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: 811-02968-99
Name of Registrant: | Vanguard Trustees’ Equity Fund |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2020—April 30, 2021
Item 1: Reports to Shareholders
• | 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. |
• | 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. |
Six Months Ended April 30, 2021 | |||
International Value Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,363.20 | $2.05 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.06 | 1.76 |
Communication Services | 5.5% |
Consumer Discretionary | 15.4 |
Consumer Staples | 7.2 |
Energy | 5.6 |
Financials | 18.3 |
Health Care | 4.6 |
Industrials | 18.8 |
Information Technology | 7.7 |
Materials | 12.2 |
Real Estate | 1.4 |
Utilities | 3.3 |
Shares | Market Value• ($000) | |||||
Common Stocks (94.3%) | ||||||
Australia (1.0%) | ||||||
BHP Group Ltd. | 2,086,295 | 75,933 | ||||
National Australia Bank Ltd. | 2,179,620 | 44,604 | ||||
Adbri Ltd. | 8,575,294 | 21,190 | ||||
141,727 | ||||||
Belgium (0.5%) | ||||||
Anheuser-Busch InBev SA/NV | 939,832 | 66,571 | ||||
Brazil (2.3%) | ||||||
* | Banco Bradesco SA ADR | 34,531,766 | 150,213 | |||
Ambev SA ADR | 34,321,000 | 95,412 | ||||
Lojas Renner SA | 6,012,300 | 44,716 | ||||
* | Cia de Saneamento Basico do Estado de Sao Paulo | 4,086,300 | 32,182 | |||
322,523 | ||||||
Canada (2.9%) | ||||||
Canadian Natural Resources Ltd. | 3,628,109 | 110,129 | ||||
Suncor Energy Inc. | 4,191,510 | 89,651 | ||||
Canadian National Railway Co. | 491,509 | 52,916 | ||||
Bank of Nova Scotia | 735,558 | 46,839 | ||||
Saputo Inc. | 1,457,549 | 46,318 | ||||
1 | Nutrien Ltd. | 696,155 | 38,428 | |||
Alimentation Couche-Tard Inc. Class B | 777,900 | 26,359 | ||||
410,640 | ||||||
China (5.4%) | ||||||
* | Alibaba Group Holding Ltd. | 6,655,600 | 192,398 | |||
Tencent Holdings Ltd. | 1,895,000 | 151,168 | ||||
Ping An Insurance Group Co. of China Ltd. Class H | 9,580,000 | 104,444 | ||||
ENN Energy Holdings Ltd. | 5,284,900 | 90,185 |
Shares | Market Value• ($000) | |||||
Autohome Inc. ADR | 616,984 | 57,213 | ||||
China Longyuan Power Group Corp. Ltd. Class H | 36,021,000 | 52,970 | ||||
* | Weibo Corp. ADR | 887,480 | 44,729 | |||
*,2 | ESR Cayman Ltd. | 12,567,200 | 42,919 | |||
Ming Yang Smart Energy Group Ltd. Class A | 8,118,800 | 22,123 | ||||
758,149 | ||||||
Denmark (1.0%) | ||||||
Vestas Wind Systems A/S | 1,792,154 | 73,911 | ||||
Carlsberg A/S Class B | 397,737 | 69,779 | ||||
143,690 | ||||||
Egypt (0.2%) | ||||||
* | Commercial International Bank Egypt SAE (Registered) GDR | 6,168,380 | 22,553 | |||
Finland (1.2%) | ||||||
Nokian Renkaat OYJ | 1,925,150 | 71,677 | ||||
Sampo OYJ Class A | 1,424,216 | 67,557 | ||||
* | Nokia OYJ | 6,980,867 | 33,068 | |||
172,302 | ||||||
France (9.7%) | ||||||
* | Airbus SE | 1,067,483 | 128,375 | |||
Sanofi | 1,203,501 | 126,178 | ||||
* | Engie SA | 7,623,027 | 113,549 | |||
Vinci SA | 1,026,137 | 112,598 | ||||
* | Atos SE | 1,542,318 | 105,031 | |||
Air Liquide SA | 618,750 | 104,199 | ||||
* | Safran SA | 670,077 | 100,048 | |||
* | Vivendi SE | 2,609,626 | 90,973 | |||
* | Societe Generale SA | 3,027,883 | 86,135 | |||
TOTAL SE | 1,853,010 | 81,899 | ||||
* | Alstom SA | 1,335,179 | 72,916 | |||
Pernod Ricard SA | 278,117 | 57,116 | ||||
* | Accor SA | 1,309,358 | 52,723 | |||
* | Credit Agricole SA | 2,444,326 | 37,810 | |||
Publicis Groupe SA | 472,470 | 30,578 |
Shares | Market Value• ($000) | |||||
Thales SA | 233,464 | 23,801 | ||||
* | Natixis SA | 3,560,935 | 17,388 | |||
* | Technip Energies NV | 1,188,167 | 16,920 | |||
1,358,237 | ||||||
Germany (5.3%) | ||||||
Volkswagen AG Preference Shares | 533,437 | 138,886 | ||||
Henkel AG & Co. KGaA | 889,060 | 88,330 | ||||
BASF SE | 1,092,310 | 88,031 | ||||
Bayerische Motoren Werke AG | 858,600 | 86,041 | ||||
Fresenius Medical Care AG & Co. KGaA | 848,246 | 67,543 | ||||
Merck KGaA | 330,891 | 58,132 | ||||
Knorr-Bremse AG | 419,155 | 51,378 | ||||
Jungheinrich AG Preference Shares | 724,632 | 37,909 | ||||
MTU Aero Engines AG | 145,066 | 36,609 | ||||
Continental AG | 225,785 | 30,512 | ||||
SAP SE | 161,160 | 22,566 | ||||
FUCHS PETROLUB SE Preference Shares | 414,898 | 22,093 | ||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 28,191 | 8,145 | ||||
1 | Fresenius SE & Co. KGaA | 149,789 | 7,362 | |||
743,537 | ||||||
Hong Kong (2.3%) | ||||||
AIA Group Ltd. | 6,409,200 | 81,349 | ||||
* | Sands China Ltd. | 12,078,400 | 57,156 | |||
* | Melco Resorts & Entertainment Ltd. ADR | 2,496,729 | 48,162 | |||
Yue Yuen Industrial Holdings Ltd. | 14,260,000 | 35,689 | ||||
Hongkong Land Holdings Ltd. | 5,361,000 | 26,511 | ||||
Xinyi Glass Holdings Ltd. | 6,160,000 | 21,825 | ||||
CK Asset Holdings Ltd. | 3,466,500 | 21,703 | ||||
Jardine Matheson Holdings Ltd. | 277,000 | 18,600 | ||||
2 | WH Group Ltd. | 16,951,000 | �� 14,770 | |||
325,765 | ||||||
India (4.2%) | ||||||
* | Adani Ports & Special Economic Zone Ltd. | 12,370,757 | 121,667 | |||
* | ICICI Bank Ltd. ADR | 5,524,309 | 90,046 | |||
Zee Entertainment Enterprises Ltd. | 31,168,513 | 77,919 | ||||
Housing Development Finance Corp. Ltd. | 2,096,310 | 68,267 | ||||
Reliance Industries Ltd. | 2,529,365 | 67,954 |
Shares | Market Value• ($000) | |||||
Ambuja Cements Ltd. | 15,088,549 | 62,822 | ||||
UPL Ltd. | 5,055,870 | 41,338 | ||||
Hero MotoCorp Ltd. | 615,006 | 23,386 | ||||
GAIL India Ltd. | 9,815,836 | 18,132 | ||||
Maruti Suzuki India Ltd. | 169,720 | 14,767 | ||||
586,298 | ||||||
Indonesia (1.2%) | ||||||
Astra International Tbk. PT | 193,215,500 | 73,429 | ||||
Bank Mandiri Persero Tbk. PT | 120,818,200 | 51,440 | ||||
1 | Telkom Indonesia Persero Tbk. PT ADR | 1,420,440 | 31,335 | |||
Selamat Sempurna Tbk. PT | 157,710,200 | 14,357 | ||||
170,561 | ||||||
Ireland (1.2%) | ||||||
* | Ryanair Holdings plc ADR | 778,608 | 90,980 | |||
CRH plc | 1,588,540 | 74,954 | ||||
165,934 | ||||||
Israel (0.1%) | ||||||
* | Check Point Software Technologies Ltd. | 86,700 | 10,127 | |||
Italy (1.6%) | ||||||
Enel SpA | 9,648,521 | 95,803 | ||||
1 | UniCredit SpA | 8,257,714 | 84,823 | |||
* | Freni Brembo SpA | 3,590,532 | 44,686 | |||
225,312 | ||||||
Japan (10.3%) | ||||||
Mitsubishi Electric Corp. | 7,344,900 | 113,173 | ||||
Hitachi Ltd. | 1,999,500 | 98,971 | ||||
Denso Corp. | 1,416,500 | 91,581 | ||||
Toyota Motor Corp. | 1,101,800 | 82,441 | ||||
Shin-Etsu Chemical Co. Ltd. | 452,400 | 76,366 | ||||
Nitto Denko Corp. | 887,300 | 73,428 | ||||
Kubota Corp. | 3,088,000 | 72,648 | ||||
Makita Corp. | 1,519,300 | 68,422 | ||||
Sumitomo Mitsui Financial Group Inc. | 1,823,200 | 64,047 | ||||
Nintendo Co. Ltd. | 108,600 | 62,299 | ||||
Shimano Inc. | 231,700 | 52,979 | ||||
Fujitsu Ltd. | 332,500 | 52,820 | ||||
Bridgestone Corp. | 1,263,800 | 50,651 | ||||
Ryohin Keikaku Co. Ltd. | 2,350,600 | 49,506 | ||||
Daiwa House Industry Co. Ltd. | 1,658,000 | 49,163 | ||||
Komatsu Ltd. | 1,530,800 | 45,013 | ||||
Daito Trust Construction Co. Ltd. | 400,000 | 42,533 | ||||
Suzuki Motor Corp. | 964,200 | 36,588 | ||||
Subaru Corp. | 1,818,000 | 33,803 |
Shares | Market Value• ($000) | |||||
Ain Holdings Inc. | 505,900 | 28,079 | ||||
ITOCHU Corp. | 894,800 | 27,935 | ||||
Mitsubishi Heavy Industries Ltd. | 874,100 | 26,021 | ||||
Seven & i Holdings Co. Ltd. | 586,300 | 25,314 | ||||
Omron Corp. | 312,400 | 23,657 | ||||
Nihon Kohden Corp. | 777,600 | 23,513 | ||||
Teijin Ltd. | 1,227,300 | 20,207 | ||||
FANUC Corp. | 84,200 | 19,390 | ||||
Daiwa Securities Group Inc. | 3,414,000 | 18,217 | ||||
* | Japan Airlines Co. Ltd. | 570,600 | 12,223 | |||
1,440,988 | ||||||
Mexico (0.8%) | ||||||
Grupo Financiero Banorte SAB de CV | 20,644,706 | 117,456 | ||||
Netherlands (3.0%) | ||||||
* | AerCap Holdings NV | 1,772,366 | 103,240 | |||
Koninklijke DSM NV | 430,816 | 77,245 | ||||
Wolters Kluwer NV | 657,410 | 59,464 | ||||
*,2 | ABN AMRO Bank NV | 4,225,815 | 54,564 | |||
1 | SBM Offshore NV | 3,035,920 | 52,699 | |||
Aegon NV | 8,867,307 | 41,094 | ||||
* | Boskalis Westminster | 1,086,826 | 34,689 | |||
422,995 | ||||||
Norway (1.7%) | ||||||
Yara International ASA | 1,276,180 | 66,568 | ||||
Telenor ASA | 3,393,229 | 60,451 | ||||
Equinor ASA | 2,479,005 | 50,058 | ||||
TGS NOPEC Geophysical Co. ASA | 2,274,280 | 34,359 | ||||
Bakkafrost P/F | 325,390 | 25,779 | ||||
237,215 | ||||||
Russia (0.4%) | ||||||
Gazprom PJSC ADR | 5,828,905 | 35,345 | ||||
* | Fix Price Group Ltd. GDR | 2,284,044 | 21,383 | |||
56,728 | ||||||
Singapore (1.8%) | ||||||
United Overseas Bank Ltd. | 4,018,500 | 80,100 | ||||
DBS Group Holdings Ltd. | 2,592,900 | 58,110 | ||||
Singapore Telecommunications Ltd. | 28,787,900 | 54,010 | ||||
Sembcorp Industries Ltd. | 19,690,200 | 31,299 | ||||
* | SATS Ltd. | 6,992,400 | 21,273 | |||
244,792 |
Shares | Market Value• ($000) | |||||
South Africa (0.8%) | ||||||
Mr Price Group Ltd. | 4,463,911 | 55,843 | ||||
Tiger Brands Ltd. | 3,843,234 | 51,636 | ||||
107,479 | ||||||
South Korea (6.2%) | ||||||
Samsung Electronics Co. Ltd. | 4,074,051 | 296,939 | ||||
POSCO | 654,918 | 214,037 | ||||
Samsung Electronics Co. Ltd. GDR | 81,190 | 147,934 | ||||
LG Household & Health Care Ltd. | 38,583 | 53,288 | ||||
SK Telecom Co. Ltd. | 157,480 | 42,893 | ||||
KB Financial Group Inc. | 838,595 | 41,283 | ||||
Hana Financial Group Inc. | 984,207 | 40,342 | ||||
Samsung SDS Co. Ltd. | 195,054 | 31,988 | ||||
868,704 | ||||||
Spain (1.2%) | ||||||
* | Banco Santander SA | 19,965,207 | 77,017 | |||
1 | Industria de Diseno Textil SA | 1,352,808 | 48,134 | |||
* | Banco Bilbao Vizcaya Argentaria SA | 7,043,174 | 39,439 | |||
164,590 | ||||||
Sweden (0.9%) | ||||||
1 | Sandvik AB | 2,644,312 | 65,392 | |||
Hexagon AB Class B | 624,417 | 59,644 | ||||
125,036 | ||||||
Switzerland (5.5%) | ||||||
* | LafargeHolcim Ltd. (Registered) | 2,922,655 | 180,350 | |||
Novartis AG (Registered) | 1,909,958 | 162,989 | ||||
ABB Ltd. (Registered) | 3,946,829 | 128,202 | ||||
Cie Financiere Richemont SA (Registered) | 936,630 | 96,123 | ||||
UBS Group AG (Registered) | 4,743,711 | 72,439 | ||||
Swatch Group AG | 166,110 | 50,914 | ||||
* | Lonza Group AG (Registered) | 77,796 | 49,456 | |||
Credit Suisse Group AG (Registered) | 2,824,971 | 29,606 | ||||
3 | Credit Suisse Group AG Rights Exp. 05/06/2021 | 2,824,971 | — | |||
770,079 | ||||||
United Kingdom (16.6%) | ||||||
Anglo American plc | 3,509,466 | 148,803 | ||||
HSBC Holdings plc | 20,770,035 | 129,730 | ||||
Lloyds Banking Group plc | 205,217,206 | 128,688 | ||||
RELX plc | 4,787,799 | 124,222 |
Shares | Market Value• ($000) | |||||
* | Compass Group plc | 4,413,510 | 96,013 | |||
BP plc | 22,823,353 | 95,547 | ||||
IMI plc | 3,782,220 | 83,113 | ||||
Natwest Group plc | 29,745,300 | 80,723 | ||||
Smiths Group plc | 3,569,330 | 80,161 | ||||
Unilever plc | 1,348,998 | 79,020 | ||||
Taylor Wimpey plc | 30,877,011 | 76,597 | ||||
* | Weir Group plc | 2,878,470 | 76,183 | |||
Prudential plc | 3,439,626 | 72,832 | ||||
Berkeley Group Holdings plc | 1,114,986 | 71,257 | ||||
* | Travis Perkins plc | 3,271,883 | 69,479 | |||
Ferguson plc | 525,297 | 66,254 | ||||
Tesco plc | 20,217,813 | 61,716 | ||||
BHP Group plc | 2,039,890 | 61,431 | ||||
Johnson Matthey plc | 1,357,910 | 60,935 | ||||
Victrex plc | 1,813,320 | 58,803 | ||||
Royal Dutch Shell plc Class B | 3,088,180 | 55,259 | ||||
Standard Life Aberdeen plc | 14,386,310 | 55,132 | ||||
Spectris plc | 1,203,170 | 54,046 | ||||
* | easyJet plc | 3,758,421 | 53,734 | |||
Barclays plc | 20,805,443 | 50,369 | ||||
Aggreko plc | 3,984,509 | 47,475 | ||||
* | Glencore plc | 11,474,085 | 46,739 | |||
Diageo plc | 995,160 | 44,674 | ||||
* | Carnival plc | 1,826,700 | 42,702 | |||
Imperial Brands plc | 1,818,229 | 37,898 | ||||
* | Allfunds Group plc | 1,706,858 | 28,688 | |||
Electrocomponents plc | 1,823,960 | 26,845 | ||||
Direct Line Insurance Group plc | 5,486,918 | 21,589 | ||||
Pearson plc | 1,547,379 | 17,752 | ||||
* | Wickes Group plc | 3,666,180 | 12,655 | |||
* | Whitbread plc | 213,697 | 9,581 | |||
2,326,645 | ||||||
United States (5.0%) | ||||||
* | Capri Holdings Ltd. | 2,364,376 | 130,230 | |||
Aon plc Class A | 454,231 | 114,212 | ||||
Medtronic plc | 849,057 | 111,159 |
Shares | Market Value• ($000) | |||||
* | Copa Holdings SA Class A | 1,053,500 | 91,128 | |||
Accenture plc Class A | 302,094 | 87,598 | ||||
JBS SA | 14,951,900 | 82,906 | ||||
RenaissanceRe Holdings Ltd. | 260,654 | 44,001 | ||||
* | TechnipFMC plc | 5,940,838 | 43,962 | |||
705,196 | ||||||
Total Common Stocks (Cost $10,407,770) | 13,211,829 | |||||
Temporary Cash Investments (6.7%) | ||||||
Money Market Fund (6.7%) | ||||||
4,5 | Vanguard Market Liquidity Fund, 0.068% (Cost $944,867) | 9,449,204 | 944,920 | |||
Total Investments (101.0%) (Cost $11,352,637) | 14,156,749 | |||||
Other Assets and Liabilities—Net (-1.0%) | (138,067) | |||||
Net Assets (100%) | 14,018,682 |
Cost is in $000. | |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $124,776,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2021, the aggregate value was $112,253,000, representing 0.8% of net assets. |
3 | Security value determined using significant unobservable inputs. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $133,757,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | June 2021 | 36 | 7,514 | 391 |
MSCI EAFE Index | June 2021 | 1,886 | 212,863 | 1,194 |
MSCI Emerging Market Index | June 2021 | 1,490 | 99,577 | 52 |
1,637 |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $10,407,770) | 13,211,829 |
Affiliated Issuers (Cost $944,867) | 944,920 |
Total Investments in Securities | 14,156,749 |
Investment in Vanguard | 504 |
Foreign Currency, at Value (Cost $1,686) | 1,686 |
Cash Collateral Pledged—Futures Contracts | 19,620 |
Receivables for Investment Securities Sold | 101,567 |
Receivables for Accrued Income | 79,072 |
Receivables for Capital Shares Issued | 12,568 |
Total Assets | 14,371,766 |
Liabilities | |
Due to Custodian | 58,350 |
Payables for Investment Securities Purchased | 135,124 |
Collateral for Securities on Loan | 133,757 |
Payables for Capital Shares Redeemed | 3,359 |
Payables to Investment Advisor | 4,849 |
Payables to Vanguard | 1,209 |
Variation Margin Payable—Futures Contracts | 4,489 |
Deferred Foreign Capital Gains Taxes | 11,947 |
Total Liabilities | 353,084 |
Net Assets | 14,018,682 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 11,221,578 |
Total Distributable Earnings (Loss) | 2,797,104 |
Net Assets | 14,018,682 |
Net Assets | |
Applicable to 321,762,068 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 14,018,682 |
Net Asset Value Per Share | $43.57 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 169,679 |
Interest2 | 331 |
Securities Lending—Net | 279 |
Total Income | 170,289 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 10,183 |
Performance Adjustment | (1,158) |
The Vanguard Group—Note C | |
Management and Administrative | 12,313 |
Marketing and Distribution | 439 |
Custodian Fees | 230 |
Shareholders’ Reports | 66 |
Trustees’ Fees and Expenses | 2 |
Total Expenses | 22,075 |
Net Investment Income | 148,214 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 492,496 |
Futures Contracts | 36,171 |
Foreign Currencies | (3,312) |
Realized Net Gain (Loss) | 525,355 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,3 | 2,795,642 |
Futures Contracts | 8,443 |
Foreign Currencies | 30 |
Change in Unrealized Appreciation (Depreciation) | 2,804,115 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,477,684 |
1 | Dividends are net of foreign withholding taxes of $12,772,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $321,000, $4,000, and ($8,000), respectively. Purchases and sales are for temporary cash investment purposes. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $11,947,000. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 148,214 | 197,302 | |
Realized Net Gain (Loss) | 525,355 | (495,757) | |
Change in Unrealized Appreciation (Depreciation) | 2,804,115 | (550,940) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,477,684 | (849,395) | |
Distributions | |||
Total Distributions | (189,189) | (308,988) | |
Capital Share Transactions | |||
Issued | 2,480,213 | 2,047,882 | |
Issued in Lieu of Cash Distributions | 173,403 | 283,820 | |
Redeemed | (1,331,851) | (2,125,218) | |
Net Increase (Decrease) from Capital Share Transactions | 1,321,765 | 206,484 | |
Total Increase (Decrease) | 4,610,260 | (951,899) | |
Net Assets | |||
Beginning of Period | 9,408,422 | 10,360,321 | |
End of Period | 14,018,682 | 9,408,422 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $32.48 | $36.63 | $35.86 | $39.26 | $32.30 | $33.22 |
Investment Operations | ||||||
Net Investment Income | .4841 | .6841 | 1.1041 | .9501 | .7811 | .721 |
Net Realized and Unrealized Gain (Loss) on Investments | 11.241 | (3.723) | 1.669 | (3.607) | 6.905 | (.979) |
Total from Investment Operations | 11.725 | (3.039) | 2.773 | (2.657) | 7.686 | (.258) |
Distributions | ||||||
Dividends from Net Investment Income | (.635) | (1.111) | (.943) | (.743) | (.726) | (.662) |
Distributions from Realized Capital Gains | — | — | (1.060) | — | — | — |
Total Distributions | (.635) | (1.111) | (2.003) | (.743) | (.726) | (.662) |
Net Asset Value, End of Period | $43.57 | $32.48 | $36.63 | $35.86 | $39.26 | $32.30 |
Total Return2 | 36.32% | -8.69% | 8.48% | -6.95% | 24.33% | -0.67% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $14,019 | $9,408 | $10,360 | $9,524 | $9,964 | $7,873 |
Ratio of Total Expenses to Average Net Assets3 | 0.35% | 0.35% | 0.37% | 0.38% | 0.40% | 0.43% |
Ratio of Net Investment Income to Average Net Assets | 2.31% | 2.05% | 3.15% | 2.41% | 2.21% | 2.29% |
Portfolio Turnover Rate | 20% | 72% | 38% | 28% | 34% | 30% |
The expense ratio and net investment income ratio 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 (0.02%), (0.02%), (0.01%), (0.01%), 0.00%, and 0.03%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 1,555,815 | — | — | 1,555,815 |
Common Stocks—Other | 476,371 | 11,179,643 | — | 11,656,014 |
Temporary Cash Investments | 944,920 | — | — | 944,920 |
Total | 2,977,106 | 11,179,643 | — | 14,156,749 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 1,637 | — | — | 1,637 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount ($000) | |
Tax Cost | 11,353,064 |
Gross Unrealized Appreciation | 3,098,426 |
Gross Unrealized Depreciation | (293,104) |
Net Unrealized Appreciation (Depreciation) | 2,805,322 |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
Shares (000) | Shares (000) | ||
Issued | 60,055 | 64,897 | |
Issued in Lieu of Cash Distributions | 4,428 | 7,593 | |
Redeemed | (32,373) | (65,710) | |
Net Increase (Decrease) in Shares Outstanding | 32,110 | 6,780 |
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All rights reserved.
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• | 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. |
• | 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. |
Six Months Ended April 30, 2021 | |||
Diversified Equity Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,336.60 | $2.03 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.06 | 1.76 |
Vanguard U.S. Growth Fund Investor Shares | 29.8% |
Vanguard WindsorTM Fund Investor Shares | 20.2 |
Vanguard Growth and Income Fund Investor Shares | 20.1 |
Vanguard Windsor II Fund Investor Shares | 15.1 |
Vanguard ExplorerTM Fund Investor Shares | 9.9 |
Vanguard Mid-Cap Growth Fund | 4.9 |
Shares | Market Value• ($000) | |||||
Investment Companies (100.0%) | ||||||
U.S. Stock Funds (100.0%) | ||||||
Vanguard U.S. Growth Fund Investor Shares | 11,797,468 | 817,211 | ||||
Vanguard Windsor Fund Investor Shares | 22,190,661 | 552,547 | ||||
Vanguard Growth and Income Fund Investor Shares | 8,549,908 | 552,153 | ||||
Vanguard Windsor II Fund Investor Shares | 9,207,606 | 415,171 | ||||
Vanguard Explorer Fund Investor Shares | 1,892,786 | 272,183 | ||||
Vanguard Mid-Cap Growth Fund | 3,752,006 | 135,110 | ||||
Total Investment Companies (Cost $1,492,958) | 2,744,375 | |||||
Temporary Cash Investments (0.0%) | ||||||
Money Market Fund (0.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 0.068% (Cost $859) | 8,593 | 859 | |||
Total Investments (100.0%) (Cost $1,493,817) | 2,745,234 | |||||
Other Assets and Liabilities—Net (0.0%) | 171 | |||||
Net Assets (100%) | 2,745,405 |
Cost is in $000. | |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $1,493,817) | 2,745,234 |
Receivables for Capital Shares Issued | 2,372 |
Total Assets | 2,747,606 |
Liabilities | |
Payables for Investment Securities Purchased | 1,392 |
Payables for Capital Shares Redeemed | 809 |
Total Liabilities | 2,201 |
Net Assets | 2,745,405 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 1,391,009 |
Total Distributable Earnings (Loss) | 1,354,396 |
Net Assets | 2,745,405 |
Net Assets | |
Applicable to 53,049,024 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,745,405 |
Net Asset Value Per Share | $51.75 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 10,711 |
Net Investment Income—Note B | 10,711 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 118,184 |
Affiliated Funds Sold | 166 |
Realized Net Gain (Loss) | 118,350 |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | 530,963 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 660,024 |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 10,711 | 21,628 | |
Realized Net Gain (Loss) | 118,350 | 114,940 | |
Change in Unrealized Appreciation (Depreciation) | 530,963 | 122,165 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 660,024 | 258,733 | |
Distributions | |||
Total Distributions | (129,748) | (128,412) | |
Capital Share Transactions | |||
Issued | 388,593 | 285,583 | |
Issued in Lieu of Cash Distributions | 121,380 | 121,112 | |
Redeemed | (213,686) | (406,693) | |
Net Increase (Decrease) from Capital Share Transactions | 296,287 | 2 | |
Total Increase (Decrease) | 826,563 | 130,323 | |
Net Assets | |||
Beginning of Period | 1,918,842 | 1,788,519 | |
End of Period | 2,745,405 | 1,918,842 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $40.98 | $37.95 | $35.88 | $35.57 | $30.76 | $33.15 |
Investment Operations | ||||||
Net Investment Income | .2131 | .4521 | .4551 | .3951 | .4281 | .397 |
Capital Gain Distributions Received | 2.3501 | 1.8661 | 3.0871 | 1.6861 | 1.0641 | .860 |
Net Realized and Unrealized Gain (Loss) on Investments | 10.904 | 3.447 | .575 | .206 | 5.627 | (.836) |
Total from Investment Operations | 13.467 | 5.765 | 4.117 | 2.287 | 7.119 | .421 |
Distributions | ||||||
Dividends from Net Investment Income | (.346) | (.369) | (.383) | (.358) | (.414) | (.362) |
Distributions from Realized Capital Gains | (2.351) | (2.366) | (1.664) | (1.619) | (1.895) | (2.449) |
Total Distributions | (2.697) | (2.735) | (2.047) | (1.977) | (2.309) | (2.811) |
Net Asset Value, End of Period | $51.75 | $40.98 | $37.95 | $35.88 | $35.57 | $30.76 |
Total Return2 | 33.66% | 15.73% | 12.82% | 6.55% | 24.47% | 1.39% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $2,745 | $1,919 | $1,789 | $1,709 | $1,439 | $1,276 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.35% | 0.35% | 0.35% | 0.36% | 0.36% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 0.89% | 1.19% | 1.27% | 1.07% | 1.31% | 1.26% |
Portfolio Turnover Rate | 2% | 14% | 9% | 8% | 5% | 9% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio 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. |
Amount ($000) | |
Tax Cost | 1,493,837 |
Gross Unrealized Appreciation | 1,251,479 |
Gross Unrealized Depreciation | (82) |
Net Unrealized Appreciation (Depreciation) | 1,251,397 |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
Shares (000) | Shares (000) | ||
Issued | 8,047 | 7,639 | |
Issued in Lieu of Cash Distributions | 2,628 | 3,175 | |
Redeemed | (4,451) | (11,117) | |
Net Increase (Decrease) in Shares Outstanding | 6,224 | (303) |
Current Period Transactions | ||||||||
Oct. 31, 2020 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2021 Market Value ($000) | |
Vanguard Explorer Fund | 194,568 | 24,610 | 6,882 | 261 | 59,626 | 277 | 14,718 | 272,183 |
Vanguard Growth and Income Fund | 383,146 | 74,834 | 32 | (1) | 94,206 | 3,470 | 22,749 | 552,153 |
Vanguard Market Liquidity Fund | — | NA1 | NA1 | — | — | — | — | 859 |
Vanguard Mid-Cap Growth Fund | 97,287 | 17,305 | — | — | 20,518 | 166 | 6,731 | 135,110 |
Vanguard U.S. Growth Fund | 565,646 | 132,751 | 7,886 | 37 | 126,663 | 200 | 26,318 | 817,211 |
Vanguard Windsor Fund | 388,336 | 57,713 | 32,475 | (131) | 139,104 | 4,398 | 28,059 | 552,547 |
Vanguard Windsor II Fund | 289,801 | 34,524 | — | — | 90,846 | 2,200 | 19,609 | 415,171 |
Total | 1,918,784 | 341,737 | 47,275 | 166 | 530,963 | 10,711 | 118,184 | 2,745,234 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 23 |
Liquidity Risk Management | 25 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2021 | |||
Emerging Markets Select Stock Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,298.20 | $4.96 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,020.48 | 4.36 |
Communication Services | 8.2% |
Consumer Discretionary | 16.2 |
Consumer Staples | 4.5 |
Energy | 5.5 |
Financials | 22.0 |
Health Care | 3.2 |
Industrials | 4.5 |
Information Technology | 21.1 |
Materials | 9.9 |
Real Estate | 1.5 |
Utilities | 3.1 |
Other | 0.3 |
Shares | Market Value• ($000) | ||
Common Stocks (93.4%) | |||
Brazil (7.6%) | |||
Vale SA Class B ADR | 797,131 | 16,038 | |
Petroleo Brasileiro SA ADR (XNYS) | 1,161,686 | 9,851 | |
Ambev SA | 3,019,766 | 8,306 | |
Cia Energetica de Minas Gerais Preference Shares | 2,906,880 | 7,406 | |
Banco Bradesco SA ADR | 1,610,101 | 7,004 | |
Itau Unibanco Holding SA Preference Shares | 921,200 | 4,669 | |
Itau Unibanco Holding SA ADR | 731,988 | 3,660 | |
Light SA | 887,014 | 2,861 | |
B3 SA - Brasil Bolsa Balcao | 272,900 | 2,587 | |
Banco Bradesco SA Preference Shares | 573,100 | 2,516 | |
Petroleo Brasileiro SA | 591,317 | 2,515 | |
* | Caixa Seguridade Participacoes SA | 1,166,863 | 2,150 |
Cia de Saneamento Basico do Estado de Sao Paulo | 239,500 | 1,886 | |
Petroleo Brasileiro SA ADR | 205,326 | 1,776 | |
Petrobras Distribuidora SA | 219,598 | 910 | |
Raia Drogasil SA | 170,245 | 824 | |
Lojas Renner SA | 96,007 | 714 | |
Magazine Luiza SA | 170,832 | 630 | |
Gerdau SA Preference Shares | 98,500 | 602 | |
Localiza Rent a Car SA | 36,200 | 429 | |
BR Properties SA | 256,629 | 424 | |
Hypera SA | 58,700 | 375 | |
78,133 | |||
Canada (0.9%) | |||
First Quantum Minerals Ltd. | 196,855 | 4,537 | |
Lundin Mining Corp. | 291,648 | 3,524 | |
* | Parex Resources Inc. | 48,312 | 910 |
* | Valeura Energy Inc. | 264,800 | 101 |
9,072 | |||
China (27.8%) | |||
Tencent Holdings Ltd. | 604,272 | 48,204 | |
* | Alibaba Group Holding Ltd. | 1,050,813 | 30,377 |
Ping An Insurance Group Co. of China Ltd. Class H | 1,478,808 | 16,122 | |
* | Alibaba Group Holding Ltd. ADR | 49,727 | 11,484 |
* | Trip.com Group Ltd. ADR | 285,864 | 11,172 |
* | China Merchants Bank Co. Ltd. Class H | 1,307,468 | 10,502 |
China Construction Bank Corp. Class H | 11,578,206 | 9,139 | |
* | Baidu Inc. ADR | 37,999 | 7,992 |
Shares | Market Value• ($000) | ||
Industrial & Commercial Bank of China Ltd. Class H | 9,129,843 | 5,924 | |
*,1 | Meituan Class B | 153,700 | 5,883 |
1 | WuXi AppTec Co. Ltd. Class H | 230,310 | 5,426 |
China Resources Power Holdings Co. Ltd. | 3,570,000 | 4,690 | |
Li Ning Co. Ltd. | 558,160 | 4,530 | |
Geely Automobile Holdings Ltd. | 1,730,000 | 4,506 | |
* | Zai Lab Ltd. ADR | 23,547 | 3,914 |
* | Ping An Bank Co. Ltd. Class A (XSHE) | 1,082,191 | 3,887 |
Shimao Group Holdings Ltd. | 1,215,065 | 3,510 | |
2 | Brilliance China Automotive Holdings Ltd. | 3,486,000 | 3,276 |
China Longyuan Power Group Corp. Ltd. Class H | 2,205,384 | 3,243 | |
1 | Pharmaron Beijing Co. Ltd. Class H | 155,089 | 3,202 |
* | Contemporary Amperex Technology Co. Ltd. Class A | 49,800 | 2,993 |
Anhui Conch Cement Co. Ltd. Class H | 492,000 | 2,937 | |
*,1 | Kuaishou Technology | 85,200 | 2,885 |
* | Tencent Music Entertainment Group ADR | 163,277 | 2,844 |
*,1 | Shimao Services Holdings Ltd. | 1,081,607 | 2,813 |
Dongfeng Motor Group Co. Ltd. Class H | 3,172,000 | 2,757 | |
* | Shanghai International Airport Co. Ltd. Class A | 354,600 | 2,687 |
* | Kingsoft Cloud Holdings Ltd. ADR | 58,055 | 2,550 |
* | Kweichow Moutai Co. Ltd. Class A | 7,600 | 2,348 |
* | Haier Smart Home Co. Ltd. Class H | 509,600 | 2,192 |
* | JD.com Inc. Class A | 55,706 | 2,151 |
Kingboard Holdings Ltd. | 336,117 | 1,985 | |
Shenzhou International Group Holdings Ltd. | 86,300 | 1,899 | |
* | Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A | 60,191 | 1,785 |
* | Gree Electric Appliances Inc. of Zhuhai Class A | 190,300 | 1,756 |
* | Proya Cosmetics Co. Ltd. Class A | 61,600 | 1,734 |
* | Baidu Inc. Class A | 65,001 | 1,722 |
* | Lufax Holding Ltd. ADR | 140,720 | 1,675 |
* | China Tourism Group Duty Free Corp. Ltd. Class A | 33,696 | 1,617 |
* | Ping An Bank Co. Ltd. Class A | 447,783 | 1,608 |
* | Estun Automation Co. Ltd. Class A (XSEC) | 318,800 | 1,580 |
China Oilfield Services Ltd. Class H | 1,714,857 | 1,567 | |
Weichai Power Co. Ltd. Class H | 675,000 | 1,562 | |
China Gas Holdings Ltd. | 426,717 | 1,538 | |
* | Gree Electric Appliances Inc. of Zhuhai Class A (XSHE) | 159,700 | 1,474 |
*,1 | CSC Financial Co. Ltd. Class H | 1,226,052 | 1,428 |
Hengan International Group Co. Ltd. | 221,000 | 1,428 | |
* | Suofeiya Home Collection Co. Ltd. Class A | 315,990 | 1,418 |
ENN Energy Holdings Ltd. | 78,842 | 1,345 | |
* | KE Holdings Inc. ADR | 24,671 | 1,284 |
*,3 | Burning Rock Biotech Ltd. ADR | 41,366 | 1,262 |
China Pacific Insurance Group Co. Ltd. Class H | 346,200 | 1,246 | |
1 | Longfor Group Holdings Ltd. | 191,500 | 1,189 |
* | Grand Baoxin Auto Group Ltd. | 11,434,500 | 1,174 |
* | Midea Group Co. Ltd. Class A | 92,386 | 1,141 |
* | JW Cayman Therapeutics Co. Ltd. | 294,074 | 1,109 |
* | Wuliangye Yibin Co. Ltd. Class A | 23,000 | 1,008 |
*,3 | Yatsen Holding Ltd. ADR | 96,326 | 1,004 |
* | Zijin Mining Group Co. Ltd. Class H | 714,000 | 998 |
*,1 | 3SBio Inc. | 1,033,500 | 977 |
China Dongxiang Group Co. Ltd. | 6,914,000 | 908 | |
* | Bilibili Inc. Class Z | 7,753 | 889 |
* | Dada Nexus Ltd. ADR | 36,257 | 872 |
Shares | Market Value• ($000) | ||
*,1 | China Yangtze Power Co. Ltd. GDR | 26,328 | 869 |
CIFI Holdings Group Co. Ltd. | 912,569 | 815 | |
Glodon Co. Ltd. Class A (XSHE) | 67,700 | 761 | |
*,3 | HUYA Inc. ADR | 40,357 | 711 |
* | Kangji Medical Holdings Ltd. | 424,973 | 708 |
*,1 | Hangzhou Tigermed Consulting Co. Ltd. Class H | 34,800 | 682 |
* | Yihai International Holding Ltd. | 67,032 | 652 |
* | Estun Automation Co. Ltd. Class A | 126,000 | 625 |
* | Kingdee International Software Group Co. Ltd. | 188,000 | 619 |
*,1 | Cheerwin Group Ltd. | 577,246 | 603 |
* | Venustech Group Inc. Class A | 123,400 | 577 |
*,1 | Wuxi Biologics Cayman Inc. | 38,463 | 540 |
* | Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. Class A (XSHE) | 17,500 | 519 |
* | New Oriental Education & Technology Group Inc. ADR | 33,765 | 515 |
* | Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A | 6,600 | 474 |
* | Contemporary Amperex Technology Co. Ltd. Class A (XSHE) | 7,200 | 433 |
* | China Mengniu Dairy Co. Ltd. | 77,000 | 412 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 169,769 | 380 | |
* | Amoy Diagnostics Co. Ltd. Class A | 28,908 | 380 |
* | TAL Education Group ADR | 6,546 | 373 |
* | Wuhan Raycus Fiber Laser Technologies Co. Ltd. Class A (XSHE) | 25,300 | 353 |
* | Wuhan Raycus Fiber Laser Technologies Co. Ltd. Class A | 24,865 | 347 |
* | Zai Lab Ltd. | 2,065 | 343 |
* | Yifeng Pharmacy Chain Co. Ltd. Class A | 23,900 | 331 |
*,1 | Innovent Biologics Inc. | 27,817 | 302 |
* | Trip.com Group Ltd. | 7,600 | 301 |
*,1 | JW Cayman Therapeutics Co. Ltd (XHKG) | 69,500 | 291 |
* | Yifeng Pharmacy Chain Co. Ltd. Class A (XSHG) | 20,900 | 290 |
* | Jinyu Bio-Technology Co. Ltd. Class A | 78,900 | 265 |
* | Suofeiya Home Collection Co. Ltd. Class A (XSHE) | 52,700 | 237 |
* | China National Accord Medicines Corp. Ltd. Class A | 36,600 | 236 |
* | Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | 1,600 | 115 |
Glodon Co. Ltd. Class A | 10,100 | 114 | |
*,1 | Linklogis Inc. Class B | 31,900 | 99 |
* | Amoy Diagnostics Co. Ltd. Class A (XSHE) | 5,100 | 67 |
* | Midea Group Co. Ltd. Class A (XSEC) | 5,200 | 64 |
* | China Yangtze Power Co. Ltd. Class A | 14,700 | 45 |
* | China National Accord Medicines Corp. Ltd. Class A (XSHE) | 6,500 | 42 |
*,1 | New Horizon Health Ltd. | 4,000 | 36 |
* | Shanghai Jahwa United Co. Ltd. Class A | 3,300 | 30 |
*,1 | Venus MedTech Hangzhou Inc. Class H | 2,500 | 22 |
*,2 | Tianhe Chemicals Group Ltd. | 4,142,000 | — |
285,900 | |||
Czech Republic (0.6%) | |||
CEZ AS | 161,149 | 4,488 | |
* | Komercni banka AS | 56,283 | 1,704 |
6,192 | |||
Greece (0.4%) | |||
* | Alpha Services and Holdings SA | 1,992,897 | 3,161 |
* | Hellenic Telecommunications Organization SA | 69,497 | 1,178 |
4,339 | |||
Hong Kong (5.3%) | |||
* | Galaxy Entertainment Group Ltd. | 1,341,000 | 11,772 |
Pacific Basin Shipping Ltd. | 17,752,975 | 6,221 |
Shares | Market Value• ($000) | ||
* | Yue Yuen Industrial Holdings Ltd. | 2,411,000 | 6,034 |
AIA Group Ltd. | 455,485 | 5,781 | |
Lenovo Group Ltd. | 4,226,000 | 5,774 | |
Orient Overseas International Ltd. | 228,369 | 3,694 | |
* | Sands China Ltd. | 486,800 | 2,304 |
VTech Holdings Ltd. | 246,000 | 2,251 | |
* | BeiGene Ltd. ADR | 5,362 | 1,842 |
Precision Tsugami China Corp. Ltd. | 1,196,381 | 1,675 | |
* | Cathay Pacific Airways Ltd. | 1,778,000 | 1,564 |
ASM Pacific Technology Ltd. | 100,000 | 1,510 | |
* | Sun Art Retail Group Ltd. | 1,245,319 | 1,146 |
* | MMG Ltd. | 1,458,500 | 942 |
Minth Group Ltd. | 222,000 | 899 | |
Kerry Properties Ltd. | 237,161 | 799 | |
*,1 | Everest Medicines Ltd. | 52,200 | 461 |
*,1 | ESR Cayman Ltd. | 41,731 | 143 |
54,812 | |||
Hungary (0.8%) | |||
* | OTP Bank Nyrt | 179,057 | 8,049 |
India (7.9%) | |||
Reliance Industries Ltd. | 518,402 | 13,927 | |
Housing Development Finance Corp. Ltd. | 176,377 | 5,744 | |
Aurobindo Pharma Ltd. | 431,526 | 5,709 | |
Shriram Transport Finance Co. Ltd. | 308,778 | 5,585 | |
* | ICICI Bank Ltd. ADR | 316,626 | 5,161 |
Larsen & Toubro Ltd. | 261,858 | 4,727 | |
* | State Bank of India | 929,622 | 4,422 |
* | Axis Bank Ltd. | 443,365 | 4,262 |
UltraTech Cement Ltd. | 48,794 | 4,129 | |
* | ICICI Bank Ltd. | 416,602 | 3,375 |
Bharti Airtel Ltd. | 397,815 | 2,877 | |
* | Tata Consultancy Services Ltd. | 60,030 | 2,457 |
Tube Investments of India Ltd. | 146,348 | 2,435 | |
*,1 | ICICI Prudential Life Insurance Co. Ltd. | 309,550 | 2,178 |
Tech Mahindra Ltd. | 158,118 | 2,046 | |
* | IDFC First Bank Ltd. | 2,090,753 | 1,539 |
Glenmark Pharmaceuticals Ltd. | 174,176 | 1,354 | |
Hindustan Unilever Ltd. | 41,968 | 1,331 | |
*,1 | HDFC Life Insurance Co. Ltd. | 136,348 | 1,222 |
Mahindra & Mahindra Ltd. | 113,517 | 1,150 | |
* | Maruti Suzuki India Ltd. | 12,570 | 1,094 |
* | Kotak Mahindra Bank Ltd. | 43,760 | 1,030 |
*,1 | ICICI Lombard General Insurance Co. Ltd. | 48,579 | 926 |
Dabur India Ltd. | 125,625 | 912 | |
Power Grid Corp. of India Ltd. | 294,270 | 873 | |
Apollo Hospitals Enterprise Ltd. | 12,526 | 540 | |
81,005 | |||
Indonesia (1.5%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 23,127,800 | 6,472 | |
Semen Indonesia Persero Tbk PT | 4,221,300 | 3,042 | |
Bank Mandiri Persero Tbk PT | 6,701,000 | 2,853 | |
Bank Central Asia Tbk PT | 971,660 | 2,151 | |
* | Mitra Adiperkasa Tbk PT | 6,809,100 | 377 |
Shares | Market Value• ($000) | ||
Unilever Indonesia Tbk PT | 404,002 | 168 | |
15,063 | |||
Japan (0.2%) | |||
Murata Manufacturing Co. Ltd. | 14,800 | 1,177 | |
* | Universal Entertainment Corp. | 28,300 | 688 |
Nexon Co. Ltd. | 17,534 | 580 | |
2,445 | |||
Kazakhstan (0.1%) | |||
NAC Kazatomprom JSC GDR | 15,712 | 427 | |
Kenya (0.1%) | |||
* | Equity Group Holdings plc | 2,539,843 | 922 |
Malaysia (0.2%) | |||
Genting Malaysia Bhd. | 2,690,800 | 1,890 | |
Mexico (0.9%) | |||
Grupo Financiero Banorte SAB de CV Class O | 787,238 | 4,479 | |
America Movil SAB de CV Series L | 2,180,959 | 1,523 | |
* | Wal-Mart de Mexico SAB de CV | 330,958 | 1,083 |
Regional SAB de CV | 159,000 | 808 | |
Grupo Mexico SAB de CV Series B | 128,245 | 580 | |
Corp. Inmobiliaria Vesta SAB de CV | 238,557 | 465 | |
8,938 | |||
Netherlands (0.2%) | |||
ASML Holding NV | 3,307 | 2,147 | |
Philippines (0.2%) | |||
Bdo Unibank Inc. | 635,985 | 1,360 | |
Ayala Land Inc. | 1,628,932 | 1,087 | |
2,447 | |||
Poland (0.4%) | |||
*,1 | Allegro.eu SA | 158,980 | 2,435 |
* | KGHM Polska Miedz SA | 29,347 | 1,502 |
3,937 | |||
Portugal (0.1%) | |||
Jeronimo Martins SGPS SA | 30,786 | 562 | |
Romania (0.3%) | |||
Banca Transilvania SA | 4,612,304 | 2,805 | |
Russia (5.0%) | |||
LUKOIL PJSC ADR | 223,507 | 17,107 | |
Sberbank of Russia PJSC ADR (XLON) | 737,410 | 11,629 | |
MMC Norilsk Nickel PJSC ADR | 300,722 | 10,198 | |
Rosneft Oil Co. PJSC (Registered) GDR | 461,483 | 3,183 | |
Sberbank of Russia PJSC | 714,927 | 2,824 | |
Sberbank of Russia PJSC ADR | 132,787 | 2,090 | |
* | Moscow Exchange MICEX-RTS PJSC | 505,080 | 1,188 |
Mobile TeleSystems PJSC ADR | 104,291 | 883 | |
Magnit PJSC GDR (Registered) | 59,788 | 842 | |
* | Inter Rao Ues PJSC | 11,012,918 | 718 |
MMC Norilsk Nickel PJSC | 1,990 | 679 | |
Magnit PJSC | 6,193 | 421 | |
51,762 |
Shares | Market Value• ($000) | ||
Singapore (0.6%) | |||
Wilmar International Ltd. | 1,534,100 | 6,004 | |
* | Ezion Holdings Ltd. Warrants Exp. 4/16/23 | 2,242,476 | — |
6,004 | |||
South Africa (2.5%) | |||
* | Sasol Ltd. | 366,233 | 6,161 |
AngloGold Ashanti Ltd. ADR | 207,457 | 4,269 | |
Naspers Ltd. Class N | 15,710 | 3,575 | |
FirstRand Ltd. | 737,674 | 2,595 | |
Shoprite Holdings Ltd. | 252,689 | 2,518 | |
Reunert Ltd. | 607,574 | 2,040 | |
Gold Fields Ltd. | 121,571 | 1,141 | |
Old Mutual Ltd. (XZIM) | 1,053,013 | 917 | |
Sibanye Stillwater Ltd. | 177,752 | 827 | |
Impala Platinum Holdings Ltd. | 40,652 | 760 | |
Rand Merchant Investment Holdings Ltd. | 357,600 | 726 | |
Harmony Gold Mining Co. Ltd. | 81,497 | 367 | |
25,896 | |||
South Korea (7.2%) | |||
Samsung Electronics Co. Ltd. | 198,267 | 14,451 | |
POSCO | 26,636 | 8,705 | |
SK Hynix Inc. | 71,780 | 8,189 | |
LG Chem Ltd. | 6,385 | 5,330 | |
Samsung SDI Co. Ltd. | 8,320 | 4,856 | |
DB Insurance Co. Ltd. | 106,920 | 4,698 | |
Hyundai Motor Co. | 23,657 | 4,498 | |
Hankook Tire & Technology Co. Ltd. | 95,998 | 4,142 | |
Samsung Electronics Co. Ltd. Preference Shares | 61,678 | 4,049 | |
* | Korea Shipbuilding & Offshore Engineering Co. Ltd. | 24,760 | 3,399 |
Shinhan Financial Group Co. Ltd. | 66,550 | 2,391 | |
Hana Financial Group Inc. | 54,750 | 2,244 | |
NAVER Corp. | 5,632 | 1,814 | |
KB Financial Group Inc. | 32,680 | 1,609 | |
Koh Young Technology Inc. | 62,370 | 1,554 | |
* | Doosan Bobcat Inc. | 31,315 | 1,281 |
*,1,2 | SK IE Technology Co. Ltd. | 3,493 | 330 |
73,540 | |||
Taiwan (13.7%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,089,522 | 65,064 | |
* | MediaTek Inc. | 475,313 | 19,926 |
* | Hon Hai Precision Industry Co. Ltd. | 2,916,685 | 11,991 |
* | ASE Technology Holding Co. Ltd. | 1,711,000 | 7,150 |
Lite-On Technology Corp. | 2,578,000 | 5,842 | |
Globalwafers Co. Ltd. | 126,428 | 3,875 | |
* | Catcher Technology Co. Ltd. | 500,000 | 3,528 |
* | Delta Electronics Inc. | 328,000 | 3,514 |
Compal Electronics Inc. | 3,330,000 | 2,968 | |
* | Formosa Sumco Technology Corp. | 412,780 | 2,827 |
Sino-American Silicon Products Inc. | 358,673 | 2,494 | |
* | Airtac International Group | 56,885 | 2,374 |
* | Accton Technology Corp. | 194,682 | 2,204 |
* | Realtek Semiconductor Corp. | 114,585 | 2,162 |
* | Hiwin Technologies Corp. | 87,000 | 1,313 |
* | Poya International Co. Ltd. | 60,000 | 1,307 |
Shares | Market Value• ($000) | ||
* | E.Sun Financial Holding Co. Ltd. | 1,270,528 | 1,224 |
* | Advantech Co. Ltd. | 66,000 | 835 |
* | President Chain Store Corp. | 62,321 | 602 |
141,200 | |||
Thailand (1.8%) | |||
Siam Commercial Bank PCL NVDR | 1,803,800 | 6,076 | |
Charoen Pokphand Foods PCL | 5,545,400 | 5,161 | |
Kasikornbank PCL NVDR | 696,235 | 2,947 | |
Bangkok Bank PCL NVDR | 469,100 | 1,827 | |
CP ALL PCL | 724,600 | 1,454 | |
Bangkok Bank PCL (Registered) | 215,800 | 840 | |
Central Pattana PCL | 188,600 | 316 | |
PTT PCL | 61,441 | 79 | |
18,700 | |||
Turkey (1.0%) | |||
Ford Otomotiv Sanayi AS | 234,694 | 4,988 | |
Eregli Demir ve Celik Fabrikalari TAS | 857,616 | 1,968 | |
Akbank TAS | 2,608,802 | 1,541 | |
* | Turkiye Petrol Rafinerileri AS | 138,827 | 1,472 |
9,969 | |||
United Arab Emirates (0.4%) | |||
Abu Dhabi Commercial Bank PJSC | 2,436,016 | 4,149 | |
United Kingdom (1.7%) | |||
Standard Chartered plc | 914,940 | 6,564 | |
Antofagasta plc | 233,338 | 6,011 | |
Polymetal International plc | 93,390 | 1,929 | |
Anglo American plc | 21,753 | 922 | |
Ninety One plc | 231,179 | 781 | |
* | Bank of Cyprus Holdings plc | 490,550 | 609 |
Hikma Pharmaceuticals plc | 16,984 | 572 | |
Ferrexpo plc | 74,260 | 450 | |
Commercial International Bank Egypt SAE GDR (Registered) | 1 | — | |
17,838 | |||
United States (3.9%) | |||
* | Cemex SAB de CV ADR | 853,204 | 6,732 |
* | MercadoLibre Inc. | 3,961 | 6,223 |
Cognizant Technology Solutions Corp. Class A | 70,584 | 5,675 | |
* | Flex Ltd. | 241,216 | 4,197 |
* | Sea Ltd. ADR | 13,231 | 3,341 |
* | Azul SA ADR | 127,333 | 2,710 |
*,3 | Ozon Holdings plc ADR | 37,442 | 2,328 |
* | Afya Ltd. Class A | 96,754 | 2,168 |
* | Yandex NV Class A | 32,108 | 2,105 |
* | Copa Holdings SA Class A | 21,213 | 1,835 |
Credicorp Ltd. | 12,519 | 1,495 | |
*,3 | Coupang Inc. | 18,645 | 781 |
* | New Frontier Health Corp. | 29,243 | 326 |
* | Chindata Group Holdings ADR | 11,159 | 147 |
40,063 | |||
Vietnam (0.1%) | |||
*,1 | Vinhomes JSC | 246,940 | 1,064 |
Total Common Stocks (Cost $729,618) | 959,270 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (6.4%) | |||
Money Market Fund (6.4%) | |||
4,5 | Vanguard Market Liquidity Fund, 0.068% (Cost $66,152) | 661,564 | 66,156 |
Total Investments (99.8%) (Cost $795,770) | 1,025,426 | ||
Other Assets and Liabilities—Net (0.2%) | 2,278 | ||
Net Assets (100%) | 1,027,704 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
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, 2021, the aggregate value was $36,006,000, representing 3.5% of net assets. |
2 | Security value determined using significant unobservable inputs. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $4,779,000. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $4,970,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. | |
NVDR—Non-Voting Depository Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI Emerging Markets Index | June 2021 | 741 | 49,521 | (180) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $729,618) | 959,270 |
Affiliated Issuers (Cost $66,152) | 66,156 |
Total Investments in Securities | 1,025,426 |
Investment in Vanguard | 37 |
Cash | 1,727 |
Cash Collateral Pledged—Futures Contracts | 3,188 |
Foreign Currency, at Value (Cost $1,024) | 1,040 |
Receivables for Investment Securities Sold | 5,935 |
Receivables for Accrued Income | 2,388 |
Receivables for Capital Shares Issued | 811 |
Total Assets | 1,040,552 |
Liabilities | |
Payables for Investment Securities Purchased | 2,295 |
Collateral for Securities on Loan | 4,970 |
Payables to Investment Advisor | 1,373 |
Payables for Capital Shares Redeemed | 1,251 |
Payables to Vanguard | 127 |
Variation Margin Payable—Futures Contracts | 863 |
Deferred Foreign Capital Gains Taxes | 1,969 |
Total Liabilities | 12,848 |
Net Assets | 1,027,704 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 776,617 |
Total Distributable Earnings (Loss) | 251,087 |
Net Assets | 1,027,704 |
Net Assets | |
Applicable to 36,072,535 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,027,704 |
Net Asset Value Per Share | $28.49 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 6,663 |
Dividends—Affiliated Issuers | 13 |
Interest—Unaffiliated Issuers | 1 |
Interest—Affiliated Issuers | 28 |
Securities Lending—Net | 31 |
Total Income | 6,736 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 2,318 |
Performance Adjustment | 85 |
The Vanguard Group—Note C | |
Management and Administrative | 1,387 |
Marketing and Distribution | 35 |
Custodian Fees | 108 |
Shareholders’ Reports | 1 |
Trustees’ Fees and Expenses | — |
Total Expenses | 3,934 |
Net Investment Income | 2,802 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 30,046 |
Investment Securities Sold—Affiliated Issuers | 240 |
Futures Contracts | 8,418 |
Forward Currency Contracts | (1) |
Foreign Currencies | (156) |
Realized Net Gain (Loss) | 38,547 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 162,321 |
Investment Securities—Affiliated Issuers | (4) |
Futures Contracts | (487) |
Foreign Currencies | 18 |
Change in Unrealized Appreciation (Depreciation) | 161,848 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 203,197 |
1 | Dividends are net of foreign withholding taxes of $801,000. |
2 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $1,711,000. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 2,802 | 9,363 | |
Realized Net Gain (Loss) | 38,547 | (15,205) | |
Change in Unrealized Appreciation (Depreciation) | 161,848 | 16,970 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 203,197 | 11,128 | |
Distributions | |||
Total Distributions | (8,567) | (15,169) | |
Capital Share Transactions | |||
Issued | 258,927 | 197,586 | |
Issued in Lieu of Cash Distributions | 7,584 | 13,238 | |
Redeemed | (103,733) | (238,050) | |
Net Increase (Decrease) from Capital Share Transactions | 162,778 | (27,226) | |
Total Increase (Decrease) | 357,408 | (31,267) | |
Net Assets | |||
Beginning of Period | 670,296 | 701,563 | |
End of Period | 1,027,704 | 670,296 |
For a Share Outstanding Throughout Each Period | Six Months, Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $22.18 | $21.87 | $19.68 | $22.56 | $18.27 | $16.48 |
Investment Operations | ||||||
Net Investment Income | .0841 | .2981 | .4741,2 | .4141 | .4131 | .234 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.502 | .483 | 2.208 | (2.943) | 4.129 | 1.840 |
Total from Investment Operations | 6.586 | .781 | 2.682 | (2.529) | 4.542 | 2.074 |
Distributions | ||||||
Dividends from Net Investment Income | (.276) | (.471) | (.492) | (.351) | (.252) | (.284) |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.276) | (.471) | (.492) | (.351) | (.252) | (.284) |
Net Asset Value, End of Period | $28.49 | $22.18 | $21.87 | $19.68 | $22.56 | $18.27 |
Total Return3 | 29.82% | 3.51% | 13.96% | -11.39% | 25.28% | 12.95% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,028 | $670 | $702 | $564 | $646 | $339 |
Ratio of Total Expenses to Average Net Assets4 | 0.87% | 0.85% | 0.93% | 0.94% | 0.92% | 0.90% |
Ratio of Net Investment Income to Average Net Assets | 0.62% | 1.43% | 2.25%2 | 1.85% | 2.04% | 1.57% |
Portfolio Turnover Rate | 23% | 52% | 46% | 76% | 44% | 46% |
The expense ratio and net investment income ratio 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 $0.071 and 0.34%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.02%, (0.01%), 0.07%, 0.05%, (0.01%), and (0.03%). |
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. |
B. | The investment advisory firms Pzena Investment Management, LLC, Wellington Management Company llp, Oaktree Capital Management, L.P., and Baillie Gifford Overseas Ltd., 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 Baillie Gifford Overseas Ltd. is subject to quarterly adjustments based on performance relative to the FTSE Emerging Index since July 31, 2018. The basic fees of Oaktree Capital Management, L.P., Pzena Investment Management, LLC, and Wellington Management Company llp are subject to quarterly adjustments based on performance relative to the FTSE Emerging Index for the preceding three years. |
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 and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 136,206 | — | — | 136,206 |
Common Stocks—Other | 72,500 | 746,958 | 3,606 | 823,064 |
Temporary Cash Investments | 66,156 | — | — | 66,156 |
Total | 274,862 | 746,958 | 3,606 | 1,025,426 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 180 | — | — | 180 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E. | At April 30, 2021, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows: |
Statement of Assets and Liabilities | Equity Contracts ($000) | Total ($000) |
Unrealized Depreciation—Futures Contracts1 | 180 | 180 |
1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilites. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | 8,418 | — | 8,418 |
Forward Currency Contracts | — | (1) | (1) |
Realized Net Gain (Loss) on Derivatives | 8,418 | (1) | 8,417 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | (487) | — | (487) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | (487) | — | (487) |
F. | As of April 30, 2021, 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 | 798,515 |
Gross Unrealized Appreciation | 262,761 |
Gross Unrealized Depreciation | (36,030) |
Net Unrealized Appreciation (Depreciation) | 226,731 |
G. | During the six months ended April 30, 2021, the fund purchased $322,400,000 of investment securities and sold $187,172,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
Shares (000) | Shares (000) | ||
Issued | 9,322 | 9,613 | |
Issued in Lieu of Cash Distributions | 294 | 579 | |
Redeemed | (3,766) | (12,051) | |
Net Increase (Decrease) in Shares Outstanding | 5,850 | (1,859) |
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, 2020 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2021 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 1,306 | 15,609 | 17,151 | 240 | (4) | 13 | — | — |
Vanguard Market Liquidity Fund | 37,445 | NA1 | NA1 | — | — | 28 | — | 66,156 |
Total | 38,751 | 240 | (4) | 41 | — | 66,156 |
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, 2021, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 28 |
Liquidity Risk Management | 30 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2021 | |||
Alternative Strategies Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,003.50 | $5.51 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,019.29 | 5.56 |
Long Portfolio1 | Short Portfolio2 | |
Communication Services | 5.2% | 2.3% |
Consumer Discretionary | 9.5 | 10.5 |
Consumer Staples | 2.3 | 2.6 |
Energy | 1.0 | 2.1 |
Financials | 15.5 | 22.4 |
Health Care | 10.5 | 11.0 |
Industrials | 15.8 | 14.9 |
Information Technology | 27.1 | 24.4 |
Materials | 4.1 | 2.2 |
Real Estate | 3.7 | 5.2 |
Utilities | 5.3 | 2.4 |
1 | Percentage of investments in long portfolio. |
2 | Percentage of investments in short portfolio. |
Shares | Market Value• ($000) | ||
Common Stocks—Long Positions (52.5%) | |||
Communication Services (2.7%) | |||
* | Cincinnati Bell Inc. | 153,700 | 2,372 |
1 | Omnicom Group Inc. | 1,966 | 162 |
*,1 | Charter Communications Inc. Class A | 239 | 161 |
*,1 | Liberty Broadband Corp. Class C | 977 | 159 |
*,1 | Alphabet Inc. Class A | 65 | 153 |
1 | Comcast Corp. Class A | 2,709 | 152 |
*,1 | Walt Disney Co. | 786 | 146 |
1 | AT&T Inc. | 4,660 | 146 |
*,1 | Madison Square Garden Sports Corp. | 783 | 145 |
1 | Verizon Communications Inc. | 2,517 | 145 |
1 | Sirius XM Holdings Inc. | 19,632 | 120 |
* | T-Mobile US Inc. | 94 | 12 |
3,873 | |||
Consumer Discretionary (5.0%) | |||
2 | GrandVision NV | 75,476 | 2,441 |
* | Sportsman's Warehouse Holdings Inc. | 60,000 | 1,054 |
*,1 | Amazon.com Inc. | 49 | 170 |
1 | VF Corp. | 1,887 | 166 |
1 | Yum! Brands Inc. | 1,392 | 166 |
1 | Pool Corp. | 381 | 161 |
1 | Genuine Parts Co. | 1,281 | 160 |
1 | TJX Cos. Inc. | 2,255 | 160 |
1 | McDonald's Corp. | 675 | 159 |
*,1 | O'Reilly Automotive Inc. | 285 | 158 |
1 | Dollar General Corp. | 727 | 156 |
1 | Home Depot Inc. | 481 | 156 |
1 | Yum China Holdings Inc. | 2,481 | 156 |
*,1 | AutoZone Inc. | 105 | 154 |
1 | Columbia Sportswear Co. | 1,400 | 153 |
1 | Garmin Ltd. | 1,106 | 152 |
1 | Service Corp. International | 2,831 | 151 |
1 | Tractor Supply Co. | 802 | 151 |
1 | Gentex Corp. | 4,226 | 149 |
1 | Starbucks Corp. | 1,305 | 149 |
Domino's Pizza Inc. | 351 | 148 | |
1 | NIKE Inc. Class B | 1,093 | 145 |
Wendy's Co. | 6,381 | 144 | |
1 | Newell Brands Inc. | 5,319 | 143 |
Shares | Market Value• ($000) | ||
1 | eBay Inc. | 2,323 | 130 |
*,1 | frontdoor Inc. | 1,564 | 84 |
7,116 | |||
Consumer Staples (1.2%) | |||
1 | Archer-Daniels-Midland Co. | 2,644 | 167 |
1 | Brown-Forman Corp. Class B | 2,186 | 167 |
*,1 | Post Holdings Inc. | 1,405 | 160 |
1 | Mondelez International Inc. Class A | 2,586 | 157 |
1 | J M Smucker Co. | 1,189 | 156 |
1 | PepsiCo Inc. | 1,034 | 149 |
1 | Coca-Cola Co. | 2,734 | 147 |
1 | McCormick & Co. Inc. | 1,604 | 145 |
1 | Costco Wholesale Corp. | 386 | 143 |
1 | Altria Group Inc. | 2,972 | 142 |
1 | Kimberly-Clark Corp. | 1,043 | 139 |
Philip Morris International Inc. | 366 | 35 | |
Procter & Gamble Co. | 141 | 19 | |
1,726 | |||
Energy (0.5%) | |||
*,1 | Cheniere Energy Inc. | 2,108 | 164 |
1 | Exxon Mobil Corp. | 2,659 | 152 |
Williams Cos. Inc. | 5,457 | 133 | |
Kinder Morgan Inc. | 7,764 | 132 | |
1 | Cabot Oil & Gas Corp. | 7,697 | 128 |
709 | |||
Financials (8.1%) | |||
Willis Towers Watson plc | 10,150 | 2,628 | |
Waddell & Reed Financial Inc. Class A | 93,599 | 2,338 | |
TCF Financial Corp. | 50,000 | 2,276 | |
* | Watford Holdings Ltd. | 63,339 | 2,208 |
1 | Allstate Corp. | 1,327 | 168 |
1 | Brown & Brown Inc. | 3,099 | 165 |
1 | W R Berkley Corp. | 2,027 | 162 |
*,1 | Alleghany Corp. | 237 | 161 |
1 | Marsh & McLennan Cos. Inc. | 1,189 | 161 |
1 | Intercontinental Exchange Inc. | 1,351 | 159 |
*,1 | Markel Corp. | 134 | 158 |
1 | CNA Financial Corp. | 3,269 | 153 |
*,1 | Berkshire Hathaway Inc. Class B | 553 | 152 |
Arthur J Gallagher & Co. | 1,036 | 150 | |
1 | TFS Financial Corp. | 7,202 | 141 |
AGNC Investment Corp. | 7,713 | 138 | |
1 | Aon plc Class A (XNYS) | 497 | 125 |
Ares Management Corp. Class A | 2,345 | 123 | |
White Mountains Insurance Group Ltd. | 19 | 22 | |
Hanover Insurance Group Inc. | 100 | 14 | |
11,602 | |||
Health Care (5.5%) | |||
* | PPD Inc. | 50,000 | 2,310 |
* | PRA Health Sciences Inc. | 12,000 | 2,003 |
* | Change Healthcare Inc. | 14,000 | 321 |
1 | Cooper Cos. Inc. | 391 | 161 |
*,1 | Henry Schein Inc. | 2,192 | 159 |
1 | West Pharmaceutical Services Inc. | 477 | 157 |
Shares | Market Value• ($000) | ||
1 | Thermo Fisher Scientific Inc. | 328 | 154 |
*,1 | IDEXX Laboratories Inc. | 275 | 151 |
1 | Pfizer Inc. | 3,904 | 151 |
1 | Abbott Laboratories | 1,249 | 150 |
1 | STERIS plc | 712 | 150 |
1 | Chemed Corp. | 312 | 149 |
1 | Danaher Corp. | 587 | 149 |
1 | Baxter International Inc. | 1,732 | 148 |
1 | Cerner Corp. | 1,964 | 147 |
1 | Amgen Inc. | 611 | 146 |
1 | Becton Dickinson and Co. | 587 | 146 |
1 | AmerisourceBergen Corp. Class A | 1,196 | 145 |
1 | CVS Health Corp. | 1,897 | 145 |
1 | Hill-Rom Holdings Inc. | 1,291 | 142 |
1 | Johnson & Johnson | 867 | 141 |
Agilent Technologies Inc. | 1,036 | 138 | |
1 | Merck & Co. Inc. | 1,779 | 133 |
* | QIAGEN NV | 2,655 | 128 |
Zoetis Inc. | 525 | 91 | |
*,1 | DaVita Inc. | 326 | 38 |
Bristol-Myers Squibb Co. | 287 | 18 | |
7,871 | |||
Industrials (8.3%) | |||
* | Fly Leasing Ltd. ADR | 155,000 | 2,622 |
* | Navistar International Corp. | 52,000 | 2,301 |
Aerojet Rocketdyne Holdings Inc. | 43,500 | 2,032 | |
Knoll Inc. | 35,000 | 836 | |
IHS Markit Ltd. | 3,000 | 323 | |
1 | Northrop Grumman Corp. | 451 | 160 |
1 | Illinois Tool Works Inc. | 687 | 158 |
1 | Waste Management Inc. | 1,145 | 158 |
1 | Roper Technologies Inc. | 351 | 157 |
1 | IDEX Corp. | 698 | 156 |
1 | Allegion plc | 1,159 | 156 |
1 | AMETEK Inc. | 1,152 | 155 |
1 | Lennox International Inc. | 461 | 155 |
1 | Republic Services Inc. Class A | 1,447 | 154 |
1 | Fastenal Co. | 2,890 | 151 |
1 | Honeywell International Inc. | 677 | 151 |
1 | Carlisle Cos. Inc. | 785 | 150 |
1 | General Dynamics Corp. | 781 | 149 |
1 | Lockheed Martin Corp. | 391 | 149 |
1 | Norfolk Southern Corp. | 533 | 149 |
1 | AMERCO | 248 | 148 |
1 | Booz Allen Hamilton Holding Corp. Class A | 1,784 | 148 |
1 | Allison Transmission Holdings Inc. | 3,537 | 147 |
*,1 | Dun & Bradstreet Holdings Inc. | 6,205 | 147 |
1 | Hubbell Inc. Class B | 756 | 145 |
Verisk Analytics Inc. Class A | 732 | 138 | |
1 | Expeditors International of Washington Inc. | 1,194 | 131 |
1 | PACCAR Inc. | 1,391 | 125 |
1 | BWX Technologies Inc. | 1,854 | 124 |
*,1 | Ingersoll Rand Inc. | 2,250 | 111 |
Schneider National Inc. Class B | 1,475 | 36 | |
11,822 |
Shares | Market Value• ($000) | ||
Information Technology (14.2%) | |||
FLIR Systems Inc. | 42,500 | 2,549 | |
Perspecta Inc. | 86,443 | 2,530 | |
* | Slack Technologies Inc. Class A | 58,000 | 2,459 |
* | Nuance Communications Inc. | 45,000 | 2,393 |
* | Talend SA ADR | 36,000 | 2,319 |
Maxim Integrated Products Inc. | 24,500 | 2,303 | |
* | Proofpoint Inc. | 6,000 | 1,033 |
1 | Fidelity National Information Services Inc. | 1,060 | 162 |
1 | Intuit Inc. | 394 | 162 |
1 | Switch Inc. Class A | 8,727 | 162 |
*,1 | Adobe Inc. | 312 | 159 |
1 | Oracle Corp. | 2,100 | 159 |
*,1 | VeriSign Inc. | 723 | 158 |
1 | Western Union Co. | 6,145 | 158 |
1 | CDW Corp. | 880 | 157 |
*,1 | Akamai Technologies Inc. | 1,435 | 156 |
1 | Apple Inc. | 1,187 | 156 |
1 | Visa Inc. Class A | 670 | 156 |
1 | Dolby Laboratories Inc. Class A | 1,514 | 154 |
1 | Jack Henry & Associates Inc. | 937 | 153 |
1 | International Business Machines Corp. | 1,077 | 153 |
1 | Juniper Networks Inc. | 6,009 | 153 |
1 | Accenture plc Class A | 527 | 153 |
1 | Microsoft Corp. | 602 | 152 |
1 | Broadridge Financial Solutions Inc. | 951 | 151 |
*,1 | Fiserv Inc. | 1,233 | 148 |
1 | Amphenol Corp. Class A | 2,164 | 146 |
*,1 | Black Knight Inc. | 2,015 | 146 |
1 | Amdocs Ltd. | 1,864 | 143 |
1 | Motorola Solutions Inc. | 757 | 142 |
1 | Automatic Data Processing Inc. | 755 | 141 |
1 | Paychex Inc. | 1,448 | 141 |
*,1 | Synopsys Inc. | 572 | 141 |
1 | Hewlett Packard Enterprise Co. | 8,475 | 136 |
*,1 | Keysight Technologies Inc. | 943 | 136 |
Texas Instruments Inc. | 722 | 130 | |
Broadcom Inc. | 272 | 124 | |
*,1 | ANSYS Inc. | 285 | 104 |
Mastercard Inc. Class A | 183 | 70 | |
NortonLifeLock Inc. | 553 | 12 | |
20,260 | |||
Materials (2.2%) | |||
W R Grace & Co. | 15,000 | 1,031 | |
* | Forterra Inc. | 26,284 | 617 |
1 | Avery Dennison Corp. | 773 | 166 |
1 | Sherwin-Williams Co. | 591 | 162 |
1 | Ball Corp. | 1,706 | 160 |
1 | Packaging Corp. of America | 1,060 | 156 |
1 | Sonoco Products Co. | 2,372 | 155 |
1 | Ecolab Inc. | 669 | 150 |
1 | RPM International Inc. | 1,580 | 150 |
1 | Linde plc | 516 | 147 |
1 | Air Products and Chemicals Inc. | 503 | 145 |
Shares | Market Value• ($000) | ||
Reliance Steel & Aluminum Co. | 301 | 48 | |
3,087 | |||
Real Estate (2.0%) | |||
1 | Sun Communities Inc. | 1,007 | 168 |
1 | Extra Space Storage Inc. | 1,100 | 163 |
1 | UDR Inc. | 3,466 | 161 |
1 | American Homes 4 Rent Class A | 4,330 | 160 |
1 | Essex Property Trust Inc. | 546 | 159 |
1 | Invitation Homes Inc. | 4,541 | 159 |
1 | Alexandria Real Estate Equities Inc. | 871 | 158 |
1 | AvalonBay Communities Inc. | 822 | 158 |
1 | Duke Realty Corp. | 3,389 | 158 |
1 | Life Storage Inc. | 1,643 | 158 |
1 | Camden Property Trust | 1,297 | 156 |
1 | Equity Residential | 2,103 | 156 |
1 | Mid-America Apartment Communities Inc. | 981 | 154 |
1 | CoreSite Realty Corp. | 1,243 | 151 |
1 | Douglas Emmett Inc. | 4,491 | 151 |
Equity Commonwealth | 4,385 | 126 | |
1 | Public Storage | 429 | 121 |
1 | Kilroy Realty Corp. | 1,130 | 77 |
1 | Equinix Inc. | 75 | 54 |
1 | CubeSmart | 1,125 | 48 |
Apartment Investment and Management Co. Class A | 1 | — | |
Apartment Income REIT Corp. | 1 | — | |
2,796 | |||
Utilities (2.8%) | |||
PNM Resources Inc. | 46,000 | 2,271 | |
1 | American Electric Power Co. Inc. | 1,796 | 159 |
1 | NextEra Energy Inc. | 2,018 | 156 |
1 | OGE Energy Corp. | 4,654 | 156 |
1 | IDACORP Inc. | 1,499 | 154 |
1 | Atmos Energy Corp. | 1,478 | 153 |
1 | CMS Energy Corp. | 2,383 | 153 |
1 | Alliant Energy Corp. | 2,685 | 151 |
1 | Duke Energy Corp. | 1,498 | 151 |
1 | Exelon Corp. | 3,227 | 145 |
1 | Southern Co. | 2,019 | 134 |
1 | Avangrid Inc. | 2,317 | 118 |
Dominion Energy Inc. | 319 | 26 | |
3,927 | |||
Total Common Stocks—Long Positions (Cost $63,838) | 74,789 | ||
Temporary Cash Investments (54.3%) | |||
Money Market Fund (34.1%) | |||
3 | Vanguard Market Liquidity Fund, 0.068% | 484,992 | 48,499 |
Face Amount ($000) | |||
U.S. Government and Agency Obligations (20.2%) | |||
4 | U.S. Treasury Bill, 0.020%, 8/26/21 | 13,200 | 13,199 |
Face Amount ($000) | Market Value• ($000) | ||
4,5 | U.S. Treasury Bill, 0.020%, 8/26/21 | 15,600 | 15,599 |
28,798 | |||
Total Temporary Cash Investments (Cost $77,291) | 77,297 | ||
Common Stocks Sold Short (-20.1%) | |||
Communication Services (-0.5%) | |||
* | Liberty Media Group Class A | (3,680) | (152) |
* | Roku Inc. | (428) | (147) |
* | Zillow Group Inc. Class A | (971) | (130) |
* | Live Nation Entertainment Inc. | (1,361) | (111) |
* | TripAdvisor Inc. | (2,141) | (101) |
(641) | |||
Consumer Discretionary (-2.1%) | |||
* | Carvana Co. Class A | (558) | (159) |
Darden Restaurants Inc. | (1,075) | (158) | |
* | Ulta Beauty Inc. | (467) | (154) |
* | Tesla Inc. | (216) | (153) |
MGM Resorts International | (3,753) | (153) | |
* | Terminix Global Holdings Inc. | (3,002) | (153) |
* | L Brands Inc. | (2,292) | (151) |
* | Capri Holdings Ltd. | (2,722) | (150) |
Thor Industries Inc. | (1,053) | (149) | |
Tempur Sealy International Inc. | (3,806) | (145) | |
Royal Caribbean Cruises Ltd. | (1,656) | (144) | |
Qurate Retail Inc. Series A | (12,009) | (143) | |
* | Wynn Resorts Ltd. | (1,109) | (142) |
* | Planet Fitness Inc. Class A | (1,687) | (142) |
* | Etsy Inc. | (697) | (139) |
* | PVH Corp. | (1,223) | (138) |
* | Carnival Corp. | (4,871) | (136) |
* | Wayfair Inc. Class A | (448) | (132) |
* | Nordstrom Inc. | (3,414) | (125) |
* | Aptiv plc | (762) | (110) |
* | Peloton Interactive Inc. Class A | (656) | (65) |
* | Ollie's Bargain Outlet Holdings Inc. | (420) | (39) |
* | Norwegian Cruise Line Holdings Ltd. | (1,104) | (34) |
(3,014) | |||
Consumer Staples (-0.5%) | |||
* | US Foods Holding Corp. | (3,954) | (164) |
* | Coty Inc. Class A | (15,768) | (158) |
Spectrum Brands Holdings Inc. | (1,728) | (152) | |
Nu Skin Enterprises Inc. Class A | (2,765) | (146) | |
* | Beyond Meat Inc. | (994) | (131) |
(751) | |||
Energy (-0.4%) | |||
Diamondback Energy Inc. | (1,968) | (161) | |
Targa Resources Corp. | (4,353) | (151) | |
APA Corp. | (6,465) | (129) | |
Antero Midstream Corp. | (14,316) | (124) | |
Continental Resources Inc. | (1,586) | (43) | |
(608) |
Face Amount ($000) | Market Value• ($000) | ||
Financials (-4.5%) | |||
Aon plc Class A | (10,961) | (2,756) | |
Huntington Bancshares Inc. | (150,140) | (2,300) | |
S&P Global Inc. | (851) | (333) | |
LPL Financial Holdings Inc. | (1,027) | (161) | |
OneMain Holdings Inc. | (2,817) | (160) | |
Discover Financial Services | (1,405) | (160) | |
* | Brighthouse Financial Inc. | (3,295) | (154) |
Wintrust Financial Corp. | (1,842) | (142) | |
Rocket Cos. Inc. Class A | (5,599) | (126) | |
* | GoHealth Inc. Class A | (6,049) | (72) |
American Financial Group Inc. | (376) | (46) | |
(6,410) | |||
Health Care (-2.2%) | |||
* | ICON plc | (4,950) | (1,074) |
* | Moderna Inc. | (923) | (165) |
* | Acadia Healthcare Co. Inc. | (2,626) | (160) |
* | Catalent Inc. | (1,417) | (159) |
* | Exelixis Inc. | (6,420) | (158) |
* | Align Technology Inc. | (262) | (156) |
* | Horizon Therapeutics plc | (1,611) | (153) |
* | BioMarin Pharmaceutical Inc. | (1,922) | (150) |
* | Exact Sciences Corp. | (1,124) | (148) |
* | Sage Therapeutics Inc. | (1,859) | (146) |
* | Biogen Inc. | (521) | (139) |
* | Reata Pharmaceuticals Inc. Class A | (1,299) | (132) |
* | Iovance Biotherapeutics Inc. | (3,748) | (118) |
* | Adaptive Biotechnologies Corp. | (2,742) | (114) |
* | Quidel Corp. | (1,011) | (106) |
* | Bluebird Bio Inc. | (2,509) | (75) |
(3,153) | |||
Industrials (-3.0%) | |||
* | Teledyne Technologies Inc. | (3,051) | (1,366) |
Herman Miller Inc. | (11,200) | (465) | |
* | XPO Logistics Inc. | (1,204) | (168) |
Vertiv Holdings Co. Class A | (7,346) | (167) | |
* | Univar Solutions Inc. | (7,043) | (164) |
Macquarie Infrastructure Corp. | (4,768) | (159) | |
* | Clean Harbors Inc. | (1,736) | (154) |
* | JetBlue Airways Corp. | (7,154) | (146) |
* | Copa Holdings SA Class A | (1,672) | (145) |
* | Uber Technologies Inc. | (2,632) | (144) |
* | Delta Air Lines Inc. | (3,066) | (144) |
* | United Rentals Inc. | (439) | (140) |
Spirit AeroSystems Holdings Inc. Class A | (2,984) | (136) | |
Air Lease Corp. Class A | (2,885) | (135) | |
* | United Airlines Holdings Inc. | (2,472) | (134) |
* | Lyft Inc. Class A | (2,257) | (126) |
* | Kirby Corp. | (1,970) | (126) |
* | American Airlines Group Inc. | (5,409) | (117) |
* | Ingersoll Rand Inc. | (2,250) | (111) |
(4,247) |
Face Amount ($000) | Market Value• ($000) | ||
Information Technology (-4.9%) | |||
Analog Devices Inc. | (15,435) | (2,364) | |
* | salesforce.com Inc. | (4,501) | (1,037) |
DXC Technology Co. | (4,888) | (161) | |
* | Cloudflare Inc. Class A | (1,848) | (157) |
* | CommScope Holding Co. Inc. | (9,479) | (156) |
* | Dynatrace Inc. | (2,952) | (154) |
Alliance Data Systems Corp. | (1,305) | (154) | |
* | Zscaler Inc. | (808) | (152) |
* | Western Digital Corp. | (2,129) | (150) |
* | Nutanix Inc. Class A | (5,514) | (149) |
* | Trade Desk Inc. Class A | (205) | (149) |
* | Bill.com Holdings Inc. | (964) | (149) |
* | Teradata Corp. | (2,974) | (147) |
* | Zoom Video Communications Inc. Class A | (446) | (143) |
* | Anaplan Inc. | (2,365) | (141) |
* | 2U Inc. | (3,577) | (140) |
* | Datadog Inc. Class A | (1,623) | (139) |
* | BigCommerce Holdings Inc. Series 1 | (2,322) | (139) |
* | Crowdstrike Holdings Inc. Class A | (661) | (138) |
* | Twilio Inc. Class A | (372) | (137) |
* | ON Semiconductor Corp. | (3,465) | (135) |
* | Elastic NV | (1,087) | (131) |
* | Pure Storage Inc. Class A | (6,410) | (130) |
* | Enphase Energy Inc. | (919) | (128) |
Ubiquiti Inc. | (438) | (125) | |
* | Alteryx Inc. Class A | (1,353) | (111) |
* | Fastly Inc. Class A Class A | (1,557) | (99) |
* | MongoDB Inc. | (159) | (47) |
* | Square Inc. Class A | (61) | (15) |
(6,977) | |||
Materials (-0.4%) | |||
Olin Corp. | (3,774) | (162) | |
Mosaic Co. | (4,510) | (159) | |
Freeport-McMoRan Inc. | (3,794) | (143) | |
Valvoline Inc. | (2,656) | (83) | |
LyondellBasell Industries NV Class A | (682) | (71) | |
(618) | |||
Real Estate (-1.1%) | |||
Gaming and Leisure Properties Inc. | (3,491) | (162) | |
Welltower Inc. | (2,124) | (159) | |
Outfront Media Inc. | (6,529) | (159) | |
Apple Hospitality REIT Inc. | (9,949) | (158) | |
Simon Property Group Inc. | (1,287) | (157) | |
Omega Healthcare Investors Inc. | (4,116) | (156) | |
Ventas Inc. | (2,758) | (153) | |
EPR Properties | (3,136) | (150) | |
Park Hotels & Resorts Inc. | (6,566) | (147) | |
Kimco Realty Corp. | (4,639) | (97) | |
(1,498) | |||
Utilities (-0.5%) | |||
FirstEnergy Corp. | (4,310) | (163) | |
AES Corp. | (5,272) | (147) | |
* | PG&E Corp. | (12,338) | (140) |
Face Amount ($000) | Market Value• ($000) | ||
Vistra Corp. | (7,312) | (123) | |
NRG Energy Inc. | (3,426) | (123) | |
(696) | |||
Total Common Stocks Sold Short (Proceeds $23,235) | (28,613) | ||
Other Assets and Other Liabilities—Net (13.3%) | 18,866 | ||
Net Assets (100%) | 142,339 | ||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
* | Non-income-producing security. |
1 | Long security positions with a value of $24,302,000 are held in a segregated account at the fund's custodian bank and pledged to a broker-dealer as collateral for the fund's obligation to return borrowed securities. For so long as such obligations continue, the fund’s access to these assets is subject to authorization from the broker-dealer. |
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, 2021, the aggregate value was $2,441,000, representing 1.7% of net assets. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Securities with a value of $9,329,000 have been segregated as initial margin for open futures contracts. |
5 | Security is owned by the Vanguard ASF Portfolio, which is a wholly owned subsidiary of the Alternative Strategies Fund. |
ADR—American Depositary Receipt. | |
REIT—Real Estate Investment Trust. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | June 2021 | 144 | 19,013 | (334) |
2-Year U.S. Treasury Note | June 2021 | 560 | 123,624 | (106) |
5-Year U.S. Treasury Note | June 2021 | 236 | 29,249 | (244) |
Amsterdam Exchanges Index | May 2021 | 41 | 6,941 | (13) |
CAC 40 Index | May 2021 | 95 | 7,100 | 121 |
Copper1 | May 2021 | 11 | 2,704 | 192 |
Corn1 | July 2021 | 103 | 3,467 | 484 |
FTSE MIB Index | June 2021 | 48 | 6,899 | (152) |
Gasoline RBOB1 | May 2021 | 27 | 2,355 | 55 |
Lean Hogs1 | June 2021 | 70 | 3,072 | 315 |
LME Aluminum1 | May 2021 | 15 | 896 | 22 |
LME Lead1 | May 2021 | 17 | 911 | 63 |
LME Nickel1 | May 2021 | 9 | 953 | 83 |
LME Tin1 | June 2021 | 23 | 3,414 | 327 |
LME Tin1 | May 2021 | 13 | 1,994 | 211 |
LME Zinc1 | May 2021 | 12 | 875 | 28 |
Low Sulphur Gas Oil1 | June 2021 | 14 | 749 | 5 |
MSCI Singapore Index | May 2021 | 251 | 6,823 | 15 |
OMX Stockholm 30 Index | May 2021 | 265 | 6,946 | (8) |
S&P TSX 60 Index | June 2021 | 39 | 7,205 | 140 |
Soybean1 | July 2021 | 43 | 3,299 | 284 |
Soybean Oil1 | July 2021 | 90 | 3,369 | 552 |
Sugar #111 | June 2021 | 127 | 2,415 | 145 |
WTI Crude Oil1 | May 2021 | 48 | 3,052 | 37 |
2,222 |
Futures Contracts (continued) | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Short Futures Contracts | ||||
Cocoa1 | July 2021 | (30) | (715) | 28 |
Coffee1 | July 2021 | (60) | (3,183) | (169) |
Copper1 | May 2021 | (11) | (2,704) | (182) |
Cotton No.21 | July 2021 | (70) | (3,083) | (91) |
DAX Index | June 2021 | (16) | (7,294) | (35) |
FTSE Taiwan Index | May 2021 | (110) | (6,808) | (2) |
IBEX 35 Index | May 2021 | (68) | (7,200) | (245) |
KOSPI 200 Index | June 2021 | (75) | (7,115) | (354) |
Live Cattle1 | May 2021 | (41) | (2,739) | 236 |
Live Cattle1 | June 2021 | (32) | (1,492) | 56 |
LME Aluminum1 | May 2021 | (15) | (896) | (70) |
LME Lead1 | June 2021 | (61) | (3,279) | (225) |
LME Lead1 | May 2021 | (17) | (911) | (80) |
LME Nickel1 | May 2021 | (9) | (953) | (76) |
LME Nickel1 | June 2021 | (8) | (848) | (76) |
LME Tin1 | May 2021 | (13) | (1,994) | (341) |
LME Zinc1 | May 2021 | (12) | (875) | (30) |
LME Zinc1 | June 2021 | (11) | (803) | (27) |
Natural Gas1 | May 2021 | (85) | (2,491) | (222) |
S&P 500 E-Mini Index | June 2021 | (35) | (7,305) | (423) |
Soybean Meal1 | July 2021 | (56) | (2,386) | (122) |
Topix Index | June 2021 | (39) | (6,785) | (40) |
Wheat1 | July 2021 | (69) | (2,427) | (319) |
Wheat1 | July 2021 | (23) | (845) | (95) |
(2,904) | ||||
(682) |
1 | Security is owned by the Vanguard ASF Portfolio, which is a wholly owned subsidiary of the Alternative Strategies Fund. |
Forward Currency Contracts | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
Morgan Stanley Capital Services Inc. | 5/11/21 | CAD | 11,111 | USD | 8,838 | 202 | — |
Standard Chartered Bank | 5/11/21 | CAD | 2,970 | USD | 2,367 | 49 | — |
Royal Bank of Canada | 5/11/21 | GBP | 6,407 | USD | 8,850 | — | (1) |
BNP Paribas | 5/11/21 | INR | 258,203 | USD | 3,503 | — | (24) |
Morgan Stanley Capital Services Inc. | 5/11/21 | INR | 335 | USD | 5 | — | — |
State Street Bank & Trust Co. | 5/11/21 | MXN | 72,350 | USD | 3,553 | 14 | — |
BNP Paribas | 5/11/21 | NOK | 75,464 | USD | 8,857 | 209 | — |
Forward Currency Contracts (continued) | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
BNP Paribas | 5/11/21 | RUB | 267,042 | USD | 3,492 | 53 | — |
Morgan Stanley Capital Services Inc. | 5/11/21 | TRY | 29,266 | USD | 3,512 | 3 | — |
Standard Chartered Bank | 5/11/21 | ZAR | 52,215 | USD | 3,547 | 48 | — |
BNP Paribas | 5/11/21 | USD | 2,359 | CAD | 2,970 | — | (57) |
Bank of America, N.A. | 5/11/21 | USD | 8,781 | CHF | 8,281 | — | (289) |
State Street Bank & Trust Co. | 5/11/21 | USD | 41 | CHF | 39 | — | (1) |
Royal Bank of Canada | 5/11/21 | USD | 3,544 | CLP | 2,540,337 | — | (30) |
Morgan Stanley Capital Services Inc. | 5/11/21 | USD | 3,515 | CZK | 77,946 | — | (109) |
Standard Chartered Bank | 5/11/21 | USD | 29 | CZK | 641 | — | (1) |
Morgan Stanley Capital Services Inc. | 5/11/21 | USD | 8,800 | EUR | 7,476 | — | (190) |
State Street Bank & Trust Co. | 5/11/21 | USD | 2,337 | EUR | 1,990 | — | (56) |
Goldman Sachs & Co. | 5/11/21 | USD | 54 | EUR | 46 | — | (1) |
Bank of America, N.A. | 5/11/21 | USD | 3,541 | ILS | 11,792 | — | (88) |
Royal Bank of Canada | 5/11/21 | USD | 8,765 | JPY | 969,084 | — | (102) |
Standard Chartered Bank | 5/11/21 | USD | 70 | JPY | 7,765 | — | (1) |
Morgan Stanley Capital Services Inc. | 5/11/21 | USD | 3,532 | PLN | 13,802 | — | (108) |
Bank of America, N.A. | 5/11/21 | USD | 39 | PLN | 151 | — | (1) |
Morgan Stanley Capital Services Inc. | 5/11/21 | USD | 3,549 | TWD | 100,896 | — | (63) |
578 | (1,122) |
CAD—Canadian dollar. |
CHF—Swiss franc. |
CLP—Chilean peso. |
CZK—Czech koruna. |
EUR—euro. |
GBP—British pound. |
ILS—Israeli shekel. |
INR—Indian rupee. |
JPY—Japanese yen. |
MXN—Mexican peso. |
NOK—Norwegian krone. |
PLN—Polish zloty. |
RUB—Russian ruble. |
TRY—Turkish lira. |
TWD—Taiwanese dollar. |
USD—U.S. dollar. |
ZAR—South African rand. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, | |
Long Positions, at Value | |
Unaffiliated Issuers (Cost $92,636) | 103,587 |
Affiliated Issuers (Cost $48,493) | 48,499 |
Total Long Positions | 152,086 |
Investment in Vanguard | 6 |
Cash | 2,201 |
Cash Segregated for Short Positions | 16,022 |
Cash Collateral Pledged—Futures Contracts | 605 |
Cash Collateral Pledged—Forward Currency Contracts | 490 |
Receivables for Investment Securities Sold | 22 |
Receivables for Accrued Income | 186 |
Receivables for Capital Shares Issued | 58 |
Variation Margin Receivable—Futures Contracts | 62 |
Unrealized Appreciation—Forward Currency Contracts | 578 |
Total Assets | 172,316 |
Liabilities | |
Securities Sold Short, at Value (Proceeds $23,235) | 28,613 |
Payables for Investment Securities Purchased | 3 |
Payables to Vanguard | 53 |
Unrealized Depreciation—Forward Currency Contracts | 1,122 |
Accrued Dividend Expense on Securities Sold Short | 123 |
Payables to Broker-Dealer | 63 |
Total Liabilities | 29,977 |
Net Assets | 142,339 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 176,012 |
Total Distributable Earnings (Loss) | (33,673) |
Net Assets | 142,339 |
Net Assets | |
Applicable to 8,335,764 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 142,339 |
Net Asset Value Per Share | $17.08 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 983 |
Interest2 | 54 |
Total Income | 1,037 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 100 |
Management and Administrative | 232 |
Marketing and Distribution | 10 |
Custodian Fees | 23 |
Shareholders’ Reports | 2 |
Trustees’ Fees and Expenses—Note B | 6 |
Dividend Expense on Securities Sold Short | 353 |
Borrowing Expense on Securities Sold Short | 458 |
Total Expenses | 1,184 |
Net Investment Income (Loss) | (147) |
Realized Net Gain (Loss) | |
Investment Securities Sold—Long Positions2 | 16,111 |
Investment Securities Sold—Short Positions | (14,611) |
Futures Contracts | 2,181 |
Forward Currency Contracts | 4,909 |
Foreign Currencies | 71 |
Realized Net Gain (Loss) | 8,661 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Long Positions2 | (2,705) |
Investment Securities—Short Positions | (5,051) |
Futures Contracts | (2,626) |
Forward Currency Contracts | 407 |
Foreign Currencies | (86) |
Change in Unrealized Appreciation (Depreciation) | (10,061) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,547) |
1 | Dividends are net of foreign withholding taxes of $16,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $49,000, $10,000, and ($11,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | (147) | 433 | |
Realized Net Gain (Loss) | 8,661 | (72,780) | |
Change in Unrealized Appreciation (Depreciation) | (10,061) | (2,150) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,547) | (74,497) | |
Distributions | |||
Total Distributions | (2,074) | (17,409) | |
Capital Share Transactions | |||
Issued | 21,101 | 318,091 | |
Issued in Lieu of Cash Distributions | 2,047 | 17,310 | |
Redeemed | (183,555) | (234,534) | |
Net Increase (Decrease) from Capital Share Transactions | (160,407) | 100,867 | |
Total Increase (Decrease) | (164,028) | 8,961 | |
Net Assets | |||
Beginning of Period | 306,367 | 297,406 | |
End of Period | 142,339 | 306,367 |
For a Share Outstanding Throughout Each Period | Six Months, Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $17.15 | $22.23 | $20.41 | $20.46 | $21.28 | $20.23 |
Investment Operations | ||||||
Net Investment Income (Loss) | (.012)1 | .0231 | .2521 | .1971 | .1531 | .106 |
Net Realized and Unrealized Gain (Loss) on Investments | .070 | (3.835) | 1.828 | (.143) | (.139) | 1.039 |
Total from Investment Operations | .058 | (3.812) | 2.080 | .054 | .014 | 1.145 |
Distributions | ||||||
Dividends from Net Investment Income | (.128) | (.385) | (.260) | (.104) | (.093) | (.095) |
Distributions from Realized Capital Gains | — | (.883) | — | — | (.741) | — |
Total Distributions | (.128) | (1.268) | (.260) | (.104) | (.834) | (.095) |
Net Asset Value, End of Period | $17.08 | $17.15 | $22.23 | $20.41 | $20.46 | $21.28 |
Total Return2 | 0.35% | -18.17% | 10.30% | 0.27% | 0.11% | 5.68% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $142 | $306 | $297 | $320 | $292 | $235 |
Ratio of Total Expenses to Average Net Assets | ||||||
Based on Total Expenses3,4 | 1.11% | 0.78% | 0.79%5 | 0.66%5 | 0.79% | 0.71% |
Net of Dividend and Borrowing Expense on Securities Sold Short | 0.35% | 0.34% | 0.38%5 | 0.33%5 | 0.35% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 0.12% | 0.12% | 1.18% | 0.93% | 0.75% | 0.50% |
Portfolio Turnover Rate | 181% | 173% | 157% | 131% | 125% | 120% |
The expense ratio and net investment income ratio 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 dividend expense on securities sold short of 0.33%, 0.44%, 0.41%, 0.33%, 0.44% and 0.35%, respectively. |
4 | Includes borrowing expense on securities sold short of 0.43%, 0.00%, 0.00%, 0.00%, 0.00%, and 0.00%, respectively. |
5 | The ratio of total expenses to average net assets for the periods ended 2019 and 2018, net of reduction from custody fee offset arrangement for total expenses and net of dividend and borrowing expense on securities sold short, was 0.74% and 0.33%, and 0.65% and 0.32%, respectively. |
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. |
Assets Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Liabilities Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Net Amount Receivable (Payable) ($000) | Amounts Not Offset in the Consolidated Statement of Assets and Liabilities | Net Exposure3 (Not Less Than $0) ($000) | ||
Collateral Pledged2 ($000) | Collateral Received2 ($000) | |||||
Derivatives Subject to Offsetting Arrangements, by Counterparty | ||||||
Bank of America, N.A. | — | (378) | (378) | — | — | — |
BNP Paribas | 262 | (81) | 181 | — | 176 | 5 |
Goldman, Sachs & Co. | — | (1) | (1) | — | — | — |
Morgan Stanley Capital Services Inc. | 205 | (470) | (265) | 490 | — | — |
Royal Bank of Canada | — | (133) | (133) | — | — | — |
Standard Chartered Bank | 97 | (2) | 95 | — | — | 95 |
State Street Bank & Trust Co. | 14 | (57) | (43) | — | — | — |
Exchange-Traded Futures Contracts | 62 | — | 62 | 9,934 | — | — |
Total | 640 | (1,122) | (482) | 10,424 | 176 | 100 |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 72,348 | 2,441 | — | 74,789 |
Temporary Cash Investments | 48,499 | 28,798 | — | 77,297 |
Total | 120,847 | 31,239 | — | 152,086 |
Liabilities | ||||
Common Stocks | 28,613 | — | — | 28,613 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 3,399 | — | — | 3,399 |
Forward Currency Contracts | — | 578 | — | 578 |
Total | 3,399 | 578 | — | 3,977 |
Liabilities | ||||
Futures Contracts1 | 4,081 | — | — | 4,081 |
Forward Currency Contracts | — | 1,122 | — | 1,122 |
Total | 4,081 | 1,122 | — | 5,203 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
D. | At April 30, 2021, the fair values of derivatives were reflected in the Consolidated Schedule of Investments and Consolidated Statement of Assets and Liabilities as follows: |
Consolidated Statement of Assets and Liabilities Caption | Equity Contracts ($000) | Commodity Contracts ($000) | Interest Rate Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Appreciation—Futures Contracts1 | 275 | 3,124 | — | — | 3,399 |
Unrealized Appreciation—Forward Currency Contracts | — | — | — | 578 | 578 |
Total Assets | 275 | 3,124 | — | 578 | 3,977 |
Unrealized Depreciation—Futures Contracts1 | 1,271 | 2,126 | 684 | — | 4,081 |
Unrealized Depreciation—Forward Currency Contracts | — | — | — | 1,122 | 1,122 |
Total Liabilities | 1,271 | 2,126 | 684 | 1,122 | 5,203 |
1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Commodity Contracts ($000) | Interest Rate Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | (2,027) | 5,360 | (1,152) | — | 2,181 |
Forward Currency Contracts | — | — | — | 4,909 | 4,909 |
Realized Net Gain (Loss) on Derivatives | (2,027) | 5,360 | (1,152) | 4,909 | 7,090 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||||
Futures Contracts | (2,583) | 108 | (151) | — | (2,626) |
Forward Currency Contracts | — | — | — | 407 | 407 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | (2,583) | 108 | (151) | 407 | (2,219) |
E. | As of April 30, 2021, 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 | 141,334 |
Gross Unrealized Appreciation | 16,589 |
Gross Unrealized Depreciation | (12,441) |
Net Unrealized Appreciation (Depreciation) | 4,148 |
F. | During the six months ended April 30, 2021, the fund purchased $79,951,000 of investment securities and sold $115,663,000 of investment securities, other than temporary cash investments. The proceeds of short sales and the cost of purchases to cover short sales were $57,302,000 and $28,153,000, respectively. |
G. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
Shares (000) | Shares (000) | ||
Issued | 1,242 | 16,660 | |
Issued in Lieu of Cash Distributions | 122 | 829 | |
Redeemed | (10,893) | (13,003) | |
Net Increase (Decrease) in Shares Outstanding | (9,529) | 4,486 |
H. | Management has determined that no material events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 16 |
Liquidity Risk Management | 18 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2021 | |||
Commodity Strategy Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,292.40 | $1.14 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.80 | 1.00 |
U.S. Government Securities | 100.0% |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (69.6%) | ||||||
U.S. Government Securities (69.6%) | ||||||
U.S. Treasury Inflation Indexed Bonds | 0.625% | 7/15/21 | 33,768 | 34,185 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 1/15/22 | 41,383 | 42,211 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 4/15/22 | 40,374 | 41,408 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 7/15/22 | 39,538 | 41,051 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 1/15/23 | 48,831 | 51,150 | ||
U.S. Treasury Inflation Indexed Bonds | 0.625% | 4/15/23 | 40,972 | 43,552 | ||
U.S. Treasury Inflation Indexed Bonds | 0.375% | 7/15/23 | 47,631 | 50,980 | ||
U.S. Treasury Inflation Indexed Bonds | 0.625% | 1/15/24 | 45,964 | 49,935 | ||
U.S. Treasury Inflation Indexed Bonds | 0.500% | 4/15/24 | 25,707 | 27,957 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 7/15/24 | 41,902 | 45,529 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 10/15/24 | 35,282 | 38,419 | ||
U.S. Treasury Inflation Indexed Bonds | 0.250% | 1/15/25 | 42,991 | 47,022 | ||
U.S. Treasury Inflation Indexed Bonds | 2.375% | 1/15/25 | 26,919 | 31,677 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 4/15/25 | 29,485 | 32,152 | ||
U.S. Treasury Inflation Indexed Bonds | 0.375% | 7/15/25 | 41,070 | 45,581 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 10/15/25 | 35,202 | 38,673 | ||
U.S. Treasury Inflation Indexed Bonds | 0.625% | 1/15/26 | 35,670 | 40,045 | ||
U.S. Treasury Inflation Indexed Bonds | 2.000% | 1/15/26 | 19,171 | 22,831 | ||
U.S. Treasury Inflation Indexed Bonds | 0.125% | 4/15/26 | 19,766 | 21,675 | ||
Total U.S. Government and Agency Obligations (Cost $730,534) | 746,033 | |||||
Shares | ||||||
Temporary Cash Investments (33.5%) | ||||||
Money Market Fund (12.7%) | ||||||
1 | Vanguard Market Liquidity Fund | 0.068% | 1,368,251 | 136,825 | ||
Face Amount ($000) | ||||||
U.S. Government and Agency Obligations (20.8%) | ||||||
2 | U.S. Treasury Bill | 0.036% | 6/3/21 | 16,200 | 16,200 | |
2 | U.S. Treasury Bill | 0.010% | 6/17/21 | 6,200 | 6,200 | |
2 | U.S. Treasury Bill | 0.017% | 6/24/21 | 10,100 | 10,100 | |
2 | U.S. Treasury Bill | 0.020% | 7/1/21 | 4,600 | 4,600 |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
2 | U.S. Treasury Bill | 0.005%–0.008% | 7/29/21 | 186,000 | 185,993 | |
223,093 | ||||||
Total Temporary Cash Investments (Cost $359,916) | 359,918 | |||||
Total Investments (103.1%) (Cost $1,090,450) | 1,105,951 | |||||
Other Assets and Liabilities—Net (-3.1%) | (33,606) | |||||
Net Assets (100%) | 1,072,345 | |||||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
2 | Security is owned by the Vanguard CSF Portfolio, which is a wholly owned subsidiary of the Commodity Strategy Fund. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Bloomberg Commodity Index2 | 5/25/21 | BARC | 100,000 | (0.100) | 964 | — |
Bloomberg Commodity Index2 | 5/25/21 | MLI | 114,000 | (0.060) | 993 | — |
Bloomberg Commodity Index 2 Month Forward2 | 5/25/21 | BARC | 115,000 | (0.110) | 575 | — |
Bloomberg Commodity Index 3 Month Forward2 | 5/25/21 | GSI | 20,000 | (0.120) | 85 | — |
BofA Merrill Lynch Commodity MLCILP3E Excess Return Strategy2,3 | 5/25/21 | MLI | 20,000 | (0.140) | 71 | — |
BofA Merrill Lynch MLBXAKSV Excess Return Index2,3 | 5/25/21 | MLI | 83,000 | (0.170) | 1,057 | — |
Credit Suisse Custom 34 - 01E Forward Excess Return2,3 | 5/25/21 | CSFBI | 280,000 | (0.160) | 1,176 | — |
Over-the-Counter Total Return Swaps (continued) | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Floating Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Goldman Sachs Commodity i-Select Strategy 11292,3 | 5/25/21 | GSI | 280,000 | (0.120) | 1,139 | — |
Modified Strategy DBS18 on the Bloomberg Commodity Index2,3 | 5/25/21 | GSI | 52,000 | (0.120) | 300 | — |
6,360 | — |
1 | Based on 1M USD London Interbank Offered Rate (LIBOR) as of the most recent payment date. Floating interest payment received/paid monthly. |
2 | Security is owned by the subsidiary. |
3 | Information on the components of the reference entity is available on www.vanguard.com |
1M—1-month. | |
BARC—Barclays Bank plc. | |
CSFBI—Credit Suisse. | |
GSI—Goldman Sachs International. | |
MLI—Merrill Lynch International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $953,635) | 969,126 |
Affiliated Issuers (Cost $136,815) | 136,825 |
Total Investments in Securities | 1,105,951 |
Investment in Vanguard | 34 |
Receivables for Investment Securities Sold | 18,312 |
Receivables for Accrued Income | 736 |
Receivables for Capital Shares Issued | 3,387 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 6,360 |
Total Assets | 1,134,780 |
Liabilities | |
Due to Custodian | 17,902 |
Payables for Investment Securities Purchased | 42,490 |
Payables for Capital Shares Redeemed | 1,950 |
Payables to Vanguard | 93 |
Total Liabilities | 62,435 |
Net Assets | 1,072,345 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 900,260 |
Total Distributable Earnings (Loss) | 172,085 |
Net Assets | 1,072,345 |
Net Assets | |
Applicable to 34,296,569 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,072,345 |
Net Asset Value Per Share | $31.27 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Interest1 | 4,441 |
Total Income | 4,441 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 57 |
Management and Administrative | 601 |
Marketing and Distribution | 15 |
Custodian Fees | 2 |
Shareholders’ Reports | 3 |
Trustees’ Fees and Expenses—Note B | 6 |
Total Expenses | 684 |
Net Investment Income | 3,757 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | 41 |
Swap Contracts | 138,327 |
Realized Net Gain (Loss) | 138,368 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 10,721 |
Swap Contracts | 15,308 |
Change in Unrealized Appreciation (Depreciation) | 26,029 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 168,154 |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $39,000, $0, and $0, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 3,757 | 3,256 | |
Realized Net Gain (Loss) | 138,368 | 2,360 | |
Change in Unrealized Appreciation (Depreciation) | 26,029 | (3,292) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 168,154 | 2,324 | |
Distributions | |||
Total Distributions | (2,526) | (1,458) | |
Capital Share Transactions | |||
Issued | 618,664 | 310,858 | |
Issued in Lieu of Cash Distributions | 2,099 | 1,346 | |
Redeemed | (86,760) | (147,645) | |
Net Increase (Decrease) from Capital Share Transactions | 534,003 | 164,559 | |
Total Increase (Decrease) | 699,631 | 165,425 | |
Net Assets | |||
Beginning of Period | 372,714 | 207,289 | |
End of Period | 1,072,345 | 372,714 |
For a Share Outstanding Throughout Each Period | Six Months, Ended April 30, 2021 | Year Ended October 31, 2020 | June 25, 20191 to October 31, 2019 |
Net Asset Value, Beginning of Period | $24.32 | $24.83 | $25.00 |
Investment Operations | |||
Net Investment Income2 | .156 | .265 | .143 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.928 | (.620) | (.313) |
Total from Investment Operations | 7.084 | (.355) | (.170) |
Distributions | |||
Dividends from Net Investment Income | (.134) | (.155) | — |
Distributions from Realized Capital Gains | — | — | — |
Total Distributions | (.134) | (.155) | — |
Net Asset Value, End of Period | $31.27 | $24.32 | $24.83 |
Total Return3 | 29.24% | -1.45% | -0.68% |
Ratios/Supplemental Data | |||
Net Assets, End of Period (Millions) | $1,072 | $373 | $207 |
Ratio of Total Expenses to Average Net Assets | 0.20% | 0.20% | 0.20%4 |
Ratio of Net Investment Income to Average Net Assets | 1.12% | 1.15% | 1.65%4 |
Portfolio Turnover Rate | 8% | 38% | 7% |
The expense ratio and net investment income ratio 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. |
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. |
Assets Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Liabilities Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Net Amount Receivable (Payable) ($000) | Amounts Not Offset in the Consolidated Statement of Assets and Liabilities | Net Exposure3 (Not Less Than $0) ($000) | ||
Collateral Pledged2 ($000) | Collateral Received2 ($000) | |||||
Derivatives Subject to Offsetting Arrangements, by Counterparty | ||||||
Barclays Bank plc | 1,539 | — | 1,539 | — | 2,158 | — |
Credit Suisse | 1,176 | — | 1,176 | — | 940 | 236 |
Goldman Sachs International | 1,524 | — | 1,524 | — | 1,406 | 118 |
Merrill Lynch International | 2,121 | — | 2,121 | — | 2,900 | — |
Total | 6,360 | — | 6,360 | — | 7,404 | 354 |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
U.S. Government and Agency Obligations | — | 746,033 | — | 746,033 |
Temporary Cash Investments | 136,825 | 223,093 | — | 359,918 |
Total | 136,825 | 969,126 | — | 1,105,951 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 6,360 | — | 6,360 |
D. | As of April 30, 2021, 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 | 1,090,792 |
Gross Unrealized Appreciation | 15,513 |
Gross Unrealized Depreciation | (354) |
Net Unrealized Appreciation (Depreciation) | 15,159 |
E. | During the six months ended April 30, 2021, the fund purchased $469,310,000 of investment securities and sold $35,460,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
Shares (000) | Shares (000) | ||
Issued | 21,941 | 13,549 | |
Issued in Lieu of Cash Distributions | 81 | 53 | |
Redeemed | (3,049) | (6,625) | |
Net Increase (Decrease) in Shares Outstanding | 18,973 | 6,977 |
G. | Management has determined that no events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(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. In 2020, a third-party service provider began performing certain administrative and accounting services for Vanguard International Value Fund, Vanguard Diversified Equity Fund, and Vanguard Commodity Strategy Fund. There were no other significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications field herewith. |
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 TRUSTEES’ EQUITY FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 18, 2021
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 TRUSTEES’ EQUITY FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 18, 2021
VANGUARD TRUSTEES’ EQUITY FUND | ||
BY: | /s/ JOHN BENDL* | |
JOHN BENDL | ||
CHIEF FINANCIAL OFFICER |
Date: June 18, 2021
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on December 18, 2020 (see File Number 33-64845), Incorporated by Reference