dame 403(b) Investment ‎Committee, and the board of directors of Paxos Trust Company (finance).

#### Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer of Purposeful (advisory firm for CEOs and C-level executives; 2021–present). Board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Director of DuPont. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, and the NewYork-Presbyterian Hospital.

#### André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and partner of HighVista Strategies (private investment firm). Member of the board of RIT Capital Partners (investment firm).

#### Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–‎‎2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of ‎financial regulation for the State of Maryland. Colin W. Brown Distinguished Professor of the Practice of Law, Duke Law School (2021–‎present); Rubenstein Fellow, Duke University (2017–2020); Distinguished Fellow of the Global Financial Markets Center, Duke Law School ‎‎(2020–2022); and Senior Fellow, Duke Center on Risk (2020–present). Partner of Kaya Corporation Ltd. (climate policy advisory services). ‎Member of the board of directors of Arcadia Corporation (energy solution technology).

#### David Thomas
Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company. Trustee of Common Fund.

#### Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Member of the BMW Group Mobility Council.

#### Executive Officers

#### Jacqueline Angell
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer ‎‎(November 2022–present) of Vanguard and of each of the investment companies served by Vanguard. Chief compliance officer (2018–2022) ‎and deputy chief compliance officer (2017–2019) of State Street.

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

#### Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2021–present) and treasurer (2017–2022) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

#### John Galloway
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Special assistant to the President of the United States (2015).

#### Ashley Grim
Born in 1984. Principal occupation(s) during the past five years and other experience: treasurer (February 2022–present) of each of the ‎investment companies served by Vanguard. Fund transfer agent controller (2019–2022) and director of Audit Services (2017–2019) at ‎Vanguard. Senior manager (2015–2017) at PriceWaterhouseCoopers (audit and assurance, consulting, and tax services).

#### Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

#### Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express. Nonexecutive director of the board of National Grid (energy).

#### Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

#### Vanguard Senior Management Team

---

| | |
|:---|:---|
| **Matthew Benchener** | **Thomas M. Rampulla** |
| **Joseph Brennan** | **Karin A. Risi** |
| **Mortimer J. Buckley** | **Anne E. Robinson** |
| **Gregory Davis** | **Michael Rollings** |
| **John James** | **Nitin Tandon** |
| **Chris D. McIsaac** | **Lauren Valente** |

---

------

[**Table of Contents**](#JOB_Vangu_b71039c1-69fc-499e-836f-8c7881a4036d_TOCtm234052d2_globesglstoq5470)

![](tm234052d2globesglstoq54i005.jpg)

Connect with Vanguard<sup>®</sup>>vanguard.com

#### Fund Information > 800-662-7447

#### Direct Investor Account Services > 800-662-2739

#### Institutional Investor Services > 800-523-1036

#### Text Telephone for People<br> Who Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund's current prospectus.

All comparative mutual fund data are from Morningstar, Inc., unless otherwise noted.

You can obtain a free copy of Vanguard's proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC's website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC's website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

Source for Bloomberg indexes: Bloomberg Index Services Limited. Copyright 2023, Bloomberg. All rights reserved.

CFA<sup>®</sup> is a registered trademark owned by CFA Institute.© 2023 The Vanguard Group, Inc.<br> All rights reserved.<br> Vanguard Marketing Corporation, Distributor.

Q5470 032023

------

**Item 2**: Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.

**Item 3**: Audit Committee Financial Expert.

All members of the Audit Committee have been determined by the Registrant's Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.

**Item 4**: Principal Accountant Fees and Services.

(a) Audit Fees.

Audit Fees of the Registrant.

Fiscal Year Ended January 31, 2023: $218,000<br> Fiscal Year Ended January 31, 2022: $224,000

Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.

Fiscal Year Ended January 31, 2023: $10,494,508<br> Fiscal Year Ended January 31, 2022: $11,244,694

Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.

(b) Audit-Related Fees.

Fiscal Year Ended January 31, 2023: $2,757,764<br> Fiscal Year Ended January 31, 2022: $2,955,181

Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.

(c) Tax Fees.

Fiscal Year Ended January 31, 2023: $5,202,689<br> Fiscal Year Ended January 31, 2022: $2,047,574

Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.

(d) All Other Fees.

Fiscal Year Ended January 31, 2023: $298,000<br> Fiscal Year Ended January 31, 2022: $280,000

Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.

(e) (1) Pre-Approval Policies. The policy of the Registrant's Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant's independence.

In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant's independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant's independence.

The Registrant's Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No percentage of the principal accountant's fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant's engagement were <u>not</u> performed by persons other than full-time, permanent employees of the principal accountant.

(g) Aggregate Non-Audit Fees.

Fiscal Year Ended January 31, 2023: $5,500,689<br> Fiscal Year Ended January 31, 2022: $2,327,574

Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.

(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant's independence.

**Item 5**: Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 ("Exchange Act"). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant's audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.

**Item 6**: Investments.

Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.

**Item 7**: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

**Item 8**: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

**Item 9**: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

**Item 10**: Submission of Matters to a Vote of Security Holders.

Not applicable.

**Item 11**: Controls and Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Internal Control Over Financial Reporting. There were no significant changes in the Registrant's Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

**Item 12**: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

**Item 13**: Exhibits.

---

| | |
|:---|:---|
| [(a)(1)](tm234376d1_ex99-codeeth.htm) | [Code of Ethics filed herewith.](tm234376d1_ex99-codeeth.htm) |
| [(a)(2)](tm234052d2_ex99-cert.htm) | [Certifications filed herewith.](tm234052d2_ex99-cert.htm) |
| [(b)](tm234052d2_ex99-906cert.htm) | [Certifications filed herewith.](tm234052d2_ex99-906cert.htm) |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
|  | VANGUARD SPECIALIZED FUNDS |
| BY: | /s/ MORTIMER J. BUCKLEY\* |
|  | MORTIMER J. BUCKLEY |
|  | CHIEF EXECUTIVE OFFICER |

---

Date: March 24, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
|  | VANGUARD SPECIALIZED FUNDS |
| BY: | /s/ MORTIMER J. BUCKLEY\* |
|  | MORTIMER J. BUCKLEY |
|  | CHIEF EXECUTIVE OFFICER |

---

Date: March 24, 2023

---

| | |
|:---|:---|
|  | VANGUARD SPECIALIZED FUNDS |
| BY: | /s/ CHRISTINE BUCHANAN\* |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHRISTINE BUCHANAN |
|  | CHIEF FINANCIAL OFFICER |

---

Date: March 24, 2023

\* By: /s/ Anne E. Robinson

Anne E. Robinson, pursuant to a [Power of Attorney](http://www.sec.gov/Archives/edgar/data/105563/000168386323002762/f24867d3.htm) filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.

## Ex-99.Code

**Exhibit 99.CODEETH**

![](tm234376d1_coeimg01.jpg)

&nbsp;&nbsp; **Access Person Code of Conduct**<br>Effective Date: 01 March 2022 \| Contact: Code_of_Ethics@vanguard.com<br>

**Background – Why This Access Person Code of Conduct Matters** 

Vanguard was founded with a singular focus on clients and serving their best interests, and this has been the foundation of our strong ethical culture. One way in which we consistently seek to earn and maintain the trust and loyalty of our clients is by adhering to the highest standards of ethical behavior. Acting with integrity and complying with applicable laws and regulations necessarily extends to your conduct in general and to your personal investing and trading activities in particular.

Some crew and contingent workers at Vanguard, by virtue of their role or department, are designated as an "Access Person" (i.e., an Advisor Access Person, Fund Access Person, or Investment Access Person) because they or their department are authorized to know about present or future transactions by Vanguard funds, or have the authority to influence those transactions, or otherwise have access to sensitive market or client activity. Because of that knowledge, authority, and access, Access Persons are subject to additional standards of business conduct, stricter personal investment rules, and greater oversight, among other things. These standards and rules, as set forth in this Access Person Code of Conduct (APCC)<sup>1</sup>, have been adopted with the goals of ensuring we comply with applicable law and avoiding conflicts of interest or the appearance of conflicts of interest. This is especially true regarding any potential conflicts of interest that could arise between the securities trading that Vanguard undertakes on behalf of the Vanguard funds or our clients and the personal securities trading by crew, contingent workers, and their household or family members.

**Policy Coverage**

**To Whom Does the APCC Apply?** 

This policy<sup>2</sup> applies to ***all crew members and contingent workers globally who are in a role that has been designated as an "Access Person" role***. Certain provisions of this policy also apply to Associated Persons.

**Are you an Access Person?** Visit Appendix A to learn whether the role you're in is an Access Person role, and if so, which Access Person "designation" applies.

**What about Non-Access Persons?** Any crew member or contingent worker who is <u>not</u> in a role that has been designated as an Access Person role is a "Non-Access Person" and must comply with the Personal Investment Activity Policy for Non-Access Persons, not this policy.

**Are you a contingent worker?** A "contingent worker" is any person other than a crew member who provides services to or on behalf of Vanguard through staffing firms, consulting

<sup>1</sup> The APCC constitutes the code of ethics that the Vanguard funds have adopted in compliance with U.S. SEC Rules 17j-1 and 204A-1.

<sup>2</sup> The APCC is a policy that has been created and approved, and is governed, similar to other policies at Vanguard. As used herein, references to "this policy" mean the APCC.

Page **1** of **37**

![](tm234376d1_coeimg01.jpg)

firms, service providers, or as independent contractors. Like crew, a contingent worker can be in either an Access Person or Non-Access Person role.

**What about Associated Persons?** For U.S. crew and contingent workers who are Associated Persons (to reiterate, not Access Persons, but *Associated* Persons) under FINRA rules and regulations, please note you have additional investment-related obligations under the FINRA Licensing Policy, including the Securities Account Reporting Obligations for Associated Persons. Please review and comply with those documents, as well.

**Policy Overview** 

There are four primary sections to this policy:

**Section 1** **– Standards of Business Conduct**, sets forth rules and expectations regarding your behavior and conduct.

**Section 2** **– Personal Investment Activities**, contains rules on how you and your Household or Family Members may own and trade securities for your own personal benefit. Note that some of these rules differ based on your Access Person designation. While the details are set forth in Section 2, at a high level there are four subsections applicable to you and your personal investment activities:

A – Reminders on who is covered

B – Brokerage firms you may use

C – Disclosure obligations

D – Investment and trading restrictions

**Section 3** **– Penalties and Sanctions**, describes how violations of this policy are addressed and enforced.

**Section 4** **– Defined terms**, provides definitions for the capitalized terms used in this policy.

Please carefully read the rest of this policy and ensure you understand and comply with its terms. Understanding and following this policy is one of the most important ways we can ensure our clients' interests always come first.

Be sure you are familiar with the following other Vanguard policies that relate to your ethical conduct and personal investment activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Standards of Conduct Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Conflicts of Interest Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Insider Trading Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Outside Business Activity Policy

Please also ensure you are familiar with Vanguard's Code of Ethical Conduct.

**Policy Requirements** 

**Section 1 – Standards of Business Conduct** 

Everyone at Vanguard is expected to promote high standards of integrity and manage the company's affairs honestly and ethically. We all have a personal responsibility to conduct ourselves

Page **2** of **37**

![](tm234376d1_coeimg01.jpg)

in a manner that reflects a commitment to ethics and compliance with all applicable laws and regulations. Doing so is part and parcel of Vanguard's mission to "take a stand for all investors, to treat them fairly, and to give them the best chance for investment success."

Putting these values into practice means having and adhering to expected standards of business conduct. The Vanguard policy that explains these standards is the Standards of Conduct Policy, which is incorporated herein by reference. You must comply with that policy, including the following standards of conduct that are explained therein:

&nbsp;&nbsp;&nbsp;&nbsp;1. Always put Vanguard clients' interests first and
treat them fairly.

&nbsp;&nbsp;&nbsp;&nbsp;2. Avoid conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;3. Be candid and clear with clients and provide them with
accurate information.

&nbsp;&nbsp;&nbsp;&nbsp;4. Comply with applicable laws, rules, regulations, and policies.

&nbsp;&nbsp;&nbsp;&nbsp;5. Comply with applicable professional standards.

&nbsp;&nbsp;&nbsp;&nbsp;6. Complete mandatory training and regularly certify that
you are compliant with our policies.

&nbsp;&nbsp;&nbsp;&nbsp;7. Maintain accurate, timely, and complete business records.

&nbsp;&nbsp;&nbsp;&nbsp;8. Protect against fraud.

&nbsp;&nbsp;&nbsp;&nbsp;9. Lead by example.

&nbsp;&nbsp;&nbsp;&nbsp;10. Speak up.

At Vanguard, you are expected to always **do the right thing**. It sounds simple and it's usually very clear what doing the right thing entails. But sometimes it isn't. How do you make the best choice when facing difficult or unclear circumstances? How do you navigate an ethical dilemma?

In those situations, you should pause and reflect, and then work through the following "ethical decision-making guide." This guide will help you consider important questions before deciding whether or how to proceed with an action. It is not a substitute for this or any policy, and it may not tell you exactly what to do in every situation, but it can be used as a tool to help guide you when you face an ethical dilemma or a complex situation where the answer might not be clear.

If you're still in doubt as you work through the decision-making guide, err on the side of caution—ask questions, elevate the issue, and enlist the help of others to ensure we reach the *right* answer every time for Vanguard and our clients.

![](tm234376d1_coeimg02.jpg)

Page **3** of **37**

![](tm234376d1_coeimg01.jpg)

***Speaking Up*** – As mentioned above, you are encouraged to help protect our clients, crew, and Vanguard by reporting concerns about ethics, financial or business integrity, information security and privacy, workplace practices, or alleged violations of policy, regulation, or law. Indeed, speaking up is one of the most effective ways to help ensure Vanguard maintains its high standards for ethics and compliance. To that end, if you become aware that you or anyone else violated any of the terms of this policy, you must contact Compliance immediately.

Likewise, it is your responsibility to know whether the role you are in is designated as an Access Person, and if so, which Access Person designation applies to you (visit the Appendix A to learn more). It is also your responsibility to know the policies and trading restrictions that apply to you accordingly, and to ask questions if you are unsure.

**Section 2 – Personal Investment Activities** 

**<u>Introduction</u>**

Vanguard recognizes the importance to crew and contingent workers of being able to manage and develop their own financial resources through long-term investments and strategies. With that in mind, the rules and requirements set forth in this policy have been adopted with the goals of (1) ensuring we comply with all applicable laws and regulations, and (2) avoiding any conflicts of interest, or any appearances of conflicts of interest, between the securities trading that Vanguard undertakes on behalf of Vanguard funds or our clients and the personal securities trading or investing by crew, contingent workers, or their Household or Family Members (defined in Section 4, below). Our industry and Vanguard have implemented certain standards and limitations designed to minimize these conflicts and help ensure that we focus on meeting our duty to clients.

Granted, the rules in this policy are demanding and strict and they may feel like an imposition. But at Vanguard, we take our ethical obligations very seriously, and the rules in this policy are intended to ensure that trading on behalf of Vanguard funds and clients are given priority over trading for your personal accounts, and that trades for your personal accounts do not adversely affect trades for our funds or clients.

Similarly, keep in mind that you must comply with applicable securities laws and must avoid taking personal advantage of your knowledge of securities activity in Vanguard funds or client accounts.

This policy includes specific restrictions on personal investing but cannot anticipate every fact pattern or situation. You should adhere to the spirit, and not just the letter, of this policy.

Compliance will keep all records relating to personal account trading as confidential as necessary. Information will be accessible within Compliance and may be reported to senior management or HR. Records may also need to be made available to Internal Audit and/or any regulator. All non-U.S. crew and contingent workers are required to sign a data consent / data privacy notice.

The Compliance Department reserves the right to monitor any and all investment or trading activity by you or by any Household or Family Member based on any information or system to which it has access.

Page **4** of **37**

![](tm234376d1_coeimg01.jpg)

**<u>Checklist</u>**

Given the complexity of this policy and the steps you must take to ensure you remain in compliance with it, we have created this brief checklist to help you keep track of your obligations. This is merely a summary, so be sure to comply with the full terms of this policy as well.

---

| | |
|:---|:---|
| Checklist item | &nbsp;&nbsp;Where this topic is covered in this policy |
| ¨ I know my Access Person "designation," and I am aware that this policy applies not only to me but also to my Household or Family Members | &nbsp;&nbsp;Subsection 2-A – Who Is Covered Under this Policy |
| ¨ For the region where I work, I know what brokerage firm I and my Household or Family Members may use to maintain the accounts where I or they hold and trade Reportable Securities | &nbsp;&nbsp;Subsection 2-B – Brokerage Firms You May Use |
| ¨ For my Access Person designation, I know the initial and ongoing account and holdings disclosure obligations that apply to me and my Household or Family Members | &nbsp;&nbsp;Subsection 2-C – Disclosure Obligations |
| ◻ For my Access Person designation, I know the rules and limitations for transacting securities in my personal accounts and those of my Household or Family Members | &nbsp;&nbsp;Subsections 2-D-1 and 2-D-2 – Investment and Trading Restrictions |
| ¨ For Fund Access Person and Investment Access Person designations, I know how to seek trade preclearance | &nbsp;&nbsp;Subsection 2-D-3 – How to Seek and Abide by Preclearance Requirements |
| ¨ I know the penalties and sanctions that may apply for violations of any of the requirements under this policy | &nbsp;&nbsp;Section 3 – Penalties and Sanctions |
| ¨ I understand the meaning of the defined terms used in this policy | &nbsp;&nbsp;Section 4 – Defined Terms |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> ***Quick Tip:*** <br>The rules in this policy cover most of the personal investing situations you are likely to find. Yet it's always possible you will encounter a situation that isn't fully addressed by the rules. If that happens, you need to know what to do. The easiest way to make sure you are making the right decision is to follow these three principles: <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Know the policy. If you think your situation isn't covered, check again. It never hurts to take a second look at the rules. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Seek guidance. Asking questions is always appropriate. Talk with your manager or contact Compliance if you're not sure about the policy requirements or how they apply to your situation. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Use sound judgment. Analyze the situation and weigh the options. Think about how your decision would look to someone outside of Vanguard. <br>

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&nbsp;&nbsp;***Note for crew in China:*** <br>Because you may not have access to MCO, different systems and procedures are in place for you to disclose accounts and holdings. Please consult with your manager or the China Compliance team to learn more.<br>

**Subsection 2-A – Who Is Covered Under this Policy** 

As stated in the introduction to this policy, above, this policy applies to all crew members and contingent workers globally who are in a role that has been designated as an "Access Person" role.

**Access Persons are covered** – This policy applies to crew and contingent worker Access Persons and, in certain instances, to their Household or Family Members.

&nbsp;&nbsp;&nbsp;&nbsp;o *Access Persons* – Please note that the specific trading prohibitions and reporting requirements
 vary depending on your Access Person "designation," meaning <u>Advisor</u> Access
 Person, <u>Fund</u> Access Person, or <u>Investment</u> Access Person. To learn the Access
 Person designation that applies to your role, visit Appendix A. Note further that, regardless
 of your designation, the Compliance Department has the authority, with appropriate notice
 to you, to apply to you any or all of the trading restrictions within this policy

&nbsp;&nbsp;&nbsp;&nbsp;o *Household or Family Members* – Certain aspects of this policy apply not only to you but to
 your Household or Family Members, as well. Why? Doing so is required by applicable law and
 regulations in many jurisdictions. It is also consistent with industry best practices and
 helps Vanguard ensure we are effectively monitoring and guarding against conflicts of interest
 and other issues. See Section 4, below, for the definition of Household or Family Members
 in the region where you work.

**Non-Access Persons are not covered** – If the role you are in is <u>not</u> an Access Person role, you do not need to comply with this policy; instead, with regard to your personal investments, you must comply with the Personal Investment Activity Policy for Non-Access Persons (and other applicable policies). Note, however, that in the event a Non-Access Person is a Household or Family Member of an Access Person, then the terms of this policy will apply to the Non-Access Person as a Household or Family Member hereunder and any conflicting terms of this policy will take precedence over the Personal Investment Activity Policy for Non-Access Persons.

**Associated Persons also have obligations under other policies and documents** – For U.S. crew and contingent workers who are deemed to be Associated Persons (to reiterate, not Access Persons, but *Associated* Persons) under the FINRA Licensing Policy, you have certain obligations under this policy and have additional investment-related obligations under the FINRA Licensing Policy and the Securities Account Reporting Obligations for Associated Persons.

**Your designation may change** – Keep in mind that your Access Person designation may change over time, for instance if you change roles, if there are changes made in your department, or if the Compliance Department determines a designation change is appropriate. You are advised to regularly consult the My Ethics and Compliance Resource Center available on CrewNet to check your designation.

**Subsection 2-B – Brokerage Firms You May Use** 

The terms of Subsection 2-B apply to all Access Person designations.

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The following requirements and restrictions on which brokerage firms you may use to hold and transact Reportable Securities apply to you based on whether you are a crew member or contingent worker and where you work:

---

| | |
|:---|:---|
| **U.S. Crew:** | &nbsp;&nbsp;Crew who are Access Persons employed in the U.S., *and their Household or Family Members (parts (a) and (b) of that defined term only),* **must maintain and trade all Reportable Securities in a Vanguard Brokerage Account (VBA)**. This obligation does not apply to any Household or Family Members covered under part (c) of that defined term. See the Defined Terms in Section 4, below, for all definitions.<br>Securities or investments that are not "Reportable Securities" may be held in a brokerage account at the firm of your choice.<br>Employer-sponsored retirement accounts (e.g., 401(k) and 403(b)), 529 college savings plans, and Compliance-approved accounts (e.g., Approved Managed Accounts) may be held in a brokerage account at the firm of your choice. However, if you hold any Reportable Securities through any of those accounts, then such accounts are considered Covered Accounts under this policy and you are required to disclose them to Compliance under Subsection 2-C of this policy.<br>Newly hired U.S. crew who are Access Persons, *and their Household or Family Members (parts (a) and (b) of that defined term only),* must transfer any existing applicable Reportable Securities to a VBA by submitting a request or other applicable paperwork with Vanguard and each firm at which you have an existing applicable brokerage account within 60 days of your joining Vanguard. Visit *Vanguard.com > Personal Investors > Open an Account* to transfer assets from another firm to Vanguard. <br>For a more detailed list of Securities that must be held in a VBA, as well as Securities that may be held elsewhere, visit the Appendices C-F. <br>|
| **Ex-U.S. Crew:** | &nbsp;&nbsp;Crew who are Access Persons employed outside the U.S., and their Household or Family Members, may maintain Reportable Securities (as well as Securities or investments that are not Reportable Securities) in a brokerage account or other type of account *at the firm of their choice*. <br>|
| **Contingent Workers, Globally** | &nbsp;&nbsp;Contingent workers who are Access Persons may maintain Reportable Securities (as well as Securities or investments that are not Reportable Securities) in a brokerage account *at the firm of their choice*. <br>|

---

**Subsection 2-C – Disclosure Obligations** 

The terms of this Subsection 2-C apply to all Access Person designations and to all Associated Persons.

This policy requires the disclosure of a variety of account and holdings information to the Compliance Department for monitoring and oversight. This policy requires (1) an initial disclosure of information, and (2) periodic ongoing disclosures. Even if you do not have any personal brokerage

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account holdings or do not trade in Reportable Securities, you are still required to complete the necessary initial and periodic disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>1. Initial Disclosure of Accounts and Holdings</u>

Within ten (10) calendar days of joining Vanguard, or if applicable within ten (10) calendar days of moving from a Non-Access Person role at Vanguard into an Access Person role, all Access Persons and Associated Persons must disclose the following to Compliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Covered Accounts and all Reportable Securities held by you or a Household or Family Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Covered Accounts in which you exercise Investment Discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Covered Accounts over which you exercise control (e.g., agent authority (full or limited), trustee, power of attorney authority, etc.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All accounts in which you have, or will acquire, Beneficial Ownership of Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All accounts held by you and any Household or Family Member in which there are college saving plan products (including, in the U.S., 529 plans), annuity products, or other insurance products that, in turn, hold or invest in Vanguard Funds.

This includes Brokerage Accounts held at Vanguard, as well as those held at another financial institution. For clarity, you do not need to disclose an account or submit transaction confirmations or statements if the account does not have the ability to hold Securities – for example, a traditional checking, savings, or deposit account with a bank, credit union, or building society for holding cash would not need to be disclosed.

This information must be current as of no more than 45 calendar days before joining Vanguard.

To make this initial disclosure, you will receive an Initial Certification assignment by email to complete which will include a section to disclose Covered Accounts and all Reportable Securities by including account information in the "Account Attestation" section of the assignment and uploading corresponding account statements via MCO**. You must complete and submit the Initial Certification within ten (10) calendar days of receiving it; the failure to do so may be considered a violation of this policy.**

&nbsp;&nbsp;<u>Note</u>: We use an application called MyComplianceOffice, or MCO, to help manage this policy. You may use MCO to disclose accounts and holdings, and to secure trading permissions, if those obligations apply to you. Visit My Ethics and Compliance Resource Center on CrewNet for resources on how to access and use MCO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>2. Ongoing Disclosure of Accounts, Transactions, and Duplicate Statements</u>

After the Initial Disclosure, Access Persons and Associated Persons may need to disclose account and transaction information to Compliance on a periodic basis regarding Covered Accounts and any transactions in Reportable Securities made by you and your Household or Family Members.

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Further, if at any time you or a Household or Family Member subsequently:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· open,
 or intend to open, a Covered Account with a financial institution (e.g., broker, dealer,
 advisor, or any other professional money manager), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· acquire
 holdings in Reportable Securities, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· have
 a preexisting Covered Account (including a Vanguard Brokerage Account) that becomes associated
 with you or a Household or Family Member (such as through marriage or inheritance or some
 other life event),

or there becomes an account in which you acquire Beneficial Ownership of Securities, then you must notify Compliance as soon as possible (and in any event within 10 calendar days) and disclose these Covered Accounts and Reportable Securities by listing them and including associated information in the Accounts tab in MCO.

For U.S. crew, keep in mind that, as explained in Section 2-B of this policy above, you and your Household or Family Members (parts (a) and (b) of that defined term only) must maintain Reportable Securities in a VBA.

What and how to disclose this information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For
 VBAs disclosed by U.S. crew as required under this policy, Compliance will receive transaction
 confirmations automatically. No additional action by you is needed to disclose transactions
 of Reportable Securities in VBAs you have disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For
 Covered Accounts and holdings of Reportable Securities held outside of Vanguard (including
 in any account that would require disclosure under Section 2-C(1) of this policy), it is <u>your responsibility</u> to ensure that duplicate statements and transaction confirmations
 are available to or delivered to Compliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Because
 Vanguard has file feed contracts in place with many brokerage firms worldwide, for many Covered
 Accounts you disclose the holdings and transactions information will be sent to Compliance
 electronically with no additional action needed by you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o For
 Covered Accounts held at firms where Vanguard does not have a file feed in place, you must
 do the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Contact
 the firm where your Covered Account is held and take steps to send duplicate statements and
 daily transaction confirmations (electronic or paper) to Vanguard. You do this often by making
 Vanguard Compliance an interested party and having duplicate statements and confirmations
 sent to the third party scanning service Vanguard uses, called "Earth Class Mail"
 at this address: Vanguard, c/o TerraNua, 9450 SW Gemini Drive #37880, Beaverton, OR, 97008-7105.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ If
 the firm where your Covered Account is held is not able to send statements and daily transaction
 confirmations (electronic or paper) to Vanguard, you are required to scan and upload copies
 into the Trading Documents folder in MCO immediately after you receive them, unless you receive
 an exemption from this requirement from Compliance. You must ensure the documents you upload
 clearly show the firm/institution at which the account is held, the account number or ID,
 the account owner, and the account type.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If
 Compliance does not receive the information automatically via a file feed, you will receive
 email notifications on a calendar quarterly basis to complete a Quarterly Securities Transaction
 Report and thereby disclose Covered Accounts and Reportable Securities, via MCO. You must
 complete and submit that assignment within 30 calendar days; the failure to do so may be
 considered a violation of this policy.

· On
 an annual basis (usually in January or February), you will receive an assignment from Compliance
 in which you must certify, among other things, that all Covered Accounts and Reportable Securities
 are recorded accurately in MCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3. Additional notes related to disclosures under this policy:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For
 clarity, you do not need to disclose an account or submit transaction confirmations or statements
 if the account does not have the ability to hold Securities (for example, a traditional checking,
 savings, or deposit account with a bank, credit union, or building society for holding cash
 would not need to be disclosed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· As
 stated above, U.S. crew and contingent workers who are Associated Persons are also required
 to comply with and are subject to the FINRA Licensing Policy and Securities Account Reporting
 Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 Compliance Department will keep personal trading information confidential, but please note
 that such information may be accessible to authorized personnel within Compliance and may
 be reported to or summarized for senior management, HR, or the OGC for investigative purposes.
 Applicable records may also be provided to internal or external auditors and/or to any regulator
 if required. All ex-U.S. crew and contingent workers are required to sign a data consent
 / data privacy notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Please
 note that crew and contingent workers in Australia are required to disclose all transactions
 in VIA funds in MCO in the same manner as is required for Reportable Securities.

**Subsection 2-D – Investment and Trading Restrictions** 

This Subsection 2-D contains three segments:

**Segment 2-D-1** applies to all Access Person designations.

**Segment 2-D-2** has terms and requirements that differ based on your Access Person designation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o **Segment 2-D-2(a):** <u>Advisor</u> Access Person requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o **Segment 2-D-2(b):** <u>Fund</u> Access Person requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o **Segment 2-D-2(c):** <u>Investment</u> Access Person requirements

**Segment 2-D-3** explains how to seek and abide by **preclearance requirements**, if applicable to your activity.

**<u>Segment 2-D-1: Rules and Limitations applicable to all Access Person designations</u>**

The terms of this Segment 2-D-1 apply to all Access Person designations.

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&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *<u>General Obligations</u>* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i)** **Comply with the law:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) You
 must comply with all applicable securities-related rules and laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 may not engage in conduct that is deceitful, fraudulent, or manipulative, or that involves
 false or misleading statements, in connection with the purchase or sale of a Security by
 a Vanguard Fund or Vanguard Client account or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) You
 may not intentionally, recklessly, or negligently circulate false information or rumors that
 may affect the securities markets or may be perceived as market manipulation.

**ii)** **Use of Information:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) You
 may not take personal advantage of knowledge of recent, impending, or planned Securities
 activities of the Vanguard Funds or their investment advisors or any Vanguard Client. You
 are prohibited from purchasing or selling—directly or indirectly—any Security
 or Related Security when you know that the Security is being purchased or sold, or considered
 for purchase or sale, by a Vanguard Fund (with the exception of an index fund) or by a Vanguard
 Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 are subject to and must comply with the Insider Trading Policy and/or any similar policy
 of the Vanguard affiliate or region for which you work. Each of these policies is considered
 an integral part of your obligations under this policy. Each policy prohibits you from buying
 or selling any Security while in possession of material, nonpublic information about the
 issuer of the Security. The policies also prohibit you from communicating any nonpublic information
 about any Security or issuer of Securities to third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) You
 must comply with the Confidential Information Policy, including that you may not share information
 with any third party about any planned, upcoming, or recently executed trading activity by
 any Vanguard Fund or Vanguard Client unless such information is publicly available through
 no action by you.

**iii)** **Fund policies and excessive trading:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) When
 purchasing, exchanging, or redeeming shares of a Vanguard Fund, you must adhere to the policies
 and standards set forth in the fund's prospectus, or offering document, including policies
 on market-timing and frequent trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Excessive
 trading in Covered Accounts is strongly discouraged. The Compliance Department reserves the
 right to monitor trading across all of your Covered Accounts, and may conduct scrutiny of
 any trades in your Covered Accounts where such trading may appear excessive in nature (including,
 but not limited to, if the number of trades is so frequent as to potentially impact your
 ability to carry out your assigned responsibilities or the trades involve positions that
 are disproportionate to your net assets). If Compliance in its sole discretion determines
 you have engaged in excessive trading, then Compliance may limit the number of trades allowed
 in your Covered Accounts during a given period. This Section 2-D-1(a)(iii)(2) does not apply
 to transactions in an Approved Managed Account.

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**iv)** **Beneficial ownership and discretion:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 terms and restrictions of this policy apply to all Securities in which you have acquired
 or will acquire Beneficial Ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 must comply with these investment and trading restrictions with respect to any account you
 own as well as any account over which you have Investment Discretion or in which you have
 the authority to transact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**v)** **No circumvention** – You are not permitted to assist,
 aid, or enable any other person in doing anything that you are prohibited from doing under
 this policy.

**vi)** **Waivers:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Chief Compliance Officer may grant exceptions to this policy, including preclearance, other
 trading restrictions, and certain reporting requirements on a case-by-case basis if it is
 determined that (1) the proposed conduct involves no opportunity for abuse, (2) the proposed
 conduct does not conflict with Vanguard's interests, and (3) not granting an exception
 would result in an unfair or unjust outcome.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Chief Compliance Officer may waive the applicability of this policy for a contingent worker
 if the policy's requirements are covered through the applicable service provider's
 contract with Vanguard.

&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *<u>Rules regarding specific investments or investment types:</u>* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i)** **Use of derivatives:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) You
 and your Household or Family Members may not use a derivative to avoid or circumvent a rule
 or requirement set forth in this policy. If something is prohibited by these rules, then
 it is also against these rules to effectively accomplish the same thing by using a derivative.
 This includes futures, options, and other types of derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 and your Household or Family Members are permitted to trade futures or options on commodities.

**ii)** **IPOs and ICOs:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) You
 and your Household or Family Members are prohibited from acquiring Securities in an Initial
 Public Offering (IPO) or Secondary Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 and your Household or Family Members are prohibited from participating in an Initial Coin
 Offering (ICO).

**iii)** **Private Placements:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) You
 and your Household or Family Members are not permitted to invest in securities offered to
 potential investors in a Private Placement or other limited investment offering without first
 obtaining preclearance from Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) You
 must provide documentation describing the investment (e.g., offering memorandum, subscription
 documents, etc.) so as to enable Compliance to conduct a thorough review of the investment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Approval
 by Compliance may be granted or denied after a review of the facts and circumstances, including
 whether:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An
 investment in the securities is likely to result in future conflicts with Vanguard Client
 accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· You
 are being offered the opportunity due to your employment at, or association with, Vanguard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If
 you or your Household or Family Members receive approval to purchase Securities in a Private
 Placement, you must immediately inform Compliance if that Security goes to public offer or
 is pending listing on an exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) To
 initiate the process for obtaining preclearance of a Private Placement, complete the Outside
 Business Activity request form (the form for U.S. crew is in LARS, and for ex-U.S. crew
 is in MCO).

**iv) SPACs – You and your Household or Family Members are prohibited from acquiring a SPAC at any stage of its lifecycle (i.e., pre-IPO, IPO, pre-merger, post-merger).** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Short-Selling – You are prohibited from selling short any Security that you do not own or from otherwise engaging in short-selling activities.

**vi) Limit Orders – Same-day limit orders are permitted; however, good 'til cancelled orders (such as limit orders that stay open over the course of multiple trading days until a security reaches a specified market price) are not permitted.**

**vii) Digital Currencies and Related Investments – Refer to the Trading and Reporting Requirements for Digital Currency Investments and Activities for details on which digital currency account and product types are permitted, and what must be disclosed, under this policy.**

&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *<u>Short term trading in a Vanguard Fund (other than Vanguard ETFs):</u>* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Compliance may monitor trading in Vanguard Funds, other than Vanguard ETFs, and will review situations where Vanguard Fund shares are redeemed within 30 calendar days of purchase (a "short-term trade"). You may be required to relinquish to Vanguard any profit made on a short-term trade and will be subject to disciplinary action if Compliance determines the short-term trade was detrimental to a Vanguard Fund or a Vanguard Client or that there is a history of frequent trading by you or your Household or Family Members. For purposes of this paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A
 redemption includes a redemption by any means, including an exchange out of a Vanguard Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) This
 policy does not cover purchases and redemptions/sales (i) into or out of Vanguard money market
 funds, Vanguard short-term bond funds, or (ii) through an Automatic Investment Program.

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**ii) Nothing in this section is intended to replace, nullify, or modify any requirements imposed by a Vanguard Fund.**

**<u>Segment 2-D-2: Specific Limitations and Prohibitions that Apply Based on Access Person Designation</u>**

The terms and requirements of ***this Segment 2-D-2 are in addition to the terms and requirement of Segment 2-D-1***, and you must comply with the portions of this Segment 2-D-2 that apply to your Access Person designation. Note, an Access Person designation can apply to crew members or contingent workers.

<u>Segment 2-D-2(a): Advisor Access Person requirements</u>

The following terms and requirements apply to <u>Advisor</u> Access Persons only and are in addition to the terms and requirements of Segment 2-D-1:

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| | |
|:---|:---|
| Securities transactions for which you must obtain preclearance (meaning, approval from Compliance before transacting) | &nbsp;&nbsp;**None**. You are <u>not</u> required to obtain preclearance of any Covered Securities transactions by you or your Household or Family Members, except Private Placements as described above. |
| Prohibited Securities transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Segment 2-D-1, you are subject to the following restrictions with respect to any transaction in which you will acquire any direct or indirect Beneficial Ownership:<br>&nbsp;&nbsp;&nbsp;&nbsp;· **Short-Term Trading.** You are prohibited from purchasing and then selling any Covered Security at a profit, as well as selling and then repurchasing a Covered Security at a lower price, within 60 calendar days. A last-in/first-out accounting methodology will be applied to a series of Security purchases when applying this rule. (Note, as stated, this is based on last-in/first-out accounting regardless of how you placed the trade or plan to report it for tax purposes.) If you realize profits on short-term trades, you will be required to relinquish the profits to Vanguard (exclusive of commissions). In addition, the trade will be recorded as a violation of this policy. *For example: you would not be permitted to sell a Covered Security at $12 that you purchased within the prior 60 days for $10. Similarly, you would not be permitted to purchase a Covered Security at $10 that you had sold within the prior 60 days for $12.*<br>&nbsp;&nbsp;&nbsp;&nbsp;· **Short-term trading on options.** You may hold options on a Covered Security until you exercise the options or the options expire. However, you may not otherwise close any open positions within 60 calendar days. If you realize profits on such short-term trades, you must relinquish such profits to Vanguard (exclusive of commissions). In addition, the trade will be recorded as a violation of this policy. Note: These types of transactions can have unintended consequences. |

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For example, your call option could be assigned, causing the underlying Security to be called away within sixty (60) calendar days following the purchase of the Covered Security. <br>   <u>Visit the Appendix C for a table summarizing the trading and reporting requirements for Advisor Access Persons.</u>

<u>Segment 2-D-2(b): Fund Access Person requirements</u> 

The following terms and requirements apply to <u>Fund</u> Access Persons only and are in addition to the terms and requirements of Segment 2-D-1:

---

| | |
|:---|:---|
| Securities transactions for which you must obtain preclearance (meaning, approval from Compliance before transacting) | &nbsp;&nbsp;**Yes**, you must obtain, for yourself and on behalf of your Household or Family Members, **preclearance for any transaction of a Covered Security by you or any Household or Family Member**.<br>See Segment 2-D-3, below, for instructions on how to seek preclearance. |
| Securities transactions that do <u>not</u> require preclearance | &nbsp;&nbsp;&nbsp;You are not required to obtain preclearance for the following:<br>· Purchases or sales of Vanguard Funds.<br> · Purchases or sales where the person requesting preclearance has no direct or indirect influence or control over the account (e.g., you have a trust in your name but you are not the trustee who places the transaction, provided you have granted Investment Discretion to the trustee and there has been no prior communication between you and the trustee regarding the transaction).<br> · Corporate actions in Covered Securities such as stock dividends, stock splits, mergers, consolidations, spin-offs, or other similar corporate reorganizations or distributions.<br> · Purchases or sales made as a part of an Automatic Investment Program.<br> · Purchases effected upon the exercise of Rights which were issued by an issuer pro rata to all holders of a class of its Securities, to the extent such Rights were acquired from such issuer.<br> · Acquisitions of Covered Securities through gifts or bequests.<br>Visit the Appendix D for a table summarizing the trading and reporting requirements for Fund Access Persons. |
| Is preclearance required for trades in an Approved Managed Account? | &nbsp;&nbsp;No, you are not required to seek preclearance of a transaction in a Covered Security in an Approved Managed Account so long as you have no prior communication with the portfolio manager of that account in connection with that transaction.<br>Note, Vanguard PAS accounts generally do <u>not</u> qualify as Approved Managed Accounts because PAS account owners generally retain some level of investment discretion. Further, any |

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---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;trades of Covered Securities in a PAS account must be precleared under this policy. |
| "Blackout period" restrictions that may apply to personal trading in Covered Securities<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may be subject to certain restrictions if you purchase or sell a Covered Security within seven (7) days before or after a Vanguard Fund purchases or sells the same Covered Security or a Related Security (the "blackout period").<br>Purchasing or selling before a Vanguard Fund:<br>&nbsp;&nbsp;&nbsp;&nbsp;· If you <u>purchase</u> a Covered Security within seven days before a Vanguard Fund purchases the same Covered Security or a Related Security, you may be required to hold the Covered Security for 6 months before being permitted to sell the Covered Security for a profit.<br> &nbsp;&nbsp;&nbsp;&nbsp;· If you <u>sell</u> a Covered Security within seven days before a Vanguard Fund sells the same Covered Security or a Related Security, you may be required to relinquish to Vanguard any profits earned from your sale of the Covered Security (exclusive of commissions), where profits are calculated based on the price that the Vanguard Fund received for selling the Covered Security or a Related Security. *Note: Compliance will review your sale to determine if the relinquishment is required. This decision will be based on several factors, such as your role, access to fund trades, and the Covered Security sold.*<br>Purchasing or selling after a Vanguard Fund:<br>&nbsp;&nbsp;&nbsp;&nbsp;· In general, you will not receive preclearance to <u>purchase</u> a Covered Security within seven days after a Vanguard Fund trades the same Covered Security or a Related Security. If you execute the transaction without receiving preclearance, you will have violated this policy and must immediately sell the Covered Security and relinquish all profits received from the sale to Vanguard (exclusive of commissions).<br> &nbsp;&nbsp;&nbsp;&nbsp;· In general, you will not receive preclearance to <u>sell</u> a Covered Security within seven days after a Vanguard Fund trades the same Covered Security or a Related Security. If you execute the transaction without receiving preclearance, you will have violated this policy and must relinquish to Vanguard the difference (exclusive of commissions) between the sale price you received and the Vanguard Fund's sale price (as long as your sales price is higher), multiplied by the number of shares you sold.<br>In addition to these restrictions, local law may dictate the extent to which any gains must be relinquished.<br>Compliance may exempt from these restrictions certain trades during blackout periods that coincide with trading by certain Vanguard Funds (e.g., index funds). |

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---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;The blackout period restrictions set forth above **will not** apply to a Fund Access Person's <u>sale</u> of stock of any issuer which has a market capitalization that exceeds US$5 billion (or local currency equivalent), provided that the total value of any sales of the Security by the Fund Access Person do not exceed US$10,000 (or local currency equivalent) in any 30-day rolling period. Sales of securities of issuers with market capitalizations below US$5 billion, or that exceed US$10,000 in any 30-day rolling period, will continue to be subject to the blackout periods unless Compliance grants a waiver.<br>Compliance **may** waive the blackout period as it applies to the sale of a Covered Security if the Chief Compliance Officer determines its application creates a significant hardship to you (e.g., you need cash for a home purchase or to cover a major medical expense) and, in the opinion of the Chief Compliance Officer, satisfies the requirements for a waiver in the Waivers paragraph of Segment 2-D-1, above. Request and complete a Hardship Waiver Request Form.  |
| Prohibited Securities transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Segment 2-D-1, you are subject to the following restrictions with respect to any transaction in which you will acquire any direct or indirect Beneficial Ownership:<br>&nbsp;&nbsp;&nbsp;&nbsp;· **Futures and Options.** You are prohibited from entering into, acquiring, or selling any Futures contract (including single stock futures) or any Option on any Security (including Options on ETFs, Digital Utility Tokens, Digital Security Tokens, and Digital Currencies).<br>&nbsp;&nbsp;&nbsp;&nbsp;· **Short-Term Trading.** You are prohibited from purchasing and then selling any Covered Security at a profit, as well as selling and then repurchasing a Covered Security at a lower price, within 60 calendar days. A last-in/first-out accounting methodology will be applied to a series of Security purchases when applying this rule. (Note, as stated, this is based on last-in/first-out accounting regardless of how you placed the trade or plan to report it for tax purposes.) If you realize profits on short-term trades, you will be required to relinquish the profits to Vanguard (exclusive of commissions). In addition, the trade will be recorded as a violation of this policy. *Example: You are not permitted to sell a security at $12 that you purchased within the prior 60 days for $10. Similarly, you are not permitted to purchase a security at $10 that you sold within the prior 60 days for $12*.<br>&nbsp;&nbsp;&nbsp;&nbsp;· **Spread Bets.** You are prohibited from participating in Spread Betting on Securities, indexes, interest rates, currencies, or commodities. |

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<u>Segment 2-D-2(c): Investment Access Person requirements</u> 

The following terms and requirements apply to <u>Investment</u> Access Persons only and are in addition to the terms and requirements of Segment 2-D-1:

---

| | |
|:---|:---|
| Securities transactions for which you must obtain preclearance (meaning, approval from Compliance before transacting) | &nbsp;&nbsp; **Yes**, you must obtain, for yourself and on behalf of your Household or Family Members, **preclearance for any transaction of (i) a Covered Security, or (ii) a Vanguard ETF, by you or any Household or Family Member**.<br>See Segment 2-D-3, below, for instructions on how to seek preclearance.<br>|
| Securities transactions that do <u>not</u> require preclearance | &nbsp;&nbsp; You are not required to obtain preclearance for the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;· Purchases or sales of Vanguard Funds. (*Reminder: The purchase or sale of Vanguard ETFs <u>does</u> require preclearance.)*<br> &nbsp;&nbsp;&nbsp;&nbsp;· Purchases or sales where the person requesting preclearance has no direct or indirect influence or control over the Covered Security (e.g., you have a trust in your name but you are not the trustee who places the transaction, provided you have granted Investment Discretion to the trustee and there has been no prior communication between you and the trustee regarding the transaction).<br> &nbsp;&nbsp;&nbsp;&nbsp;· Corporate actions in Covered Securities such as stock dividends, stock splits, mergers, consolidations, spin-offs, or other similar corporate reorganizations or distributions.<br> &nbsp;&nbsp;&nbsp;&nbsp;· Purchases or sales made as a part of an Automatic Investment Program.<br> &nbsp;&nbsp;&nbsp;&nbsp;· Purchases effected upon the exercise of Rights which were issued by an issuer pro rata to all holders of a class of its Securities, to the extent such Rights were acquired from such issuer.<br> &nbsp;&nbsp;&nbsp;&nbsp;· Acquisitions of Covered Securities through gifts or bequests.<br>Visit the Appendix for a table summarizing the trading and reporting requirements for Investment Access Persons. <br>|
| Is preclearance required for trades in an Approved Managed Account? | &nbsp;&nbsp; No, you are not required to seek preclearance of a transaction in a Covered Security in an Approved Managed Account so long as you have no prior communication with the portfolio manager of that account in connection with that transaction.<br>Note, Vanguard PAS accounts generally do <u>not</u> qualify as Approved Managed Accounts because PAS account owners generally retain some level of investment discretion. Further, any trades of Covered Securities (but not trades of Vanguard ETFs) in a PAS account must be precleared under this policy. <br>|

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---

| | |
|:---|:---|
| "Blackout period" restrictions that may apply to personal trading in Covered Securities | &nbsp;&nbsp; You may be subject to certain restrictions if you purchase or sell a Covered Security within seven (7) days before or after a Vanguard Fund purchases or sells the same Covered Security or a Related Security (the "blackout period").<br>Purchasing or selling before a Vanguard Fund:<br>&nbsp;&nbsp;&nbsp;&nbsp;· If you <u>purchase</u> a Covered Security within seven days before a Vanguard Fund purchases the same Covered Security or a Related Security, you may be required to hold the Covered Security for 6 months before being permitted to sell the Covered Security for a profit.<br> &nbsp;&nbsp;&nbsp;&nbsp;· If you <u>sell</u> a Covered Security within seven days before a Vanguard Fund sells the same Covered Security or a Related Security, you may be required to relinquish to Vanguard any profits earned from your sale of the Covered Security (exclusive of commissions), where profits are calculated based on the price that the Vanguard Fund received for selling the Covered Security or a Related Security.<br>Purchasing or selling after a Vanguard Fund:<br>&nbsp;&nbsp;&nbsp;&nbsp;· In general, you will not receive preclearance to <u>purchase</u> a Covered Security within seven days after a Vanguard Fund trades the same Covered Security or a Related Security. If you execute the transaction without receiving preclearance, you will have violated this policy and must immediately sell the Covered Security and relinquish all profits received from the sale to Vanguard (exclusive of commissions).<br> &nbsp;&nbsp;&nbsp;&nbsp;· In general, you will not receive preclearance to <u>sell</u> a Covered Security within seven days after a Vanguard Fund trades the same Covered Security or a Related Security. If you execute the transaction without receiving preclearance, you will have violated this policy and must relinquish to Vanguard the difference (exclusive of commissions) between the sale price you received and the Vanguard Fund's sale price (as long as your sales price is higher), multiplied by the number of shares you sold.<br>In addition to these restrictions, local law may dictate the extent to which any gains must be relinquished.<br>Compliance may exempt from these restrictions certain trades during blackout periods that coincide with trading by certain Vanguard Funds (e.g., index funds).<br>Compliance **may** waive the blackout period as it applies to the sale of a Covered Security if the Chief Compliance Officer determines its application creates a significant hardship to you (e.g., you need cash for a home purchase or to cover a major medical expense) and, in the opinion of the Chief Compliance Officer, satisfies the requirements for a waiver in the Waivers |

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---

| | |
|:---|:---|
| | &nbsp;&nbsp;paragraph of Segment D-1, above. Request and complete a Hardship Waiver Request Form.<br>|
| Prohibited Securities transactions | &nbsp;&nbsp; In addition to Segment 2-D-1, you are subject to the following restrictions with respect to any transaction in which you will acquire any direct or indirect Beneficial Ownership:<br>**Futures and Options.** You are prohibited from entering into, acquiring, or selling any Futures contract (including single stock futures) or any Option on any Security (including Options on ETFs, Digital Utility Tokens, Digital Security Tokens, and Digital Currencies).<br>**Short-Term Trading.** You are prohibited from purchasing and then selling any Covered Security or a Vanguard ETF at a profit, as well as selling and then repurchasing a Covered Security or a Vanguard ETF at a lower price, within 60 calendar days. A last-in/first-out accounting methodology will be applied to a series of Security purchases when applying this rule. (Note, as stated, this is based on last-in/first-out accounting regardless of how you placed the trade or plan to report it for tax purposes.) If you realize profits on short-term trades, you will be required to relinquish the profits to Vanguard (exclusive of commissions). In addition, the trade will be recorded as a violation of this policy. *Example: You are not permitted to sell a security at $12 that you purchased within the prior 60 days for $10. Similarly, you are not permitted to purchase a security at $10 that you sold within the prior 60 days for $12*.<br>**Spread Bets.** You are prohibited from participating in Spread Betting on Securities, indexes, interest rates, currencies, or commodities.<br>|

---

**<u>Segment 2-D-3: How to Seek and Abide by Preclearance Requirements</u>**

If you are required to obtain preclearance of any trade or transaction under this policy, then the terms of this Segment 2-D-3 apply to that trade or transaction.

**Preclearance representations.**

By seeking preclearance, you will be deemed to be advising and representing to Compliance that you:

&nbsp;&nbsp;&nbsp;&nbsp;· Do not possess any material, nonpublic information relating
to the security.

&nbsp;&nbsp;&nbsp;&nbsp;· Do not use knowledge of any proposed trade or investment
program relating to the Vanguard Funds for personal benefit.

&nbsp;&nbsp;&nbsp;&nbsp;· Believe the proposed trade is available to any market participant
on the same terms.

**How do I obtain preclearance?**

Preclearance must be obtained via the "Personal Trade Pre-Clearance" path in MCO. Once the required information is submitted, your preclearance request will usually be approved or denied

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immediately. Transactions in Covered Securities (including, for Investment Access Persons, transactions in Vanguard ETFs) may not be executed before you receive approval.

As a reminder, preclearance of Private Placements is addressed in Segment 2-D-1 of this policy, above.

Attempting to gain approval after the transaction has occurred is not permitted. Completing a personal trade before receiving approval or after the approval window expires constitutes a violation of this policy. See Section 3 of this policy for more information regarding the sanctions that may be imposed as a result of a violation.

**How long is my preclearance approval valid?**

**In the U.S.:** Preclearance approval will expire at the end of the trading day on which it is issued (e.g., if you receive approval for a trade on Monday, it is effective until the market closes on that Monday). Preclearance for permitted limit orders is good for transactions on the same day that approval is granted only. If you receive approval for a limit order, it must be executed or expire at the close of regular trading on the same business day for which approval was granted. If you wish to execute the limit order after the close of regular trading on the day you received approval, you must submit a new preclearance request for the day you wish to execute the trade.

**Outside the U.S.:** If you receive approval, transactions must be executed no later than the end of trading on the next business day after the preclearance is granted. If the transaction is not placed within that time, you must submit a new request for approval before placing the transaction. If you preclear a limit order, that limit order must either be executed or expire at the end of the next business day. If you want to execute the order after the next business day period expires, you must resubmit your preclearance request.

**Section 3 – Penalties and Sanctions** 

**How we enforce this policy** 

The Compliance Department regularly reviews the forms, reports, and other information it receives. If these reviews turn up information that is incomplete, questionable, or potentially in violation of this policy, the Compliance Department will investigate the matter and may contact you. If it is determined that you or any of your Household or Family Members have violated this policy, the Compliance Department or another appropriate party may take action.

**Violations** 

If the Compliance Department determines that there has been a violation, you may be subject to penalties and sanctions as described in this policy and otherwise as described in the Disciplinary Action Policy and, for crew and contingent workers in Australia, the Managing Misconduct Policy. The Compliance Department will generally utilize a rolling 24-month period when evaluating whether and how to sanction a violation. Any violation of this policy may result in disciplinary action up to and including termination of employment.

Vanguard takes all policy violations seriously and at times provides the Vanguard Funds' board with a summary of actions taken in response to material violations of this policy and other policies. You should be aware that other securities laws and regulations not addressed by this policy may also apply to you, depending upon your role at Vanguard.

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**Exceptions** 

The Chief Compliance Officer or designee retains the discretion to interpret and grant exceptions to this policy and to decide how the rules apply to any given situation for the purpose of protecting the funds and being consistent with the general principles of this policy and the *Code of Ethical Conduct*.

In cases where exceptions to this policy are noted and you may qualify for them, you need to get prior written approval from the Compliance Department. If you believe that you have a situation that warrants an exception that is not discussed in this policy, you may submit a written request to the Compliance Department, which will consider your request and notify you of the outcome.

**Section 4 – Defined Terms** 

The following definitions apply throughout this policy:

---

| | |
|:---|:---|
| Access Person | &nbsp;&nbsp;Any person designated as an Investment Access Person, Fund Access Person, or Advisor Access Person. |
| Approved Managed Account | &nbsp;&nbsp;An investment account where (i) the account is owned by an investor and overseen by a hired professional money manager, (ii) the investor has no trading discretion on the account, and (iii) Compliance has approved it as an Approved Managed Account. |
| Associated Person | &nbsp;&nbsp;Any person who conducts securities business on behalf of Vanguard Marketing Corporation (VMC). This includes all FINRA-licensed contingent workers, as well as non-licensed contingent workers who perform certain operational and administrative functions for VMC. |
| Automatic Investment Program | &nbsp;&nbsp;A program in which regular periodic purchases (or withdrawals) are made automatically in (or from) Investment accounts, according to a predetermined schedule and allocation. An Automatic Investment Program includes a dividend reinvestment plan. |
| Bankers' Acceptance | &nbsp;&nbsp;A time draft drawn on a commercial bank by a borrower usually in connection with an international commercial transaction. Bankers' Acceptances are usually guaranteed by the bank. |
| Beneficial Ownership | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The opportunity to directly or indirectly—through any contract, arrangement, understanding, relationship, or otherwise—share at any time in any economic interest or profit derived from an ownership of or a transaction in a Security. For clarity, what you are deemed to have Beneficial Ownership of includes the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any Security owned individually by you.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any Security owned by a Household or Family Member.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any Security owned in joint tenancy, as tenants in common, or in other joint ownership arrangements.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any Security in which a Household or Family Member has Beneficial Ownership if the Security is held in a Covered Account over which you have decision making authority (for example, you act as a trustee, executor, or guardian or you provide Investment advice).<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Your interest as a general partner or manager/member in Securities held by a general or limited partnership or limited liability company.<br>|

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---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Your interest as a member of an Investment club or an organization that is formed for the purpose of investing in a pool of monies or Securities.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Your ownership of Securities as a trustee of a trust in which either you or a Household or Family Member has a vested interest in the principal or income of the trust or your ownership of a vested interest in a trust. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Securities owned by a corporation which is directly or indirectly controlled by, or under common control with, such person. |
| Bond | &nbsp;&nbsp;A debt obligation issued by a corporation, government, or government agency that entails repayment of the principal amount of the obligation at a future date, usually with interest. |
| Certificate | &nbsp;&nbsp;In Germany, a right or obligation issued by a bank where the payout profile or benefit of ownership depends upon or is tied to the performance of an agreed-upon underlying asset or security. |
| Certificate of Deposit (CD) | &nbsp;&nbsp;An insured, interest-bearing deposit at a bank that requires the depositor to keep the money invested for a specified period. |
| Commercial Paper | &nbsp;&nbsp;A promissory note issued by a large company in need of short-term financing. |
| Covered Account | &nbsp;&nbsp;Any Vanguard Fund account, any brokerage account, and any other type of account that holds, or is capable of holding, Reportable Securities. |
| Covered Security | &nbsp;&nbsp; Any Security (including through an IPO), but <u>not</u> including any:<br>&nbsp;&nbsp;&nbsp;&nbsp;· Direct Obligations of a Government; <br> &nbsp;&nbsp;&nbsp;&nbsp;· Bankers' Acceptances, Certificates of Deposit (CD), Commercial Paper, and High-Quality Short-Term Debt Instruments, including Repurchase Agreements; <br> &nbsp;&nbsp;&nbsp;&nbsp;· Shares issued by Open-End Funds (although for European subsidiaries, this is limited to UCITS schemes, a non-UCITS retail scheme, or another fund subject to supervision under the law of an European Economic Area (EEA) state which is an index fund or which requires an equivalent level of risk spreading in their assets);<br> &nbsp;&nbsp;&nbsp;&nbsp;· Life policies; <br> &nbsp;&nbsp;&nbsp;&nbsp;· ETFs;<br> &nbsp;&nbsp;&nbsp;&nbsp;· ETNs; or<br> &nbsp;&nbsp;&nbsp;&nbsp;· Digital Currencies. |
| Debenture | &nbsp;&nbsp;An unsecured debt obligation backed only by the general credit of the borrower. |
| Digital Currency | &nbsp;&nbsp;A digital asset that: (1) serves solely as a store of value, a medium of exchange, or a unit of account; (2) is not issued or guaranteed by any jurisdiction, central bank, or public authority; (3) relies on algorithmic techniques to regulate the generation of new units of the digital asset; and (4) has transactions involving the digital asset recorded on a decentralized network or distributed ledger (e.g., blockchain). Common examples of a Digital Currency are Bitcoin and Ether. A Digital Currency is distinguishable from a Digital Security Token or a Digital Utility Token. |
| Digital Security Token | &nbsp;&nbsp; Any digital asset that is not a Digital Currency or Digital Utility Token. In general, a Digital Security Token may: (1) derive its value primarily from, or represent an interest in, a separate asset or pool of assets; or (2) represent an interest in an enterprise or venture. A Digital Security Token may provide owners or holders with voting rights, rights to distributions, or other rights associated with ownership. Digital Security |

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| | |
|:---|:---|
| | &nbsp;&nbsp;Tokens are generally held for speculative investment purposes and not to provide holders with access to a particular network, product, or service. Digital Security Tokens, like other investments, are generally not used as a medium of exchange.<br> Note, whether or not an asset is a Digital Security Token depends on specific facts and circumstances. Merely referring to an asset as a Digital Currency or Digital Utility Token does not prevent the asset from being a Digital Security Token. Furthermore, an asset may be a Digital Security Token even if it has some purported utility. Please contact Compliance if you have any questions regarding whether an asset is a Digital Security Token. |
| Digital Utility Token | &nbsp;&nbsp;A digital asset that (1) provides access to a particular network, product, or service; (2) derives its value primarily from providing access to a particular network, product, or service; and (3) does not function as a Digital Currency or Digital Security Token. |
| Direct Obligation of a Government | &nbsp;&nbsp;A debt that is backed by the full taxing power of any government. These Securities are generally considered to be of the very highest quality. |
| ETF or Exchange-Traded Fund | &nbsp;&nbsp;An investment with characteristics of both mutual funds and individual stocks. Many ETFs track an index, a commodity, or a basket of assets. Unlike mutual funds, ETFs can be traded throughout the day. ETFs often have lower expense ratios but must be purchased and sold through a broker, which means you may incur commissions. |
| ETN or Exchange-Traded Note | &nbsp;&nbsp;A senior, unsecured, unsubordinated debt Security issued by a financial institution, whose returns are based on the performance of an underlying index and backed only by the credit of the issuer. ETNs have a maturity date, but typically pay no periodic coupon interest and offer no principal protection. At maturity an ETN investor receives a cash payment linked to the performance of the corresponding index, less fees. |
| Futures / Futures Contract | &nbsp;&nbsp;A contract to buy or sell specific amounts of a commodity or financial instrument (such as grain, a currency, including foreign currencies and Digital Currencies (e.g., Bitcoin), a Digital Security Token, or an index) for an agreed-upon price at a certain time in the future. Sometimes the arrangements in a contract prescribe that settlements are made through cash payments, rather than the delivery of physical goods or Securities; this is called Contract for Difference. |
| High-Quality Short-Term Debt Instrument | &nbsp;&nbsp;An instrument that has a maturity at issuance of less than 366 days and is rated in one of the two highest ratings categories by a nationally recognized statistical rating organization, or an instrument that is unrated but determined by Vanguard to be of comparable quality. |
| Household or Family Member (U.S., Australia, Canada, China, Hong Kong, and Mexico) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the U.S., Australia, Canada, China, Hong Kong, and Mexico regions, the term "Household or Family Member" includes:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Your spouse or domestic partner (an unrelated adult with whom you share your home and contribute to each other's support);<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any child of yours or of your spouse or domestic partner, provided that the child resides in the same household as or is financially dependent upon you; or<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Any other individual over whose accounts you have control (e.g., agent authority (full or limited), trustee, power of attorney authority) and to whose financial support you materially contribute.<br>|

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| | |
|:---|:---|
| | &nbsp;&nbsp;For purposes of parts (a) and (b) of this definition, those persons may not be deemed Household or Family Members under this policy if you demonstrate, to the satisfaction of the Compliance Department, that you derive no economic benefit from, and exercise no control over, that person's accounts. |
| Household or Family Member (Europe) | &nbsp;&nbsp;For Europe crew members, the term "Household or Family Member" includes your spouse, domestic partner (an unrelated adult with whom you share your home and contribute to each other's support), and minor children, as well as relatives whether by blood, adoption, or marriage (e.g., children, grandchildren, siblings, parents, parents-in-law, stepchildren) residing in the same household for at least one year prior to the date of the personal transaction. |
| Initial Coin Offering (ICO) | &nbsp;&nbsp;An initial offer or sale of Digital Currencies or Digital Security Tokens. Note, whether or not an offering is an ICO depends on specific facts and circumstances. Please contact Compliance before participating in an initial offering of a Digital Currency, Digital Security Token, or Digital Utility Token |
| Initial Public Offering (IPO) | &nbsp;&nbsp;A corporation's first offering of common stock to the public. |
| Investment Contract | &nbsp;&nbsp;Any contract, transaction, or scheme whereby a person invests money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party. |
| Investment Discretion | &nbsp;&nbsp;The authority an individual may exercise, with respect to investment control or trading discretion, on another person's account (e.g., executor, trustee, power of attorney). |
| Non-Access Person | &nbsp;&nbsp;Any person in a role that has not been designated as an Access Person role. |
| Note | &nbsp;&nbsp;A financial security that generally has a longer term than a bill, but a shorter term than a Bond. However, the duration of a note can vary significantly and may not always fall neatly into this categorization. Notes are similar to Bonds in that they are sold at, above, or below face (par) value; make regular interest payments; and have a specified term until maturity. |
| Open-End Fund | &nbsp;&nbsp;A mutual fund that has an unlimited number of shares available for purchase. |
| Option | &nbsp;&nbsp;The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, including foreign currencies and Digital Currencies (e.g., Bitcoin), index, or debt, at a specified price (the strike price) during a specified period or on one particular date. |
| Private Placement | &nbsp;&nbsp;A Security that is not registered or required to be registered under applicable securities laws. Private Placements are generally sold to a relatively small number of select investors (as opposed to a public issue, in which Securities are made available for sale on the open market) in order to raise capital. Private Placements may include, among others, interests in hedge funds (including limited partnership interests) and shares of private companies. Investors in Private Placements are usually banks, mutual funds, insurance companies, pension funds, hedge funds, and high net worth individuals. Private Placements are typically held or maintained outside of Vanguard. |
| Related Security | &nbsp;&nbsp;Any Security or instrument that provides economic exposure to the same company or entity—provided, however, that equity instruments will |

---

Page **25** of **37**

![](tm234376d1_coeimg01.jpg)

---

| | |
|:---|:---|
| | &nbsp;&nbsp;generally not be considered related to fixed income instruments (other than convertible Bonds) and vice versa. For example, all of the following instruments would be related to the common Stock of Company X: Options, Futures, Rights, and Warrants on Company X common Stock; preferred Stock issued by Company X; and Bonds convertible into Company X common Stock. Similarly, different Bonds issued by Company X would be related to one another. |
| Reportable Security | &nbsp;&nbsp;Any Covered Security, ETF, ETN, or Digital Security Token. |
| Repurchase Agreement | &nbsp;&nbsp;An arrangement by which the seller of an asset agrees, at the time of the sale, to buy back the asset at a specific price and, typically, on a given date (normally the next day). |
| Right | &nbsp;&nbsp;A Security giving stockholders entitlement to purchase new shares issued by the corporation issuer at a predetermined price (normally at a discount to the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire. |
| Secondary Offering | &nbsp;&nbsp;The sale of new or closely held shares by a company that has already made an Initial Public Offering. |
| Security | &nbsp;&nbsp;Any Stock, Bond, money market instrument, Note, evidence of indebtedness, Debenture, Warrant, Option, Right, Investment Contract, ETF, ETN, Digital Currency that has been deemed to be a security by the US Securities and Exchange Commission, Certificate, or any other investment or interest commonly known as a Security. |
| SPAC (Special Purpose Acquisition Company) | &nbsp;&nbsp;A shell company or company with no commercial operations that is formed strictly to raise capital through an Initial Public Offering (IPO) for the purpose of acquiring an existing company. |
| Spread Betting | &nbsp;&nbsp;A way of trading that enables you to profit from movements in a wide range of markets from Securities to currencies, including foreign currencies and Digital Currencies, Digital Security Tokens, commodities, and interest rates. Spread betting allows you to trade on whether the price quoted for these financial instruments will go up or down. |
| Stock | &nbsp;&nbsp;A Security that represents part ownership, or equity, in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits, some of which could be paid out as dividends. |
| UCITS (Undertakings for the Collective Investment of Transferable Securities) | &nbsp;&nbsp;A regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. |
| Vanguard Client | &nbsp;&nbsp;The clients of VGI, or any of the International Subsidiaries, and investors in the Vanguard Funds, including the Vanguard Funds themselves. |
| Vanguard Fund | &nbsp;&nbsp;Vanguard mutual funds, Vanguard managed funds, Vanguard UCITS funds, Vanguard ETFs, and any other accounts sponsored or managed by Vanguard. This includes, but is not limited to, separately managed accounts and collective trusts. |
| Warrant | &nbsp;&nbsp;An entitlement to purchase a certain amount of common Stock at a set price (usually higher than the current price) during an extended period of time. Usually issued with a fixed-income security to enhance its marketability, a Warrant can be transferred, traded, or exercised by the holder. |

---

Page **26** of **37**

**Policy Compliance** 

Questions regarding this policy may be submitted to Code_of_Ethics@vanguard.com.

Please be aware of and comply with any supplemental policies that may apply to your role, department, or geographic region. Check with your manager for more information.

If you believe you may have breached this policy, you should immediately report it to your manager, notify the policy contact for your region, and work with them to take swift corrective action. Alternatively, you may report concerns regarding this policy via the Anonymous Reporting channel that Vanguard has arranged for your region. You are expected to cooperate with any research or investigation into conduct regarding this policy.

The Compliance Department is the owner of this policy. Any violations or potential violations of this policy may be investigated by the Compliance Department, and if it is determined that there has been a violation, you may be subject to penalties and sanctions as described in the Disciplinary Action Policy and, for crew and contingent workers in Australia, the Managing Misconduct Policy. Any violation of this policy may result in disciplinary action up to and including termination of employment.

Refer to the Policy Disclaimer Statement for more information.

Page **27** of **37**

**Appendix**

**Appendix A**

Am I an Access Person, and if so, which Access Person "designation" applies?

**Appendix B**

What accounts must be disclosed?

**Appendix C**

Trading and Reporting Requirements for Advisor Access Persons

**Appendix D**

Trading and Reporting Requirements for Fund Access Persons

**Appendix E**

Trading and Reporting Requirements for Fund Access Persons

**Appendices Endnotes**

Clarifications and explanations to the content within the appendices

Page **28** of **37**

**APPENDIX A**

Am I an Access Person, and if so, which Access Person "designation" applies?

To determine if you are designated as an Access Person, review your offer letter for specifics. If you are unsure, ask your recruiter to confirm for you which designation you fall under. They can look up your designation by referencing our internal Access Person Code of Conduct policy. Your designation will be one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Advisor Access

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Fund Access

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Investment Access

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Non-Access (If this is your designation,
this packet does not apply to you.)

Page **29** of **37**

![](tm234376d1_coeimg01.jpg)

**APPENDIX B** 

What accounts must be disclosed?

This list provides a snapshot of what accounts you will need to disclose. Come prepared knowing how to access the statements for these accounts. Please note, this is list is subject to change.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Common Account Types** | &nbsp;&nbsp;**Access<br> Person<br> disclosure<br> required?** |
| &nbsp;&nbsp; Employer sponsored retirement plans (plan **doesn't** have the ability to hold Vanguard funds) <br> Examples: 401k, 403b, 457b, Employee Stock Options Plan (ESOP), Employee Stock Purchase Plan (ESPP), and pension plans  | No |
| &nbsp;&nbsp; Employer sponsored retirement plans (plan **does** have the ability to hold Vanguard funds) <br> Examples: 401k, 403b, 457b, Employee Stock Options Plan (ESOP), Employee Stock Purchase Plan (ESPP), and pension plans  | Yes |
| &nbsp;&nbsp;529 Plans (plan **doesn't** have the ability to hold Vanguard funds) | No |
| &nbsp;&nbsp;529 plans (plan **does** have the ability to hold Vanguard funds) | Yes |
| &nbsp;&nbsp;Health Savings Account (plan **doesn't** have the ability to hold Vanguard funds) | No |
| &nbsp;&nbsp;Health Savings Account (plan **does** have the ability to hold Vanguard funds) - Including Vanguard's HSA | Yes |
| &nbsp;&nbsp; Vanguard personal accounts<sup>i</sup> <br> **Examples:** Vanguard Brokerage Accounts, Transfer Agent Accounts (Mutual Fund Only account)  | Yes |
| &nbsp;&nbsp; Outside brokerage accounts (including retirement accounts not listed above)<sup>3</sup> <br> **Please Note:** Accounts that are open but have a $0 balance also must be reported because they still have the ability to hold securities.  | Yes |
| &nbsp;&nbsp;Bank accounts - checking and savings | No |
| &nbsp;&nbsp;Annuities | No |
| &nbsp;&nbsp;Fully managed accounts<sup>ii</sup> | Yes<sup>2</sup> |

---

Page **30** of **37**

![](tm234376d1_coeimg01.jpg)

**APPENDIX C**

Trading and Reporting Requirements for Advisor Access Persons

---

| | | | |
|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **60 Day Hold** | **Reportable<sup>iii</sup>** |
| &nbsp;&nbsp;**American Depository Receipts (ADRs)** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Annuities and Insurance Products** | Yes | No | No |
| &nbsp;&nbsp;**Bankers' Acceptances, Certificates of Deposits, and Commercial Paper** | Yes | No | No |
| &nbsp;&nbsp;**Bonds (municipal and corporate)** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Cash** | No | No | No |
| &nbsp;&nbsp;**Closed-End Funds** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Commodities (ex: futures & options)** | Yes | No | No |
| &nbsp;&nbsp;**Currencies** | Yes | No | No |
| &nbsp;&nbsp;**Debentures** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Digital Currency** | Yes | No | No |
| &nbsp;&nbsp;**Digital Utility Tokens** | Yes | No | Yes |
| &nbsp;&nbsp;**Digital Security Tokens** | Yes | No | Yes |
| &nbsp;&nbsp;**Direct Obligations** | Yes | No | No |
| &nbsp;&nbsp;**Non-Vanguard ETFs and ETNs** | Yes | No | Yes |
| &nbsp;&nbsp;**Evidence of Indebtedness** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Government bonds** | Yes | No | No |
| &nbsp;&nbsp;**High Quality Short Term Debt Instruments** | Yes | No | Yes |
| &nbsp;&nbsp;**Investment Contracts** | Yes | Yes | Yes |
| &nbsp;&nbsp;**IPOs (and ICOs)** | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Money market instruments (non-Vanguard)** | Yes | No | No |
| &nbsp;&nbsp;**Money market instruments (Vanguard)** | Yes | No | Yes |
| &nbsp;&nbsp;**Open-End funds (non-Vanguard)** | Yes | No | No |
| &nbsp;&nbsp;**Notes** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Options on Covered Securities** | Yes | Yes<sup>iv</sup> | Yes |
| &nbsp;&nbsp;**Private placements (unlisted securities)** | Yes<sup>v</sup> | No | Yes |
| &nbsp;&nbsp;**Rights** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Real Estate Investment Trusts** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Security Futures** | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Short Positions** | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**SPACs** | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Stocks** | Yes | Yes | Yes |
| &nbsp;&nbsp;**Unit Investment Trusts** | Yes | Yes | Yes |

---

Page **31** of **37**

![](tm234376d1_coeimg01.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **60 Day Hold** | **Reportable<sup>iii</sup>** |
| &nbsp;&nbsp;**UCITs Funds (non-Vanguard)** | **Yes** | **No** | **No** |
| &nbsp;&nbsp;**Vanguard Annuities and Insurance Products** | Yes | No | Yes |
| &nbsp;&nbsp;**Vanguard ETFs** | Yes | No | Yes |
| &nbsp;&nbsp;**Vanguard Funds** | Yes | No | Yes |
| &nbsp;&nbsp;**Warrants** | Yes | Yes | Yes |

---

Page **32** of **37**

![](tm234376d1_coeimg01.jpg)

**APPENDIX D**

Trading and Reporting Requirements for Fund Access Persons

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **Preclear** | **7 Day Blackout** | **60 Day Hold** | **Reportable<sup>iii</sup>** |
| &nbsp;&nbsp;**American Depository Receipts (ADRs)** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Annuities and Insurance Products** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Bankers' Acceptances, Certificates of Deposits, and Commercial Paper** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Bonds (municipal and corporate)** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Cash** | No | No | No | No | No |
| &nbsp;&nbsp;**Closed-End Funds** | Yes | Yes | No | Yes | Yes |
| &nbsp;&nbsp;**Commodities (ex: futures & options)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Currencies** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Debentures** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Digital Currency** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Digital Utility Tokens** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Digital Security Tokens** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Direct Obligations** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Non-Vanguard ETFs and ETNs** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Evidence of Indebtedness** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Government bonds** | Yes | No | No | No | No |
| &nbsp;&nbsp;**High Quality Short Term Debt Instruments** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Investment Contracts** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**IPOs (and ICOs)** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Money market instruments (non-Vanguard)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Money market instruments (Vanguard)** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Open-End funds (non-Vanguard)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Notes** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Options on Securities** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Private placements (unlisted securities)** | Yes<sup>v</sup> | Yes | No | No | Yes |
| &nbsp;&nbsp;**Rights** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Real Estate Investment Trusts** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Security Futures** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Short Positions** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |

---

Page **33** of **37**

![](tm234376d1_coeimg01.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **Preclear** | **7 Day Blackout** | **60 Day Hold** | **Reportable<sup>iii</sup>** |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**SPACs** | **Prohibited** | **Prohibited** | **Prohibited** |
| &nbsp;&nbsp;**Stocks** | Yes | Yes<sup>vi</sup> | Yes |
| &nbsp;&nbsp;**Unit Investment Trusts** | Yes | Yes | Yes |
| &nbsp;&nbsp;**UCIT Funds (non-Vanguard)** | No | No | No |
| &nbsp;&nbsp;**Vanguard Annuities and Insurance Products** | No | No | Yes |
| &nbsp;&nbsp;**Vanguard ETFs** | No | No | Yes |
| &nbsp;&nbsp;**Vanguard Funds** | No | No | Yes |
| &nbsp;&nbsp;**Warrants** | Yes | Yes | Yes |

---

Page **34** of **37**

![](tm234376d1_coeimg01.jpg)

**APPENDIX E**

Trading and Reporting Requirements for Investment Access Persons

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **Preclear** | **7 Day Blackout** | **60 Day Hold** | **Reportable<sup>iii</sup>** |
| &nbsp;&nbsp;**American Depository Receipts (ADRs)** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Annuities and Insurance Products** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Bankers' Acceptances, Certificates of Deposits, and Commercial Paper** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Bonds (municipal and corporate)** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Cash** | No | No | No | No | No |
| &nbsp;&nbsp;**Closed-End Funds** | Yes | Yes | No | Yes | Yes |
| &nbsp;&nbsp;**Commodities (ex: futures & options)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Currencies** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Debentures** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Digital Currency** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Digital Utility Tokens** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Digital Security Tokens** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Direct Obligations** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Non-Vanguard ETFs and ETNs** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Evidence of Indebtedness** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Government bonds** | Yes | No | No | No | No |
| &nbsp;&nbsp;**High Quality Short Term Debt Instruments** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Investment Contracts** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**IPOs (and ICOs)** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Money market instruments (non-Vanguard)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Money market instruments (Vanguard)** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Open-End funds (non-Vanguard)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Notes** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Options on Securities** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Private placements (unlisted securities)** | Yes<sup>v</sup> | Yes | No | No | Yes |
| &nbsp;&nbsp;**Rights** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Real Estate Investment Trusts** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Security Futures** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |
| &nbsp;&nbsp;**Short Positions** | Prohibited | Prohibited | Prohibited | Prohibited | Prohibited |

---

Page **35** of **37**

![](tm234376d1_coeimg01.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Securities and Activities** | **Can I Trade** | **Preclear** | **7 Day Blackout** | **60 Day Hold** | **Reportable<sup>iii</sup>** |
| &nbsp;&nbsp;**SPACs** | **Prohibited** | **Prohibited** | **Prohibited** | **Prohibited** | **Prohibited** |
| &nbsp;&nbsp;**Stocks** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**Unit Investment Trusts** | Yes | Yes | Yes | Yes | Yes |
| &nbsp;&nbsp;**UCITs Funds (non-Vanguard)** | Yes | No | No | No | No |
| &nbsp;&nbsp;**Vanguard Annuities and Insurance Products** | Yes | No | No | No | Yes |
| &nbsp;&nbsp;**Vanguard ETFs** | Yes | Yes | No | Yes | Yes |
| &nbsp;&nbsp;**Vanguard Funds** | Yes | No<sup>vii</sup> | No | No<sup>viii</sup> | Yes |
| &nbsp;&nbsp;**Warrants** | Yes | Yes | Yes | Yes | Yes |

---

Page **36** of **37**

![](tm234376d1_coeimg01.jpg)

**APPENDICES ENDNOTES**

Clarifications and explanations to the content within the appendices

<sup>i</sup> Accounts you share ownership with will need to be disclosed, e.g., a joint account

<sup>ii</sup> Fully managed accounts can be maintained outside of Vanguard with review and approval from the Code team. Please provide one of the following documents for review:

&nbsp;&nbsp;&nbsp;&nbsp;· A
 signed discretionary/advisory agreement from the outside firm, or

&nbsp;&nbsp;&nbsp;&nbsp;· A
 signed letter from your advisor on their firm's letterhead.

This documentation should include the following information:

&nbsp;&nbsp;&nbsp;&nbsp;· The account number(s) for any account considered fully managed

&nbsp;&nbsp;&nbsp;&nbsp;· The name of your advisor or the name of the program in
which the account is enrolled

&nbsp;&nbsp;&nbsp;&nbsp;· A statement that you have no discretion/trading authority
over your managed account(s)

<sup>iii</sup> Reportable on Initial Holdings Report or when acquired. All Crew and Contingent Workers deemed Associated Persons must report their accounts, holdings, and transactions through My Compliance Office (MCO).

<sup>iv</sup> Options on Covered Securities include trades that are exercised or assigned involuntarily by the crew member.

<sup>v</sup> Prohibited from acquiring Securities in a Private Placement without prior approval from Compliance.

<sup>vi</sup> Permitted to sell stock with a market cap above US $5 billion, so long as, over a rolling 30 day period, their total value aggregate sales of the stock does not exceed $10,000.

<sup>vii</sup> Vanguard ETFs require preclearance.

<sup>viii</sup> Vanguard ETFs require a 60 day hold.

Page **37** of **37**

## Ex-99.Cert

**Exhibit 99.CERT**

<u>CERTIFICATIONS</u>

I, Mortimer J. Buckley, certify that:

1. I have reviewed this report on Form N-CSR of Vanguard Specialized Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: March 24, 2023 | /s/ Mortimer J. Buckley |
|  | Mortimer J. Buckley |
|  | Chief Executive Officer |

---

<u>CERTIFICATIONS</u>

I, Christine Buchanan, certify that:

1. I have reviewed this report on Form N-CSR of Vanguard Specialized Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: March 24, 2023 | /s/ Christine Buchanan |
|  | Christine Buchanan |
|  | Chief Financial Officer |

---

## Exhibit 99.906

**Exhibit 99.906CERT**

**Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

Name of Issuer: **<u>Vanguard Specialized Funds</u>**

In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully
 complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information
 contained in the Report fairly presents, in all material respects, the financial condition
 and results of operations of the issuer.

---

| | |
|:---|:---|
| Date: March 24, 2023 | /s/ Mortimer J. Buckley |
|  | Mortimer J. Buckley |
|  | Chief Executive Officer |

---

**Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

Name of Issuer: **<u>Vanguard Specialized Funds</u>**

In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to her knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully
 complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information
 contained in the Report fairly presents, in all material respects, the financial condition
 and results of operations of the issuer.

---

| | |
|:---|:---|
| Date: March 24, 2023 | /s/ Christine Buchanan |
|  | Christine Buchanan |
|  | Chief Financial Officer |

---