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: 811-07443
Name of Registrant: | Vanguard Whitehall Funds |
Address of Registrant: | P.O. Box 2600 |
| Valley Forge, PA 19482 |
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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: October 31
Date of reporting period: November 1, 2018—April 30, 2019
Item 1: Reports to Shareholders
Semiannual Report | April 30, 2019
Vanguard Selected Value Fund
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See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
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Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents |
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About Your Fund’s Expenses | 1 |
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Financial Statements | 4 |
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Trustees Approve Advisory Arrangements | 16 |
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 April 30, 2019
Selected Value Fund |
| Beginning |
| Ending |
| Expenses |
Based on Actual Fund Return |
| $1,000.00 |
| $1,085.16 |
| $1.60 |
Based on Hypothetical 5% Yearly Return |
| 1,000.00 |
| 1,023.26 |
| 1.56 |
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 0.31%. 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 (181/365).
Selected Value Fund
Sector Diversification
As of April 30, 2019
Communication Services | 2.0% |
Consumer Discretionary | 15.4 |
Consumer Staples | 1.2 |
Energy | 7.9 |
Financials | 24.7 |
Health Care | 2.1 |
Industrials | 21.0 |
Information Technology | 10.1 |
Materials | 5.1 |
Other | 0.0 |
Real Estate | 5.7 |
Utilities | 4.8 |
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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 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.
Selected Value Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
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| Market |
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| Value· |
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| Shares |
| ($000 | ) |
Common Stocks (95.9%)1 |
|
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Communication Services (1.8%) |
|
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|
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^ |
| Meredith Corp. |
| 1,182,867 |
| 69,789 |
|
|
| Interpublic Group of Cos. Inc. |
| 2,165,722 |
| 49,812 |
|
|
| Omnicom Group Inc. |
| 285,382 |
| 22,839 |
|
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| News Corp. Class A |
| 580,113 |
| 7,205 |
|
|
|
|
|
|
| 149,645 |
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Consumer Discretionary (14.8%) |
|
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| Dollar General Corp. |
| 1,106,081 |
| 139,466 |
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| Royal Caribbean Cruises Ltd. |
| 1,104,408 |
| 133,567 |
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| Advance Auto Parts Inc. |
| 762,434 |
| 126,808 |
|
* |
| Norwegian Cruise Line Holdings Ltd. |
| 2,145,897 |
| 121,007 |
|
|
| Lennar Corp. Class A |
| 2,147,930 |
| 111,757 |
|
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| Wyndham Hotels & Resorts Inc. |
| 1,999,301 |
| 111,401 |
|
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| Aramark |
| 3,342,872 |
| 103,896 |
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| MGM Resorts International |
| 3,802,036 |
| 101,248 |
|
* |
| Taylor Morrison Home Corp. Class A |
| 3,989,443 |
| 77,236 |
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| Lear Corp. |
| 363,659 |
| 52,003 |
|
* |
| Mohawk Industries Inc. |
| 320,091 |
| 43,612 |
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| Newell Brands Inc. |
| 2,571,382 |
| 36,977 |
|
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| PVH Corp. |
| 283,869 |
| 36,616 |
|
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| Gildan Activewear Inc. Class A |
| 632,461 |
| 23,319 |
|
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| Foot Locker Inc. |
| 233,050 |
| 13,333 |
|
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| Toll Brothers Inc . |
| 98,920 |
| 3,769 |
|
|
|
|
|
|
| 1,236,015 |
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Consumer Staples (1.1%) |
|
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| Coca-Cola European Partners plc |
| 1,305,538 |
| 69,964 |
|
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| Kellogg Co. |
| 337,425 |
| 20,347 |
|
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|
|
| 90,311 |
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Energy (7.7%) |
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^ |
| Vermilion Energy Inc. |
| 4,883,274 |
| 124,816 |
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| Hess Corp. |
| 1,928,715 |
| 123,669 |
|
* |
| Parsley Energy Inc. Class A |
| 3,625,653 |
| 72,368 |
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| Halliburton Co. |
| 1,800,867 |
| 51,019 |
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| Kosmos Energy Ltd. |
| 6,438,660 |
| 43,075 |
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| Golar LNG Ltd. |
| 2,091,441 |
| 40,867 |
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| TechnipFMC plc |
| 1,648,322 |
| 40,532 |
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| National Oilwell Varco Inc. |
| 1,322,770 |
| 34,577 |
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| Cenovus Energy Inc. |
| 3,219,653 |
| 31,907 |
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| Baker Hughes a GE Co. Class A |
| 840,821 |
| 20,196 |
|
^,* |
| Chesapeake Energy Corp. |
| 5,816,532 |
| 16,926 |
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| Murphy Oil Corp. |
| 352,996 |
| 9,616 |
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| Ensco Rowan plc Class A |
| 685,248 |
| 9,573 |
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* |
| Noble Corp. plc |
| 2,506,000 |
| 6,591 |
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| Nabors Industries Ltd. |
| 1,741,181 |
| 6,094 |
|
* |
| WPX Energy Inc. |
| 400,879 |
| 5,568 |
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|
|
|
| 637,394 |
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Financials (23.9%) |
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| Axis Capital Holdings Ltd. |
| 3,535,291 |
| 200,981 |
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| Willis Towers Watson plc |
| 854,890 |
| 157,590 |
|
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| Unum Group |
| 4,048,194 |
| 149,459 |
|
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| Fidelity National Financial Inc. |
| 2,934,110 |
| 117,218 |
|
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| New York Community Bancorp Inc. |
| 9,797,824 |
| 113,949 |
|
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| FNB Corp. |
| 8,496,937 |
| 103,068 |
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| Northern Trust Corp. |
| 997,051 |
| 98,259 |
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| Jefferies Financial Group Inc. |
| 4,774,345 |
| 98,208 |
|
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| CNA Financial Corp. |
| 2,066,402 |
| 95,736 |
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| Navient Corp. |
| 5,453,608 |
| 73,678 |
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| Everest Re Group Ltd. |
| 300,292 |
| 70,719 |
|
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| KKR & Co. Inc. Class A |
| 2,750,798 |
| 67,257 |
|
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| Voya Financial Inc. |
| 1,218,871 |
| 66,904 |
|
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| Regions Financial Corp. |
| 4,105,725 |
| 63,762 |
|
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| Element Fleet Management Corp. |
| 8,914,100 |
| 55,293 |
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Selected Value Fund
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| Market |
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| Value· |
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| Shares |
| ($000 | ) |
|
| KeyCorp |
| 3,042,425 |
| 53,395 |
|
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| Valley National Bancorp |
| 4,871,908 |
| 51,058 |
|
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| AXA Equitable Holdings Inc. |
| 1,927,461 |
| 43,734 |
|
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| SLM Corp. |
| 4,236,673 |
| 43,045 |
|
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| Fifth Third Bancorp |
| 1,435,850 |
| 41,381 |
|
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| Invesco Ltd. |
| 1,501,950 |
| 32,998 |
|
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| Webster Financial Corp. |
| 528,766 |
| 28,093 |
|
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| Allstate Corp. |
| 251,853 |
| 24,949 |
|
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| Torchmark Corp. |
| 279,434 |
| 24,495 |
|
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| Hanover Insurance Group Inc. |
| 198,464 |
| 23,937 |
|
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| Hartford Financial Services Group Inc. |
| 424,208 |
| 22,190 |
|
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| Legg Mason Inc. |
| 639,775 |
| 21,400 |
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| Franklin Resources Inc. |
| 587,849 |
| 20,334 |
|
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| MFA Financial Inc. |
| 2,274,657 |
| 17,083 |
|
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| Comerica Inc. |
| 121,055 |
| 9,514 |
|
|
|
|
| 1,989,687 |
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Health Care (1.8%) |
|
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| Cardinal Health Inc. |
| 1,089,555 |
| 53,072 |
|
* |
| Mylan NV |
| 1,810,193 |
| 48,857 |
|
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| Cigna Corp. |
| 162,106 |
| 25,749 |
|
|
| McKesson Corp. |
| 193,631 |
| 23,091 |
|
|
|
|
|
|
| 150,769 |
|
Industrials (20.3%) |
|
|
|
|
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* |
| AerCap Holdings NV |
| 3,700,000 |
| 183,668 |
|
* |
| Air France-KLM ADR |
| 15,446,816 |
| 178,195 |
|
|
| Stanley Black & Decker Inc. |
| 1,111,769 |
| 162,985 |
|
* |
| JetBlue Airways Corp. |
| 6,704,707 |
| 124,372 |
|
|
| Spirit AeroSystems Holdings Inc. Class A |
| 1,397,461 |
| 121,439 |
|
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| Johnson Controls International plc |
| 2,676,774 |
| 100,379 |
|
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| Jacobs Engineering Group Inc. |
| 1,230,142 |
| 95,877 |
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| Ryder System Inc. |
| 1,501,301 |
| 94,582 |
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| Wabtec Corp. |
| 948,521 |
| 70,257 |
|
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| Owens Corning |
| 1,316,609 |
| 67,503 |
|
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| Nielsen Holdings plc |
| 2,398,545 |
| 61,235 |
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| BWX Technologies Inc. |
| 1,188,245 |
| 60,719 |
|
* |
| JELD-WEN Holding Inc. |
| 2,926,689 |
| 57,802 |
|
|
| Carlisle Cos. Inc. |
| 386,716 |
| 54,689 |
|
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| KBR Inc. |
| 2,420,605 |
| 53,786 |
|
* |
| AECOM |
| 1,328,216 |
| 45,027 |
|
|
| Actuant Corp. Class A |
| 1,717,514 |
| 43,934 |
|
* |
| Avis Budget Group Inc. |
| 1,159,232 |
| 41,211 |
|
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| Terex Corp. |
| 1,176,904 |
| 39,226 |
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| Snap-on Inc. |
| 214,256 |
| 36,055 |
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|
|
|
|
|
| 1,692,941 |
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Information Technology (9.5%) |
|
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* |
| Micron Technology Inc. |
| 3,672,900 |
| 154,482 |
|
^ |
| Microchip Technology Inc. |
| 1,269,207 |
| 126,781 |
|
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| Marvell Technology Group Ltd. |
| 4,583,885 |
| 114,689 |
|
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| Total System Services Inc. |
| 918,217 |
| 93,879 |
|
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| Avnet Inc. |
| 1,478,844 |
| 71,887 |
|
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| Hewlett Packard Enterprise Co. |
| 3,220,553 |
| 50,917 |
|
* |
| Anixter International Inc. |
| 794,655 |
| 49,960 |
|
* |
| Arrow Electronics Inc. |
| 304,204 |
| 25,708 |
|
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| Genpact Ltd. |
| 672,758 |
| 24,421 |
|
* |
| Flex Ltd. |
| 1,991,393 |
| 21,985 |
|
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| Jabil Inc. |
| 711,890 |
| 21,506 |
|
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| Juniper Networks Inc. |
| 706,087 |
| 19,608 |
|
* |
| Celestica Inc. |
| 2,081,919 |
| 14,844 |
|
|
|
|
|
|
| 790,667 |
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Materials (4.9%) |
|
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* |
| Kinross Gold Corp. |
| 34,873,303 |
| 110,897 |
|
* |
| Axalta Coating Systems Ltd. |
| 3,435,990 |
| 92,703 |
|
* |
| Element Solutions Inc. |
| 7,502,757 |
| 81,480 |
|
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| Gold Fields Ltd. ADR |
| 19,946,600 |
| 74,800 |
|
* |
| IAMGOLD Corp. |
| 13,311,507 |
| 40,334 |
|
* |
| Leagold Mining Corp. |
| 6,787,563 |
| 7,802 |
|
|
|
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|
|
| 408,016 |
|
Other (0.0%) |
|
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* |
| Leagold Mining Corp Warrants Exp. 5/29/2020 |
| 2,944,713 |
| — |
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Real Estate (5.5%) |
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| MGM Growth Properties LLC Class A |
| 4,359,302 |
| 140,631 |
|
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| Liberty Property Trust |
| 2,752,895 |
| 136,653 |
|
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| HCP Inc. |
| 3,105,809 |
| 92,491 |
|
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| GEO Group Inc. |
| 2,893,850 |
| 57,935 |
|
^ |
| Realogy Holdings Corp. |
| 1,286,639 |
| 16,752 |
|
|
| Hospitality Properties Trust |
| 583,800 |
| 15,179 |
|
|
|
|
|
|
| 459,641 |
|
Utilities (4.6%) |
|
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| Xcel Energy Inc. |
| 2,516,027 |
| 142,155 |
|
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| Pinnacle West Capital Corp. |
| 1,345,271 |
| 128,164 |
|
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| Edison International |
| 1,084,661 |
| 69,169 |
|
|
| Avangrid Inc. |
| 827,790 |
| 42,391 |
|
|
|
|
|
|
| 381,879 |
|
Total Common Stocks |
|
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| 7,986,965 |
|
Selected Value Fund
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| Market |
| |
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| Value· |
| |
|
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| Shares |
| ($000 | ) | |
Temporary Cash Investments (7.2%)1 |
|
|
|
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Money Market Fund (7.1%) |
|
|
|
|
| |||
2,3 |
| Vanguard Market Liquidity Fund, 2.545% |
| 5,904,104 |
| 590,470 |
| |
|
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| |
|
|
|
| Face |
|
|
| |
|
|
|
| Amount |
|
|
| |
|
|
|
| ($000 | ) |
|
|
|
U.S. Government and Agency Obligations (0.1%) |
|
|
|
|
| |||
4 |
| United States Treasury Bill, 2.411%, 5/23/19 |
| 3,000 |
| 2,995 |
| |
4 |
| United States Treasury Bill, 2.406%, 6/20/19 |
| 2,500 |
| 2,492 |
| |
4 |
| United States Treasury Bill, 2.386%, 7/5/19 |
| 1,200 |
| 1,195 |
| |
|
|
|
|
|
| 6,682 |
| |
Total Temporary Cash Investments |
|
|
| 597,152 |
| |||
Total Investments (103.1%) |
|
|
| 8,584,117 |
| |||
Other Assets and Liabilities (-3.1%) |
|
|
|
|
| |||
Other Assets |
|
|
| 22,865 |
| |||
Liabilities3 |
|
|
| (280,625 | ) | |||
|
|
|
|
|
| (257,760 | ) | |
Net Assets (100%) |
|
|
|
|
| |||
Applicable to 312,849,211 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 8,326,357 |
| |||
Net Asset Value Per Share |
|
|
| $26.61 |
| |||
|
|
|
|
|
| Amount |
|
|
|
|
|
|
| ($000 | ) |
Statement of Assets and Liabilities |
|
|
|
|
| ||
Assets |
|
|
|
|
| ||
Investments in Securities, at Value |
|
|
|
|
| ||
Unaffiliated Issuers |
|
|
| 7,993,647 |
| ||
Affiliated Issuers |
|
|
| 590,470 |
| ||
Total Investments in Securities |
|
|
| 8,584,117 |
| ||
Investment in Vanguard |
|
|
| 400 |
| ||
Receivables for Investment Securities Sold |
|
|
| 16,369 |
| ||
Receivables for Accrued Income |
|
|
| 4,126 |
| ||
Receivables for Capital Shares Issued |
|
|
| 1,700 |
| ||
Variation Margin Receivable— Futures Contracts |
|
|
| 270 |
| ||
Total Assets |
|
|
| 8,606,982 |
| ||
Liabilities |
|
|
|
|
| ||
Payables for Investment Securities Purchased |
|
|
| 43,475 |
| ||
Collateral for Securities on Loan |
|
|
| 215,293 |
| ||
Payables to Investment Advisor |
|
|
| 3,201 |
| ||
Payables for Capital Shares Redeemed |
|
|
| 10,418 |
| ||
Payables to Vanguard |
|
|
| 8,224 |
| ||
Other Liabilities |
|
|
| 14 |
| ||
Total Liabilities |
|
|
| 280,625 |
| ||
Net Assets |
|
|
| 8,326,357 |
|
Selected Value Fund
At April 30, 2019, net assets consisted of:
|
|
|
|
|
| Amount |
|
|
|
|
|
|
| ($000 | ) |
Paid-in Capital |
|
|
| 6,710,378 |
| ||
Total Distributable Earnings (Loss) |
|
|
| 1,615,979 |
| ||
Net Assets |
|
|
| 8,326,357 |
|
· See Note A in Notes to Financial Statements.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $206,046,000.
* Non-income-producing security.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 97.6% and 5.5%, respectively, of net assets.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Includes $215,293,000 of collateral received for securities on loan.
4 Securities with a value of $6,383,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts |
|
|
|
|
|
|
|
| ($000
| ) |
|
|
|
|
|
|
|
| Value and |
|
|
|
|
| Number of |
|
|
| Unrealized |
|
|
|
|
| Long (Short | ) | Notional |
| Appreciation |
|
|
| Expiration
|
| Contracts
|
| Amount
|
| (Depreciation
| ) |
Long Futures Contracts |
|
|
|
|
|
|
|
|
|
E-mini S&P 500 Index |
| June 2019 |
| 964 |
| 142,118 |
| 2,838 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
Selected Value Fund
Statement of Operations
|
| Six Months Ended |
|
|
| April 30, 2019 |
|
|
|
($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Dividends—Unaffiliated Issuers1 |
| 83,921 |
|
Dividends—Affiliated Issuers |
| 4,137 |
|
Interest—Unaffiliated Issuers |
| 120 |
|
Interest—Affiliated Issuers |
| 3,825 |
|
Securities Lending—Net |
| 478 |
|
Total Income |
| 92,481 |
|
Expenses |
|
|
|
Investment Advisory Fees—Note B |
|
|
|
Basic Fee |
| 9,313 |
|
Performance Adjustment |
| (3,062 | ) |
The Vanguard Group—Note C |
|
|
|
Management and Administrative |
| 5,958 |
|
Marketing and Distribution |
| 511 |
|
Custodian Fees |
| 17 |
|
Shareholders’ Reports |
| 90 |
|
Trustees’ Fees and Expenses |
| 4 |
|
Total Expenses |
| 12,831 |
|
Expenses Paid Indirectly |
| (209 | ) |
Net Expenses |
| 12,622 |
|
Net Investment Income |
| 79,859 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold—Unaffiliated Issuers |
| 219,440 |
|
Investment Securities Sold—Affiliated Issuers |
| 1,089 |
|
Futures Contracts |
| 5,827 |
|
Foreign Currencies |
| 8 |
|
Realized Net Gain (Loss) |
| 226,364 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities—Unaffiliated Issuers |
| 326,585 |
|
Investment Securities—Affiliated Issuers |
| 17,355 |
|
Futures Contracts |
| 8,350 |
|
Change in Unrealized Appreciation (Depreciation) |
| 352,290 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 658,513 |
|
1 Dividends are net of foreign withholding taxes of $1,041,000.
See accompanying Notes, which are an integral part of the Financial Statements.
Selected Value Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
| Year Ended |
|
|
| April 30, |
| October 31, |
|
|
| 2019 |
| 2018 |
|
|
| ($000 | ) | ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
|
Operations |
|
|
|
|
|
Net Investment Income |
| 79,859 |
| 166,466 |
|
Realized Net Gain (Loss) |
| 226,364 |
| 763,198 |
|
Change in Unrealized Appreciation (Depreciation) |
| 352,290 |
| (1,822,298 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 658,513 |
| (892,634 | ) |
Distributions |
|
|
|
|
|
Net Investment Income |
| (155,280 | ) | (135,374 | ) |
Realized Capital Gain1 |
| (665,160 | ) | (859,146 | ) |
Total Distributions |
| (820,440 | ) | (994,520 | ) |
Capital Share Transactions |
|
|
|
|
|
Issued |
| 481,205 |
| 1,443,090 |
|
Issued in Lieu of Cash Distributions |
| 757,580 |
| 917,398 |
|
Redeemed |
| (1,561,508 | ) | (2,236,747 | ) |
Net Increase (Decrease) from Capital Share Transactions |
| (322,723 | ) | 123,741 |
|
Total Increase (Decrease) |
| (484,650 | ) | (1,763,413 | ) |
Net Assets |
|
|
|
|
|
Beginning of Period |
| 8,811,007 |
| 10,574,420 |
|
End of Period |
| 8,326,357 |
| 8,811,007 |
|
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $0 and $74,529,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Selected Value Fund
Financial Highlights
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding |
| April 30, |
| Year Ended October 31, |
| ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $27.38 |
| $33.15 |
| $27.24 |
| $28.15 |
| $29.49 |
| $28.07 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .248 | 1 | .493 | 1 | .449 | 1 | .527 |
| .478 |
| .415 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 1.657 |
| (3.153 | ) | 6.760 |
| .030 |
| (.245 | ) | 2.555 |
|
Total from Investment Operations |
| 1.905 |
| (2.660 | ) | 7.209 |
| .557 |
| .233 |
| 2.970 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.506 | ) | (.423 | ) | (.501 | ) | (.443 | ) | (.404 | ) | (.330 | ) |
Distributions from Realized Capital Gains |
| (2.169 | ) | (2.687 | ) | (.798 | ) | (1.024 | ) | (1.169 | ) | (1.220 | ) |
Total Distributions |
| (2.675 | ) | (3.110 | ) | (1.299 | ) | (1.467 | ) | (1.573 | ) | (1.550 | ) |
Net Asset Value, End of Period |
| $26.61 |
| $27.38 |
| $33.15 |
| $27.24 |
| $28.15 |
| $29.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return2 |
| 8.52% |
| -9.15% |
| 27.17% |
| 2.20% |
| 0.88% |
| 11.02% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $8,326 |
| $8,811 |
| $10,574 |
| $8,802 |
| $9,663 |
| $10,153 |
|
Ratio of Total Expenses to Average Net Assets3 |
| 0.31% |
| 0.36% |
| 0.39% |
| 0.35% |
| 0.39% |
| 0.41% |
|
Ratio of Net Investment Income to Average Net Assets |
| 1.99% |
| 1.61% |
| 1.47% |
| 2.00% |
| 1.62% |
| 1.53% |
|
Portfolio Turnover Rate |
| 38% |
| 31% |
| 22% |
| 27% |
| 24% |
| 18% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
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 fees increases (decreases) of (0.07%), (0.02%), 0.00%, (0.04%), (0.02%), and 0.01%.
See accompanying Notes, which are an integral part of the Financial Statements.
Selected Value Fund
Notes to Financial Statements
Vanguard Selected Value Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund.
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 at their fair values calculated according to procedures adopted 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. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. 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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Selected Value Fund
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. 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 futures gains (losses).
During the six months ended April 30, 2019, the fund’s average investments in long and short futures contracts represented 1% and 0% of net assets, respectively, based on the average of the 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 all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015–2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 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. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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
Selected Value Fund
Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. The investment advisory firms Barrow, Hanley, Mewhinney & Strauss, LLC, Pzena Investment Management, LLC, and Donald Smith & Co., Inc., each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Barrow, Hanley, Mewhinney & Strauss, LLC, and Pzena Investment Management, LLC, are subject to quarterly adjustments based on performance relative to the Russell Midcap Value Index for the preceding three years. The basic fee of Donald Smith & Co., Inc., is subject to quarterly adjustments based on performance relative to the MSCI Investable Market 2500 Index for the preceding five years.
Vanguard manages the cash reserves of the fund as described below.
For the six months ended April 30, 2019, the aggregate investment advisory fee represented an effective annual basic rate of 0.23% of the fund’s average net assets, before a decrease of $3,062,000 (0.07%) 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, distribution, and cash management 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $400,000, representing 0.00% of the fund’s net assets and 0.16% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D. The fund has asked its investment advisors 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 six months
Selected Value Fund
ended April 30, 2019, these arrangements reduced the fund’s management and administrative expenses by $208,000 and custodian fees by $1,000. The total expense reduction represented an effective annual rate of 0.00% 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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
Investments |
| Level 1 | ) | Level 2 | ) | Level 3 | ) |
Common Stocks |
| 7,986,965 |
| — |
| — |
|
Temporary Cash Investments |
| 590,470 |
| 6,682 |
| — |
|
Futures Contracts—Assets1 |
| 270 |
| — |
| — |
|
Total |
| 8,577,705 |
| 6,682 |
| — |
|
1 Represents variation margin on the last day of the reporting period.
F. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount | ) |
Tax Cost |
| 7,238,952 |
|
Gross Unrealized Appreciation |
| 1,968,327 |
|
Gross Unrealized Depreciation |
| (620,324 | ) |
Net Unrealized Appreciation (Depreciation) |
| 1,348,003 |
|
G. During the six months ended April 30, 2019, the fund purchased $1,496,993,000 of investment securities and sold $2,547,344,000 of investment securities, other than temporary cash investments.
Selected Value Fund
H. Capital shares issued and redeemed were:
|
| Six Months Ended |
| Year Ended |
|
|
| Shares |
| Shares |
|
|
| (000 | ) | (000 | ) |
Issued |
| 19,095 |
| 46,684 |
|
Issued in Lieu of Cash Distributions |
| 33,010 |
| 29,479 |
|
Redeemed |
| (61,016 | ) | (73,418 | ) |
Net Increase (Decrease) in Shares Outstanding |
| (8,911 | ) | 2,745 |
|
I. 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:
|
|
| Current Period Transactions |
| ||||||
| Oct. 31, |
|
| Proceeds | Realized |
|
|
|
| April 30, |
| 2018 |
|
| from | Net | Change in |
|
| Capital Gain | 2019 |
| Market |
| Purchases | Securities | Gain | Unrealized |
|
| Distributions | Market |
| Value |
| at Cost | Sold | (Loss) | App. (Dep.) | Income |
| Received | Value |
| ($000 | ) | ($000) | ($000) | ($000) | ($000) | ($000) |
| ($000) | ($000) |
MGM Growth Properties LLC Class A | 160,151 |
| — | 37,917 | 1,054 | 17,343 | 4,137 |
| 254 | NA1 |
Vanguard Market Liquidity Fund | 448,224 |
| NA2 | NA2 | 35 | 12 | 3,825 |
| — | 590,470 |
Total | 608,375 |
|
|
| 1,089 | 17,355 | 7,962 |
| 254 | 590,470 |
1 Not applicable—at April 30, 2019, the security was still held, but the issuer was no longer an affiliated company of the fund.
2 Not applicable—purchases and sales are for temporary cash investment purposes.
J. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangements
The board of trustees of Vanguard Selected Value Fund has renewed the fund’s investment advisory arrangements with Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley), Donald Smith & Co., Inc. (Donald Smith & Co.), and Pzena Investment Management, LLC (Pzena). The board determined that renewing the advisory arrangements was in the best interests of the fund and its shareholders.
The board based its decision upon an evaluation of each 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 advisors 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 arrangements. 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 each advisor. The board considered the following:
Barrow Hanley. Founded in 1979, Barrow Hanley is known for its commitment to value investing. An affiliate of BrightSphere Investment Group, Barrow Hanley remains independently managed. Using fundamental research, Barrow Hanley seeks to make long-term investments in quality or improving businesses that are undervalued because of short-term disappointments. The advisor seeks to construct a portfolio with strict adherence to valuation factors, with below-average price/earnings and price/book value ratios and above-average current yields. Barrow Hanley has advised the fund since its inception in 1996.
Donald Smith & Co. Founded in 1983, Donald Smith & Co. is a deep-value-oriented firm that manages large-, mid-, and small-capitalization value portfolios. Donald Smith & Co. employs a strictly bottom-up approach, focusing on companies in the bottom decile of price-to-tangible-book value in the benchmark. The advisor uses fundamental analysis to invest in those companies that it considers to be inexpensive relative to their estimate of normalized earnings power and to have solid balance sheets and asset quality. Donald Smith & Co. has managed a portion of the fund since 2005.
Pzena. Founded in 1995, Pzena is a global investment management firm that employs a deep value investment approach. Pzena uses in-depth fundamental research to identify companies that are temporarily underperforming their long-term earnings power. Companies are purchased when Pzena judges that: (1) the company’s problems are temporary; (2) management has a viable strategy to generate recovery; and (3) there is meaningful downside protection in case the earnings recovery does not materialize. Pzena has managed a portion of the fund since 2014.
The board concluded that each advisor’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.
Investment performance
The board considered the short- and long-term performance of each advisor’s subportfolio, 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 arrangements should continue.
Cost
The board concluded that the fund’s expense ratio was well below the average expense ratio charged by funds in its peer group and that the fund’s advisory fee rate was also well below the peer-group average.
The board did not consider the profitability of Barrow Hanley, Donald Smith & Co., or Pzena in determining whether to approve the advisory fees, because the firms are independent of Vanguard and the advisory fees are 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 advisory fee schedules for Barrow Hanley, Donald Smith & Co., and Pzena. The breakpoints reduce the effective rate of the fees as the fund’s assets managed by each advisor increase.
The board will consider whether to renew the advisory arrangements again after a one-year period.
| |
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447
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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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. |
| All rights reserved. |
| Vanguard Marketing Corporation, Distributor. |
|
|
| Q9342 062019 |
Semiannual Report | April 30, 2019
Vanguard Mid-Cap Growth Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents |
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 16 |
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 April 30, 2019
| Beginning | Ending | Expenses |
| Account Value | Account Value | Paid During |
Mid-Cap Growth Fund | 10/31/2018 | 4/30/2019 | Period |
Based on Actual Fund Return | $1,000.00 | $1,148.24 | $1.92 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.01 | 1.81 |
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 0.36%. 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 (181/365).
Mid-Cap Growth Fund
Sector Diversification
As of April 30, 2019
Communication Services |
| 3.3 | % |
Consumer Discretionary |
| 16.8 |
|
Consumer Staples |
| 1.3 |
|
Energy |
| 1.8 |
|
Financials |
| 7.1 |
|
Health Care |
| 14.2 |
|
Industrials |
| 13.7 |
|
Information Technology |
| 36.3 |
|
Materials |
| 4.6 |
|
Real Estate |
| 0.8 |
|
Utilities |
| 0.1 |
|
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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 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.
Mid-Cap Growth Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
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| Market |
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| Value· |
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| Shares |
| ($000 | ) |
Common Stocks (95.0%)1 |
|
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| |
Communication Services (2.9%) |
|
|
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| |
* | Live Nation Entertainment Inc. |
| 622,320 |
| 40,663 |
|
* | IAC/InterActiveCorp |
| 155,670 |
| 35,001 |
|
* | Take-Two Interactive Software Inc. |
| 308,595 |
| 29,881 |
|
* | Yelp Inc. Class A |
| 435,650 |
| 17,452 |
|
* | Electronic Arts Inc. |
| 135,892 |
| 12,862 |
|
|
|
|
|
| 135,859 |
|
Consumer Discretionary (16.2%) |
|
|
|
|
| |
* | O’Reilly Automotive Inc. |
| 196,073 |
| 74,227 |
|
| Domino’s Pizza Inc. |
| 221,878 |
| 60,036 |
|
* | Burlington Stores Inc. |
| 346,024 |
| 58,447 |
|
* | Ulta Beauty Inc. |
| 160,061 |
| 55,858 |
|
| Dollar General Corp. |
| 401,345 |
| 50,605 |
|
* | Eldorado Resorts Inc. |
| 881,341 |
| 43,512 |
|
| Vail Resorts Inc. |
| 186,681 |
| 42,722 |
|
| Hasbro Inc. |
| 349,250 |
| 35,575 |
|
| Yum! Brands Inc. |
| 280,676 |
| 29,300 |
|
| Hilton Worldwide Holdings Inc. |
| 322,980 |
| 28,096 |
|
* | Bright Horizons Family Solutions Inc. |
| 200,996 |
| 25,758 |
|
* | Under Armour Inc. Class C |
| 1,227,300 |
| 25,430 |
|
^ | Ferrari NV |
| 171,060 |
| 23,269 |
|
| Ross Stores Inc. |
| 237,301 |
| 23,175 |
|
* | Capri Holdings Ltd. |
| 498,055 |
| 21,954 |
|
| PVH Corp. |
| 168,060 |
| 21,678 |
|
* | Grand Canyon Education Inc. |
| 184,050 |
| 21,329 |
|
| Tractor Supply Co. |
| 200,310 |
| 20,732 |
|
* | LKQ Corp. |
| 573,477 |
| 17,262 |
|
* | Floor & Decor Holdings Inc. Class A |
| 356,370 |
| 17,113 |
|
* | Under Armour Inc. Class A |
| 663,313 |
| 15,316 |
|
| Advance Auto Parts Inc. |
| 87,949 |
| 14,628 |
|
* | Carvana Co. Class A |
| 166,271 |
| 11,898 |
|
| Aramark |
| 346,782 |
| 10,778 |
|
| Expedia Group Inc. |
| 70,468 |
| 9,149 |
|
* | Wayfair Inc. |
| 19,685 |
| 3,192 |
|
|
|
|
|
| 761,039 |
|
Consumer Staples (1.1%) |
|
|
|
|
| |
| Keurig Dr Pepper Inc. |
| 1,108,830 |
| 32,234 |
|
* | Post Holdings Inc. |
| 160,030 |
| 18,048 |
|
|
|
|
|
| 50,282 |
|
Energy (1.6%) |
|
|
|
|
| |
| Concho Resources Inc. |
| 324,242 |
| 37,411 |
|
| Noble Energy Inc. |
| 812,024 |
| 21,973 |
|
| Diamondback Energy Inc. |
| 168,751 |
| 17,954 |
|
|
|
|
|
| 77,338 |
|
Financials (6.5%) |
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| Kemper Corp. |
| 465,700 |
| 41,857 |
|
| Aon plc |
| 227,497 |
| 40,981 |
|
*,^ | LendingTree Inc. |
| 78,260 |
| 30,116 |
|
| LPL Financial Holdings Inc. |
| 401,420 |
| 29,741 |
|
| Raymond James Financial Inc. |
| 286,640 |
| 26,248 |
|
| Nasdaq Inc. |
| 257,844 |
| 23,773 |
|
| Webster Financial Corp. |
| 437,359 |
| 23,237 |
|
| Progressive Corp. |
| 284,950 |
| 22,269 |
|
| Evercore Inc. Class A |
| 224,901 |
| 21,912 |
|
| Moody’s Corp. |
| 105,344 |
| 20,713 |
|
* | SVB Financial Group |
| 50,770 |
| 12,780 |
|
* | Texas Capital Bancshares Inc. |
| 117,337 |
| 7,595 |
|
| First Republic Bank |
| 56,141 |
| 5,930 |
|
|
|
|
|
| 307,152 |
|
Health Care (13.5%) |
|
|
|
|
| |
| Cooper Cos. Inc. |
| 228,410 |
| 66,221 |
|
* | Exact Sciences Corp. |
| 623,755 |
| 61,558 |
|
* | Align Technology Inc. |
| 126,503 |
| 41,073 |
|
* | WellCare Health Plans Inc. |
| 142,220 |
| 36,743 |
|
* | Sage Therapeutics Inc. |
| 213,034 |
| 35,839 |
|
* | ABIOMED Inc. |
| 99,976 |
| 27,734 |
|
* | Edwards Lifesciences Corp. |
| 154,025 |
| 27,119 |
|
* | Bluebird Bio Inc. |
| 186,520 |
| 26,454 |
|
* | DexCom Inc. |
| 203,550 |
| 24,644 |
|
* | Intuitive Surgical Inc. |
| 45,047 |
| 23,002 |
|
Mid-Cap Growth Fund
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| Market |
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| Value· |
|
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| Shares |
| ($000 | ) |
| Teleflex Inc. |
| 79,867 |
| 22,856 |
|
| STERIS plc |
| 167,740 |
| 21,971 |
|
* | BioMarin Pharmaceutical Inc. |
| 227,302 |
| 19,441 |
|
* | Waters Corp. |
| 89,308 |
| 19,071 |
|
* | BeiGene Ltd. ADR |
| 149,640 |
| 18,590 |
|
* | Seattle Genetics Inc. |
| 252,719 |
| 17,129 |
|
* | PRA Health Sciences Inc. |
| 171,588 |
| 16,613 |
|
* | Merit Medical Systems Inc. |
| 294,501 |
| 16,545 |
|
* | Incyte Corp. |
| 211,104 |
| 16,213 |
|
* | QIAGEN NV |
| 345,236 |
| 13,450 |
|
* | IDEXX Laboratories Inc. |
| 52,343 |
| 12,144 |
|
* | Neurocrine Biosciences Inc. |
| 167,680 |
| 12,113 |
|
* | Insulet Corp. |
| 128,783 |
| 11,107 |
|
* | IQVIA Holdings Inc. |
| 76,480 |
| 10,623 |
|
* | Exelixis Inc. |
| 459,905 |
| 9,042 |
|
* | Elanco Animal Health Inc. |
| 269,499 |
| 8,489 |
|
* | Illumina Inc. |
| 19,345 |
| 6,036 |
|
* | Penumbra Inc. |
| 38,079 |
| 5,122 |
|
* | Centene Corp. |
| 84,294 |
| 4,346 |
|
* | Nektar Therapeutics Class A |
| 112,355 |
| 3,598 |
|
|
|
|
|
| 634,886 |
|
Industrials (13.9%) |
|
|
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| |
| Rockwell Automation Inc. |
| 268,719 |
| 48,560 |
|
| Roper Technologies Inc. |
| 130,316 |
| 46,875 |
|
| Waste Connections Inc. |
| 499,388 |
| 46,328 |
|
* | Clean Harbors Inc. |
| 608,100 |
| 46,216 |
|
| Hexcel Corp. |
| 571,317 |
| 40,398 |
|
| Cintas Corp. |
| 176,095 |
| 38,237 |
|
| TransUnion |
| 521,419 |
| 36,317 |
|
* | Teledyne Technologies Inc. |
| 140,520 |
| 34,921 |
|
| Ingersoll-Rand plc |
| 281,170 |
| 34,474 |
|
| KBR Inc. |
| 1,464,842 |
| 32,549 |
|
| Parker-Hannifin Corp. |
| 169,030 |
| 30,608 |
|
| HEICO Corp. Class A |
| 337,480 |
| 30,181 |
|
| Verisk Analytics Inc. Class A |
| 170,340 |
| 24,042 |
|
| Knight-Swift Transportation Holdings Inc. |
| 653,893 |
| 21,807 |
|
| BWX Technologies Inc. |
| 398,243 |
| 20,350 |
|
* | JetBlue Airways Corp. |
| 1,022,919 |
| 18,975 |
|
| AMETEK Inc. |
| 211,170 |
| 18,619 |
|
* | HD Supply Holdings Inc. |
| 391,305 |
| 17,879 |
|
* | Spirit Airlines Inc. |
| 317,430 |
| 17,262 |
|
* | Beacon Roofing Supply Inc. |
| 363,337 |
| 13,683 |
|
* | Stericycle Inc. |
| 228,931 |
| 13,367 |
|
* | IHS Markit Ltd. |
| 194,464 |
| 11,135 |
|
| AO Smith Corp. |
| 197,517 |
| 10,383 |
|
|
|
|
|
| 653,166 |
|
Information Technology (34.2%) |
|
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* | ServiceNow Inc. |
| 399,607 |
| 108,497 |
|
| Global Payments Inc. |
| 720,646 |
| 105,265 |
|
* | Euronet Worldwide Inc. |
| 533,221 |
| 79,925 |
|
| Marvell Technology Group Ltd. |
| 3,090,182 |
| 77,316 |
|
| SS&C Technologies Holdings Inc. |
| 1,101,157 |
| 74,504 |
|
* | WEX Inc. |
| 300,416 |
| 63,177 |
|
| Lam Research Corp. |
| 301,803 |
| 62,603 |
|
* | Twilio Inc. Class A |
| 387,040 |
| 53,079 |
|
| Total System Services Inc. |
| 495,380 |
| 50,648 |
|
* | RingCentral Inc. Class A |
| 433,940 |
| 50,498 |
|
^ | Microchip Technology Inc. |
| 467,403 |
| 46,689 |
|
* | Black Knight Inc. |
| 810,038 |
| 45,702 |
|
* | Zendesk Inc. |
| 499,950 |
| 43,886 |
|
* | Wix.com Ltd. |
| 318,340 |
| 42,708 |
|
| Amphenol Corp. Class A |
| 419,295 |
| 41,745 |
|
* | DocuSign Inc. Class A |
| 696,620 |
| 39,477 |
|
* | Proofpoint Inc. |
| 298,260 |
| 37,408 |
|
| Monolithic Power Systems Inc. |
| 238,018 |
| 37,062 |
|
* | Autodesk Inc. |
| 202,071 |
| 36,011 |
|
* | GoDaddy Inc. Class A |
| 440,959 |
| 35,938 |
|
* | Workday Inc. Class A |
| 168,075 |
| 34,561 |
|
| Xilinx Inc. |
| 286,781 |
| 34,454 |
|
* | Fair Isaac Corp. |
| 121,660 |
| 34,034 |
|
* | Dropbox Inc. Class A |
| 1,383,952 |
| 33,741 |
|
* | Okta Inc. |
| 277,790 |
| 28,898 |
|
* | Nutanix Inc. |
| 586,222 |
| 25,319 |
|
* | 2U Inc. |
| 390,524 |
| 23,627 |
|
| DXC Technology Co. |
| 353,700 |
| 23,252 |
|
* | Advanced Micro Devices Inc. |
| 815,583 |
| 22,535 |
|
* | Worldpay Inc. Class A |
| 185,963 |
| 21,797 |
|
* | Square Inc. |
| 290,260 |
| 21,137 |
|
* | InterXion Holding NV |
| 304,626 |
| 21,077 |
|
* | Splunk Inc. |
| 143,918 |
| 19,866 |
|
* | Trimble Inc. |
| 474,830 |
| 19,383 |
|
* | Guidewire Software Inc. |
| 158,775 |
| 16,910 |
|
* | Tableau Software Inc. Class A |
| 138,751 |
| 16,901 |
|
* | Gartner Inc. |
| 90,766 |
| 14,429 |
|
* | Palo Alto Networks Inc. |
| 56,666 |
| 14,100 |
|
* | Semtech Corp. |
| 248,271 |
| 13,374 |
|
* | Arista Networks Inc. |
| 41,449 |
| 12,944 |
|
| Universal Display Corp. |
| 51,365 |
| 8,198 |
|
| CDW Corp. |
| 76,609 |
| 8,090 |
|
* | Flex Ltd. |
| 583,640 |
| 6,443 |
|
| KLA-Tencor Corp. |
| 37,347 |
| 4,761 |
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|
|
|
| 1,611,969 |
|
Mid-Cap Growth Fund
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| Market |
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| Value· |
|
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| Shares |
| ($000 | ) |
Materials (4.4%) |
|
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* | Allegheny Technologies Inc. |
| 1,688,940 |
| 42,088 |
|
| Ball Corp. |
| 655,409 |
| 39,285 |
|
| FMC Corp. |
| 476,515 |
| 37,673 |
|
* | Berry Global Group Inc. |
| 592,550 |
| 34,842 |
|
| Sherwin-Williams Co. |
| 67,620 |
| 30,756 |
|
| Vulcan Materials Co. |
| 189,996 |
| 23,961 |
|
|
|
|
|
| 208,605 |
|
Real Estate (0.7%) |
|
|
|
|
| |
* | SBA Communications Corp. Class A |
| 173,412 |
| 35,329 |
|
Total Common Stocks |
|
|
| 4,475,625 |
| |
Temporary Cash Investments (5.8%)1 |
|
|
|
|
| |
Money Market Fund (5.7%) |
|
|
|
|
| |
2,3 | Vanguard Market Liquidity Fund, 2.545% |
| 2,665,605 |
| 265,587 |
|
|
|
|
|
|
|
|
|
|
| Face |
|
|
|
|
|
| Amount |
|
|
|
|
|
| ($000 | ) |
|
|
U.S. Government and Agency Obligations (0.1%) |
|
|
|
|
| |
4 | United States Treasury Bill, 2.479%, 5/9/19 |
| 2,000 |
| 1,999 |
|
4 | United States Treasury Bill, 2.411%, 5/23/19 |
| 3,000 |
| 2,996 |
|
4 | United States Treasury Bill, 2.396%, 7/11/19 |
| 500 |
| 497 |
|
|
|
|
|
| 5,492 |
|
Total Temporary Cash Investments |
|
|
| 271,079 |
| |
Total Investments (100.8%) |
|
|
| 4,746,704 |
| |
Other Assets and Liabilities (-0.8%) |
|
|
|
|
| |
Other Assets4 |
|
|
| 27,705 |
| |
Liabilities3 |
|
|
| (64,244 | ) | |
|
|
|
| (36,539 | ) | |
Net Assets (100%) |
|
|
|
|
| |
Applicable to 166,812,220 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 4,710,165 |
| |
Net Asset Value Per Share |
|
|
| $28.24 |
|
|
| Amount | ) |
Statement of Assets and Liabilities |
|
|
|
Assets |
|
|
|
Investments in Securities, at Value |
|
|
|
Unaffiliated Issuers |
| 4,481,117 |
|
Affiliated Issuers |
| 265,587 |
|
Total Investments in Securities |
| 4,746,704 |
|
Investment in Vanguard |
| 222 |
|
Receivables for Investment Securities Sold |
| 19,933 |
|
Receivables for Accrued Income |
| 1,082 |
|
Receivables for Capital Shares Issued |
| 5,264 |
|
Variation Margin Receivable— Futures Contracts |
| 283 |
|
Other Assets |
| 921 |
|
Total Assets |
| 4,774,409 |
|
Liabilities |
|
|
|
Payables for Investment Securities Purchased |
| 29,846 |
|
Collateral for Securities on Loan |
| 19,154 |
|
Payables to Investment Advisor |
| 1,927 |
|
Payables for Capital Shares Redeemed |
| 9,368 |
|
Payables to Vanguard |
| 3,949 |
|
Total Liabilities |
| 64,244 |
|
Net Assets |
| 4,710,165 |
|
At April 30, 2019, net assets consisted of:
|
| Amount | ) |
Paid-in Capital |
| 3,417,974 |
|
Total Distributable Earnings (Loss) |
| 1,292,191 |
|
Net Assets |
| 4,710,165 |
|
· | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $18,996,000. |
1 | The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 98.2% and 2.6%, respectively, of net assets. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Includes $19,154,000 of collateral received for securities on loan. |
4 | Securities with a value of $5,492,000 and cash of $922,000 have been segregated as initial margin for open futures contracts. ADR-American Depositary Receipt. |
Mid-Cap Growth Fund
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts | |||||||||
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| ($000 | ) |
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| Value and |
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| Number of |
|
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| Unrealized |
|
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|
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| Long (Short | ) | Notional |
| Appreciation |
|
|
| Expiration |
| Contracts |
| Amount |
| (Depreciation | ) |
Long Futures Contracts |
|
|
|
|
|
|
|
|
|
E-mini S&P 500 Index |
| June 2019 |
| 1,009 |
| 148,752 |
| 5,961 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
Mid-Cap Growth Fund
Statement of Operations
|
| Six Months Ended |
|
|
| ($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Dividends |
| 12,196 |
|
Interest—Unaffiliated Issuers |
| 91 |
|
Interest—Affiliated Issuers |
| 1,894 |
|
Securities Lending—Net |
| 120 |
|
Total Income |
| 14,301 |
|
Expenses |
|
|
|
Investment Advisory Fees—Note B |
|
|
|
Basic Fee |
| 3,844 |
|
Performance Adjustment |
| (467 | ) |
The Vanguard Group—Note C |
|
|
|
Management and Administrative |
| 3,790 |
|
Marketing and Distribution |
| 247 |
|
Custodian Fees |
| 99 |
|
Shareholders’ Reports |
| 35 |
|
Trustees’ Fees and Expenses |
| 2 |
|
Total Expenses |
| 7,550 |
|
Expenses Paid Indirectly |
| (62 | ) |
Net Expenses |
| 7,488 |
|
Net Investment Income |
| 6,813 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold—Unaffiliated Issuers |
| 406,480 |
|
Investment Securities Sold—Affiliated Issuers |
| 3,415 |
|
Futures Contracts |
| 8,776 |
|
Realized Net Gain (Loss) |
| 418,671 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities—Unaffiliated Issuers |
| 162,938 |
|
Investment Securities—Affiliated Issuers |
| (4,152 | ) |
Futures Contracts |
| 14,896 |
|
Change in Unrealized Appreciation (Depreciation) |
| 173,682 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 599,166 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
Mid-Cap Growth Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
| Year Ended |
|
|
| ($000 | ) | ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
|
Operations |
|
|
|
|
|
Net Investment Income |
| 6,813 |
| 17,653 |
|
Realized Net Gain (Loss) |
| 418,671 |
| 556,091 |
|
Change in Unrealized Appreciation (Depreciation) |
| 173,682 |
| (175,861 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 599,166 |
| 397,883 |
|
Distributions |
|
|
|
|
|
Net Investment Income |
| (14,634 | ) | (14,941 | ) |
Realized Capital Gain1 |
| (465,496 | ) | (130,422 | ) |
Total Distributions |
| (480,130 | ) | (145,363 | ) |
Capital Share Transactions |
|
|
|
|
|
Issued |
| 482,090 |
| 898,740 |
|
Issued in Lieu of Cash Distributions |
| 461,067 |
| 140,921 |
|
Redeemed |
| (512,836 | ) | (1,371,055 | ) |
Net Increase (Decrease) from Capital Share Transactions |
| 430,321 |
| (331,394 | ) |
Total Increase (Decrease) |
| 549,357 |
| (78,874 | ) |
Net Assets |
|
|
|
|
|
Beginning of Period |
| 4,160,808 |
| 4,239,682 |
|
End of Period |
| 4,710,165 |
| 4,160,808 |
|
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $51,435,000 and $0, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Mid-Cap Growth Fund
Financial Highlights
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding |
| April 30, |
| Year Ended October 31, |
| ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $28.08 |
| $26.51 |
| $21.75 |
| $24.88 |
| $26.40 |
| $25.72 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .042 | 1 | .114 | 1 | .093 | 1 | .147 | 2 | .064 | 3 | .045 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 3.369 |
| 2.379 |
| 4.817 |
| (1.437 | ) | 1.625 |
| 3.134 |
|
Total from Investment Operations |
| 3.411 |
| 2.493 |
| 4.910 |
| (1.290 | ) | 1.689 |
| 3.179 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.099 | ) | (.095 | ) | (.150 | ) | (.070 | ) | (.038 | ) | (.007 | ) |
Distributions from Realized Capital Gains |
| (3.152 | ) | (.828 | ) | — |
| (1.770 | ) | (3.171 | ) | (2.492 | ) |
Total Distributions |
| (3.251 | ) | (.923 | ) | (.150 | ) | (1.840 | ) | (3.209 | ) | (2.499 | ) |
Net Asset Value, End of Period |
| $28.24 |
| $28.08 |
| $26.51 |
| $21.75 |
| $24.88 |
| $26.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return4 |
| 14.82% |
| 9.61% |
| 22.69% |
| -5.49% |
| 6.68% |
| 13.42% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $4,710 |
| $4,161 |
| $4,240 |
| $3,980 |
| $4,317 |
| $3,319 |
|
Ratio of Total Expenses to Average Net Assets5 |
| 0.36% |
| 0.36% |
| 0.36% |
| 0.36% |
| 0.43% |
| 0.46% |
|
Ratio of Net Investment Income to Average Net Assets |
| 0.33% |
| 0.40% |
| 0.39% |
| 0.64%2 |
| 0.25%3 |
| 0.16% |
|
Portfolio Turnover Rate |
| 148% |
| 75% |
| 118% |
| 91% |
| 93% |
| 82% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $.018 and 0.08%, respectively, resulting from a special dividend from TransDigm Group in October 2016. |
3 | Net investment income per share and the ratio of net investment income to average net assets include $.006 and 0.03%, respectively, resulting from a special dividend from Lazard Ltd. in February 2015. |
4 | 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. |
5 | Includes performance-based investment advisory fee increases (decreases) of (0.02%), (0.04%), (0.05%), (0.04%), (0.01%), and (0.02%). |
See accompanying Notes, which are an integral part of the Financial Statements.
Mid-Cap Growth Fund
Notes to Financial Statements
Vanguard Mid-Cap Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund.
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 materially 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 board of trustees to represent fair value. 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 objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. 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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. 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 futures gains (losses).
During the six months ended April 30, 2019, the fund’s average investments in long and short futures contracts represented 2% and 0% of net assets, respectively, based on the average of the 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 all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015-2018), and for the period ended April 30, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
Mid-Cap Growth Fund
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis 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. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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.
Mid-Cap Growth Fund
B. The investment advisory firms Victory Capital Management Inc., through its RS Investments franchise, and beginning December 2018, Frontier Capital Management Co., LLC, and Wellington Management Company LLP, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Victory Capital Management Inc. is subject to quarterly adjustments based on performance relative to the Russell Midcap Growth Index since January 31, 2017. In accordance with the advisory contracts entered into with Frontier Capital Management Co., LLC, and Wellington Management Company LLP, beginning February 1, 2020, the investment advisory fees will be subject to quarterly adjustments based on performance relative to the Russell Midcap Growth Index since January 31, 2019. Until December 2018, a portion of the fund was managed by William Blair Investment Management, LLC. The basic fee paid to William Blair Investment Management, LLC, was subject to quarterly adjustments based on performance relative to the Russell Midcap Growth Index for the preceding five years.
Vanguard manages the cash reserves of the fund as described below.
For the six months ended April 30, 2019, the aggregate investment advisory fee represented an effective annual basic rate of 0.18% of the fund’s average net assets, before a decrease of $467,000 (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, distribution, and cash management 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $222,000, representing 0.00% of the fund’s net assets and 0.09% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D. The fund has asked its investment advisors 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 six months ended April 30, 2019, these arrangements reduced the fund’s expenses by $62,000 (an annual rate of 0.00% 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.
Mid-Cap Growth Fund
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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
Investments |
| Level 1 | ) | Level 2 | ) | Level 3 | ) |
Common Stocks |
| 4,475,625 |
| — |
| — |
|
Temporary Cash Investments |
| 265,587 |
| 5,492 |
| — |
|
Futures Contracts—Assets1 |
| 283 |
| — |
| — |
|
Total |
| 4,741,495 |
| 5,492 |
| — |
|
1 Represents variation margin on the last day of the reporting period.
F. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount |
|
|
| ($000 | ) |
Tax Cost |
| 3,887,881 |
|
Gross Unrealized Appreciation |
| 921,594 |
|
Gross Unrealized Depreciation |
| (56,810 | ) |
Net Unrealized Appreciation (Depreciation) |
| 864,784 |
|
G. During the six months ended April 30, 2019, the fund purchased $3,033,047,000 of investment securities and sold $3,122,528,000 of investment securities, other than temporary cash investments.
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 six months ended April 30, 2019, such purchases and sales were $1,393,770,000 and $271,072,000, respectively; these amounts are included in the purchases and sales of investment securities noted above.
Mid-Cap Growth Fund
H. Capital shares issued and redeemed were:
|
| Six Months Ended |
| Year Ended |
|
|
| April 30, 2019 |
| October 31, 2018 |
|
|
| Shares |
| Shares |
|
|
| (000 | ) | (000 | ) |
Issued |
| 18,553 |
| 31,360 |
|
Issued in Lieu of Cash Distributions |
| 20,099 |
| 5,324 |
|
Redeemed |
| (20,006 | ) | (48,445 | ) |
Net Increase (Decrease) in Shares Outstanding |
| 18,646 |
| (11,761 | ) |
I. Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows:
|
|
|
| Current Period Transactions |
|
|
| ||||||||||
|
| Oct. 31, |
|
|
| Proceeds |
| Realized |
|
|
|
|
|
|
| April 30, |
|
|
| 2018 |
|
|
| from |
| Net |
| Change in |
|
|
| Capital Gain |
| 2019 |
|
|
| Market |
| Purchases |
| Securities |
| Gain |
| Unrealized |
|
|
| Distributions |
| Market |
|
|
| Value |
| at Cost |
| Sold |
| (Loss | ) | App. (Dep. | ) | Income |
| Received |
| Value |
|
|
| ($000 | ) | ($000 | ) | ($000 | ) | ($000 | ) | ($000 | ) | ($000 | ) | ($000 | ) | ($000 | ) |
Vanguard Market Liquidity Fund |
| 158,747 |
| NA1 |
| NA1 |
| 3 |
| — |
| 1,894 |
| — |
| 265,587 |
|
Vanguard Mid-Cap Growth ETF |
| 12,898 |
| — |
| 12,158 |
| 3,412 |
| (4,152 | ) | — |
| — |
| — |
|
Total |
| 171,645 |
| — |
| 12,158 |
| 3,415 |
| (4,152 | ) | 1,894 |
| — |
| 265,587 |
|
1 Not applicable—purchases and sales are for temporary cash investment purposes.
J. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangement
The board of trustees of Vanguard Mid-Cap Growth Fund has renewed the fund’s investment advisory arrangement with Victory Capital Management Inc. (Victory Capital). Effective December 2018, the board also approved a restructuring of the fund’s investment advisory arrangement whereby Frontier Capital Management Co., LLC (Frontier Capital), and Wellington Management Company LLP (Wellington Management) have been added as advisors and William Blair Investment Management, LLC, has been removed as an advisor to the fund. The board determined that the foregoing actions were in the best interests of the fund and its shareholders.
The board based its decisions upon an evaluation of each 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 advisors 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 considered the quality of the investment management services to be provided to the fund by Frontier Capital and Wellington Management, reviewed the quality of the investment management services provided by Victory Capital since 2016, and took into account the organizational depth and stability of each advisor. The board considered the following:
Frontier Capital. Frontier Capital, a Boston-based investment management firm founded in 1980, is an affiliate of Affiliated Managers Group. Frontier Capital employs a fundamental, bottom-up, and research-intensive investment approach to select mid-capitalization growth stocks. Frontier Capital seeks companies with above-average mid-cap growth prospects and competitive advantages that will allow them to earn superior rates of return on capital over a business cycle. The approach attempts to balance growth prospects with reasonable valuation and is long-term in nature; investment time frames are typically three to five years. Frontier Capital has managed a portion of the fund since December 2018.
Victory Capital. Victory Capital, a wholly owned subsidiary of Victory Capital Holdings, Inc., is a multi-boutique asset manager that comprises multiple investment teams, referred to as investment franchises, each of which uses an independent approach to investing. RS Investments, founded in 1986, is the franchise responsible for the day-to-day management of a portion of the Mid-Cap Growth Fund. RS Investments utilizes fundamental research to identify companies with sustainable
growth trajectories. Risk management is integrated into the team’s process to mitigate the negative impact of any single position. Victory Capital, through its RS Investments franchise, has managed a portion of the fund since 2016.
Wellington Management. Wellington Management, founded in 1928, is among the nation’s oldest and most respected institutional managers. Wellington Management uses traditional methods of stock selection—fundamental research and analysis—to identify companies that it believes have above-average growth prospects. Wellington Management believes there is a short-term bias in equity markets that rewards near-term cyclical growth and creates opportunity for long-term growth. The team focuses on sustainable earnings power and develops bottom-up valuations based on return on investment capital forecasts, price-to-sales, and quantitative risk factors. Wellington Management seeks to control risk by emphasizing larger positions in established growth stocks and holding smaller positions in emerging names. Wellington Management has managed a portion of the fund since December 2018.
The board concluded that each advisor’s experience, stability, depth, and performance, among other factors, warranted approval or continuation, as appropriate, of the advisory arrangements.
Investment performance
The board considered the performance of Victory Capital’s subportfolio since its inception in 2016, 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. The board also concluded that Frontier Capital and Wellington Management, in their management of other Vanguard funds, have track records of consistent performance and disciplined investment processes.
Cost
The board concluded that the fund’s expense ratio was well below the average expense ratio charged by funds in its peer group and that Victory Capital’s advisory fee rate was also well below the peer-group average. The board also concluded that the advisory fee rates to be paid to Frontier Capital and Wellington Management are well below the fund’s peer-group average.
The board did not consider the profitability of Frontier Capital, Victory Capital, or Wellington Management in determining whether to approve the advisory fee, because the firms are independent of Vanguard and the advisory fees are 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 advisory fee schedules for Frontier Capital, Victory Capital, and Wellington Management. The breakpoints reduce the effective rate of the fees as the fund’s assets managed by each advisor increase.
The board will consider whether to renew the advisory arrangements again after a one-year period.
| |
|
|
|
|
| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > 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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.
Q3012 062019 |
Semiannual Report | April 30, 2019
Vanguard International Explorer™ Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents |
|
|
|
About Your Fund’s Expenses | 1 |
|
|
Financial Statements | 4 |
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 April 30, 2019
International Explorer Fund | Beginning | Ending | Expenses |
Based on Actual Fund Return | $1,000.00 | $1,055.82 | $1.94 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.91 | 1.91 |
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 0.38%. 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 (181/365).
International Explorer Fund
Sector Diversification
As of April 30, 2019
Communication Services |
| 4.8 | % |
Consumer Discretionary |
| 18.6 |
|
Consumer Staples |
| 3.5 |
|
Energy |
| 1.0 |
|
Financials |
| 9.6 |
|
Health Care |
| 8.6 |
|
Industrials |
| 29.4 |
|
Information Technology |
| 10.7 |
|
Materials |
| 8.6 |
|
Real Estate |
| 3.9 |
|
Utilities |
| 1.3 |
|
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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 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.
International Explorer Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
|
| Shares |
| Market | ) |
Common Stocks (96.3%)1 |
|
|
|
|
| ||
Australia (4.5%) |
|
|
|
|
| ||
| Steadfast Group Ltd. |
| 6,877,000 |
| 16,533 |
| |
| Link Administration Holdings Ltd. |
| 2,891,419 |
| 15,509 |
| |
| Iluka Resources Ltd. |
| 2,301,130 |
| 14,042 |
| |
| IPH Ltd. |
| 2,230,600 |
| 11,222 |
| |
| NRW Holdings Ltd. |
| 4,640,387 |
| 9,617 |
| |
^ | Bingo Industries Ltd. |
| 7,983,737 |
| 9,495 |
| |
| oOh!media Ltd. |
| 3,522,064 |
| 9,374 |
| |
| Challenger Ltd. |
| 1,568,500 |
| 9,080 |
| |
| Ansell Ltd. |
| 443,360 |
| 8,441 |
| |
| Monadelphous Group Ltd. |
| 605,300 |
| 8,084 |
| |
| Mirvac Group |
| 3,796,694 |
| 7,601 |
| |
| Incitec Pivot Ltd. |
| 2,870,473 |
| 6,821 |
| |
| James Hardie Industries plc |
| 445,589 |
| 6,062 |
| |
* | Nufarm Ltd. |
| 1,363,240 |
| 4,871 |
| |
^ | Domain Holdings Australia Ltd. |
| 2,458,208 |
| 4,686 |
| |
| ALS Ltd. |
| 798,388 |
| 4,476 |
| |
| Estia Health Ltd. |
| 2,109,977 |
| 4,300 |
| |
| Costa Group Holdings Ltd. |
| 1,018,543 |
| 4,077 |
| |
^ | SpeedCast International Ltd. |
| 932,200 |
| 2,550 |
| |
*,^ | Karoon Energy Ltd. |
| 1,288,531 |
| 868 |
| |
|
|
|
|
| 157,709 |
| |
Austria (1.1%) |
|
|
|
|
| ||
| Lenzing AG |
| 112,500 |
| 12,647 |
| |
| ANDRITZ AG |
| 161,653 |
| 7,720 |
| |
| Wienerberger AG |
| 290,883 |
| 6,685 |
| |
| Schoeller-Bleckmann Oilfield Equipment AG |
| 61,058 |
| 5,704 |
| |
^ | Porr AG |
| 167,220 |
| 4,455 |
| |
| Palfinger AG |
| 88,500 |
| 2,888 |
| |
|
|
|
|
| 40,099 |
| |
Belgium (0.6%) |
|
|
|
|
| ||
| Euronav NV |
| 862,489 |
| 8,171 |
| |
| Cie d’Entreprises CFE |
| 81,069 |
| 8,077 |
| |
* | Galapagos NV |
| 52,470 |
| 6,027 |
| |
|
|
|
|
| 22,275 |
| |
Brazil (0.3%) |
|
|
|
|
| ||
| Odontoprev SA |
| 1,114,200 |
| 4,745 |
| |
| Kroton Educacional SA |
| 1,776,800 |
| 4,418 |
| |
|
|
|
|
| 9,163 |
| |
China (1.9%) |
|
|
|
|
| ||
| Shenzhou International Group Holdings Ltd. |
| 1,298,000 |
| 17,446 |
| |
*,^ | Baozun Inc. ADR |
| 198,627 |
| 9,633 |
| |
* | New Oriental Education & Technology Group Inc. ADR |
| 99,636 |
| 9,511 |
| |
| Nexteer Automotive Group Ltd. |
| 5,660,000 |
| 8,875 |
| |
*,2 | Tongcheng-Elong Holdings Ltd. |
| 2,419,600 |
| 5,481 |
| |
| Haitian International Holdings Ltd. |
| 2,162,000 |
| 5,422 |
| |
| HUYA Inc. ADR |
| 200,600 |
| 4,792 |
| |
| Shandong Weigao Group Medical Polymer Co. Ltd. |
| 3,228,375 |
| 3,174 |
| |
| BEST Inc. ADR |
| 519,700 |
| 3,082 |
| |
|
|
|
|
| 67,416 |
| |
Denmark (0.9%) |
|
|
|
|
| ||
| Topdanmark A/S |
| 366,783 |
| 19,789 |
| |
| FLSmidth & Co. A/S |
| 125,000 |
| 6,283 |
| |
| SimCorp A/S |
| 58,000 |
| 5,694 |
| |
§,* | OW Bunker A/S |
| 1,000,000 |
| — |
| |
|
|
|
|
| 31,766 |
| |
Finland (0.4%) |
|
|
|
|
| ||
| Metso Oyj |
| 171,282 |
| 6,409 |
| |
| DNA Oyj |
| 219,331 |
| 5,225 |
| |
* | Outotec Oyj |
| 705,689 |
| 3,728 |
| |
|
|
|
|
| 15,362 |
|
International Explorer Fund
|
|
|
| Shares |
| Market | ) |
France (8.9%) |
|
|
|
|
| ||
^ | Altran Technologies SA |
| 2,655,468 |
| 34,621 |
| |
* | Ubisoft Entertainment SA |
| 325,000 |
| 31,050 |
| |
| Elis SA |
| 1,703,793 |
| 30,407 |
| |
| Rubis SCA |
| 527,858 |
| 28,953 |
| |
| SPIE SA |
| 1,375,000 |
| 26,545 |
| |
| Trigano SA |
| 250,000 |
| 23,970 |
| |
| Nexity SA |
| 502,757 |
| 23,516 |
| |
* | ID Logistics Group |
| 82,028 |
| 14,661 |
| |
*,2 | SMCP SA |
| 750,000 |
| 14,009 |
| |
2 | Maisons du Monde SA |
| 535,010 |
| 11,519 |
| |
| Orpea |
| 81,900 |
| 9,993 |
| |
* | Teleperformance |
| 47,500 |
| 9,132 |
| |
* | SOITEC |
| 88,813 |
| 8,995 |
| |
| Imerys SA |
| 168,509 |
| 8,979 |
| |
| Kaufman & Broad SA |
| 205,000 |
| 8,179 |
| |
* | Virbac SA |
| 39,873 |
| 7,103 |
| |
| Albioma SA |
| 275,000 |
| 6,471 |
| |
| Gaztransport Et Technigaz SA |
| 49,100 |
| 4,443 |
| |
* | Tikehau Capital SCA |
| 153,940 |
| 3,887 |
| |
| LISI |
| 81,200 |
| 2,718 |
| |
*,^ | Innate Pharma SA |
| 341,522 |
| 2,243 |
| |
|
|
|
|
| 311,394 |
| |
Germany (5.3%) |
|
|
|
|
| ||
2 | Befesa SA |
| 675,000 |
| 29,603 |
| |
| Grand City Properties SA |
| 775,000 |
| 18,262 |
| |
*,^ | HelloFresh SE |
| 1,487,500 |
| 15,034 |
| |
| SAF-Holland SA |
| 1,118,038 |
| 13,951 |
| |
| Stabilus SA |
| 243,900 |
| 13,610 |
| |
| Wacker Chemie AG |
| 150,000 |
| 13,186 |
| |
| Duerr AG |
| 275,000 |
| 12,437 |
| |
| S&T AG |
| 450,000 |
| 12,158 |
| |
| XING SE |
| 30,000 |
| 11,165 |
| |
| Stemmer Imaging AG |
| 291,170 |
| 9,887 |
| |
| STRATEC SE |
| 113,380 |
| 7,995 |
| |
2 | Aumann AG |
| 212,500 |
| 7,906 |
| |
| CTS Eventim AG & Co. KGaA |
| 119,800 |
| 6,153 |
| |
* | Jumia Technologies AG ADR |
| 134,391 |
| 5,775 |
| |
| Nemetschek SE |
| 24,100 |
| 4,459 |
| |
| RIB Software SE |
| 156,900 |
| 3,091 |
| |
|
|
|
|
| 184,672 |
| |
Hong Kong (1.8%) |
|
|
|
|
| ||
| Techtronic Industries Co. Ltd. |
| 2,650,000 |
| 19,177 |
| |
| ASM Pacific Technology Ltd. |
| 1,360,900 |
| 15,785 |
| |
^ | Value Partners Group Ltd. |
| 10,913,000 |
| 8,225 |
| |
| Johnson Electric Holdings Ltd. |
| 2,646,625 |
| 6,231 |
| |
| Microport Scientific Corp. |
| 6,475,000 |
| 6,102 |
| |
| Cathay Pacific Airways Ltd. |
| 3,049,635 |
| 5,136 |
| |
2 | Crystal International Group Ltd. |
| 7,970,000 |
| 3,864 |
| |
|
|
|
|
| 64,520 |
| |
India (1.3%) |
|
|
|
|
| ||
| Container Corp. Of India Ltd. |
| 1,494,093 |
| 10,591 |
| |
| Gujarat Pipavav Port Ltd. |
| 6,724,221 |
| 8,516 |
| |
| Apollo Hospitals Enterprise Ltd. |
| 486,586 |
| 8,508 |
| |
| Zee Entertainment Enterprises Ltd. |
| 1,298,290 |
| 8,077 |
| |
| Edelweiss Financial Services Ltd. |
| 2,191,200 |
| 4,686 |
| |
| Indiabulls Housing Finance Ltd. |
| 426,000 |
| 4,261 |
| |
|
|
|
|
| 44,639 |
| |
Indonesia (0.0%) |
|
|
|
|
| ||
| Tower Bersama |
|
|
|
|
| |
| Infrastructure Tbk PT |
| 2,782,300 |
| 772 |
| |
|
|
|
|
|
|
| |
Ireland (2.7%) |
|
|
|
|
| ||
| Dalata Hotel Group plc |
| 6,346,100 |
| 41,935 |
| |
| Smurfit Kappa Group plc |
| 775,000 |
| 22,726 |
| |
| Irish Continental Group plc |
| 2,448,300 |
| 13,823 |
| |
| Origin Enterprises plc |
| 1,175,000 |
| 7,254 |
| |
| Irish Residential Properties REIT plc |
| 4,000,000 |
| 7,085 |
| |
|
|
|
|
| 92,823 |
| |
Italy (8.0%) |
|
|
|
|
| ||
| Cerved Group SPA |
| 2,861,727 |
| 27,968 |
| |
| Interpump Group SPA |
| 662,945 |
| 24,930 |
| |
* | Maire Tecnimont SPA |
| 6,500,000 |
| 23,259 |
| |
| Banca Generali SPA |
| 775,565 |
| 21,914 |
| |
| Recordati SPA |
| 525,000 |
| 21,214 |
| |
*,2 | Anima Holding SPA |
| 5,200,019 |
| 20,724 |
| |
| Salvatore Ferragamo SPA |
| 669,261 |
| 15,184 |
| |
| Autogrill SPA |
| 1,556,775 |
| 15,129 |
| |
| FinecoBank Banca Fineco SPA |
| 1,133,500 |
| 14,930 |
| |
2 | doBank SPA |
| 1,000,000 |
| 14,124 |
| |
| DiaSorin SPA |
| 121,287 |
| 11,857 |
| |
| Amplifon SPA |
| 577,500 |
| 11,110 |
| |
2 | Gima TT SPA |
| 984,175 |
| 7,821 |
| |
^ | Buzzi Unicem SPA |
| 307,258 |
| 6,850 |
|
International Explorer Fund
|
|
|
| Shares |
| Market | ) |
| Tamburi Investment Partners SPA |
| 936,200 |
| 6,673 |
| |
| Brunello Cucinelli SPA |
| 181,720 |
| 6,607 |
| |
| PRADA SPA |
| 2,162,100 |
| 6,081 |
| |
| Credito Emiliano SPA |
| 1,000,000 |
| 5,713 |
| |
2 | Banca Sistema SPA |
| 2,500,000 |
| 4,707 |
| |
*,^,2 | OVS SPA |
| 2,135,384 |
| 4,456 |
| |
^ | Tod’s SPA |
| 80,210 |
| 3,945 |
| |
| Datalogic SPA |
| 94,000 |
| 2,231 |
| |
*,2 | Piovan SPA |
| 325,000 |
| 2,151 |
| |
|
|
|
|
| 279,578 |
| |
Japan (25.9%) |
|
|
|
|
| ||
| Nippon Shinyaku Co. Ltd. |
| 510,070 |
| 35,220 |
| |
| Disco Corp. |
| 180,800 |
| 31,287 |
| |
| Zenkoku Hosho Co. Ltd. |
| 731,555 |
| 25,688 |
| |
| Nabtesco Corp. |
| 813,100 |
| 24,933 |
| |
| Digital Garage Inc. |
| 650,100 |
| 18,993 |
| |
| Koito Manufacturing Co. Ltd. |
| 307,900 |
| 18,437 |
| |
| Glory Ltd. |
| 728,300 |
| 18,389 |
| |
| Horiba Ltd. |
| 303,100 |
| 18,358 |
| |
| ABC-Mart Inc. |
| 295,200 |
| 18,347 |
| |
| Sumitomo Forestry Co. Ltd. |
| 1,287,100 |
| 17,708 |
| |
| Kureha Corp. |
| 293,400 |
| 17,564 |
| |
| Nippon Densetsu Kogyo Co. Ltd. |
| 807,600 |
| 17,423 |
| |
| SCSK Corp. |
| 358,300 |
| 17,027 |
| |
| Nifco Inc. |
| 586,300 |
| 16,551 |
| |
| Aica Kogyo Co. Ltd. |
| 471,200 |
| 16,349 |
| |
| Pola Orbis Holdings Inc. |
| 493,700 |
| 15,584 |
| |
| Daifuku Co. Ltd. |
| 252,300 |
| 15,522 |
| |
| Ai Holdings Corp. |
| 940,000 |
| 15,361 |
| |
| en-japan Inc. |
| 468,100 |
| 15,244 |
| |
| Tsuruha Holdings Inc. |
| 178,600 |
| 15,221 |
| |
| Musashi Seimitsu Industry Co. Ltd. |
| 907,000 |
| 14,159 |
| |
| Open House Co. Ltd. |
| 363,400 |
| 13,351 |
| |
| DMG Mori Co. Ltd. |
| 912,000 |
| 13,151 |
| |
| Sugi Holdings Co. Ltd. |
| 257,000 |
| 12,998 |
| |
| Izumi Co. Ltd. |
| 295,800 |
| 12,919 |
| |
| Tokai Tokyo Financial Holdings Inc. |
| 3,839,700 |
| 12,760 |
| |
| Kakaku.com Inc. |
| 602,800 |
| 12,419 |
| |
| TechnoPro Holdings Inc. |
| 203,200 |
| 12,226 |
| |
| Asahi Intecc Co. Ltd. |
| 236,103 |
| 11,961 |
| |
| Pigeon Corp. |
| 272,200 |
| 11,654 |
| |
| Nishi-Nippon Financial Holdings Inc. |
| 1,397,900 |
| 11,567 |
| |
| Hitachi Transport System Ltd. |
| 395,100 |
| 10,957 |
| |
| Nitta Corp. |
| 323,200 |
| 10,647 |
| |
| Arcs Co. Ltd. |
| 501,400 |
| 10,165 |
| |
^ | Trusco Nakayama Corp. |
| 399,800 |
| 10,105 |
| |
| Toyo Tire Corp. |
| 807,900 |
| 9,451 |
| |
| Ferrotec Holdings Corp. |
| 843,700 |
| 9,438 |
| |
| Iriso Electronics Co. Ltd. |
| 180,200 |
| 9,378 |
| |
| JSP Corp. |
| 439,100 |
| 9,210 |
| |
| OBIC Business Consultants Co. Ltd. |
| 228,400 |
| 9,179 |
| |
| IHI Corp. |
| 375,524 |
| 8,965 |
| |
| Kyoritsu Maintenance Co. Ltd. |
| 168,600 |
| 8,664 |
| |
| Shinmaywa Industries Ltd. |
| 700,700 |
| 8,652 |
| |
^ | Aruhi Corp. |
| 471,900 |
| 8,428 |
| |
| Nihon M&A Center Inc. |
| 293,700 |
| 8,381 |
| |
| GMO internet Inc. |
| 524,900 |
| 8,147 |
| |
| Kyowa Exeo Corp. |
| 294,100 |
| 8,044 |
| |
| Nippon Yusen KK |
| 468,300 |
| 8,002 |
| |
| KH Neochem Co. Ltd. |
| 270,000 |
| 7,887 |
| |
| Japan Lifeline Co. Ltd. |
| 489,300 |
| 7,760 |
| |
| EPS Holdings Inc. |
| 431,300 |
| 7,733 |
| |
| Daikyonishikawa Corp. |
| 751,000 |
| 7,574 |
| |
| Ichigo Inc. |
| 2,294,230 |
| 7,410 |
| |
| JGC Corp. |
| 482,200 |
| 6,948 |
| |
| Kyudenko Corp. |
| 238,230 |
| 6,799 |
| |
| Kissei Pharmaceutical Co. Ltd. |
| 272,800 |
| 6,768 |
| |
| Persol Holdings Co. Ltd. |
| 353,300 |
| 6,660 |
| |
| NEC Networks & System Integration Corp. |
| 272,500 |
| 6,565 |
| |
^ | Harmonic Drive Systems Inc. |
| 164,400 |
| 6,545 |
| |
| Sanwa Holdings Corp. |
| 527,590 |
| 6,354 |
| |
| Tokyo Steel Manufacturing Co. Ltd. |
| 707,500 |
| 6,059 |
| |
| Hazama Ando Corp. |
| 886,000 |
| 5,958 |
| |
| Jamco Corp. |
| 295,400 |
| 5,950 |
| |
| Yokogawa Bridge Holdings Corp. |
| 363,900 |
| 5,921 |
| |
| Kumiai Chemical Industry Co. Ltd. |
| 793,000 |
| 5,823 |
| |
| Lintec Corp. |
| 264,000 |
| 5,702 |
| |
| Nihon Parkerizing Co. Ltd. |
| 433,300 |
| 5,656 |
| |
| Mirait Holdings Corp. |
| 376,200 |
| 5,534 |
| |
| Obara Group Inc. |
| 138,100 |
| 5,282 |
| |
| H2O Retailing Corp. |
| 393,900 |
| 5,018 |
| |
| Itoham Yonekyu Holdings Inc. |
| 798,900 |
| 4,997 |
| |
| TPR Co. Ltd. |
| 250,200 |
| 4,932 |
| |
| Tokyo Ohka Kogyo Co. Ltd. |
| 152,680 |
| 4,889 |
| |
| Daibiru Corp. |
| 545,300 |
| 4,836 |
| |
| Miura Co. Ltd. |
| 184,400 |
| 4,721 |
| |
| Japan Airport Terminal Co. Ltd. |
| 107,000 |
| 4,525 |
|
International Explorer Fund
|
|
|
| Shares |
| Market | ) |
| Fukushima Industries Corp. |
| 124,800 |
| 4,327 |
| |
| Kenedix Inc. |
| 903,900 |
| 4,304 |
| |
* | M&A Capital Partners Co. Ltd. |
| 98,000 |
| 4,195 |
| |
| Bank of Kyoto Ltd. |
| 96,400 |
| 4,177 |
| |
| UT Group Co. Ltd. |
| 144,300 |
| 4,162 |
| |
| San-In Godo Bank Ltd. |
| 624,800 |
| 4,140 |
| |
| Mani Inc. |
| 65,500 |
| 3,785 |
| |
| Warabeya Nichiyo Holdings Co. Ltd. |
| 225,000 |
| 3,619 |
| |
| SCREEN Holdings Co. Ltd. |
| 73,200 |
| 3,516 |
| |
| ZOZO Inc. |
| 194,300 |
| 3,451 |
| |
| Kanto Denka Kogyo Co. Ltd. |
| 459,000 |
| 3,432 |
| |
| Modec Inc. |
| 101,600 |
| 3,124 |
| |
| Eagle Industry Co. Ltd. |
| 237,600 |
| 2,723 |
| |
| Tsutsumi Jewelry Co. Ltd. |
| 131,500 |
| 2,143 |
| |
| Tokyo Kiraboshi Financial Group Inc. |
| 130,745 |
| 1,889 |
| |
|
|
|
|
| 907,977 |
| |
Malaysia (0.2%) |
|
|
|
|
| ||
| AirAsia Group Bhd. |
| 10,747,900 |
| 7,100 |
| |
|
|
|
|
|
|
| |
Mexico (0.5%) |
|
|
|
|
| ||
| Grupo Aeroportuario del Pacifico SAB de CV Class B |
| 1,021,243 |
| 10,384 |
| |
| Regional SAB de CV |
| 1,150,600 |
| 6,270 |
| |
|
|
|
|
| 16,654 |
| |
Netherlands (4.3%) |
|
|
|
|
| ||
| TKH Group NV |
| 437,500 |
| 23,539 |
| |
^ | AMG Advanced Metallurgical Group NV |
| 750,000 |
| 22,802 |
| |
* | OCI NV |
| 750,000 |
| 21,783 |
| |
*,2 | Basic-Fit NV |
| 525,000 |
| 18,635 |
| |
2 | NIBC Holding NV |
| 1,750,000 |
| 16,732 |
| |
| Van Lanschot Kempen NV |
| 625,000 |
| 16,275 |
| |
| SIF Holding NV |
| 925,000 |
| 10,939 |
| |
| IMCD NV |
| 124,256 |
| 10,047 |
| |
| Kendrion NV |
| 237,500 |
| 5,830 |
| |
*,^ | Fugro NV |
| 499,462 |
| 4,552 |
| |
|
|
|
|
| 151,134 |
| |
New Zealand (0.3%) |
|
|
|
|
| ||
| Fletcher Building Ltd. |
| 2,542,263 |
| 8,759 |
| |
| Fisher & Paykel Healthcare Corp. Ltd. |
| 175,500 |
| 1,856 |
| |
|
|
|
|
| 10,615 |
| |
Norway (1.4%) |
|
|
|
|
| ||
| Kongsberg Gruppen ASA |
| 1,462,157 |
| 21,197 |
| |
*,2 | Elkem ASA |
| 3,625,000 |
| 15,016 |
| |
* | Tomra Systems ASA |
| 250,000 |
| 7,542 |
| |
| Borregaard ASA |
| 625,000 |
| 6,345 |
| |
|
|
|
|
| 50,100 |
| |
Other (0.7%) |
|
|
|
|
| ||
3 | Vanguard FTSE All World ex-US Small-Cap ETF |
| 212,436 |
| 22,669 |
| |
|
|
|
|
|
| ||
Singapore (0.4%) |
|
|
|
|
| ||
| First Resources Ltd. |
| 5,709,600 |
| 7,681 |
| |
| Jardine Cycle & Carriage Ltd. |
| 246,900 |
| 6,452 |
| |
|
|
|
|
| 14,133 |
| |
South Africa (0.1%) |
|
|
|
|
| ||
| Reinet Investments SCA |
| 254,398 |
| 4,330 |
| |
|
|
|
|
|
|
| |
South Korea (1.5%) |
|
|
|
|
| ||
| Medy-Tox Inc. |
| 24,587 |
| 11,791 |
| |
| SK Holdings Co. Ltd. |
| 47,023 |
| 10,341 |
| |
*,^,2 | Netmarble Corp. |
| 65,445 |
| 7,152 |
| |
| Nexen Tire Corp. |
| 807,768 |
| 6,962 |
| |
| Hankook Tire Co. Ltd. |
| 150,917 |
| 5,135 |
| |
^ | Mando Corp. |
| 152,439 |
| 4,364 |
| |
| Samsung Securities Co. Ltd. |
| 136,542 |
| 4,173 |
| |
| Korea Aerospace Industries Ltd. |
| 127,782 |
| 3,828 |
| |
|
|
|
|
| 53,746 |
| |
Spain (2.1%) |
|
|
|
|
| ||
2 | Prosegur Cash SA |
| 6,767,309 |
| 14,553 |
| |
| Prosegur Cia de Seguridad SA |
| 2,639,955 |
| 13,737 |
| |
*,2 | Aedas Homes SAU |
| 500,000 |
| 12,459 |
| |
| Viscofan SA |
| 191,200 |
| 11,503 |
| |
| Melia Hotels International SA |
| 973,338 |
| 9,648 |
| |
| CIE Automotive SA |
| 328,057 |
| 9,168 |
| |
2 | Global Dominion Access SA |
| 350,074 |
| 1,872 |
| |
|
|
|
|
| 72,940 |
| |
Sweden (1.9%) |
|
|
|
|
| ||
| Nordic Entertainment Group AB Class B |
| 610,200 |
| 15,549 |
| |
^ | Intrum AB |
| 423,300 |
| 10,779 |
| |
| Modern Times Group MTG AB Class B |
| 610,200 |
| 7,884 |
| |
| Loomis AB Class B |
| 200,000 |
| 7,400 |
| |
| Concentric AB |
| 393,032 |
| 6,302 |
| |
* | Cellavision AB |
| 150,171 |
| 5,024 |
| |
| Karnov Group AB |
| 1,076,000 |
| 4,917 |
| |
2 | Alimak Group AB |
| 223,800 |
| 3,754 |
|
International Explorer Fund
|
|
|
| Shares |
| Market | ) |
| Troax Group AB |
| 94,100 |
| 3,370 |
| |
| Arjo AB |
| 625,000 |
| 2,320 |
| |
|
|
|
|
| 67,299 |
| |
Switzerland (2.8%) |
|
|
|
|
| ||
| OC Oerlikon Corp. AG |
| 2,997,971 |
| 39,181 |
| |
| Logitech International SA |
| 387,500 |
| 15,185 |
| |
| Dufry AG |
| 127,540 |
| 12,482 |
| |
| Ascom Holding AG |
| 813,800 |
| 11,104 |
| |
2 | VAT Group AG |
| 87,300 |
| 10,850 |
| |
| Comet Holding AG |
| 85,000 |
| 8,450 |
| |
|
|
|
|
| 97,252 |
| |
Taiwan (1.7%) |
|
|
|
|
| ||
| Chroma ATE Inc. |
| 4,769,000 |
| 22,847 |
| |
| Ennoconn Corp. |
| 1,221,763 |
| 10,788 |
| |
| Giant Manufacturing Co. Ltd. |
| 1,119,000 |
| 8,534 |
| |
| CTCI Corp. |
| 4,336,000 |
| 6,723 |
| |
| Gourmet Master Co. Ltd. |
| 989,217 |
| 6,311 |
| |
| Nien Made Enterprise Co. Ltd. |
| 722,000 |
| 5,665 |
| |
|
|
|
|
| 60,868 |
| |
United Arab Emirates (0.0%) |
|
|
|
|
| ||
* | Lamprell plc |
| 1,150,000 |
| 994 |
| |
|
|
|
|
|
|
| |
United Kingdom (14.5%) |
|
|
|
|
| ||
| Grainger plc |
| 5,829,154 |
| 19,170 |
| |
| Electrocomponents plc |
| 2,218,800 |
| 18,710 |
| |
| B&M European Value Retail SA |
| 3,520,365 |
| 18,149 |
| |
| Restaurant Group plc |
| 9,169,730 |
| 17,246 |
| |
| Dunelm Group plc |
| 1,350,000 |
| 15,065 |
| |
2 | Auto Trader Group plc |
| 1,933,800 |
| 14,295 |
| |
| SSP Group plc |
| 1,571,429 |
| 14,283 |
| |
| Melrose Industries plc |
| 5,296,600 |
| 14,015 |
| |
| Rhi Magnesita NV |
| 215,044 |
| 13,937 |
| |
| Elementis plc |
| 6,375,322 |
| 13,553 |
| |
| Cineworld Group plc |
| 3,250,000 |
| 13,487 |
| |
| UDG Healthcare plc |
| 1,481,000 |
| 12,714 |
| |
| Bodycote plc |
| 1,095,000 |
| 12,268 |
| |
| Genus plc |
| 387,890 |
| 12,215 |
| |
| HomeServe plc |
| 850,000 |
| 12,047 |
| |
| Dechra Pharmaceuticals plc |
| 340,000 |
| 11,817 |
| |
| Ultra Electronics Holdings plc |
| 549,887 |
| 11,438 |
| |
| Howden Joinery Group plc |
| 1,628,700 |
| 10,816 |
| |
| Halma plc |
| 450,000 |
| 10,588 |
| |
| Cranswick plc |
| 275,400 |
| 10,421 |
| |
| Coats Group plc |
| 9,000,000 |
| 10,136 |
| |
| Hikma Pharmaceuticals plc |
| 434,754 |
| 10,032 |
| |
| Hill & Smith Holdings plc |
| 578,277 |
| 9,622 |
| |
| Tyman plc |
| 2,865,227 |
| 9,520 |
| |
| Telecom Plus plc |
| 485,000 |
| 8,936 |
| |
| Abcam plc |
| 516,379 |
| 8,789 |
| |
| RPC Group plc |
| 818,600 |
| 8,437 |
| |
| Ted Baker plc |
| 390,000 |
| 8,200 |
| |
| Keller Group plc |
| 871,780 |
| 8,005 |
| |
| Rentokil Initial plc |
| 1,505,725 |
| 7,674 |
| |
| Redrow plc |
| 952,381 |
| 7,666 |
| |
| Pets at Home Group plc |
| 3,800,000 |
| 7,521 |
| |
| QinetiQ Group plc |
| 1,900,000 |
| 7,485 |
| |
| Investec plc |
| 1,100,000 |
| 6,981 |
| |
| Polypipe Group plc |
| 1,205,800 |
| 6,913 |
| |
| Volution Group plc |
| 2,983,178 |
| 6,747 |
| |
* | Cairn Homes plc |
| 4,367,609 |
| 6,282 |
| |
| Diploma plc |
| 289,899 |
| 6,063 |
| |
| Segro plc |
| 680,000 |
| 6,025 |
| |
| IG Group Holdings plc |
| 900,000 |
| 5,987 |
| |
| Renishaw plc |
| 100,500 |
| 5,935 |
| |
| Consort Medical plc |
| 479,420 |
| 5,776 |
| |
| Northgate plc |
| 1,100,000 |
| 5,271 |
| |
| Jupiter Fund Management plc |
| 1,022,200 |
| 5,016 |
| |
| LondonMetric Property plc |
| 1,900,000 |
| 5,015 |
| |
| Eco Animal Health Group plc |
| 930,912 |
| 4,979 |
| |
| Crest Nicholson Holdings plc |
| 970,000 |
| 4,876 |
| |
| DCC plc |
| 52,000 |
| 4,655 |
| |
| Hunting plc |
| 601,372 |
| 4,622 |
| |
2 | ConvaTec Group plc |
| 2,532,190 |
| 4,586 |
| |
| Superdry plc |
| 580,000 |
| 3,911 |
| |
| James Fisher & Sons plc |
| 141,368 |
| 3,644 |
| |
| Photo-Me International plc |
| 3,050,000 |
| 3,626 |
| |
| Vesuvius plc |
| 436,161 |
| 3,519 |
| |
| Fevertree Drinks plc |
| 79,216 |
| 3,257 |
| |
| Keywords Studios plc |
| 148,400 |
| 3,025 |
| |
| Clarkson plc |
| 78,400 |
| 2,656 |
| |
| Just Group plc |
| 1,900,000 |
| 1,697 |
| |
| Rotork plc |
| 241,300 |
| 984 |
| |
|
|
|
|
| 510,305 |
| |
United States (0.3%) |
|
|
|
|
| ||
2 | Samsonite International SA |
| 3,021,300 |
| 8,665 |
| |
Total Common Stocks |
|
|
| 3,378,969 |
| ||
Temporary Cash Investments (6.1%)1 |
|
|
|
|
| ||
Money Market Fund (5.5%) |
|
|
|
|
| ||
4,5 | Vanguard Market Liquidity Fund, 2.545% |
| 1,932,515 |
| 193,271 |
|
International Explorer Fund
|
|
|
| Face | ) | Market | ) |
Repurchase Agreement (0.5%) |
|
|
|
|
| ||
| Goldman Sachs & Co. |
| 19,500 |
| 19,500 |
| |
|
|
|
|
|
|
|
|
U.S. Government and Agency Obligations (0.1%) |
|
|
|
|
| ||
6 | United States Treasury Bill, |
| 2,500 |
| 2,496 |
| |
Total Temporary Cash Investments |
|
|
| 215,267 |
| ||
Total Investments (102.4%) |
|
|
| 3,594,236 |
| ||
Other Assets and Liabilities (-2.4%) |
|
|
|
|
| ||
Other Assets6,7 |
|
|
| 46,422 |
| ||
Liabilities4 |
|
|
| (132,315 | ) | ||
|
|
|
|
|
| (85,893 | ) |
|
|
|
|
|
|
|
|
Net Assets (100%) |
|
|
|
|
| ||
Applicable to 202,302,045 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 3,508,343 |
| ||
Net Asset Value Per Share |
|
|
| $17.34 |
| ||
|
|
|
|
|
| ||
|
|
|
| Amount | ) | ||
Statement of Assets and Liabilities |
|
|
|
|
| ||
Assets |
|
|
|
|
| ||
Investments in Securities, at Value |
|
|
|
|
| ||
Unaffiliated Issuers |
|
|
| 3,378,296 |
| ||
Affiliated Issuers |
|
|
| 215,940 |
| ||
Total Investments in Securities |
|
|
| 3,594,236 |
| ||
Investment in Vanguard |
|
|
| 169 |
| ||
Receivables for Investment Securities Sold |
|
|
| 14,971 |
| ||
Receivables for Accrued Income |
|
|
| 15,452 |
| ||
Receivables for Capital Shares Issued |
|
|
| 1,303 |
| ||
Variation Margin Receivable—Futures Contracts |
|
|
| 99 |
| ||
Unrealized Appreciation—Forward Currency Contracts |
|
|
| 456 |
| ||
Other Assets6,7 |
|
|
| 13,972 |
| ||
Total Assets |
|
|
| 3,640,658 |
| ||
Liabilities |
|
|
|
|
| ||
Payables for Investment Securities Purchased |
|
|
| 12,136 |
| ||
Collateral for Securities on Loan |
|
|
| 110,102 |
| ||
Payables to Investment Advisor |
|
|
| 1,755 |
| ||
Payables for Capital Shares Redeemed |
|
|
| 3,745 |
| ||
Payables to Vanguard |
|
|
| 3,379 |
| ||
Variation Margin Payable—Futures Contracts |
|
|
| 295 |
| ||
Unrealized Depreciation—Forward Currency Contracts |
|
|
| 903 |
| ||
Total Liabilities |
|
|
| 132,315 |
| ||
Net Assets |
|
|
| 3,508,343 |
|
International Explorer Fund
At April 30, 2019, net assets consisted of:
|
|
|
| Amount | ) |
Paid-in Capital |
|
|
| 3,359,778 |
|
Total Distributable Earnings (Loss) |
|
|
| 148,565 |
|
Net Assets |
|
|
| 3,508,343 |
|
· See Note A in Notes to Financial Statements.
§ Security value determined using significant unobservable inputs.
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $104,196,000.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 97.8% and 4.6%, respectively, of net assets.
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 April 30, 2019, the aggregate value of these securities was $252,532,000, representing 7.2% of net assets.
3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
4 Includes $110,102,000 of collateral received for securities on loan.
5 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
6 Securities with a value of $2,496,000 and cash of $402,000 have been segregated as initial margin for open futures contracts.
7 Cash of $390,000 has been segregated as collateral for open forward currency contracts.
ADR—American Depositary Receipt.
REIT—Real Estate Investment Trust.
International Explorer Fund
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts
|
|
|
| ($000) |
| Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) |
Long Futures Contracts |
|
|
|
|
Dow Jones EURO STOXX 50 Index | June 2019 | 398 | 15,410 | 436 |
Topix Index | June 2019 | 101 | 14,643 | (13) |
S&P ASX 200 Index | June 2019 | 115 | 12,777 | 14 |
FTSE 100 Index | June 2019 | 112 | 10,766 | (1) |
|
|
|
| 436 |
Forward Currency Contracts |
| Contract Settlement Date |
Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized (Depreciation) ($000) | |||
Counterparty |
| Receive |
| Deliver | |||
Morgan Stanley Capital Services LLC | 6/26/19 | EUR | 23,357 | USD | 26,557 | — | (225) |
Toronto-Dominion Bank | 6/25/19 | AUD | 21,016 | USD | 14,998 | — | (163) |
Morgan Stanley Capital Services LLC | 6/26/19 | GBP | 11,047 | USD | 14,731 | — | (280) |
Morgan Stanley Capital Services LLC | 6/18/19 | JPY | 1,276,000 | USD | 11,522 | — | (20) |
JPMorgan Chase Bank, N.A. | 6/18/19 | JPY | 1,151,265 | USD | 10,334 | 43 | — |
Morgan Stanley Capital Services LLC | 6/25/19 | AUD | 13,564 | USD | 9,639 | — | (64) |
JPMorgan Chase Bank, N.A. | 6/26/19 | GBP | 6,445 | USD | 8,357 | 73 | — |
Toronto-Dominion Bank | 6/18/19 | JPY | 862,880 | USD | 7,786 | — | (7) |
JPMorgan Chase Bank, N.A. | 6/18/19 | JPY | 328,335 | USD | 2,971 | — | (12) |
Bank of America, N.A. | 6/26/19 | GBP | 1,968 | USD | 2,609 | — | (35) |
Toronto-Dominion Bank | 6/26/19 | EUR | 1,032 | USD | 1,179 | — | (16) |
Goldman Sachs International | 6/26/19 | GBP | 259 | USD | 346 | — | (7) |
Morgan Stanley Capital Services LLC | 6/25/19 | USD | 5,473 | AUD | 7,680 | 52 | — |
BNP Paribas | 6/26/19 | USD | 4,335 | EUR | 3,828 | 20 | — |
Citibank, N.A. | 6/18/19 | USD | 4,084 | JPY | 454,650 | — | (15) |
BNP Paribas | 6/18/19 | USD | 3,949 | JPY | 438,750 | — | (6) |
JPMorgan Chase Bank, N.A. | 6/18/19 | USD | 3,791 | JPY | 419,180 | 11 | — |
JPMorgan Chase Bank, N.A. | 6/25/19 | USD | 3,453 | AUD | 4,839 | 37 | — |
Morgan Stanley Capital Services LLC | 6/18/19 | USD | 3,338 | JPY | 367,080 | 29 | — |
Goldman Sachs International | 6/26/19 | USD | 3,263 | GBP | 2,521 | — | (35) |
JPMorgan Chase Bank, N.A. | 6/18/19 | USD | 3,063 | JPY | 339,780 | — | — |
International Explorer Fund
Forward Currency Contracts (continued) |
| Contract Settlement Date |
Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized (Depreciation) ($000) | ||||
Counterparty |
| Receive |
| Deliver | ||||
Citibank, N.A. | 6/25/19 | USD | 2,983 | AUD | 4,169 | 41 | — | |
JPMorgan Chase Bank, N.A. | 6/26/19 | USD | 2,959 | GBP | 2,246 | 20 | — | |
Morgan Stanley Capital Services LLC | 6/26/19 | USD | 2,861 | EUR | 2,524 | 15 | — | |
Morgan Stanley Capital Services LLC | 6/26/19 | USD | 2,520 | GBP | 1,904 | 30 | — | |
JPMorgan Chase Bank, N.A. | 6/26/19 | USD | 2,407 | EUR | 2,097 | 44 | — | |
Citibank, N.A. | 6/26/19 | USD | 2,149 | EUR | 1,890 | 19 | — | |
Bank of America, N.A. | 6/26/19 | USD | 2,033 | GBP | 1,547 | 9 | — | |
Citibank, N.A. | 6/26/19 | USD | 1,742 | GBP | 1,327 | 7 | — | |
JPMorgan Chase Bank, N.A. | 6/26/19 | USD | 1,640 | GBP | 1,259 | — | (7) | |
Barclays Bank plc | 6/26/19 | USD | 1,554 | GBP | 1,183 | 6 | — | |
Morgan Stanley Capital Services LLC | 6/26/19 | USD | 1,382 | EUR | 1,235 |
| (11) | |
|
|
|
|
|
|
| 456 | (903) |
AUD—Australian dollar.
EUR—Euro.
GBP—British pound.
JPY—Japanese yen.
USD—U.S. dollar.
See accompanying Notes, which are an integral part of the Financial Statements.
International Explorer Fund
Statement of Operations
| Six Months Ended |
| April 30, 2019 |
| ($000) |
Investment Income |
|
Income |
|
Dividends—Unaffiliated Issuers1 | 34,517 |
Dividends—Affiliated Issuers | 392 |
Interest—Unaffiliated Issuers | 301 |
Interest—Affiliated Issuers | 1,186 |
Securities Lending—Net | 1,593 |
Total Income | 37,989 |
Expenses |
|
Investment Advisory Fees—Note B |
|
Basic Fee | 3,992 |
Performance Adjustment | (541) |
The Vanguard Group—Note C |
|
Management and Administrative | 3,048 |
Marketing and Distribution | 5 |
Custodian Fees | 25 |
Shareholders’ Reports | 1 |
Total Expenses | 6,530 |
Expenses Paid Indirectly | (24) |
Net Expenses | 6,506 |
Net Investment Income | 31,483 |
Realized Net Gain (Loss) |
|
Investment Securities Sold—Unaffiliated Issuers | (98,888) |
Investment Securities Sold—Affiliated Issuers | (6) |
Futures Contracts | 852 |
Forward Currency Contracts | (617) |
Foreign Currencies | 156 |
Realized Net Gain (Loss) | (98,503) |
Change in Unrealized Appreciation (Depreciation) |
|
Investment Securities—Unaffiliated Issuers | 234,141 |
Investment Securities—Affiliated Issuers | 745 |
Futures Contracts | 3,294 |
Forward Currency Contracts | 975 |
Foreign Currencies | (13) |
Change in Unrealized Appreciation (Depreciation) | 239,142 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 172,172 |
1 Dividends are net of foreign withholding taxes of $2,502,000.
See accompanying Notes, which are an integral part of the Financial Statements.
International Explorer Fund
Statement of Changes in Net Assets
| Six Months Ended April 30, 2019 |
| Year Ended October 31, 2018 |
| ($000 | ) | ($000) |
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net Investment Income | 31,483 |
| 75,882 |
Realized Net Gain (Loss) | (98,503 | ) | 248,680 |
Change in Unrealized Appreciation (Depreciation) | 239,142 |
| (897,889) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 172,122 |
| (573,327) |
Distributions |
|
|
|
Net Investment Income | (57,408 | ) | (83,340) |
Realized Capital Gain1 | (204,757 | ) | (167,556) |
Total Distributions | (262,165 | ) | (250,896) |
Capital Share Transactions |
|
|
|
Issued | 381,166 |
| 1,249,140 |
Issued in Lieu of Cash Distributions | 237,472 |
| 228,661 |
Redeemed | (669,646 | ) | (984,248) |
Net Increase (Decrease) from Capital Share Transactions | (51,008 | ) | 493,553 |
Total Increase (Decrease) | (141,051 | ) | (330,670) |
Net Assets |
|
|
|
Beginning of Period | 3,649,394 |
| 3,980,064 |
End of Period | 3,508,343 |
| 3,649,394 |
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $40,208,000 and $38,075,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
International Explorer Fund
Financial Highlights
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2019 |
Year Ended October 31, | ||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Net Asset Value, Beginning of Period | $17.86 | $21.87 | $16.82 | $17.76 | $18.26 | $18.50 |
Investment Operations |
|
|
|
|
|
|
Net Investment Income | .1531 | .3691 | .3331 | .318 | .287 | .335 |
Net Realized and Unrealized Gain (Loss) on Investments | .646 | (3.032) | 5.035 | (.334) | .635 | .133 |
Total from Investment Operations | .799 | (2.663) | 5.368 | (.016) | .922 | .468 |
Distributions |
|
|
|
|
|
|
Dividends from Net Investment Income | (.289) | (.447) | (.318) | (.263) | (.326) | (.420) |
Distributions from Realized Capital Gains | (1.030) | (.900) | — | (.661) | (1.096) | (.288) |
Total Distributions | (1.319) | (1.347) | (.318) | (.924) | (1.422) | (.708) |
Net Asset Value, End of Period | $17.34 | $17.86 | $21.87 | $16.82 | $17.76 | $18.26 |
|
|
|
|
|
|
|
Total Return2 | 5.58% | -13.08% | 32.58% | -0.06% | 5.65% | 2.66% |
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
Net Assets, End of Period (Millions) | $3,508 | $3,649 | $3,980 | $2,829 | $2,887 | $2,598 |
Ratio of Total Expenses to Average Net Assets3 | 0.38% | 0.39% | 0.38% | 0.41% | 0.42% | 0.40% |
Ratio of Net Investment Income to Average Net Assets | 1.82% | 1.75% | 1.68% | 1.83% | 1.53% | 1.69% |
Portfolio Turnover Rate | 32% | 40% | 43% | 37% | 42% | 39% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
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%), (0.01%), (0.01%), 0.00%, 0.00%, and 0.00%.
See accompanying Notes, which are an integral part of the Financial Statements.
International Explorer Fund
Notes to Financial Statements
Vanguard International Explorer 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. Further, at April 30, 2019, the fund had a concentration of its investments in securities issued in Japan, and the performance of such investments may be impacted by the country’s social, political, and economic conditions.
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 at their fair values calculated according to procedures adopted 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. Futures and Forward Currency Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. 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.
International Explorer Fund
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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
The fund enters into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts or to protect the value of securities and related receivables and payables against changes in foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counter- parties, 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. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, 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 forward currency 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 assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency 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.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. 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 or forward currency contracts.
During the six months ended April 30, 2019, the fund’s average investments in long and short futures contracts represented 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period. The fund’s average investment in forward currency contracts represented 6% of net assets, based on the average of the notional amounts at each quarter-end during the period.
4. 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
International Explorer Fund
with its counterparties. The master repurchase agreements provide that, in the event of a counter-party’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.
5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015-2018), and for the period ended April 30, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.
7. 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. 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.
8. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
International Explorer Fund
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
9. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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.
Withholding 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. 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. Such tax reclaims received during the year, if any, are included in dividend income. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.
B. The investment advisory firms Schroder Investment Management North America Inc., Wellington Management Company LLP, and TimesSquare Capital Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Schroder Investment Management North America Inc. and Wellington Management Company LLP is subject to quarterly adjustments based on performance relative to the S&P EPAC SmallCap Index for the preceding three years. The basic fee of TimesSquare Capital Management, LLC, is subject to quarterly adjustments based on performance relative to the S&P EPAC SmallCap Index since October 31, 2017.
Vanguard manages the cash reserves of the fund as described below.
For the six months ended April 30, 2019, the aggregate investment advisory fee represented an effective annual basic rate of 0.24% of the fund’s average net assets, before a decrease of $541,000 (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, distribution, and cash management 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $169,000, representing 0.00% of the fund’s net assets and 0.07% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
International Explorer Fund
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 six months ended April 30, 2019, custodian fee offset arrangements reduced the fund’s expenses by $24,000 (an annual rate of 0.00% 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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
| Level 1 | Level 2 | Level 3 |
Investments | ($000) | ($000) | ($000) |
Common Stocks | 81,279 | 3,297,690 | — |
Temporary Cash Investments | 193,271 | 21,996 | — |
Futures Contracts—Assets1 | 99 | — | — |
Futures Contracts—Liabilities1 | (295) | — | — |
Forward Currency Contracts—Assets | — | 456 | — |
Forward Currency Contracts—Liabilities | — | (903) | — |
Total | 274,354 | 3,319,239 | — |
1 Represents variation margin on the last day of the reporting period.
F. At April 30, 2019, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
Statement of Assets and Liabilities Caption | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Variation Margin Receivable—Futures Contracts | 99 | — | 99 |
Unrealized Appreciation—Forward Currency Contracts | — | 456 | 456 |
Total Assets | 99 | 456 | 555 |
|
|
|
|
Variation Margin Payable—Futures Contracts | (295) | — | (295) |
Unrealized Depreciation—Forward Currency Contracts | — | (903) | (903) |
Total Liabilities | (295) | (903) | (1,198) |
International Explorer Fund
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2019, were:
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | 852 | — | 852 |
Forward Currency Contracts | — | (617) | (617) |
Realized Net Gain (Loss) on Derivatives | 852 | (617) | 235 |
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|
|
|
Futures Contracts | 3,294 | — | 3,294 |
Forward Currency Contracts | — | 975 | 975 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 3,294 | 975 | 4,269 |
G. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
| Amount |
| ($000) |
Tax Cost | 3,361,832 |
Gross Unrealized Appreciation | 611,041 |
Gross Unrealized Depreciation | (378,648) |
Net Unrealized Appreciation (Depreciation) | 232,393 |
H. During the six months ended April 30, 2019, the fund purchased $537,377,000 of investment securities and sold $762,066,000 of investment securities, other than temporary cash investments.
I. Capital shares issued and redeemed were:
| Six Months Ended |
| Year Ended |
| April 30, 2019 |
| October 31, 2018 |
| Shares |
| Shares |
| (000 | ) | (000) |
Issued | 23,412 |
| 58,614 |
Issued in Lieu of Cash Distributions | 15,758 |
| 10,930 |
Redeemed | (41,204 | ) | (47,185) |
Net Increase (Decrease) in Shares Outstanding | (2,034 | ) | 22,359 |
International Explorer Fund
J. Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows:
|
| Current Period Transactions |
| |||||
| Oct. 31, |
| Proceeds | Realized |
|
|
| April 30, |
| 2018 |
| from | Net | Change in |
| Capital Gain | 2019 |
| Market | Purchases | Securities | Gain | Unrealized |
| Distributions | Market |
| Value | at Cost | Sold | (Loss) | App. (Dep.) | Income | Received | Value |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | ($000) |
Vanguard FTSE All World ex-US Small-Cap ETF | 25,105 | 2,956 | 6,116 | (16) | 740 | 392 | — | 22,669 |
Vanguard Market Liquidity Fund | 270,069 | NA1 | NA1 | 10 | 5 | 1,186 | — | 193,271 |
Total | 295,174 |
|
| (6) | 745 | 1,578 | — | 215,940 |
1 Not applicable—purchases and sales are for temporary cash investment purposes.
K. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > 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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.
Q1262 062019 |
Semiannual Report | April 30, 2019
Vanguard High Dividend Yield Index Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents
About Your Fund’s Expenses | 1 |
|
|
Financial Statements | 4 |
|
|
Trustees Approve Advisory Arrangement | 21 |
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 April 30, 2019
High Dividend Yield Index Fund |
| Beginning |
| Ending |
| Expenses |
Based on Actual Fund Return |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,076.89 |
| $0.72 |
ETF Shares |
| 1,000.00 |
| 1,077.48 |
| 0.31 |
AdmiralTM Shares (Since inception: 2/7/2019) |
| 1,000.00 |
| 1,071.24 |
| 0.19 |
Based on Hypothetical 5% Yearly Return |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,024.10 |
| $0.70 |
ETF Shares |
| 1,000.00 |
| 1,024.50 |
| 0.30 |
Admiral Shares (Since inception: 2/7/2019) |
| 1,000.00 |
| 1,011.19 |
| 0.18 |
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 0.14% for Investor Shares, 0.06% for ETF Shares, and 0.08% for Admiral Shares (since inception). 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 (181/365 for Investor and ETF Shares and 83/365 for Admiral Shares).
High Dividend Yield Index Fund
Sector Diversification
As of April 30, 2019
Basic Materials |
| 3.9 | % |
Consumer Goods |
| 13.7 |
|
Consumer Services |
| 9.4 |
|
Financials |
| 18.7 |
|
Health Care |
| 12.9 |
|
Industrials |
| 8.3 |
|
Oil & Gas |
| 9.3 |
|
Technology |
| 11.1 |
|
Telecommunications |
| 4.6 |
|
Utilities |
| 8.1 |
|
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.
High Dividend Yield Index Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
Common Stocks (99.8%)1 |
|
|
|
| |
Basic Materials (3.9%) |
|
|
|
| |
| Linde plc |
| 1,740,253 |
| 313,698 |
| DowDuPont Inc. |
| 7,170,003 |
| 275,687 |
| Air Products & Chemicals Inc. |
| 692,409 |
| 142,491 |
* | Dow Inc. |
| 2,389,917 |
| 135,580 |
| LyondellBasell Industries NV Class A |
| 970,988 |
| 85,670 |
| International Paper Co. |
| 1,289,660 |
| 60,369 |
| Nucor Corp. |
| 964,119 |
| 55,022 |
| Eastman Chemical Co. |
| 439,940 |
| 34,702 |
| CF Industries Holdings Inc. |
| 727,207 |
| 32,564 |
| RPM International Inc. |
| 406,843 |
| 24,675 |
| Reliance Steel & Aluminum Co. |
| 215,133 |
| 19,784 |
| Huntsman Corp. |
| 685,543 |
| 15,247 |
| Olin Corp. |
| 520,705 |
| 11,294 |
| Scotts Miracle-Gro Co. |
| 127,146 |
| 10,810 |
| Southern Copper Corp. |
| 258,984 |
| 9,950 |
| Domtar Corp. |
| 197,382 |
| 9,652 |
| Cabot Corp. |
| 183,565 |
| 8,330 |
| Commercial Metals Co. |
| 363,146 |
| 6,279 |
| Compass Minerals International Inc. |
| 106,304 |
| 6,101 |
| Trinseo SA |
| 133,792 |
| 6,014 |
| Schweitzer-Mauduit International Inc. |
| 95,866 |
| 3,410 |
| Innophos Holdings Inc. |
| 60,521 |
| 1,948 |
| Orion Engineered Carbons SA |
| 96,016 |
| 1,946 |
| Schnitzer Steel Industries Inc. |
| 81,436 |
| 1,932 |
| Nexa Resources SA |
| 112,228 |
| 1,329 |
*,§ | Ferroglobe R&W Trust |
| 166,085 |
| — |
|
|
|
|
| 1,274,484 |
Consumer Goods (13.7%) |
|
|
|
| |
| Procter & Gamble Co. |
| 7,863,746 |
| 837,332 |
| Coca-Cola Co. |
| 12,078,732 |
| 592,583 |
| PepsiCo Inc. |
| 4,472,910 |
| 572,756 |
| Philip Morris International Inc. |
| 4,904,815 |
| 424,561 |
| Altria Group Inc. |
| 5,978,666 |
| 324,821 |
| Colgate-Palmolive Co. |
| 2,692,413 |
| 195,981 |
| General Motors Co. |
| 4,138,866 |
| 161,209 |
| Kimberly-Clark Corp. |
| 1,083,329 |
| 139,078 |
| Ford Motor Co. |
| 12,313,439 |
| 128,675 |
| VF Corp. |
| 1,020,186 |
| 96,316 |
| General Mills Inc. |
| 1,869,799 |
| 96,239 |
| Archer-Daniels-Midland Co. |
| 1,761,431 |
| 78,560 |
| Clorox Co. |
| 404,385 |
| 64,592 |
| Kraft Heinz Co. |
| 1,909,055 |
| 63,457 |
| Hershey Co. |
| 442,430 |
| 55,237 |
| Kellogg Co. |
| 782,230 |
| 47,168 |
| Conagra Brands Inc. |
| 1,520,486 |
| 46,801 |
| Genuine Parts Co. |
| 451,099 |
| 46,256 |
| JM Smucker Co. |
| 347,077 |
| 42,562 |
| Hasbro Inc. |
| 366,153 |
| 37,296 |
| Molson Coors Brewing Co. Class B |
| 547,367 |
| 35,135 |
| Garmin Ltd. |
| 359,370 |
| 30,812 |
| Coca-Cola European Partners plc |
| 568,645 |
| 30,474 |
| Tapestry Inc. |
| 909,095 |
| 29,337 |
| Whirlpool Corp. |
| 197,389 |
| 27,402 |
| Bunge Ltd. |
| 443,179 |
| 23,227 |
| Autoliv Inc. |
| 275,372 |
| 21,614 |
| Campbell Soup Co. |
| 558,239 |
| 21,598 |
| Hanesbrands Inc. |
| 1,129,797 |
| 20,415 |
| Newell Brands Inc. |
| 1,330,511 |
| 19,133 |
| Harley-Davidson Inc. |
| 513,309 |
| 19,110 |
| Polaris Industries Inc. |
| 185,105 |
| 17,844 |
| Leggett & Platt Inc. |
| 413,461 |
| 16,274 |
^ | Coty Inc. Class A |
| 1,468,580 |
| 15,890 |
| Goodyear Tire & Rubber Co. |
| 731,700 |
| 14,056 |
| Flowers Foods Inc. |
| 566,128 |
| 12,308 |
| Nu Skin Enterprises Inc. Class A |
| 174,048 |
| 8,854 |
High Dividend Yield Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| Spectrum Brands Holdings Inc. |
| 127,292 |
| 7,837 |
| LCI Industries |
| 76,240 |
| 6,698 |
^ | B&G Foods Inc. |
| 204,968 |
| 5,329 |
| HNI Corp. |
| 135,365 |
| 4,969 |
| MDC Holdings Inc. |
| 157,014 |
| 4,798 |
| Steelcase Inc. Class A |
| 269,656 |
| 4,662 |
| Universal Corp. |
| 76,950 |
| 4,145 |
| Tupperware Brands Corp. |
| 152,277 |
| 3,624 |
| Tenneco Inc. Class A |
| 158,868 |
| 3,482 |
| Knoll Inc. |
| 150,891 |
| 3,295 |
| Vector Group Ltd. |
| 319,623 |
| 3,046 |
| Ethan Allen Interiors Inc. |
| 75,954 |
| 1,679 |
| National Presto Industries Inc. |
| 15,550 |
| 1,656 |
* | Elanco Animal Health Inc. |
| 5 |
| — |
|
|
|
|
| 4,470,183 |
Consumer Services (9.4%) |
|
|
|
| |
| Comcast Corp. Class A |
| 14,188,743 |
| 617,636 |
| McDonald’s Corp. |
| 2,452,193 |
| 484,480 |
| Walmart Inc. |
| 4,433,074 |
| 455,897 |
| CVS Health Corp. |
| 4,059,673 |
| 220,765 |
| Walgreens Boots Alliance Inc. |
| 2,558,678 |
| 137,068 |
| Target Corp. |
| 1,662,116 |
| 128,681 |
| Delta Air Lines Inc. |
| 2,013,998 |
| 117,396 |
| Sysco Corp. |
| 1,480,673 |
| 104,195 |
| Las Vegas Sands Corp. |
| 1,126,637 |
| 75,541 |
| Carnival Corp. |
| 1,264,006 |
| 69,343 |
| Omnicom Group Inc. |
| 701,769 |
| 56,163 |
| Best Buy Co. Inc. |
| 727,668 |
| 54,146 |
| Darden Restaurants Inc. |
| 390,301 |
| 45,899 |
| Kohl’s Corp. |
| 517,176 |
| 36,771 |
| Viacom Inc. Class B |
| 1,113,995 |
| 32,206 |
| Vail Resorts Inc. |
| 126,392 |
| 28,925 |
| Nielsen Holdings plc |
| 1,124,907 |
| 28,719 |
| Interpublic Group of Cos. Inc. |
| 1,208,431 |
| 27,794 |
| KAR Auction Services Inc. |
| 423,664 |
| 23,929 |
| Macy’s Inc. |
| 963,259 |
| 22,675 |
| L Brands Inc. |
| 721,123 |
| 18,490 |
| Gap Inc. |
| 680,706 |
| 17,753 |
| H&R Block Inc. |
| 648,127 |
| 17,635 |
| Wyndham Hotels & Resorts Inc. |
| 308,585 |
| 17,194 |
| Nordstrom Inc. |
| 370,946 |
| 15,216 |
^ | Williams-Sonoma Inc. |
| 252,521 |
| 14,437 |
| Cinemark Holdings Inc. |
| 337,836 |
| 14,206 |
| Wyndham Destinations Inc. |
| 301,816 |
| 13,147 |
| Tribune Media Co. Class A |
| 276,258 |
| 12,763 |
| Six Flags Entertainment Corp. |
| 227,878 |
| 12,098 |
| American Eagle Outfitters Inc. |
| 506,575 |
| 12,046 |
| TEGNA Inc. |
| 681,404 |
| 10,848 |
| Extended Stay America Inc. |
| 597,947 |
| 10,709 |
| Cracker Barrel Old Country Store Inc. |
| 60,055 |
| 10,134 |
| Sinclair Broadcast Group Inc. Class A |
| 212,577 |
| 9,734 |
| Meredith Corp. |
| 122,969 |
| 7,255 |
| Bed Bath & Beyond Inc. |
| 410,948 |
| 6,867 |
| Cheesecake Factory Inc. |
| 132,092 |
| 6,554 |
| John Wiley & Sons Inc. Class A |
| 139,008 |
| 6,419 |
| Abercrombie & Fitch Co. |
| 205,778 |
| 6,151 |
| Penske Automotive Group Inc. |
| 111,153 |
| 5,104 |
| Brinker International Inc. |
| 117,099 |
| 5,008 |
| Designer Brands Inc. |
| 214,186 |
| 4,766 |
| Big Lots Inc. |
| 125,344 |
| 4,658 |
| Dine Brands Global Inc. |
| 52,255 |
| 4,633 |
| International Game Technology plc |
| 309,211 |
| 4,524 |
| Office Depot Inc. |
| 1,698,702 |
| 4,077 |
| Signet Jewelers Ltd. |
| 161,913 |
| 3,753 |
| Guess? Inc. |
| 179,438 |
| 3,655 |
| Gannett Co. Inc. |
| 352,830 |
| 3,292 |
^ | GameStop Corp. Class A |
| 311,278 |
| 2,693 |
| Copa Holdings SA Class A |
| 24,309 |
| 2,024 |
| New Media Investment Group Inc. |
| 185,941 |
| 1,988 |
| SpartanNash Co. |
| 109,945 |
| 1,778 |
| National CineMedia Inc. |
| 245,198 |
| 1,711 |
| Buckle Inc. |
| 91,361 |
| 1,688 |
| Chico’s FAS Inc. |
| 395,048 |
| 1,383 |
| Tailored Brands Inc. |
| 158,460 |
| 1,291 |
| Weis Markets Inc. |
| 29,051 |
| 1,222 |
| Speedway Motorsports Inc. |
| 34,795 |
| 638 |
|
|
|
|
| 3,067,771 |
Financials (18.6%) |
|
|
|
| |
| JPMorgan Chase & Co. |
| 10,446,641 |
| 1,212,333 |
| Wells Fargo & Co. |
| 13,036,648 |
| 631,104 |
| Citigroup Inc. |
| 5,917,927 |
| 418,397 |
| US Bancorp |
| 4,776,377 |
| 254,676 |
| Chubb Ltd. |
| 1,447,457 |
| 210,171 |
| CME Group Inc. |
| 1,116,603 |
| 199,760 |
| Morgan Stanley |
| 4,102,694 |
| 197,955 |
| PNC Financial Services Group Inc. |
| 1,442,446 |
| 197,514 |
| BlackRock Inc. |
| 383,005 |
| 185,849 |
| Progressive Corp. |
| 1,830,612 |
| 143,062 |
| Prudential Financial Inc. |
| 1,302,324 |
| 137,669 |
High Dividend Yield Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| American International Group Inc. |
| 2,809,830 |
| 133,664 |
| BB&T Corp. |
| 2,431,477 |
| 124,492 |
| Travelers Cos. Inc. |
| 835,500 |
| 120,103 |
| Aflac Inc. |
| 2,354,032 |
| 118,596 |
| MetLife Inc. |
| 2,568,215 |
| 118,472 |
| SunTrust Banks Inc. |
| 1,415,895 |
| 92,713 |
| State Street Corp. |
| 1,184,149 |
| 80,119 |
| Synchrony Financial |
| 2,274,769 |
| 78,866 |
| T. Rowe Price Group Inc. |
| 732,158 |
| 78,707 |
| Fifth Third Bancorp |
| 2,422,532 |
| 69,817 |
| Ameriprise Financial Inc. |
| 429,686 |
| 63,065 |
| KeyCorp |
| 3,198,364 |
| 56,131 |
| Citizens Financial Group Inc. |
| 1,475,411 |
| 53,410 |
| Regions Financial Corp. |
| 3,261,426 |
| 50,650 |
| Principal Financial Group Inc. |
| 869,847 |
| 49,720 |
| Arthur J Gallagher & Co. |
| 568,114 |
| 47,506 |
| Cincinnati Financial Corp. |
| 484,306 |
| 46,581 |
| Huntington Bancshares Inc. |
| 3,282,033 |
| 45,686 |
| Comerica Inc. |
| 510,901 |
| 40,152 |
| Fidelity National Financial Inc. |
| 832,917 |
| 33,275 |
| Franklin Resources Inc. |
| 948,543 |
| 32,810 |
| Invesco Ltd. |
| 1,277,074 |
| 28,057 |
| Western Union Co. |
| 1,388,877 |
| 27,000 |
| Unum Group |
| 640,121 |
| 23,633 |
| People’s United Financial Inc. |
| 1,217,530 |
| 21,051 |
| Old Republic International Corp. |
| 892,090 |
| 19,947 |
| First American Financial Corp. |
| 341,923 |
| 19,510 |
| Synovus Financial Corp. |
| 506,692 |
| 18,677 |
| Cullen/Frost Bankers Inc. |
| 178,455 |
| 18,147 |
| Popular Inc. |
| 311,511 |
| 17,977 |
| AXA Equitable Holdings Inc. |
| 748,602 |
| 16,986 |
| New York Community Bancorp Inc. |
| 1,449,129 |
| 16,853 |
| Janus Henderson Group plc |
| 628,081 |
| 15,746 |
| PacWest Bancorp |
| 387,162 |
| 15,312 |
| First Horizon National Corp. |
| 994,703 |
| 15,010 |
| Axis Capital Holdings Ltd. |
| 259,028 |
| 14,726 |
| Eaton Vance Corp. |
| 354,113 |
| 14,720 |
| Lazard Ltd. Class A |
| 362,522 |
| 14,095 |
| FNB Corp. |
| 1,020,939 |
| 12,384 |
| United Bankshares Inc. |
| 307,118 |
| 12,051 |
| Umpqua Holdings Corp. |
| 691,996 |
| 12,013 |
| Hancock Whitney Corp. |
| 268,058 |
| 11,725 |
| Associated Banc-Corp |
| 515,480 |
| 11,696 |
| Glacier Bancorp Inc. |
| 267,360 |
| 11,387 |
| First Hawaiian Inc. |
| 410,716 |
| 11,356 |
| BankUnited Inc. |
| 306,987 |
| 11,230 |
| TCF Financial Corp. |
| 504,092 |
| 11,156 |
| Bank of Hawaii Corp. |
| 129,141 |
| 10,639 |
| Valley National Bancorp |
| 1,006,452 |
| 10,548 |
| Navient Corp. |
| 771,931 |
| 10,429 |
| Community Bank System Inc. |
| 156,618 |
| 10,409 |
| RLI Corp. |
| 123,418 |
| 10,038 |
| Chemical Financial Corp. |
| 224,757 |
| 9,874 |
| Federated Investors Inc. Class B |
| 302,188 |
| 9,286 |
| Fulton Financial Corp. |
| 520,396 |
| 8,977 |
| Investors Bancorp Inc. |
| 760,529 |
| 8,936 |
| Legg Mason Inc. |
| 265,538 |
| 8,882 |
| Cathay General Bancorp |
| 241,056 |
| 8,868 |
| Columbia Banking System Inc. |
| 228,201 |
| 8,567 |
| Kennedy-Wilson Holdings Inc. |
| 393,605 |
| 8,478 |
| OneMain Holdings Inc. |
| 239,908 |
| 8,150 |
| Old National Bancorp |
| 471,241 |
| 8,049 |
| Santander Consumer USA Holdings Inc. |
| 362,900 |
| 7,748 |
| CVB Financial Corp. |
| 348,858 |
| 7,570 |
| First Financial Bancorp |
| 297,724 |
| 7,473 |
| Trustmark Corp. |
| 204,053 |
| 7,338 |
| Bank of NT Butterfield & Son Ltd. |
| 175,350 |
| 7,017 |
| WesBanco Inc. |
| 162,868 |
| 6,567 |
| Great Western Bancorp Inc. |
| 178,856 |
| 6,290 |
| ProAssurance Corp. |
| 165,516 |
| 6,212 |
| Moelis & Co. Class A |
| 139,227 |
| 5,701 |
| Capitol Federal Financial Inc. |
| 411,899 |
| 5,684 |
| HFF Inc. Class A |
| 117,101 |
| 5,573 |
| Hope Bancorp Inc. |
| 378,446 |
| 5,321 |
| Northwest Bancshares Inc. |
| 298,309 |
| 5,200 |
| Westamerica Bancorporation |
| 80,331 |
| 5,159 |
| Provident Financial Services Inc. |
| 191,424 |
| 5,077 |
| NBT Bancorp Inc. |
| 132,563 |
| 5,040 |
| Horace Mann Educators Corp. |
| 128,387 |
| 4,953 |
| BGC Partners Inc. Class A |
| 857,597 |
| 4,631 |
| Mercury General Corp. |
| 85,697 |
| 4,609 |
| Waddell & Reed Financial Inc. Class A |
| 233,558 |
| 4,375 |
| S&T Bancorp Inc. |
| 107,239 |
| 4,298 |
High Dividend Yield Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| Artisan Partners Asset Management Inc. Class A |
| 149,771 |
| 4,244 |
| Safety Insurance Group Inc. |
| 45,669 |
| 4,244 |
| First Commonwealth Financial Corp. |
| 305,636 |
| 4,160 |
| Pacific Premier Bancorp Inc. |
| 142,480 |
| 4,142 |
| CNA Financial Corp. |
| 88,597 |
| 4,105 |
| City Holding Co. |
| 49,725 |
| 3,947 |
| Sandy Spring Bancorp Inc. |
| 110,379 |
| 3,851 |
| Berkshire Hills Bancorp Inc. |
| 127,292 |
| 3,817 |
| Brookline Bancorp Inc. |
| 250,626 |
| 3,772 |
| Clearway Energy Inc. |
| 235,065 |
| 3,730 |
| BrightSphere Investment Group plc |
| 250,847 |
| 3,677 |
| Cohen & Steers Inc. |
| 69,246 |
| 3,473 |
| Boston Private Financial Holdings Inc. |
| 264,971 |
| 3,034 |
| American National Insurance Co. |
| 23,204 |
| 2,629 |
| TFS Financial Corp. |
| 155,194 |
| 2,582 |
| Washington Trust Bancorp Inc. |
| 48,273 |
| 2,501 |
| TrustCo Bank Corp. NY |
| 291,968 |
| 2,336 |
| Stock Yards Bancorp Inc. |
| 67,354 |
| 2,314 |
| Oritani Financial Corp. |
| 120,089 |
| 2,084 |
| Community Trust Bancorp Inc. |
| 48,519 |
| 2,050 |
| FBL Financial Group Inc. Class A |
| 31,717 |
| 1,981 |
| Dime Community Bancshares Inc. |
| 97,724 |
| 1,969 |
| Flushing Financial Corp. |
| 85,414 |
| 1,930 |
| Clearway Energy Inc. Class A |
| 102,900 |
| 1,582 |
| First Financial Corp. |
| 37,949 |
| 1,562 |
| Republic Bancorp Inc. Class A |
| 30,729 |
| 1,452 |
|
|
|
|
| 6,084,604 |
Health Care (12.9%) |
|
|
|
| |
| Johnson & Johnson |
| 8,476,687 |
| 1,196,908 |
| Pfizer Inc. |
| 18,103,524 |
| 735,184 |
| Merck & Co. Inc. |
| 8,217,041 |
| 646,763 |
| AbbVie Inc. |
| 4,785,009 |
| 379,882 |
| Amgen Inc. |
| 1,990,075 |
| 356,860 |
| Eli Lilly & Co. |
| 2,786,630 |
| 326,147 |
| Gilead Sciences Inc. |
| 4,030,015 |
| 262,112 |
| Bristol-Myers Squibb Co. |
| 5,164,977 |
| 239,810 |
| Cardinal Health Inc. |
| 939,587 |
| 45,767 |
| Patterson Cos. Inc. |
| 255,647 |
| 5,584 |
| Meridian Bioscience Inc. |
| 132,468 |
| 1,525 |
* | Tivity Health Inc. |
| 20 |
| 1 |
|
|
|
|
| 4,196,543 |
Industrials (8.3%) |
|
|
|
| |
| 3M Co. |
| 1,766,513 |
| 334,772 |
| Lockheed Martin Corp. |
| 775,164 |
| 258,385 |
| Caterpillar Inc. |
| 1,809,654 |
| 252,302 |
| United Parcel Service Inc. Class B |
| 2,180,988 |
| 231,665 |
| Automatic Data Processing Inc. |
| 1,375,415 |
| 226,105 |
| Illinois Tool Works Inc. |
| 1,048,084 |
| 163,113 |
| Waste Management Inc. |
| 1,346,144 |
| 144,495 |
| Emerson Electric Co. |
| 1,933,475 |
| 137,257 |
| Eaton Corp. plc |
| 1,378,365 |
| 114,156 |
| Johnson Controls International plc |
| 2,872,558 |
| 107,721 |
| Paychex Inc. |
| 1,011,661 |
| 85,293 |
| Cummins Inc. |
| 469,047 |
| 77,998 |
| PACCAR Inc. |
| 1,066,078 |
| 76,406 |
| Fastenal Co. |
| 906,125 |
| 63,927 |
| CH Robinson Worldwide Inc. |
| 429,965 |
| 34,827 |
| Westrock Co. |
| 792,723 |
| 30,425 |
| Snap-on Inc. |
| 173,892 |
| 29,263 |
| Packaging Corp. of America |
| 294,861 |
| 29,238 |
| Toro Co. |
| 324,897 |
| 23,766 |
| Hubbell Inc. Class B |
| 172,158 |
| 21,967 |
| Xerox Corp. |
| 633,521 |
| 21,134 |
| Sonoco Products Co. |
| 309,682 |
| 19,529 |
| National Instruments Corp. |
| 348,205 |
| 16,401 |
| Bemis Co. Inc. |
| 285,395 |
| 16,387 |
| MUD Resources Group Inc. |
| 611,825 |
| 15,999 |
| Watsco Inc. |
| 100,563 |
| 15,936 |
| nVent Electric plc |
| 508,212 |
| 14,205 |
| MSC Industrial Direct Co. Inc. Class A |
| 138,068 |
| 11,549 |
| Kennametal Inc. |
| 256,131 |
| 10,425 |
| Timken Co. |
| 216,900 |
| 10,400 |
| Ryder System Inc. |
| 164,586 |
| 10,369 |
| Macquarie Infrastructure Corp. |
| 251,403 |
| 10,184 |
| GATX Corp. |
| 117,208 |
| 9,040 |
| ABM Industries Inc. |
| 206,374 |
| 7,836 |
| Covanta Holding Corp. |
| 366,580 |
| 6,624 |
| Otter Tail Corp. |
| 122,866 |
| 6,303 |
| Triton International Ltd. |
| 166,568 |
| 5,488 |
| Mobile Mini Inc. |
| 138,503 |
| 4,989 |
| Actuant Corp. Class A |
| 190,449 |
| 4,872 |
| McGrath RentCorp |
| 75,119 |
| 4,657 |
| Greenbrier Cos. Inc. |
| 98,705 |
| 3,507 |
| Aircastle Ltd. |
| 169,529 |
| 3,377 |
| Ship Finance International Ltd. |
| 252,741 |
| 3,225 |
High Dividend Yield Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| Greif Inc. Class A |
| 79,748 |
| 3,152 |
| H&E Equipment Services Inc. |
| 98,904 |
| 3,008 |
| Seaspan Corp. Class A |
| 291,466 |
| 2,956 |
| AVX Corp. |
| 145,554 |
| 2,374 |
| GasLog Ltd. |
| 129,631 |
| 2,026 |
| Myers Industries Inc. |
| 109,482 |
| 1,959 |
| Briggs & Stratton Corp. |
| 125,292 |
| 1,529 |
^ | Maxar Technologies Inc. |
| 176,956 |
| 872 |
|
|
|
|
| 2,693,393 |
Oil & Gas (9.2%) |
|
|
|
| |
| Exxon Mobil Corp. |
| 13,378,600 |
| 1,074,034 |
| Chevron Corp. |
| 6,015,526 |
| 722,224 |
| Schlumberger Ltd. |
| 4,374,802 |
| 186,717 |
| Occidental Petroleum Corp. |
| 2,389,763 |
| 140,709 |
| Marathon Petroleum Corp. |
| 2,114,315 |
| 128,698 |
| Phillips 66 |
| 1,298,135 |
| 122,375 |
| Kinder Morgan Inc. |
| 6,140,347 |
| 122,009 |
| Valero Energy Corp. |
| 1,336,682 |
| 121,184 |
| Williams Cos. Inc. |
| 3,759,398 |
| 106,504 |
| ONEOK Inc. |
| 1,292,232 |
| 87,781 |
| Apache Corp. |
| 1,203,517 |
| 39,608 |
| Targa Resources Corp. |
| 712,739 |
| 28,616 |
| OGE Energy Corp. |
| 628,933 |
| 26,629 |
| Helmerich & Payne Inc. |
| 334,457 |
| 19,572 |
| Murphy Oil Corp. |
| 517,448 |
| 14,095 |
| Equitrans Midstream Corp. |
| 665,960 |
| 13,872 |
| PBF Energy Inc. Class A |
| 376,161 |
| 12,632 |
| Delek US Holdings Inc. |
| 254,496 |
| 9,432 |
| Core Laboratories NV |
| 137,192 |
| 8,697 |
| Golar LNG Ltd. |
| 295,560 |
| 5,775 |
| Cosan Ltd. |
| 406,564 |
| 4,968 |
| Archrock Inc. |
| 396,918 |
| 4,013 |
| Nabors Industries Ltd. |
| 1,081,377 |
| 3,785 |
| SemGroup Corp. Class A |
| 246,182 |
| 3,215 |
| CVR Energy Inc. |
| 57,851 |
| 2,639 |
| Green Plains Inc. |
| 123,104 |
| 2,138 |
| RPC Inc. |
| 179,056 |
| 1,842 |
|
|
|
|
| 3,013,763 |
Other (0.0%)2 |
|
|
|
| |
§,* | A Schulman Inc. CVR |
| 77,422 |
| 33 |
|
|
|
|
|
|
Technology (11.1%) |
|
|
|
| |
| Cisco Systems Inc. |
| 14,319,234 |
| 801,161 |
| Intel Corp. |
| 14,214,948 |
| 725,531 |
| Broadcom Inc. |
| 1,280,849 |
| 407,822 |
| International Business Machines Corp. |
| 2,901,143 |
| 406,943 |
| Texas Instruments Inc. |
| 3,035,313 |
| 357,651 |
| QUALCOMM Inc. |
| 3,827,498 |
| 329,662 |
| HP Inc. |
| 4,905,856 |
| 97,872 |
| Corning Inc. |
| 2,484,855 |
| 79,143 |
| Hewlett Packard Enterprise Co. |
| 4,421,327 |
| 69,901 |
| KLA-Tencor Corp. |
| 512,556 |
| 65,341 |
| NetApp Inc. |
| 795,952 |
| 57,985 |
| Maxim Integrated Products Inc. |
| 858,147 |
| 51,489 |
| Western Digital Corp. |
| 913,491 |
| 46,698 |
| Seagate Technology plc |
| 881,816 |
| 42,609 |
| Juniper Networks Inc. |
| 1,075,305 |
| 29,861 |
| Cypress Semiconductor Corp. |
| 1,129,473 |
| 19,404 |
| Cogent Communications Holdings Inc. |
| 130,634 |
| 7,215 |
| Pitney Bowes Inc. |
| 584,021 |
| 4,152 |
| Xperi Corp. |
| 150,810 |
| 3,748 |
| TiVo Corp. |
| 376,035 |
| 3,524 |
| ADTRAN Inc. |
| 149,410 |
| 2,561 |
|
|
|
|
| 3,610,273 |
Telecommunications (4.6%) |
|
|
|
| |
| Verizon Communications Inc. |
| 13,061,699 |
| 746,999 |
| AT&T Inc. |
| 22,954,746 |
| 710,679 |
| CenturyLink Inc. |
| 3,016,642 |
| 34,450 |
| Consolidated Communications Holdings Inc. |
| 219,027 |
| 1,130 |
|
|
|
|
| 1,493,258 |
Utilities (8.1%) |
|
|
|
| |
| NextEra Energy Inc. |
| 1,506,787 |
| 292,980 |
| Duke Energy Corp. |
| 2,250,687 |
| 205,083 |
| Dominion Energy Inc. |
| 2,395,695 |
| 186,553 |
| Southern Co. |
| 3,251,556 |
| 173,048 |
| Exelon Corp. |
| 3,044,740 |
| 155,129 |
| American Electric Power Co. Inc. |
| 1,557,458 |
| 133,241 |
| Sempra Energy |
| 863,182 |
| 110,444 |
| Public Service Enterprise Group Inc. |
| 1,593,092 |
| 95,028 |
| Xcel Energy Inc. |
| 1,603,665 |
| 90,607 |
| Consolidated Edison Inc. |
| 981,837 |
| 84,595 |
| WEC Energy Group Inc. |
| 994,841 |
| 78,025 |
| DTE Energy Co. |
| 570,332 |
| 71,696 |
| Eversource Energy |
| 998,029 |
| 71,519 |
| PPL Corp. |
| 2,280,908 |
| 71,187 |
| FirstEnergy Corp. |
| 1,533,356 |
| 64,447 |
| Edison International |
| 1,002,317 |
| 63,918 |
| Ameren Corp. |
| 765,984 |
| 55,741 |
| Entergy Corp. |
| 570,382 |
| 55,270 |
| CMS Energy Corp. |
| 888,037 |
| 49,330 |
| CenterPoint Energy Inc. |
| 1,580,197 |
| 48,986 |
| Evergy Inc. |
| 828,596 |
| 47,909 |
| Atmos Energy Corp. |
| 361,333 |
| 36,979 |
| AES Corp. |
| 2,083,385 |
| 35,668 |
High Dividend Yield Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| Alliant Energy Corp. |
| 743,287 |
| 35,105 |
| Pinnacle West Capital Corp. |
| 352,286 |
| 33,562 |
| NiSource Inc. |
| 1,178,237 |
| 32,731 |
| UGI Corp. |
| 544,960 |
| 29,706 |
| Aqua America Inc. |
| 663,492 |
| 25,916 |
| IDACORP Inc. |
| 158,193 |
| 15,664 |
| National Fuel Gas Co. |
| 251,795 |
| 14,909 |
| Portland General Electric Co. |
| 281,359 |
| 14,718 |
| ONE Gas Inc. |
| 163,343 |
| 14,459 |
| Hawaiian Electric Industries Inc. |
| 341,575 |
| 14,169 |
| Southwest Gas Holdings Inc. |
| 165,945 |
| 13,805 |
| New Jersey Resources Corp. |
| 273,967 |
| 13,720 |
| ALLETE Inc. |
| 161,900 |
| 13,187 |
| Spire Inc. |
| 154,697 |
| 13,024 |
| Black Hills Corp. |
| 168,188 |
| 12,237 |
| PNM Resources Inc. |
| 250,103 |
| 11,615 |
| NorthWestern Corp. |
| 157,627 |
| 11,010 |
| South Jersey Industries Inc. |
| 291,376 |
| 9,359 |
| Avangrid Inc. |
| 177,756 |
| 9,103 |
| Avista Corp. |
| 206,298 |
| 8,900 |
| El Paso Electric Co. |
| 126,329 |
| 7,720 |
| Pattern Energy Group Inc. Class A |
| 281,744 |
| 6,514 |
| Northwest Natural Holding Co. |
| 89,275 |
| 5,972 |
| Atlantica Yield plc |
| 184,425 |
| 3,779 |
| TerraForm Power Inc. Class A |
| 228,703 |
| 3,101 |
|
|
|
|
| 2,651,368 |
Total Common Stocks |
|
|
| 32,555,673 | |
Temporary Cash Investments (0.1%)1 |
|
|
|
| |
Money Market Fund (0.1%) |
|
|
|
| |
3,4 | Vanguard Market Liquidity Fund, 2.545% |
| 420,677 |
| 42,072 |
|
|
|
|
|
|
|
|
| Face | ) | Market Value* ($000) |
U.S. Government and Agency Obligations (0.0%) |
|
|
|
| |
5 | United States Treasury Bill, 2.479%, 5/9/19 |
| 1,500 |
| 1,499 |
5 | United States Treasury Bill, 2.497%, 5/23/19 |
| 1,000 |
| 999 |
5 | United States Treasury Bill, 2.501%, 5/30/19 |
| 700 |
| 699 |
|
|
|
|
| 3,197 |
Total Temporary Cash Investments |
|
|
| 45,269 | |
Total Investments (99.9%) |
|
|
| 32,600,942 | |
|
|
|
|
|
|
|
|
|
|
| Amount |
|
|
|
|
| ($000) |
Other Assets and Liabilities (0.1%) |
|
|
|
| |
Other Assets |
|
|
|
| |
Investment in Vanguard |
|
|
| 1,560 | |
Receivables for Accrued Income |
|
|
| 52,106 | |
Receivables for Capital Shares Issued |
|
|
| 5,533 | |
Variation Margin Receivable—Futures Contracts |
|
|
| 127 | |
Other Assets |
|
|
| 78 | |
Total Other Assets |
|
|
| 59,404 | |
Liabilities |
|
|
|
| |
Payables for Investment Securities Purchased |
|
|
| (16) | |
Collateral for Securities on Loan |
|
|
| (19,517) | |
Payables for Capital Shares Redeemed |
|
|
| (5,501) | |
Payables to Vanguard |
|
|
| (5,928) | |
Total Liabilities |
|
|
| (30,962) | |
Net Assets (100%) |
|
|
| 32,629,384 |
High Dividend Yield Index Fund
At April 30, 2019, net assets consisted of:
|
| Amount ($000) |
Paid-in Capital |
| 28,971,809 |
Total Distributable Earnings (Loss) |
| 3,657,575 |
Net Assets |
| 32,629,384 |
|
|
|
Investor Shares—Net Assets |
|
|
Applicable to 172,237,048 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 6,014,708 |
Net Asset Value Per Share—Investor Shares |
| $34.92 |
|
|
|
ETF Shares—Net Assets |
|
|
Applicable to 271,164,558 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 23,901,712 |
Net Asset Value Per Share—ETF Shares |
| $88.14 |
|
| Amount ($000) |
Admiral Shares—Net Assets |
|
|
Applicable to 102,081,149 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 2,712,964 |
Net Asset Value Per Share—Admiral Shares |
| $26.58 |
· | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
§ | Security value determined using significant unobservable inputs. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $18,012,000. |
1 | The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and -0.1%, respectively, of net assets. |
2 | “Other” represents securities that are not classified by the fund’s benchmark index. |
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 | Includes $19,517,000 of collateral received for securities on loan. |
5 | Securities with a value of $3,007,000 have been segregated as initial margin for open futures contracts. CVR—Contingent Value Rights. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts |
|
|
|
|
|
|
|
|
|
| ($000) |
| Expiration | Number of Long (Short) Contracts |
| Notional | Value and Unrealized Appreciation (Depreciation) |
Long Futures Contracts |
|
|
|
|
|
E-mini S&P 500 Index | June 2019 | 453 |
| 66,784 | 2,911 |
See accompanying Notes, which are an integral part of the Financial Statements.
High Dividend Yield Index Fund
Statement of Operations
|
| Six Months Ended |
|
|
| ($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Dividends |
| 531,898 |
|
Interests |
| 271 |
|
Securities Lending—Net |
| 928 |
|
Total Income |
| 533,097 |
|
Expenses |
|
|
|
The Vanguard Group—Note B |
|
|
|
Investment Advisory Services |
| 1,580 |
|
Management and Administrative—Investor Shares |
| 4,187 |
|
Management and Administrative—ETF Shares |
| 4,586 |
|
Management and Administrative—Admiral Shares |
| 241 |
|
Marketing and Distribution—Investor Shares |
| 471 |
|
Marketing and Distribution—ETF Shares |
| 489 |
|
Marketing and Distribution—Admiral Shares |
| 11 |
|
Custodian Fees |
| 252 |
|
Shareholders’ Reports—Investor Shares |
| 45 |
|
Shareholders’ Reports—ETF Shares |
| 237 |
|
Shareholders’ Reports—Admiral Shares |
| — |
|
Trustees’ Fees and Expenses |
| 6 |
|
Total Expenses |
| 12,105 |
|
Net Investment Income |
| 520,992 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold1,2 |
| 718,623 |
|
Futures Contracts |
| (1,877 | ) |
Realized Net Gain (Loss) |
| 716,746 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities1 |
| 1,065,161 |
|
Futures Contracts |
| 7,853 |
|
Change in Unrealized Appreciation (Depreciation) |
| 1,073,014 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 2,310,752 |
|
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $204,000, $26,000, and $1,000, respectively.
2 Includes $1,169,925,000 of net gain (loss) resulting from in-kind redemptions; such gain (loss) is not taxable to the fund.
See accompanying Notes, which are an integral part of the Financial Statements.
High Dividend Yield Index Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
| Year Ended |
|
|
| ($000 | ) | ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
|
Operations |
|
|
|
|
|
Net Investment Income |
| 520,992 |
| 896,721 |
|
Realized Net Gain (Loss) |
| 716,746 |
| 2,076,558 |
|
Change in Unrealized Appreciation (Depreciation) |
| 1,073,014 |
| (1,857,134 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 2,310,752 |
| 1,116,145 |
|
Distributions |
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
Investor Shares |
| (118,710 | ) | (235,382 | ) |
ETF Shares |
| (378,539 | ) | (640,458 | ) |
Admiral Shares |
| (13,136 | ) | — |
|
Realized Capital Gain |
|
|
|
|
|
Investor Shares |
| — |
| — |
|
ETF Shares |
| — |
| — |
|
Admiral Shares |
| — |
| — |
|
Total Distributions |
| (510,385 | ) | (875,840 | ) |
Capital Share Transactions |
|
|
|
|
|
Investor Shares |
| (2,393,256 | ) | 350,836 |
|
ETF Shares |
| 1,261,859 |
| 1,139,552 |
|
Admiral Shares |
| 2,629,476 |
| — |
|
Net Increase (Decrease) from Capital Share Transactions |
| 1,498,079 |
| 1,490,388 |
|
Total Increase (Decrease) |
| 3,298,446 |
| 1,730,693 |
|
Net Assets |
|
|
|
|
|
Beginning of Period |
| 29,330,938 |
| 27,600,245 |
|
End of Period |
| 32,629,384 |
| 29,330,938 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
High Dividend Yield Index Fund
Financial Highlights
Investor Shares
For a Share Outstanding |
| Six Months Ended April 30, |
| Year Ended October 31, |
| ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $32.98 |
| $32.67 |
| $28.20 |
| $26.89 |
| $26.98 |
| $23.83 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .563 | 1 | 1.011 | 1 | .927 | 1 | .854 |
| .815 |
| .727 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 1.914 |
| .284 |
| 4.472 |
| 1.286 |
| (.088 | ) | 3.147 |
|
Total from Investment Operations |
| 2.477 |
| 1.295 |
| 5.399 |
| 2.140 |
| .727 |
| 3.874 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.537 | ) | (.985 | ) | (.929 | ) | (.830 | ) | (.817 | ) | (.724 | ) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
|
Total Distributions |
| (.537 | ) | (.985 | ) | (.929 | ) | (.830 | ) | (.817 | ) | (.724 | ) |
Net Asset Value, End of Period |
| $34.92 |
| $32.98 |
| $32.67 |
| $28.20 |
| $26.89 |
| $26.98 |
|
Total Return2 |
| 7.69% |
| 3.96% |
| 19.37% |
| 8.11% |
| 2.78% |
| 16.48% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $6,015 |
| $8,003 |
| $7,590 |
| $5,879 |
| $4,368 |
| $4,066 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.14% |
| 0.14% |
| 0.15% |
| 0.15% |
| 0.16% |
| 0.18% |
|
Ratio of Net Investment Income to Average Net Assets |
| 3.27% |
| 3.00% |
| 3.00% |
| 3.19% |
| 3.06% |
| 2.92% |
|
Portfolio Turnover Rate3 |
| 11% |
| 13% |
| 9% |
| 7% |
| 11% |
| 12% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
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 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.
High Dividend Yield Index Fund
Financial Highlights
ETF Shares
For a Share Outstanding |
| Six Months Ended April 30, |
| Year Ended October 31, |
| ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $83.26 |
| $82.46 |
| $71.19 |
| $67.88 |
| $68.11 |
| $60.16 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| 1.437 | 1 | 2.623 | 1 | 2.394 | 1 | 2.203 |
| 2.104 |
| 1.885 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 4.833 |
| .731 |
| 11.301 |
| 3.245 |
| (.222 | ) | 7.943 |
|
Total from Investment Operations |
| 6.270 |
| 3.354 |
| 13.695 |
| 5.448 |
| 1.882 |
| 9.828 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (1.390 | ) | (2.554 | ) | (2.425 | ) | (2.138 | ) | (2.112 | ) | (1.878 | ) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
|
Total Distributions |
| (1.390 | ) | (2.554 | ) | (2.425 | ) | (2.138 | ) | (2.112 | ) | (1.878 | ) |
Net Asset Value, End of Period |
| $88.14 |
| $83.26 |
| $82.46 |
| $71.19 |
| $67.88 |
| $68.11 |
|
Total Return |
| 7.75% |
| 4.05% |
| 19.46% |
| 8.18% |
| 2.84% |
| 16.56% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $23,902 |
| $21,328 |
| $20,010 |
| $15,497 |
| $11,214 |
| $9,782 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.06% |
| 0.06% |
| 0.08% |
| 0.08% |
| 0.09% |
| 0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
| 3.35% |
| 3.08% |
| 3.07% |
| 3.26% |
| 3.13% |
| 3.00% |
|
Portfolio Turnover Rate2 |
| 11% |
| 13% |
| 9% |
| 7% |
| 11% |
| 12% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 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.
High Dividend Yield Index Fund
Financial Highlights
Admiral Shares
For a Share Outstanding Throughout the Period |
| February 7, 20191 to |
|
Net Asset Value, Beginning of Period |
| $25.00 |
|
Investment Operations |
|
|
|
Net Investment Income2 |
| .176 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 1.597 |
|
Total from Investment Operations |
| 1.773 |
|
Distributions |
|
|
|
Dividends from Net Investment Income |
| (.193 | ) |
Distributions from Realized Capital Gains |
| — |
|
Total Distributions |
| (.193 | ) |
Net Asset Value, End of Period |
| $26.58 |
|
Total Return3 |
| 7.12% |
|
Ratios/Supplemental Data |
|
|
|
Net Assets, End of Period (Millions) |
| $2,713 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.08% |
|
Ratio of Net Investment Income to Average Net Assets |
| 3.33% |
|
Portfolio Turnover Rate4 |
| 11% |
|
The expense ratio, net investment income ratio, and turnover rate for the period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Total returns do not include account service fees that may have applied in the period shown. Fund prospectuses provide information about any applicable account service fees.
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.
See accompanying Notes, which are an integral part of the Financial Statements.
High Dividend Yield Index Fund
Notes to Financial Statements
Vanguard High Dividend Yield Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers three classes of shares: Investor 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; they can be purchased and sold through a broker. Admiral Shares were issued on February 7, 2019.
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 materially 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 board of trustees to represent fair value. 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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets 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 futures gains (losses).
High Dividend Yield Index Fund
During the six months ended April 30, 2019, 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. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015-2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 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 counter-party’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 Net Assets for the return of the collateral, during the period the securities are on loan. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
High Dividend Yield Index Fund
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $1,560,000, representing 0.00% of the fund’s net assets and 0.62% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
C. 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 Statement of Net Assets.
High Dividend Yield Index Fund
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
Investments |
| Level 1 | ) | Level 2 | ) | Level 3 | ) |
Common Stocks |
| 32,555,640 |
| — |
| 33 |
|
Temporary Cash Investments |
| 42,072 |
| 3,197 |
| — |
|
Futures Contracts—Assets1 |
| 127 |
| — |
| — |
|
Total |
| 32,597,839 |
| 3,197 |
| 33 |
|
1 Represents variation margin on the last day of the reporting period.
D. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount | ) |
Tax Cost |
| 28,080,884 |
|
Gross Unrealized Appreciation |
| 5,660,268 |
|
Gross Unrealized Depreciation |
| (1,137,299 | ) |
Net Unrealized Appreciation (Depreciation) |
| 4,522,969 |
|
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2018, the fund had available capital losses totaling $498,700,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending October 31, 2019; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
E. During the six months ended April 30, 2019, the fund purchased $6,352,342,000 of investment securities and sold $4,833,985,000 of investment securities, other than temporary cash investments. Purchases and sales include $3,917,183,000 and $3,104,528,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
High Dividend Yield Index Fund
F. Capital share transactions for each class of shares were:
|
| Six Months Ended April 30, 2019 |
| Year Ended October 31, 2018 |
| ||||
|
| Amount ($000 | ) | Shares (000 | ) | Amount ($000 | ) | Shares (000 | ) |
Investor Shares |
|
|
|
|
|
|
|
|
|
Issued |
| 666,551 |
| 20,390 |
| 1,640,168 |
| 48,448 |
|
Issued in Lieu of Cash Distributions |
| 96,436 |
| 3,067 |
| 189,358 |
| 5,676 |
|
Redeemed |
| (3,156,243 | ) | (93,853 | ) | (1,478,690 | ) | (43,829 | ) |
Net Increase (Decrease)—Investor Shares |
| (2,393,256 | ) | (70,396 | ) | 350,836 |
| 10,295 |
|
ETF Shares |
|
|
|
|
|
|
|
|
|
Issued |
| 4,372,480 |
| 52,333 |
| 7,116,592 |
| 83,559 |
|
Issued in Lieu of Cash Distributions |
| — |
| — |
| — |
| — |
|
Redeemed |
| (3,110,621 | ) | (37,325 | ) | (5,977,040 | ) | (70,075 | ) |
Net Increase (Decrease)—ETF Shares |
| 1,261,859 |
| 15,008 |
| 1,139,552 |
| 13,484 |
|
Admiral Shares1 |
|
|
|
|
|
|
|
|
|
Issued |
| 2,741,018 |
| 106,358 |
| — |
| — |
|
Issued in Lieu of Cash Distributions |
| 7,837 |
| 307 |
| — |
| — |
|
Redeemed |
| (119,379 | ) | (4,584 | ) | — |
| — |
|
Net Increase (Decrease)—Admiral Shares |
| 2,629,476 |
| 102,081 |
| — |
| — |
|
1 Inception was February 7, 2019, for Admiral Shares.
G. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangement
The board of trustees of Vanguard High Dividend Yield Index Fund has renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity Index Group. The board determined that continuing the fund’s internalized management structure 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 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 Vanguard has been managing investments for more than four decades. The Equity Index Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’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 its target 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 well below the average expense ratio charged by funds in its peer group and that the fund’s advisory expenses were also well below the peer-group average.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The board concluded that the fund’s arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining 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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| |
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > 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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. All rights reserved. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636. Vanguard Marketing Corporation, Distributor.
Q6232 062019 |
Semiannual Report | April 30, 2019
Vanguard Emerging Markets Government Bond Index Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents
|
|
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 38 |
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 April 30, 2019
Emerging Markets Government Bond Index |
| Beginning |
| Ending |
| Expenses |
Based on Actual Fund Return |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,071.06 |
| $2.52 |
ETF Shares |
| 1,000.00 |
| 1,072.05 |
| 1.49 |
AdmiralTM Shares |
| 1,000.00 |
| 1,072.03 |
| 1.49 |
Institutional Shares |
| 1,000.00 |
| 1,072.01 |
| 1.44 |
Based on Hypothetical 5% Yearly Return |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,022.36 |
| $2.46 |
ETF Shares |
| 1,000.00 |
| 1,023.37 |
| 1.45 |
Admiral Shares |
| 1,000.00 |
| 1,023.36 |
| 1.45 |
Institutional Shares |
| 1,000.00 |
| 1,023.43 |
| 1.40 |
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 0.49% for Investor Shares, 0.29% for ETF Shares, 0.29% for Admiral Shares, and 0.28% for Institutional 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 (181/365).
Emerging Markets Government Bond Index Fund
Sector Diversification
As of April 30, 2019
Foreign |
| 100.0% |
Emerging Markets Government Bond Index Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
|
| Face | Market |
|
|
| Maturity | Amount | Value· |
|
| Coupon | Date | ($000) | ($000) |
Angola (0.6%) |
|
|
|
| |
Sovereign Bonds (0.6%) |
|
|
|
| |
| Republic of Angola | 9.500% | 11/12/25 | 2,350 | 2,633 |
| Republic of Angola | 8.250% | 5/9/28 | 2,800 | 2,928 |
1 | Republic of Angola | 8.250% | 5/9/28 | 200 | 209 |
| Republic of Angola | 9.375% | 5/8/48 | 1,100 | 1,181 |
1 | Republic of Angola | 9.375% | 5/8/48 | 1,600 | 1,721 |
Total Angola (Cost $8,367) |
|
|
| 8,672 | |
Argentina (3.6%) |
|
|
|
| |
Sovereign Bonds (3.6%) |
|
|
|
| |
| Argentine Republic | 6.875% | 4/22/21 | 2,455 | 2,059 |
| Argentine Republic | 6.875% | 4/22/21 | 3,875 | 3,258 |
| Argentine Republic | 5.625% | 1/26/22 | 4,350 | 3,402 |
| Argentine Republic | 4.625% | 1/11/23 | 2,000 | 1,473 |
| Argentine Republic | 7.500% | 4/22/26 | 7,275 | 5,465 |
| Argentine Republic | 6.875% | 1/26/27 | 4,950 | 3,564 |
| Argentine Republic | 5.875% | 1/11/28 | 3,915 | 2,701 |
| Argentine Republic | 6.625% | 7/6/28 | 1,456 | 1,023 |
2 | Argentine Republic | 8.280% | 12/31/33 | 1,678 | 1,213 |
| Argentine Republic | 8.280% | 12/31/33 | 7,500 | 5,475 |
| Argentine Republic | 7.125% | 7/6/36 | 2,315 | 1,589 |
2 | Argentine Republic | 3.750% | 12/31/38 | 10,594 | 5,562 |
| Argentine Republic | 7.625% | 4/22/46 | 2,500 | 1,734 |
| Argentine Republic | 6.875% | 1/11/48 | 6,600 | 4,373 |
| Argentine Republic | 7.125% | 6/28/17 | 3,625 | 2,415 |
2 | City of Buenos Aires | 8.950% | 2/19/21 | 134 | 128 |
1,2 | City of Buenos Aires | 7.500% | 6/1/27 | 1,000 | 826 |
2 | Provincia de Buenos Aires | 10.875% | 1/26/21 | 627 | 563 |
1,2 | Provincia de Buenos Aires | 9.950% | 6/9/21 | 800 | 681 |
2 | Provincia de Buenos Aires | 9.125% | 3/16/24 | 1,000 | 754 |
2 | Provincia de Buenos Aires | 7.875% | 6/15/27 | 2,000 | 1,332 |
| Provincia de Cordoba | 7.125% | 6/10/21 | 300 | 240 |
1 | Provincia de Cordoba | 7.125% | 8/1/27 | 550 | 375 |
2 | Provincia de Mondoza Argentina | 8.375% | 5/19/24 | 550 | 410 |
2 | Provincia del Chubut Argentina | 7.750% | 7/26/26 | 500 | 394 |
2 | YPF SA | 8.750% | 4/4/24 | 1,620 | 1,557 |
| YPF SA | 8.500% | 7/28/25 | 1,787 | 1,642 |
1 | YPF SA | 7.000% | 12/15/47 | 875 | 670 |
Total Argentina (Cost $67,441) |
|
|
| 54,878 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity Date | Face Amount ($000) | Market Value· ($000) |
Armenia (0.1%) |
|
|
|
| |
Sovereign Bonds (0.1%) |
|
|
|
| |
| Republic of Armenia | 6.000% | 9/30/20 | 200 | 205 |
1 | Republic of Armenia | 6.000% | 9/30/20 | 200 | 204 |
| Republic of Armenia | 7.150% | 3/26/25 | 700 | 780 |
Total Armenia (Cost $1,131) |
|
|
| 1,189 | |
Azerbaijan (0.5%) |
|
|
|
| |
Sovereign Bonds (0.5%) |
|
|
|
| |
1 | Republic of Azerbaijan | 4.750% | 3/18/24 | 400 | 414 |
| Republic of Azerbaijan | 4.750% | 3/18/24 | 800 | 825 |
1,2 | Republic of Azerbaijan | 3.500% | 9/1/32 | 1,100 | 985 |
3 | Southern Gas Corridor CJSC | 6.875% | 3/24/26 | 2,600 | 2,938 |
| State Oil Co. of the Azerbaijan Republic | 4.750% | 3/13/23 | 1,000 | 1,024 |
| State Oil Co. of the Azerbaijan Republic | 6.950% | 3/18/30 | 700 | 796 |
Total Azerbaijan (Cost $6,650) |
|
|
| 6,982 | |
Bahamas (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
1,2 | Commonwealth of the Bahamas | 6.000% | 11/21/28 | 850 | 903 |
Total Bahamas (Cost $850) |
|
|
| 903 | |
Bahrain (1.3%) |
|
|
|
| |
Sovereign Bonds (1.3%) |
|
|
|
| |
| Bahrain Mumtalakat Holding Co. BSC | 4.000% | 11/25/21 | 250 | 244 |
| Batelco International Finance No 1 Ltd. | 4.250% | 5/1/20 | 600 | 599 |
| CBB International Sukuk Co. 5 Spc | 5.624% | 2/12/24 | 1,550 | 1,608 |
| CBB International Sukuk Co. 6 Spc | 5.250% | 3/20/25 | 400 | 405 |
| CBB International Sukuk Co. 7 SPC | 6.875% | 10/5/25 | 800 | 873 |
| Kingdom of Bahrain | 5.875% | 1/26/21 | 200 | 203 |
1 | Kingdom of Bahrain | 6.125% | 7/5/22 | 1,200 | 1,241 |
| Kingdom of Bahrain | 6.125% | 8/1/23 | 1,425 | 1,487 |
1 | Kingdom of Bahrain | 6.125% | 8/1/23 | 150 | 156 |
1 | Kingdom of Bahrain | 7.000% | 1/26/26 | 2,200 | 2,365 |
| Kingdom of Bahrain | 7.000% | 1/26/26 | 1,550 | 1,671 |
| Kingdom of Bahrain | 7.000% | 10/12/28 | 2,200 | 2,380 |
| Kingdom of Bahrain | 6.750% | 9/20/29 | 2,000 | 2,123 |
1 | Kingdom of Bahrain | 6.750% | 9/20/29 | 800 | 849 |
| Kingdom of Bahrain | 6.000% | 9/19/44 | 600 | 564 |
1 | Kingdom of Bahrain | 6.000% | 9/19/44 | 1,050 | 983 |
| Kingdom of Bahrain | 7.500% | 9/20/47 | 200 | 214 |
| Oil and Gas Holding Co. BSCC | 7.500% | 10/25/27 | 700 | 746 |
1 | Oil and Gas Holding Co. BSCC | 7.500% | 10/25/27 | 1,200 | 1,279 |
| Oil and Gas Holding Co. BSCC | 8.375% | 11/7/28 | 500 | 564 |
Total Bahrain (Cost $19,961) |
|
|
| 20,554 | |
Belarus (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Republic of Belarus | 6.875% | 2/28/23 | 800 | 837 |
| Republic of Belarus | 7.625% | 6/29/27 | 1,050 | 1,131 |
| Republic of Belarus | 6.200% | 2/28/30 | 1,000 | 986 |
Total Belarus (Cost $2,943) |
|
|
| 2,954 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity Date | Face Amount ($000) | Market Value· ($000) |
Belize (0.0%) |
|
|
|
| |
Sovereign Bond (0.0%) |
|
|
|
| |
2 | Belize | 4.938% | 2/20/34 | 550 | 330 |
Total Belize (Cost $374) |
|
|
| 330 | |
Bermuda (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
2 | Bermuda | 3.717% | 1/25/27 | 1,550 | 1,557 |
1,2 | Bermuda | 4.750% | 2/15/29 | 800 | 861 |
Total Bermuda (Cost $2,338) |
|
|
| 2,418 | |
Bolivia (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Plurinational State of Bolivia | 4.875% | 10/29/22 | 400 | 403 |
| Plurinational State of Bolivia | 5.950% | 8/22/23 | 800 | 836 |
1,2 | Plurinational State of Bolivia | 4.500% | 3/20/28 | 1,600 | 1,498 |
Total Bolivia (Cost $2,809) |
|
|
| 2,737 | |
Brazil (6.9%) |
|
|
|
| |
Sovereign Bonds (6.9%) |
|
|
|
| |
| Banco do Brasil SA | 5.375% | 1/15/21 | 375 | 385 |
| Banco do Brasil SA | 5.875% | 1/26/22 | 1,875 | 1,955 |
| Banco do Brasil SA | 3.875% | 10/10/22 | 1,726 | 1,715 |
1 | Banco do Brasil SA | 4.875% | 4/19/23 | 800 | 822 |
| Banco do Brasil SA | 4.625% | 1/15/25 | 600 | 607 |
2 | Banco do Brasil SA | 8.500% | 10/29/49 | 425 | 452 |
1 | Banco Nacional de Desenvolvimento Economico e Social | 5.500% | 7/12/20 | 200 | 206 |
| Banco Nacional de Desenvolvimento Economico e Social | 5.500% | 7/12/20 | 600 | 619 |
| Banco Nacional de Desenvolvimento Economico e Social | 5.750% | 9/26/23 | 1,000 | 1,079 |
| Caixa Economica Federal | 3.500% | 11/7/22 | 350 | 347 |
| Cemig Geracao e Transmissao SA | 9.250% | 12/5/24 | 2,300 | 2,529 |
| Centrais Eletricas Brasileiras SA | 5.750% | 10/27/21 | 1,600 | 1,660 |
| Federative Republic of Brazil | 4.875% | 1/22/21 | 3,317 | 3,412 |
| Federative Republic of Brazil | 2.625% | 1/5/23 | 3,861 | 3,736 |
| Federative Republic of Brazil | 8.875% | 4/15/24 | 1,425 | 1,769 |
| Federative Republic of Brazil | 4.250% | 1/7/25 | 4,372 | 4,421 |
| Federative Republic of Brazil | 8.750% | 2/4/25 | 500 | 623 |
| Federative Republic of Brazil | 6.000% | 4/7/26 | 4,230 | 4,664 |
| Federative Republic of Brazil | 10.125% | 5/15/27 | 466 | 641 |
2 | Federative Republic of Brazil | 4.625% | 1/13/28 | 5,252 | 5,266 |
2 | Federative Republic of Brazil | 4.500% | 5/30/29 | 3,000 | 2,924 |
| Federative Republic of Brazil | 8.250% | 1/20/34 | 1,625 | 2,062 |
| Federative Republic of Brazil | 7.125% | 1/20/37 | 2,095 | 2,454 |
| Federative Republic of Brazil | 5.625% | 1/7/41 | 4,726 | 4,708 |
| Federative Republic of Brazil | 5.000% | 1/27/45 | 5,536 | 5,037 |
| Federative Republic of Brazil | 5.625% | 2/21/47 | 4,740 | 4,651 |
| Petrobras Global Finance BV | 8.375% | 5/23/21 | 806 | 884 |
| Petrobras Global Finance BV | 6.125% | 1/17/22 | 1,622 | 1,719 |
| Petrobras Global Finance BV | 4.375% | 5/20/23 | 3,550 | 3,586 |
| Petrobras Global Finance BV | 6.250% | 3/17/24 | 2,925 | 3,148 |
| Petrobras Global Finance BV | 5.299% | 1/27/25 | 3,609 | 3,708 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Petrobras Global Finance BV | 8.750% | 5/23/26 | 3,348 | 4,001 |
| Petrobras Global Finance BV | 7.375% | 1/17/27 | 5,320 | 5,919 |
| Petrobras Global Finance BV | 5.999% | 1/27/28 | 7,158 | 7,319 |
| Petrobras Global Finance BV | 5.750% | 2/1/29 | 4,000 | 4,000 |
| Petrobras Global Finance BV | 6.875% | 1/20/40 | 1,403 | 1,440 |
| Petrobras Global Finance BV | 6.750% | 1/27/41 | 500 | 508 |
| Petrobras Global Finance BV | 7.250% | 3/17/44 | 2,385 | 2,519 |
| Petrobras Global Finance BV | 6.900% | 3/19/49 | 3,650 | 3,644 |
| Petrobras Global Finance BV | 6.850% | 6/5/15 | 3,775 | 3,690 |
| Petrobras International Finance Co. SA | 5.375% | 1/27/21 | 1,310 | 1,349 |
Total Brazil (Cost $100,749) |
|
|
| 106,178 | |
Cameroon (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
2 | Republic of Cameroon | 9.500% | 11/19/25 | 1,150 | 1,231 |
Total Cameroon (Cost $1,192) |
|
|
| 1,231 | |
Chile (1.2%) |
|
|
|
| |
Sovereign Bonds (1.2%) |
|
|
|
| |
1 | Banco del Estado de Chile | 4.125% | 10/7/20 | 400 | 406 |
1 | Banco del Estado de Chile | 2.668% | 1/8/21 | 400 | 397 |
1 | Banco del Estado de Chile | 3.875% | 2/8/22 | 725 | 739 |
1 | Corp. Nacional del Cobre de Chile | 4.500% | 8/13/23 | 150 | 158 |
1 | Corp. Nacional del Cobre de Chile | 3.625% | 8/1/27 | 800 | 801 |
| Corp. Nacional del Cobre de Chile | 3.625% | 8/1/27 | 1,500 | 1,502 |
1 | Corp. Nacional del Cobre de Chile | 5.625% | 9/21/35 | 300 | 348 |
1 | Corp. Nacional del Cobre de Chile | 5.625% | 10/18/43 | 200 | 238 |
1 | Corp. Nacional del Cobre de Chile | 4.875% | 11/4/44 | 400 | 431 |
| Corp. Nacional del Cobre de Chile | 4.875% | 11/4/44 | 900 | 969 |
1 | Empresa de Transporte de Pasajeros Metro SA | 4.750% | 2/4/24 | 200 | 211 |
1 | Empresa de Transporte de Pasajeros Metro SA | 5.000% | 1/25/47 | 400 | 425 |
1 | Empresa Nacional del Petroleo | 4.750% | 12/6/21 | 536 | 551 |
| Empresa Nacional del Petroleo | 4.375% | 10/30/24 | 500 | 515 |
| Empresa Nacional del Petroleo | 3.750% | 8/5/26 | 890 | 885 |
1 | Empresa Nacional del Petroleo | 4.500% | 9/14/47 | 800 | 763 |
| Republic of Chile | 3.875% | 8/5/20 | 425 | 433 |
| Republic of Chile | 2.250% | 10/30/22 | 2,000 | 1,978 |
| Republic of Chile | 3.125% | 3/27/25 | 850 | 857 |
| Republic of Chile | 3.125% | 1/21/26 | 1,290 | 1,295 |
2 | Republic of Chile | 3.240% | 2/6/28 | 2,550 | 2,562 |
| Republic of Chile | 3.860% | 6/21/47 | 2,250 | 2,253 |
Total Chile (Cost $18,248) |
|
|
| 18,717 | |
China (5.1%) |
|
|
|
| |
Sovereign Bonds (5.1%) |
|
|
|
| |
| Avi Funding Co. Ltd. | 3.800% | 9/16/25 | 1,000 | 1,016 |
1 | Bank of China Ltd. | 5.000% | 11/13/24 | 1,000 | 1,059 |
| Bank of China Ltd. | 5.000% | 11/13/24 | 3,650 | 3,865 |
| China Cinda Finance 2015 I Ltd. | 4.250% | 4/23/25 | 2,500 | 2,551 |
2 | China Construction Bank Corp. | 3.875% | 5/13/25 | 3,175 | 3,188 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| China Development Bank | 2.500% | 10/9/20 | 2,500 | 2,489 |
| Chinalco Capital Holdings Ltd. | 4.000% | 8/25/21 | 1,300 | 1,290 |
| CNAC HK Finbridge Co. Ltd. | 3.000% | 7/19/20 | 250 | 249 |
| CNAC HK Finbridge Co. Ltd. | 4.125% | 3/14/21 | 2,200 | 2,229 |
| CNAC HK Finbridge Co. Ltd. | 3.500% | 7/19/22 | 2,898 | 2,903 |
| CNAC HK Finbridge Co. Ltd. | 4.125% | 7/19/27 | 1,580 | 1,585 |
| CNAC HK Finbridge Co. Ltd. | 5.125% | 3/14/28 | 1,250 | 1,343 |
1 | CNOOC Curtis Funding No 1 Pty Ltd. | 4.500% | 10/3/23 | 300 | 315 |
| CNOOC Curtis Funding No 1 Pty Ltd. | 4.500% | 10/3/23 | 3,914 | 4,116 |
1 | CNOOC Finance 2011 Ltd. | 4.250% | 1/26/21 | 2,288 | 2,331 |
1 | CNOOC Finance 2012 Ltd. | 3.875% | 5/2/22 | 1,400 | 1,428 |
| CNOOC Finance 2013 Ltd. | 3.000% | 5/9/23 | 1,050 | 1,038 |
| CNOOC Finance 2015 Australia Pty Ltd. | 2.625% | 5/5/20 | 1,850 | 1,843 |
| CNOOC Finance 2015 USA LLC | 3.500% | 5/5/25 | 1,300 | 1,306 |
| CNOOC Finance 2015 USA LLC | 4.375% | 5/2/28 | 1,200 | 1,270 |
| CNOOC Nexen Finance 2014 ULC | 4.250% | 4/30/24 | 2,160 | 2,252 |
2 | Dianjian Haixing Ltd. | 4.050% | 10/29/49 | 200 | 200 |
| Export-Import Bank of China | 3.625% | 7/31/24 | 1,482 | 1,512 |
| Franshion Brilliant Ltd. | 5.750% | 12/31/49 | 500 | 478 |
| Huarong Finance II Co. Ltd. | 3.625% | 11/22/21 | 1,250 | 1,251 |
2 | Huarong Finance II Co. Ltd. | 2.875% | 12/31/49 | 1,200 | 1,158 |
| Industrial & Commercial Bank of China Ltd. | 4.875% | 9/21/25 | 2,750 | 2,913 |
| People’s Republic of China | 2.125% | 11/2/22 | 1,600 | 1,571 |
| People’s Republic of China | 3.250% | 10/19/23 | 2,300 | 2,355 |
| People’s Republic of China | 2.625% | 11/2/27 | 1,951 | 1,895 |
| People’s Republic of China | 3.500% | 10/19/28 | 900 | 938 |
| People’s Republic of China | 4.000% | 10/19/48 | 900 | 927 |
2 | Sino-Ocean Land Treasure III Ltd. | 4.900% | 12/31/49 | 800 | 704 |
| Sinochem Overseas Capital Co. Ltd. | 4.500% | 11/12/20 | 800 | 818 |
1 | Sinochem Overseas Capital Co. Ltd. | 4.500% | 11/12/20 | 1,575 | 1,607 |
1 | Sinochem Overseas Capital Co. Ltd. | 6.300% | 11/12/40 | 450 | 558 |
| Sinopec Group Overseas Development 2012 Ltd. | 3.900% | 5/17/22 | 907 | 927 |
1 | Sinopec Group Overseas Development 2012 Ltd. | 3.900% | 5/17/22 | 1,369 | 1,399 |
| Sinopec Group Overseas Development 2013 Ltd. | 4.375% | 10/17/23 | 2,025 | 2,119 |
| Sinopec Group Overseas Development 2014 Ltd. | 4.375% | 4/10/24 | 300 | 314 |
| Sinopec Group Overseas Development 2015 Ltd. | 3.250% | 4/28/25 | 2,300 | 2,283 |
| State Grid Overseas Investment 2013 Ltd. | 3.125% | 5/22/23 | 2,046 | 2,049 |
| State Grid Overseas Investment 2014 Ltd. | 4.125% | 5/7/24 | 2,870 | 2,993 |
1 | State Grid Overseas Investment 2014 Ltd. | 4.125% | 5/7/24 | 200 | 209 |
| State Grid Overseas Investment 2016 Ltd. | 3.750% | 5/2/23 | 1,200 | 1,229 |
1 | State Grid Overseas Investment 2016 Ltd. | 3.500% | 5/4/27 | 1,200 | 1,195 |
| State Grid Overseas Investment 2016 Ltd. | 3.500% | 5/4/27 | 2,200 | 2,194 |
| Tewoo Group No 4 Ltd. | 3.150% | 12/1/20 | 500 | 491 |
| Tsinghua Unic Ltd. | 4.750% | 1/31/21 | 1,250 | 1,227 |
| Tsinghua Unic Ltd. | 5.375% | 1/31/23 | 900 | 869 |
Total China (Cost $77,085) |
|
|
| 78,049 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
Colombia (2.9%) |
|
|
|
| |
Sovereign Bonds (2.9%) |
|
|
|
| |
| Ecopetrol SA | 5.875% | 9/18/23 | 2,085 | 2,267 |
| Ecopetrol SA | 4.125% | 1/16/25 | 1,050 | 1,057 |
| Ecopetrol SA | 5.375% | 6/26/26 | 1,720 | 1,838 |
| Ecopetrol SA | 7.375% | 9/18/43 | 1,238 | 1,492 |
| Ecopetrol SA | 5.875% | 5/28/45 | 1,830 | 1,887 |
| Oleoducto Central SA | 4.000% | 5/7/21 | 400 | 403 |
| Republic of Colombia | 4.375% | 7/12/21 | 3,009 | 3,096 |
2 | Republic of Colombia | 2.625% | 3/15/23 | 1,060 | 1,039 |
| Republic of Colombia | 4.000% | 2/26/24 | 2,145 | 2,207 |
| Republic of Colombia | 8.125% | 5/21/24 | 1,290 | 1,559 |
2 | Republic of Colombia | 4.500% | 1/28/26 | 1,800 | 1,897 |
2 | Republic of Colombia | 3.875% | 4/25/27 | 2,750 | 2,791 |
2 | Republic of Colombia | 4.500% | 3/15/29 | 2,500 | 2,634 |
| Republic of Colombia | 7.375% | 9/18/37 | 1,693 | 2,207 |
| Republic of Colombia | 6.125% | 1/18/41 | 3,782 | 4,451 |
2 | Republic of Colombia | 5.625% | 2/26/44 | 4,284 | 4,798 |
2 | Republic of Colombia | 5.000% | 6/15/45 | 6,650 | 6,941 |
| Republic of Colombia | 5.200% | 5/15/49 | 1,350 | 1,443 |
| Transportadora de Gas Internacional SA ESP | 5.550% | 11/1/28 | 200 | 219 |
Total Colombia (Cost $42,239) |
|
|
| 44,226 | |
Costa Rica (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
1 | Banco Nacional de Costa Rica | 5.875% | 4/25/21 | 347 | 350 |
| Banco Nacional de Costa Rica | 6.250% | 11/1/23 | 400 | 404 |
| Instituto Costarricense de Electricidad | 6.950% | 11/10/21 | 475 | 474 |
| Instituto Costarricense de Electricidad | 6.375% | 5/15/43 | 200 | 161 |
| Republic of Costa Rica | 4.250% | 1/26/23 | 1,082 | 1,037 |
| Republic of Costa Rica | 4.375% | 4/30/25 | 200 | 187 |
| Republic of Costa Rica | 5.625% | 4/30/43 | 1,300 | 1,104 |
| Republic of Costa Rica | 7.000% | 4/4/44 | 2,130 | 2,053 |
| Republic of Costa Rica | 7.158% | 3/12/45 | 300 | 292 |
Total Costa Rica (Cost $5,993) |
|
|
| 6,062 | |
Cote d’Ivoire (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
| Republic of Cote d’Ivoire | 5.375% | 7/23/24 | 750 | 730 |
2 | Republic of Cote d’Ivoire | 6.375% | 3/3/28 | 1,500 | 1,459 |
2 | Republic of Cote d’Ivoire | 5.750% | 12/31/32 | 1,289 | 1,217 |
1,2 | Republic of Cote d’Ivoire | 5.750% | 12/31/32 | 1,358 | 1,282 |
2 | Republic of Cote d’Ivoire | 6.125% | 6/15/33 | 2,150 | 1,960 |
Total Cote d’Ivoire (Cost $6,783) |
|
|
| 6,648 | |
Croatia (0.7%) |
|
|
|
| |
Sovereign Bonds (0.7%) |
|
|
|
| |
| Hrvatska Elektroprivreda | 5.875% | 10/23/22 | 500 | 537 |
| Republic of Croatia | 6.625% | 7/14/20 | 1,594 | 1,660 |
| Republic of Croatia | 6.375% | 3/24/21 | 2,200 | 2,330 |
| Republic of Croatia | 5.500% | 4/4/23 | 3,100 | 3,358 |
| Republic of Croatia | 6.000% | 1/26/24 | 1,935 | 2,168 |
Total Croatia (Cost $9,758) |
|
|
| 10,053 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
Dominican Republic (1.4%) |
|
|
|
| |
Sovereign Bonds (1.4%) |
|
|
| ||
2 | Dominican Republic | 7.500% | 5/6/21 | 2,302 | 2,379 |
�� | Dominican Republic | 6.600% | 1/28/24 | 1,075 | 1,163 |
2 | Dominican Republic | 5.875% | 4/18/24 | 1,050 | 1,096 |
| Dominican Republic | 5.500% | 1/27/25 | 2,660 | 2,749 |
| Dominican Republic | 6.875% | 1/29/26 | 1,295 | 1,431 |
| Dominican Republic | 5.950% | 1/25/27 | 2,000 | 2,107 |
| Dominican Republic | 6.000% | 7/19/28 | 2,069 | 2,181 |
1 | Dominican Republic | 6.000% | 7/19/28 | 1,400 | 1,475 |
| Dominican Republic | 7.450% | 4/30/44 | 1,450 | 1,643 |
1 | Dominican Republic | 6.850% | 1/27/45 | 870 | 928 |
2 | Dominican Republic | 6.850% | 1/27/45 | 2,819 | 3,021 |
1 | Dominican Republic | 6.500% | 2/15/48 | 1,650 | 1,708 |
Total Dominican Republic (Cost $21,487) |
|
|
| 21,881 | |
Ecuador (1.6%) |
|
|
|
| |
Sovereign Bonds (1.6%) |
|
|
|
| |
| Republic of Ecuador | 10.750% | 3/28/22 | 2,850 | 3,195 |
| Republic of Ecuador | 8.750% | 6/2/23 | 3,100 | 3,293 |
| Republic of Ecuador | 7.950% | 6/20/24 | 5,250 | 5,332 |
| Republic of Ecuador | 9.650% | 12/13/26 | 1,750 | 1,868 |
1 | Republic of Ecuador | 9.625% | 6/2/27 | 370 | 392 |
| Republic of Ecuador | 9.625% | 6/2/27 | 800 | 848 |
| Republic of Ecuador | 8.875% | 10/23/27 | 900 | 918 |
1 | Republic of Ecuador | 7.875% | 1/23/28 | 5,950 | 5,734 |
1 | Republic of Ecuador | 10.750% | 1/31/29 | 2,800 | 3,122 |
Total Ecuador (Cost $24,133) |
|
|
| 24,702 | |
Egypt (1.7%) |
|
|
|
| |
Sovereign Bonds (1.7%) |
|
|
|
| |
| Arab Republic of Egypt | 5.750% | 4/29/20 | 1,012 | 1,026 |
| Arab Republic of Egypt | 6.125% | 1/31/22 | 3,153 | 3,190 |
| Arab Republic of Egypt | 5.577% | 2/21/23 | 750 | 742 |
1 | Arab Republic of Egypt | 5.577% | 2/21/23 | 1,200 | 1,188 |
| Arab Republic of Egypt | 6.200% | 3/1/24 | 750 | 752 |
| Arab Republic of Egypt | 5.875% | 6/11/25 | 2,275 | 2,230 |
| Arab Republic of Egypt | 7.500% | 1/31/27 | 3,100 | 3,200 |
| Arab Republic of Egypt | 6.588% | 2/21/28 | 925 | 895 |
1 | Arab Republic of Egypt | 6.588% | 2/21/28 | 1,000 | 968 |
1 | Arab Republic of Egypt | 7.600% | 3/1/29 | 2,000 | 2,017 |
| Arab Republic of Egypt | 7.600% | 3/1/29 | 750 | 756 |
| Arab Republic of Egypt | 6.875% | 4/30/40 | 600 | 555 |
| Arab Republic of Egypt | 8.500% | 1/31/47 | 3,850 | 3,919 |
| Arab Republic of Egypt | 7.903% | 2/21/48 | 2,300 | 2,226 |
1 | Arab Republic of Egypt | 7.903% | 2/21/48 | 600 | 579 |
| Arab Republic of Egypt | 8.700% | 3/1/49 | 2,100 | 2,168 |
| Republic of Egypt | 5.577% | 2/21/23 | 750 | 742 |
Total Egypt (Cost $26,473) |
|
|
| 26,411 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
El Salvador (0.5%) |
|
|
|
| |
Sovereign Bonds (0.5%) |
|
|
|
| |
| Republic of El Salvador | 7.750% | 1/24/23 | 785 | 829 |
| Republic of El Salvador | 5.875% | 1/30/25 | 1,218 | 1,190 |
1 | Republic of El Salvador | 6.375% | 1/18/27 | 300 | 293 |
| Republic of El Salvador | 6.375% | 1/18/27 | 1,319 | 1,292 |
| Republic of El Salvador | 8.625% | 2/28/29 | 900 | 999 |
1 | Republic of El Salvador | 8.625% | 2/28/29 | 150 | 166 |
| Republic of El Salvador | 8.250% | 4/10/32 | 704 | 762 |
| Republic of El Salvador | 7.650% | 6/15/35 | 1,640 | 1,702 |
| Republic of El Salvador | 7.625% | 2/1/41 | 768 | 790 |
Total El Salvador (Cost $7,674) |
|
|
| 8,023 | |
Ethiopia (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
| Federal Democratic Republic of Ethiopia | 6.625% | 12/11/24 | 1,350 | 1,384 |
Total Ethiopia (Cost $1,327) |
|
|
| 1,384 | |
Gabon (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
1,2 | Gabonese Republic | 6.375% | 12/12/24 | 400 | 386 |
2 | Gabonese Republic | 6.375% | 12/12/24 | 1,786 | 1,720 |
| Gabonese Republic | 6.950% | 6/16/25 | 1,050 | 1,022 |
Total Gabon (Cost $3,192) |
|
|
| 3,128 | |
Georgia (0.1%) |
|
|
|
| |
Sovereign Bonds (0.1%) |
|
|
|
| |
| Georgian Railway JSC | 7.750% | 7/11/22 | 900 | 966 |
| Republic of Georgia | 6.875% | 4/12/21 | 600 | 635 |
Total Georgia (Cost $1,576) |
|
|
| 1,601 | |
Ghana (0.8%) |
|
|
|
| |
Sovereign Bonds (0.8%) |
|
|
|
| |
1 | Republic of Ghana | 7.875% | 8/7/23 | 400 | 420 |
1,2 | Republic of Ghana | 8.125% | 1/18/26 | 300 | 310 |
2 | Republic of Ghana | 8.125% | 1/18/26 | 2,070 | 2,136 |
2 | Republic of Ghana | 7.875% | 3/26/27 | 500 | 507 |
1,2 | Republic of Ghana | 7.625% | 5/16/29 | 850 | 836 |
2 | Republic of Ghana | 7.625% | 5/16/29 | 2,600 | 2,557 |
2 | Republic of Ghana | 8.125% | 3/26/32 | 2,400 | 2,379 |
1,2 | Republic of Ghana | 8.627% | 6/16/49 | 800 | 768 |
2 | Republic of Ghana | 8.950% | 3/26/51 | 2,150 | 2,127 |
Total Ghana (Cost $12,025) |
|
|
| 12,040 | |
Guatemala (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Republic of Guatemala | 5.750% | 6/6/22 | 653 | 686 |
| Republic of Guatemala | 4.500% | 5/3/26 | 1,500 | 1,491 |
| Republic of Guatemala | 4.375% | 6/5/27 | 800 | 785 |
| Republic of Guatemala | 4.875% | 2/13/28 | 600 | 607 |
Total Guatemala (Cost $3,559) |
|
|
| 3,569 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
Honduras (0.1%) |
|
|
|
| |
Sovereign Bonds (0.1%) |
|
|
|
| |
| Republic of Honduras | 8.750% | 12/16/20 | 200 | 214 |
2 | Republic of Honduras | 7.500% | 3/15/24 | 800 | 875 |
| Republic of Honduras | 6.250% | 1/19/27 | 1,020 | 1,077 |
Total Honduras (Cost $2,084) |
|
|
| 2,166 | |
Hungary (1.2%) |
|
|
|
| |
Sovereign Bonds (1.2%) |
|
|
|
| |
1,4 | MFB Magyar Fejlesztesi Bank Zrt | 6.250% | 10/21/20 | 600 | 628 |
| MFB Magyar Fejlesztesi Bank Zrt | 6.250% | 10/21/20 | 200 | 209 |
| Republic of Hungary | 6.375% | 3/29/21 | 4,027 | 4,284 |
| Republic of Hungary | 5.375% | 2/21/23 | 2,962 | 3,199 |
| Republic of Hungary | 5.750% | 11/22/23 | 3,070 | 3,404 |
| Republic of Hungary | 5.375% | 3/25/24 | 3,075 | 3,384 |
| Republic of Hungary | 7.625% | 3/29/41 | 1,950 | 2,936 |
Total Hungary (Cost $17,605) |
|
|
| 18,044 | |
Indonesia (6.6%) |
|
|
|
| |
Sovereign Bonds (6.6%) |
|
|
|
| |
| Pertamina Persero PT | 4.875% | 5/3/22 | 750 | 778 |
| Pertamina Persero PT | 4.300% | 5/20/23 | 1,300 | 1,335 |
1 | Pertamina Persero PT | 4.300% | 5/20/23 | 430 | 441 |
| Pertamina Persero PT | 6.500% | 5/27/41 | 433 | 500 |
1 | Pertamina Persero PT | 5.625% | 5/20/43 | 200 | 208 |
| Pertamina Persero PT | 6.450% | 5/30/44 | 1,600 | 1,836 |
| Pertamina Persero PT | 6.500% | 11/7/48 | 400 | 466 |
1 | Perusahaan Listrik Negara PT | 4.125% | 5/15/27 | 1,450 | 1,425 |
| Perusahaan Listrik Negara PT | 5.450% | 5/21/28 | 400 | 428 |
1 | Perusahaan Listrik Negara PT | 5.250% | 10/24/42 | 300 | 297 |
5 | Perusahaan Penerbit SBSN Indonesia III | 3.400% | 3/29/21 | 1,200 | 1,206 |
| Perusahaan Penerbit SBSN Indonesia III | 3.400% | 3/29/22 | 1,500 | 1,504 |
| Perusahaan Penerbit SBSN Indonesia III | 3.300% | 11/21/22 | 378 | 379 |
5 | Perusahaan Penerbit SBSN Indonesia III | 3.750% | 3/1/23 | 2,000 | 2,025 |
1 | Perusahaan Penerbit SBSN Indonesia III | 3.750% | 3/1/23 | 800 | 810 |
5 | Perusahaan Penerbit SBSN Indonesia III | 3.900% | 8/20/24 | 450 | 457 |
1 | Perusahaan Penerbit SBSN Indonesia III | 4.350% | 9/10/24 | 600 | 621 |
| Perusahaan Penerbit SBSN Indonesia III | 4.350% | 9/10/24 | 2,450 | 2,536 |
5 | Perusahaan Penerbit SBSN Indonesia III | 4.325% | 5/28/25 | 3,069 | 3,169 |
| Perusahaan Penerbit SBSN Indonesia III | 4.550% | 3/29/26 | 2,685 | 2,802 |
5 | Perusahaan Penerbit SBSN Indonesia III | 4.150% | 3/29/27 | 3,050 | 3,100 |
5 | Perusahaan Penerbit SBSN Indonesia III | 4.400% | 3/1/28 | 1,200 | 1,237 |
1 | Perusahaan Penerbit SBSN Indonesia III | 4.400% | 3/1/28 | 1,500 | 1,547 |
1,5 | Perusahaan Penerbit SBSN Indonesia III | 4.450% | 2/20/29 | 1,000 | 1,032 |
5 | Perusahaan Penerbit SBSN Indonesia III | 4.450% | 2/20/29 | 600 | 619 |
| Republic of Indonesia | 4.875% | 5/5/21 | 4,600 | 4,757 |
| Republic of Indonesia | 3.700% | 1/8/22 | 2,250 | 2,283 |
| Republic of Indonesia | 3.750% | 4/25/22 | 1,950 | 1,981 |
| Republic of Indonesia | 3.375% | 4/15/23 | 3,500 | 3,518 |
| Republic of Indonesia | 5.375% | 10/17/23 | 2,359 | 2,561 |
| Republic of Indonesia | 5.875% | 1/15/24 | 2,850 | 3,157 |
| Republic of Indonesia | 4.450% | 2/11/24 | 900 | 938 |
1 | Republic of Indonesia | 4.125% | 1/15/25 | 200 | 206 |
| Republic of Indonesia | 4.125% | 1/15/25 | 2,330 | 2,406 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Republic of Indonesia | 4.750% | 1/8/26 | 3,450 | 3,670 |
| Republic of Indonesia | 4.350% | 1/8/27 | 2,300 | 2,391 |
1 | Republic of Indonesia | 3.850% | 7/18/27 | 1,000 | 1,006 |
| Republic of Indonesia | 3.850% | 7/18/27 | 500 | 504 |
| Republic of Indonesia | 3.500% | 1/11/28 | 1,986 | 1,952 |
| Republic of Indonesia | 4.100% | 4/24/28 | 1,550 | 1,585 |
| Republic of Indonesia | 4.750% | 2/11/29 | 1,950 | 2,088 |
| Republic of Indonesia | 8.500% | 10/12/35 | 2,440 | 3,515 |
| Republic of Indonesia | 6.625% | 2/17/37 | 2,287 | 2,841 |
| Republic of Indonesia | 7.750% | 1/17/38 | 3,088 | 4,276 |
| Republic of Indonesia | 5.250% | 1/17/42 | 1,600 | 1,737 |
| Republic of Indonesia | 5.250% | 1/17/42 | 1,750 | 1,900 |
| Republic of Indonesia | 4.625% | 4/15/43 | 2,175 | 2,209 |
1 | Republic of Indonesia | 6.750% | 1/15/44 | 100 | 130 |
| Republic of Indonesia | 6.750% | 1/15/44 | 3,150 | 4,086 |
| Republic of Indonesia | 5.125% | 1/15/45 | 4,719 | 5,070 |
| Republic of Indonesia | 5.950% | 1/8/46 | 400 | 476 |
| Republic of Indonesia | 5.250% | 1/8/47 | 2,650 | 2,893 |
| Republic of Indonesia | 4.750% | 7/18/47 | 1,250 | 1,282 |
| Republic of Indonesia | 4.350% | 1/11/48 | 2,650 | 2,613 |
| Republic of Indonesia | 5.350% | 2/11/49 | 1,600 | 1,792 |
| Saka Energi Indonesia PT | 4.450% | 5/5/24 | 600 | 594 |
Total Indonesia (Cost $98,516) |
|
|
| 101,175 | |
Iraq (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
1 | Republic of Iraq | 6.752% | 3/9/23 | 850 | 864 |
| Republic of Iraq | 6.752% | 3/9/23 | 950 | 966 |
2 | Republic of Iraq | 5.800% | 1/15/28 | 3,945 | 3,833 |
Total Iraq (Cost $5,500) |
|
|
| 5,663 | |
Jamaica (0.6%) |
|
|
|
| |
Sovereign Bonds (0.6%) |
|
|
|
| |
2 | Jamaica | 7.625% | 7/9/25 | 700 | 801 |
| Jamaica | 6.750% | 4/28/28 | 3,550 | 3,985 |
2 | Jamaica | 8.000% | 3/15/39 | 1,348 | 1,634 |
| Jamaica | 7.875% | 7/28/45 | 1,950 | 2,359 |
Total Jamaica (Cost $8,299) |
|
|
| 8,779 | |
Jordan (0.3%) |
|
|
|
| |
Sovereign Bonds (0.3%) |
|
|
|
| |
| Hashemite Kingdom of Jordan | 6.125% | 1/29/26 | 1,450 | 1,458 |
| Hashemite Kingdom of Jordan | 5.750% | 1/31/27 | 1,214 | 1,186 |
| Hashemite Kingdom of Jordan | 7.375% | 10/10/47 | 1,650 | 1,610 |
Total Jordan (Cost $4,200) |
|
|
| 4,254 | |
Kazakhstan (0.9%) |
|
|
|
| |
Sovereign Bonds (0.9%) |
|
|
|
| |
| Kazakhstan Temir Zholy Finance BV | 6.950% | 7/10/42 | 1,100 | 1,297 |
| Kazakhstan Temir Zholy National Co. JSC | 4.850% | 11/17/27 | 800 | 831 |
1 | KazMunayGas National Co. JSC | 3.875% | 4/19/22 | 750 | 756 |
| KazMunayGas National Co. JSC | 4.750% | 4/24/25 | 400 | 416 |
| KazMunayGas National Co. JSC | 5.750% | 4/19/47 | 1,800 | 1,888 |
1 | KazMunayGas National Co. JSC | 5.750% | 4/19/47 | 400 | 420 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
1 | KazMunayGas National Co. JSC | 6.375% | 10/24/48 | 700 | 774 |
| Republic of Kazakhstan | 3.875% | 10/14/24 | 1,900 | 1,973 |
| Republic of Kazakhstan | 5.125% | 7/21/25 | 2,500 | 2,759 |
| Republic of Kazakhstan | 4.875% | 10/14/44 | 1,600 | 1,720 |
| Republic of Kazakhstan | 6.500% | 7/21/45 | 1,200 | 1,557 |
Total Kazakhstan (Cost $13,177) |
|
|
| 14,391 | |
Kenya (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
1 | Republic of Kenya | 6.875% | 6/24/24 | 200 | 204 |
| Republic of Kenya | 6.875% | 6/24/24 | 3,075 | 3,140 |
| Republic of Kenya | 7.250% | 2/28/28 | 750 | 744 |
1 | Republic of Kenya | 7.250% | 2/28/28 | 800 | 792 |
| Republic of Kenya | 8.250% | 2/28/48 | 925 | 914 |
1 | Republic of Kenya | 8.250% | 2/28/48 | 570 | 563 |
Total Kenya (Cost $6,294) |
|
|
| 6,357 | |
Kuwait (0.8%) |
|
|
|
| |
Sovereign Bonds (0.8%) |
|
|
|
| |
| Equate Petrochemical BV | 3.000% | 3/3/22 | 900 | 891 |
| Equate Petrochemical BV | 4.250% | 11/3/26 | 1,350 | 1,377 |
| Equate Sukuk Spc Ltd. | 3.944% | 2/21/24 | 500 | 506 |
| State of Kuwait | 2.750% | 3/20/22 | 3,325 | 3,321 |
| State of Kuwait | 3.500% | 3/20/27 | 5,040 | 5,152 |
Total Kuwait (Cost $11,074) |
|
|
| 11,247 | |
Lebanon (1.5%) |
|
|
|
| |
Sovereign Bonds (1.5%) |
|
|
|
| |
| Republic of Lebanon | 5.800% | 4/14/20 | 1,100 | 1,067 |
| Republic of Lebanon | 8.250% | 4/12/21 | 2,128 | 2,062 |
| Republic of Lebanon | 6.100% | 10/4/22 | 4,239 | 3,738 |
| Republic of Lebanon | 6.000% | 1/27/23 | 585 | 507 |
| Republic of Lebanon | 6.650% | 4/22/24 | 1,991 | 1,704 |
| Republic of Lebanon | 6.200% | 2/26/25 | 2,100 | 1,753 |
| Republic of Lebanon | 6.250% | 6/12/25 | 400 | 334 |
| Republic of Lebanon | 6.600% | 11/27/26 | 2,075 | 1,708 |
| Republic of Lebanon | 6.850% | 3/23/27 | 1,350 | 1,111 |
| Republic of Lebanon | 6.750% | 11/29/27 | 2,261 | 1,840 |
| Republic of Lebanon | 6.650% | 11/3/28 | 1,040 | 839 |
| Republic of Lebanon | 6.850% | 5/25/29 | 800 | 645 |
| Republic of Lebanon | 6.650% | 2/26/30 | 3,300 | 2,616 |
| Republic of Lebanon | 7.000% | 3/23/32 | 1,550 | 1,251 |
| Republic of Lebanon | 7.050% | 11/2/35 | 500 | 395 |
| Republic of Lebanon | 7.250% | 3/23/37 | 2,100 | 1,671 |
Total Lebanon (Cost $25,349) |
|
|
| 23,241 | |
Malaysia (1.0%) |
|
|
|
| |
Sovereign Bonds (1.0%) |
|
|
|
| |
| 1MDB Global Investments Ltd. | 4.400% | 3/9/23 | 2,700 | 2,537 |
| Danga Capital Bhd. | 3.035% | 3/1/21 | 800 | 794 |
2 | Malayan Banking Bhd. | 3.905% | 10/29/26 | 700 | 702 |
| Malaysia Sovereign Sukuk Bhd. | 3.043% | 4/22/25 | 1,550 | 1,551 |
| Malaysia Sovereign Sukuk Bhd. | 4.236% | 4/22/45 | 550 | 596 |
| Malaysia Sukuk Global Bhd. | 3.179% | 4/27/26 | 1,500 | 1,501 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Malaysia Sukuk Global Bhd. | 4.080% | 4/27/46 | 450 | 477 |
| Petroliam Nasional Bhd. | 7.625% | 10/15/26 | 385 | 491 |
| Petronas Capital Ltd. | 3.125% | 3/18/22 | 700 | 702 |
| Petronas Capital Ltd. | 3.500% | 3/18/25 | 2,600 | 2,636 |
| Petronas Capital Ltd. | 4.500% | 3/18/45 | 1,550 | 1,695 |
| TNB Global Ventures Capital Bhd. | 3.244% | 10/19/26 | 800 | 769 |
1 | Wakala Global Sukuk Bhd. | 4.646% | 7/6/21 | 750 | 778 |
Total Malaysia (Cost $14,920) |
|
|
| 15,229 | |
Mexico (9.1%) |
|
|
|
| |
Sovereign Bonds (9.1%) |
|
|
|
| |
2 | Banco Nacional de Comercio Exterior SNC | 3.800% | 8/11/26 | 500 | 493 |
1 | Mexico City Airport Trust | 5.500% | 7/31/47 | 590 | 550 |
| Mexico City Airport Trust | 5.500% | 7/31/47 | 2,529 | 2,365 |
| Petroleos Mexicanos | 5.500% | 1/21/21 | 4,564 | 4,665 |
| Petroleos Mexicanos | 4.875% | 1/24/22 | 2,870 | 2,907 |
| Petroleos Mexicanos | 5.375% | 3/13/22 | 355 | 365 |
| Petroleos Mexicanos | 3.500% | 1/30/23 | 3,789 | 3,646 |
| Petroleos Mexicanos | 4.625% | 9/21/23 | 3,348 | 3,331 |
| Petroleos Mexicanos | 6.875% | 8/4/26 | 3,830 | 3,984 |
| Petroleos Mexicanos | 6.500% | 3/13/27 | 8,755 | 8,869 |
| Petroleos Mexicanos | 5.350% | 2/12/28 | 4,950 | 4,644 |
| Petroleos Mexicanos | 6.500% | 1/23/29 | 2,500 | 2,500 |
| Petroleos Mexicanos | 6.625% | 6/15/35 | 3,697 | 3,570 |
| Petroleos Mexicanos | 6.500% | 6/2/41 | 4,020 | 3,706 |
| Petroleos Mexicanos | 5.500% | 6/27/44 | 3,716 | 3,048 |
| Petroleos Mexicanos | 6.375% | 1/23/45 | 4,535 | 4,044 |
| Petroleos Mexicanos | 5.625% | 1/23/46 | 2,922 | 2,438 |
| Petroleos Mexicanos | 6.750% | 9/21/47 | 9,609 | 8,858 |
| Petroleos Mexicanos | 6.350% | 2/12/48 | 5,205 | 4,606 |
| United Mexican States | 3.500% | 1/21/21 | 950 | 960 |
| United Mexican States | 3.625% | 3/15/22 | 4,453 | 4,526 |
| United Mexican States | 4.000% | 10/2/23 | 5,226 | 5,378 |
| United Mexican States | 3.600% | 1/30/25 | 3,699 | 3,694 |
| United Mexican States | 4.125% | 1/21/26 | 3,962 | 4,032 |
| United Mexican States | 4.150% | 3/28/27 | 4,910 | 4,977 |
| United Mexican States | 3.750% | 1/11/28 | 4,130 | 4,059 |
| United Mexican States | 4.500% | 4/22/29 | 6,000 | 6,197 |
| United Mexican States | 7.500% | 4/8/33 | 1,010 | 1,289 |
| United Mexican States | 6.750% | 9/27/34 | 1,854 | 2,266 |
| United Mexican States | 6.050% | 1/11/40 | 5,039 | 5,790 |
| United Mexican States | 4.750% | 3/8/44 | 8,250 | 8,128 |
| United Mexican States | 5.550% | 1/21/45 | 2,009 | 2,210 |
| United Mexican States | 4.600% | 1/23/46 | 6,105 | 5,884 |
| United Mexican States | 4.350% | 1/15/47 | 2,426 | 2,259 |
| United Mexican States | 4.600% | 2/10/48 | 5,543 | 5,370 |
| United Mexican States | 5.750% | 10/12/10 | 3,968 | 4,071 |
Total Mexico (Cost $140,793) |
|
|
| 139,679 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
Mongolia (0.3%) |
|
|
|
| |
Sovereign Bonds (0.3%) |
|
|
|
| |
| Mongolia | 5.125% | 12/5/22 | 2,450 | 2,409 |
1 | Mongolia | 5.625% | 5/1/23 | 1,000 | 986 |
1,6 | Trade & Development Bank of Mongolia LLC | 9.375% | 5/19/20 | 200 | 207 |
6 | Trade & Development Bank of Mongolia LLC | 9.375% | 5/19/20 | 400 | 414 |
Total Mongolia (Cost $3,946) |
|
|
| 4,016 | |
Morocco (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Kingdom of Morocco | 4.250% | 12/11/22 | 2,000 | 2,047 |
| Kingdom of Morocco | 5.500% | 12/11/42 | 725 | 776 |
1 | OCP SA | 6.875% | 4/25/44 | 200 | 219 |
| OCP SA | 6.875% | 4/25/44 | 300 | 327 |
Total Morocco (Cost $3,238) |
|
|
| 3,369 | |
Mozambique (0.0%) |
|
|
|
| |
Sovereign Bond (0.0%) |
|
|
|
| |
10 | Republic of Mozambique | 10.500% | 1/18/23 | 644 | 561 |
Total Mozambique (Cost $560) |
|
|
| 561 | |
Namibia (0.1%) |
|
|
|
| |
Sovereign Bonds (0.1%) |
|
|
|
| |
| Republic of Namibia | 5.500% | 11/3/21 | 500 | 510 |
| Republic of Namibia | 5.250% | 10/29/25 | 700 | 679 |
Total Namibia (Cost $1,222) |
|
|
| 1,189 | |
Nigeria (1.1%) |
|
|
|
| |
Sovereign Bonds (1.1%) |
|
|
|
| |
| Federal Republic of Nigeria | 6.750% | 1/28/21 | 750 | 774 |
| Federal Republic of Nigeria | 6.375% | 7/12/23 | 1,200 | 1,238 |
| Federal Republic of Nigeria | 7.625% | 11/21/25 | 750 | 801 |
1 | Federal Republic of Nigeria | 7.625% | 11/21/25 | 800 | 855 |
| Federal Republic of Nigeria | 6.500% | 11/28/27 | 2,300 | 2,265 |
1 | Federal Republic of Nigeria | 7.143% | 2/23/30 | 1,000 | 995 |
1 | Federal Republic of Nigeria | 8.747% | 1/21/31 | 1,600 | 1,758 |
| Federal Republic of Nigeria | 7.875% | 2/16/32 | 1,500 | 1,549 |
1 | Federal Republic of Nigeria | 7.875% | 2/16/32 | 1,500 | 1,549 |
1 | Federal Republic of Nigeria | 7.696% | 2/23/38 | 2,175 | 2,148 |
| Federal Republic of Nigeria | 7.625% | 11/28/47 | 1,600 | 1,534 |
| Federal Republic of Nigeria | 9.248% | 1/21/49 | 1,500 | 1,632 |
Total Nigeria (Cost $16,881) |
|
|
| 17,098 | |
Oman (1.8%) |
|
|
|
| |
Sovereign Bonds (1.8%) |
|
|
|
| |
| Lamar Funding Ltd. | 3.958% | 5/7/25 | 2,100 | 1,838 |
| Oman Sovereign Sukuk SAOC | 4.397% | 6/1/24 | 3,000 | 2,866 |
1 | Oman Sovereign Sukuk SAOC | 5.932% | 10/31/25 | 1,700 | 1,717 |
| OmGrid Funding Ltd. | 5.196% | 5/16/27 | 500 | 457 |
1 | Sultanate of Oman | 3.625% | 6/15/21 | 1,300 | 1,268 |
| Sultanate of Oman | 3.625% | 6/15/21 | 1,800 | 1,759 |
| Sultanate of Oman | 3.875% | 3/8/22 | 1,000 | 973 |
| Sultanate of Oman | 4.125% | 1/17/23 | 800 | 774 |
1 | Sultanate of Oman | 4.125% | 1/17/23 | 1,250 | 1,210 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Sultanate of Oman | 4.750% | 6/15/26 | 1,600 | 1,482 |
1 | Sultanate of Oman | 4.750% | 6/15/26 | 1,800 | 1,665 |
| Sultanate of Oman | 5.375% | 3/8/27 | 2,200 | 2,071 |
| Sultanate of Oman | 5.625% | 1/17/28 | 1,400 | 1,332 |
1 | Sultanate of Oman | 5.625% | 1/17/28 | 1,800 | 1,711 |
| Sultanate of Oman | 6.500% | 3/8/47 | 2,615 | 2,338 |
| Sultanate of Oman | 6.750% | 1/17/48 | 1,900 | 1,730 |
1 | Sultanate of Oman | 6.750% | 1/17/48 | 2,500 | 2,250 |
Total Oman (Cost $28,673) |
|
|
| 27,441 | |
Pakistan (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
1 | Islamic Republic of Pakistan | 8.250% | 4/15/24 | 250 | 270 |
| Islamic Republic of Pakistan | 8.250% | 4/15/24 | 1,750 | 1,891 |
| Islamic Republic of Pakistan | 8.250% | 9/30/25 | 900 | 975 |
1 | Islamic Republic of Pakistan | 6.875% | 12/5/27 | 1,350 | 1,330 |
| Third Pakistan International Sukuk Co. Ltd. | 5.500% | 10/13/21 | 700 | 706 |
| Third Pakistan International Sukuk Co. Ltd. | 5.625% | 12/5/22 | 400 | 402 |
Total Pakistan (Cost $5,452) |
|
|
| 5,574 | |
Panama (1.5%) |
|
|
|
| |
Sovereign Bonds (1.5%) |
|
|
|
| |
1,2 | Aeropuerto Internacional de Tocumen SA | 5.625% | 5/18/36 | 1,000 | 1,069 |
2 | Republic of Panama | 4.000% | 9/22/24 | 1,900 | 1,978 |
2 | Republic of Panama | 3.750% | 3/16/25 | 1,959 | 2,018 |
| Republic of Panama | 7.125% | 1/29/26 | 1,725 | 2,100 |
| Republic of Panama | 8.875% | 9/30/27 | 1,535 | 2,128 |
2 | Republic of Panama | 3.875% | 3/17/28 | 1,833 | 1,895 |
| Republic of Panama | 9.375% | 4/1/29 | 1,450 | 2,113 |
2 | Republic of Panama | 6.700% | 1/26/36 | 3,112 | 4,042 |
2 | Republic of Panama | 4.500% | 5/15/47 | 1,800 | 1,890 |
2 | Republic of Panama | 4.500% | 4/16/50 | 2,700 | 2,818 |
2 | Republic of Panama | 4.300% | 4/29/53 | 1,150 | 1,167 |
Total Panama (Cost $22,381) |
|
|
| 23,218 | |
Papua New Guinea (0.0%) |
|
|
|
| |
Sovereign Bond (0.0%) |
|
|
|
| |
1 | Papua New Guinea Government International Bond | 8.375% | 10/4/28 | 500 | 535 |
Total Papua New Guinea (Cost $498) |
|
|
| 535 | |
Paraguay (0.4%) |
|
|
|
| |
Sovereign Bonds (0.4%) |
|
|
|
| |
| Republic of Paraguay | 4.625% | 1/25/23 | 1,200 | 1,244 |
| Republic of Paraguay | 5.000% | 4/15/26 | 680 | 718 |
| Republic of Paraguay | 4.700% | 3/27/27 | 700 | 730 |
| Republic of Paraguay | 6.100% | 8/11/44 | 1,150 | 1,302 |
| Republic of Paraguay | 5.600% | 3/13/48 | 800 | 854 |
1,2 | Republic of Paraguay | 5.400% | 3/30/50 | 1,400 | 1,459 |
Total Paraguay (Cost $6,106) |
|
|
| 6,307 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
Peru (1.1%) |
|
|
|
| |
Sovereign Bonds (1.1%) |
|
|
|
| |
| Corp. Financiera de Desarrollo SA | 4.750% | 2/8/22 | 200 | 207 |
| Fondo MIVIVIENDA SA | 3.500% | 1/31/23 | 800 | 799 |
| Petroleos del Peru SA | 4.750% | 6/19/32 | 491 | 500 |
1 | Petroleos del Peru SA | 5.625% | 6/19/47 | 1,850 | 1,953 |
| Republic of Peru | 7.350% | 7/21/25 | 2,459 | 3,066 |
| Republic of Peru | 4.125% | 8/25/27 | 2,247 | 2,424 |
| Republic of Peru | 8.750% | 11/21/33 | 2,147 | 3,331 |
2 | Republic of Peru | 6.550% | 3/14/37 | 1,521 | 2,035 |
| Republic of Peru | 5.625% | 11/18/50 | 2,257 | 2,886 |
Total Peru (Cost $16,210) |
|
|
| 17,201 | |
Philippines (2.8%) |
|
|
|
| |
Sovereign Bonds (2.8%) |
|
|
|
| |
| Republic of the Philippines | 4.000% | 1/15/21 | 2,485 | 2,535 |
| Republic of the Philippines | 4.200% | 1/21/24 | 2,314 | 2,451 |
2 | Republic of the Philippines | 7.500% | 9/25/24 | 900 | 1,069 |
| Republic of the Philippines | 10.625% | 3/16/25 | 2,284 | 3,243 |
| Republic of the Philippines | 5.500% | 3/30/26 | 2,500 | 2,881 |
| Republic of the Philippines | 3.000% | 2/1/28 | 3,000 | 2,967 |
| Republic of the Philippines | 3.750% | 1/14/29 | 2,250 | 2,334 |
| Republic of the Philippines | 9.500% | 2/2/30 | 2,223 | 3,429 |
| Republic of the Philippines | 7.750% | 1/14/31 | 2,754 | 3,883 |
| Republic of the Philippines | 6.375% | 1/15/32 | 1,550 | 1,996 |
| Republic of the Philippines | 6.375% | 10/23/34 | 2,945 | 3,921 |
| Republic of the Philippines | 5.000% | 1/13/37 | 2,080 | 2,457 |
| Republic of the Philippines | 3.950% | 1/20/40 | 3,150 | 3,304 |
| Republic of the Philippines | 3.700% | 3/1/41 | 3,150 | 3,193 |
| Republic of the Philippines | 3.700% | 2/2/42 | 3,190 | 3,228 |
Total Philippines (Cost $42,085) |
|
|
| 42,891 | |
Poland (1.1%) |
|
|
|
| |
Sovereign Bonds (1.1%) |
|
|
|
| |
| Republic of Poland | 5.125% | 4/21/21 | 2,610 | 2,737 |
| Republic of Poland | 5.000% | 3/23/22 | 4,609 | 4,898 |
| Republic of Poland | 3.000% | 3/17/23 | 3,075 | 3,106 |
| Republic of Poland | 4.000% | 1/22/24 | 3,078 | 3,236 |
| Republic of Poland | 3.250% | 4/6/26 | 2,710 | 2,765 |
Total Poland (Cost $16,581) |
|
|
| 16,742 | |
Qatar (4.7%) |
|
|
|
| |
Sovereign Bonds (4.7%) |
|
|
|
| |
| IBQ Finance Ltd. | 3.500% | 11/25/20 | 1,000 | 995 |
1,2 | Nakilat Inc. | 6.067% | 12/31/33 | 700 | 791 |
1 | Ooredoo International Finance Ltd. | 4.750% | 2/16/21 | 500 | 515 |
1 | Ooredoo International Finance Ltd. | 3.250% | 2/21/23 | 850 | 850 |
1 | Ooredoo International Finance Ltd. | 5.000% | 10/19/25 | 900 | 968 |
1 | Ooredoo International Finance Ltd. | 3.750% | 6/22/26 | 250 | 251 |
1 | Ooredoo International Finance Ltd. | 3.875% | 1/31/28 | 1,750 | 1,764 |
1 | Qatari Diar Finance QSC | 5.000% | 7/21/20 | 2,480 | 2,536 |
| QNB Finance Ltd. | 2.875% | 4/29/20 | 3,300 | 3,289 |
7 | QNB Finance Ltd., 3M USD LIBOR + 1.350% | 3.989% | 5/31/21 | 400 | 404 |
1,2 | Ras Laffan Liquefied Natural Gas Co. Ltd. III | 5.838% | 9/30/27 | 1,370 | 1,522 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
1,2 | Ras Laffan Liquefied Natural Gas Co. Ltd. III | 6.332% | 9/30/27 | 500 | 563 |
| State of Qatar | 2.375% | 6/2/21 | 5,250 | 5,191 |
1 | State of Qatar | 4.500% | 1/20/22 | 2,750 | 2,861 |
| State of Qatar | 3.241% | 1/18/23 | 475 | 479 |
| State of Qatar | 3.875% | 4/23/23 | 3,575 | 3,693 |
1 | State of Qatar | 3.875% | 4/23/23 | 1,000 | 1,033 |
| State of Qatar | 3.375% | 3/14/24 | 2,000 | 2,028 |
| State of Qatar | 3.250% | 6/2/26 | 4,550 | 4,538 |
1 | State of Qatar | 4.500% | 4/23/28 | 3,000 | 3,245 |
| State of Qatar | 4.000% | 3/14/29 | 4,200 | 4,389 |
| State of Qatar | 9.750% | 6/15/30 | 325 | 506 |
1 | State of Qatar | 9.750% | 6/15/30 | 750 | 1,166 |
| State of Qatar | 6.400% | 1/20/40 | 1,078 | 1,406 |
1 | State of Qatar | 6.400% | 1/20/40 | 700 | 911 |
| State of Qatar | 5.750% | 1/20/42 | 1,650 | 2,013 |
1 | State of Qatar | 5.750% | 1/20/42 | 516 | 629 |
| State of Qatar | 4.625% | 6/2/46 | 3,050 | 3,241 |
| State of Qatar | 5.103% | 4/23/48 | 9,200 | 10,277 |
1 | State of Qatar | 4.817% | 3/14/49 | 500 | 534 |
| State of Qatar | 4.817% | 3/14/49 | 9,255 | 9,947 |
Total Qatar (Cost $70,999) |
|
|
| 72,535 | |
Romania (0.7%) |
|
|
|
| |
Sovereign Bonds (0.7%) |
|
|
|
| |
| Republic of Romania | 6.750% | 2/7/22 | 3,132 | 3,424 |
| Republic of Romania | 4.375% | 8/22/23 | 2,174 | 2,262 |
1 | Republic of Romania | 4.875% | 1/22/24 | 100 | 107 |
| Republic of Romania | 4.875% | 1/22/24 | 1,550 | 1,651 |
1 | Republic of Romania | 6.125% | 1/22/44 | 200 | 231 |
| Republic of Romania | 6.125% | 1/22/44 | 1,270 | 1,469 |
1 | Republic of Romania | 5.125% | 6/15/48 | 500 | 503 |
| Republic of Romania | 5.125% | 6/15/48 | 1,450 | 1,462 |
Total Romania (Cost $11,035) |
|
|
| 11,109 | |
Russia (4.8%) |
|
|
|
| |
Sovereign Bonds (4.8%) |
|
|
|
| |
| Gazprom Neft OAO Via GPN Capital SA | 4.375% | 9/19/22 | 1,000 | 1,013 |
1 | Gazprom Neft OAO Via GPN Capital SA | 6.000% | 11/27/23 | 200 | 215 |
| Gazprom Neft OAO Via GPN Capital SA | 6.000% | 11/27/23 | 1,550 | 1,666 |
| Gazprom OAO Via Gaz Capital SA | 5.999% | 1/23/21 | 1,200 | 1,252 |
| Gazprom OAO Via Gaz Capital SA | 6.510% | 3/7/22 | 1,325 | 1,428 |
| Gazprom OAO Via Gaz Capital SA | 4.950% | 7/19/22 | 1,050 | 1,088 |
1 | Gazprom OAO Via Gaz Capital SA | 5.150% | 2/11/26 | 1,300 | 1,348 |
| Gazprom OAO Via Gaz Capital SA | 4.950% | 3/23/27 | 1,200 | 1,221 |
| Gazprom OAO Via Gaz Capital SA | 4.950% | 2/6/28 | 650 | 661 |
| Gazprom OAO Via Gaz Capital SA | 8.625% | 4/28/34 | 1,609 | 2,116 |
| Gazprom OAO Via Gaz Capital SA | 7.288% | 8/16/37 | 1,375 | 1,646 |
1 | Gazprom OAO Via Gaz Capital SA | 7.288% | 8/16/37 | 100 | 120 |
| GTLK Europe DAC | 5.950% | 7/19/21 | 500 | 513 |
| GTLK Europe DAC | 5.125% | 5/31/24 | 500 | 493 |
| Rosneft Oil Co. Via Rosneft International | 4.199% | 3/6/22 | 1,927 | 1,935 |
| Russian Federation | 4.500% | 4/4/22 | 4,600 | 4,760 |
| Russian Federation | 4.875% | 9/16/23 | 5,400 | 5,697 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
1 | Russian Federation | 4.875% | 9/16/23 | 450 | 474 |
| Russian Federation | 4.750% | 5/27/26 | 4,200 | 4,357 |
| Russian Federation | 4.250% | 6/23/27 | 2,800 | 2,820 |
| Russian Federation | 12.750% | 6/24/28 | 1,335 | 2,166 |
| Russian Federation | 4.375% | 3/21/29 | 1,000 | 1,006 |
2 | Russian Federation | 7.500% | 3/31/30 | 1,730 | 1,931 |
| Russian Federation | 5.100% | 3/28/35 | 2,600 | 2,691 |
| Russian Federation | 5.625% | 4/4/42 | 4,600 | 5,114 |
| Russian Federation | 5.875% | 9/16/43 | 2,400 | 2,740 |
1 | Russian Federation | 5.250% | 6/23/47 | 4,600 | 4,768 |
| Russian Federation | 5.250% | 6/23/47 | 6,200 | 6,432 |
| Russian Railways Via RZD Capital plc | 5.700% | 4/5/22 | 1,150 | 1,203 |
| Sberbank of Russia Via SB Capital SA | 5.717% | 6/16/21 | 1,025 | 1,063 |
| Sberbank of Russia Via SB Capital SA | 6.125% | 2/7/22 | 1,500 | 1,591 |
| Sberbank of Russia Via SB Capital SA | 5.125% | 10/29/22 | 2,024 | 2,059 |
| SCF Capital Designated Activity Co. | 5.375% | 6/16/23 | 900 | 923 |
| Vnesheconombank Via VEB Finance plc | 6.902% | 7/9/20 | 1,150 | 1,185 |
| Vnesheconombank Via VEB Finance plc | 6.025% | 7/5/22 | 1,225 | 1,279 |
| VTB Bank OJSC Via VTB Capital SA | 6.551% | 10/13/20 | 550 | 571 |
| VTB Bank OJSC Via VTB Capital SA | 6.950% | 10/17/22 | 1,425 | 1,488 |
Total Russia (Cost $70,193) |
|
|
| 73,033 | |
Saudi Arabia (7.3%) |
|
|
|
| |
Sovereign Bonds (7.3%) |
|
|
|
| |
1 | Kingdom of Saudi Arabia | 2.375% | 10/26/21 | 2,900 | 2,857 |
| Kingdom of Saudi Arabia | 2.375% | 10/26/21 | 5,992 | 5,908 |
1 | Kingdom of Saudi Arabia | 2.875% | 3/4/23 | 2,400 | 2,382 |
| Kingdom of Saudi Arabia | 2.875% | 3/4/23 | 2,200 | 2,183 |
| Kingdom of Saudi Arabia | 4.000% | 4/17/25 | 2,500 | 2,590 |
1 | Kingdom of Saudi Arabia | 4.000% | 4/17/25 | 4,375 | 4,534 |
1 | Kingdom of Saudi Arabia | 3.250% | 10/26/26 | 5,640 | 5,534 |
| Kingdom of Saudi Arabia | 3.250% | 10/26/26 | 2,600 | 2,553 |
1 | Kingdom of Saudi Arabia | 3.625% | 3/4/28 | 3,200 | 3,200 |
| Kingdom of Saudi Arabia | 3.625% | 3/4/28 | 4,500 | 4,505 |
| Kingdom of Saudi Arabia | 4.375% | 4/16/29 | 900 | 945 |
1 | Kingdom of Saudi Arabia | 4.375% | 4/16/29 | 5,250 | 5,503 |
| Kingdom of Saudi Arabia | 4.500% | 4/17/30 | 1,400 | 1,476 |
1 | Kingdom of Saudi Arabia | 4.500% | 4/17/30 | 2,950 | 3,109 |
| Kingdom of Saudi Arabia | 4.500% | 10/26/46 | 9,985 | 9,857 |
1 | Kingdom of Saudi Arabia | 4.625% | 10/4/47 | 1,700 | 1,709 |
| Kingdom of Saudi Arabia | 4.625% | 10/4/47 | 5,150 | 5,178 |
| Kingdom of Saudi Arabia | 5.000% | 4/17/49 | 2,250 | 2,381 |
1 | Kingdom of Saudi Arabia | 5.000% | 4/17/49 | 3,100 | 3,274 |
| Kingdom of Saudi Arabia | 5.250% | 1/16/50 | 1,700 | 1,848 |
1 | Kingdom of Saudi Arabia | 5.250% | 1/16/50 | 3,700 | 4,010 |
| KSA Sukuk Ltd. | 2.894% | 4/20/22 | 4,250 | 4,246 |
1 | KSA Sukuk Ltd. | 2.894% | 4/20/22 | 2,800 | 2,797 |
8 | KSA Sukuk Ltd. | 3.628% | 4/20/27 | 7,000 | 7,048 |
| KSA Sukuk Ltd. | 4.303% | 1/19/29 | 1,200 | 1,252 |
1 | KSA Sukuk Ltd. | 4.303% | 1/19/29 | 1,900 | 1,976 |
1 | Saudi Arabian Oil Co. | 2.875% | 4/16/24 | 3,000 | 2,952 |
1 | Saudi Arabian Oil Co. | 3.500% | 4/16/29 | 4,600 | 4,514 |
1 | Saudi Arabian Oil Co. | 4.250% | 4/16/39 | 4,600 | 4,466 |
1 | Saudi Arabian Oil Co. | 4.375% | 4/16/49 | 4,500 | 4,363 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
1 | Saudi Electricity Global Sukuk Co. 3 | 4.000% | 4/8/24 | 650 | 667 |
| Saudi Electricity Global Sukuk Co. 3 | 4.000% | 4/8/24 | 1,950 | 2,000 |
| Saudi Electricity Global Sukuk Co. 4 | 4.222% | 1/27/24 | 400 | 413 |
Total Saudi Arabia (Cost $111,092) |
|
|
| 112,230 | |
Senegal (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Republic of Senegal | 6.250% | 7/30/24 | 200 | 209 |
2 | Republic of Senegal | 6.250% | 5/23/33 | 1,700 | 1,639 |
1,2 | Republic of Senegal | 6.750% | 3/13/48 | 800 | 736 |
2 | Republic of Senegal | 6.750% | 3/13/48 | 600 | 553 |
Total Senegal (Cost $3,224) |
|
|
| 3,137 | |
Serbia, Republic of (0.2%) |
|
|
|
| |
Sovereign Bond (0.2%) |
|
|
|
| |
| Republic of Serbia | 7.250% | 9/28/21 | 2,320 | 2,524 |
Total Serbia, Republic of (Cost $2,455) |
|
|
| 2,524 | |
South Africa (1.7%) |
|
|
|
| |
Sovereign Bonds (1.7%) |
|
|
|
| |
| Eskom Holdings SOC Ltd. | 5.750% | 1/26/21 | 2,200 | 2,183 |
| Eskom Holdings SOC Ltd. | 6.750% | 8/6/23 | 930 | 934 |
1 | Eskom Holdings SOC Ltd. | 7.125% | 2/11/25 | 200 | 202 |
| Eskom Holdings SOC Ltd. | 7.125% | 2/11/25 | 1,250 | 1,265 |
1,9 | Eskom Holdings SOC Ltd. | 6.350% | 8/10/28 | 900 | 934 |
1 | Eskom Holdings SOC Ltd. | 8.450% | 8/10/28 | 400 | 432 |
| Republic of South Africa | 5.875% | 5/30/22 | 1,071 | 1,127 |
| Republic of South Africa | 4.665% | 1/17/24 | 1,800 | 1,818 |
| Republic of South Africa | 5.875% | 9/16/25 | 2,400 | 2,526 |
| Republic of South Africa | 4.875% | 4/14/26 | 1,500 | 1,485 |
| Republic of South Africa | 4.850% | 9/27/27 | 850 | 828 |
| Republic of South Africa | 4.300% | 10/12/28 | 2,950 | 2,751 |
| Republic of South Africa | 5.875% | 6/22/30 | 1,750 | 1,786 |
| Republic of South Africa | 6.250% | 3/8/41 | 853 | 878 |
| Republic of South Africa | 5.375% | 7/24/44 | 1,200 | 1,102 |
| Republic of South Africa | 5.000% | 10/12/46 | 1,200 | 1,054 |
| Republic of South Africa | 5.650% | 9/27/47 | 2,500 | 2,338 |
| Republic of South Africa | 6.300% | 6/22/48 | 1,050 | 1,051 |
1 | Transnet SOC Ltd. | 4.000% | 7/26/22 | 1,025 | 1,007 |
| ZAR Sovereign Capital Fund Pty Ltd. | 3.903% | 6/24/20 | 400 | 400 |
Total South Africa (Cost $26,384) |
|
|
| 26,101 | |
Sri Lanka (1.3%) |
|
|
|
| |
Sovereign Bonds (1.3%) |
|
|
|
| |
| Democratic Socialist Republic of Sri Lanka | 6.250% | 10/4/20 | 1,732 | 1,743 |
| Democratic Socialist Republic of Sri Lanka | 6.250% | 7/27/21 | 1,700 | 1,711 |
| Democratic Socialist Republic of Sri Lanka | 5.750% | 1/18/22 | 750 | 744 |
| Democratic Socialist Republic of Sri Lanka | 5.875% | 7/25/22 | 1,500 | 1,485 |
| Democratic Socialist Republic of Sri Lanka | 5.750% | 4/18/23 | 200 | 196 |
1 | Democratic Socialist Republic of Sri Lanka | 5.750% | 4/18/23 | 1,400 | 1,368 |
| Democratic Socialist Republic of Sri Lanka | 6.850% | 3/14/24 | 1,600 | 1,618 |
| Democratic Socialist Republic of Sri Lanka | 6.125% | 6/3/25 | 1,400 | 1,352 |
| Democratic Socialist Republic of Sri Lanka | 6.850% | 11/3/25 | 1,950 | 1,947 |
| Democratic Socialist Republic of Sri Lanka | 6.825% | 7/18/26 | 1,800 | 1,774 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Democratic Socialist Republic of Sri Lanka | 6.200% | 5/11/27 | 2,000 | 1,887 |
| Democratic Socialist Republic of Sri Lanka | 6.750% | 4/18/28 | 2,250 | 2,175 |
| Democratic Socialist Republic of Sri Lanka | 7.850% | 3/14/29 | 2,050 | 2,105 |
Total Sri Lanka (Cost $20,289) |
|
|
| 20,105 | |
Suriname (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
2 | Republic of Suriname | 9.250% | 10/26/26 | 700 | 686 |
Total Suriname (Cost $703) |
|
|
| 686 | |
Tajikistan (0.0%) |
|
|
|
| |
Sovereign Bond (0.0%) |
|
|
|
| |
2 | Republic of Tajikistan | 7.125% | 9/14/27 | 500 | 467 |
Total Tajikistan (Cost $453) |
|
|
| 467 | |
Thailand (0.0%) |
|
|
|
| |
Sovereign Bond (0.0%) |
|
|
|
| |
| PTT Public Co. Ltd. | 4.500% | 10/25/42 | 400 | 392 |
Total Thailand (Cost $369) |
|
|
| 392 | |
Trinidad And Tobago (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
1 | Republic of Trinidad and Tobago | 4.375% | 1/16/24 | 400 | 406 |
| Republic of Trinidad and Tobago | 4.500% | 8/4/26 | 1,500 | 1,489 |
2 | Trinidad Generation UnLtd | 5.250% | 11/4/27 | 600 | 605 |
Total Trinidad And Tobago (Cost $2,477) |
|
|
| 2,500 | |
Tunisia (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
| Banque Centrale de Tunisie SA | 5.750% | 1/30/25 | 1,250 | 1,145 |
Total Tunisia (Cost $1,157) |
|
|
| 1,145 | |
Turkey (5.3%) |
|
|
|
| |
Sovereign Bonds (5.3%) |
|
|
|
| |
| Export Credit Bank of Turkey | 5.375% | 2/8/21 | 200 | 192 |
1 | Export Credit Bank of Turkey | 5.375% | 2/8/21 | 500 | 481 |
1 | Export Credit Bank of Turkey | 5.000% | 9/23/21 | 400 | 375 |
1 | Export Credit Bank of Turkey | 4.250% | 9/18/22 | 500 | 445 |
1 | Export Credit Bank of Turkey | 8.250% | 1/24/24 | 500 | 492 |
1 | Export Credit Bank of Turkey | 6.125% | 5/3/24 | 900 | 821 |
| Hazine Mustesarligi Varlik Kiralama AS | 4.251% | 6/8/21 | 1,450 | 1,395 |
| Hazine Mustesarligi Varlik Kiralama AS | 5.800% | 2/21/22 | 2,400 | 2,344 |
| Hazine Mustesarligi Varlik Kiralama AS | 5.004% | 4/6/23 | 700 | 657 |
1 | Hazine Mustesarligi Varlik Kiralama AS | 4.489% | 11/25/24 | 800 | 706 |
| Republic of Turkey | 7.000% | 6/5/20 | 2,530 | 2,552 |
| Republic of Turkey | 5.625% | 3/30/21 | 1,901 | 1,872 |
| Republic of Turkey | 5.125% | 3/25/22 | 1,925 | 1,833 |
| Republic of Turkey | 6.250% | 9/26/22 | 3,061 | 2,981 |
| Republic of Turkey | 3.250% | 3/23/23 | 1,801 | 1,576 |
| Republic of Turkey | 7.250% | 12/23/23 | 2,200 | 2,191 |
| Republic of Turkey | 5.750% | 3/22/24 | 4,850 | 4,535 |
| Republic of Turkey | 7.375% | 2/5/25 | 5,000 | 4,944 |
| Republic of Turkey | 4.250% | 4/14/26 | 2,950 | 2,452 |
| Republic of Turkey | 4.875% | 10/9/26 | 5,000 | 4,256 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
| Republic of Turkey | 6.000% | 3/25/27 | 4,062 | 3,651 |
| Republic of Turkey | 5.125% | 2/17/28 | 3,000 | 2,539 |
| Republic of Turkey | 6.125% | 10/24/28 | 3,100 | 2,771 |
| Republic of Turkey | 7.625% | 4/26/29 | 3,400 | 3,259 |
| Republic of Turkey | 11.875% | 1/15/30 | 2,300 | 2,927 |
| Republic of Turkey | 8.000% | 2/14/34 | 3,390 | 3,386 |
| Republic of Turkey | 6.875% | 3/17/36 | 4,748 | 4,249 |
| Republic of Turkey | 6.750% | 5/30/40 | 2,410 | 2,103 |
| Republic of Turkey | 6.000% | 1/14/41 | 4,580 | 3,710 |
| Republic of Turkey | 4.875% | 4/16/43 | 5,319 | 3,903 |
| Republic of Turkey | 6.625% | 2/17/45 | 4,600 | 3,910 |
| Republic of Turkey | 5.750% | 5/11/47 | 5,350 | 4,180 |
1 | TC Ziraat Bankasi AS | 4.750% | 4/29/21 | 800 | 754 |
| TC Ziraat Bankasi AS | 5.125% | 5/3/22 | 900 | 821 |
| Turkiye Halk Bankasi AS | 4.750% | 2/11/21 | 700 | 628 |
1 | Turkiye Halk Bankasi AS | 5.000% | 7/13/21 | 500 | 444 |
| Turkiye Halk Bankasi AS | 5.000% | 7/13/21 | 200 | 178 |
1 | Turkiye Vakiflar Bankasi TAO | 5.625% | 5/30/22 | 500 | 458 |
| Turkiye Vakiflar Bankasi TAO | 6.000% | 11/1/22 | 200 | 173 |
2 | Turkiye Vakiflar Bankasi TAO | 6.875% | 2/3/25 | 600 | 536 |
Total Turkey (Cost $89,529) |
|
|
| 81,680 | |
Ukraine (1.5%) |
|
|
|
| |
Sovereign Bonds (1.5%) |
|
|
|
| |
2 | Oschadbank Via SSB #1 plc | 9.625% | 3/20/25 | 1,000 | 1,000 |
1 | Oschadbank Via SSB #1 plc | 9.625% | 3/20/25 | 200 | 200 |
1 | Ukraine | 7.750% | 9/1/20 | 378 | 379 |
| Ukraine | 7.750% | 9/1/20 | 600 | 601 |
| Ukraine | 7.750% | 9/1/21 | 1,240 | 1,230 |
1 | Ukraine | 7.750% | 9/1/21 | 907 | 898 |
| Ukraine | 7.750% | 9/1/22 | 2,050 | 2,013 |
| Ukraine | 7.750% | 9/1/23 | 1,300 | 1,255 |
1 | Ukraine | 8.994% | 2/1/24 | 700 | 697 |
| Ukraine | 7.750% | 9/1/24 | 1,860 | 1,776 |
| Ukraine | 7.750% | 9/1/25 | 1,550 | 1,462 |
| Ukraine | 7.750% | 9/1/26 | 2,550 | 2,378 |
| Ukraine | 7.750% | 9/1/27 | 2,000 | 1,845 |
| Ukraine | 9.750% | 11/1/28 | 1,300 | 1,330 |
1 | Ukraine | 9.750% | 11/1/28 | 1,200 | 1,224 |
1,2 | Ukraine | 7.375% | 9/25/32 | 2,700 | 2,383 |
2 | Ukraine | 7.375% | 9/25/32 | 1,850 | 1,633 |
1,2 | Ukraine Railways Via Shortline plc | 9.875% | 9/15/21 | 140 | 141 |
2 | Ukreximbank Via Biz Finance plc | 9.625% | 4/27/22 | 175 | 176 |
1,2 | Ukreximbank Via Biz Finance plc | 9.750% | 1/22/25 | 200 | 200 |
2 | Ukreximbank Via Biz Finance plc | 9.750% | 1/22/25 | 700 | 703 |
Total Ukraine (Cost $23,634) |
|
|
| 23,524 | |
United Arab Emirates (3.4%) |
|
|
|
| |
Sovereign Bonds (3.4%) |
|
|
|
| |
1 | Abu Dhabi Crude Oil Pipeline LLC | 3.650% | 11/2/29 | 800 | 807 |
2 | Abu Dhabi Crude Oil Pipeline LLC | 4.600% | 11/2/47 | 500 | 528 |
1,2 | Abu Dhabi Crude Oil Pipeline LLC | 4.600% | 11/2/47 | 2,550 | 2,694 |
1 | DAE Funding LLC | 4.000% | 8/1/20 | 515 | 517 |
1 | DAE Funding LLC | 4.500% | 8/1/22 | 800 | 808 |
Emerging Markets Government Bond Index Fund
|
| Coupon | Maturity | Face Amount ($000) | Market Value· ($000) |
1 | DAE Funding LLC | 5.000% | 8/1/24 | 1,000 | 1,031 |
| DP World Crescent Ltd. | 3.908% | 5/31/23 | 800 | 810 |
1 | DP World Crescent Ltd. | 4.848% | 9/26/28 | 1,000 | 1,046 |
| DP World Ltd. | 3.250% | 5/18/20 | 1,250 | 1,250 |
1 | DP World Ltd. | 6.850% | 7/2/37 | 1,790 | 2,179 |
| Dubai DOF Sukuk Ltd. | 6.450% | 5/2/22 | 200 | 218 |
1 | Dubai Electricity & Water Authority | 7.375% | 10/21/20 | 2,075 | 2,200 |
| Emirate of Abu Dhabi | 2.125% | 5/3/21 | 4,065 | 4,018 |
| Emirate of Abu Dhabi | 2.500% | 10/11/22 | 2,600 | 2,575 |
1 | Emirate of Abu Dhabi | 2.500% | 10/11/22 | 500 | 495 |
1 | Emirate of Abu Dhabi | 3.125% | 5/3/26 | 450 | 451 |
| Emirate of Abu Dhabi | 3.125% | 5/3/26 | 2,107 | 2,113 |
| Emirate of Abu Dhabi | 3.125% | 10/11/27 | 800 | 796 |
1 | Emirate of Abu Dhabi | 3.125% | 10/11/27 | 4,250 | 4,225 |
| Emirate of Abu Dhabi | 4.125% | 10/11/47 | 2,950 | 3,006 |
1 | Emirate of Abu Dhabi | 4.125% | 10/11/47 | 2,500 | 2,547 |
| Emirate of Dubai | 7.750% | 10/5/20 | 1,300 | 1,385 |
| Emirate of Dubai | 3.875% | 1/30/23 | 1,100 | 1,109 |
| Emirate of Dubai | 5.250% | 1/30/43 | 600 | 636 |
1,2 | Emirates Airline | 4.500% | 2/6/25 | 777 | 782 |
| Emirates Telecommunications Group Co. PJSC | 3.500% | 6/18/24 | 300 | 303 |
| ICD Sukuk Co. Ltd. | 3.508% | 5/21/20 | 250 | 249 |
| ICD Sukuk Co. Ltd. | 5.000% | 2/1/27 | 1,100 | 1,117 |
1 | IPIC GMTN Ltd. | 5.000% | 11/15/20 | 1,750 | 1,798 |
| IPIC GMTN Ltd. | 5.000% | 11/15/20 | 250 | 257 |
1 | IPIC GMTN Ltd. | 5.500% | 3/1/22 | 2,010 | 2,136 |
1 | IPIC GMTN Ltd. | 6.875% | 11/1/41 | 800 | 1,118 |
2 | Medjool Ltd. | 3.875% | 3/19/23 | 152 | 151 |
| Noor Sukuk Co. Ltd. | 2.788% | 4/28/20 | 350 | 348 |
| Noor Sukuk Co. Ltd. | 4.471% | 4/24/23 | 500 | 512 |
1 | Oztel Holdings SPC Ltd. | 5.625% | 10/24/23 | 600 | 602 |
| Oztel Holdings SPC Ltd. | 6.625% | 4/24/28 | 250 | 244 |
1 | Oztel Holdings SPC Ltd. | 6.625% | 4/24/28 | 300 | 293 |
| RAK Capital | 3.094% | 3/31/25 | 700 | 679 |
| Sharjah Sukuk 2 Ltd. | 3.839% | 1/27/21 | 700 | 705 |
| Sharjah Sukuk Ltd. | 3.764% | 9/17/24 | 600 | 605 |
| Sharjah Sukuk Program Ltd. | 4.226% | 3/14/28 | 1,200 | 1,221 |
| Union National Bank PJSC | 4.000% | 3/13/23 | 900 | 912 |
Total United Arab Emirates (Cost $50,853) |
|
|
| 51,476 | |
Uruguay (1.4%) |
|
|
|
| |
Sovereign Bonds (1.4%) |
|
|
|
| |
2 | Oriental Republic of Uruguay | 8.000% | 11/18/22 | 848 | 960 |
2 | Oriental Republic of Uruguay | 4.500% | 8/14/24 | 1,739 | 1,819 |
2 | Oriental Republic of Uruguay | 4.375% | 10/27/27 | 2,855 | 2,984 |
2 | Oriental Republic of Uruguay | 4.375% | 1/23/31 | 1,908 | 1,987 |
| Oriental Republic of Uruguay | 7.875% | 1/15/33 | 1,296 | 1,772 |
2 | Oriental Republic of Uruguay | 7.625% | 3/21/36 | 1,740 | 2,366 |
2 | Oriental Republic of Uruguay | 4.125% | 11/20/45 | 980 | 940 |
2 | Oriental Republic of Uruguay | 5.100% | 6/18/50 | 6,050 | 6,360 |
2 | Oriental Republic of Uruguay | 4.975% | 4/20/55 | 2,700 | 2,781 |
Total Uruguay (Cost $21,086) |
|
|
| 21,969 |
Emerging Markets Government Bond Index Fund
|
|
|
| Face | Market |
|
|
| Maturity | Amount | Value· |
|
| Coupon | Date | ($000) | ($000) |
Uzbekistan (0.1%) |
|
|
|
| |
Sovereign Bonds (0.1%) |
|
|
|
| |
| Republic of Uzbekistan Bond | 4.750% | 2/20/24 | 500 | 508 |
| Republic of Uzbekistan Bond | 5.375% | 2/20/29 | 500 | 506 |
Total Uzbekistan (Cost $997) |
|
|
| 1,014 | |
Venezuela (0.6%) |
|
|
|
| |
Sovereign Bonds (0.6%) |
|
|
|
| |
10 | Bolivarian Republic of Venezuela | 6.000% | 12/9/20 | 2,356 | 666 |
2,10 | Bolivarian Republic of Venezuela | 12.750% | 8/23/22 | 3,355 | 958 |
10 | Bolivarian Republic of Venezuela | 9.000% | 5/7/23 | 1,532 | 442 |
10 | Bolivarian Republic of Venezuela | 8.250% | 10/13/24 | 2,829 | 813 |
10 | Bolivarian Republic of Venezuela | 7.650% | 4/21/25 | 2,392 | 676 |
10 | Bolivarian Republic of Venezuela | 11.750% | 10/21/26 | 2,227 | 679 |
10 | Bolivarian Republic of Venezuela | 9.250% | 9/15/27 | 3,226 | 992 |
10 | Bolivarian Republic of Venezuela | 9.250% | 5/7/28 | 940 | 270 |
2,10 | Bolivarian Republic of Venezuela | 11.950% | 8/5/31 | 4,429 | 1,306 |
10 | Bolivarian Republic of Venezuela | 9.375% | 1/13/34 | 1,900 | 613 |
10 | Bolivarian Republic of Venezuela | 7.000% | 3/31/38 | 1,375 | 385 |
1 | CITGO Petroleum Corp. | 6.250% | 8/15/22 | 535 | 534 |
| CITGO Petroleum Corp. | 6.250% | 8/15/22 | 100 | 100 |
Total Venezuela (Cost $14,055) |
|
|
| 8,434 | |
Vietnam (0.1%) |
|
|
|
| |
Sovereign Bond (0.1%) |
|
|
|
| |
| Socialist Republic of Vietnam | 4.800% | 11/19/24 | 1,200 | 1,258 |
Total Vietnam (Cost $1,214) |
|
|
| 1,258 | |
Zambia (0.2%) |
|
|
|
| |
Sovereign Bonds (0.2%) |
|
|
|
| |
| Republic of Zambia | 5.375% | 9/20/22 | 1,150 | 792 |
| Republic of Zambia | 8.500% | 4/14/24 | 1,400 | 975 |
| Republic of Zambia | 8.970% | 7/30/27 | 1,925 | 1,339 |
Total Zambia (Cost $3,865) |
|
|
| 3,106 | |
|
|
|
|
|
|
|
|
|
| Shares |
|
Temporary Cash Investments (4.5%) |
|
|
|
| |
11 | Vanguard Market Liquidity Fund (Cost $69,112) | 2.545% |
| 691,043 | 69,111 |
Total Temporary Cash Investments (Cost $69,112) |
|
|
| 69,111 | |
Total Investments (103.2%) (Cost $1,583,176) |
|
|
| 1,579,423 | |
|
|
|
|
|
|
|
|
|
|
| Amount ($000) |
Other Assets and Liabilities (-3.2%) |
|
|
|
| |
Other Assets12 |
|
|
| 175,568 | |
Liabilities |
|
|
| (224,651) | |
|
|
|
|
| (49,083) |
Net Assets (100%) |
|
|
| 1,530,340 |
Emerging Markets Government Bond Index Fund
|
|
|
| Amount |
|
|
|
|
| ($000 | ) |
Statement of Assets and Liabilities |
|
|
|
|
|
Assets |
|
|
|
|
|
Investments in Securities, at Value |
|
|
|
|
|
Unaffiliated Issuers |
|
|
| 1,510,312 |
|
Affiliated Issuers |
|
|
| 69,111 |
|
Total Investments in Securities |
|
|
| 1,579,423 |
|
Investment in Vanguard |
|
|
| 75 |
|
Receivables for Investment Securities Sold |
|
|
| 155,579 |
|
Receivables for Accrued Income |
|
|
| 19,690 |
|
Receivables for Capital Shares Issued |
|
|
| 133 |
|
Variation Margin Receivable—Futures Contracts |
|
|
| 54 |
|
Other Assets12 |
|
|
| 38 |
|
Total Assets |
|
|
| 1,754,992 |
|
Liabilities |
|
|
|
|
|
Payables for Investment Securities Purchased |
|
|
| 223,261 |
|
Payables for Capital Shares Redeemed |
|
|
| 288 |
|
Payables for Distributions |
|
|
| 181 |
|
Payables to Vanguard |
|
|
| 345 |
|
Variation Margin Payable—Futures Contracts |
|
|
| 70 |
|
Other Liabilities |
|
|
| 507 |
|
Total Liabilities |
|
|
| 224,652 |
|
Net Assets |
|
|
| 1,530,340 |
|
At April 30, 2019, net assets consisted of: |
|
|
|
|
|
|
|
|
| Amount | ) |
Paid-in Capital |
|
|
| 1,537,316 |
|
Total Distributable Earnings (Loss) |
|
|
| (6,976 | ) |
Net Assets |
|
|
| 1,530,340 |
|
|
|
|
|
|
|
Investor Shares—Net Assets |
|
|
|
|
|
Applicable to 851,644 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 8,305 |
|
Net Asset Value Per Share—Investor Shares |
|
|
| $9.75 |
|
|
|
|
|
|
|
ETF Shares–Net Assets |
|
|
|
|
|
Applicable to 15,918,857 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 1,237,924 |
|
Net Asset Value Per Share—ETF Shares |
|
|
| $77.76 |
|
|
|
|
|
|
|
Admiral Shares–Net Assets |
|
|
|
|
|
Applicable to 12,852,347 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 250,721 |
|
Net Asset Value Per Share—Admiral Shares |
|
|
| $19.51 |
|
Emerging Markets Government Bond Index Fund
|
|
|
| Amount |
|
|
|
|
| ($000 | ) |
Institutional Shares—Net Assets |
|
|
|
|
|
Applicable to 1,067,071 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 33,390 |
|
Net Asset Value Per Share—Institutional Shares |
|
|
| $31.29 |
|
· | See Note A in Notes to Financial Statements. |
1 | 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 April 30, 2019, the aggregate value of these securities was $223,143,000, representing 14.6% of net assets. |
2 | The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called. |
3 | Guaranteed by the Republic of Azerbaijan. |
4 | Guaranteed by the Republic of Hungary. |
5 | Guaranteed by the Republic of Indonesia. |
6 | Guaranteed by the Government of Mongolia. |
7 | Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions. |
8 | Guaranteed by the Kingdom of Saudi Arabia. |
9 | Guaranteed by the Republic of South Africa. |
10 | Non-income-producing security—security in default. |
11 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
12 | Cash of $38,000 has been segregated as initial margin for open futures contracts. |
| LIBOR—London Interbank Offered Rate. |
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts
|
|
|
|
| ($000) | |
| Expiration | Number of Long (Short) Contracts |
| Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts |
|
|
|
|
| |
Ultra 10-Year U.S. Treasury Note | June 2019 | 36 |
| 4,744 | 26 | |
30-Year U.S. Treasury Bond | June 2019 | 10 |
| 1,475 | — | |
|
|
|
|
| 26 | |
|
|
|
|
|
| |
Short Futures Contracts |
|
|
|
|
| |
2-Year U.S. Treasury Note | June 2019 | (30) |
| (6,390) | — | |
Ultra Long U.S. Treasury Bond | June 2019 | (18) |
| (2,957) | 7 | |
|
|
|
|
|
| 7 |
|
|
|
|
|
| 33 |
See accompanying Notes, which are an integral part of the Financial Statements.
Emerging Markets Government Bond Index Fund
Statement of Operations
|
| Six Months Ended April 30, 2019 |
|
|
| ($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Interest1 |
| 35,505 |
|
Total Income |
| 35,505 |
|
Expenses |
|
|
|
The Vanguard Group—Note B |
|
|
|
Investment Advisory Services |
| 26 |
|
Management and Administrative—Investor Shares |
| 15 |
|
Management and Administrative—ETF Shares |
| 1,520 |
|
Management and Administrative—Admiral Shares |
| 341 |
|
Management and Administrative—Institutional Shares |
| 34 |
|
Marketing and Distribution—Investor Shares |
| 1 |
|
Marketing and Distribution—ETF Shares |
| 26 |
|
Marketing and Distribution—Admiral Shares |
| 8 |
|
Marketing and Distribution—Institutional Shares |
| — |
|
Custodian Fees |
| 20 |
|
Shareholders’ Reports—Investor Shares |
| 6 |
|
Shareholders’ Reports—ETF Shares |
| 16 |
|
Shareholders’ Reports—Admiral Shares |
| 2 |
|
Shareholders’ Reports—Institutional Shares |
| — |
|
Total Expenses |
| 2,015 |
|
Net Investment Income |
| 33,490 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold1,2 |
| 2,241 |
|
Futures Contracts |
| (108 | ) |
Realized Net Gain (Loss) |
| 2,133 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities1 |
| 61,801 |
|
Futures Contracts |
| (29 | ) |
Change in Unrealized Appreciation (Depreciation) |
| 61,772 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 97,395 |
|
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from affiliated companies of the fund were $121,000, $3,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes.
2 Includes ($13,000) of net gain (loss) resulting from in-kind redemptions; such gain (loss) is not taxable to the fund.
See accompanying Notes, which are an integral part of the Financial Statements.
Emerging Markets Government Bond Index Fund
Statement of Changes in Net Assets
|
| Six Months Ended April 30, 2019 |
| Year Ended October 31, 2018 |
|
|
| ($000) |
| ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
|
Operations |
|
|
|
|
|
Net Investment Income |
| 33,490 |
| 57,832 |
|
Realized Net Gain (Loss) |
| 2,133 |
| (6,598 | ) |
Change in Unrealized Appreciation (Depreciation) |
| 61,772 |
| (103,455 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 97,395 |
| (52,221 | ) |
Distributions |
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
Investor Shares |
| (197) |
| (489 | ) |
ETF Shares |
| (26,160) |
| (44,359 | ) |
Admiral Shares |
| (5,897) |
| (11,882 | ) |
Institutional Shares |
| (615) |
| (869 | ) |
Realized Capital Gain |
|
|
|
|
|
Investor Shares |
| — |
| — |
|
ETF Shares |
| — |
| — |
|
Admiral Shares |
| — |
| — |
|
Institutional Shares |
| — |
| — |
|
Total Distributions |
| (32,869) |
| (57,599 | ) |
Capital Share Transactions |
|
|
|
|
|
Investor Shares |
| (2,101) |
| (1,826 | ) |
ETF Shares |
| 153,224 |
| 115,604 |
|
Admiral Shares |
| (16,683) |
| (9,200 | ) |
Institutional Shares |
| 12,993 |
| 879 |
|
Net Increase (Decrease) from Capital Share Transactions |
| 147,433 |
| 105,457 |
|
Total Increase (Decrease) |
| 211,959 |
| (4,363 | ) |
Net Assets |
|
|
|
|
|
Beginning of Period |
| 1,318,381 |
| 1,322,744 |
|
End of Period |
| 1,530,340 |
| 1,318,381 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
Emerging Markets Government Bond Index Fund
Financial Highlights
Investor Shares
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding Throughout Each Period |
| April 30, |
|
|
|
|
| Year Ended October 31, | ||||
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 | |
Net Asset Value, Beginning of Period |
| $9.31 |
| $10.12 |
| $10.04 |
| $9.50 |
| $9.95 |
| $9.74 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .2171 |
| .4101 |
| .4501 |
| .454 |
| .427 |
| .417 |
Net Realized and Unrealized Gain (Loss) on Investments2 |
| .438 |
| (.812) |
| .082 |
| .533 |
| (.447) |
| .213 |
Total from Investment Operations |
| .655 |
| (.402) |
| .532 |
| .987 |
| (.020) |
| .630 |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.215) |
| (.408) |
| (.452) |
| (.447) |
| (.430) |
| (.420) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
Total Distributions |
| (.215) |
| (.408) |
| (.452) |
| (.447) |
| (.430) |
| (.420) |
Net Asset Value, End of Period |
| $9.75 |
| $9.31 |
| $10.12 |
| $10.04 |
| $9.50 |
| $9.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return3 |
| 7.11% |
| -4.05% |
| 5.46% |
| 10.65% |
| -0.16% |
| 6.62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $8 |
| $10 |
| $13 |
| $12 |
| $9 |
| $7 |
Ratio of Total Expenses to Average Net Assets |
| 0.49% |
| 0.49% |
| 0.49% |
| 0.49% |
| 0.49% |
| 0.49% |
Ratio of Net Investment Income to Average Net Assets |
| 4.59% |
| 4.23% |
| 4.50% |
| 4.72% |
| 4.52% |
| 4.35% |
Portfolio Turnover Rate4 |
| 59% |
| 25% |
| 19% |
| 24% |
| 20% |
| 27% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase fees of $.00, $.01, $.01, $.01, $.01, and $.00.
3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
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.
Emerging Markets Government Bond Index Fund
Financial Highlights
ETF Shares
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding Throughout Each Period |
| April 30, |
|
|
|
|
| Year Ended October 31, | ||||
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 | |
Net Asset Value, Beginning of Period |
| $74.27 |
| $80.73 |
| $80.11 |
| $75.81 |
| $79.40 |
| $77.71 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| 1.8041 |
| 3.4111 |
| 3.7131 |
| 3.753 |
| 3.516 |
| 3.429 |
Net Realized and Unrealized Gain (Loss) on Investments2 |
| 3.475 |
| (6.445) |
| .589 |
| 4.228 |
| (3.556) |
| 1.700 |
Total from Investment Operations |
| 5.279 |
| (3.034) |
| 4.302 |
| 7.981 |
| (.040) |
| 5.129 |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (1.789) |
| (3.426) |
| (3.682) |
| (3.681) |
| (3.550) |
| (3.439) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
Total Distributions |
| (1.789) |
| (3.426) |
| (3.682) |
| (3.681) |
| (3.550) |
| (3.439) |
Net Asset Value, End of Period |
| $77.76 |
| $74.27 |
| $80.73 |
| $80.11 |
| $75.81 |
| $79.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return |
| 7.21% |
| -3.84% |
| 5.56% |
| 10.84% |
| -0.01% |
| 6.79% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $1,238 |
| $1,033 |
| $1,002 |
| $874 |
| $501 |
| $222 |
Ratio of Total Expenses to Average Net Assets |
| 0.29% |
| 0.30% |
| 0.32% |
| 0.32% |
| 0.34% |
| 0.34% |
Ratio of Net Investment Income to Average Net Assets |
| 4.79% |
| 4.42% |
| 4.67% |
| 4.89% |
| 4.67% |
| 4.50% |
Portfolio Turnover Rate3 |
| 59% |
| 25% |
| 19% |
| 24% |
| 20% |
| 27% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase fees of $.00, $.04, $.07, $.04, $.06, and $.01.
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.
Emerging Markets Government Bond Index Fund
Financial Highlights
Admiral Shares
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding Throughout Each Period |
| April 30, |
|
|
|
|
| Year Ended October 31, | ||||
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 | |
Net Asset Value, Beginning of Period |
| $18.63 |
| $20.24 |
| $20.09 |
| $19.00 |
| $19.90 |
| $19.48 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .4541 |
| .8581 |
| .9341 |
| .941 |
| .885 |
| .863 |
Net Realized and Unrealized Gain (Loss) on Investments2 |
| .875 |
| (1.613) |
| .150 |
| 1.076 |
| (.894) |
| .427 |
Total from Investment Operations |
| 1.329 |
| (.755) |
| 1.084 |
| 2.017 |
| (.009) |
| 1.290 |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.449) |
| (.855) |
| (.934) |
| (.927) |
| (.891) |
| (.870) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
Total Distributions |
| (.449) |
| (.855) |
| (.934) |
| (.927) |
| (.891) |
| (.870) |
Net Asset Value, End of Period |
| $19.51 |
| $18.63 |
| $20.24 |
| $20.09 |
| $19.00 |
| $19.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return3 |
| 7.20% |
| -3.80% |
| 5.57% |
| 10.89% |
| 0% |
| 6.78% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $251 |
| $256 |
| $288 |
| $191 |
| $131 |
| $118 |
Ratio of Total Expenses to Average Net Assets |
| 0.29% |
| 0.30% |
| 0.32% |
| 0.32% |
| 0.33% |
| 0.34% |
Ratio of Net Investment Income to Average Net Assets |
| 4.79% |
| 4.42% |
| 4.67% |
| 4.89% |
| 4.68% |
| 4.50% |
Portfolio Turnover Rate4 |
| 59% |
| 25% |
| 19% |
| 24% |
| 20% |
| 27% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase fees of $.00, $.01, $.02, $.01, $.02, and $.00.
3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
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.
Emerging Markets Government Bond Index Fund
Financial Highlights
Institutional Shares
|
| Six Months |
|
|
|
|
|
|
| Feb. 11, |
| Nov. 25, |
|
| Ended |
|
|
|
|
|
|
| 20151, to |
| 20141 to |
For a Share Outstanding |
| April 30, |
| Year Ended October 31, |
| Oct. 31, |
| Dec. 18, | ||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
Net Asset Value, Beginning of Period |
| $29.88 |
| $32.47 |
| $32.24 |
| $30.50 |
| $30.72 |
| $31.53 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .7342 |
| 1.3802 |
| 1.5082 |
| 1.521 |
| 1.019 |
| .108 |
Net Realized and Unrealized Gain (Loss) on Investments3 |
| 1.396 |
| (2.596) |
| .238 |
| 1.715 |
| (.159) |
| (1.240) |
Total from Investment Operations |
| 2.130 |
| (1.216) |
| 1.746 |
| 3.236 |
| .860 |
| (1.132) |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.720) |
| (1.374) |
| (1.516) |
| (1.496) |
| (1.080) |
| (.108) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
| — |
| — |
Total Distributions |
| (.720) |
| (1.374) |
| (1.516) |
| (1.496) |
| (1.080) |
| (.108) |
Net Asset Value, End of Period |
| $31.29 |
| $29.88 |
| $32.47 |
| $32.24 |
| $30.50 |
| $30.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return4 |
| 7.20% |
| -3.82% |
| 5.59% |
| 10.89% |
| 2.82% |
| -3.60% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $33 |
| $19 |
| $20 |
| $21 |
| $10 |
| $0 |
Ratio of Total Expenses to Average Net Assets |
| 0.28% |
| 0.29% |
| 0.29% |
| 0.29% |
| 0.29% |
| 0.30% |
Ratio of Net Investment Income to Average Net Assets |
| 4.80% |
| 4.43% |
| 4.70% |
| 4.92% |
| 4.75% |
| 4.72% |
Portfolio Turnover Rate5 |
| 59% |
| 25% |
| 19% |
| 24% |
| 20%6 |
| 20%6 |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 The class commenced operations on November 25, 2014. On December 18, 2014, all outstanding shares were redeemed and the Net Asset Value represents the per share amount at which such shares were redeemed. On February 11, 2015, the class recommenced operations. The expense ratio and net income ratio for the periods shown have been annualized.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase fees of $.00 for 2019, $.02 for 2018, $.03 for 2017, $.02 for 2016, and $.04 in aggregate for periods prior to November 1, 2015.
4 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
5 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.
6 Reflects the fund’s portfolio turnover for the fiscal year ended October 31, 2015.
See accompanying Notes, which are an integral part of the Financial Statements.
Emerging Markets Government Bond Index Fund
Notes to Financial Statements
Vanguard Emerging Markets Government Bond Index 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. 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 Nasdaq; they can be purchased and sold through a broker.
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. Bonds and 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. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 at their fair values calculated according to procedures adopted 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.
2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds 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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. 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 futures gains (losses).
During the six months ended April 30, 2019, the fund’s average investments in long and short futures contracts each represented 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
Emerging Markets Government Bond Index Fund
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015–2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
6. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. Fees assessed on capital share transactions are credited to paid-in capital.
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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $75,000, representing 0.00% of the fund’s net assets and 0.03% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Emerging Markets Government Bond Index Fund
C. 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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
Investments |
| Level 1 ($000) |
| Level 2 ($000) |
| Level 3 ($000) |
Sovereign Bonds |
| — |
| 1,510,312 |
| — |
Temporary Cash Investments |
| 69,111 |
| — |
| — |
Futures Contracts—Assets1 |
| 54 |
| — |
| — |
Futures Contracts—Liabilities1 |
| (70) |
| — |
| — |
Total |
| 69,095 |
| 1,510,312 |
| — |
1 Represents variation margin on the last day of the reporting period.
D. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives, based on cost for U.S. federal income tax purposes were as follows:
|
|
|
| Amount |
|
|
|
| ($000) |
Tax Cost |
|
|
| 1,583,176 |
Gross Unrealized Appreciation |
|
|
| 34,210 |
Gross Unrealized Depreciation |
|
|
| (37,930) |
Net Unrealized Appreciation/(Depreciation) |
|
|
| (3,720) |
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2018, the fund had available capital losses totaling $10,065,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending October 31, 2019; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
E. During the six months ended April 30, 2019, the fund purchased $593,622,000 of investment securities and sold $446,231,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $45,362,000 and $45,968,000, respectively. Total purchases and sales include $149,990,000 and $7,428,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
Emerging Markets Government Bond Index Fund
F. Capital share transactions for each class of shares were:
|
| Six Months Ended |
| Year Ended | ||||
|
| April 30, 2019 |
| October 31, 2018 | ||||
|
| Amount |
| Shares |
| Amount |
| Shares |
|
| ($000) |
| (000) |
| ($000) |
| (000) |
Investor Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 919 |
| 97 |
| 5,198 |
| 528 |
Issued in Lieu of Cash Distributions |
| 183 |
| 19 |
| 418 |
| 43 |
Redeemed |
| (3,203) |
| (339) |
| (7,442) |
| (765) |
Net Increase (Decrease)—Investor Shares |
| (2,101) |
| (223) |
| (1,826) |
| (194) |
ETF Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 160,640 |
| 2,103 |
| 139,633 |
| 1,801 |
Issued in Lieu of Cash Distributions |
| — |
| — |
| — |
| — |
Redeemed |
| (7,416) |
| (100) |
| (24,029) |
| (300) |
Net Increase (Decrease)—ETF Shares |
| 153,224 |
| 2,003 |
| 115,604 |
| 1,501 |
Admiral Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 31,256 |
| 1,637 |
| 85,167 |
| 4,371 |
Issued in Lieu of Cash Distributions |
| 4,849 |
| 254 |
| 9,869 |
| 510 |
Redeemed |
| (52,788) |
| (2,757) |
| (104,236) |
| (5,368) |
Net Increase (Decrease)—Admiral Shares |
| (16,683) |
| (866) |
| (9,200) |
| (487) |
Institutional Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 12,521 |
| 404 |
| — |
| — |
Issued in Lieu of Cash Distributions |
| 615 |
| 20 |
| 879 |
| 28 |
Redeemed |
| (143) |
| (5) |
| — |
| — |
Net Increase (Decrease)—Institutional Shares |
| 12,993 |
| 419 |
| 879 |
| 28 |
1 Includes purchase fees for fiscal 2019 and 2018 of $227,000 and $686,000, respectively (fund totals).
G. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangement
The board of trustees of Vanguard Emerging Markets Government Bond Index Fund has renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Fixed Income Group. The board determined that continuing the fund’s internalized management structure 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 2013, and took into account the organizational depth and stability of the advisor. The board considered that Vanguard has been managing investments for more than four decades. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.
Investment performance
The board considered the performance of the fund since its inception, including any periods of outperformance or underperformance compared with its target 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 well below the average expense ratio charged by funds in its peer group and that the fund’s advisory expenses were also below the peer-group average.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The board concluded that the fund’s arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The board will consider whether to renew the advisory arrangement again after a one-year period.
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447
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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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. All rights reserved. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636. Vanguard Marketing Corporation, Distributor.
Q11202 062019 |
Semiannual Report | April 30, 2019
Vanguard Global Minimum Volatility Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents |
|
|
|
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 25 |
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 April 30, 2019 |
|
|
|
Global Minimum Volatility Fund | Beginning | Ending | Expenses |
Based on Actual Fund Return |
|
|
|
Investor Shares | $1,000.00 | $1,083.41 | $1.14 |
Admiral™ Shares | 1,000.00 | 1,083.97 | 0.78 |
Based on Hypothetical 5% Yearly Return |
|
|
|
Investor Shares | $1,000.00 | $1,023.70 | $1.10 |
Admiral Shares | 1,000.00 | 1,024.05 | 0.75 |
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 0.22% for Investor Shares and 0.15% 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 (181/365).
Global Minimum Volatility Fund
Sector Diversification
As of April 30, 2019
Communication Services |
| 8.6% |
Consumer Discretionary |
| 11.9 |
Consumer Staples |
| 12.1 |
Energy |
| 1.5 |
Financials |
| 20.6 |
Health Care |
| 6.7 |
Industrials |
| 7.5 |
Information Technology |
| 11.1 |
Materials |
| 4.4 |
Real Estate |
| 8.2 |
Utilities |
| 7.4 |
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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 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.
Global Minimum Volatility Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
Common Stocks (98.9%)1 |
|
|
|
| |
Australia (4.2%) |
|
|
|
| |
| Wesfarmers Ltd. |
| 1,033,716 |
| 26,238 |
| Woolworths Group Ltd. |
| 1,128,142 |
| 25,330 |
| Transurban Group |
| 2,541,399 |
| 24,066 |
| AGL Energy Ltd. |
| 1,029,231 |
| 16,147 |
| Sonic Healthcare Ltd. |
| 756,525 |
| 13,681 |
| Amcor Ltd. |
| 765,977 |
| 8,658 |
| ASX Ltd. |
| 128,775 |
| 6,766 |
| Stockland |
| 2,304,878 |
| 6,136 |
| Caltex Australia Ltd. |
| 233,465 |
| 4,477 |
| Cochlear Ltd. |
| 22,276 |
| 2,944 |
| Woodside Petroleum Ltd. |
| 115,122 |
| 2,870 |
| Sydney Airport |
| 532,017 |
| 2,860 |
| Ramsay Health Care Ltd. |
| 52,778 |
| 2,430 |
| Tabcorp Holdings Ltd. |
| 469,780 |
| 1,586 |
| GPT Group |
| 339,894 |
| 1,375 |
^ | JB Hi-Fi Ltd. |
| 75,108 |
| 1,365 |
| Crown Resorts Ltd. |
| 120,123 |
| 1,126 |
| BWP Trust |
| 383,701 |
| 1,001 |
| Aurizon Holdings Ltd. |
| 241,271 |
| 810 |
| Dexus |
| 91,030 |
| 804 |
| Goodman Group |
| 75,807 |
| 705 |
| Insurance Australia Group Ltd. |
| 126,338 |
| 702 |
| Coca-Cola Amatil Ltd. |
| 111,439 |
| 691 |
| Charter Hall Retail REIT |
| 191,055 |
| 627 |
|
|
|
|
| 153,395 |
Austria (0.1%) |
|
|
|
| |
| voestalpine AG |
| 50,217 |
| 1,616 |
|
|
|
|
|
|
Belgium (0.6%) |
|
|
|
| |
| Colruyt SA |
| 193,505 |
| 13,969 |
| UCB SA |
| 29,898 |
| 2,376 |
| Ageas |
| 43,437 |
| 2,296 |
| Elia System Operator SA |
| 22,220 |
| 1,500 |
| Sofina SA |
| 5,842 |
| 1,203 |
| Cofinimmo SA |
| 5,895 |
| 754 |
|
|
|
|
| 22,098 |
Brazil (1.5%) |
|
|
|
| |
| Telefonica Brasil SA ADR |
| 1,687,739 |
| 20,084 |
| Ambev SA ADR |
| 2,440,644 |
| 11,495 |
^ | Gerdau SA ADR |
| 2,181,058 |
| 7,808 |
| Cia Brasileira de Distribuicao ADR |
| 147,703 |
| 3,628 |
| Embraer SA ADR |
| 177,427 |
| 3,550 |
^ | Ultrapar Participacoes SA ADR |
| 546,752 |
| 2,931 |
| TIM Participacoes SA ADR |
| 161,083 |
| 2,386 |
| Vale SA Class B ADR |
| 169,183 |
| 2,162 |
* | BRF SA ADR |
| 175,875 |
| 1,377 |
|
|
|
|
| 55,421 |
Canada (6.0%) |
|
|
|
| |
| BCE Inc. |
| 1,016,434 |
| 45,477 |
| TELUS Corp. |
| 922,745 |
| 33,977 |
^ | Emera Inc. |
| 648,116 |
| 24,339 |
| Shaw Communications Inc. Class B |
| 844,383 |
| 17,099 |
| Bank of Montreal |
| 195,492 |
| 15,441 |
| Dollarama Inc. |
| 467,216 |
| 14,034 |
| National Bank of Canada |
| 271,072 |
| 12,913 |
^ | Canadian Tire Corp. Ltd. Class A |
| 95,470 |
| 10,508 |
| Royal Bank of Canada |
| 130,716 |
| 10,418 |
| Intact Financial Corp. |
| 100,039 |
| 8,185 |
| Pembina Pipeline Corp. |
| 167,720 |
| 5,997 |
| Metro Inc. |
| 86,046 |
| 3,115 |
| RioCan REIT |
| 156,901 |
| 3,017 |
* | CGI Inc. |
| 39,748 |
| 2,861 |
| Fortis Inc. |
| 66,035 |
| 2,441 |
| George Weston Ltd. |
| 27,761 |
| 2,073 |
| Alimentation Couche-Tard Inc. Class B |
| 33,730 |
| 1,989 |
| TransCanada Corp. |
| 41,023 |
| 1,958 |
| Loblaw Cos. Ltd. |
| 21,440 |
| 1,050 |
2 | Hydro One Ltd. |
| 44,707 |
| 723 |
|
|
|
|
| 217,615 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
Chile (0.2%) |
|
|
|
| |
| Enel Americas SA ADR |
| 479,175 |
| 4,188 |
| Banco Santander Chile ADR |
| 47,072 |
| 1,318 |
| Cia Cervecerias Unidas SA ADR |
| 45,370 |
| 1,249 |
^ | Sociedad Quimica y Minera de Chile SA ADR |
| 27,417 |
| 977 |
| Enel Chile SA ADR |
| 152,793 |
| 769 |
|
|
|
|
| 8,501 |
China (0.8%) |
|
|
|
| |
| China Mobile Ltd. ADR |
| 605,824 |
| 28,880 |
|
|
|
|
|
|
Denmark (0.9%) |
|
|
|
| |
| Carlsberg A/S Class B |
| 122,135 |
| 15,792 |
| Novo Nordisk A/S Class B |
| 173,113 |
| 8,482 |
| Coloplast A/S Class B |
| 62,384 |
| 6,739 |
| Tryg A/S |
| 84,900 |
| 2,598 |
| H Lundbeck A/S |
| 12,648 |
| 533 |
|
|
|
|
| 34,144 |
Finland (0.1%) |
|
|
|
| |
| Sampo Oyj Class A |
| 47,215 |
| 2,162 |
| Elisa Oyj |
| 33,276 |
| 1,413 |
| Kesko Oyj Class B |
| 17,152 |
| 892 |
|
|
|
|
| 4,467 |
France (1.6%) |
|
|
|
| |
| Hermes International |
| 18,930 |
| 13,319 |
| Orange SA |
| 486,818 |
| 7,608 |
| Veolia Environnement SA |
| 249,840 |
| 5,909 |
| Pernod Ricard SA |
| 33,104 |
| 5,772 |
| Vinci SA |
| 52,540 |
| 5,307 |
| Thales SA |
| 39,652 |
| 4,738 |
| Sodexo SA |
| 40,591 |
| 4,654 |
| Eiffage SA |
| 33,530 |
| 3,501 |
| Vivendi SA |
| 108,062 |
| 3,137 |
| Accor SA |
| 53,643 |
| 2,260 |
| Lagardere SCA |
| 70,942 |
| 1,932 |
| Alstom SA |
| 15,441 |
| 679 |
|
|
|
|
| 58,816 |
Germany (1.2%) |
|
|
|
| |
| Deutsche Telekom AG |
| 1,120,182 |
| 18,769 |
| Merck KGaA |
| 50,401 |
| 5,372 |
| MTU Aero Engines AG |
| 19,705 |
| 4,649 |
| Hannover Rueck SE |
| 26,902 |
| 4,063 |
| Fielmann AG |
| 43,608 |
| 3,101 |
* | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen |
| 7,322 |
| 1,822 |
| RHOEN-KLINIKUM AG |
| 44,814 |
| 1,322 |
| Aareal Bank AG |
| 31,285 |
| 1,094 |
| Axel Springer SE |
| 18,085 |
| 1,024 |
| Fraport AG Frankfurt Airport Services Worldwide |
| 9,495 |
| 790 |
| Beiersdorf AG |
| 7,179 |
| 786 |
| HUGO BOSS AG |
| 10,449 |
| 730 |
| Brenntag AG |
| 13,208 |
| 713 |
|
|
|
|
| 44,235 |
Hong Kong (2.3%) |
|
|
|
| |
| CLP Holdings Ltd. |
| 2,168,350 |
| 24,610 |
| Hang Seng Bank Ltd. |
| 716,300 |
| 18,820 |
| Power Assets Holdings Ltd. |
| 2,235,000 |
| 15,590 |
| MTR Corp. Ltd. |
| 1,140,500 |
| 6,794 |
| CK Hutchison Holdings Ltd. |
| 562,500 |
| 5,914 |
| BOC Hong Kong |
| 828,500 |
| 3,713 |
| Want Want China Holdings Ltd. |
| 3,487,000 |
| 2,768 |
| CK Infrastructure Holdings Ltd. |
| 271,000 |
| 2,198 |
| Chow Tai Fook Jewellery Group Ltd. |
| 1,969,600 |
| 2,108 |
| Hong Kong & China Gas Co. Ltd. |
| 434,000 |
| 1,036 |
| Jardine Matheson Holdings Ltd. |
| 13,300 |
| 876 |
|
|
|
|
| 84,427 |
India (2.4%) |
|
|
|
| |
| HDFC Bank Ltd. ADR |
| 331,939 |
| 38,057 |
| Infosys Ltd. ADR |
| 3,450,396 |
| 37,126 |
| Dr Reddy’s Laboratories Ltd. ADR |
| 203,918 |
| 8,542 |
2 | Reliance Industries Ltd. GDR |
| 26,070 |
| 1,050 |
* | Tata Motors Ltd. ADR |
| 35,412 |
| 545 |
|
|
|
|
| 85,320 |
Indonesia (0.2%) |
|
|
|
| |
| Telekomunikasi Indonesia Persero Tbk PT ADR |
| 286,923 |
| 7,675 |
|
|
|
|
|
|
Ireland (0.2%) |
|
|
|
| |
| Kerry Group plc Class A |
| 75,359 |
| 8,441 |
|
|
|
|
|
|
Israel (0.3%) |
|
|
|
| |
| Bank Hapoalim BM |
| 920,128 |
| 6,774 |
| Bank Leumi Le-Israel BM |
| 439,128 |
| 3,007 |
| Paz Oil Co. Ltd. |
| 5,690 |
| 829 |
|
|
|
|
| 10,610 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
Italy (1.6%) |
|
|
|
| |
| Assicurazioni Generali SPA |
| 1,293,564 |
| 25,098 |
| Snam SPA |
| 2,321,889 |
| 11,821 |
| Atlantia SPA |
| 221,896 |
| 6,058 |
| Terna Rete Elettrica Nazionale SPA |
| 553,914 |
| 3,323 |
| UnipolSai Assicurazioni SPA |
| 1,201,768 |
| 3,293 |
| Eni SPA |
| 180,000 |
| 3,067 |
| Davide Campari-Milano SPA |
| 268,066 |
| 2,704 |
| Hera SPA |
| 231,150 |
| 823 |
|
|
|
|
| 56,187 |
Japan (4.8%) |
|
|
|
| |
| Canon Inc. |
| 701,800 |
| 19,474 |
^ | Yamada Denki Co. Ltd. |
| 3,937,600 |
| 18,666 |
| Skylark Holdings Co. Ltd. |
| 1,046,300 |
| 17,235 |
| Japan Tobacco Inc. |
| 668,600 |
| 15,450 |
| NEC Corp. |
| 375,600 |
| 12,685 |
| Japan Post Holdings Co. Ltd. |
| 963,600 |
| 10,792 |
^ | Sawai Pharmaceutical Co. Ltd. |
| 164,600 |
| 8,844 |
| Kagome Co. Ltd. |
| 230,700 |
| 6,302 |
| Mitsubishi Tanabe Pharma Corp. |
| 486,000 |
| 6,117 |
| Toyo Suisan Kaisha Ltd. |
| 132,600 |
| 5,063 |
| ABC-Mart Inc. |
| 76,800 |
| 4,773 |
| Toho Co. Ltd. |
| 86,600 |
| 3,637 |
| FUJIFILM Holdings Corp. |
| 64,400 |
| 3,009 |
| Nippon Steel Corp. |
| 154,200 |
| 2,758 |
| Sankyo Co. Ltd. |
| 68,300 |
| 2,697 |
| Nitori Holdings Co. Ltd. |
| 22,600 |
| 2,696 |
| Japan Airlines Co. Ltd. |
| 72,100 |
| 2,351 |
^ | Chugoku Electric Power Co. Inc. |
| 185,000 |
| 2,209 |
| Taisho Pharmaceutical Holdings Co. Ltd. |
| 20,600 |
| 1,906 |
| Suzuken Co. Ltd. |
| 30,200 |
| 1,741 |
| Calbee Inc. |
| 60,600 |
| 1,678 |
| MOS Food Services Inc. |
| 60,500 |
| 1,420 |
| Takashimaya Co. Ltd. |
| 108,200 |
| 1,217 |
| Isetan Mitsukoshi Holdings Ltd. |
| 124,600 |
| 1,188 |
| MS&AD Insurance Group Holdings Inc. |
| 37,900 |
| 1,178 |
| Mitsubishi Materials Corp. |
| 45,000 |
| 1,170 |
| ANA Holdings Inc. |
| 33,100 |
| 1,158 |
| Shimano Inc. |
| 7,600 |
| 1,117 |
| Nisshin Seifun Group Inc. |
| 46,800 |
| 1,091 |
| Kewpie Corp. |
| 46,300 |
| 1,072 |
| Ezaki Glico Co. Ltd. |
| 19,600 |
| 1,034 |
| Seiko Epson Corp. |
| 64,000 |
| 1,027 |
| Marui Group Co. Ltd. |
| 45,500 |
| 926 |
| Nissin Foods Holdings Co. Ltd. |
| 13,400 |
| 887 |
| Nippon Television Holdings Inc. |
| 59,900 |
| 877 |
| Kamigumi Co. Ltd. |
| 36,000 |
| 860 |
| Tsumura & Co. |
| 27,900 |
| 858 |
| Oriental Land Co. Ltd. |
| 7,500 |
| 830 |
| Lawson Inc. |
| 16,400 |
| 766 |
| MediPal Holdings Corp. |
| 33,700 |
| 758 |
| Ajinomoto Co. Inc. |
| 44,900 |
| 726 |
^ | J Front Retailing Co. Ltd. |
| 53,100 |
| 649 |
| Earth Corp. |
| 13,200 |
| 605 |
| Japan Post Bank Co. Ltd. |
| 49,500 |
| 545 |
| Studio Alice Co. Ltd. |
| 28,500 |
| 526 |
|
|
|
|
| 172,568 |
Mexico (0.6%) |
|
|
|
| |
| Fomento Economico Mexicano SAB de CV ADR |
| 230,080 |
| 22,453 |
| Grupo Televisa SAB ADR |
| 66,558 |
| 675 |
|
|
|
|
| 23,128 |
Netherlands (0.5%) |
|
|
|
| |
^ | Koninklijke Ahold Delhaize NV |
| 477,570 |
| 11,510 |
^ | Heineken NV |
| 45,502 |
| 4,919 |
|
|
|
|
| 16,429 |
New Zealand (0.2%) |
|
|
|
| |
| Spark New Zealand Ltd. |
| 2,368,278 |
| 5,811 |
|
|
|
|
|
|
Norway (0.5%) |
|
|
|
| |
^ | Orkla ASA |
| 1,361,667 |
| 10,687 |
^ | Telenor ASA |
| 347,132 |
| 6,978 |
| Norsk Hydro ASA |
| 294,483 |
| 1,268 |
|
|
|
|
| 18,933 |
Poland (0.2%) |
|
|
|
| |
| Powszechny Zaklad Ubezpieczen SA |
| 270,576 |
| 2,978 |
| Bank Polska Kasa Opieki SA |
| 94,746 |
| 2,828 |
* | KGHM Polska Miedz SA |
| 102,551 |
| 2,769 |
|
|
|
|
| 8,575 |
Singapore (0.9%) |
|
|
|
| |
| Singapore Telecommunications Ltd. |
| 4,275,200 |
| 9,973 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Oversea-Chinese Banking Corp. Ltd. |
| 935,348 |
| 8,332 |
| United Overseas Bank Ltd. |
| 285,300 |
| 5,843 |
| Ascendas REIT |
| 986,300 |
| 2,179 |
| Keppel Corp. Ltd. |
| 270,500 |
| 1,348 |
| Singapore Airlines Ltd. |
| 183,340 |
| 1,306 |
| Wilmar International Ltd. |
| 480,400 |
| 1,285 |
| Singapore Technologies Engineering Ltd. |
| 267,000 |
| 778 |
|
|
|
|
| 31,044 |
South Africa (0.1%) |
|
|
|
| |
| AngloGold Ashanti Ltd. ADR |
| 256,701 |
| 3,029 |
|
|
|
|
|
|
South Korea (2.9%) |
|
|
|
| |
| Samsung Electronics Co. Ltd. |
| 467,215 |
| 18,370 |
| Korea Zinc Co. Ltd. |
| 44,437 |
| 17,236 |
| KT&G Corp. |
| 193,007 |
| 16,883 |
| KT Corp. |
| 510,114 |
| 11,939 |
| SK Telecom Co. Ltd. |
| 25,404 |
| 5,388 |
| Samsung Life Insurance Co. Ltd. |
| 67,281 |
| 4,894 |
| Kangwon Land Inc. |
| 116,922 |
| 3,406 |
| Samsung Fire & Marine Insurance Co. Ltd. |
| 11,430 |
| 2,976 |
| Maeil Dairies Co. Ltd. |
| 33,866 |
| 2,556 |
| Yuhan Corp. |
| 11,398 |
| 2,398 |
| GS Holdings Corp. |
| 51,116 |
| 2,278 |
| Shinhan Financial Group Co. Ltd. |
| 59,733 |
| 2,258 |
| Lotte Shopping Co. Ltd. |
| 14,330 |
| 2,188 |
| Samsung C&T Corp. |
| 19,503 |
| 1,714 |
| Woori Financial Group Inc. |
| 128,814 |
| 1,527 |
| Samsung SDS Co. Ltd. |
| 7,394 |
| 1,375 |
| SK Holdings Co. Ltd. |
| 6,235 |
| 1,371 |
| Hyundai Steel Co. |
| 29,023 |
| 1,153 |
| Macquarie Korea Infrastructure Fund |
| 106,880 |
| 1,029 |
| Shinsegae Inc. |
| 3,444 |
| 1,004 |
| Samsung Electronics Co. Ltd. Preference Shares |
| 22,415 |
| 715 |
| Korea Aerospace Industries Ltd. |
| 23,640 |
| 708 |
| Hyundai Department Store Co. Ltd. |
| 6,499 |
| 565 |
|
|
|
|
| 103,931 |
Spain (1.1%) |
|
|
|
| |
| Enagas SA |
| 274,214 |
| 7,822 |
* | Ferrovial SA |
| 303,591 |
| 7,487 |
| Merlin Properties Socimi SA |
| 504,220 |
| 6,878 |
2 | Aena SME SA |
| 33,509 |
| 6,222 |
| Endesa SA |
| 140,657 |
| 3,509 |
| Red Electrica Corp. SA |
| 135,636 |
| 2,815 |
* | ACS Actividades de Construccion y Servicios SA |
| 39,934 |
| 1,836 |
| Viscofan SA |
| 15,824 |
| 952 |
| Ebro Foods SA |
| 40,418 |
| 853 |
| Acerinox SA |
| 65,321 |
| 680 |
|
|
|
|
| 39,054 |
Sweden (0.6%) |
|
|
|
| |
| Swedish Match AB |
| 282,008 |
| 13,751 |
| ICA Gruppen AB |
| 96,912 |
| 3,507 |
| Essity AB Class B |
| 99,532 |
| 2,951 |
| Boliden AB |
| 56,786 |
| 1,690 |
|
|
|
|
| 21,899 |
Switzerland (2.0%) |
|
|
|
| |
| Swisscom AG |
| 55,064 |
| 25,657 |
| Baloise Holding AG |
| 65,907 |
| 11,299 |
| Kuehne & Nagel International AG |
| 62,533 |
| 9,090 |
| Sonova Holding AG |
| 34,103 |
| 6,888 |
| Logitech International SA |
| 144,014 |
| 5,643 |
| Swiss Re AG |
| 49,138 |
| 4,731 |
| Swiss Prime Site AG |
| 35,518 |
| 2,852 |
| Flughafen Zurich AG |
| 17,129 |
| 2,824 |
| dormakaba Holding AG |
| 2,472 |
| 1,867 |
| Allreal Holding AG |
| 9,242 |
| 1,475 |
|
|
|
|
| 72,326 |
Taiwan (0.4%) |
|
|
|
| |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR |
| 174,204 |
| 7,634 |
| Chunghwa Telecom Co. Ltd. ADR |
| 158,182 |
| 5,701 |
| United Microelectronics Corp. ADR |
| 995,508 |
| 2,160 |
|
|
|
|
| 15,495 |
United Kingdom (9.6%) |
|
|
|
| |
| GlaxoSmithKline plc |
| 1,862,529 |
| 38,262 |
| Compass Group plc |
| 1,270,347 |
| 28,905 |
| Diageo plc |
| 590,893 |
| 24,911 |
| Whitbread plc |
| 285,365 |
| 16,614 |
| Smith & Nephew plc |
| 741,475 |
| 14,335 |
| Coca-Cola HBC AG |
| 395,668 |
| 14,171 |
| Wm Morrison Supermarkets plc |
| 4,548,062 |
| 12,819 |
| Informa plc |
| 1,150,577 |
| 11,699 |
| B&M European Value Retail SA |
| 2,078,091 |
| 10,713 |
| Marks & Spencer Group plc |
| 2,821,254 |
| 10,524 |
| Tate & Lyle plc |
| 984,798 |
| 9,870 |
| BHP Group plc |
| 398,717 |
| 9,412 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Segro plc |
| 993,965 |
| 8,807 |
| Rightmove plc |
| 1,240,657 |
| 8,773 |
| Halma plc |
| 370,537 |
| 8,719 |
| Royal Dutch Shell plc Class B |
| 263,565 |
| 8,506 |
| AstraZeneca plc |
| 107,134 |
| 7,981 |
| RSA Insurance Group plc |
| 1,090,222 |
| 7,729 |
| InterContinental Hotels Group plc |
| 106,481 |
| 6,897 |
| Legal & General Group plc |
| 1,669,657 |
| 6,072 |
| Land Securities Group plc |
| 472,969 |
| 5,700 |
| British Land Co. plc |
| 695,552 |
| 5,397 |
| BAE Systems plc |
| 786,225 |
| 5,053 |
| Direct Line Insurance Group plc |
| 1,120,406 |
| 4,821 |
| Next plc |
| 63,598 |
| 4,788 |
| Pearson plc |
| 424,143 |
| 4,595 |
| BT Group plc |
| 1,487,778 |
| 4,440 |
| Rio Tinto plc |
| 62,304 |
| 3,635 |
| Bunzl plc |
| 118,257 |
| 3,567 |
| Associated British Foods plc |
| 94,231 |
| 3,148 |
| Tesco plc |
| 858,633 |
| 2,801 |
2 | Merlin Entertainments plc |
| 532,359 |
| 2,546 |
| WH Smith plc |
| 94,243 |
| 2,521 |
| Imperial Brands plc |
| 77,420 |
| 2,463 |
| SSE plc |
| 157,578 |
| 2,358 |
| Admiral Group plc |
| 81,532 |
| 2,348 |
| Smiths Group plc |
| 107,480 |
| 2,140 |
| Meggitt plc |
| 292,955 |
| 2,085 |
| Derwent London plc |
| 46,306 |
| 1,916 |
| DCC plc |
| 21,168 |
| 1,895 |
| UDG Healthcare plc |
| 205,596 |
| 1,765 |
| Sage Group plc |
| 181,517 |
| 1,721 |
| Inchcape plc |
| 208,142 |
| 1,671 |
| UK Commercial Property REIT Ltd. |
| 899,207 |
| 1,038 |
| J Sainsbury plc |
| 339,976 |
| 988 |
| HSBC Holdings plc |
| 112,702 |
| 982 |
| Great Portland Estates plc |
| 79,873 |
| 787 |
| Kingfisher plc |
| 203,970 |
| 703 |
| Antofagasta plc |
| 59,001 |
| 701 |
| F&C Commercial Property Trust Ltd. |
| 434,498 |
| 697 |
| Paddy Power Betfair plc |
| 7,479 |
| 633 |
|
|
|
|
| 345,622 |
United States (50.3%) |
|
|
|
| |
Communication Services (0.3%) |
|
|
|
| |
| Cable One Inc. |
| 6,498 |
| 6,891 |
| John Wiley & Sons Inc. Class A |
| 69,936 |
| 3,230 |
| Omnicom Group Inc. |
| 18,451 |
| 1,477 |
|
|
|
|
| 11,598 |
Consumer Discretionary (5.5%) |
|
|
|
| |
| Dollar General Corp. |
| 267,393 |
| 33,716 |
| Yum! Brands Inc. |
| 248,884 |
| 25,981 |
| Service Corp. International |
| 426,784 |
| 17,758 |
* | Dollar Tree Inc. |
| 144,093 |
| 16,035 |
* | Bright Horizons Family Solutions Inc. |
| 111,948 |
| 14,346 |
| Yum China Holdings Inc. |
| 279,310 |
| 13,278 |
| TJX Cos. Inc. |
| 227,728 |
| 12,498 |
* | Grand Canyon Education Inc. |
| 89,552 |
| 10,378 |
| Genuine Parts Co. |
| 78,680 |
| 8,068 |
| Graham Holdings Co. Class B |
| 10,639 |
| 7,909 |
| Pool Corp. |
| 40,381 |
| 7,420 |
* | Murphy USA Inc. |
| 63,885 |
| 5,460 |
| Hyatt Hotels Corp. Class A |
| 70,769 |
| 5,430 |
| Dunkin’ Brands Group Inc. |
| 52,813 |
| 3,941 |
| Choice Hotels International Inc. |
| 46,005 |
| 3,820 |
* | ServiceMaster Global Holdings Inc. |
| 62,405 |
| 3,060 |
| Ross Stores Inc. |
| 26,600 |
| 2,598 |
| Churchill Downs Inc. |
| 15,933 |
| 1,607 |
| Tiffany & Co. |
| 13,509 |
| 1,457 |
* | Rent-A-Center Inc. |
| 48,896 |
| 1,219 |
| Aaron’s Inc. |
| 18,457 |
| 1,028 |
| Penske Automotive Group Inc. |
| 19,401 |
| 891 |
|
|
|
|
| 197,898 |
Consumer Staples (3.6%) |
|
|
|
| |
| Colgate-Palmolive Co. |
| 619,193 |
| 45,071 |
| Church & Dwight Co. Inc. |
| 254,772 |
| 19,095 |
| PepsiCo Inc. |
| 106,423 |
| 13,628 |
| Archer-Daniels-Midland Co. |
| 275,461 |
| 12,286 |
| Procter & Gamble Co. |
| 73,366 |
| 7,812 |
| Vector Group Ltd. |
| 724,641 |
| 6,906 |
| Sysco Corp. |
| 66,363 |
| 4,670 |
| Hershey Co. |
| 33,995 |
| 4,244 |
| Lancaster Colony Corp. |
| 27,295 |
| 4,059 |
| Flowers Foods Inc. |
| 131,572 |
| 2,860 |
| Ingredion Inc. |
| 27,555 |
| 2,611 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Mondelez International Inc. Class A |
| 46,154 |
| 2,347 |
| Coca-Cola European Partners plc |
| 27,089 |
| 1,452 |
| J&J Snack Foods Corp. |
| 8,387 |
| 1,318 |
* | Nomad Foods Ltd. |
| 48,258 |
| 1,004 |
| Kellogg Co. |
| 16,420 |
| 990 |
| PriceSmart Inc. |
| 13,028 |
| 779 |
|
|
|
|
| 131,132 |
Energy (0.0%) |
|
|
|
| |
| Ship Finance International Ltd. |
| 77,542 |
| 989 |
|
|
|
|
|
|
Financials (13.3%) |
|
|
|
| |
| Starwood Property Trust Inc. |
| 2,375,669 |
| 54,759 |
| AGNC Investment Corp. |
| 2,948,872 |
| 52,460 |
| Blackstone Mortgage Trust Inc. Class A |
| 1,447,964 |
| 51,533 |
| Annaly Capital Management Inc. |
| 3,498,857 |
| 35,303 |
| Apollo Commercial Real Estate Finance Inc. |
| 1,565,621 |
| 29,340 |
| Renaissance Re Holdings Ltd. |
| 149,865 |
| 23,283 |
| Two Harbors Investment Corp. |
| 1,393,532 |
| 19,314 |
3 | Brown & Brown Inc. |
| 602,566 |
| 19,132 |
| Washington Federal Inc. |
| 551,294 |
| 18,270 |
| White Mountains Insurance Group Ltd. |
| 16,899 |
| 15,869 |
| MFA Financial Inc. |
| 1,988,332 |
| 14,932 |
| Arthur J Gallagher & Co. |
| 176,880 |
| 14,791 |
| Chimera Investment Corp. |
| 704,921 |
| 13,513 |
| New Residential Investment Corp. |
| 775,969 |
| 13,044 |
| Marsh & McLennan Cos. Inc. |
| 115,997 |
| 10,937 |
| Torchmark Corp. |
| 103,643 |
| 9,085 |
| Willis Towers Watson plc |
| 46,205 |
| 8,517 |
| WR Berkley Corp. |
| 133,764 |
| 8,200 |
* | Arch Capital Group Ltd. |
| 195,274 |
| 6,596 |
| Bank of Hawaii Corp. |
| 80,035 |
| 6,593 |
| Capitol Federal Financial Inc. |
| 455,900 |
| 6,291 |
| Invesco Mortgage Capital Inc. |
| 266,150 |
| 4,344 |
| TFS Financial Corp. |
| 219,700 |
| 3,656 |
| ProAssurance Corp. |
| 95,916 |
| 3,600 |
| Oritani Financial Corp. |
| 206,400 |
| 3,581 |
| Redwood Trust Inc. |
| 206,248 |
| 3,374 |
| American Financial Group Inc. |
| 32,163 |
| 3,330 |
| Commerce Bancshares Inc. |
| 53,696 |
| 3,245 |
| Northwest Bancshares Inc. |
| 180,081 |
| 3,139 |
| Aflac Inc. |
| 57,663 |
| 2,905 |
| Hanover Insurance Group Inc. |
| 18,073 |
| 2,180 |
| Capstead Mortgage Corp. |
| 241,849 |
| 2,078 |
| ARMOUR Residential REIT Inc. |
| 99,930 |
| 1,907 |
| Everest Re Group Ltd. |
| 7,759 |
| 1,827 |
| Cincinnati Financial Corp. |
| 17,792 |
| 1,711 |
| Loews Corp. |
| 32,594 |
| 1,672 |
| Fidelity National Financial Inc. |
| 38,990 |
| 1,558 |
* | Markel Corp. |
| 1,424 |
| 1,526 |
| Axis Capital Holdings Ltd. |
| 23,799 |
| 1,353 |
* | Alleghany Corp. |
| 1,988 |
| 1,306 |
| Granite Point Mortgage Trust Inc. |
| 54,907 |
| 1,056 |
| Old Republic International Corp. |
| 36,295 |
| 812 |
| Cullen/Frost Bankers Inc. |
| 6,826 |
| 694 |
| Safety Insurance Group Inc. |
| 6,600 |
| 613 |
|
|
|
|
| 483,229 |
Health Care (2.7%) |
|
|
|
| |
| Chemed Corp. |
| 98,515 |
| 32,193 |
| Quest Diagnostics Inc. |
| 302,877 |
| 29,191 |
| Johnson & Johnson |
| 76,482 |
| 10,799 |
* | Premier Inc. Class A |
| 266,957 |
| 8,871 |
| Universal Health Services Inc. Class B |
| 53,444 |
| 6,780 |
| STERIS plc |
| 29,223 |
| 3,828 |
* | China Biologic Products Holdings Inc. |
| 24,363 |
| 2,443 |
* | Catalent Inc. |
| 33,201 |
| 1,488 |
| Encompass Health Corp. |
| 19,631 |
| 1,265 |
|
|
|
|
| 96,858 |
Industrials (3.9%) |
|
|
|
| |
| Waste Management Inc. |
| 276,960 |
| 29,729 |
| Republic Services Inc. Class A |
| 345,544 |
| 28,618 |
| Expeditors International of Washington Inc. |
| 352,314 |
| 27,981 |
| Carlisle Cos. Inc. |
| 128,894 |
| 18,228 |
| Rollins Inc. |
| 202,372 |
| 7,826 |
| BWX Technologies Inc. |
| 146,503 |
| 7,486 |
| Hexcel Corp. |
| 74,622 |
| 5,277 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
* | Teledyne Technologies Inc. |
| 17,400 |
| 4,324 |
| EMCOR Group Inc. |
| 36,466 |
| 3,068 |
| Harris Corp. |
| 14,546 |
| 2,451 |
| National Presto Industries Inc. |
| 17,011 |
| 1,812 |
| Valmont Industries Inc. |
| 10,744 |
| 1,449 |
| HEICO Corp. |
| 10,113 |
| 1,067 |
| AMERCO |
| 2,688 |
| 1,003 |
| UniFirst Corp. |
| 5,821 |
| 920 |
* | AECOM |
| 22,639 |
| 767 |
|
|
|
|
| 142,006 |
Information Technology (7.6%) |
|
|
|
| |
| Paychex Inc. |
| 460,574 |
| 38,831 |
| Jack Henry & Associates Inc. |
| 258,605 |
| 38,548 |
| Amdocs Ltd. |
| 631,018 |
| 34,756 |
| Broadridge Financial Solutions Inc. |
| 166,049 |
| 19,615 |
| Genpact Ltd. |
| 499,498 |
| 18,132 |
| MAXIMUS Inc. |
| 229,174 |
| 16,879 |
* | Black Knight Inc. |
| 239,329 |
| 13,503 |
| Accenture plc Class A |
| 67,886 |
| 12,401 |
| Motorola Solutions Inc. |
| 78,062 |
| 11,312 |
| Western Union Co. |
| 572,497 |
| 11,129 |
| Fidelity National Information Services Inc. |
| 90,588 |
| 10,502 |
| Automatic Data Processing Inc. |
| 55,569 |
| 9,135 |
| Amphenol Corp. Class A |
| 82,408 |
| 8,205 |
| Booz Allen Hamilton Holding Corp. Class A |
| 102,212 |
| 6,060 |
| Dolby Laboratories Inc. Class A |
| 59,626 |
| 3,857 |
| InterDigital Inc. |
| 51,017 |
| 3,336 |
^,* | Pagseguro Digital Ltd. Class A |
| 108,942 |
| 2,839 |
* | Check Point Software Technologies Ltd. |
| 23,274 |
| 2,811 |
^,* | ViaSat Inc. |
| 30,210 |
| 2,744 |
* | Gartner Inc. |
| 14,428 |
| 2,294 |
* | FleetCor Technologies Inc. |
| 6,793 |
| 1,773 |
| FLIR Systems Inc. |
| 26,398 |
| 1,397 |
| CDK Global Inc. |
| 19,630 |
| 1,184 |
* | ExlService Holdings Inc. |
| 19,412 |
| 1,153 |
* | Viavi Solutions Inc. |
| 58,513 |
| 778 |
* | CoreLogic Inc. |
| 18,528 |
| 752 |
|
|
|
|
| 273,926 |
Materials (2.5%) |
|
|
|
| |
| AptarGroup Inc. |
| 288,869 |
| 32,134 |
| Kaiser Aluminum Corp. |
| 151,369 |
| 14,895 |
| Sonoco Products Co. |
| 219,875 |
| 13,865 |
| Reliance Steel & Aluminum Co. |
| 119,285 |
| 10,969 |
| Royal Gold Inc. |
| 101,717 |
| 8,856 |
| Avery Dennison Corp. |
| 49,973 |
| 5,530 |
| Compass Minerals International Inc. |
| 37,275 |
| 2,139 |
| Silgan Holdings Inc. |
| 56,507 |
| 1,692 |
| Sensient Technologies Corp. |
| 8,876 |
| 622 |
|
|
|
|
| 90,702 |
Real Estate (6.7%) |
|
|
|
| |
| Equity Commonwealth |
| 1,006,498 |
| 32,007 |
| Mid-America Apartment Communities Inc. |
| 162,078 |
| 17,733 |
| Highwoods Properties Inc. |
| 315,604 |
| 14,070 |
| Equity LifeStyle Properties Inc. |
| 115,340 |
| 13,460 |
| Rayonier Inc. |
| 379,328 |
| 12,059 |
| PS Business Parks Inc. |
| 75,194 |
| 11,551 |
3 | Apple Hospitality REIT Inc. |
| 698,594 |
| 11,492 |
| Sun Communities Inc. |
| 87,944 |
| 10,824 |
| UDR Inc. |
| 236,106 |
| 10,613 |
| Gaming and Leisure Properties Inc. |
| 258,818 |
| 10,451 |
| Camden Property Trust |
| 91,847 |
| 9,244 |
| Lamar Advertising Co. Class A |
| 92,747 |
| 7,667 |
| WP Carey Inc. |
| 91,102 |
| 7,226 |
| American Homes 4 Rent Class A |
| 298,727 |
| 7,164 |
3 | Hudson Pacific Properties Inc. |
| 187,041 |
| 6,520 |
| EastGroup Properties Inc. |
| 52,849 |
| 6,042 |
| First Industrial Realty Trust Inc. |
| 166,495 |
| 5,872 |
| STAG Industrial Inc. |
| 187,110 |
| 5,385 |
| Rexford Industrial Realty Inc. |
| 113,609 |
| 4,305 |
| Douglas Emmett Inc. |
| 98,502 |
| 4,057 |
| Terreno Realty Corp. |
| 85,311 |
| 3,809 |
| Piedmont Office Realty Trust Inc. Class A |
| 161,294 |
| 3,358 |
| Healthcare Realty Trust Inc. |
| 97,524 |
| 3,012 |
| Empire State Realty Trust Inc. |
| 175,348 |
| 2,711 |
Global Minimum Volatility Fund
|
|
|
|
| Market |
|
|
|
|
| Value* |
|
|
| Shares |
| ($000) |
| National Health Investors Inc. |
| 34,742 |
| 2,621 |
| Liberty Property Trust |
| 49,083 |
| 2,437 |
| AvalonBay Communities Inc. |
| 11,968 |
| 2,405 |
| Healthcare Trust of America Inc. Class A |
| 61,219 |
| 1,688 |
| Invitation Homes Inc. |
| 67,685 |
| 1,683 |
| Life Storage Inc. |
| 16,718 |
| 1,593 |
| Duke Realty Corp. |
| 50,390 |
| 1,568 |
| CubeSmart |
| 47,614 |
| 1,519 |
| Kilroy Realty Corp. |
| 17,238 |
| 1,326 |
| Urstadt Biddle Properties Inc. Class A |
| 40,998 |
| 899 |
| Alexandria Real Estate Equities Inc. |
| 5,878 |
| 837 |
| Corporate Office Properties Trust |
| 25,619 |
| 714 |
| Universal Health Realty Income Trust |
| 8,800 |
| 713 |
| Paramount Group Inc. |
| 38,100 |
| 552 |
|
|
|
|
| 241,187 |
Utilities (4.2%) |
|
|
|
| |
| IDACORP Inc. |
| 201,663 |
| 19,969 |
| Hawaiian Electric Industries Inc. |
| 428,982 |
| 17,794 |
| DTE Energy Co. |
| 131,545 |
| 16,536 |
| Ameren Corp. |
| 192,534 |
| 14,011 |
| NorthWestern Corp. |
| 196,085 |
| 13,697 |
| ALLETE Inc. |
| 110,293 |
| 8,983 |
| Sempra Energy |
| 65,314 |
| 8,357 |
| Portland General Electric Co. |
| 159,385 |
| 8,337 |
| OGE Energy Corp. |
| 176,784 |
| 7,485 |
| Southern Co. |
| 133,667 |
| 7,114 |
| MDU Resources Group Inc. |
| 253,723 |
| 6,635 |
| CMS Energy Corp. |
| 77,812 |
| 4,322 |
| WEC Energy Group Inc. |
| 51,120 |
| 4,009 |
| Pinnacle West Capital Corp. |
| 37,117 |
| 3,536 |
| NiSource Inc. |
| 117,675 |
| 3,269 |
| Eversource Energy |
| 36,445 |
| 2,612 |
| El Paso Electric Co. |
| 38,281 |
| 2,339 |
| Alliant Energy Corp. |
| 47,673 |
| 2,252 |
| Black Hills Corp. |
| 13,028 |
| 948 |
|
|
|
|
| 152,205 |
|
|
|
|
| 1,821,730 |
Total Common Stocks |
|
|
| 3,581,422 | |
Temporary Cash Investment (3.0%)1 |
|
|
|
| |
Money Market Fund (3.0%) |
|
|
|
| |
4,5 | Vanguard Market Liquidity Fund, 2.545% |
| 1,087,555 |
| 108,766 |
Total Investments (101.9%) |
|
|
| 3,690,188 |
|
| Amount |
|
| ($000) |
Other Assets and Liabilities (-1.9%) |
|
|
Other Assets |
|
|
Investment in Vanguard |
| 176 |
Receivables for Accrued Income |
| 9,559 |
Receivables for Capital Shares Issued |
| 4,335 |
Variation Margin Receivable—Futures Contracts |
| 57 |
Unrealized Appreciation—Forwards Contracts |
| 14,651 |
Other Assets |
| 593 |
Total Other Assets |
| 29,371 |
Liabilities |
|
|
Payables for Investment Securities Purchased |
| (28) |
Collateral for Securities on Loan |
| (93,704) |
Payables for Capital Shares Redeemed |
| (5,075) |
Payables to Vanguard |
| (557) |
Variation Margin Payable—Futures Contracts |
| (7) |
Unrealized Depreciation—Forwards Contracts |
| (173) |
Total Liabilities |
| (99,544) |
Net Assets (100%) |
| 3,620,015 |
Global Minimum Volatility Fund
At April 30, 2019, net assets consisted of:
|
| Amount |
|
| ($000) |
Paid-in Capital |
| 3,198,115 |
Total Distributable Earnings (Loss) |
| 421,900 |
Net Assets |
| 3,620,015 |
|
|
|
Investor Shares — Net Assets |
|
|
Applicable to 41,261,031 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 574,745 |
Net Asset Value Per Share — Investor Shares |
| $13.93 |
|
|
|
Admiral Shares — Net Assets |
|
|
Applicable to 109,250,934 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 3,045,270 |
Net Asset Value Per Share — Admiral Shares |
| $27.87 |
· | See Note A in Notes to Financial Statements. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $66,495,000. |
* | Non-income-producing security. |
1 | The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 99.8% and 2.1%, respectively, of net assets. |
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 April 30, 2019, the aggregate value of these securities was $10,541,000, representing 0.3% of net assets. |
3 | Securities with a value of $2,757,000 have been segregated as initial margin for open futures contracts. |
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 | Includes $93,704,000 of collateral received for securities on loan. |
| ADR—American Depositary Receipt. |
| GDR—Global Depositary Receipt. |
| REIT—Real Estate Investment Trust. |
Global Minimum Volatility Fund
Derivative Financial Instruments Outstanding as of Period End | ||||||
| ||||||
Futures Contracts | ||||||
|
|
|
|
| ($000) | |
|
|
|
| Value and | ||
|
| Number of |
| Unrealized | ||
|
| Long (Short) | Notional | Appreciation | ||
| Expiration | Contracts | Amount | (Depreciation) | ||
Long Futures Contracts |
|
|
|
| ||
E-mini S&P 500 Index | June 2019 | 170 | 25,062 | 225 | ||
Dow Jones EURO STOXX 50 Index | June 2019 | 73 | 2,824 | 183 | ||
Topix Index | June 2019 | 9 | 1,305 | 51 | ||
FTSE 100 Index | June 2019 | 12 | 1,153 | 48 | ||
S&P ASX 200 Index | June 2019 | 6 | 666 | 13 | ||
|
|
|
|
| 520 |
Forward Currency Contracts |
|
|
|
|
|
|
|
|
| Contract |
|
|
|
|
| Unrealized | Unrealized |
| Settlement |
| Contract Amount (000) | Appreciation | (Depreciation) | |||
Counterparty | Date |
|
| Receive |
| Deliver | ($000) | ($000) |
Goldman Sachs International | 5/15/19 |
| EUR | 16,498 | USD | 18,664 | — | (136) |
Toronto-Dominion Bank | 5/15/19 |
| HKD | 73,540 | USD | 9,378 | — | (1) |
BNP Paribas | 5/15/19 |
| USD | 329,278 | GBP | 251,418 | 1,150 | — |
Deutsche Bank AG | 5/15/19 |
| USD | 267,479 | EUR | 236,565 | 1,790 | — |
RBC Capital Markets LLC | 5/15/19 |
| USD | 219,913 | CAD | 292,186 | 1,727 | — |
Deutsche Bank AG | 5/15/19 |
| USD | 168,135 | JPY | 18,623,710 | 730 | — |
Deutsche Bank AG | 5/15/19 |
| USD | 152,988 | AUD | 213,807 | 2,206 | — |
BNP Paribas | 5/15/19 |
| USD | 118,957 | HKD | 932,554 | 52 | — |
BNP Paribas | 5/15/19 |
| USD | 106,664 | KRW | 121,465,062 | 2,627 | — |
Barclays Bank plc | 5/15/19 |
| USD | 84,424 | INR | 5,886,186 | — | (36) |
BNP Paribas | 5/15/19 |
| USD | 69,062 | CHF | 68,763 | 1,476 | — |
RBC Capital Markets LLC | 5/15/19 |
| USD | 57,546 | BRL | 222,298 | 920 | — |
Barclays Bank plc | 5/15/19 |
| USD | 28,727 | SGD | 38,834 | 168 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 26,128 | DKK | 172,379 | 193 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 24,265 | SEK | 223,301 | 723 | — |
Barclays Bank plc | 5/15/19 |
| USD | 21,287 | MXN | 404,537 | 1 | — |
Deutsche Bank AG | 5/15/19 |
| USD | 15,987 | NOK | 136,191 | 191 | — |
Barclays Bank plc | 5/15/19 |
| USD | 14,062 | TWD | 433,058 | 34 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 13,408 | GBP | 10,265 | 11 | — |
Goldman Sachs International | 5/15/19 |
| USD | 10,170 | ILS | 36,328 | 63 | — |
BNP Paribas | 5/15/19 |
| USD | 8,326 | PLN | 31,581 | 58 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 8,295 | CLP | 5,487,273 | 194 | — |
Deutsche Bank AG | 5/15/19 |
| USD | 7,624 | IDR | 108,454,915 | 27 | — |
BNP Paribas | 5/15/19 |
| USD | 5,274 | NZD | 7,807 | 58 | — |
Global Minimum Volatility Fund
Forward Currency Contracts (continued) |
|
|
|
|
|
|
| |
| Contract |
|
|
|
|
| Unrealized | Unrealized |
| Settlement |
| Contract Amount (000) | Appreciation | (Depreciation) | |||
Counterparty | Date |
|
| Receive |
| Deliver | ($000) | ($000) |
Goldman Sachs International | 5/15/19 |
| USD | 5,000 | ZAR | 70,462 | 83 | — |
BNP Paribas | 5/15/19 |
| USD | 3,675 | DKK | 24,240 | 27 | — |
Barclays Bank plc | 5/15/19 |
| USD | 3,450 | GBP | 2,637 | 9 | — |
Goldman Sachs International | 5/15/19 |
| USD | 2,826 | SGD | 3,820 | 17 | — |
Goldman Sachs International | 5/15/19 |
| USD | 2,574 | EUR | 2,275 | 19 | — |
RBC Capital Markets LLC | 5/15/19 |
| USD | 2,527 | NOK | 21,527 | 30 | — |
Goldman Sachs International | 5/15/19 |
| USD | 2,515 | HKD | 19,717 | 1 | — |
Barclays Bank plc | 5/15/19 |
| USD | 2,481 | BRL | 9,575 | 42 | — |
Goldman Sachs International | 5/15/19 |
| USD | 1,392 | MXN | 26,452 | — | — |
BNP Paribas | 5/15/19 |
| USD | 780 | TWD | 24,018 | 2 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 568 | NZD | 840 | 6 | — |
Barclays Bank plc | 5/15/19 |
| USD | 512 | CLP | 339,163 | 11 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 451 | PLN | 1,713 | 3 | — |
BNP Paribas | 5/15/19 |
| USD | 329 | IDR | 4,677,472 | 1 | — |
Toronto-Dominion Bank | 5/15/19 |
| USD | 159 | ILS | 569 | 1 | — |
|
|
|
|
|
|
| 14,651 | (173) |
AUD—Australian dollar.
BRL—Brazilian real.
CAD—Canadian dollar.
CHF—Swiss franc.
CLP—Chilean peso.
DKK—Danish krone.
EUR—Euro.
GBP—British pound.
HKD—Hong Kong dollar.
IDR—Indonesian rupiah.
ILS—Israeli shekel.
INR—Indian rupee.
JPY—Japanese yen.
KRW—Korean won.
MXN—Mexican peso.
NOK—Norwegian krone.
NZD—New Zealand dollar.
PLN—Polish zloty.
SEK—Swedish krona.
SGD—Singapore dollar.
TWD—Taiwanese dollar.
USD—U.S. dollar.
ZAR—South African rand.
At April 30, 2019, the counterparties had desposited in segregated accounts securities with a value of $10,618,000 and cash of $12,670,000 in connection with open forward currency contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
Global Minimum Volatility Fund
Statement of Operations
|
| Six Months Ended |
|
|
| ($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Dividends1 |
| 50,573 |
|
Interest2 |
| 240 |
|
Securities Lending—Net |
| 354 |
|
Total Income |
| 51,167 |
|
Expenses |
|
|
|
The Vanguard Group—Note B |
|
|
|
Investment Advisory Services |
| 644 |
|
Management and Administrative—Investor Shares |
| 429 |
|
Management and Administrative—Admiral Shares |
| 1,346 |
|
Marketing and Distribution—Investor Shares |
| 38 |
|
Marketing and Distribution—Admiral Shares |
| 92 |
|
Custodian Fees |
| 79 |
|
Shareholders’ Reports—Investor Shares |
| 7 |
|
Shareholders’ Reports—Admiral Shares |
| 13 |
|
Trustees’ Fees and Expenses |
| 1 |
|
Total Expenses |
| 2,649 |
|
Net Investment Income |
| 48,518 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold2 |
| 13,076 |
|
Futures Contracts |
| 1,672 |
|
Forward Currency Contracts |
| 7,092 |
|
Foreign Currencies |
| 786 |
|
Realized Net Gain (Loss) |
| 22,626 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities2 |
| 200,417 |
|
Futures Contracts |
| 495 |
|
Forward Currency Contracts |
| 4,258 |
|
Foreign Currencies |
| (17 | ) |
Change in Unrealized Appreciation (Depreciation) |
| 205,153 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 276,297 |
|
1 Dividends are net of foreign withholding taxes of $2,465,000.
2 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $232,000, ($3,000), and $5,000, respectively. Purchases and sales are for temporary cash investment purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Global Minimum Volatility Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
| Year Ended |
|
|
| ($000 | ) | ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
|
Operations |
|
|
|
|
|
Net Investment Income |
| 48,518 |
| 70,733 |
|
Realized Net Gain (Loss) |
| 22,626 |
| 152,446 |
|
Change in Unrealized Appreciation (Depreciation) |
| 205,153 |
| (142,439 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 276,297 |
| 80,740 |
|
Distributions |
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
Investor Shares |
| (11,167 | ) | (12,387 | ) |
Admiral Shares |
| (61,918 | ) | (40,756 | ) |
Realized Capital Gain1 |
|
|
|
|
|
Investor Shares |
| (22,331 | ) | — |
|
Admiral Shares |
| (119,380 | ) | — |
|
Total Distributions |
| (214,796 | ) | (53,143 | ) |
Capital Share Transactions |
|
|
|
|
|
Investor Shares |
| 49,006 |
| (31,299 | ) |
Admiral Shares |
| 451,761 |
| 822,933 |
|
Net Increase (Decrease) from Capital Share Transactions |
| 500,767 |
| 791,634 |
|
Total Increase (Decrease) |
| 562,268 |
| 819,231 |
|
Net Assets |
|
|
|
|
|
Beginning of Period |
| 3,057,747 |
| 2,238,516 |
|
End of Period |
| 3,620,015 |
| 3,057,747 |
|
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $44,448,000 and $0, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Global Minimum Volatility Fund
Financial Highlights
Investor Shares
|
| Six Months |
|
|
|
|
|
|
|
|
| Dec. 12, |
|
|
| Ended |
|
|
|
|
|
|
|
|
| 20131 to |
|
For a Share Outstanding |
| April 30, |
| Year Ended October 31, |
| Oct. 31, |
| ||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $13.78 |
| $13.57 |
| $11.92 |
| $11.81 |
| $11.41 |
| $10.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .190 | 2 | .374 | 2 | .324 | 2 | .293 |
| .288 | 2 | .262 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| .861 |
| .148 |
| 1.650 |
| .181 |
| .795 |
| 1.172 |
|
Total from Investment Operations |
| 1.051 |
| .522 |
| 1.974 |
| .474 |
| 1.083 |
| 1.434 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.300 | ) | (.312 | ) | (.324 | ) | (.205 | ) | (.280 | ) | (.024 | ) |
Distributions from Realized Capital Gains |
| (.601 | ) | — |
| — |
| (.159 | ) | (.403 | ) | — |
|
Total Distributions |
| (.901 | ) | (.312 | ) | (.324 | ) | (.364 | ) | (.683 | ) | (.024 | ) |
Net Asset Value, End of Period |
| $13.93 |
| $13.78 |
| $13.57 |
| $11.92 |
| $11.81 |
| $11.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return3 |
| 8.34% |
| 3.89% |
| 16.93% |
| 4.23% |
| 9.93% |
| 14.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $575 |
| $515 |
| $539 |
| $419 |
| $451 |
| $360 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.22% |
| 0.23% |
| 0.25% |
| 0.25% |
| 0.27% |
| 0.30%4 |
|
Ratio of Net Investment Income to Average Net Assets |
| 2.87% |
| 2.66% |
| 2.54% |
| 2.63% |
| 2.52% |
| 3.18%4 |
|
Portfolio Turnover Rate |
| 54% |
| 24% |
| 37% |
| 58% |
| 57% |
| 49% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
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 Annualized.
See accompanying Notes, which are an integral part of the Financial Statements.
Global Minimum Volatility Fund
Financial Highlights
Admiral Shares
|
| Six Months |
|
|
|
|
|
|
|
|
| Dec. 12, |
|
|
| Ended |
|
|
|
|
|
|
|
|
| 20131 to |
|
For a Share Outstanding |
| April 30, |
| Year Ended October 31, |
| Oct. 31, |
| ||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
|
Net Asset Value, Beginning of Period |
| $27.58 |
| $27.15 |
| $23.86 |
| $23.62 |
| $22.83 |
| $20.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .392 | 2 | .758 | 2 | .668 | 2 | .608 |
| .605 | 2 | .546 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
| 1.725 |
| .297 |
| 3.295 |
| .377 |
| 1.576 |
| 2.332 |
|
Total from Investment Operations |
| 2.117 |
| 1.055 |
| 3.963 |
| .985 |
| 2.181 |
| 2.878 |
|
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.624 | ) | (.625 | ) | (.673 | ) | (.427 | ) | (.585 | ) | (.048 | ) |
Distributions from Realized Capital Gains |
| (1.203 | ) | — |
| — |
| (.318 | ) | (.806 | ) | — |
|
Total Distributions |
| (1.827 | ) | (.625 | ) | (.673 | ) | (.745 | ) | (1.391 | ) | (.048 | ) |
Net Asset Value, End of Period |
| $27.87 |
| $27.58 |
| $27.15 |
| $23.86 |
| $23.62 |
| $22.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return3 |
| 8.40% |
| 3.93% |
| 16.99% |
| 4.39% |
| 10.00% |
| 14.42% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $3,045 |
| $2,542 |
| $1,699 |
| $1,152 |
| $757 |
| $115 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.15% |
| 0.15% |
| 0.17% |
| 0.17% |
| 0.21% |
| 0.20%4 |
|
Ratio of Net Investment Income to Average Net Assets |
| 2.94% |
| 2.74% |
| 2.62% |
| 2.71% |
| 2.58% |
| 3.28%4 |
|
Portfolio Turnover Rate |
| 54% |
| 24% |
| 37% |
| 58% |
| 57% |
| 49% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
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 Annualized.
See accompanying Notes, which are an integral part of the Financial Statements.
Global Minimum Volatility Fund
Notes to Financial Statements
Vanguard Global Minimum Volatility 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. To minimize the currency risk and volatility associated with investment in securities denominated in currencies other than the U.S. dollar, the fund attempts to hedge its currency exposure. 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.
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 at their fair values calculated according to procedures adopted 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. Futures and Forward Currency Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. 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
Global Minimum Volatility Fund
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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts 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. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, 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 forward currency 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 assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency 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.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets 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 or forward currency contracts.
During the six months ended April 30, 2019, 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. The fund’s average investment in forward currency contracts represented 48% of net assets, based on the average of the 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 all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2015-2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 and may differ from net investment income and realized capital gains for financial reporting purposes.
Global Minimum Volatility Fund
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 Net Assets for the return of the collateral, during the period the securities are on loan. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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.
Global Minimum Volatility Fund
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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $176,000, representing 0.00% of the fund’s net assets and 0.07% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
C. 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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
|
| Level 1 |
| Level 2 |
| Level 3 |
|
Investments |
| ($000 | ) | ($000 | ) | ($000 | ) |
Common Stocks—International |
| 444,014 |
| 1,315,678 |
| — |
|
Common Stocks—United States |
| 1,821,730 |
| — |
| — |
|
Temporary Cash Investments |
| 108,766 |
| — |
| — |
|
Futures Contracts—Assets1 |
| 57 |
| — |
| — |
|
Futures Contracts—Liabilities1 |
| (7 | ) | — |
| — |
|
Forward Currency Contracts—Assets |
| — |
| 14,651 |
| — |
|
Forward Currency Contracts—Liabilities |
| — |
| (173 | ) | — |
|
Total |
| 2,374,560 |
| 1,330,156 |
| — |
|
1 Represents variation margin on the last day of the reporting period.
Global Minimum Volatility Fund
D. At April 30, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:
Statement of Net Assets Caption |
| Equity | ) | Foreign | ) | Total | ) |
Variation Margin Receivable—Futures Contracts |
| 57 |
| — |
| 57 |
|
Unrealized Appreciation—Forward Currency Contracts |
| — |
| 14,651 |
| 14,651 |
|
Total Assets |
| 57 |
| 14,651 |
| 14,708 |
|
|
|
|
|
|
|
|
|
Variation Margin Payable—Futures Contracts |
| (7 | ) | — |
| (7 | ) |
Unrealized Depreciation—Forward Currency Contracts |
| — |
| (173 | ) | (173 | ) |
Total Liabilities |
| (7 | ) | (173 | ) | (180 | ) |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2019, were:
Realized Net Gain (Loss) on Derivatives |
| Equity | ) | Foreign | ) | Total | ) |
Futures Contracts |
| 1,672 |
| — |
| 1,672 |
|
Forward Currency Contracts |
| — |
| 7,092 |
| 7,092 |
|
Realized Net Gain (Loss) on Derivatives |
| 1,672 |
| 7,092 |
| 8,764 |
|
|
|
|
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|
|
|
|
|
|
|
Futures Contracts |
| 495 |
| — |
| 495 |
|
Forward Currency Contracts |
| — |
| 4,258 |
| 4,258 |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
| 495 |
| 4,258 |
| 4,753 |
|
E. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount |
|
|
| ($000 | ) |
Tax Cost |
| 3,325,597 |
|
Gross Unrealized Appreciation |
| 471,899 |
|
Gross Unrealized Depreciation |
| (92,310 | ) |
Net Unrealized Appreciation (Depreciation) |
| 379,589 |
|
Global Minimum Volatility Fund
F. During the six months ended April 30, 2019, the fund purchased $1,227,207,000 of investment securities and sold $889,373,000 of investment securities, other than temporary cash investments.
G. Capital share transactions for each class of shares were:
|
| Six Months Ended |
| Year Ended |
| ||||
|
| April 30, 2019 |
| October 31, 2018 |
| ||||
|
| Amount | ) | Shares | ) | Amount | ) | Shares | ) |
Investor Shares |
|
|
|
|
|
|
|
|
|
Issued |
| 100,710 |
| 7,574 |
| 148,795 |
| 10,734 |
|
Issued in Lieu of Cash Distributions |
| 31,225 |
| 2,486 |
| 11,552 |
| 854 |
|
Redeemed |
| (82,929 | ) | (6,211 | ) | (191,646 | ) | (13,898 | ) |
Net Increase (Decrease)—Investor Shares |
| 49,006 |
| 3,849 |
| (31,299 | ) | (2,310 | ) |
Admiral Shares |
|
|
|
|
|
|
|
|
|
Issued |
| 607,130 |
| 22,636 |
| 1,279,510 |
| 46,244 |
|
Issued in Lieu of Cash Distributions |
| 163,610 |
| 6,511 |
| 35,011 |
| 1,294 |
|
Redeemed |
| (318,979 | ) | (12,079 | ) | (491,588 | ) | (17,935 | ) |
Net Increase (Decrease)—Admiral Shares |
| 451,761 |
| 17,068 |
| 822,933 |
| 29,603 |
|
H. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangement
The board of trustees of Vanguard Global Minimum Volatility Fund has renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Quantitative Equity Group. The board determined that continuing the fund’s internalized management structure 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 2013 and took into account the organizational depth and stability of the advisor. The board considered that Vanguard has been managing investments for more than four decades. The Quantitative Equity Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.
Investment performance
The board considered the performance of the fund since its inception, including any periods of outperformance or underperformance compared with a relevant benchmark 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 well below the average expense ratio charged by funds in its peer group and that the fund’s advisory expenses were also well below the peer-group average.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The board concluded that the fund’s arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The board will consider whether to renew the advisory arrangement again after a one-year period.
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > 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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. |
| All rights reserved. |
| Vanguard Marketing Corporation, Distributor. |
|
|
| Q11942 062019 |
Semiannual Report | April 30, 2019
Vanguard International Dividend Index Funds
|
Vanguard International Dividend Appreciation Index Fund
Vanguard International High Dividend Yield Index Fund
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
|
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents
About Your Fund’s Expenses | 1 |
|
|
International Dividend Appreciation Index Fund | 3 |
|
|
International High Dividend Yield Index Fund | 23 |
|
|
Trustees Approve Advisory Arrangements | 51 |
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 April 30, 2019
|
| Beginning |
| Ending |
| Expenses |
Based on Actual Fund Return |
|
|
|
|
|
|
International Dividend Appreciation Index Fund |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,140.52 |
| $1.86 |
ETF Shares |
| 1,000.00 |
| 1,140.91 |
| 1.27 |
AdmiralTM Shares |
| 1,000.00 |
| 1,140.98 |
| 1.27 |
International High Dividend Yield Index Fund |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,077.99 |
| $2.16 |
ETF Shares |
| 1,000.00 |
| 1,078.64 |
| 1.60 |
Admiral Shares |
| 1,000.00 |
| 1,078.56 |
| 1.60 |
Based on Hypothetical 5% Yearly Return |
|
|
|
|
|
|
International Dividend Appreciation Index Fund |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,023.06 |
| $1.76 |
ETF Shares |
| 1,000.00 |
| 1,023.60 |
| 1.20 |
Admiral Shares |
| 1,000.00 |
| 1,023.60 |
| 1.20 |
International High Dividend Yield Index Fund |
|
|
|
|
|
|
Investor Shares |
| $1,000.00 |
| $1,022.71 |
| $2.11 |
ETF Shares |
| 1,000.00 |
| 1,023.26 |
| 1.56 |
Admiral Shares |
| 1,000.00 |
| 1,023.26 |
| 1.56 |
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 International Dividend Appreciation Index Fund, 0.35% for Investor Shares, 0.24% for ETF Shares, and 0.24% for Admiral Shares; and for the International High Dividend Yield Index Fund, 0.42% for Investor Shares, 0.31% for ETF Shares, and 0.31% 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 six-month period, then divided by the number of days in the most recent 12-month period (181/365).
International Dividend Appreciation Index Fund
Sector Diversification
As of April 30, 2019
Basic Materials |
| 3.3 | % |
Consumer Goods |
| 21.3 |
|
Consumer Services |
| 8.9 |
|
Financials |
| 15.9 |
|
Health Care |
| 11.8 |
|
Industrials |
| 12.0 |
|
Oil & Gas |
| 3.4 |
|
Technology |
| 18.7 |
|
Telecommunications |
| 2.9 |
|
Utilities |
| 1.8 |
|
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.
International Dividend Appreciation Index Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
Common Stocks (99.3%)1 |
|
|
|
| |
Australia (1.9%) |
|
|
|
| |
| CSL Ltd. |
| 92,647 |
| 12,995 |
| Brambles Ltd. |
| 324,029 |
| 2,754 |
| Aristocrat Leisure Ltd. |
| 130,776 |
| 2,407 |
| Ramsay Health Care Ltd. |
| 41,458 |
| 1,909 |
| REA Group Ltd. |
| 26,888 |
| 1,515 |
| SEEK Ltd. |
| 71,792 |
| 922 |
| Washington H Soul Pattinson & Co. Ltd. |
| 48,961 |
| 794 |
| Qube Holdings Ltd. |
| 326,677 |
| 652 |
| Domino’s Pizza Enterprises Ltd. |
| 17,390 |
| 527 |
| Corporate Travel Management Ltd. |
| 21,858 |
| 411 |
| Technology One Ltd. |
| 63,919 |
| 397 |
|
|
|
|
| 25,283 |
Belgium (0.5%) |
|
|
|
| |
| UCB SA |
| 39,819 |
| 3,165 |
| Sofina SA |
| 7,005 |
| 1,443 |
| Ackermans & van Haaren NV |
| 6,833 |
| 1,101 |
| Barco NV |
| 2,636 |
| 469 |
|
|
|
|
| 6,178 |
Canada (7.9%) |
|
|
|
| |
| Toronto-Dominion Bank |
| 374,197 |
| 21,345 |
| Canadian National Railway Co. (Toronto Shares) |
| 148,555 |
| 13,799 |
| Suncor Energy Inc. |
| 324,217 |
| 10,692 |
| Brookfield Asset Management Inc. Class A |
| 202,728 |
| 9,774 |
| Alimentation Couche-Tard Inc. Class B |
| 89,713 |
| 5,290 |
| Imperial Oil Ltd. |
| 159,194 |
| 4,625 |
^ | Magna International Inc. |
| 66,483 |
| 3,700 |
| Loblaw Cos. Ltd. |
| 75,153 |
| 3,682 |
| Fortis Inc. |
| 87,178 |
| 3,222 |
| Franco-Nevada Corp. |
| 38,306 |
| 2,745 |
| Saputo Inc. |
| 79,667 |
| 2,724 |
| George Weston Ltd. |
| 31,217 |
| 2,331 |
| Intact Financial Corp. |
| 28,464 |
| 2,329 |
| Dollarama Inc. |
| 64,300 |
| 1,931 |
| Metro Inc. |
| 52,057 |
| 1,885 |
| Gildan Activewear Inc. |
| 42,033 |
| 1,550 |
| CCL Industries Inc. Class B |
| 34,070 |
| 1,453 |
| Canadian Tire Corp. Ltd. Class A |
| 12,197 |
| 1,342 |
| CAE Inc. |
| 54,579 |
| 1,269 |
| SNC-Lavalin Group Inc. |
| 36,062 |
| 899 |
| Methanex Corp. |
| 15,959 |
| 875 |
| Toromont Industries Ltd. |
| 16,812 |
| 874 |
| Empire Co. Ltd. |
| 35,906 |
| 799 |
| Ritchie Bros Auctioneers Inc. |
| 22,146 |
| 771 |
| Atco Ltd. |
| 20,484 |
| 703 |
| Finning International Inc. |
| 33,471 |
| 601 |
| TFI International Inc. |
| 17,200 |
| 565 |
| Stella-Jones Inc. |
| 14,505 |
| 495 |
| Cogeco Communications Inc. |
| 6,801 |
| 452 |
| Boyd Group Income Fund |
| 4,088 |
| 449 |
| Canadian Western Bank |
| 18,599 |
| 417 |
| Enghouse Systems Ltd. |
| 11,086 |
| 271 |
| Equitable Group Inc. |
| 3,316 |
| 181 |
| Richelieu Hardware Ltd. |
| 11,578 |
| 180 |
| Cogeco Inc. |
| 2,874 |
| 176 |
|
|
|
|
| 104,396 |
China (6.2%) |
|
|
|
| |
| Tencent Holdings Ltd. |
| 1,168,886 |
| 57,611 |
| China Overseas Land & Investment Ltd. |
| 2,238,190 |
| 8,386 |
| China Merchants Bank Co. Ltd. |
| 937,000 |
| 4,637 |
| China Gas Holdings Ltd. |
| 1,035,800 |
| 3,341 |
| Sunny Optical Technology Group Co. Ltd. |
| 224,381 |
| 2,745 |
| Guangdong Investment Ltd. |
| 1,332,000 |
| 2,492 |
| China Resources Gas Group Ltd. |
| 455,000 |
| 2,112 |
| Sinopharm Group Co. Ltd. |
| 245,200 |
| 964 |
|
|
|
|
| 82,288 |
International Dividend Appreciation Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
Colombia (0.3%) |
|
|
|
| |
| Bancolombia SA ADR |
| 21,971 |
| 1,115 |
| Grupo de Inversiones Suramericana SA |
| 94,485 |
| 1,052 |
| Grupo Argos SA |
| 131,129 |
| 746 |
| Cementos Argos SA |
| 244,767 |
| 611 |
| Bancolombia SA Preference Shares |
| 8,068 |
| 102 |
|
|
|
|
| 3,626 |
Denmark (0.9%) |
|
|
|
| |
| Coloplast A/S Class B |
| 40,495 |
| 4,374 |
| DSV A/S |
| 38,453 |
| 3,563 |
| Novozymes A/S |
| 49,718 |
| 2,321 |
| GN Store Nord A/S |
| 29,705 |
| 1,522 |
| Schouw & Co. A/S |
| 5,138 |
| 366 |
|
|
|
|
| 12,146 |
Finland (0.2%) |
|
|
|
| |
| Wartsila OYJ Abp |
| 121,018 |
| 1,938 |
| Huhtamaki Oyj |
| 22,137 |
| 846 |
|
|
|
|
| 2,784 |
France (12.6%) |
|
|
|
| |
| LVMH Moet Hennessy Louis Vuitton SE |
| 103,207 |
| 40,521 |
| Airbus SE |
| 158,571 |
| 21,713 |
^ | Hermes International |
| 21,575 |
| 15,179 |
| L’Oreal Loyalty Line 2021 |
| 46,336 |
| 12,745 |
* | EssilorLuxottica SA |
| 88,562 |
| 10,790 |
* | Air Liquide SA Loyalty Line 2021 |
| 80,772 |
| 10,746 |
| L’Oreal Loyalty Line 2020 |
| 35,992 |
| 9,900 |
| Dassault Systemes SE |
| 53,450 |
| 8,465 |
| L’Oreal SA Loyalty Line |
| 23,101 |
| 6,354 |
| Legrand SA |
| 53,931 |
| 3,967 |
| Sodexo SA |
| 30,203 |
| 3,463 |
| Sartorius Stedim Biotech |
| 18,854 |
| 2,561 |
| L’Oreal SA |
| 9,097 |
| 2,502 |
* | Teleperformance |
| 11,745 |
| 2,258 |
| Getlink SE |
| 111,859 |
| 1,800 |
| Eurofins Scientific SE |
| 3,613 |
| 1,654 |
| Arkema SA |
| 15,687 |
| 1,611 |
| Orpea |
| 13,165 |
| 1,606 |
| Wendel SA |
| 9,425 |
| 1,305 |
| Eurazeo SE |
| 15,733 |
| 1,235 |
| Ingenico Group SA |
| 13,009 |
| 1,098 |
| Rubis SCA |
| 19,883 |
| 1,091 |
| Air Liquide SA |
| 7,084 |
| 942 |
| Cie Plastic Omnium SA |
| 30,380 |
| 920 |
* | SEB SA |
| 4,013 |
| 735 |
* | SEB Prime Fidelite |
| 3,318 |
| 608 |
| SEB SA Loyalty Line |
| 2,051 |
| 376 |
| SEB SA (XPAR) |
| 893 |
| 164 |
|
|
|
|
| 166,309 |
Germany (5.1%) |
|
|
|
| |
| SAP SE |
| 251,042 |
| 32,361 |
| Fresenius SE & Co. KGaA |
| 113,354 |
| 6,446 |
| Fresenius Medical Care AG & Co. KGaA |
| 63,096 |
| 5,318 |
| Henkel AG & Co. KGaA Preference Shares |
| 36,500 |
| 3,696 |
| HeidelbergCement AG |
| 40,679 |
| 3,292 |
| Merck KGaA |
| 26,362 |
| 2,810 |
| Symrise AG Class A |
| 27,728 |
| 2,669 |
| Brenntag AG |
| 31,495 |
| 1,700 |
| Rational AG |
| 2,313 |
| 1,562 |
| Sartorius AG Preference Shares |
| 7,666 |
| 1,408 |
| Fielmann AG |
| 17,252 |
| 1,227 |
| CTS Eventim AG & Co.KGaA |
| 19,781 |
| 1,016 |
| GRENKE AG |
| 9,468 |
| 1,010 |
| Bechtle AG |
| 8,543 |
| 879 |
| Duerr AG |
| 14,006 |
| 633 |
| Fuchs Petrolub SE Preference Shares |
| 14,008 |
| 611 |
| Krones AG |
| 6,367 |
| 594 |
* | Gerresheimer AG |
| 6,327 |
| 477 |
| Cewe Stiftung & Co. KGaA |
| 1,495 |
| 141 |
| Bertrandt AG |
| 66 |
| 5 |
|
|
|
|
| 67,855 |
Hong Kong (4.7%) |
|
|
|
| |
| AIA Group Ltd. |
| 2,467,000 |
| 25,261 |
| CK Hutchison Holdings Ltd. |
| 786,598 |
| 8,270 |
| Hong Kong & China Gas Co. Ltd. |
| 3,150,256 |
| 7,520 |
| MTR Corp. Ltd. |
| 1,257,000 |
| 7,489 |
| CLP Holdings Ltd. |
| 516,000 |
| 5,856 |
| Wheelock & Co. Ltd. |
| 417,886 |
| 2,978 |
| Techtronic Industries Co. Ltd. |
| 373,752 |
| 2,705 |
| Hysan Development Co. Ltd. |
| 213,000 |
| 1,194 |
| Minth Group Ltd. |
| 237,000 |
| 749 |
|
|
|
|
| 62,022 |
Hungary (0.2%) |
|
|
|
| |
| OTP Bank Nyrt |
| 57,143 |
| 2,541 |
|
|
|
|
|
|
India (11.0%) |
|
|
|
| |
| Reliance Industries Ltd. |
| 1,294,960 |
| 25,942 |
| Tata Consultancy Services Ltd. |
| 766,427 |
| 24,912 |
| HDFC Bank Ltd. ADR |
| 160,588 |
| 18,411 |
| Hindustan Unilever Ltd. |
| 439,735 |
| 11,107 |
| ITC Ltd. |
| 2,489,327 |
| 10,790 |
International Dividend Appreciation Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Housing Development Finance Corp. Ltd. |
| 349,453 |
| 10,025 |
| Infosys Ltd. ADR |
| 853,957 |
| 9,189 |
| Kotak Mahindra Bank Ltd. |
| 387,652 |
| 7,731 |
| Larsen & Toubro Ltd. |
| 284,619 |
| 5,520 |
| Bajaj Finance Ltd. |
| 117,355 |
| 5,225 |
| Asian Paints Ltd. |
| 194,654 |
| 4,095 |
| Induslnd Bank Ltd. |
| 123,498 |
| 2,854 |
| Godrej Consumer Products Ltd. |
| 207,415 |
| 1,943 |
| Pidilite Industries Ltd. |
| 103,026 |
| 1,829 |
| Yes Bank Ltd. |
| 469,464 |
| 1,134 |
| Berger Paints India Ltd. |
| 195,674 |
| 897 |
| Container Corp. Of India Ltd. |
| 122,730 |
| 870 |
| Page Industries Ltd. |
| 2,247 |
| 747 |
| LIC Housing Finance Ltd. |
| 101,677 |
| 726 |
| Sundaram Finance Ltd. |
| 22,388 |
| 465 |
| Infosys Ltd. |
| 38,955 |
| 420 |
| Persistent Systems Ltd. |
| 16,134 |
| 148 |
| Reliance Infrastructure Ltd. |
| 53,014 |
| 82 |
|
|
|
|
| 145,062 |
Indonesia (0.6%) |
|
|
|
| |
* | Bank Rakyat Indonesia Persero Tbk PT |
| 24,942,000 |
| 7,669 |
|
|
|
|
|
|
Ireland (0.5%) |
|
|
|
| |
| Kerry Group plc Class A |
| 35,935 |
| 4,025 |
| Kingspan Group plc |
| 37,255 |
| 1,959 |
| Glanbia plc |
| 61,312 |
| 1,127 |
| Total Produce plc |
| 75,214 |
| 134 |
|
|
|
|
| 7,245 |
Italy (0.1%) |
|
|
|
| |
| DiaSorin SPA |
| 11,489 |
| 1,123 |
| Reply SPA |
| 7,537 |
| 491 |
|
|
|
|
| 1,614 |
Japan (10.1%) |
|
|
|
| |
| Nippon Telegraph & Telephone Corp. |
| 398,762 |
| 16,592 |
| KDDI Corp. |
| 517,138 |
| 11,919 |
| Tokio Marine Holdings Inc. |
| 146,900 |
| 7,443 |
| Seven & i Holdings Co. Ltd. |
| 181,300 |
| 6,274 |
| Bridgestone Corp. |
| 155,900 |
| 6,185 |
| Terumo Corp. |
| 155,316 |
| 4,687 |
| Suzuki Motor Corp. |
| 100,400 |
| 4,582 |
| Asahi Group Holdings Ltd. |
| 98,963 |
| 4,315 |
| West Japan Railway Co. |
| 39,520 |
| 2,939 |
| Nitori Holdings Co. Ltd. |
| 23,445 |
| 2,797 |
| Sysmex Corp. |
| 42,700 |
| 2,447 |
| Yakult Honsha Co. Ltd. |
| 35,000 |
| 2,390 |
| M3 Inc. |
| 132,700 |
| 2,369 |
| Obic Co. Ltd. |
| 20,200 |
| 2,345 |
| Pan Pacific International Holdings Corp. |
| 32,296 |
| 2,081 |
| Koito Manufacturing Co. Ltd. |
| 32,900 |
| 1,970 |
| Hikari Tsushin Inc. |
| 9,500 |
| 1,761 |
| Shimadzu Corp. |
| 60,800 |
| 1,631 |
| Sekisui Chemical Co. Ltd. |
| 101,100 |
| 1,623 |
| Otsuka Corp. |
| 39,000 |
| 1,534 |
| TOTO Ltd. |
| 36,000 |
| 1,526 |
| MISUMI Group Inc. |
| 57,800 |
| 1,509 |
| Pola Orbis Holdings Inc. |
| 47,000 |
| 1,484 |
| Alfresa Holdings Corp. |
| 48,300 |
| 1,348 |
| Hakuhodo DY Holdings Inc. |
| 79,200 |
| 1,339 |
| USS Co. Ltd. |
| 63,800 |
| 1,225 |
| GMO Payment Gateway Inc. |
| 15,200 |
| 1,212 |
| Itochu Techno-Solutions Corp. |
| 49,000 |
| 1,204 |
| MonotaRO Co. Ltd. |
| 51,379 |
| 1,183 |
| Kansai Paint Co. Ltd. |
| 55,600 |
| 1,060 |
| Tokyo Century Corp. |
| 22,000 |
| 1,017 |
| SCSK Corp. |
| 21,000 |
| 998 |
| Stanley Electric Co. Ltd. |
| 35,800 |
| 971 |
| Nihon M&A Center Inc. |
| 33,700 |
| 962 |
| AEON Financial Service Co. Ltd. |
| 46,100 |
| 957 |
| Lawson Inc. |
| 20,400 |
| 952 |
| Mitsubishi UFJ Lease & Finance Co. Ltd. |
| 184,682 |
| 942 |
| Persol Holdings Co. Ltd. |
| 48,500 |
| 914 |
| Relo Group Inc. |
| 31,500 |
| 860 |
| Nomura Real Estate Holdings Inc. |
| 39,980 |
| 850 |
| Welcia Holdings Co. Ltd. |
| 21,500 |
| 847 |
| Goldwin Inc. |
| 4,900 |
| 784 |
| PALTAC Corp. |
| 13,414 |
| 741 |
| Rinnai Corp. |
| 10,800 |
| 729 |
| Kewpie Corp. |
| 30,300 |
| 702 |
| Benefit One Inc. |
| 32,700 |
| 684 |
| Seven Bank Ltd. |
| 245,300 |
| 667 |
| J Front Retailing Co. Ltd. |
| 54,500 |
| 666 |
| Sundrug Co. Ltd. |
| 24,728 |
| 663 |
| OBIC Business Consultants Co. Ltd. |
| 16,300 |
| 655 |
| Kurita Water Industries Ltd. |
| 24,200 |
| 630 |
| Izumi Co. Ltd. |
| 14,400 |
| 629 |
| NOF Corp. |
| 17,500 |
| 624 |
| Hitachi Capital Corp. |
| 25,400 |
| 591 |
| Sanwa Holdings Corp. |
| 47,400 |
| 571 |
| Koei Tecmo Holdings Co. Ltd. |
| 26,340 |
| 481 |
| Aica Kogyo Co. Ltd. |
| 13,600 |
| 472 |
| NHK Spring Co. Ltd. |
| 51,100 |
| 460 |
| TS Tech Co. Ltd. |
| 14,300 |
| 429 |
International Dividend Appreciation Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| SHO-BOND Holdings Co. Ltd. |
| 5,942 |
| 408 |
| Yaoko Co. Ltd. |
| 8,400 |
| 400 |
| Noevir Holdings Co. Ltd. |
| 7,200 |
| 378 |
| Aeon Delight Co. Ltd. |
| 10,900 |
| 367 |
| Glory Ltd. |
| 13,900 |
| 351 |
| Modec Inc. |
| 11,400 |
| 350 |
| Milbon Co. Ltd. |
| 6,700 |
| 343 |
| en-japan Inc. |
| 10,400 |
| 339 |
| Fuyo General Lease Co. Ltd. |
| 6,400 |
| 320 |
| Valor Holdings Co. Ltd. |
| 11,492 |
| 280 |
| Funai Soken Holdings Inc. |
| 10,700 |
| 278 |
| Elecom Co. Ltd. |
| 8,200 |
| 275 |
| Mitsubishi Pencil Co. Ltd. |
| 13,000 |
| 268 |
| Kissei Pharmaceutical Co. Ltd. |
| 10,500 |
| 260 |
| San-A Co. Ltd. |
| 6,566 |
| 258 |
| Senko Group Holdings Co. Ltd. |
| 31,300 |
| 252 |
| NEC Networks & System Integration Corp. |
| 10,300 |
| 248 |
| Starts Corp. Inc. |
| 11,122 |
| 248 |
| Keihin Corp. |
| 15,000 |
| 247 |
| Tokyo Seimitsu Co. Ltd. |
| 8,200 | �� | 238 |
| Koshidaka Holdings Co. Ltd. |
| 16,600 |
| 233 |
| Musashi Seimitsu Industry Co. Ltd. |
| 14,200 |
| 222 |
| Hogy Medical Co. Ltd. |
| 6,600 |
| 216 |
| JAC Recruitment Co. Ltd. |
| 8,400 |
| 206 |
| Tosho Co. Ltd. |
| 7,700 |
| 198 |
| Ai Holdings Corp. |
| 11,970 |
| 196 |
| Belc Co. Ltd. |
| 4,200 |
| 188 |
| Prestige International Inc. |
| 12,900 |
| 185 |
| Ricoh Leasing Co. Ltd. |
| 6,100 |
| 178 |
| Sekisui Jushi Corp. |
| 9,100 |
| 176 |
| Link And Motivation Inc. |
| 22,900 |
| 175 |
| Kanematsu Electronics Ltd. |
| 5,800 |
| 172 |
| Sato Holdings Corp. |
| 6,800 |
| 166 |
| Siix Corp. |
| 9,300 |
| 149 |
| Fukushima Industries Corp. |
| 4,200 |
| 146 |
| Piolax Inc. |
| 7,500 |
| 141 |
| Hiday Hidaka Corp. |
| 7,562 |
| 138 |
| Hamakyorex Co. Ltd. |
| 3,700 |
| 137 |
| Yondoshi Holdings Inc. |
| 6,000 |
| 132 |
| Nippon Signal Company Ltd. |
| 14,100 |
| 131 |
| Fujicco Co. Ltd. |
| 6,500 |
| 129 |
| Yellow Hat Ltd. |
| 10,000 |
| 126 |
| Nippon Parking Development Co. Ltd. |
| 80,200 |
| 126 |
| Kyokuto Kaihatsu Kogyo Co. Ltd. |
| 8,700 |
| 123 |
| WDB Holdings Co. Ltd. |
| 4,100 |
| 122 |
| G-Tekt Corp. |
| 7,800 |
| 111 |
| Monogatari Corp. |
| 1,200 |
| 96 |
| JCU Corp. |
| 5,600 |
| 95 |
| Tosei Corp. |
| 9,800 |
| 81 |
| Sinko Industries Ltd. |
| 5,600 |
| 81 |
| World Holdings Co. Ltd. |
| 3,400 |
| 58 |
|
|
|
|
| 133,163 |
Malaysia (0.0%) |
|
|
|
| |
| Bursa Malaysia Bhd. |
| 163,100 |
| 266 |
|
|
|
|
|
|
Mexico (1.1%) |
|
|
|
| |
| America Movil SAB de CV |
| 9,175,756 |
| 6,834 |
| Grupo Elektra SAB de CV |
| 48,005 |
| 2,554 |
| Grupo Financiero Inbursa SAB de CV |
| 1,361,055 |
| 2,083 |
| Grupo Carso SAB de CV |
| 467,804 |
| 1,814 |
| Grupo Aeroportuario del Sureste SAB de CV Class B |
| 56,763 |
| 935 |
|
|
|
|
| 14,220 |
Morocco (0.1%) |
|
|
|
| |
| Attijariwafa Bank |
| 42,665 |
| 1,979 |
|
|
|
|
|
|
Netherlands (3.0%) |
|
|
|
| |
| Unilever NV |
| 350,355 |
| 21,198 |
| ASML Holding NV |
| 87,026 |
| 18,172 |
| Aalberts NV |
| 22,747 |
| 895 |
|
|
|
|
| 40,265 |
New Zealand (0.1%) |
|
|
|
| |
| Ryman Healthcare Ltd. |
| 103,231 |
| 838 |
| Mainfreight Ltd. |
| 20,296 |
| 475 |
|
|
|
|
| 1,313 |
Norway (0.1%) |
|
|
|
| |
* | Tomra Systems ASA |
| 30,405 |
| 917 |
|
|
|
|
|
|
Philippines (0.8%) |
|
|
|
| |
| SM Investments Corp. |
| 246,614 |
| 4,499 |
| Ayala Land Inc. |
| 3,000,600 |
| 2,823 |
| Jollibee Foods Corp. |
| 224,096 |
| 1,310 |
| International Container Terminal Services Inc. |
| 410,290 |
| 996 |
| Metro Pacific Investments Corp. |
| 6,350,200 |
| 557 |
|
|
|
|
| 10,185 |
South Africa (2.8%) |
|
|
|
| |
| Naspers Ltd. |
| 89,618 |
| 23,054 |
| Sanlam Ltd. |
| 455,674 |
| 2,440 |
| Capitec Bank Holdings Ltd. |
| 23,720 |
| 2,219 |
| Remgro Ltd. |
| 108,874 |
| 1,480 |
| Discovery Ltd. |
| 134,833 |
| 1,359 |
| Bidvest Group Ltd. |
| 68,886 |
| 1,048 |
| PSG Group Ltd. |
| 48,077 |
| 892 |
| Mr Price Group Ltd. |
| 52,606 |
| 797 |
International Dividend Appreciation Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Clicks Group Ltd. |
| 53,967 |
| 739 |
| Santam Ltd. |
| 23,195 |
| 544 |
| Mondi Ltd. |
| 23,843 |
| 527 |
| SPAR Group Ltd. |
| 37,295 |
| 506 |
| Netcare Ltd. |
| 292,388 |
| 492 |
| Barloworld Ltd. |
| 43,364 |
| 387 |
| Hosken Consolidated Investments Ltd. |
| 18,181 |
| 141 |
|
|
|
|
| 36,625 |
South Korea (3.6%) |
|
|
|
| |
| Samsung Electronics Co. Ltd. |
| 1,219,870 |
| 47,962 |
| LEENO Industrial Inc. |
| 2,839 |
| 139 |
|
|
|
|
| 48,101 |
Spain (2.2%) |
|
|
|
| |
^ | Industria de Diseno Textil SA |
| 637,060 |
| 19,289 |
| Amadeus IT Group SA |
| 89,445 |
| 7,129 |
| Grupo Catalana Occidente SA |
| 24,529 |
| 926 |
| Viscofan SA |
| 9,508 |
| 572 |
| Vidrala SA |
| 5,336 |
| 501 |
| Miquel y Costas & Miquel SA |
| 5,909 |
| 105 |
|
|
|
|
| 28,522 |
Sweden (1.6%) |
|
|
|
| |
^ | Assa Abloy AB Class B |
| 215,230 |
| 4,601 |
| Investor AB Class B |
| 92,844 |
| 4,428 |
| Hexagon AB Class B |
| 71,116 |
| 3,885 |
| Svenska Cellulosa AB SCA Class B |
| 131,935 |
| 1,152 |
| L E Lundbergforetagen AB Class B |
| 31,174 |
| 1,066 |
| Castellum AB |
| 55,657 |
| 1,001 |
| AAK AB |
| 51,967 |
| 845 |
| Trelleborg AB Class B |
| 50,756 |
| 839 |
| Hufvudstaden AB Class A |
| 41,207 |
| 687 |
| Loomis AB Class B |
| 14,503 |
| 537 |
| Hexpol AB |
| 66,395 |
| 519 |
| Atrium Ljungberg AB |
| 26,011 |
| 424 |
| Wihlborgs Fastigheter AB |
| 30,936 |
| 412 |
* | AF POYRY AB |
| 19,968 |
| 372 |
| Biotage AB |
| 13,144 |
| 178 |
|
|
|
|
| 20,946 |
Switzerland (12.0%) |
|
|
|
| |
| Nestle SA |
| 552,460 |
| 53,190 |
| Novartis AG |
| 521,008 |
| 42,692 |
| Roche Holding AG |
| 143,500 |
| 37,864 |
| Cie Financiere Richemont SA |
| 106,637 |
| 7,795 |
| Givaudan SA |
| 1,892 |
| 4,899 |
| Partners Group Holding AG |
| 5,453 |
| 4,113 |
| Geberit AG |
| 7,567 |
| 3,173 |
| EMS-Chemie Holding AG |
| 4,778 |
| 2,894 |
| Chocoladefabriken Lindt &Spruengli AG |
| 220 |
| 1,462 |
| Interroll Holding AG |
| 176 |
| 384 |
| Orior AG |
| 1,340 |
| 102 |
|
|
|
|
| 158,568 |
Taiwan (0.2%) |
|
|
|
| |
| E.Sun Financial Holding Co. Ltd. |
| 2,201,707 |
| 1,808 |
| Grape King Bio Ltd. |
| 27,000 |
| 187 |
|
|
|
|
| 1,995 |
Thailand (0.2%) |
|
|
|
| |
| Central Pattana PCL (Foreign) |
| 914,900 |
| 2,165 |
|
|
|
|
|
|
Turkey (0.1%) |
|
|
|
| |
| BIM Birlesik Magazalar AS |
| 63,065 |
| 878 |
|
|
|
|
|
|
United Kingdom (8.5%) |
|
|
|
| |
| Diageo plc |
| 493,982 |
| 20,825 |
| Prudential plc |
| 530,283 |
| 12,049 |
| RELX plc |
| 400,916 |
| 9,211 |
| Compass Group plc |
| 323,564 |
| 7,362 |
| Experian plc |
| 186,064 |
| 5,416 |
| Associated British Foods plc |
| 161,906 |
| 5,408 |
| Ferguson plc |
| 47,186 |
| 3,358 |
| Ashtead Group plc |
| 96,910 |
| 2,691 |
| InterContinental Hotels Group plc |
| 36,846 |
| 2,386 |
| Intertek Group plc |
| 32,922 |
| 2,303 |
| Burberry Group plc |
| 84,221 |
| 2,220 |
| Whitbread plc |
| 37,001 |
| 2,154 |
| Bunzl plc |
| 68,780 |
| 2,074 |
| Halma plc |
| 77,185 |
| 1,816 |
| Croda International plc |
| 26,418 |
| 1,790 |
| Johnson Matthey plc |
| 39,671 |
| 1,731 |
| Mondi plc |
| 75,184 |
| 1,652 |
| JD Sports Fashion plc |
| 199,388 |
| 1,639 |
| Spirax-Sarco Engineering plc |
| 14,905 |
| 1,607 |
| Smiths Group plc |
| 80,557 |
| 1,604 |
| Paddy Power Betfair plc |
| 16,050 |
| 1,358 |
| Rightmove plc |
| 183,347 |
| 1,296 |
| Hiscox Ltd. |
| 58,143 |
| 1,272 |
| Hikma Pharmaceuticals plc |
| 49,566 |
| 1,144 |
| Meggitt plc |
| 159,325 |
| 1,134 |
| Intermediate Capital Group plc |
| 59,317 |
| 917 |
| Renishaw plc |
| 15,024 |
| 887 |
| Spectris plc |
| 23,887 |
| 858 |
| Beazley plc |
| 107,308 |
| 809 |
| IWG plc |
| 181,678 |
| 807 |
International Dividend Appreciation Index Fund
|
|
|
|
| Market |
|
|
|
|
| Value· |
|
|
| Shares |
| ($000) |
| Dechra Pharmaceuticals plc |
| 21,224 |
| 738 |
| Rotork plc |
| 179,013 |
| 730 |
| Abcam plc |
| 41,730 |
| 710 |
| WH Smith plc |
| 21,995 |
| 588 |
| Grafton Group plc |
| 48,573 |
| 560 |
| Victrex plc |
| 17,537 |
| 558 |
| National Express Group plc |
| 103,111 |
| 553 |
| Moneysupermarket.com Group plc |
| 109,218 |
| 519 |
| Diploma plc |
| 22,836 |
| 478 |
| QinetiQ Group plc |
| 114,476 |
| 451 |
| RWS Holdings plc |
| 57,069 |
| 450 |
| Bodycote plc |
| 38,982 |
| 437 |
| Genus plc |
| 13,269 |
| 418 |
| Synthomer plc |
| 71,979 |
| 394 |
| Cranswick plc |
| 10,397 |
| 393 |
| Rathbone Brothers plc |
| 11,576 |
| 381 |
| Dart Group plc |
| 31,208 |
| 380 |
| Savills plc |
| 29,935 |
| 353 |
| GB Group plc |
| 38,773 |
| 301 |
| Ultra Electronics Holdings plc |
| 14,275 |
| 297 |
| Telecom Plus plc |
| 15,773 |
| 291 |
| Greencore Group plc |
| 89,881 |
| 270 |
| James Fisher & Sons plc |
| 10,290 |
| 265 |
| Hill & Smith Holdings plc |
| 15,938 |
| 265 |
| Senior plc |
| 84,590 |
| 256 |
| AG Barr plc |
| 22,996 |
| 255 |
| St. Modwen Properties plc |
| 44,852 |
| 241 |
| Hilton Food Group plc |
| 16,481 |
| 219 |
| Clarkson plc |
| 5,957 |
| 202 |
| EMIS Group plc |
| 12,782 |
| 187 |
| 4imprint Group plc |
| 5,174 |
| 181 |
| Vitec Group plc |
| 9,136 |
| 138 |
| CVS Group plc |
| 14,243 |
| 116 |
| Robert Walters plc |
| 13,481 |
| 104 |
| Avon Rubber plc |
| 5,203 |
| 100 |
| Speedy Hire plc |
| 105,961 |
| 81 |
| Brooks Macdonald Group plc |
| 2,816 |
| 67 |
|
|
|
|
| 112,705 |
United States (0.1%) |
|
|
|
| |
| Autoliv Inc. |
| 12,192 |
| 988 |
Total Common Stocks |
|
|
|
| |
(Cost $1,180,129) |
|
|
| 1,310,819 | |
Temporary Cash Investments (2.6%)1 |
|
|
|
| |
Money Market Fund (2.6%) |
|
|
|
| |
2,3 | Vanguard Market Liquidity Fund, 2.545% |
| 324,487 |
| 34,252 |
|
|
|
|
|
|
|
|
| Face |
| Market |
|
|
| Amount |
| Value· |
|
|
| ($000) |
| ($000) |
U.S. Government and Agency Obligations (0.0%) |
|
|
|
| |
4 | United States Treasury Bill, 2.386%, 7/5/19 |
| 300 |
| 299 |
Total Temporary Cash Investments |
|
|
| 34,551 | |
Total Investments (101.9%) |
|
|
| 1,345,370 | |
|
|
|
|
|
|
|
|
|
|
| Amount |
|
|
|
|
| ($000) |
Other Assets and Liabilities (-1.9%) |
|
|
|
| |
Other Assets |
|
| |||
Investment in Vanguard |
| 63 | |||
Receivables for Accrued Income |
| 4,502 | |||
Receivables for Capital Shares Issued |
| 115 | |||
Variation Margin Receivable-Futures Contracts |
| 15 | |||
Unrealized Appreciation-Forward Currency Contracts |
| 29 | |||
Other Assets4 |
| 1,560 | |||
Total Other Assets |
| 6,284 | |||
Liabilities |
|
| |||
Payables for Investment Securities Purchased |
| (17) | |||
Collateral for Securities on Loan |
| (27,611) | |||
Payables for Capital Shares Redeemed |
| (14) | |||
Payables to Vanguard |
| (150) | |||
Variation Margin Payable-Futures Contracts |
| (4) | |||
Unrealized Depreciation-Forward Currency Contracts |
| (65) | |||
Other Liabilities |
| (3,160) | |||
Total Liabilities |
| (31,021) | |||
Net Assets (100%) |
| 1,320,633 |
International Dividend Appreciation Index Fund
At April 30, 2019, net assets consisted of:
|
| Amount |
|
| ($000) |
Paid-in Capital |
| 1,228,821 |
Total Distributable Earnings (Loss) |
| 91,812 |
Net Assets |
| 1,320,633 |
|
|
|
Investor Shares—Net Assets |
|
|
Applicable to 435,605 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 11,607 |
Net Asset Value Per Share—Investor Shares |
| $26.65 |
|
|
|
ETF Shares—Net Assets |
|
|
Applicable to 16,731,747 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 1,114,062 |
Net Asset Value Per Share—ETF Shares |
| $66.58 |
Admiral Shares—Net Assets |
|
|
Applicable to 6,021,370 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
| 194,964 |
Net Asset Value Per Share—Admiral Shares |
| $32.38 |
· | See Note A in Notes to Financial Statements. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $26,106,000. |
* | Non-income-producing security. |
1 | The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 1.9%, respectively, of net assets. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Includes $27,611,000 of collateral received for securities on loan. |
4 | Securities with a value of $299,000 and cash of $439,000 have been segregated as initial margin for open futures contracts. ADR—American Depositary Receipt. |
International Dividend Appreciation Index Fund
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ($000 | ) |
|
|
|
| Number of |
|
|
| Value and |
|
|
|
|
| Long (Short | ) | Notional |
| Appreciation |
|
|
| Expiration |
| Contracts |
| Amount |
| (Depreciation | ) |
Long Futures Contracts |
|
|
|
|
|
|
|
|
|
MSCI Emerging Market Index |
| June 2019 |
| 55 |
| 2,971 |
| 94 |
|
Dow Jones EURO STOXX 50 Index |
| June 2019 |
| 74 |
| 2,863 |
| 74 |
|
E-mini S&P 500 Index |
| June 2019 |
| 16 |
| 2,359 |
| 44 |
|
Topix Index |
| June 2019 |
| 6 |
| 870 |
| 6 |
|
|
|
|
|
|
|
|
| 218 |
|
Forward Currency Contracts | |||||||||||||
|
| Contract |
|
|
|
|
|
|
| Unrealized |
| Unrealized |
|
|
| Settlement |
|
| Contract Amount (000) |
| Appreciation |
| (Depreciation | ) | |||
Counterparty |
| Date |
|
| Receive |
|
| Deliver |
| ($000 | ) | ($000 | ) |
Bank of America, N.A. |
| 6/26/19 |
| EUR | 3,152 |
| USD | 3,601 |
| — |
| (48 | ) |
Barclays Bank plc |
| 6/26/19 |
| EUR | 2,111 |
| USD | 2,391 |
| — |
| (12 | ) |
Bank of America, N.A. |
| 6/18/19 |
| JPY | 68,904 |
| USD | 622 |
| — |
| — |
|
RBC Capital Markets LLC |
| 6/26/19 |
| EUR | 389 |
| USD | 440 |
| — |
| (1 | ) |
RBC Capital Markets LLC |
| 6/18/19 |
| JPY | 48,060 |
| USD | 436 |
| — |
| (2 | ) |
Bank of America, N.A. |
| 6/18/19 |
| JPY | 16,270 |
| USD | 146 |
| 1 |
| — |
|
Barclays Bank plc |
| 6/18/19 |
| JPY | 15,835 |
| USD | 144 |
| — |
| (1 | ) |
BNP Paribas |
| 6/18/19 |
| JPY | 10,992 |
| USD | 99 |
| — |
| — |
|
RBC Capital Markets LLC |
| 6/26/19 |
| USD | 3,719 |
| EUR | 3,283 |
| 17 |
| — |
|
BNP Paribas |
| 7/2/19 |
| USD | 1,002 |
| JPY | 109,900 |
| 11 |
| — |
|
RBC Capital Markets LLC |
| 6/18/19 |
| USD | 577 |
| JPY | 64,100 |
| — |
| (1 | ) |
|
|
|
|
|
|
|
|
|
| 29 |
| (65 | ) |
EUR—euro.
JPY—Japanese yen.
USD—U.S. dollar.
See accompanying Notes, which are an integral part of the Financial Statements.
International Dividend Appreciation Index Fund
Statement of Operations
|
| Six Months Ended |
|
|
| April 30, 2019 |
|
|
| ($000 | ) |
Investment Income |
|
|
|
Income |
|
|
|
Dividends1 |
| 9,704 |
|
Interest2 |
| 71 |
|
Securities Lending—Net |
| 90 |
|
Total Income |
| 9,865 |
|
Expenses |
|
|
|
The Vanguard Group—Note B |
|
|
|
Investment Advisory Services |
| 157 |
|
Management and Administrative—Investor Shares |
| 14 |
|
Management and Administrative—ETF Shares |
| 926 |
|
Management and Administrative—Admiral Shares |
| 178 |
|
Marketing and Distribution—Investor Shares |
| 1 |
|
Marketing and Distribution—ETF Shares |
| 27 |
|
Marketing and Distribution—Admiral Shares |
| 6 |
|
Custodian Fees |
| 51 |
|
Shareholders’ Reports—Investor Shares |
| — |
|
Shareholders’ Reports—ETF Shares |
| 20 |
|
Shareholders’ Reports—Admiral Shares |
| 2 |
|
Trustees’ Fees and Expenses |
| — |
|
Total Expenses |
| 1,382 |
|
Expenses Paid Indirectly |
| (16 | ) |
Net Expenses |
| 1,366 |
|
Net Investment Income |
| 8,499 |
|
Realized Net Gain (Loss) |
|
|
|
Investment Securities Sold2 |
| (23,490 | ) |
Futures Contracts |
| 871 |
|
Forward Currency Contracts |
| (24 | ) |
Foreign Currencies |
| (169 | ) |
Realized Net Gain (Loss) |
| (22,812 | ) |
Change in Unrealized Appreciation (Depreciation) |
|
|
|
Investment Securities2,3 |
| 172,714 |
|
Futures Contracts |
| 290 |
|
Forward Currency Contracts |
| 13 |
|
Foreign Currencies |
| (16 | ) |
Change in Unrealized Appreciation (Depreciation) |
| 173,001 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 158,688 |
|
1 Dividends are net of foreign withholding taxes of $1,180,000.
2 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $59,000, ($2,000), and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3 The change in unrealized appreciation (depreciation) is net of deferred foreign capital gains taxes $3,160,000.
See accompanying Notes, which are an integral part of the Financial Statements.
International Dividend Appreciation Index Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
|
| Year Ended |
|
|
| ($000 | ) |
| ($000 | ) |
Increase (Decrease) in Net Assets |
|
|
|
|
| |
Operations |
|
|
|
|
| |
Net Investment Income |
| 8,499 |
| 19,437 |
| |
Realized Net Gain (Loss) |
| (22,812 | ) | 4,707 |
| |
Change in Unrealized Appreciation (Depreciation) |
| 173,001 |
| (112,710 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 158,688 |
| (88,566 | ) | |
Distributions |
|
|
|
|
| |
Net Investment Income |
|
|
|
|
| |
Investor Shares |
| (44 | ) | (223 | ) | |
ETF Shares |
| (4,334 | ) | (15,685 | ) | |
Admiral Shares |
| (852 | ) | (3,362 | ) | |
Realized Capital Gain |
|
|
|
|
| |
Investor Shares |
| — |
| — |
| |
ETF Shares |
| — |
| — |
| |
Admiral Shares |
| — |
| — |
| |
Total Distributions |
| (5,230 | ) | (19,270 | ) | |
Capital Share Transactions |
|
|
|
|
| |
Investor Shares |
| (1,128 | ) | 1,981 |
| |
ETF Shares |
| 124,736 |
| 315,063 |
| |
Admiral Shares |
| (3,381 | ) | 40,676 |
| |
Net Increase (Decrease) from Capital Share Transactions |
| 120,227 |
| 357,720 |
| |
Total Increase (Decrease) |
| 273,685 |
| 249,884 |
| |
Net Assets |
|
|
|
|
| |
Beginning of Period |
| 1,046,948 |
| 797,064 |
| |
End of Period |
| 1,320,633 |
| 1,046,948 |
|
See accompanying Notes, which are an integral part of the Financial Statements.
International Dividend Appreciation Index Fund
Financial Highlights
Investor Shares
|
| Six Months |
|
|
|
|
| Feb. 25, |
|
|
| Ended |
| Year Ended |
| 20161 to |
| ||
|
| April 30, |
| October 31, |
| Oct. 31, |
| ||
For a Share Outstanding Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
|
Net Asset Value, Beginning of Period |
| $23.47 |
| $25.71 |
| $21.77 |
| $20.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
Net Investment Income2 |
| .161 |
| .461 |
| .460 |
| .244 |
|
Net Realized and Unrealized Gain (Loss) on Investments3 |
| 3.120 |
| (2.260 | ) | 3.871 |
| 1.671 |
|
Total from Investment Operations |
| 3.281 |
| (1.799 | ) | 4.331 |
| 1.915 |
|
Distributions |
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.101 | ) | (.441 | ) | (.391 | ) | (.145 | ) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
|
Total Distributions |
| (.101 | ) | (.441 | ) | (.391 | ) | (.145 | ) |
Net Asset Value, End of Period |
| $26.65 |
| $23.47 |
| $25.71 |
| $21.77 |
|
Total Return4 |
| 14.05%5 |
| -7.13%5 |
| 20.06%5 |
| 9.57% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $12 |
| $11 |
| $11 |
| $4 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.35% |
| 0.35% |
| 0.35% |
| 0.35%6 |
|
Ratio of Net Investment Income to Average Net Assets |
| 1.34% |
| 1.73% |
| 1.86% |
| 1.50%6 |
|
Portfolio Turnover Rate7 |
| 55% |
| 36% |
| 9% |
| 8% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.00 for 2019, $.01 for 2018, and $.01 for 2017.
4 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.
5 Total returns do not include transaction fees that may have applied in the period shown. Fund prospectuses provide information about any applicable transaction fees.
6 Annualized.
7 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.
International Dividend Appreciation Index Fund
Financial Highlights
ETF Shares
|
| Six Months |
|
|
|
|
| Feb. 25, |
|
|
| Ended |
| Year Ended |
| 20161 to |
| ||
|
| April 30, |
| October 31, |
| Oct. 31, |
| ||
For a Share Outstanding Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
|
Net Asset Value, Beginning of Period |
| $58.65 |
| $64.25 |
| $54.43 |
| $50.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
Net Investment Income2 |
| .455 |
| 1.196 |
| 1.179 |
| .662 |
|
Net Realized and Unrealized Gain (Loss) on Investments3 |
| 7.763 |
| (5.623 | ) | 9.715 |
| 4.154 |
|
Total from Investment Operations |
| 8.218 |
| (4.427 | ) | 10.894 |
| 4.816 |
|
Distributions |
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.288 | ) | (1.173 | ) | (1.074 | ) | (.386 | ) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
|
Total Distributions |
| (.288 | ) | (1.173 | ) | (1.074 | ) | (.386 | ) |
Net Asset Value, End of Period |
| $66.58 |
| $58.65 |
| $64.25 |
| $54.43 |
|
Total Return |
| 14.09% |
| -7.04% |
| 20.19% |
| 9.64% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $1,114 |
| $861 |
| $634 |
| $147 |
|
Ratio of Total Expenses to Average Net Asset |
| 0.24% |
| 0.25% |
| 0.25% |
| 0.25%4 |
|
Ratio of Net Investment Income to Average Net Assets |
| 1.45% |
| 1.83% |
| 1.96% |
| 1.60%4 |
|
Portfolio Turnover Rate5 |
| 55% |
| 36% |
| 9% |
| 8% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.01 for 2019, $.02 for 2018, and $.04 for 2017.
4 Annualized.
5 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.
International Dividend Appreciation Index Fund
Financial Highlights
Admiral Shares
|
| Six Months |
|
|
|
|
| March 2, |
|
|
| Ended |
| Year Ended |
| 20161 to |
| ||
|
| April 30, |
| October 31, |
| Oct. 31, |
| ||
For a Share Outstanding Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
|
Net Asset Value, Beginning of Period |
| $28.52 |
| $31.24 |
| $26.45 |
| $25.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
Net Investment Income2 |
| .212 |
| .576 |
| .573 |
| .285 |
|
Net Realized and Unrealized Gain (Loss) on Investments3 |
| 3.787 |
| (2.727 | ) | 4.720 |
| 1.352 |
|
Total from Investment Operations |
| 3.999 |
| (2.151 | ) | 5.293 |
| 1.637 |
|
Distributions |
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.139 | ) | (.569 | ) | (.503 | ) | (.187 | ) |
Distributions from Realized Capital Gains |
| — |
| — |
| — |
| — |
|
Total Distributions |
| (.139 | ) | (.569 | ) | (.503 | ) | (.187 | ) |
Net Asset Value, End of Period |
| $32.38 |
| $28.52 |
| $31.24 |
| $26.45 |
|
Total Return4 |
| 14.10%5 |
| -7.03%5 |
| 20.18%5 |
| 6.54% |
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $195 |
| $175 |
| $152 |
| $77 |
|
Ratio of Total Expenses to Average Net Assets |
| 0.24% |
| 0.25% |
| 0.25% |
| 0.25%6 |
|
Ratio of Net Investment Income to Average Net Assets |
| 1.45% |
| 1.83% |
| 1.96% |
| 1.60%6 |
|
Portfolio Turnover Rate7 |
| 55% |
| 36% |
| 9% |
| 8% |
|
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.00 for 2019, $.01 for 2018, and $.02 for 2017.
4 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.
5 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
6 Annualized.
7 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.
International Dividend Appreciation Index Fund
Notes to Financial Statements
Vanguard International Dividend Appreciation Index 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. The fund offers three classes of shares: Investor 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 Nasdaq; they can be purchased and sold through a broker.
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 at their fair values calculated according to procedures adopted 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. Futures and Forward Currency 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
International Dividend Appreciation Index Fund
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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
The fund also enters into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts 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. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, 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 forward currency 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 assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency 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.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets 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 or forward currency contracts.
During the six months ended April 30, 2019, 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. The fund’s average investment in forward currency contracts represented 1% of net assets, based on the average of the 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 all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2016–2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 and may differ from net investment income and realized capital gains for financial reporting purposes.
International Dividend Appreciation Index Fund
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 Net Assets for the return of the collateral, during the period the securities are on loan. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. Foreign capital gains tax is accrued daily based upon net unrealized gains. 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. Fees assessed on capital share transactions are credited to paid-in capital.
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
International Dividend Appreciation Index Fund
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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $63,000, representing 0.00% of the fund’s net assets and 0.03% of Vanguard’s capitalization. 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 six months ended April 30, 2019, custodian fee offset arrangements reduced the fund’s expenses by $16,000 (an annual rate of 0.00% of average net assets).
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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
|
| Level 1 |
| Level 2 |
| Level 3 |
Investments |
| ($000 | ) | ($000 | ) | ($000) |
Common Stocks—North and South America |
| 122,242 |
| 988 |
| — |
Common Stocks—Other |
| 27,600 |
| 1,159,989 |
| — |
Temporary Cash Investments |
| 34,252 |
| 299 |
| — |
Futures Contracts—Assets1 |
| 15 |
| — |
| — |
Futures Contracts—Liabilities1 |
| (4 | ) | — |
| — |
Forward Currency Contracts—Assets |
| — |
| 29 |
| — |
Forward Currency Contracts—Liabilities |
| — |
| (65 | ) | — |
Total |
| 184,105 |
| 1,161,240 |
| — |
1 Represents variation margin on the last day of the reporting period.
International Dividend Appreciation Index Fund
E. At April 30, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:
Statement of Net Assets Caption |
| Equity | ) | Foreign | ) | Total | ) |
Variation Margin Receivable—Futures Contracts |
| 15 |
| — |
| 15 |
|
Unrealized Appreciation—Forward Currency Contracts |
| — |
| 29 |
| 29 |
|
Total Assets |
| 15 |
| 29 |
| 44 |
|
|
|
|
|
|
|
|
|
Variation Margin Payable—Futures Contracts |
| (4 | ) | — |
| (4 | ) |
Unrealized Depreciation—Forward Currency Contracts |
| — |
| (65 | ) | (65 | ) |
Total Liabilities |
| (4 | ) | (65 | ) | (69 | ) |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2019, were:
Realized Net Gain (Loss) on Derivatives |
| Equity | ) | Foreign | ) | Total | ) |
Futures Contracts |
| 871 |
| — |
| 871 |
|
Forward Currency Contracts |
| — |
| (24 | ) | (24 | ) |
Realized Net Gain (Loss) on Derivatives |
| 871 |
| (24 | ) | 847 |
|
|
|
|
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|
|
|
|
|
|
|
Futures Contracts |
| 290 |
| — |
| 290 |
|
Forward Currency Contracts |
| — |
| 13 |
| 13 |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
| 290 |
| 13 |
| 303 |
|
F. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount |
|
|
| ($000 | ) |
Tax Cost |
| 1,218,321 |
|
Gross Unrealized Appreciation |
| 162,185 |
|
Gross Unrealized Depreciation |
| (34,954 | ) |
Net Unrealized Appreciation (Depreciation) |
| 127,231 |
|
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2018, the fund had available capital losses totaling $18,445,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital
International Dividend Appreciation Index Fund
losses to offset net taxable capital gains, if any, realized during the year ending October 31, 2019; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
G. During the six months ended April 30, 2019, the fund purchased $635,837,000 of investment securities and sold $519,498,000 of investment securities, other than temporary cash investments. Purchases and sales include $98,333,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
H. Capital share transactions for each class of shares were:
|
| Six Months Ended |
| Year Ended |
| ||||
|
| Amount | ) | Shares | ) | Amount | ) | Shares | ) |
Investor Shares |
|
|
|
|
|
|
|
|
|
Issued1 |
| 1,524 |
| 60 |
| 9,433 |
| 358 |
|
Issued in Lieu of Cash Distributions |
| 41 |
| 2 |
| 210 |
| 8 |
|
Redeemed2 |
| (2,693 | ) | (111 | ) | (7,662 | ) | (294 | ) |
Net Increase (Decrease)—Investor Shares |
| (1,128 | ) | (49 | ) | 1,981 |
| 72 |
|
ETF Shares |
|
|
|
|
|
|
|
|
|
Issued1 |
| 124,736 |
| 2,057 |
| 351,000 |
| 5,355 |
|
Issued in Lieu of Cash Distributions |
| — |
| — |
| — |
| — |
|
Redeemed2 |
| — |
| — |
| (35,937 | ) | (550 | ) |
Net Increase (Decrease)—ETF Shares |
| 124,736 |
| 2,057 |
| 315,063 |
| 4,805 |
|
Admiral Shares |
|
|
|
|
|
|
|
|
|
Issued1 |
| 21,792 |
| 737 |
| 77,590 |
| 2,422 |
|
Issued in Lieu of Cash Distributions |
| 702 |
| 25 |
| 2,791 |
| 90 |
|
Redeemed2 |
| (25,875 | ) | (871 | ) | (39,705 | ) | (1,257 | ) |
Net Increase (Decrease)—Admiral Shares |
| (3,381 | ) | (109 | ) | 40,676 |
| 1,255 |
|
1 Includes purchase fees for fiscal 2019 and 2018 of $101,000 and $212,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2019 and 2018 of $80,000 and $102,000, respectively (fund totals).
I. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
International High Dividend Yield Index Fund
Sector Diversification
As of April 30, 2019
Basic Materials | 7.4% |
Consumer Goods | 9.5 |
Consumer Services | 3.7 |
Financials | 38.9 |
Health Care | 4.5 |
Industrials | 9.8 |
Oil & Gas | 11.4 |
Other | 0.0 |
Technology | 4.0 |
Telecommunications | 5.7 |
Utilities | 5.1 |
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.
International High Dividend Yield Index Fund
Financial Statements (unaudited)
Statement of Net Assets
As of April 30, 2019
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 will be available on the SEC’s website at www.sec.gov.
|
|
| Shares |
| Market Value· ($000) |
Common Stocks (99.1%)1 |
|
|
|
| |
Australia (7.3%) |
|
|
|
| |
| Commonwealth Bank of Australia |
| 224,541 |
| 11,801 |
| BHP Group Ltd. |
| 375,998 |
| 9,950 |
| Westpac Banking Corp. |
| 436,490 |
| 8,479 |
| Australia & New Zealand Banking Group Ltd. |
| 364,187 |
| 6,987 |
| National Australia Bank Ltd. |
| 353,733 |
| 6,316 |
| Woolworths Group Ltd. |
| 168,822 |
| 3,790 |
| Macquarie Group Ltd. |
| 39,069 |
| 3,713 |
| Wesfarmers Ltd. |
| 144,268 |
| 3,662 |
| Rio Tinto Ltd. |
| 47,805 |
| 3,222 |
| Transurban Group |
| 340,226 |
| 3,222 |
| Woodside Petroleum Ltd. |
| 119,711 |
| 2,984 |
| Amcor Ltd. |
| 150,382 |
| 1,700 |
| Insurance Australia Group Ltd. |
| 295,075 |
| 1,640 |
| QBE Insurance Group Ltd. |
| 170,078 |
| 1,551 |
| South32 Ltd. |
| 656,371 |
| 1,550 |
| Suncorp Group Ltd. |
| 164,659 |
| 1,541 |
| ASX Ltd. |
| 25,150 |
| 1,321 |
| AGL Energy Ltd. |
| 83,626 |
| 1,312 |
| Telstra Corp. Ltd. |
| 526,724 |
| 1,255 |
| Origin Energy Ltd. |
| 228,233 |
| 1,186 |
| Sonic Healthcare Ltd. |
| 59,975 |
| 1,085 |
| Fortescue Metals Group Ltd. |
| 207,948 |
| 1,051 |
| APA Group |
| 150,608 |
| 1,022 |
| Tabcorp Holdings Ltd. |
| 246,215 |
| 831 |
| Aurizon Holdings Ltd. |
| 243,003 |
| 815 |
| Sydney Airport |
| 142,263 |
| 765 |
| Medibank Pvt Ltd. |
| 352,517 |
| 710 |
| Lendlease Group |
| 74,015 |
| 694 |
| Caltex Australia Ltd. |
| 34,241 |
| 657 |
| AMP Ltd. |
| 379,296 |
| 608 |
| Boral Ltd. |
| 155,610 |
| 533 |
| Magellan Financial Group Ltd. |
| 16,530 |
| 520 |
| Alumina Ltd. |
| 322,468 |
| 510 |
| Incitec Pivot Ltd. |
| 204,339 |
| 486 |
| Bendigo & Adelaide Bank Ltd. |
| 63,367 |
| 460 |
| Challenger Ltd. |
| 76,672 |
| 444 |
| Crown Resorts Ltd. |
| 46,047 |
| 432 |
| Atlas Arteria Ltd. |
| 86,729 |
| 428 |
| CIMIC Group Ltd. |
| 11,868 |
| 423 |
| Downer EDI Ltd. |
| 75,597 |
| 413 |
| Coca-Cola Amatil Ltd. |
| 64,259 |
| 399 |
| Bank of Queensland Ltd. |
| 51,926 |
| 339 |
| Star Entertainment Grp Ltd. |
| 104,877 |
| 336 |
| DuluxGroup Ltd. |
| 46,389 |
| 319 |
| Orora Ltd. |
| 147,027 |
| 314 |
| Qantas Airways Ltd. |
| 74,238 |
| 294 |
| AusNet Services |
| 221,925 |
| 278 |
| Whitehaven Coal Ltd. |
| 80,060 |
| 237 |
| Metcash Ltd. |
| 105,620 |
| 214 |
| Flight Centre Travel Group Ltd. |
| 7,124 |
| 193 |
^ | Harvey Norman Holdings Ltd. |
| 65,162 |
| 192 |
| IOOF Holdings Ltd. |
| 40,396 |
| 185 |
| Adelaide Brighton Ltd. |
| 54,002 |
| 165 |
| CSR Ltd. |
| 61,240 |
| 154 |
| Sims Metal Management Ltd. |
| 20,257 |
| 148 |
| Perpetual Ltd. |
| 5,110 |
| 147 |
| Platinum Asset Management Ltd. |
| 24,430 |
| 86 |
| Brambles Ltd. |
| 954 |
| 8 |
* | Coles Group Ltd. |
| 413 |
| 4 |
| Healthscope Ltd. |
| 1,458 |
| 2 |
|
|
|
|
| 94,083 |
Austria (0.3%) |
|
|
|
| |
| Erste Group Bank AG |
| 36,516 |
| 1,461 |
| OMV AG |
| 18,036 |
| 967 |
| voestalpine AG |
| 15,191 |
| 489 |
| Raiffeisen Bank International AG |
| 16,683 |
| 445 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| ANDRITZ AG |
| 9,131 |
| 436 |
| Vienna Insurance Group AG Wiener Versicherung Gruppe |
| 4,048 |
| 113 |
|
|
|
|
| 3,911 |
Belgium (0.5%) |
|
|
|
| |
| KBC Group NV |
| 34,617 |
| 2,570 |
| Ageas |
| 23,776 |
| 1,256 |
| Solvay SA Class A |
| 8,886 |
| 1,071 |
| Groupe Bruxelles Lambert SA |
| 9,305 |
| 891 |
| Proximus SADP |
| 17,628 |
| 494 |
| bpost SA |
| 81 |
| 1 |
|
|
|
|
| 6,283 |
Brazil (2.3%) |
|
|
|
| |
| Vale SA |
| 439,000 |
| 5,609 |
| Itau Unibanco Holding SA ADR |
| 459,149 |
| 3,972 |
| Banco Bradesco SA ADR |
| 308,295 |
| 2,793 |
| Ambev SA ADR |
| 441,790 |
| 2,081 |
| Banco Bradesco SA Preference Shares |
| 186,874 |
| 1,696 |
| Banco do Brasil SA |
| 131,590 |
| 1,667 |
| Itausa - Investimentos Itau SA Preference Shares |
| 530,369 |
| 1,611 |
| Itau Unibanco Holding SA Preference Shares |
| 153,880 |
| 1,328 |
| Banco Bradesco SA |
| 142,072 |
| 1,123 |
| Ambev SA |
| 126,700 |
| 597 |
| BB Seguridade Participacoes SA |
| 81,700 |
| 589 |
| Banco Santander Brasil SA |
| 51,192 |
| 588 |
| Telefonica Brasil SA ADR |
| 48,977 |
| 583 |
| IRB Brasil Resseguros S/A |
| 22,953 |
| 550 |
| Kroton Educacional SA |
| 190,710 |
| 474 |
| CCR SA |
| 134,963 |
| 402 |
| Hypera SA |
| 48,100 |
| 344 |
| Klabin SA |
| 78,400 |
| 332 |
^ | Cia Energetica de Minas Gerais ADR |
| 89,056 |
| 330 |
| TIM Participacoes SA |
| 95,200 |
| 284 |
| Cielo SA |
| 137,800 |
| 270 |
| Banco BTG Pactual SA |
| 22,829 |
| 241 |
| Petrobras Distribuidora SA |
| 38,400 |
| 232 |
| Cosan SA |
| 18,100 |
| 216 |
| Engie Brasil Energia SA |
| 18,850 |
| 214 |
| Bradespar SA Preference Shares |
| 25,282 |
| 206 |
| Estacio Participacoes SA |
| 29,600 |
| 205 |
| EDP - Energias do Brasil SA |
| 36,350 |
| 162 |
| Transmissora Alianca de Energia Eletrica SA |
| 22,400 |
| 150 |
| Porto Seguro SA |
| 10,700 |
| 148 |
| Banco do Estado do Rio Grande do Sul SA Preference Shares |
| 20,600 |
| 128 |
| Fleury SA |
| 22,700 |
| 120 |
| Cia de Transmissao de Energia Eletrica Paulista Preference Shares |
| 22,008 |
| 118 |
| Cia Paranaense de Energia Preference Shares |
| 10,700 |
| 112 |
| Cia Energetica de Minas Gerais Preference Shares |
| 26,457 |
| 99 |
| Telefonica Brasil SA Preference Shares |
| 4,300 |
| 51 |
| Via Varejo SA |
| 43,900 |
| 46 |
| Cia Paranaense de Energia ADR |
| 996 |
| 10 |
| Cia Energetica de Minas Gerais |
| 957 |
| 4 |
|
|
|
|
| 29,685 |
Canada (6.7%) |
|
|
|
| |
| Royal Bank of Canada |
| 184,071 |
| 14,670 |
| Toronto-Dominion Bank |
| 234,921 |
| 13,400 |
| Enbridge Inc. |
| 254,089 |
| 9,386 |
| Bank of Nova Scotia |
| 156,938 |
| 8,643 |
| Bank of Montreal |
| 81,254 |
| 6,418 |
| TransCanada Corp. |
| 116,697 |
| 5,569 |
| Canadian Imperial Bank of Commerce |
| 56,489 |
| 4,757 |
| Manulife Financial Corp. |
| 252,949 |
| 4,658 |
| Sun Life Financial Inc. |
| 76,584 |
| 3,182 |
| Pembina Pipeline Corp. |
| 64,734 |
| 2,314 |
| National Bank of Canada |
| 43,285 |
| 2,062 |
| Fortis Inc. |
| 55,044 |
| 2,035 |
| BCE Inc. |
| 38,329 |
| 1,715 |
| Shaw Communications Inc.Class B |
| 57,115 |
| 1,157 |
| Power Corp. of Canada |
| 49,887 |
| 1,145 |
| TELUS Corp. |
| 25,393 |
| 935 |
| Great-West Lifeco Inc. |
| 35,295 |
| 887 |
| Inter Pipeline Ltd. |
| 52,984 |
| 863 |
| Power Financial Corp. |
| 31,510 |
| 751 |
2 | Hydro One Ltd. |
| 40,097 |
| 649 |
| Canadian Utilities Ltd.Class A |
| 15,497 |
| 427 |
| IGM Financial Inc. |
| 10,650 |
| 294 |
| CI Financial Corp. |
| 354 |
| 5 |
|
|
|
|
| 85,922 |
Chile (0.2%) |
|
|
|
| |
| Banco Santander Chile ADR |
| 19,601 |
| 549 |
| Enel Americas SA ADR |
| 57,937 |
| 506 |
| Sociedad Quimica y Minera de Chile SA Preference Shares Class B |
| 11,831 |
| 422 |
| Enel Chile SA |
| 2,407,477 |
| 242 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Colbun SA |
| 841,407 |
| 188 |
| Enel Americas SA |
| 694,321 |
| 122 |
| AES Gener SA |
| 403,703 |
| 110 |
| Enel Chile SA ADR |
| 21,294 |
| 107 |
| Engie Energia Chile SA |
| 37,389 |
| 72 |
| Embotelladora Andina SA Preference Shares |
| 15,440 |
| 55 |
| Banco de Chile |
| 11,240 |
| 2 |
|
|
|
|
| 2,375 |
China (5.8%) |
|
|
|
| |
| China Construction Bank Corp. |
| 11,392,000 |
| 10,043 |
| Industrial & Commercial Bank of China Ltd. |
| 9,965,000 |
| 7,495 |
| China Mobile Ltd. |
| 677,338 |
| 6,463 |
| Bank of China Ltd. |
| 9,692,000 |
| 4,628 |
| CNOOC Ltd. |
| 2,027,000 |
| 3,682 |
| China Petroleum & Chemical Corp. |
| 3,237,000 |
| 2,488 |
| China Merchants Bank Co. Ltd. |
| 477,040 |
| 2,361 |
| Agricultural Bank of China Ltd. |
| 3,960,000 |
| 1,830 |
| China Overseas Land & Investment Ltd. |
| 488,000 |
| 1,828 |
| PetroChina Co. Ltd. |
| 2,678,000 |
| 1,698 |
| China Resources Land Ltd. |
| 346,000 |
| 1,507 |
| Country Garden Holdings Co. Ltd. |
| 931,000 |
| 1,500 |
| Sunac China Holdings Ltd. |
| 288,706 |
| 1,488 |
| China Pacific Insurance Group Co. Ltd. |
| 331,400 |
| 1,360 |
| China Shenhua Energy Co. Ltd. |
| 440,000 |
| 974 |
| Anhui Conch Cement Co.Ltd. |
| 155,044 |
| 946 |
| CITIC Ltd. |
| 640,000 |
| 932 |
| China Evergrande Group |
| 280,000 |
| 898 |
| Bank of Communications Co. Ltd. |
| 1,022,000 |
| 862 |
| Hengan International Group Co. Ltd. |
| 92,767 |
| 816 |
| China Vanke Co. Ltd. |
| 202,908 |
| 785 |
| Longfor Group Holdings Ltd. |
| 210,500 |
| 778 |
2 | Postal Savings Bank of China Co. Ltd. |
| 1,225,000 |
| 745 |
| Guangdong Investment Ltd. |
| 382,000 |
| 715 |
| China CITIC Bank Corp.Ltd. |
| 1,097,320 |
| 704 |
| China Minsheng Banking Corp. Ltd. |
| 874,100 |
| 657 |
| China Communications Construction Co. Ltd. |
| 564,000 |
| 543 |
| China Jinmao Holdings Group Ltd. |
| 762,000 |
| 494 |
| China National Building Material Co. Ltd. |
| 510,000 |
| 475 |
| Shimao Property Holdings Ltd. |
| 155,000 |
| 472 |
| Guangzhou Automobile Group Co. Ltd. |
| 412,000 |
| 444 |
| Beijing Enterprises Water Group Ltd. |
| 678,000 |
| 421 |
| Weichai Power Co. Ltd. |
| 245,000 |
| 401 |
2 | CGN Power Co. Ltd. |
| 1,499,000 |
| 396 |
| Kunlun Energy Co. Ltd. |
| 358,000 |
| 379 |
| Dongfeng Motor Group Co. Ltd. |
| 384,000 |
| 373 |
| China Resources Power Holdings Co. Ltd. |
| 254,000 |
| 355 |
| Huaneng Power International Inc. |
| 530,000 |
| 339 |
| Great Wall Motor Co. Ltd. |
| 395,000 |
| 322 |
| China Merchants Port Holdings Co. Ltd. |
| 154,000 |
| 312 |
| China Cinda Asset Management Co. Ltd. |
| 1,123,000 |
| 300 |
| Kingboard Holdings Ltd. |
| 90,500 |
| 295 |
| China Resources Cement Holdings Ltd. |
| 288,000 |
| 289 |
| CIFI Holdings Group Co.Ltd. |
| 422,000 |
| 280 |
| Far East Horizon Ltd. |
| 247,000 |
| 275 |
| Zijin Mining Group Co. Ltd. |
| 692,000 |
| 270 |
| Guangzhou R&F Properties Co. Ltd. |
| 130,400 |
| 259 |
| Agile Group Holdings Ltd. |
| 170,000 |
| 257 |
| Yanzhou Coal Mining Co. Ltd. |
| 236,000 |
| 252 |
| Shenzhen International Holdings Ltd. |
| 116,500 |
| 252 |
*,2 | China Huarong Asset Management Co. Ltd. |
| 1,154,000 |
| 248 |
| Future Land Development Holdings Ltd. |
| 204,000 |
| 243 |
| China State Construction International Holdings Ltd. |
| 232,000 |
| 241 |
| Jiangsu Expressway Co.Ltd. |
| 156,000 |
| 222 |
| COSCO SHIPPING Ports Ltd. |
| 220,000 |
| 219 |
| Sinopec Shanghai Petrochemical Co. Ltd. |
| 466,000 |
| 211 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
2 | Fuyao Glass Industry Group Co. Ltd. |
| 60,000 |
| 211 |
| Logan Property Holdings Co. Ltd. |
| 128,000 |
| 204 |
| China Everbright Bank Co. Ltd. |
| 407,000 |
| 201 |
| Nine Dragons Paper Holdings Ltd. |
| 209,000 |
| 193 |
| KWG Group Holdings Ltd. |
| 164,000 |
| 192 |
| Yuexiu Property Co. Ltd. |
| 816,000 |
| 189 |
| Chongqing Rural Commercial Bank Co.Ltd. |
| 322,000 |
| 188 |
| China Molybdenum Co.Ltd. |
| 489,000 |
| 185 |
| Zhejiang Expressway Co.Ltd. |
| 164,000 |
| 176 |
| Sinotruk Hong Kong Ltd. |
| 81,000 |
| 176 |
| China Everbright Ltd. |
| 96,000 |
| 175 |
2 | Dali Foods Group Co. Ltd. |
| 243,000 |
| 173 |
| Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B |
| 111,635 |
| 169 |
| China Power International Development Ltd. |
| 618,370 |
| 165 |
| Shenzhen Investment Ltd. |
| 414,000 |
| 165 |
2 | Sinopec Engineering Group Co. Ltd. |
| 169,000 |
| 163 |
| Sino-Ocean Group Holding Ltd. |
| 356,000 |
| 160 |
| Lee & Man Paper Manufacturing Ltd. |
| 196,000 |
| 159 |
| China Reinsurance Group Corp. |
| 755,000 |
| 154 |
| Kingboard Laminates Holdings Ltd. |
| 135,000 |
| 142 |
| China Medical System Holdings Ltd. |
| 154,000 |
| 137 |
2 | BAIC Motor Corp. Ltd. |
| 179,000 |
| 126 |
| Shanghai Industrial Holdings Ltd. |
| 49,000 |
| 115 |
| Shenzhen Expressway Co. Ltd. |
| 92,000 |
| 112 |
| Sinotrans Ltd. |
| 260,000 |
| 107 |
| Yanlord Land Group Ltd. |
| 92,900 |
| 100 |
| China Zhongwang Holdings Ltd. |
| 180,400 |
| 99 |
| Metallurgical Corp. of China Ltd. |
| 353,000 |
| 98 |
| Poly Property Group Co.Ltd. |
| 230,000 |
| 97 |
| Maanshan Iron & Steel Co. Ltd. |
| 204,000 |
| 94 |
| Zoomlion Heavy Industry Science and Technology Co. Ltd. |
| 159,200 |
| 93 |
| Datang International Power Generation Co. Ltd. |
| 346,000 |
| 90 |
| Huadian Power International Corp. Ltd. |
| 206,000 |
| 88 |
| Angang Steel Co. Ltd. |
| 130,000 |
| 88 |
| Bosideng International Holdings Ltd. |
| 312,000 |
| 86 |
| Greentown China Holdings Ltd. |
| 93,000 |
| 84 |
| Hopson Development Holdings Ltd. |
| 76,000 |
| 83 |
| Huadian Fuxin Energy Corp. Ltd. |
| 350,000 |
| 75 |
| Huaxin Cement Co. Ltd. Class B |
| 25,500 |
| 75 |
| China Machinery Engineering Corp. |
| 150,000 |
| 73 |
2 | Red Star Macalline Group Corp. Ltd. |
| 74,757 |
| 71 |
| Chongqing Changan Automobile Co. Ltd. Class B |
| 132,400 |
| 69 |
| China International Marine Containers Group Co. Ltd. |
| 53,300 |
| 67 |
| Guangshen Railway Co. Ltd. |
| 182,000 |
| 65 |
| China Dongxiang Group Co. Ltd. |
| 419,000 |
| 62 |
| China BlueChemical Ltd. |
| 176,000 |
| 60 |
| Anhui Expressway Co. Ltd. |
| 74,000 |
| 50 |
| Weifu High-Technology Group Co. Ltd. Class B |
| 23,200 |
| 45 |
| Shanghai Jinjiang International Hotels Development Co. Ltd.Class B |
| 18,600 |
| 41 |
| Sichuan Expressway Co. Ltd. |
| 118,000 |
| 39 |
| China South City Holdings Ltd. |
| 220,000 |
| 33 |
| Shandong Chenming Paper Holdings Ltd. |
| 61,500 |
| 32 |
| Beijing Jingneng Clean Energy Co. Ltd. |
| 122,000 |
| 24 |
2 | China Galaxy Securities Co. Ltd. |
| 2,000 |
| 1 |
| PICC Property & Casualty Co. Ltd. |
| 1,000 |
| 1 |
| GF Securities Co. Ltd. |
| 600 |
| 1 |
2 | China Merchants Securities Co. Ltd. |
| 400 |
| 1 |
|
|
|
|
| 74,144 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
Colombia (0.1%) |
|
|
|
| |
| Ecopetrol SA ADR |
| 27,520 |
| 509 |
| Interconexion Electrica SA ESP |
| 51,374 |
| 251 |
| Grupo Aval Acciones y Valores Preference Shares |
| 372,586 |
| 143 |
| Ecopetrol SA |
| 54,855 |
| 51 |
| Bancolombia SA Preference Shares |
| 306 |
| 4 |
|
|
|
|
| 958 |
Czech Republic (0.1%) |
|
|
|
| |
| CEZ AS |
| 20,691 |
| 482 |
| Komercni banka as |
| 9,863 |
| 374 |
2 | Moneta Money Bank AS |
| 61,234 |
| 196 |
| O2 Czech Republic AS |
| 5,665 |
| 62 |
| Philip Morris CR AS |
| 74 |
| 44 |
|
|
|
|
| 1,158 |
Denmark (0.2%) |
|
|
|
| |
| Danske Bank A/S |
| 84,243 |
| 1,497 |
| ISS A/S |
| 24,374 |
| 759 |
| Pandora A/S |
| 12,578 |
| 528 |
| Tryg A/S |
| 14,848 |
| 455 |
| H Lundbeck A/S |
| 14 |
| 1 |
|
|
|
|
| 3,240 |
Egypt (0.0%) |
|
|
|
| |
| Eastern Co. SAE |
| 116,421 |
| 123 |
| ElSewedy Electric Co. |
| 97,760 |
| 89 |
| Egypt Kuwait Holding Co. SAE |
| 54,493 |
| 79 |
| Telecom Egypt Co. |
| 45,428 |
| 37 |
| Abou Kir Fertilizers & Chemical Industries |
| 17,092 |
| 27 |
|
|
|
|
| 355 |
Finland (1.5%) |
|
|
|
| |
| Nokia Oyj |
| 711,707 |
| 3,740 |
| Nordea Bank Abp |
| 404,735 |
| 3,276 |
| Sampo Oyj Class A |
| 61,916 |
| 2,835 |
| Kone Oyj Class B |
| 49,717 |
| 2,732 |
| UPM-Kymmene Oyj |
| 68,170 |
| 1,925 |
| Fortum Oyj |
| 54,377 |
| 1,153 |
| Stora Enso Oyi |
| 73,058 |
| 910 |
| Elisa Oyj |
| 17,940 |
| 762 |
| Nokian Renkaat Oyj |
| 17,189 |
| 576 |
| Metso Oyj |
| 13,795 |
| 516 |
| Kesko Oyj Class B |
| 9,075 |
| 472 |
| Orion Oyj Class B |
| 13,557 |
| 452 |
|
|
|
|
| 19,349 |
France (6.3%) |
|
|
|
| |
| TOTAL SA |
| 319,324 |
| 17,752 |
^ | Sanofi |
| 138,478 |
| 12,082 |
| BNP Paribas SA |
| 137,805 |
| 7,336 |
^ | AXA SA |
| 245,639 |
| 6,550 |
| Schneider Electric SE |
| 65,068 |
| 5,506 |
| Orange SA |
| 243,660 |
| 3,808 |
| Societe Generale SA |
| 92,509 |
| 2,934 |
| Cie Generale des Etablissements Michelin SCA |
| 22,243 |
| 2,876 |
| Cie de Saint-Gobain |
| 62,403 |
| 2,558 |
| Credit Agricole SA |
| 145,321 |
| 1,996 |
^ | Peugeot SA |
| 69,924 |
| 1,833 |
| Publicis Groupe SA |
| 26,967 |
| 1,603 |
| Renault SA |
| 23,473 |
| 1,601 |
| Veolia Environnement SA |
| 63,069 |
| 1,492 |
| Engie SA |
| 76,507 |
| 1,136 |
| Valeo SA |
| 30,774 |
| 1,119 |
^ | Bouygues SA |
| 26,995 |
| 1,016 |
* | Engie Loyalty Line 2021 |
| 65,712 |
| 975 |
^ | SCOR SE |
| 20,187 |
| 824 |
| SES SA Class A |
| 46,402 |
| 790 |
| Engie Loyalty Line 2020 |
| 47,482 |
| 705 |
| Suez |
| 46,646 |
| 656 |
| Natixis SA |
| 108,534 |
| 640 |
2 | Amundi SA |
| 7,487 |
| 539 |
| Rexel SA |
| 40,027 |
| 538 |
^ | CNP Assurances |
| 19,874 |
| 469 |
| Eutelsat Communications SA |
| 23,950 |
| 433 |
| Lagardere SCA |
| 15,160 |
| 413 |
| Engie |
| 18,936 |
| 281 |
| Societe BIC SA |
| 3,231 |
| 278 |
| Casino Guichard Perrachon SA |
| 6,563 |
| 269 |
| Imerys SA |
| 4,565 |
| 243 |
2 | ALD SA |
| 10,242 |
| 151 |
|
|
|
|
| 81,402 |
Germany (7.5%) |
|
|
|
| |
| Allianz SE |
| 53,907 |
| 13,030 |
| Siemens AG |
| 97,827 |
| 11,730 |
| BASF SE |
| 116,627 |
| 9,522 |
| Bayer AG |
| 119,017 |
| 7,919 |
* | Daimler AG |
| 109,177 |
| 7,166 |
| Deutsche Telekom AG |
| 410,630 |
| 6,880 |
* | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen |
| 19,020 |
| 4,733 |
* | Deutsche Post AG |
| 123,628 |
| 4,297 |
| Volkswagen AG Preference Shares |
| 23,135 |
| 4,039 |
| Bayerische Motoren Werke AG |
| 41,261 |
| 3,520 |
| Vonovia SE |
| 65,875 |
| 3,292 |
| E.ON SE |
| 275,774 |
| 2,965 |
* | RWE AG |
| 68,199 |
| 1,749 |
| HeidelbergCement AG |
| 19,302 |
| 1,562 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Porsche Automobil Holding SE Preference Shares |
| 19,558 |
| 1,360 |
* | Commerzbank AG |
| 134,715 |
| 1,214 |
| Hannover Rueck SE |
| 7,494 |
| 1,132 |
2 | Covestro AG |
| 20,381 |
| 1,120 |
| LEG Immobilien AG |
| 8,239 |
| 961 |
| Uniper SE |
| 25,298 |
| 768 |
| Volkswagen AG |
| 4,139 |
| 742 |
| Deutsche Lufthansa AG |
| 30,670 |
| 742 |
| Aroundtown SA |
| 86,076 |
| 699 |
| Evonik Industries AG |
| 21,914 |
| 654 |
| GEA Group AG |
| 21,736 |
| 609 |
| HUGO BOSS AG |
| 8,512 |
| 595 |
| Bayerische Motoren Werke AG Preference Shares |
| 7,154 |
| 529 |
| ProSiebenSat.1 Media SE |
| 29,709 |
| 470 |
*,2 | Innogy ORD SE |
| 8,884 |
| 412 |
| HOCHTIEF AG |
| 2,598 |
| 388 |
| METRO AG |
| 21,070 |
| 358 |
* | Innogy SE |
| 7,579 |
| 329 |
| Axel Springer SE |
| 5,489 |
| 311 |
| RTL Group SA |
| 4,615 |
| 260 |
| Telefonica Deutschland Holding AG |
| 77,808 |
| 253 |
| 1&1 Drillisch AG |
| 6,062 |
| 226 |
| Talanx AG |
| 4,238 |
| 170 |
* | CECONOMY AG |
| 123 |
| 1 |
|
|
|
|
| 96,707 |
Greece (0.1%) |
|
|
|
| |
| Hellenic Telecommunications Organization SA |
| 31,539 |
| 438 |
| OPAP SA |
| 27,930 |
| 302 |
| Motor Oil Hellas Corinth Refineries SA |
| 6,869 |
| 175 |
| Mytilineos Holdings SA |
| 12,002 |
| 130 |
| Hellenic Petroleum SA |
| 7,538 |
| 70 |
|
|
|
|
| 1,115 |
Hong Kong (2.3%) |
|
|
|
| |
| CK Hutchison Holdings Ltd. |
| 342,500 |
| 3,601 |
| Sun Hung Kai Properties Ltd. |
| 179,500 |
| 3,098 |
| Hang Seng Bank Ltd. |
| 92,300 |
| 2,425 |
| CLP Holdings Ltd. |
| 208,000 |
| 2,361 |
| BOC Hong Kong Holdings Ltd. |
| 457,500 |
| 2,051 |
| Sands China Ltd. |
| 308,400 |
| 1,697 |
2 | WH Group Ltd. |
| 1,070,639 |
| 1,267 |
| New World Development Co. Ltd. |
| 740,000 |
| 1,226 |
| Wharf Real Estate Investment Co. Ltd. |
| 158,000 |
| 1,211 |
| Power Assets Holdings Ltd. |
| 168,351 |
| 1,174 |
| Henderson Land Development Co. Ltd. |
| 151,008 |
| 931 |
| Lenovo Group Ltd. |
| 968,000 |
| 897 |
| Swire Pacific Ltd. Class A |
| 64,880 |
| 822 |
| Sino Land Co. Ltd. |
| 404,000 |
| 711 |
| CK Infrastructure Holdings Ltd. |
| 79,652 |
| 646 |
| Hang Lung Properties Ltd. |
| 247,144 |
| 582 |
| Wynn Macau Ltd. |
| 191,200 |
| 550 |
| Hysan Development Co. Ltd. |
| 87,000 |
| 488 |
| NWS Holdings Ltd. |
| 182,000 |
| 378 |
§ | Hopewell Holdings Ltd. |
| 68,500 |
| 337 |
| PCCW Ltd. |
| 528,000 |
| 318 |
| Kerry Properties Ltd. |
| 70,500 |
| 302 |
| Xinyi Glass Holdings Ltd. |
| 258,000 |
| 295 |
| Yue Yuen Industrial Holdings Ltd. |
| 85,500 |
| 276 |
| NagaCorp Ltd. |
| 186,000 |
| 239 |
| Xinyi Solar Holdings Ltd. |
| 412,800 |
| 235 |
2 | BOC Aviation Ltd. |
| 24,200 |
| 208 |
| VTech Holdings Ltd. |
| 19,700 |
| 180 |
| Chow Tai Fook Jewellery Group Ltd. |
| 135,000 |
| 144 |
| First Pacific Co. Ltd. |
| 288,000 |
| 119 |
| Haitong International Securities Group Ltd. |
| 307,000 |
| 111 |
| Li & Fung Ltd. |
| 648,000 |
| 108 |
| Shougang Fushan Resources Group Ltd. |
| 434,000 |
| 105 |
| Shun Tak Holdings Ltd. |
| 236,000 |
| 105 |
| Dah Sing Financial Holdings Ltd. |
| 18,800 |
| 99 |
| Shui On Land Ltd. |
| 404,500 |
| 98 |
| Lifestyle International Holdings Ltd. |
| 55,000 |
| 96 |
| Cafe de Coral Holdings Ltd. |
| 38,000 |
| 94 |
| Guotai Junan International Holdings Ltd. |
| 439,000 |
| 89 |
| Television Broadcasts Ltd. |
| 38,200 |
| 75 |
| SA Sa International Holdings Ltd. |
| 132,000 |
| 45 |
|
|
|
|
| 29,794 |
Hungary (0.1%) |
|
|
|
| |
| MOL Hungarian Oil & Gas plc |
| 55,155 |
| 635 |
| Magyar Telekom Telecommunications plc |
| 49,466 |
| 78 |
|
|
|
|
| 713 |
India (0.5%) |
|
|
|
| |
| Oil & Natural Gas Corp. Ltd. |
| 383,415 |
| 933 |
| Bharat Petroleum Corp. Ltd. |
| 125,875 |
| 689 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Coal India Ltd. |
| 185,935 |
| 674 |
| Indian Oil Corp. Ltd. |
| 276,309 |
| 629 |
| NTPC Ltd. |
| 304,012 |
| 585 |
| Vedanta Ltd. |
| 215,111 |
| 517 |
| Hero MotoCorp Ltd. |
| 12,433 |
| 449 |
| Indiabulls Housing Finance Ltd. |
| 42,251 |
| 423 |
| Bharti Infratel Ltd. |
| 111,729 |
| 422 |
| Hindustan Petroleum Corp. Ltd. |
| 74,291 |
| 312 |
| REC Ltd. |
| 86,499 |
| 183 |
| NMDC Ltd. |
| 90,891 |
| 131 |
| Oracle Financial Services Software Ltd. |
| 2,484 |
| 126 |
* | Power Finance Corp. Ltd. |
| 73,594 |
| 123 |
| Hindustan Zinc Ltd. |
| 28,973 |
| 115 |
| Oil India Ltd. |
| 32,802 |
| 85 |
| NHPC Ltd. |
| 252,332 |
| 85 |
| Castrol India Ltd. |
| 29,742 |
| 65 |
| Mangalore Refinery & Petrochemicals Ltd. |
| 34,738 |
| 36 |
| Reliance Infrastructure Ltd. |
| 18,338 |
| 29 |
|
|
|
|
| 6,611 |
Indonesia (0.2%) |
|
|
|
| |
| Telekomunikasi Indonesia Persero Tbk PT |
| 6,035,400 |
| 1,607 |
| United Tractors Tbk PT |
| 202,200 |
| 386 |
| Perusahaan Gas Negara Persero Tbk |
| 1,292,000 |
| 211 |
| Adaro Energy Tbk PT |
| 1,596,900 |
| 146 |
* | Bukit Asam Tbk PT |
| 518,200 |
| 144 |
| Surya Citra Media Tbk PT |
| 729,100 |
| 95 |
| Tower Bersama Infrastructure Tbk PT |
| 262,800 |
| 73 |
| Matahari Department Store Tbk PT |
| 236,900 |
| 68 |
| Media Nusantara Citra Tbk PT |
| 477,100 |
| 32 |
|
|
|
|
| 2,762 |
Ireland (0.1%) |
|
|
|
| |
* | Bank of Ireland Group plc |
| 118,586 |
| 758 |
| AIB Group plc |
| 101,195 |
| 470 |
|
|
|
|
| 1,228 |
Israel (0.2%) |
|
|
|
| |
| Bank Leumi Le-Israel BM |
| 192,466 |
| 1,318 |
| Bank Hapoalim BM |
| 141,293 |
| 1,040 |
| Mizrahi Tefahot Bank Ltd. |
| 16,568 |
| 359 |
| Bezeq The Israeli Telecommunication Corp. Ltd. |
| 254,357 |
| 174 |
| Delek Group Ltd. |
| 532 |
| 101 |
| Gazit-Globe Ltd. |
| 12,441 |
| 100 |
* | Shikun & Binui Ltd. |
| 556 |
| 2 |
|
|
|
|
| 3,094 |
Italy (2.5%) |
|
|
|
| |
| Enel SPA |
| 992,443 |
| 6,284 |
| Eni SPA |
| 318,021 |
| 5,419 |
| Intesa Sanpaolo SPA (Registered) |
| 1,922,583 |
| 5,037 |
| UniCredit SPA |
| 284,076 |
| 3,933 |
| Assicurazioni Generali SPA |
| 164,266 |
| 3,187 |
| Atlantia SPA |
| 68,373 |
| 1,867 |
| Snam SPA |
| 290,261 |
| 1,478 |
| Terna Rete Elettrica Nazionale SPA |
| 179,950 |
| 1,080 |
| Mediobanca Banca di Credito Finanziario SPA |
| 94,426 |
| 1,001 |
| FinecoBank Banca Fineco SPA |
| 50,723 |
| 668 |
2 | Poste Italiane SPA |
| 60,327 |
| 645 |
| Unione di Banche Italiane SPA |
| 136,846 |
| 427 |
| Telecom Italia SPA (Bearer) |
| 783,528 |
| 409 |
| ltalgas SPA |
| 63,284 |
| 395 |
| A2A SPA |
| 208,841 |
| 349 |
^ | Banca Mediolanum SPA |
| 35,349 |
| 260 |
| UnipolSai Assicurazioni SPA |
| 74,318 |
| 204 |
|
|
|
|
| 32,643 |
Japan (9.8%) |
|
|
|
| |
| Toyota Motor Corp. |
| 318,164 |
| 19,698 |
| Mitsubishi UFJ Financial Group Inc. |
| 1,589,400 |
| 7,886 |
| Takeda Pharmaceutical Co. Ltd. |
| 193,700 |
| 7,148 |
| Honda Motor Co. Ltd. |
| 222,000 |
| 6,194 |
| Sumitomo Mitsui Financial Group Inc. |
| 168,200 |
| 6,113 |
| KDDI Corp. |
| 222,500 |
| 5,128 |
| Mizuho Financial Group Inc. |
| 3,234,400 |
| 5,051 |
| Mitsubishi Corp. |
| 163,600 |
| 4,507 |
| Tokio Marine Holdings Inc. |
| 85,182 |
| 4,316 |
| Canon Inc. |
| 132,100 |
| 3,666 |
| Japan Tobacco Inc. |
| 152,900 |
| 3,533 |
| Mitsui & Co. Ltd. |
| 216,812 |
| 3,507 |
| ITOCHU Corp. |
| 181,100 |
| 3,268 |
| NTT DOCOMO Inc. |
| 148,500 |
| 3,225 |
| Komatsu Ltd. |
| 115,900 |
| 2,994 |
| Nippon Telegraph & Telephone Corp. |
| 65,500 |
| 2,725 |
| ORIX Corp. |
| 161,500 |
| 2,288 |
| Sumitomo Corp. |
| 143,838 |
| 2,062 |
| JXTG Holdings Inc. |
| 409,305 |
| 1,991 |
| Nissan Motor Co. Ltd. |
| 247,200 |
| 1,985 |
| MS&AD Insurance Group Holdings Inc. |
| 62,800 |
| 1,952 |
| Subaru Corp. |
| 77,800 |
| 1,906 |
| Japan Post Holdings Co. Ltd. |
| 167,946 |
| 1,881 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Nippon Steel Corp. |
| 104,900 |
| 1,876 |
| Sumitomo Mitsui Trust Holdings Inc. |
| 46,600 |
| 1,626 |
| Marubeni Corp. |
| 200,200 |
| 1,435 |
| Resona Holdings Inc. |
| 281,000 |
| 1,193 |
| Sekisui House Ltd. |
| 73,159 |
| 1,180 |
| Mitsubishi Chemical Holdings Corp. |
| 164,700 |
| 1,174 |
| Daito Trust Construction Co. Ltd. |
| 8,600 |
| 1,152 |
| JFE Holdings Inc. |
| 66,700 |
| 1,148 |
| Sumitomo Chemical Co. Ltd. |
| 196,600 |
| 981 |
| Daiwa Securities Group Inc. |
| 202,800 |
| 944 |
| Idemitsu Kosan Co. Ltd. |
| 27,553 |
| 895 |
| Yamaha Motor Co. Ltd. |
| 36,000 |
| 742 |
| SBI Holdings Inc. |
| 29,000 |
| 622 |
| NSK Ltd. |
| 58,600 |
| 609 |
| Seiko Epson Corp. |
| 36,100 |
| 579 |
| Sojitz Corp. |
| 165,100 |
| 568 |
| Mitsui Chemicals Inc. |
| 23,100 |
| 568 |
| Japan Post Bank Co. Ltd. |
| 50,436 |
| 555 |
| Amada Holdings Co. Ltd. |
| 42,300 |
| 474 |
^ | Chugoku Electric Power Co. Inc. |
| 37,951 |
| 453 |
| LIXIL Group Corp. |
| 34,000 |
| 444 |
| Haseko Corp. |
| 35,900 |
| 434 |
| SUMCO Corp. |
| 28,500 |
| 376 |
| Aozora Bank Ltd. |
| 14,600 |
| 357 |
| Mitsubishi Gas Chemical Co. Inc. |
| 22,800 |
| 342 |
| Denka Co. Ltd. |
| 10,800 |
| 326 |
| DIC Corp. |
| 10,600 |
| 311 |
| Sumitomo Rubber Industries Ltd. |
| 22,200 |
| 273 |
| Lawson Inc. |
| 5,700 |
| 266 |
| Sankyo Co. Ltd. |
| 6,600 |
| 261 |
| Seven Bank Ltd. |
| 81,200 |
| 221 |
| NTN Corp. |
| 52,900 |
| 175 |
| Miraca Holdings Inc. |
| 6,600 |
| 169 |
| Hitachi Capital Corp. |
| 5,900 |
| 137 |
| Heiwa Corp. |
| 5,700 |
| 114 |
| Aoyama Trading Co. Ltd. |
| 5,000 |
| 110 |
| Matsui Securities Co. Ltd. |
| 12,000 |
| 107 |
| Tokai Tokyo Financial Holdings Inc. |
| 30,700 |
| 102 |
| Exedy Corp. |
| 3,600 |
| 82 |
| SKY Perfect JSAT Holdings Inc. |
| 15,500 |
| 62 |
|
|
|
|
| 126,467 |
Kuwait (0.3%) |
|
|
|
| |
| National Bank of Kuwait SAKP |
| 776,959 |
| 2,373 |
| Ahli United Bank BSC |
| 589,774 |
| 490 |
| Mobile Telecommunications Co. KSC |
| 268,232 |
| 407 |
| Gulf Bank KSCP |
| 217,073 |
| 217 |
| Boubyan Petrochemicals Co. KSCP |
| 46,019 |
| 139 |
| Humansoft Holding Co. KSC |
| 11,958 |
| 131 |
|
|
|
|
| 3,757 |
Malaysia (0.6%) |
|
|
|
| |
| Malayan Banking Bhd. |
| 741,397 |
| 1,659 |
| Tenaga Nasional Bhd. |
| 500,133 |
| 1,488 |
| CIMB Group Holdings Bhd. |
| 858,800 |
| 1,095 |
| DiGi.Com Bhd. |
| 456,800 |
| 508 |
| Maxis Bhd. |
| 362,100 |
| 470 |
| Petronas Gas Bhd. |
| 96,400 |
| 413 |
| MISC Bhd. |
| 182,500 |
| 305 |
| AMMB Holdings Bhd. |
| 240,200 |
| 260 |
| Gamuda Bhd. |
| 273,900 |
| 232 |
| Sime Darby Bhd. |
| 404,400 |
| 227 |
| YTL Corp. Bhd. |
| 509,068 |
| 139 |
| British American Tobacco Malaysia Bhd. |
| 16,300 |
| 138 |
| Alliance Bank Malaysia Bhd. |
| 134,800 |
| 132 |
| Westports Holdings Bhd. |
| 134,900 |
| 124 |
| YTL Power International Bhd. |
| 317,848 |
| 68 |
2 | Astro Malaysia Holdings Bhd. |
| 162,500 |
| 57 |
| Telekom Malaysia Bhd. |
| 5,800 |
| 4 |
|
|
|
|
| 7,319 |
Mexico (0.6%) |
|
|
|
| |
| Grupo Financiero Banorte SAB de CV |
| 361,876 |
| 2,287 |
| Wal-Mart de Mexico SAB de CV |
| 657,200 |
| 1,931 |
| Grupo Mexico SAB de CV Class B |
| 459,100 |
| 1,346 |
| Grupo Aeroportuario del Pacifico SAB de CV Class B |
| 46,794 |
| 476 |
| Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand |
| 201,100 |
| 338 |
| Promotora y Operadora de Infraestructura SAB de CV |
| 26,790 |
| 272 |
| Grupo Aeroportuario del Centro Norte SAB de CV Class B |
| 37,600 |
| 232 |
| Kimberly-Clark de Mexico SAB de CV Class A |
| 112,100 |
| 194 |
| Industrias Penoles SAB de CV |
| 14,370 |
| 165 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Alpek SAB de CV |
| 51,000 |
| 63 |
2 | Nemak SAB de CV |
| 68,200 |
| 37 |
|
|
|
|
| 7,341 |
Netherlands (2.2%) |
|
|
|
| |
| Unilever NV |
| 192,896 |
| 11,671 |
^ | ING Groep NV |
| 495,898 |
| 6,328 |
^ | Koninklijke Ahold Delhaize NV |
| 139,093 |
| 3,352 |
| NN Group NV |
| 43,791 |
| 1,911 |
| Koninklijke KPN NV |
| 424,639 |
| 1,305 |
2 | ABN AMRO Group NV |
| 52,696 |
| 1,241 |
| Aegon NV |
| 223,067 |
| 1,164 |
| Randstad NV |
| 13,704 |
| 784 |
| ASR Nederland NV |
| 16,756 |
| 746 |
2 | Signify NV |
| 12,802 |
| 384 |
|
|
|
|
| 28,886 |
New Zealand (0.2%) |
|
|
|
| |
| Spark New Zealand Ltd. |
| 235,537 |
| 578 |
| Meridian Energy Ltd. |
| 160,075 |
| 435 |
| Contact Energy Ltd. |
| 92,546 |
| 415 |
| Fletcher Building Ltd. |
| 106,683 |
| 368 |
| SKYCITY Entertainment Group Ltd. |
| 80,932 |
| 221 |
| Mercury NZ Ltd. |
| 82,195 |
| 203 |
| Air New Zealand Ltd. |
| 59,919 |
| 107 |
| Auckland International Airport Ltd. |
| 1,301 |
| 7 |
|
|
|
|
| 2,334 |
Norway (0.9%) |
|
|
|
| |
| Equinor ASA |
| 125,685 |
| 2,802 |
^,* | DNB ASA |
| 134,210 |
| 2,581 |
^ | Telenor ASA |
| 85,446 |
| 1,717 |
| Mowi ASA |
| 54,804 |
| 1,189 |
^ | Orkla ASA |
| 98,832 |
| 776 |
| Norsk Hydro ASA |
| 170,912 |
| 736 |
| Aker BP ASA |
| 14,503 |
| 479 |
| Gjensidige Forsikring ASA |
| 22,224 |
| 432 |
| Salmar ASA |
| 6,342 |
| 288 |
| Leroy Seafood Group ASA |
| 31,233 |
| 226 |
|
|
|
|
| 11,226 |
Other (0.0%)3 |
|
|
|
| |
*,§ | China International Marine Containers Group Co.Ltd. Rights |
| 517 |
| 1 |
|
|
|
|
|
|
Pakistan (0.0%) |
|
|
|
| |
| Pakistan Petroleum Ltd. |
| 85,300 |
| 102 |
| Fauji Fertilizer Co. Ltd. |
| 102,000 |
| 75 |
| Oil & Gas Development Co. Ltd. |
| 74,800 |
| 74 |
| Habib Bank Ltd. |
| 77,175 |
| 70 |
* | National Bank of Pakistan |
| 108,000 |
| 30 |
|
|
|
|
| 351 |
Philippines (0.1%) |
|
|
|
| |
| PLDT Inc. |
| 15,520 |
| 366 |
| Manila Electric Co. |
| 32,110 |
| 238 |
| Aboitiz Power Corp. |
| 208,800 |
| 151 |
| Globe Telecom Inc. |
| 3,740 |
| 128 |
| DMCI Holdings Inc. |
| 494,100 |
| 106 |
| Semirara Mining & Power Corp. Class A |
| 156,320 |
| 71 |
|
|
|
|
| 1,060 |
Poland (0.2%) |
|
|
|
| |
| Powszechna Kasa Oszczednosci Bank Polski SA |
| 108,601 |
| 1,118 |
| Powszechny Zaklad Ubezpieczen SA |
| 73,314 |
| 807 |
| Bank Polska Kasa Opieki SA |
| 20,222 |
| 604 |
| Polskie Gornictwo Naftowe i Gazownictwo SA |
| 227,748 |
| 346 |
|
|
|
|
| 2,875 |
Portugal (0.2%) |
|
|
|
| |
* | EDP - Energias de Portugal SA |
| 294,381 |
| 1,117 |
| Galp Energia SGPS SA |
| 64,158 |
| 1,076 |
|
|
|
|
| 2,193 |
Qatar (0.5%) |
|
|
|
| |
| Qatar National Bank QPSC |
| 55,594 |
| 2,990 |
| Industries Qatar QSC |
| 25,944 |
| 862 |
| Qatar Islamic Bank SAQ |
| 15,167 |
| 695 |
| Masraf Al Rayan QSC |
| 45,786 |
| 457 |
| Qatar Insurance Co. SAQ |
| 39,529 |
| 416 |
| Commercial Bank PQSC |
| 25,849 |
| 361 |
| Qatar Electricity & Water Co. QSC |
| 6,298 |
| 289 |
| Barwa Real Estate Co. |
| 24,142 |
| 230 |
| Qatar Gas Transport Co. Ltd. |
| 36,009 |
| 212 |
| Ooredoo QPSC |
| 10,865 |
| 194 |
| Qatar Navigation QSC |
| 7,695 |
| 143 |
| Doha Bank QPSC |
| 16,287 |
| 97 |
| Qatar International Islamic Bank QSC |
| 4,798 |
| 91 |
* | Gulf International Services QSC |
| 9,310 |
| 41 |
| Al Meera Consumer Goods Co. QSC |
| 514 |
| 20 |
|
|
|
|
| 7,098 |
Russia (1.8%) |
|
|
|
| |
| Lukoil PJSC ADR |
| 53,947 |
| 4,581 |
| Sberbank of Russia PJSC |
| 1,241,980 |
| 4,351 |
| Gazprom PJSC ADR |
| 574,836 |
| 2,874 |
| Tatneft PJSC ADR |
| 31,407 |
| 2,212 |
| Rosneft Oil Co. PJSC GDR |
| 149,275 |
| 995 |
| LUKOIL PJSC |
| 9,815 |
| 838 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| MMC Norilsk Nickel PJSC ADR |
| 35,146 |
| 781 |
| AK Transneft OAO Preference Shares |
| 222 |
| 578 |
| Surgutneftegas OAO Preference Shares |
| 949,193 |
| 575 |
| Gazprom PJSC |
| 220,795 |
| 561 |
| Mobile TeleSystems PJSC ADR |
| 60,918 |
| 480 |
| Alrosa PJSC |
| 321,400 |
| 469 |
| MMC Norilsk Nickel PJSC |
| 2,033 |
| 452 |
| Magnit PJSC GDR |
| 24,003 |
| 343 |
| Severstal PJSC GDR |
| 20,190 |
| 327 |
| Inter RAO UES PJSC |
| 4,435,000 |
| 269 |
| Novolipetsk Steel PJSC |
| 100,180 |
| 266 |
| Moscow Exchange MICEX-RTS PJSC |
| 174,046 |
| 245 |
| Sberbank of Russia PJSC ADR |
| 14,446 |
| 207 |
| Magnit PJSC |
| 3,235 |
| 186 |
| Polyus PJSC GDR |
| 4,208 |
| 166 |
| Magnitogorsk Iron & Steel Works PJSC |
| 206,300 |
| 141 |
| Tatneft PJSC |
| 11,470 |
| 134 |
| PhosAgro PJSC GDR |
| 10,445 |
| 132 |
| Rostelecom PJSC |
| 114,820 |
| 131 |
| Tatneft PAO Preference Shares |
| 10,870 |
| 107 |
| RusHydro PJSC |
| 12,696,000 |
| 106 |
| Polyus PJSC |
| 1,298 |
| 101 |
| Aeroflot PJSC |
| 65,759 |
| 98 |
| Federal Grid Co. Unified Energy System PJSC |
| 33,850,000 |
| 87 |
| Unipro PJSC |
| 1,488,000 |
| 60 |
| Rosneft Oil Co. PJSC |
| 5,910 |
| 39 |
| Sistema PJSFC |
| 270,400 |
| 37 |
| Mobile TeleSystems PJSC |
| 9,210 |
| 36 |
| PhosAgro PJSC |
| 944 |
| 35 |
| Severstal PJSC |
| 680 |
| 11 |
|
|
|
|
| 23,011 |
Saudi Arabia (0.4%) |
|
|
|
| |
| Al Rajhi Bank |
| 78,295 |
| 1,566 |
| Saudi Basic Industries Corp. |
| 22,503 |
| 746 |
| National Commercial Bank |
| 31,713 |
| 521 |
| Samba Financial Group |
| 45,395 |
| 460 |
| Riyad Bank |
| 41,796 |
| 332 |
| Alinma Bank |
| 38,894 |
| 281 |
| Saudi Telecom Co. |
| 8,577 |
| 262 |
| Saudi Electricity Co. |
| 36,692 |
| 166 |
| Jarir Marketing Co. |
| 2,569 |
| 121 |
| Yanbu National Petrochemical Co. |
| 4,701 |
| 91 |
| Saudi Arabian Fertilizer Co. |
| 4,084 |
| 89 |
| Saudi Industrial Investment Group |
| 8,606 |
| 62 |
| Saudi Cement Co. |
| 3,245 |
| 57 |
| Advanced Petrochemical Co. |
| 3,248 |
| 53 |
| Bank Al-Jazira |
| 12,394 |
| 53 |
| Dar Al Arkan Real Estate Development Co. |
| 15,885 |
| 47 |
| Saudi International Petrochemical Co. |
| 6,607 |
| 38 |
| Sahara Petrochemical Co. |
| 8,247 |
| 38 |
| Riyad REIT Fund |
| 16,934 |
| 35 |
| National Gas & Industrialization Co. |
| 2,931 |
| 25 |
| Saudi Airlines Catering Co. |
| 928 |
| 21 |
* | Al Hammadi Co. for Development and Investment |
| 3,128 |
| 21 |
| Musharaka Real Estate Income Fund |
| 7,935 |
| 17 |
| Saudi Ground Services Co. |
| 1,414 |
| 11 |
| Mouwasat Medical Services Co. |
| 397 |
| 9 |
| Al Rajhi REIT |
| 2,758 |
| 6 |
| Yanbu Cement Co. |
| 20 |
| — |
|
|
|
|
| 5,128 |
Singapore (1.5%) |
|
|
|
| |
| DBS Group Holdings Ltd. |
| 229,278 |
| 4,768 |
| Oversea-Chinese Banking Corp. Ltd. |
| 420,600 |
| 3,747 |
| United Overseas Bank Ltd. |
| 161,380 |
| 3,305 |
| Singapore Telecommunications Ltd. |
| 956,988 |
| 2,232 |
| Keppel Corp. Ltd. |
| 183,000 |
| 912 |
| CapitaLand Ltd. |
| 323,900 |
| 842 |
| Singapore Exchange Ltd. |
| 106,351 |
| 577 |
| Singapore Technologies Engineering Ltd. |
| 196,400 |
| 572 |
| ComfortDelGro Corp. Ltd. |
| 267,100 |
| 529 |
| Singapore Airlines Ltd. |
| 68,600 |
| 489 |
| Venture Corp. Ltd. |
| 33,600 |
| 421 |
| Singapore Press Holdings Ltd. |
| 214,400 |
| 396 |
| SATS Ltd. |
| 80,800 |
| 311 |
| Golden Agri-Resources Ltd. |
| 800,100 |
| 170 |
| Singapore Post Ltd. |
| 191,000 |
| 146 |
| Hutchison Port Holdings Trust |
| 620,700 |
| 146 |
| StarHub Ltd. |
| 76,200 |
| 87 |
| SIA Engineering Co. Ltd. |
| 26,400 |
| 49 |
| Frasers Property Ltd. |
| 31,200 |
| 43 |
|
|
|
|
| 19,742 |
South Africa (1.6%) |
|
|
|
| |
| Sasol Ltd. |
| 70,211 |
| 2,329 |
| Standard Bank Group Ltd. |
| 164,654 |
| 2,300 |
| FirstRand Ltd. |
| 414,579 |
| 1,973 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| MTN Group Ltd. |
| 229,510 |
| 1,663 |
| Sanlam Ltd. |
| 224,957 |
| 1,205 |
| Absa Group Ltd. |
| 90,607 |
| 1,044 |
| Old Mutual Ltd. |
| 624,643 |
| 1,005 |
| Nedbank Group Ltd. |
| 51,192 |
| 955 |
| Vodacom Group Ltd. |
| 81,395 |
| 657 |
| RMB Holdings Ltd. |
| 101,460 |
| 593 |
| Mr Price Group Ltd. |
| 33,104 |
| 502 |
| Woolworths Holdings Ltd. |
| 133,079 |
| 444 |
| NEPI Rockcastle plc |
| 45,328 |
| 378 |
| Tiger Brands Ltd. |
| 21,619 |
| 376 |
| Exxaro Resources Ltd. |
| 31,973 |
| 366 |
| Foschini Group Ltd. |
| 27,481 |
| 356 |
| Sappi Ltd. |
| 68,135 |
| 325 |
| Netcare Ltd. |
| 188,796 |
| 318 |
| SPAR Group Ltd. |
| 22,959 |
| 312 |
| Life Healthcare Group Holdings Ltd. |
| 164,503 |
| 300 |
| Truworths International Ltd. |
| 54,958 |
| 291 |
| Investec Ltd. |
| 39,822 |
| 255 |
| AVI Ltd. |
| 38,961 |
| 250 |
| Rand Merchant Investment Holdings Ltd. |
| 97,247 |
| 236 |
| Barloworld Ltd. |
| 26,182 |
| 234 |
| Telkom SA SOC Ltd. |
| 36,181 |
| 215 |
| Kumba Iron Ore Ltd. |
| 6,718 |
| 202 |
| African Rainbow Minerals Ltd. |
| 14,274 |
| 170 |
| MMI Holdings Ltd. |
| 126,499 |
| 158 |
| Santam Ltd. |
| 5,630 |
| 132 |
| Coronation Fund Managers Ltd. |
| 31,840 |
| 114 |
| Liberty Holdings Ltd. |
| 15,038 |
| 109 |
| Pioneer Foods Group Ltd. |
| 17,692 |
| 107 |
| Tsogo Sun Holdings Ltd. |
| 69,630 |
| 105 |
| Reunert Ltd. |
| 18,744 |
| 102 |
| Assore Ltd. |
| 3,910 |
| 101 |
| JSE Ltd. |
| 10,438 |
| 101 |
| Distell Group Holdings Ltd. |
| 9,694 |
| 93 |
| Imperial Logistics Ltd. |
| 20,428 |
| 89 |
| MAS Real Estate Inc. |
| 48,064 |
| 74 |
* | Sibanye Gold Ltd. |
| 20 |
| — |
|
|
|
|
| 20,539 |
South Korea (1.2%) |
|
|
|
| |
| Samsung Electronics Co. Ltd. Preference Shares |
| 92,902 |
| 2,964 |
| Shinhan Financial Group Co. Ltd. |
| 57,022 |
| 2,155 |
| KB Financial Group Inc. |
| 50,215 |
| 1,983 |
| KT&G Corp. |
| 14,051 |
| 1,229 |
| Hana Financial Group Inc. |
| 37,245 |
| 1,175 |
| SK Innovation Co. Ltd. |
| 7,327 |
| 1,146 |
| Woori Financial Group Inc. |
| 70,487 |
| 836 |
| SK Telecom Co. Ltd. ADR |
| 26,678 |
| 630 |
| Woongjin Coway Co. Ltd. |
| 7,136 |
| 536 |
| S-Oil Corp. |
| 5,133 |
| 405 |
| Industrial Bank of Korea |
| 32,118 |
| 389 |
| DB Insurance Co. Ltd. |
| 6,041 |
| 354 |
| Hyundai Marine & Fire Insurance Co. Ltd. |
| 7,339 |
| 240 |
| BNK Financial Group Inc. |
| 36,741 |
| 220 |
| NH Investment & Securities Co. Ltd. |
| 16,894 |
| 199 |
| Cheil Worldwide Inc. |
| 8,268 |
| 180 |
| DGB Financial Group Inc. |
| 18,602 |
| 134 |
| Samsung Card Co. Ltd. |
| 3,790 |
| 120 |
| KEPCO Plant Service & Engineering Co. Ltd. |
| 2,638 |
| 83 |
| HDC Holdings Co. Ltd. |
| 4,676 |
| 69 |
| Doosan Corp. |
| 738 |
| 65 |
| Ssangyong Cement Industrial Co. Ltd. |
| 12,482 |
| 62 |
| Hite Jinro Co. Ltd. |
| 3,169 |
| 55 |
| Hyosung TNC Co. Ltd. |
| 12 |
| 2 |
|
|
|
|
| 15,231 |
Spain (3.4%) |
|
|
|
| |
| Banco Santander SA |
| 2,046,998 |
| 10,377 |
| Iberdrola SA |
| 781,092 |
| 7,098 |
| Banco Bilbao Vizcaya Argentaria SA |
| 847,435 |
| 5,153 |
| Telefonica SA |
| 575,272 |
| 4,796 |
| Repsol SA |
| 173,748 |
| 2,948 |
2 | Aena SME SA |
| 8,271 |
| 1,536 |
| Ferrovial SA |
| 60,406 |
| 1,490 |
| CaixaBank SA |
| 454,946 |
| 1,450 |
| ACS Actividades de Construccion y Servicios SA |
| 31,455 |
| 1,446 |
| Red Electrica Corp. SA |
| 55,275 |
| 1,147 |
| Naturgy Energy Group SA |
| 39,280 |
| 1,118 |
| Endesa SA |
| 41,002 |
| 1,023 |
| Banco de Sabadell SA |
| 734,119 |
| 855 |
| Enagas SA |
| 28,788 |
| 821 |
| Bankinter SA |
| 89,443 |
| 715 |
| Bankia SA |
| 158,686 |
| 440 |
| Mapfre SA |
| 131,785 |
| 396 |
| Acciona SA |
| 2,719 |
| 315 |
| Acerinox SA |
| 20,798 |
| 217 |
| Zardoya Otis SA |
| 22,574 |
| 182 |
| Mediaset Espana Comunicacion SA |
| 462 |
| 4 |
|
|
|
|
| 43,527 |
Sweden (1.6%) |
|
|
|
| |
| Volvo AB Class B |
| 189,861 |
| 3,043 |
| Investor AB Class B |
| 57,542 |
| 2,744 |
| Swedbank AB Class A |
| 127,055 |
| 2,076 |
^ | Hennes & Mauritz AB Class B |
| 112,878 |
| 1,970 |
| Svenska Handelsbanken AB Class A |
| 179,795 |
| 1,964 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Skandinaviska Enskilda Banken AB Class A |
| 181,749 |
| 1,735 |
| Telia Co. AB |
| 342,407 |
| 1,459 |
^ | Boliden AB |
| 35,540 |
| 1,058 |
| SKF AB |
| 49,428 |
| 917 |
| Kinnevik AB |
| 31,213 |
| 910 |
| Tele2 AB |
| 67,896 |
| 907 |
| Skanska AB Class B |
| 45,545 |
| 793 |
| Castellum AB |
| 34,580 |
| 622 |
| Svenska Handelsbanken AB Class B |
| 9,217 |
| 100 |
| ICA Gruppen AB |
| 32 |
| 1 |
|
|
|
|
| 20,299 |
Switzerland (2.9%) |
|
|
|
| |
| Zurich Insurance Group AG |
| 19,099 |
| 6,088 |
| UBS Group AG |
| 437,261 |
| 5,863 |
* | ABB Ltd. |
| 225,002 |
| 4,628 |
| Swiss Re AG |
| 38,387 |
| 3,696 |
| LafargeHolcim Ltd. |
| 59,851 |
| 3,073 |
* | Swiss Life Holding AG |
| 4,382 |
| 2,060 |
| SGS SA |
| 657 |
| 1,734 |
| Swisscom AG |
| 3,258 |
| 1,518 |
| Julius Baer Group Ltd. |
| 27,838 |
| 1,345 |
| Adecco Group AG |
| 19,581 |
| 1,125 |
| Baloise Holding AG |
| 5,965 |
| 1,023 |
| Kuehne & Nagel International AG |
| 6,447 |
| 937 |
| Roche Holding AG (Bearer) |
| 3,393 |
| 888 |
| Swiss Prime Site AG |
| 9,807 |
| 788 |
* | Helvetia Holding AG |
| 847 |
| 538 |
| PSP Swiss Property AG |
| 5,189 |
| 529 |
| Flughafen Zurich AG |
| 2,463 |
| 406 |
| Pargesa Holding SA |
| 5,083 |
| 399 |
| Dufry AG |
| 3,983 |
| 390 |
| Banque Cantonale Vaudoise |
| 358 |
| 283 |
| Sulzer AG |
| 2,184 |
| 230 |
|
|
|
|
| 37,541 |
Taiwan (5.2%) |
|
|
|
| |
| Taiwan Semiconductor Manufacturing Co. Ltd. |
| 3,030,000 |
| 25,440 |
| Hon Hai Precision Industry Co. Ltd. |
| 1,500,000 |
| 4,223 |
| Formosa Plastics Corp. |
| 609,879 |
| 2,213 |
| MediaTek Inc. |
| 188,000 |
| 1,802 |
| Nan Ya Plastics Corp. |
| 707,000 |
| 1,789 |
| CTBC Financial Holding Co. Ltd. |
| 2,284,120 |
| 1,565 |
| Formosa Chemicals & Fibre Corp. |
| 432,000 |
| 1,554 |
| Delta Electronics Inc. |
| 271,400 |
| 1,432 |
| Cathay Financial Holding Co. Ltd. |
| 988,908 |
| 1,432 |
| Uni-President Enterprises Corp. |
| 599,000 |
| 1,424 |
| Fubon Financial Holding Co. Ltd. |
| 936,000 |
| 1,383 |
| Mega Financial Holding Co. Ltd. |
| 1,383,000 |
| 1,328 |
| Chunghwa Telecom Co. Ltd. ADR |
| 35,295 |
| 1,272 |
| China Steel Corp. |
| 1,551,000 |
| 1,253 |
| First Financial Holding Co. Ltd. |
| 1,211,427 |
| 865 |
| Yuanta Financial Holding Co. Ltd. |
| 1,408,000 |
| 817 |
| Taiwan Cement Corp. |
| 566,600 |
| 771 |
| Catcher Technology Co. Ltd. |
| 96,000 |
| 761 |
| Taiwan Mobile Co. Ltd. |
| 202,000 |
| 739 |
| Hua Nan Financial Holdings Co. Ltd. |
| 1,101,101 |
| 720 |
| Asustek Computer Inc. |
| 91,996 |
| 703 |
| Quanta Computer Inc. |
| 343,000 |
| 658 |
| Chailease Holding Co. Ltd. |
| 148,000 |
| 631 |
| Formosa Petrochemical Corp. |
| 170,000 |
| 631 |
| Taishin Financial Holding Co. Ltd. |
| 1,250,272 |
| 567 |
| Far Eastern New Century Corp. |
| 509,000 |
| 556 |
| United Microelectronics Corp. ADR |
| 252,787 |
| 549 |
| SinoPac Financial Holdings Co. Ltd. |
| 1,335,641 |
| 515 |
| Novatek Microelectronics Corp. |
| 76,000 |
| 497 |
| Chunghwa Telecom Co. Ltd. |
| 136,000 |
| 490 |
| Pegatron Corp. |
| 258,000 |
| 488 |
| Yageo Corp. |
| 49,000 |
| 486 |
| Far EasTone Telecommunications Co. Ltd. |
| 195,000 |
| 478 |
| Pou Chen Corp. |
| 344,000 |
| 418 |
| Asia Cement Corp. |
| 300,000 |
| 406 |
| Realtek Semiconductor Corp. |
| 58,000 |
| 393 |
| Lite-On Technology Corp. |
| 276,194 |
| 390 |
| Eclat Textile Co. Ltd. |
| 25,200 |
| 360 |
| Compal Electronics Inc. |
| 513,000 |
| 332 |
| ASE Technology Holding Co. Ltd. |
| 141,171 |
| 328 |
| Feng TAY Enterprise Co. Ltd. |
| 40,000 |
| 324 |
| Foxconn Technology Co. Ltd. |
| 140,190 |
| 314 |
| Cheng Shin Rubber Industry Co. Ltd. |
| 234,994 |
| 314 |
| Inventec Corp. |
| 385,994 |
| 310 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
| Globalwafers Co. Ltd. |
| 28,000 |
| 307 |
| Wistron Corp. |
| 364,656 |
| 303 |
| Vanguard International Semiconductor Corp. |
| 117,000 |
| 260 |
| Synnex Technology International Corp. |
| 170,000 |
| 212 |
| Nanya Technology Corp. |
| 93,000 |
| 197 |
| Chicony Electronics Co. Ltd. |
| 68,370 |
| 169 |
| Teco Electric and Machinery Co. Ltd. |
| 211,000 |
| 158 |
| Formosa Taffeta Co. Ltd. |
| 130,000 |
| 157 |
| Taiwan Fertilizer Co. Ltd. |
| 86,000 |
| 125 |
| Feng Hsin Steel Co. Ltd. |
| 57,000 |
| 112 |
| United Microelectronics Corp. |
| 252,000 |
| 110 |
| Taiwan Secom Co. Ltd. |
| 36,000 |
| 101 |
| Transcend Information Inc. |
| 34,000 |
| 77 |
| Oriental Union Chemical Corp. |
| 85,000 |
| 72 |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR |
| 232 |
| 10 |
|
|
|
|
| 66,291 |
Thailand (0.9%) |
|
|
|
| |
| PTT PCL (Foreign) |
| 1,808,700 |
| 2,761 |
| Siam Cement PCL NVDR |
| 79,400 |
| 1,149 |
| Siam Commercial Bank PCL (Foreign) |
| 279,500 |
| 1,148 |
| Advanced Info Service PCL (Foreign) |
| 143,072 |
| 852 |
| PTT Exploration & Production PCL (Foreign) |
| 179,608 |
| 750 |
| PTT Global Chemical PCL |
| 272,099 |
| 587 |
| Krung Thai Bank PCL (Foreign) |
| 836,400 |
| 495 |
| Intouch Holdings (Foreign) |
| 221,600 |
| 413 |
| Bangkok Bank PCL (Foreign) |
| 63,400 |
| 415 |
| Digital Telecommunications Infrastructure Fund |
| 806,800 |
| 402 |
| Siam Cement PCL (Foreign) |
| 25,550 |
| 370 |
| Thai Oil PCL (Foreign) |
| 133,200 |
| 289 |
| Banpu PCL |
| 510,100 |
| 262 |
| IRPC PCL (Foreign) |
| 1,204,500 |
| 213 |
| Thai Union Group PCL |
| 342,300 |
| 203 |
| Land & Houses PCL (Foreign) |
| 554,800 |
| 195 |
| Ratchaburi Electricity Generating Holding PCL (Local) |
| 86,400 |
| 169 |
| Glow Energy PCL (Foreign) |
| 52,900 |
| 152 |
| Siam Commercial Bank PCL |
| 30,700 |
| 126 |
| Land & Houses PCL NVDR |
| 265,200 |
| 93 |
| Siam City Cement PCL (Foreign) |
| 10,132 |
| 69 |
| Intouch Holdings-NVDR |
| 18,400 |
| 34 |
| Intouch Holdings |
| 12,800 |
| 24 |
| Electricity Generating PCL (Foreign) |
| 697 |
| 7 |
| Charoen Pokphand Foods PCL (Foreign) |
| 4,200 |
| 4 |
|
|
|
|
| 11,182 |
Turkey (0.2%) |
|
|
|
| |
* | Turkiye Garanti Bankasi AS |
| 265,331 |
| 364 |
| Akbank T.A.S. |
| 344,600 |
| 354 |
| Tupras Turkiye Petrol Rafinerileri AS |
| 15,949 |
| 330 |
| Turkcell Iletisim Hizmetleri AS |
| 137,093 |
| 288 |
| Eregli Demir ve Celik Fabrikalari TAS |
| 174,106 |
| 268 |
* | Turkiye Is Bankasi AS |
| 167,372 |
| 151 |
| Tekfen Holding AS |
| 22,057 |
| 98 |
| TAV Havalimanlari Holding AS |
| 23,027 |
| 98 |
| Petkim Petrokimya Holding AS |
| 119,410 |
| 90 |
| Ford Otomotiv Sanayi AS |
| 9,481 |
| 84 |
| Enka Insaat ve Sanayi AS |
| 78,543 |
| 71 |
| Turkiye Sise ve Cam Fabrikalari AS |
| 65,366 |
| 67 |
| Soda Sanayii AS |
| 45,670 |
| 59 |
* | Turk Telekomunikasyon AS |
| 64,492 |
| 46 |
| Tofas Turk Otomobil Fabrikasi AS |
| 14,416 |
| 43 |
| Iskenderun Demir ve Celik AS |
| 27,461 |
| 32 |
2 | Enerjisa Enerji AS |
| 33,617 |
| 30 |
| Turkiye Halk Bankasi AS |
| 1,321 |
| 1 |
|
|
|
|
| 2,474 |
United Arab Emirates (0.7%) |
|
|
|
| |
| First Abu Dhabi Bank PJSC |
| 1,376,290 |
| 5,994 |
| Emirates Telecommunications Group Co. PJSC |
| 224,048 |
| 1,019 |
| Abu Dhabi Commercial Bank PJSC |
| 332,282 |
| 894 |
| Dubai Islamic Bank PJSC |
| 193,460 |
| 272 |
| Abu Dhabi Islamic Bank PJSC |
| 185,856 |
| 242 |
| Aldar Properties PJSC |
| 464,841 |
| 226 |
| Dana Gas PJSC |
| 656,997 |
| 171 |
| Emaar Malls PJSC |
| 276,536 |
| 131 |
| Abu Dhabi National Oil Co. for Distribution PJSC |
| 163,904 |
| 116 |
| Dubai Investments PJSC |
| 246,435 |
| 91 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
* | Air Arabia PJSC |
| 215,052 |
| 60 |
| DAMAC Properties Dubai Co. PJSC |
| 166,712 |
| 56 |
| Emaar Properties PJSC |
| 5,226 |
| 7 |
* | Dubai Financial Market PJSC |
| 27,306 |
| 6 |
| Al Waha Capital PJSC |
| 703 |
| — |
|
|
|
|
| 9,285 |
United Kingdom (17.2%) |
|
|
|
| |
| HSBC Holdings plc |
| 2,563,765 |
| 22,338 |
| Royal Dutch Shell plc Class A |
| 637,964 |
| 20,326 |
| BP plc |
| 2,531,628 |
| 18,409 |
| Royal Dutch Shell plc Class B |
| 409,304 |
| 13,210 |
| GlaxoSmithKline plc |
| 621,641 |
| 12,771 |
| AstraZeneca plc |
| 167,345 |
| 12,467 |
| British American Tobacco plc |
| 287,097 |
| 11,240 |
| Unilever plc |
| 140,208 |
| 8,499 |
| Rio Tinto plc |
| 141,296 |
| 8,243 |
| Lloyds Banking Group plc |
| 9,054,465 |
| 7,405 |
| Vodafone Group plc |
| 3,402,119 |
| 6,311 |
| BHP Group plc |
| 264,942 |
| 6,254 |
| Glencore plc |
| 1,437,531 |
| 5,704 |
| National Grid plc |
| 432,370 |
| 4,737 |
| Barclays plc |
| 2,168,717 |
| 4,654 |
| Imperial Brands plc |
| 120,748 |
| 3,842 |
| Anglo American plc |
| 125,568 |
| 3,258 |
| BT Group plc |
| 1,060,071 |
| 3,163 |
| Standard Chartered plc |
| 343,018 |
| 3,136 |
| Aviva plc |
| 500,981 |
| 2,814 |
| Legal & General Group plc |
| 755,625 |
| 2,748 |
| BAE Systems plc |
| 402,364 |
| 2,586 |
| SSE plc |
| 131,107 |
| 1,962 |
| WPP plc |
| 156,573 |
| 1,954 |
| Royal Bank of Scotland Group plc |
| 570,374 |
| 1,786 |
| Persimmon plc |
| 39,494 |
| 1,154 |
| Standard Life Aberdeenplc |
| 312,848 |
| 1,140 |
| Micro Focus International plc |
| 43,404 |
| 1,100 |
| Carnival plc |
| 20,705 |
| 1,098 |
| Barratt Developments plc |
| 130,810 |
| 1,029 |
| Centrica plc |
| 731,832 |
| 1,017 |
| St. James’s Place plc |
| 68,155 |
| 1,000 |
| Taylor Wimpey plc |
| 409,771 |
| 971 |
| United Utilities Group plc |
| 88,303 |
| 958 |
| RSA Insurance Group plc |
| 132,836 |
| 942 |
| Kingfisher plc |
| 267,745 |
| 923 |
| Smurfit Kappa Group plc |
| 30,609 |
| 898 |
| ITV plc |
| 474,501 |
| 847 |
| Severn Trent plc |
| 30,677 |
| 817 |
| Marks & Spencer Group plc |
| 212,507 |
| 793 |
| Wm Morrison Supermarkets plc |
| 280,369 |
| 790 |
| Direct Line Insurance Group plc |
| 178,990 |
| 770 |
| International Consolidated Airlines Group SA (London Shares) |
| 108,660 |
| 768 |
| DS Smith plc |
| 163,778 |
| 765 |
| Admiral Group plc |
| 26,478 |
| 763 |
| Berkeley Group Holdings plc |
| 14,992 |
| 735 |
| Meggitt plc |
| 102,407 |
| 729 |
| Phoenix Group Holdings plc |
| 68,353 |
| 646 |
| GVC Holdings plc |
| 74,283 |
| 634 |
| Bellway plc |
| 15,314 |
| 622 |
| TUI AG |
| 55,318 |
| 616 |
| Tate & Lyle plc |
| 61,136 |
| 613 |
| J Sainsbury plc |
| 207,247 |
| 602 |
| Schroders plc |
| 14,450 |
| 598 |
| G4S plc |
| 201,015 |
| 568 |
| Cineworld Group plc |
| 130,872 |
| 543 |
| RPC Group plc |
| 52,202 |
| 538 |
| Investec plc |
| 84,596 |
| 537 |
| Pennon Group plc |
| 53,996 |
| 528 |
| Evraz plc |
| 63,868 |
| 524 |
| John Wood Group plc |
| 85,197 |
| 522 |
| IMI plc |
| 35,746 |
| 491 |
| Babcock International Group plc |
| 63,595 |
| 437 |
| Inchcape plc |
| 53,832 |
| 432 |
| easyJet plc |
| 28,181 |
| 427 |
| CYBG plc |
| 159,039 |
| 422 |
| Royal Mail plc |
| 119,089 |
| 393 |
| Polymetal International plc |
| 36,833 |
| 388 |
| Ashmore Group plc |
| 46,413 |
| 278 |
| British American Tobacco plc ADR |
| 4,220 |
| 165 |
| Dixons Carphone plc |
| 732 |
| 1 |
| Travis Perkins plc |
| 38 |
| 1 |
| Inmarsat plc |
| 21 |
| — |
|
|
|
|
| 221,350 |
United States (0.1%) |
|
|
|
| |
| ASE Technology Holding Co. Ltd. ADR |
| 144,724 |
| 659 |
| Grupo Aval Acciones y Valores SA ADR |
| 7,552 |
| 59 |
|
|
|
|
| 718 |
Total Common Stocks |
|
|
| 1,274,757 |
International High Dividend Yield Index Fund
|
|
| Shares |
| Market Value· ($000) |
Temporary Cash Investments (3.7%)1 |
|
|
|
| |
Money Market Fund (3.7%) |
|
|
|
| |
4,5 | Vanguard Market Liquidity Fund, 2.545% |
| 482,440 |
| 48,249 |
|
|
| Face Amount ($000) |
|
|
U.S. Government and Agency Obligations (0.0%) |
|
|
|
| |
6 | United States Treasury Bill, 2.390%, 7/5/19 |
| 100 |
| 100 |
Total Temporary Cash Investments |
|
|
| 48,349 | |
Total Investments (102.8%) |
|
|
| 1,323,106 |
|
|
|
|
| Amount ($000) |
Other Assets and Liabilities (-2.8%) |
|
|
|
| |
Other Assets |
|
|
|
| |
Investment in Vanguard |
|
|
| 60 | |
Receivables for Accrued Income |
|
|
| 6,730 | |
Receivables for Capital Shares Issued |
|
|
| 49 | |
Variation Margin Receivable—Futures Contracts |
|
|
| 25 | |
Unrealized Appreciation—Forward Currency Contracts |
|
|
| 120 | |
Other Assets6 |
|
|
| 1,317 | |
Total Other Assets |
|
|
| 8,301 | |
Liabilities |
|
|
|
| |
Payables for Investment Securities Purchased |
|
|
| (3,164) | |
Collateral for Securities on Loan |
|
|
| (41,385) | |
Payables for Capital Shares Redeemed |
|
|
| (165) | |
Payables to Vanguard |
|
|
| (194) | |
Unrealized Depreciation—Forward Currency Contracts |
|
|
| (69) | |
Other Liabilities |
|
|
| (19) | |
Total Liabilities |
|
|
| (44,996) | |
Net Assets (100%) |
|
|
| 1,286,411 |
At April 30, 2019, net assets consisted of:
| Amount ($000) |
Paid-in Capital | 1,290,641 |
Total Distributable Earnings (Loss) | (4,230) |
Net Assets | 1,286,411 |
Investor Shares—Net Assets |
|
Applicable to 277,089 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 6,927 |
Net Asset Value Per Share—Investor Shares | $25.00 |
|
|
ETF Shares—Net Assets |
|
Applicable to 17,412,037 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,087,285 |
Net Asset Value Per Share—ETF Shares | $62.44 |
|
|
Admiral Shares—Net Assets |
|
Applicable to 6,351,010 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 192,199 |
Net Asset Value Per Share—Admiral Shares | $30.26 |
• | See Note A in Notes to Financial Statements. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $38,715,000. |
* | Non-income-producing security. |
§ | Security value determined using significant unobservable inputs. |
1 | The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 2.8%, respectively, of net assets. |
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 April 30, 2019, the aggregate value of these securities was $10,607,000, representing 0.8% of net assets. |
3 | “Other” represents securities that are not classified by the fund’s benchmark index. |
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 | Includes $41,385,000 of collateral received for securities on loan. |
6 | Securities with a value of $100,000 and cash of $494,000 have been segregated as initial margin for open futures contracts. |
| ADR—American Depositary Receipt. |
| GDR—Global Depositary Receipt. |
| NVDR—Non-Voting Depository Receipt. |
| REIT—Real Estate Investment Trust. |
International High Dividend Yield Index Fund
Derivative Financial Instruments Outstanding as of Period End | ||||||||
|
|
|
|
|
|
|
|
|
Futures Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ($000) |
|
|
|
|
|
|
|
| Value and |
|
|
|
| Number of |
|
|
| Unrealized |
|
|
|
| Long (Short) |
| Notional |
| Appreciation |
|
| Expiration |
| Contracts |
| Amount |
| (Depreciation) |
Long Futures Contracts |
|
|
|
|
|
|
|
|
E-mini S&P 500 Index |
| June 2019 |
| 80 |
| 11,794 |
| 414 |
Forward Currency Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contract Settlement Date |
|
|
|
|
|
|
| Unrealized Appreciation ($000) |
| Unrealized (Depreciation) ($000) |
|
|
| Contract Amount (000) |
|
| |||||||
Counterparty |
|
|
| Receive |
|
| Deliver |
|
| |||
Bank of America, N.A. |
| 6/26/19 |
| EUR | 3,160 |
| USD | 3,613 |
| — |
| (51) |
Goldman Sachs International |
| 6/25/19 |
| AUD | 2,107 |
| USD | 1,504 |
| — |
| (16) |
Bank of America, N.A. |
| 6/25/19 |
| AUD | 211 |
| USD | 151 |
| — |
| (2) |
Goldman Sachs International |
| 6/26/19 |
| USD | 3,759 |
| EUR | 3,261 |
| 82 |
| — |
BNP Paribas |
| 7/2/19 |
| USD | 2,005 |
| JPY | 219,800 |
| 21 |
| — |
Bank of America, N.A. |
| 6/25/19 |
| USD | 1,649 |
| AUD | 2,311 |
| 17 |
| — |
|
|
|
|
|
|
|
|
|
| 120 |
| (69) |
AUD—Australian dollar.
EUR—euro.
JPY—Japanese yen.
USD—U.S. dollar.
See accompanying Notes, which are an integral part of the Financial Statements.
International High Dividend Yield Index Fund
Statement of Operations
| Six Months Ended |
| April 30, 2019 |
| ($000) |
Investment Income |
|
Income |
|
Dividends1 | 24,565 |
Interest2 | 72 |
Securities Lending—Net | 167 |
Total Income | 24,804 |
Expenses |
|
The Vanguard Group—Note B |
|
Investment Advisory Services | 154 |
Management and Administrative—Investor Shares | 13 |
Management and Administrative—ETF Shares | 1,276 |
Management and Administrative—Admiral Shares | 243 |
Marketing and Distribution—Investor Shares | 1 |
Marketing and Distribution—ETF Shares | 27 |
Marketing and Distribution—Admiral Shares | 6 |
Custodian Fees | 47 |
Shareholders’ Reports—Investor Shares | 1 |
Shareholders’ Reports—ETF Shares | 14 |
Shareholders’ Reports—Admiral Shares | 1 |
Trustees’ Fees and Expenses | — |
Total Expenses | 1,783 |
Expenses Paid Indirectly | (12) |
Net Expenses | 1,771 |
Net Investment Income | 23,033 |
Realized Net Gain (Loss) |
|
Investment Securities Sold2 | 4,951 |
Futures Contracts | 51 |
Forward Currency Contracts | (165) |
Foreign Currencies | (35) |
Realized Net Gain (Loss) | 4,802 |
Change in Unrealized Appreciation (Depreciation) |
|
Investment Securities2 | 61,981 |
Futures Contracts | 887 |
Forward Currency Contracts | 171 |
Foreign Currencies | 1 |
Change in Unrealized Appreciation (Depreciation) | 63,040 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 90,875 |
1 Dividends are net of foreign withholding taxes of $2,166,000.
2 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $57,000, $1,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
International High Dividend Yield Index Fund
Statement of Changes in Net Assets
| Six Months Ended | Year Ended | |
| April 30, |
| October 31, |
| 2019 |
| 2018 |
| ($000) |
| ($000) |
Increase (Decrease) in Net Assets |
|
| |
Operations |
|
| |
Net Investment Income | 23,033 | 43,697 | |
Realized Net Gain (Loss) | 4,802 | 5,268 | |
Change in Unrealized Appreciation (Depreciation) | 63,040 | (143,207) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 90,875 | (94,242) | |
Distributions |
|
| |
Net Investment Income |
|
| |
Investor Shares | (111) | (349) | |
ETF Shares | (15,248) | (33,497) | |
Admiral Shares | (2,882) | (7,177) | |
Realized Capital Gain |
|
| |
Investor Shares | — | — | |
ETF Shares | — | — | |
Admiral Shares | — | — | |
Total Distributions | (18,241) | (41,023) | |
Capital Share Transactions |
|
| |
Investor Shares | (2,041) | 834 | |
ETF Shares | 136,798 | 403,658 | |
Admiral Shares | 443 | 35,215 | |
Net Increase (Decrease) from Capital Share Transactions | 135,200 | 439,707 | |
Total Increase (Decrease) | 207,834 | 304,442 | |
Net Assets |
|
| |
Beginning of Period | 1,078,577 | 774,135 | |
End of Period | 1,286,411 | 1,078,577 |
See accompanying Notes, which are an integral part of the Financial Statements.
International High Dividend Yield Index Fund
Financial Highlights
Investor Shares
For a Share Outstanding Throughout Each Period | Six Months |
| Year Ended | Feb. 25, | |
2018 | 2017 | ||||
Net Asset Net Asset Value, Beginning of Period | $23.56 | $26.29 | $22.24 | $20.00 | |
Investment Operations |
|
|
|
| |
Net Investment Income2 | .443 | 1.033 | .947 | .578 | |
Net Realized and Unrealized Gain (Loss) on Investments3 | 1.362 | (2.840) | 3.865 | 2.059 | |
Total from Investment Operations | 1.805 | (1.807) | 4.812 | 2.637 | |
Distributions |
|
|
|
| |
Dividends from Net Investment Income | (.365) | (.923) | (.762) | (.397) | |
Distributions from Realized Capital Gains | — | — | — | — | |
Total Distributions | (.365) | (.923) | (.762) | (.397) | |
Net Asset Value, End of Period | $25.00 | $23.56 | $26.29 | $22.24 | |
Total Return4 | 7.80%5 | -7.09%5 | 21.92%5 | 13.26% | |
Ratios/Supplemental Data |
|
|
|
| |
Net Assets, End of Period (Millions) | $7 | $9 | $9 | $3 | |
Ratio of Total Expenses to Average Net Assets | 0.42% | 0.42% | 0.42% | 0.42%6,7 | |
Ratio of Net Investment Income to Average Net Assets | 3.66% | 3.96% | 3.63% | 3.55%6 | |
Portfolio Turnover Rate8 | 7% | 10% | 8% | 6% | |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.00 for 2019, $.01 for 2018, and $.02 for 2017.
4 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.
5 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
6 Annualized.
7 The ratio of total expenses to average net assets before an expense reimbursement of 0.31% was 0.73%. The expense reimbursement was due to higher than anticipated custody costs associated with a higher volume of securities transactions, which included transactions from a rebalance of the benchmark index shortly after the fund’s inception. The fund is not obligated to repay this amount to Vanguard.
8 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.
International High Dividend Yield Index Fund
Financial Highlights
ETF Shares
For a Share Outstanding Throughout Each Period | Six Months |
| Year Ended | Feb. 25, | |
2018 | 2017 | ||||
Net Asset Value, Beginning of Period | $58.85 | $65.69 | $55.61 | $50.00 | |
Investment Operations |
|
|
|
| |
Net Investment Income2 | 1.191 | 2.639 | 2.329 | 1.323 | |
Net Realized and Unrealized Gain (Loss) on Investments3 | 3.348 | (7.097) | 9.763 | 5.305 | |
Total from Investment Operations | 4.539 | (4.458) | 12.092 | 6.628 | |
Distributions |
|
|
|
| |
Dividends from Net Investment Income | (.949) | (2.382) | (2.012) | (1.018) | |
Distributions from Realized Capital Gains | — | — | — | — | |
Total Distributions | (.949) | (2.382) | (2.012) | (1.018) | |
Net Asset Value, End of Period | $62.44 | $58.85 | $65.69 | $55.61 | |
Total Return | 7.86% | -7.03% | 22.03% | 13.37% | |
Ratios/Supplemental Data |
|
|
|
| |
Net Assets, End of Period (Millions) | $1,087 | $889 | $598 | $117 | |
Ratio of Total Expenses to Average Net Assets | 0.31% | 0.32% | 0.32% | 0.32%4,5 | |
Ratio of Net Investment Income to Average Net Assets | 3.77% | 4.06% | 3.73% | 3.65%4 | |
Portfolio Turnover Rate6 | 7% | 10% | 8% | 6% | |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.01 for 2019, $.02 for 2018, and $.04 for 2017.
4 Annualized.
5 The ratio of total expenses to average net assets before an expense reimbursement of 0.31% was 0.63%. The expense reimbursement was due to higher than anticipated custody costs associated with a higher volume of securities transactions, which included transactions from a rebalance of the benchmark index shortly after the fund’s inception. The fund is not obligated to repay this amount to Vanguard.
6 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.
International High Dividend Yield Index Fund
Financial Highlights
Admiral Shares
For a Share Outstanding Throughout Each Period | Six Months |
| Year Ended | March 2, | |
2018 | 2017 | ||||
Net Asset Value, Beginning of Period | $28.52 | $31.83 | $26.92 | $25.00 | |
Investment Operations |
|
|
|
| |
Net Investment Income2 | .568 | 1.264 | 1.114 | .597 | |
Net Realized and Unrealized Gain (Loss) on Investments3 | 1.631 | (3.423) | 4.743 | 1.817 | |
Total from Investment Operations | 2.199 | (2.159) | 5.857 | 2.414 | |
Distributions |
|
|
|
| |
Dividends from Net Investment Income | (.459) | (1.151) | (.947) | (.494) | |
Distributions from Realized Capital Gains | — | — | — | — | |
Total Distributions | (.459) | (1.151) | (.947) | (.494) | |
Net Asset Value, End of Period | $30.26 | $28.52 | $31.83 | $26.92 | |
Total Return4 | 7.86%5 | -7.00%5 | 22.04%5 | 9.73% | |
Ratios/Supplemental Data |
|
|
|
| |
Net Assets, End of Period (Millions) | $192 | $181 | $168 | $84 | |
Ratio of Total Expenses to Average Net Assets | 0.31% | 0.32% | 0.32% | 0.32%6,7 | |
Ratio of Net Investment Income to Average Net Assets | 3.77% | 4.06% | 3.73% | 3.65%6 | |
Portfolio Turnover Rate8 | 7% | 10% | 8% | 6% | |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Includes increases from purchase and redemption fees of $.00 for 2019, $.01 for 2018, and $.02 for 2017.
4 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.
5 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
6 Annualized.
7 The ratio of total expenses to average net assets before an expense reimbursement of 0.31% was 0.63%. The expense reimbursement was due to higher than anticipated custody costs associated with a higher volume of securities transactions, which included transactions from a rebalance of the benchmark index shortly after the fund’s inception. The fund is not obligated to repay this amount to Vanguard.
8 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.
International High Dividend Yield Index Fund
Notes to Financial Statements
Vanguard International High Dividend Yield Index 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. The fund offers three classes of shares: Investor 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 Nasdaq; they can be purchased and sold through a broker.
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 at their fair values calculated according to procedures adopted 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. Futures and Forward Currency 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
International High Dividend Yield Index Fund
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 assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
The fund also enters into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts 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. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, 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 forward currency 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 assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency 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.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets 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 or forward currency contracts.
During the six months ended April 30, 2019, 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. The fund’s average investment in forward currency contracts represented 1% of net assets, based on the average of the 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 all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (October 31, 2016–2018), and for the period ended April 30, 2019, and has concluded that no provision for federal 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 and may differ from net investment income and realized capital gains for financial reporting purposes.
International High Dividend Yield Index Fund
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 Net Assets for the return of the collateral, during the period the securities are on loan. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees 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 this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at April 30, 2019, or at any time during the period then ended.
8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. Fees assessed on capital share transactions are credited to paid-in capital.
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.
International High Dividend Yield Index Fund
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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard 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 April 30, 2019, the fund had contributed to Vanguard capital in the amount of $60,000, representing 0.00% of the fund’s net assets and 0.02% of Vanguard’s capitalization. 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 six months ended April 30, 2019, custodian fee offset arrangements reduced the fund’s expenses by $12,000 (an annual rate of 0.00% of average net assets).
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 Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of April 30, 2019, based on the inputs used to value them:
|
| Level 1 |
| Level 2 |
| Level 3 |
Investments |
| ($000) |
| ($000) |
| ($000) |
Common Stocks—North and South America |
| 126,999 |
| — |
| — |
Common Stocks—Other |
| 2,626 |
| 1,144,794 |
| 338 |
Temporary Cash Investments |
| 48,249 |
| 100 |
| — |
Futures Contracts—Assets1 |
| 25 |
| — |
| — |
Forward Currency Contracts—Assets |
| — |
| 120 |
| — |
Forward Currency Contracts—Liabilities |
| — |
| (69) |
| — |
Total |
| 177,899 |
| 1,144,945 |
| 338 |
1 Represents variation margin on the last day of the reporting period.
International High Dividend Yield Index Fund
E. At April 30, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:
|
|
|
| Foreign |
|
|
|
| Equity |
| Exchange |
|
|
|
| Contracts |
| Contracts |
| Total |
Statement of Net Assets Caption |
| ($000) |
| ($000) |
| ($000) |
Variation Margin Receivable—Futures Contracts |
| 25 |
| — |
| 25 |
Unrealized Appreciation—Forward Currency Contracts |
| — |
| 120 |
| 120 |
Total Assets |
| 25 |
| 120 |
| 145 |
|
|
|
|
|
|
|
Unrealized Depreciation—Forward Currency Contracts |
| — |
| (69) |
| (69) |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2019, were:
|
|
|
| Foreign |
|
|
|
| Equity |
| Exchange |
|
|
|
| Contracts |
| Contracts |
| Total |
Realized Net Gain (Loss) on Derivatives |
| ($000) |
| ($000) |
| ($000) |
Futures Contracts |
| 51 |
| — |
| 51 |
Forward Currency Contracts |
| — |
| (165) |
| (165) |
Realized Net Gain (Loss) on Derivatives |
| 51 |
| (165) |
| (114) |
|
|
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|
|
|
|
|
|
Futures Contracts |
| 887 |
| — |
| 887 |
Forward Currency Contracts |
| — |
| 171 |
| 171 |
Change in Unrealized Appreciation (Depreciation) on Derivatives |
| 887 |
| 171 |
| 1,058 |
F. As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
| Amount |
|
| ($000) |
Tax Cost |
| 1,337,068 |
Gross Unrealized Appreciation |
| 91,097 |
Gross Unrealized Depreciation |
| (104,594) |
Net Unrealized Appreciation (Depreciation) |
| (13,497) |
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2018, the fund had available capital losses totaling $5,468,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending October 31, 2019; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
International High Dividend Yield Index Fund
G. During the six months ended April 30, 2019, the fund purchased $288,280,000 of investment securities and sold $152,476,000 of investment securities, other than temporary cash investments. Purchases and sales include $116,845,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
H. Capital share transactions for each class of shares were:
|
| Six Months Ended |
| Year Ended | ||||
|
| April 30, 2019 |
| October 31, 2018 | ||||
|
| Amount |
| Shares |
| Amount |
| Shares |
|
| ($000 | ) | (000 | ) | ($000 | ) | (000) |
Investor Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 436 |
| 17 |
| 7,139 |
| 269 |
Issued in Lieu of Cash Distributions |
| 104 |
| 5 |
| 323 |
| 13 |
Redeemed2 |
| (2,581 | ) | (108 | ) | (6,628 | ) | (256) |
Net Increase (Decrease)—Investor Shares |
| (2,041 | ) | (86 | ) | 834 |
| 26 |
ETF Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 136,798 |
| 2,302 |
| 461,728 |
| 6,912 |
Issued in Lieu of Cash Distributions |
| — |
| — |
| — |
| — |
Redeemed2 |
| — |
| — |
| (58,070 | ) | (900) |
Net Increase (Decrease)—ETF Shares |
| 136,798 |
| 2,302 |
| 403,658 |
| 6,012 |
Admiral Shares |
|
|
|
|
|
|
|
|
Issued1 |
| 22,601 |
| 783 |
| 79,430 |
| 2,484 |
Issued in Lieu of Cash Distributions |
| 2,444 |
| 88 |
| 6,055 |
| 197 |
Redeemed2 |
| (24,602 | ) | (856 | ) | (50,270 | ) | (1,611) |
Net Increase (Decrease)—Admiral Shares |
| 443 |
| 15 |
| 35,215 |
| 1,070 |
1 Includes purchase fees for fiscal 2019 and 2018 of $53,000 and $212,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2019 and 2018 of $62,000 and $124,000, respectively (fund totals).
I. Management has determined that no events or transactions occurred subsequent to April 30, 2019, that would require recognition or disclosure in these financial statements.
Trustees Approve Advisory Arrangements
The board of trustees of Vanguard International Dividend Appreciation Index Fund and Vanguard International High Dividend Yield Index Fund has renewed the funds’ investment advisory arrangements with The Vanguard Group, Inc. (Vanguard), through its Equity Index Group. The board determined that continuing each fund’s internalized management structure 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.
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 arrangements. 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 funds since their inceptions in 2016 and took into account the organizational depth and stability of the advisor. The board considered that Vanguard has been managing investments for more than four decades. The Equity Index Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.
Investment performance
The board considered each fund’s performance since its inception, including any periods of outperformance or underperformance compared with its target index and peer group. The board concluded that the performance was such that the advisory arrangements should continue.
Cost
The board concluded that the funds’ expense ratios were well below the average expense ratios charged by funds in their respective peer groups and that the funds’ advisory expenses were also well below their peer-group averages.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The board concluded that each fund’s arrangement with Vanguard ensures that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.
The board will consider whether to renew the advisory arrangements again after a one-year period.
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| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > 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.
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, 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 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.
| © 2019 The Vanguard Group, Inc. All rights reserved. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636. Vanguard Marketing Corporation, Distributor.
Q20152 062019 |
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable.
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.
(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.
(b) Internal Control Over Financial Reporting. There were no significant changes in 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) Certifications.
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 WHITEHALL FUNDS | |
|
| |
BY: | /s/ MORTIMER J. BUCKLEY* |
|
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|
|
| MORTIMER J. BUCKLEY |
|
| CHIEF EXECUTIVE OFFICER |
|
Date: June 18, 2019
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 WHITEHALL FUNDS | |
|
| |
BY: | /s/ MORTIMER J. BUCKLEY* |
|
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|
|
| MORTIMER J. BUCKLEY |
|
| CHIEF EXECUTIVE OFFICER |
|
| ||
Date: June 18, 2019 | ||
| ||
| VANGUARD WHITEHALL FUNDS | |
|
| |
BY: | /s/ THOMAS J. HIGGINS* |
|
|
|
|
| THOMAS J. HIGGINS |
|
| CHIEF FINANCIAL OFFICER |
|
| ||
Date: June 18, 2019 |
* By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018; see file Number 33-32216, Incorporated by Reference.