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, 2022—April 30, 2023
Item 1: Reports to Shareholders
![](https://capedge.com/proxy/N-CSRS/0001104659-23-075854/tm2312905d6intervalfunq4i001.jpg)
• | 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, 2023 | |||
International Value Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,227.30 | $2.15 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.86 | 1.96 |
United Kingdom | 14.5% |
Japan | 11.5 |
France | 8.6 |
China | 8.6 |
Germany | 7.8 |
Switzerland | 7.4 |
Hong Kong | 6.2 |
Netherlands | 4.7 |
United States | 3.5 |
India | 3.3 |
Brazil | 2.9 |
Canada | 2.5 |
South Korea | 2.5 |
Singapore | 2.5 |
Ireland | 2.3 |
Indonesia | 2.0 |
Finland | 1.5 |
Taiwan | 1.5 |
Denmark | 1.1 |
Other | 5.1 |
Shares | Market Value• ($000) | |||||
Common Stocks (94.8%) | ||||||
Australia (0.5%) | ||||||
National Australia Bank Ltd. | 1,805,110 | 34,750 | ||||
QBE Insurance Group Ltd. | 1,765,216 | 18,051 | ||||
Adbri Ltd. | 13,390,194 | 14,138 | ||||
66,939 | ||||||
Brazil (2.8%) | ||||||
1 | Banco Bradesco SA ADR | 28,827,441 | 80,717 | |||
Ambev SA ADR | 28,812,100 | 80,674 | ||||
Petroleo Brasileiro SA Preference Shares | 14,889,100 | 70,747 | ||||
Gerdau SA Preference Shares | 11,975,460 | 60,456 | ||||
Itau Unibanco Holding SA Preference Shares | 10,767,700 | 55,956 | ||||
Petroleo Brasileiro SA ADR | 3,298,068 | 35,025 | ||||
383,575 | ||||||
Canada (2.4%) | ||||||
Suncor Energy Inc. | 3,256,143 | 101,949 | ||||
Nutrien Ltd. | 921,608 | 63,935 | ||||
Saputo Inc. | 1,844,149 | 47,749 | ||||
Stella-Jones Inc. | 886,900 | 34,708 | ||||
Bank of Nova Scotia | 647,507 | 32,322 | ||||
Alimentation Couche-Tard Inc. | 581,100 | 29,002 | ||||
North West Co. Inc. | 721,411 | 21,160 | ||||
330,825 | ||||||
China (8.1%) | ||||||
* | Alibaba Group Holding Ltd. | 24,296,700 | 256,904 | |||
Tencent Holdings Ltd. | 3,408,400 | 151,388 | ||||
* | Baidu Inc. ADR | 1,084,345 | 130,783 | |||
Ping An Insurance Group Co. of China Ltd. Class H | 12,665,500 | 92,401 | ||||
ENN Energy Holdings Ltd. | 6,020,300 | 82,548 | ||||
Li Ning Co. Ltd. | 10,047,000 | 71,852 |
Shares | Market Value• ($000) | |||||
Sungrow Power Supply Co. Ltd. Class A | 3,593,953 | 58,702 | ||||
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 27,180,000 | 46,380 | ||||
* | Alibaba Group Holding Ltd. ADR | 505,386 | 42,801 | |||
China Longyuan Power Group Corp. Ltd. Class H | 39,737,000 | 41,703 | ||||
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 5,994,938 | 33,183 | ||||
Autohome Inc. ADR | 1,112,003 | 32,971 | ||||
Hengan International Group Co. Ltd. | 6,509,000 | 29,072 | ||||
* | Trip.com Group Ltd. ADR | 603,258 | 21,422 | |||
* | Weibo Corp. ADR | 1,156,924 | 20,258 | |||
1,112,368 | ||||||
Denmark (1.0%) | ||||||
Carlsberg A/S Class B | 498,698 | 82,533 | ||||
* | Vestas Wind Systems A/S | 1,969,298 | 54,492 | |||
137,025 | ||||||
Egypt (0.2%) | ||||||
Commercial International Bank Egypt SAE (Registered) GDR | 24,883,498 | 30,155 | ||||
Finland (1.5%) | ||||||
Nokia OYJ | 20,115,499 | 85,112 | ||||
Sampo OYJ Class A | 1,571,237 | 79,685 | ||||
Nokian Renkaat OYJ | 3,679,749 | 35,849 | ||||
200,646 | ||||||
France (8.2%) | ||||||
Airbus SE | 1,443,615 | 202,156 | ||||
TotalEnergies SE | 2,560,102 | 163,590 | ||||
Air Liquide SA | 861,015 | 154,888 | ||||
Engie SA | 8,409,958 | 134,595 | ||||
Pernod Ricard SA | 416,762 | 96,251 | ||||
Thales SA | 567,781 | 86,645 | ||||
Bureau Veritas SA | 2,962,936 | 85,437 | ||||
Legrand SA | 842,306 | 79,728 |
Shares | Market Value• ($000) | |||||
* | Accor SA | 1,231,616 | 43,694 | |||
Bouygues SA | 952,603 | 34,884 | ||||
Teleperformance | 158,348 | 31,647 | ||||
Safran SA | 41,270 | 6,418 | ||||
ArcelorMittal SA | 9,943 | 283 | ||||
1,120,216 | ||||||
Germany (7.3%) | ||||||
*,2 | Covestro AG | 2,414,776 | 105,937 | |||
1 | Fresenius Medical Care AG & Co. KGaA | 1,804,580 | 87,565 | |||
Bayerische Motoren Werke AG | 769,720 | 86,274 | ||||
Henkel AG & Co. KGaA Preference Shares | 965,047 | 78,023 | ||||
* | Merck KGaA | 388,917 | 69,759 | |||
2 | Siemens Healthineers AG | 1,029,148 | 64,142 | |||
BASF SE | 1,236,750 | 63,970 | ||||
Henkel AG & Co. KGaA | 850,710 | 62,914 | ||||
MTU Aero Engines AG | 238,991 | 62,752 | ||||
Jungheinrich AG Preference Shares | 1,517,112 | 58,803 | ||||
Continental AG | 830,599 | 58,281 | ||||
SAP SE | 416,800 | 56,400 | ||||
Infineon Technologies AG | 1,365,548 | 49,729 | ||||
FUCHS PETROLUB SE Preference Shares | 1,217,817 | 48,112 | ||||
Fresenius SE & Co. KGaA | 1,196,842 | 34,677 | ||||
Porsche Automobil Holding SE Preference Shares | 387,480 | 21,581 | ||||
1,008,919 | ||||||
Hong Kong (5.8%) | ||||||
AIA Group Ltd. | 20,315,000 | 221,171 | ||||
* | Sands China Ltd. | 44,212,800 | 158,345 | |||
* | Melco Resorts & Entertainment Ltd. ADR | 9,936,595 | 135,535 | |||
* | Galaxy Entertainment Group Ltd. | 7,365,000 | 52,419 | |||
Jardine Matheson Holdings Ltd. | 1,058,200 | 51,155 | ||||
Xinyi Glass Holdings Ltd. | 18,622,000 | 34,070 | ||||
Sun Hung Kai Properties Ltd. | 2,353,500 | 32,769 | ||||
2 | ESR Group Ltd. | 18,994,000 | 29,690 | |||
Yue Yuen Industrial Holdings Ltd. | 15,119,000 | 22,753 | ||||
Hongkong Land Holdings Ltd. | 4,853,100 | 21,598 | ||||
2 | WH Group Ltd. | 38,320,243 | 21,334 | |||
CK Asset Holdings Ltd. | 3,309,500 | 19,570 | ||||
800,409 | ||||||
India (3.1%) | ||||||
ICICI Bank Ltd. ADR | 4,855,982 | 110,474 | ||||
Housing Development Finance Corp. Ltd. | 2,826,390 | 96,300 |
Shares | Market Value• ($000) | |||||
Adani Ports & Special Economic Zone Ltd. | 9,657,767 | 80,736 | ||||
Zee Entertainment Enterprises Ltd. | 26,516,183 | 63,997 | ||||
UPL Ltd. | 5,264,954 | 47,783 | ||||
GAIL India Ltd. | 25,743,969 | 33,839 | ||||
433,129 | ||||||
Indonesia (1.9%) | ||||||
Astra International Tbk. PT | 212,092,100 | 97,831 | ||||
Bank Mandiri Persero Tbk. PT | 219,186,600 | 77,483 | ||||
Telkom Indonesia Persero Tbk. PT ADR | 1,567,073 | 45,132 | ||||
Telkom Indonesia Persero Tbk. PT | 72,464,900 | 20,989 | ||||
Selamat Sempurna Tbk. PT | 164,317,700 | 17,424 | ||||
258,859 | ||||||
Ireland (2.2%) | ||||||
* | Ryanair Holdings plc ADR | 1,645,813 | 157,323 | |||
* | ICON plc | 379,267 | 73,081 | |||
CRH plc | 1,444,361 | 69,696 | ||||
300,100 | ||||||
Israel (0.1%) | ||||||
* | Check Point Software Technologies Ltd. | 94,500 | 12,036 | |||
Italy (0.5%) | ||||||
Brembo SpA | 4,611,463 | 67,761 | ||||
Japan (10.9%) | ||||||
Mitsubishi Electric Corp. | 8,708,800 | 107,979 | ||||
Nomura Research Institute Ltd. | 3,252,200 | 81,824 | ||||
Nidec Corp. | 1,597,400 | 79,043 | ||||
Daikin Industries Ltd. | 431,600 | 78,392 | ||||
Nitto Denko Corp. | 1,141,400 | 73,790 | ||||
Denso Corp. | 1,143,900 | 69,050 | ||||
Disco Corp. | 574,600 | 65,421 | ||||
Nihon Kohden Corp. | 2,341,300 | 64,781 | ||||
Daiwa Securities Group Inc. | 13,582,400 | 63,086 | ||||
Toyota Motor Corp. | 4,531,400 | 62,216 | ||||
Hoya Corp. | 561,100 | 58,834 | ||||
ITOCHU Corp. | 1,694,900 | 56,228 | ||||
Olympus Corp. | 2,885,400 | 50,513 | ||||
* | Renesas Electronics Corp. | 3,300,300 | 43,011 | |||
Koito Manufacturing Co. Ltd. | 2,197,100 | 42,500 | ||||
Bandai Namco Holdings Inc. | 1,853,700 | 42,108 | ||||
Kansai Electric Power Co. Inc. | 3,780,000 | 40,804 | ||||
Ain Holdings Inc. | 978,500 | 40,690 | ||||
Kubota Corp. | 2,542,300 | 38,523 |
Shares | Market Value• ($000) | |||||
Suzuki Motor Corp. | 1,063,800 | 37,093 | ||||
Shimano Inc. | 227,500 | 35,183 | ||||
Tokyo Electron Ltd. | 294,600 | 33,733 | ||||
Subaru Corp. | 1,876,700 | 30,631 | ||||
Murata Manufacturing Co. Ltd. | 538,700 | 30,564 | ||||
Komatsu Ltd. | 1,217,700 | 30,284 | ||||
Seria Co. Ltd. | 1,604,500 | 28,523 | ||||
Nitori Holdings Co. Ltd. | 220,100 | 28,027 | ||||
Nomura Holdings Inc. | 6,973,200 | 24,998 | ||||
Omron Corp. | 418,210 | 24,532 | ||||
Daito Trust Construction Co. Ltd. | 160,200 | 15,183 | ||||
FANUC Corp. | 414,500 | 13,998 | ||||
1,491,542 | ||||||
Mexico (0.7%) | ||||||
Grupo Financiero Banorte SAB de CV | 11,158,700 | 96,496 | ||||
Netherlands (4.4%) | ||||||
Universal Music Group NV | 3,647,420 | 79,687 | ||||
* | Prosus NV | 979,743 | 73,318 | |||
Wolters Kluwer NV | 478,838 | 63,443 | ||||
Akzo Nobel NV | 749,534 | 62,180 | ||||
Coca-Cola Europacific Partners plc | 937,292 | 59,941 | ||||
Aegon NV | 12,779,402 | 58,309 | ||||
ASM International NV | 123,687 | 44,904 | ||||
Koninklijke Vopak NV | 1,109,090 | 42,377 | ||||
IMCD NV | 278,274 | 41,891 | ||||
SBM Offshore NV | 2,514,230 | 35,538 | ||||
* | AerCap Holdings NV | 530,331 | 29,889 | |||
1,2 | ABN AMRO Bank NV | 979,952 | 15,706 | |||
607,183 | ||||||
Norway (0.3%) | ||||||
Bakkafrost P/F | 563,950 | 41,116 | ||||
Panama (0.6%) | ||||||
Copa Holdings SA Class A | 960,553 | 86,757 | ||||
Philippines (0.2%) | ||||||
Puregold Price Club Inc. | 43,303,300 | 25,528 | ||||
Singapore (2.3%) | ||||||
DBS Group Holdings Ltd. | 3,424,300 | 84,614 | ||||
United Overseas Bank Ltd. | 3,637,800 | 77,260 | ||||
Venture Corp. Ltd. | 4,408,600 | 56,323 | ||||
Sembcorp Industries Ltd. | 16,821,100 | 54,124 | ||||
Singapore Telecommunications Ltd. | 24,198,000 | 46,372 | ||||
318,693 | ||||||
South Africa (0.2%) | ||||||
Mr Price Group Ltd. | 3,450,376 | 28,387 |
Shares | Market Value• ($000) | |||||
South Korea (2.4%) | ||||||
Samsung Electronics Co. Ltd. | 2,350,492 | 115,654 | ||||
2 | Samsung Electronics Co. Ltd. GDR | 91,270 | 113,065 | |||
SK Hynix Inc. | 1,261,059 | 84,848 | ||||
* | SK Square Co. Ltd. | 309,162 | 9,853 | |||
323,420 | ||||||
Spain (0.7%) | ||||||
Industria de Diseno Textil SA | 1,442,044 | 49,573 | ||||
* | Amadeus IT Group SA | 632,608 | 44,463 | |||
94,036 | ||||||
Sweden (0.4%) | ||||||
Assa Abloy AB Class B | 2,366,316 | 56,380 | ||||
Switzerland (7.0%) | ||||||
* | Holcim AG | 3,225,590 | 213,123 | |||
Roche Holding AG | 517,506 | 162,052 | ||||
Novartis AG (Registered) | 1,416,867 | 144,937 | ||||
Cie Financiere Richemont SA (Registered) Class A | 791,223 | 130,790 | ||||
ABB Ltd. (Registered) | 2,373,145 | 85,608 | ||||
* | DSM-Firmenich AG | 561,313 | 73,454 | |||
Adecco Group AG (Registered) | 1,927,278 | 66,292 | ||||
Swatch Group AG | 129,390 | 44,389 | ||||
UBS Group AG (Registered) | 1,776,239 | 36,151 | ||||
956,796 | ||||||
Taiwan (1.4%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 7,612,000 | 124,651 | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 706,735 | 59,578 | ||||
King Slide Works Co. Ltd. | 1,116,000 | 15,031 | ||||
199,260 | ||||||
United Kingdom (13.8%) | ||||||
BP plc | 35,134,891 | 235,720 | ||||
RELX plc | 5,282,048 | 175,991 | ||||
Compass Group plc | 4,774,264 | 125,950 | ||||
Shell plc | 4,072,312 | 125,135 | ||||
HSBC Holdings plc | 16,867,261 | 121,568 | ||||
Unilever plc | 2,049,036 | 114,095 | ||||
Berkeley Group Holdings plc | 1,961,528 | 109,771 | ||||
Smiths Group plc | 4,258,600 | 90,047 | ||||
HSBC Holdings plc (XHKG) | 12,406,800 | 89,001 | ||||
Anglo American plc | 2,811,541 | 86,635 | ||||
Smith & Nephew plc | 5,239,233 | 86,289 | ||||
IMI plc | 4,226,990 | 84,810 | ||||
Taylor Wimpey plc | 36,946,877 | 59,627 | ||||
Weir Group plc | 2,454,760 | 56,811 | ||||
Travis Perkins plc | 4,509,463 | 54,423 |
Shares | Market Value• ($000) | |||||
Prudential plc | 3,449,386 | 52,779 | ||||
Victrex plc | 2,370,200 | 50,085 | ||||
Spectris plc | 985,380 | 46,665 | ||||
RS Group plc | 3,183,555 | 36,936 | ||||
Renishaw plc | 650,357 | 29,500 | ||||
Whitbread plc | 624,929 | 25,580 | ||||
Lloyds Banking Group plc | 29,916,882 | 18,175 | ||||
* | easyJet plc | 2,644,536 | 16,591 | |||
Direct Line Insurance Group plc | 220,462 | 477 | ||||
1,892,661 | ||||||
United States (3.3%) | ||||||
Aon plc Class A | 416,187 | 135,336 | ||||
RenaissanceRe Holdings Ltd. | 383,167 | 82,538 | ||||
Linde plc | 194,733 | 71,550 | ||||
Accenture plc Class A | 237,551 | 66,583 | ||||
NXP Semiconductors NV | 392,463 | 64,262 | ||||
* | Capri Holdings Ltd. | 750,819 | 31,159 | |||
451,428 | ||||||
Vietnam (0.6%) | ||||||
Vietnam Dairy Products JSC | 16,906,900 | 50,541 | ||||
Phu Nhuan Jewelry JSC | 9,392,300 | 30,930 | ||||
81,471 | ||||||
Total Common Stocks (Cost $11,675,071) | 13,014,116 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (4.7%) | ||||||
Money Market Fund (4.7%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 4.853% (Cost $646,654) | 6,468,378 | 646,773 | |||
Total Investments (99.5%) (Cost $12,321,725) | 13,660,889 | |||||
Other Assets and Liabilities—Net (0.5%) | 72,132 | |||||
Net Assets (100%) | 13,733,021 |
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 $61,851,000. |
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, 2023, the aggregate value was $349,874,000, representing 2.5% of net assets. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $65,946,000 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 | ||||
MSCI EAFE Index | June 2023 | 1,976 | 212,380 | 9,026 |
MSCI Emerging Market Index | June 2023 | 1,733 | 85,281 | 707 |
9,733 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $11,675,071) | 13,014,116 |
Affiliated Issuers (Cost $646,654) | 646,773 |
Total Investments in Securities | 13,660,889 |
Investment in Vanguard | 482 |
Foreign Currency, at Value (Cost $14,808) | 14,859 |
Cash Collateral Pledged—Futures Contracts | 8,632 |
Receivables for Investment Securities Sold | 60,153 |
Receivables for Accrued Income | 99,238 |
Receivables for Capital Shares Issued | 10,661 |
Variation Margin Receivable—Futures Contracts | 211 |
Total Assets | 13,855,125 |
Liabilities | |
Due to Custodian | 931 |
Payables for Investment Securities Purchased | 35,616 |
Collateral for Securities on Loan | 65,946 |
Payables for Capital Shares Redeemed | 5,834 |
Payables to Investment Advisor | 5,704 |
Payables to Vanguard | 1,705 |
Deferred Foreign Capital Gains Taxes | 6,368 |
Total Liabilities | 122,104 |
Net Assets | 13,733,021 |
1 Includes $61,851,000 of securities on loan. | |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 12,480,733 |
Total Distributable Earnings (Loss) | 1,252,288 |
Net Assets | 13,733,021 |
Net Assets | |
Applicable to 348,900,363 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,733,021 |
Net Asset Value Per Share | $39.36 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 204,055 |
Interest2 | 10,811 |
Securities Lending—Net | 472 |
Total Income | 215,338 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 10,787 |
Performance Adjustment | 410 |
The Vanguard Group—Note C | |
Management and Administrative | 12,869 |
Marketing and Distribution | 402 |
Custodian Fees | 344 |
Shareholders’ Reports | 102 |
Trustees’ Fees and Expenses | 3 |
Other Expenses | 782 |
Total Expenses | 25,699 |
Net Investment Income | 189,639 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 60,268 |
Futures Contracts | 20,188 |
Foreign Currencies | 1,390 |
Realized Net Gain (Loss) | 81,846 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | 2,307,538 |
Futures Contracts | 26,352 |
Foreign Currencies | 1,036 |
Change in Unrealized Appreciation (Depreciation) | 2,334,926 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,606,411 |
1 | Dividends are net of foreign withholding taxes of $16,953,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $10,611,000, $62,000, $2,000, and ($16,000), respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized Gain (Loss) is net of foreign capital gains taxes of $5,729,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($7,149,000). |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 189,639 | 365,829 | |
Realized Net Gain (Loss) | 81,846 | (314,479) | |
Change in Unrealized Appreciation (Depreciation) | 2,334,926 | (3,259,520) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,606,411 | (3,208,170) | |
Distributions | |||
Total Distributions | (341,585) | (633,591) | |
Capital Share Transactions | |||
Issued | 1,074,006 | 2,352,101 | |
Issued in Lieu of Cash Distributions | 304,194 | 576,930 | |
Redeemed | (1,642,536) | (2,573,910) | |
Net Increase (Decrease) from Capital Share Transactions | (264,336) | 355,121 | |
Total Increase (Decrease) | 2,000,490 | (3,486,640) | |
Net Assets | |||
Beginning of Period | 11,732,531 | 15,219,171 | |
End of Period | 13,733,021 | 11,732,531 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $32.96 | $43.76 | $32.48 | $36.63 | $35.86 | $39.26 |
Investment Operations | ||||||
Net Investment Income1 | .540 | 1.019 | 1.091 | .684 | 1.104 | .950 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.843 | (10.011) | 10.824 | (3.723) | 1.669 | (3.607) |
Total from Investment Operations | 7.383 | (8.992) | 11.915 | (3.039) | 2.773 | (2.657) |
Distributions | ||||||
Dividends from Net Investment Income | (.983) | (1.087) | (.635) | (1.111) | (.943) | (.743) |
Distributions from Realized Capital Gains | — | (.721) | — | — | (1.060) | — |
Total Distributions | (.983) | (1.808) | (.635) | (1.111) | (2.003) | (.743) |
Net Asset Value, End of Period | $39.36 | $32.96 | $43.76 | $32.48 | $36.63 | $35.86 |
Total Return2 | 22.73% | -21.28% | 36.91% | -8.69% | 8.48% | -6.95% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,733 | $11,733 | $15,219 | $9,408 | $10,360 | $9,524 |
Ratio of Total Expenses to Average Net Assets3 | 0.39% | 0.38% | 0.36% | 0.35% | 0.37% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 2.90% | 2.68% | 2.56% | 2.05% | 3.15% | 2.41% |
Portfolio Turnover Rate | 13% | 37% | 33% | 72% | 38% | 28% |
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 0.01%, 0.00%, (0.01%), (0.02%), (0.01%), and (0.01%). |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 1,277,531 | 71,550 | — | 1,349,081 |
Common Stocks—Other | 871,283 | 10,793,752 | — | 11,665,035 |
Temporary Cash Investments | 646,773 | — | — | 646,773 |
Total | 2,795,587 | 10,865,302 | — | 13,660,889 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 9,733 | — | — | 9,733 |
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 | 12,358,729 |
Gross Unrealized Appreciation | 2,448,413 |
Gross Unrealized Depreciation | (1,136,520) |
Net Unrealized Appreciation (Depreciation) | 1,311,893 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 28,768 | 61,320 | |
Issued in Lieu of Cash Distributions | 8,593 | 14,416 | |
Redeemed | (44,377) | (67,638) | |
Net Increase (Decrease) in Shares Outstanding | (7,016) | 8,098 |
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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, 2023 | |||
Diversified Equity Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,073.60 | $1.80 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.06 | 1.76 |
Vanguard U.S. Growth Fund Investor Shares | 30.3% |
Vanguard Growth and Income Fund Investor Shares | 20.3 |
Vanguard WindsorTM Fund Investor Shares | 19.8 |
Vanguard Windsor II Fund Investor Shares | 15.1 |
Vanguard ExplorerTM Fund Investor Shares | 9.6 |
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 | 15,070,326 | 680,727 | ||||
Vanguard Growth and Income Fund Investor Shares | 8,799,489 | 455,726 | ||||
Vanguard Windsor Fund Investor Shares | 21,024,004 | 445,919 | ||||
Vanguard Windsor II Fund Investor Shares | 8,545,752 | 338,668 | ||||
Vanguard Explorer Fund Investor Shares | 2,192,374 | 215,817 | ||||
Vanguard Mid-Cap Growth Fund | 5,484,992 | 110,797 | ||||
Total Investment Companies (Cost $1,693,731) | 2,247,654 | |||||
Temporary Cash Investments (0.0%) | ||||||
Money Market Fund (0.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 4.853% (Cost $—) | 4 | — | |||
Total Investments (100.0%) (Cost $1,693,731) | 2,247,654 | |||||
Other Assets and Liabilities—Net (0.0%) | (283) | |||||
Net Assets (100%) | 2,247,371 |
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, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $1,693,731) | 2,247,654 |
Receivables for Investment Securities Sold | 974 |
Receivables for Accrued Income | 1 |
Receivables for Capital Shares Issued | 308 |
Total Assets | 2,248,937 |
Liabilities | |
Due to Custodian | 220 |
Payables for Capital Shares Redeemed | 1,346 |
Total Liabilities | 1,566 |
Net Assets | 2,247,371 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 1,598,882 |
Total Distributable Earnings (Loss) | 648,489 |
Net Assets | 2,247,371 |
Net Assets | |
Applicable to 57,249,953 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,247,371 |
Net Asset Value Per Share | $39.26 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 13,232 |
Net Investment Income—Note B | 13,232 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 111,577 |
Affiliated Funds Sold | (13,107) |
Realized Net Gain (Loss) | 98,470 |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | 43,219 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 154,921 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 13,232 | 19,185 | |
Realized Net Gain (Loss) | 98,470 | 327,658 | |
Change in Unrealized Appreciation (Depreciation) | 43,219 | (967,703) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 154,921 | (620,860) | |
Distributions | |||
Total Distributions | (242,790) | (196,729) | |
Capital Share Transactions | |||
Issued | 90,157 | 293,317 | |
Issued in Lieu of Cash Distributions | 224,491 | 182,595 | |
Redeemed | (159,709) | (443,391) | |
Net Increase (Decrease) from Capital Share Transactions | 154,939 | 32,521 | |
Total Increase (Decrease) | 67,070 | (785,068) | |
Net Assets | |||
Beginning of Period | 2,180,301 | 2,965,369 | |
End of Period | 2,247,371 | 2,180,301 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $41.38 | $56.40 | $40.98 | $37.95 | $35.88 | $35.57 |
Investment Operations | ||||||
Net Investment Income1 | .236 | .356 | .385 | .452 | .455 | .395 |
Capital Gain Distributions Received1 | 1.993 | 6.162 | 2.294 | 1.866 | 3.087 | 1.686 |
Net Realized and Unrealized Gain (Loss) on Investments | .310 | (17.785) | 15.438 | 3.447 | .575 | .206 |
Total from Investment Operations | 2.539 | (11.267) | 18.117 | 5.765 | 4.117 | 2.287 |
Distributions | ||||||
Dividends from Net Investment Income | (.256) | (.317) | (.346) | (.369) | (.383) | (.358) |
Distributions from Realized Capital Gains | (4.403) | (3.436) | (2.351) | (2.366) | (1.664) | (1.619) |
Total Distributions | (4.659) | (3.753) | (2.697) | (2.735) | (2.047) | (1.977) |
Net Asset Value, End of Period | $39.26 | $41.38 | $56.40 | $40.98 | $37.95 | $35.88 |
Total Return2 | 7.36% | -21.42% | 45.67% | 15.73% | 12.82% | 6.55% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $2,247 | $2,180 | $2,965 | $1,919 | $1,789 | $1,709 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 1.06% | 0.77% | 0.76% | 1.19% | 1.27% | 1.07% |
Portfolio Turnover Rate | 5% | 12% | 6% | 14% | 9% | 8% |
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 | 1,699,086 |
Gross Unrealized Appreciation | 649,356 |
Gross Unrealized Depreciation | (100,788) |
Net Unrealized Appreciation (Depreciation) | 548,568 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 2,297 | 6,163 | |
Issued in Lieu of Cash Distributions | 6,342 | 3,454 | |
Redeemed | (4,081) | (9,499) | |
Net Increase (Decrease) in Shares Outstanding | 4,558 | 118 |
Current Period Transactions | ||||||||
Oct. 31, 2022 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, 2023 Market Value ($000) | |
Vanguard Explorer Fund | 219,915 | 11,910 | 14,078 | (1,890) | (40) | 794 | 9,689 | 215,817 |
Vanguard Growth and Income Fund | 440,104 | 35,413 | 11,319 | (809) | (7,663) | 3,571 | 31,843 | 455,726 |
Vanguard Market Liquidity Fund | — | NA1 | NA1 | — | — | 2 | — | — |
Vanguard Mid-Cap Growth Fund | 107,541 | 275 | 2,451 | (1,865) | 7,297 | 275 | — | 110,797 |
Vanguard U.S. Growth Fund | 638,320 | 8,268 | 23,753 | (9,948) | 67,840 | 2,215 | — | 680,727 |
Vanguard Windsor Fund | 443,595 | 62,449 | 34,285 | 1,105 | (26,945) | 3,695 | 52,563 | 445,919 |
Vanguard Windsor II Fund | 331,267 | 20,236 | 15,865 | 300 | 2,730 | 2,680 | 17,482 | 338,668 |
Total | 2,180,742 | 138,551 | 101,751 | (13,107) | 43,219 | 13,232 | 111,577 | 2,247,654 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 19 |
Liquidity Risk Management | 21 |
• | 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, 2023 | |||
Emerging Markets Select Stock Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,200.50 | $4.47 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,020.73 | 4.11 |
China | 29.0% |
Taiwan | 12.3 |
India | 11.6 |
Brazil | 9.8 |
South Korea | 7.5 |
United States | 4.9 |
Hong Kong | 4.6 |
Thailand | 3.5 |
Indonesia | 2.6 |
South Africa | 2.5 |
Mexico | 1.7 |
United Kingdom | 1.4 |
Saudi Arabia | 1.3 |
Canada | 1.3 |
Other | 6.0 |
Shares | Market Value• ($000) | ||
Common Stocks (93.8%) | |||
Argentina (0.1%) | |||
* | YPF SA ADR | 95,046 | 1,057 |
Brazil (9.2%) | |||
Petroleo Brasileiro SA ADR (XNYS) | 972,223 | 10,325 | |
Ambev SA | 2,669,666 | 7,579 | |
Vale SA Class B ADR | 487,872 | 7,030 | |
Banco Bradesco SA ADR | 1,810,561 | 5,069 | |
Cia Energetica de Minas Gerais Preference Shares | 1,657,065 | 4,103 | |
Banco Bradesco SA Preference Shares | 1,226,600 | 3,406 | |
Itau Unibanco Holding SA ADR | 593,768 | 3,058 | |
Centrais Eletricas Brasileiras SA | 379,218 | 2,574 | |
B3 SA - Brasil Bolsa Balcao | 1,086,700 | 2,545 | |
Raizen SA Preference Shares | 3,889,635 | 2,488 | |
Neoenergia SA | 763,100 | 2,364 | |
TIM SA | 814,389 | 2,286 | |
Banco Do Brasil SA | 262,600 | 2,256 | |
Itau Unibanco Holding SA Preference Shares | 419,200 | 2,178 | |
Localiza Rent a Car SA (BVMF) | 168,594 | 1,961 | |
* | Cia de Saneamento Basico do Estado de Sao Paulo | 211,347 | 1,955 |
Petroleo Brasileiro SA Preference Shares | 395,400 | 1,879 | |
Lojas Renner SA | 550,196 | 1,747 | |
Petroleo Brasileiro SA ADR | 183,700 | 1,743 | |
*,1 | Azul SA ADR | 179,405 | 1,168 |
Petroleo Brasileiro SA | 185,639 | 993 | |
Raia Drogasil SA | 83,870 | 442 | |
* | Magazine Luiza SA | 638,520 | 427 |
*,2 | Hapvida Participacoes e Investimentos SA | 543,362 | 301 |
BR Properties SA | 1,557 | 20 | |
BRPR Corporate Offices FI | 1,557 | 18 | |
69,915 |
Shares | Market Value• ($000) | ||
Canada (1.2%) | |||
First Quantum Minerals Ltd. | 176,860 | 4,297 | |
Lundin Mining Corp. | 276,447 | 2,112 | |
Parex Resources Inc. | 100,999 | 2,051 | |
* | Valeura Energy Inc. | 264,800 | 494 |
8,954 | |||
Chile (0.3%) | |||
1 | Sociedad Quimica y Minera de Chile SA ADR | 29,951 | 2,021 |
China (27.2%) | |||
Tencent Holdings Ltd. | 528,244 | 23,463 | |
* | Alibaba Group Holding Ltd. | 2,053,751 | 21,716 |
Ping An Insurance Group Co. of China Ltd. Class H | 1,089,163 | 7,946 | |
*,2 | Meituan Class B | 383,976 | 6,562 |
China Merchants Bank Co. Ltd. Class H | 1,220,438 | 5,891 | |
Zijin Mining Group Co. Ltd. Class H | 3,466,446 | 5,869 | |
China Overseas Land & Investment Ltd. | 2,224,190 | 5,641 | |
China Construction Bank Corp. Class H | 8,340,539 | 5,576 | |
* | Trip.com Group Ltd. ADR | 130,734 | 4,642 |
Aluminum Corp. of China Ltd. Class H | 7,710,875 | 4,581 | |
* | Baidu Inc. Class A | 283,150 | 4,262 |
Contemporary Amperex Technology Co. Ltd. Class A (XSHE) | 116,951 | 3,913 | |
Anhui Conch Cement Co. Ltd. Class H | 1,204,655 | 3,804 | |
Weichai Power Co. Ltd. Class H | 2,547,349 | 3,765 | |
China Tourism Group Duty Free Corp. Ltd. Class A | 149,807 | 3,495 | |
Midea Group Co. Ltd. Class A | 424,086 | 3,481 | |
ENN Energy Holdings Ltd. | 213,574 | 2,928 | |
2 | Ganfeng Lithium Co. Ltd. Class H | 443,807 | 2,928 |
Geely Automobile Holdings Ltd. | 2,284,170 | 2,836 |
Shares | Market Value• ($000) | ||
GF Securities Co. Ltd. Class H | 1,948,400 | 2,798 | |
Zhejiang Longsheng Group Co. Ltd. Class A | 1,933,100 | 2,677 | |
China Longyuan Power Group Corp. Ltd. Class H | 2,537,350 | 2,663 | |
2 | WuXi AppTec Co. Ltd. Class H | 294,052 | 2,586 |
* | KE Holdings Inc. ADR | 150,469 | 2,361 |
* | Daqo New Energy Corp. ADR | 49,424 | 2,270 |
*,2 | China Tourism Group Duty Free Corp. Ltd. Class H | 99,946 | 2,138 |
JD.com Inc. Class A | 119,651 | 2,135 | |
ANTA Sports Products Ltd. | 168,813 | 2,098 | |
Haier Smart Home Co. Ltd. Class H | 633,600 | 2,065 | |
* | Shanghai International Airport Co. Ltd. Class A | 257,857 | 2,003 |
* | CITIC Securities Co. Ltd. Class H | 903,554 | 1,903 |
Contemporary Amperex Technology Co. Ltd. Class A | 54,540 | 1,825 | |
Brilliance China Automotive Holdings Ltd. | 4,186,000 | 1,760 | |
Muyuan Foods Co. Ltd.Class A | 245,369 | 1,697 | |
* | CIMC Enric Holdings Ltd. | 1,810,000 | 1,667 |
Nine Dragons Paper Holdings Ltd. | 2,389,888 | 1,658 | |
Li Ning Co. Ltd. | 230,768 | 1,650 | |
Midea Group Co. Ltd. Class A (XSEC) | 198,594 | 1,630 | |
Ping An Bank Co. Ltd. Class A (XSHE) | 848,629 | 1,541 | |
Sinoma Science & Technology Co. Ltd. Class A | 487,400 | 1,488 | |
* | Trip.com Group Ltd. | 41,528 | 1,477 |
Ping An Bank Co. Ltd. Class A | 768,940 | 1,396 | |
Minth Group Ltd. | 474,000 | 1,372 | |
* | XPeng Inc. Class A | 279,352 | 1,334 |
* | BeiGene Ltd. | 66,950 | 1,314 |
* | Air China Ltd. Class H | 1,355,852 | 1,200 |
Bank of Ningbo Co. Ltd. Class A | 284,400 | 1,126 | |
Yunnan Energy New Material Co. Ltd. Class A | 74,400 | 1,120 | |
2 | Longfor Group Holdings Ltd. | 383,145 | 1,048 |
China Resources Land Ltd. | 219,441 | 1,022 | |
Shenzhou International Group Holdings Ltd. | 105,500 | 1,013 | |
Xtep International Holdings Ltd. | 859,891 | 1,003 | |
* | Baidu Inc. ADR | 8,144 | 982 |
* | Tencent Music Entertainment Group ADR | 132,550 | 982 |
Shares | Market Value• ($000) | ||
Suofeiya Home Collection Co. Ltd. Class A | 354,790 | 970 | |
China Railway Group Ltd. Class A | 702,500 | 944 | |
2 | CSC Financial Co. Ltd. Class H | 920,657 | 937 |
* | Zai Lab Ltd. | 267,400 | 936 |
Ping An Insurance Group Co. of China Ltd. Class A | 117,700 | 883 | |
Guangzhou Tinci Materials Technology Co. Ltd. Class A | 142,600 | 881 | |
Anker Innovations Technology Co. Ltd. Class A | 80,600 | 854 | |
*,2 | Haidilao International Holding Ltd. | 349,000 | 853 |
* | KE Holdings Inc. Class A | 161,670 | 847 |
China National Building Material Co. Ltd. Class H | 1,090,093 | 818 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 140,487 | 778 | |
* | Kingdee International Software Group Co. Ltd. | 504,575 | 776 |
China Pacific Insurance Group Co. Ltd. Class H | 257,762 | 770 | |
Proya Cosmetics Co. Ltd. Class A | 30,200 | 733 | |
Glodon Co. Ltd. Class A (XSHE) | ��� 79,600 | 667 | |
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class A | 707,950 | 663 | |
China Oilfield Services Ltd. Class H | 540,508 | 636 | |
* | Great Wall Motor Co. Ltd. Class H | 523,500 | 635 |
*,2 | Kuaishou Technology | 95,900 | 635 |
Zhejiang HangKe Technology Inc. Co Class A | 85,437 | 615 | |
Suofeiya Home Collection Co. Ltd. Class A (XSHE) | 207,445 | 567 | |
*,2 | Wuxi Biologics Cayman Inc. | 93,500 | 558 |
Yihai International Holding Ltd. | 187,690 | 498 | |
Sinopharm Group Co. Ltd. Class H | 140,000 | 496 | |
* | Alibaba Group Holding Ltd. ADR | 5,174 | 438 |
* | New Oriental Educatio Sp ADR | 9,563 | 436 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 251,918 | 430 | |
Lufax Holding Ltd. ADR | 245,187 | 417 | |
Wushang Group Co. Ltd. Class A | 236,500 | 389 | |
* | China Resources Beer Holdings Co. Ltd. | 49,800 | 385 |
* | Tsingtao Brewery Co. Ltd. Class H | 36,000 | 385 |
Shares | Market Value• ($000) | ||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A | 8,100 | 365 | |
* | Yatsen Holding Ltd. ADR | 335,416 | 339 |
CSPC Pharmaceutical Group Ltd. | 323,199 | 329 | |
* | Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H | 110,500 | 316 |
WuXi AppTec Co. Ltd. Class A | 31,000 | 303 | |
* | H World Group Ltd. ADR | 6,355 | 298 |
China Vanke Co. Ltd. Class H | 190,100 | 297 | |
Aluminum Corp of China Ltd. Class A | 317,594 | 294 | |
Hangzhou Tigermed Consulting Co. Ltd. Class A | 22,000 | 289 | |
* | Grand Baoxin Auto Group Ltd. | 4,428,000 | 203 |
Yifeng Pharmacy Chain Co. Ltd. Class A (XSHG) | 27,170 | 196 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | 4,200 | 189 | |
*,2 | Remegen Co. Ltd. Class H | 28,859 | 170 |
Amoy Diagnostics Co. Ltd. Class A | 37,094 | 151 | |
2 | Asymchem Laboratories Tianjin Co. Ltd. Class H | 11,791 | 148 |
* | GDS Holdings Ltd. ADR | 6,886 | 107 |
Asymchem Laboratories Tianjin Co. Ltd. Class A | 5,260 | 96 | |
Amoy Diagnostics Co. Ltd. Class A (XSHE) | 21,680 | 88 | |
BTG Hotels Group Co. Ltd. Class A | 26,100 | 82 | |
* | Microport Scientific Corp. | 32,246 | 72 |
*,2 | Venus MedTech Hangzhou Inc. Class H | 49,977 | 70 |
Yifeng Pharmacy Chain Co. Ltd. Class A | 5,000 | 36 | |
*,3 | Tianhe Chemicals Group Ltd. | 4,142,000 | — |
207,569 | |||
Egypt (0.0%) | |||
Commercial International Bank Egypt SAE GDR (Registered) | 2 | — | |
Greece (0.5%) | |||
* | Alpha Services and Holdings SA | 2,992,079 | 3,751 |
Hong Kong (4.3%) | |||
* | Galaxy Entertainment Group Ltd. | 1,482,572 | 10,552 |
Pacific Basin Shipping Ltd. | 18,738,846 | 6,520 | |
Lenovo Group Ltd. | 3,878,000 | 3,968 | |
Yue Yuen Industrial Holdings Ltd. | 2,572,000 | 3,871 | |
* | Sands China Ltd. | 824,652 | 2,953 |
Orient Overseas International Ltd. | 93,222 | 1,894 |
Shares | Market Value• ($000) | ||
AIA Group Ltd. | 159,250 | 1,734 | |
VTech Holdings Ltd. | 111,300 | 668 | |
* | Melco Resorts & Entertainment Ltd. ADR | 39,437 | 538 |
Wharf Holdings Ltd. | 51,500 | 118 | |
32,816 | |||
Hungary (0.7%) | |||
OTP Bank Nyrt | 141,164 | 4,302 | |
MOL Hungarian Oil & Gas plc | 115,353 | 935 | |
5,237 | |||
India (10.9%) | |||
Reliance Industries Ltd. | 664,832 | 19,744 | |
Housing Development Finance Corp. Ltd. | 190,214 | 6,481 | |
Larsen & Toubro Ltd. | 208,572 | 6,047 | |
Shriram Finance Ltd. | 317,842 | 5,195 | |
ICICI Bank Ltd. ADR | 192,303 | 4,375 | |
UltraTech Cement Ltd. | 47,065 | 4,357 | |
Aurobindo Pharma Ltd. | 557,277 | 4,213 | |
Bharti Airtel Ltd (XNSE) | 410,274 | 4,016 | |
Tata Consultancy Services Ltd. | 87,498 | 3,459 | |
Axis Bank Ltd. | 322,308 | 3,402 | |
* | Ambuja Cements Ltd. | 649,697 | 3,159 |
2 | HDFC Life Insurance Co. Ltd. | 430,353 | 2,794 |
State Bank of India | 377,274 | 2,679 | |
Tech Mahindra Ltd. | 208,167 | 2,619 | |
Kotak Mahindra Bank Ltd. | 108,916 | 2,592 | |
Mahindra & Mahindra Ltd. | 92,061 | 1,385 | |
Power Grid Corp. of India Ltd. | 397,392 | 1,156 | |
* | Delhivery Ltd. | 230,116 | 1,056 |
UPL Ltd. | 93,561 | 849 | |
2 | SBI Life Insurance Co. Ltd. | 50,994 | 712 |
* | Zomato Ltd. | 785,814 | 628 |
ICICI Bank Ltd. | 55,389 | 625 | |
Apollo Hospitals Enterprise Ltd. | 8,048 | 446 | |
Hindustan Unilever Ltd. | 11,547 | 348 | |
Tata Steel Ltd. | 246,814 | 327 | |
* | Fortis Healthcare Ltd. | 57,511 | 184 |
Bharti Airtel Ltd. | 32,102 | 162 | |
* | Piramal Pharma Ltd. | 37,048 | 32 |
83,042 | |||
Indonesia (2.4%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 35,675,125 | 12,432 | |
Bank Mandiri Persero Tbk PT | 10,448,000 | 3,693 | |
Bank Central Asia Tbk PT | 2,788,355 | 1,726 | |
* | Semen Indonesia Persero Tbk PT | 1,177,894 | 479 |
18,330 | |||
Japan (0.1%) | |||
* | Universal Entertainment Corp. | 45,900 | 966 |
Kenya (0.1%) | |||
Equity Group Holdings plc | 2,835,914 | 956 |
Shares | Market Value• ($000) | ||
Mexico (1.6%) | |||
Grupo Financiero Banorte SAB de CV Class O | 748,610 | 6,474 | |
Wal-Mart de Mexico SAB de CV | 542,380 | 2,187 | |
* | Cemex SAB de CV ADR | 308,447 | 1,850 |
Qualitas Controladora SAB de CV | 109,944 | 727 | |
Grupo Mexico SAB de CV Series B | 107,363 | 528 | |
Corp. Inmobiliaria Vesta SAB de CV | 98,400 | 311 | |
12,077 | |||
Other (1.2%) | |||
4 | Vanguard FTSE Emerging Markets ETF | 222,923 | 8,970 |
Philippines (0.4%) | |||
Bdo Unibank Inc. | 1,122,473 | 2,926 | |
Ayala Land Inc. | 411,400 | 199 | |
3,125 | |||
Poland (0.3%) | |||
*,2 | Allegro.eu SA | 147,294 | 1,161 |
KGHM Polska Miedz SA | 34,440 | 991 | |
2,152 | |||
Romania (0.1%) | |||
Banca Transilvania SA | 235,045 | 1,007 | |
Russia (0.0%) | |||
*,3 | MMC Norilsk Nickel PJSC ADR | 200,203 | — |
*,3 | Sberbank of Russia PJSC | 1,473,153 | — |
*,3 | Mobile TeleSystems PJSC ADR | 93,946 | — |
*,3 | Moscow Exchange MICEX-RTS PJSC | 536,630 | — |
*,3 | Magnit PJSC GDR (Registered) | 2 | — |
*,3 | MMC Norilsk Nickel PJSC | 1,247 | — |
*,3 | Sberbank of Russia PJSC ADR | 476,234 | — |
*,3 | LUKOIL PJSC ADR | 102,385 | — |
*,3 | Novatek PJSC GDR (Registered) | 6,724 | — |
*,1,3 | Ozon Holdings plc ADR | 37,493 | — |
*,3 | Magnit PJSC | 12,527 | — |
*,3 | Gazprom PJSC | 926,846 | — |
— | |||
Saudi Arabia (1.2%) | |||
2 | Saudi Arabian Oil Co. | 450,781 | 4,345 |
Saudi British Bank | 235,471 | 2,286 | |
Al Rajhi Bank | 91,085 | 1,880 | |
Saudi Telecom Co. | 72,366 | 871 | |
9,382 | |||
Singapore (0.6%) | |||
Wilmar International Ltd. | 1,612,000 | 4,761 | |
South Africa (2.4%) | |||
AngloGold Ashanti Ltd. ADR | 232,459 | 6,179 | |
Sasol Ltd. | 342,139 | 4,455 | |
Impala Platinum Holdings Ltd. | 239,823 | 2,335 | |
FirstRand Ltd. | 315,005 | 1,110 | |
* | Discovery Ltd. | 107,167 | 843 |
Naspers Ltd. Class N | 4,635 | 826 |
Shares | Market Value• ($000) | ||
Gold Fields Ltd. | 45,957 | 716 | |
Harmony Gold Mining Co. Ltd. | 115,612 | 542 | |
Thungela Resources Ltd. | 56,635 | 525 | |
Sibanye Stillwater Ltd. | 198,469 | 439 | |
17,970 | |||
South Korea (7.0%) | |||
Samsung Electronics Co. Ltd. (XKRX) | 302,243 | 14,872 | |
SK Hynix Inc. | 108,109 | 7,274 | |
LG Chem Ltd. (XKRX) | 9,293 | 5,162 | |
Hyundai Motor Co. | 23,991 | 3,554 | |
Hankook Tire & Technology Co. Ltd. | 136,687 | 3,530 | |
DB Insurance Co. Ltd. | 55,938 | 3,516 | |
POSCO Holdings Inc. | 10,568 | 2,991 | |
Samsung Electronics Co. Ltd. Preference Shares | 71,045 | 2,970 | |
Samsung SDI Co. Ltd. (XKRX) | 5,407 | 2,806 | |
Hana Financial Group Inc. | 60,295 | 1,895 | |
Shinhan Financial Group Co. Ltd. | 53,870 | 1,410 | |
Doosan Bobcat Inc. | 34,525 | 1,325 | |
KB Financial Group Inc. | 26,800 | 995 | |
WONIK IPS Co. Ltd. | 32,805 | 751 | |
NAVER Corp. | 4,531 | 656 | |
53,707 | |||
Taiwan (11.6%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. (XTAI) | 2,754,842 | 45,112 | |
Hon Hai Precision Industry Co. Ltd. | 2,556,685 | 8,712 | |
Compal Electronics Inc. | 6,334,000 | 4,943 | |
MediaTek Inc. | 222,555 | 4,839 | |
Lite-On Technology Corp. ADR | 1,878,000 | 4,499 | |
United Integrated Services Co. Ltd. | 409,000 | 2,890 | |
Elite Material Co. Ltd. | 504,000 | 2,696 | |
* | United Microelectronics Corp. | 1,455,926 | 2,342 |
Evergreen Marine Corp. Taiwan Ltd. | 344,348 | 1,819 | |
* | Nanya Technology Corp. | 787,000 | 1,744 |
Silergy Corp. | 108,000 | 1,705 | |
Chroma ATE Inc. | 244,000 | 1,515 | |
Airtac International Group | 39,799 | 1,445 | |
E Ink Holdings Inc. | 227,000 | 1,414 | |
President Chain Store Corp. | 120,700 | 1,063 | |
ASPEED Technology Inc. | 11,553 | 989 | |
Accton Technology Corp. | 36,000 | 352 | |
88,079 | |||
Thailand (3.3%) | |||
PTT Exploration & Production PCL | 1,267,510 | 5,515 | |
SCB X PCL Foreign | 1,452,100 | 4,417 | |
Charoen Pokphand Foods PCL | 5,819,800 | 3,465 | |
* | CP ALL PCL | 1,741,494 | 3,310 |
Kasikornbank PCL | 712,907 | 2,617 | |
Bangkok Bank PCL NVDR | 469,100 | 2,163 | |
Kasikornbank PCL NVDR | 513,679 | 1,886 | |
Bangkok Bank PCL (Registered) | 215,800 | 995 |
Shares | Market Value• ($000) | ||
Bangkok Dusit Medical Services PCL Class F | 404,300 | 347 | |
Central Pattana PCL | 142,770 | 285 | |
Indorama Ventures PCL NVDR | 214,200 | 214 | |
25,214 | |||
Turkey (0.2%) | |||
Akbank TAS | 1,691,388 | 1,399 | |
United Arab Emirates (0.5%) | |||
Abu Dhabi Commercial Bank PJSC | 1,587,605 | 3,814 | |
Emaar Properties PJSC | 211,901 | 344 | |
4,158 | |||
United Kingdom (1.3%) | |||
Standard Chartered plc | 760,849 | 6,028 | |
Fresnillo plc | 201,336 | 1,802 | |
Anglo American plc | 30,547 | 941 | |
* | Polymetal International plc | 121,016 | 428 |
* | Centamin plc | 297,387 | 386 |
Hikma Pharmaceuticals plc | 9,793 | 227 | |
2 | Airtel Africa plc | 126,660 | 191 |
10,003 | |||
United States (4.6%) | |||
* | MercadoLibre Inc. | 5,786 | 7,392 |
Credicorp Ltd. | 51,631 | 6,995 | |
Freeport-McMoRan Inc. | 126,596 | 4,799 | |
Cognizant Technology Solutions Corp. Class A | 51,280 | 3,062 | |
* | Sea Ltd. ADR | 32,952 | 2,510 |
* | Coupang Inc. Class A | 128,048 | 2,146 |
Schwab Emerging Markets Equity ETF | 83,417 | 2,030 | |
* | Flex Ltd. | 84,985 | 1,748 |
Copa Holdings SA Class A | 18,416 | 1,663 | |
Ternium SA ADR | 25,407 | 1,102 | |
* | MakeMyTrip Ltd. | 32,601 | 764 |
Patria Investments Ltd. Class A | 42,616 | 632 |
Shares | Market Value• ($000) | ||
*,3 | Yandex NV Class A | 11,746 | — |
34,843 | |||
Vietnam (0.5%) | |||
Vietnam Dairy Products JSC | 1,137,100 | 3,399 | |
Total Common Stocks (Cost $706,644) | 714,860 | ||
Temporary Cash Investments (5.6%) | |||
Money Market Fund (5.6%) | |||
5,6 | Vanguard Market Liquidity Fund, 4.853% (Cost $42,824) | 428,347 | 42,830 |
Total Investments (99.4%) (Cost $749,468) | 757,690 | ||
Other Assets and Liabilities—Net (0.6%) | 4,662 | ||
Net Assets (100%) | 762,352 | ||
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 $1,871,000. |
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, 2023, the aggregate value was $28,137,000, representing 3.7% of net assets. |
3 | Security value determined using significant unobservable inputs. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
5 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
6 | Collateral of $2,605,000 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 2023 | 658 | 32,380 | 706 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $697,381) | 705,890 |
Affiliated Issuers (Cost $52,087) | 51,800 |
Total Investments in Securities | 757,690 |
Investment in Vanguard | 27 |
Cash | 2,556 |
Cash Collateral Pledged—Futures Contracts | 977 |
Foreign Currency, at Value (Cost $2,089) | 2,116 |
Receivables for Investment Securities Sold | 1,946 |
Receivables for Accrued Income | 4,457 |
Receivables for Capital Shares Issued | 289 |
Variation Margin Receivable—Futures Contracts | 165 |
Total Assets | 770,223 |
Liabilities | |
Payables for Investment Securities Purchased | 2,329 |
Collateral for Securities on Loan | 2,605 |
Payables to Investment Advisor | 982 |
Payables for Capital Shares Redeemed | 334 |
Payables to Vanguard | 94 |
Foreign Capital Gain Taxes Payable | 5 |
Deferred Foreign Capital Gains Taxes | 1,522 |
Total Liabilities | 7,871 |
Net Assets | 762,352 |
1 Includes $1,871,000 of securities on loan. | |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 822,975 |
Total Distributable Earnings (Loss) | (60,623) |
Net Assets | 762,352 |
Net Assets | |
Applicable to 37,814,842 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 762,352 |
Net Asset Value Per Share | $20.16 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 10,684 |
Dividends—Affiliated Issuers | 138 |
Non-Cash Dividends | 1,409 |
Interest—Unaffiliated Issuers | 26 |
Interest—Affiliated Issuers | 893 |
Securities Lending—Net | 16 |
Total Income | 13,166 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,911 |
Performance Adjustment | (4) |
The Vanguard Group—Note C | |
Management and Administrative | 949 |
Marketing and Distribution | 23 |
Custodian Fees | 99 |
Shareholders’ Reports | 22 |
Trustees’ Fees and Expenses | — |
Other Expenses | 11 |
Total Expenses | 3,011 |
Net Investment Income | 10,155 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | — |
Investment Securities Sold—Unaffiliated Issuers2 | (10,653) |
Investment Securities Sold—Affiliated Issuers | (122) |
Futures Contracts | (156) |
Forward Currency Contracts | 14 |
Foreign Currencies | (117) |
Realized Net Gain (Loss) | (11,034) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers3 | 121,760 |
Investment Securities—Affiliated Issuers | 899 |
Futures Contracts | 2,720 |
Foreign Currencies | 37 |
Change in Unrealized Appreciation (Depreciation) | 125,416 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 124,537 |
1 | Dividends are net of foreign withholding taxes of $1,207,000. |
2 | Realized gain (loss) is net of foreign capital gain taxes of $201,000. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $18,000. |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 10,155 | 26,378 | |
Realized Net Gain (Loss) | (11,034) | (59,867) | |
Change in Unrealized Appreciation (Depreciation) | 125,416 | (261,612) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 124,537 | (295,101) | |
Distributions | |||
Total Distributions | (25,482) | (59,107) | |
Capital Share Transactions | |||
Issued | 90,576 | 179,568 | |
Issued in Lieu of Cash Distributions | 21,665 | 50,609 | |
Redeemed | (78,346) | (220,976) | |
Net Increase (Decrease) from Capital Share Transactions | 33,895 | 9,201 | |
Total Increase (Decrease) | 132,950 | (345,007) | |
Net Assets | |||
Beginning of Period | 629,402 | 974,409 | |
End of Period | 762,352 | 629,402 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $17.42 | $27.09 | $22.18 | $21.87 | $19.68 | $22.56 |
Investment Operations | ||||||
Net Investment Income1 | .274 | .715 | .457 | .298 | .4742 | .414 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.181 | (8.724) | 4.729 | .483 | 2.208 | (2.943) |
Total from Investment Operations | 3.455 | (8.009) | 5.186 | .781 | 2.682 | (2.529) |
Distributions | ||||||
Dividends from Net Investment Income | (.715) | (.486) | (.276) | (.471) | (.492) | (.351) |
Distributions from Realized Capital Gains | — | (1.175) | — | — | — | — |
Total Distributions | (.715) | (1.661) | (.276) | (.471) | (.492) | (.351) |
Net Asset Value, End of Period | $20.16 | $17.42 | $27.09 | $22.18 | $21.87 | $19.68 |
Total Return3 | 20.05% | -31.16% | 23.44% | 3.51% | 13.96% | -11.39% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $762 | $629 | $974 | $670 | $702 | $564 |
Ratio of Total Expenses to Average Net Assets4 | 0.82% | 0.78% | 0.84% | 0.85% | 0.93% | 0.94% |
Ratio of Net Investment Income to Average Net Assets | 2.74% | 3.26% | 1.65% | 1.43% | 2.25%2 | 1.85% |
Portfolio Turnover Rate | 21% | 41% | 48% | 52% | 46% | 76% |
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 0.00%, (0.04%), 0.02%, (0.01%), 0.07%, and 0.05%. |
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 Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Fund Advisors, LLC, and Pzena Investment Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Fund Advisors, LLC, and Pzena Investment Management, LLC 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 | 126,819 | 2,048 | — | 128,867 |
Common Stocks—Other | 33,334 | 552,659 | — | 585,993 |
Temporary Cash Investments | 42,830 | — | — | 42,830 |
Total | 202,983 | 554,707 | — | 757,690 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 706 | — | — | 706 |
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, 2023, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows: |
Statement of Assets and Liabilities | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Appreciation—Futures Contracts1 | 706 | — | 706 |
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. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | (156) | — | (156) |
Forward Currency Contracts | — | 14 | 14 |
Realized Net Gain (Loss) on Derivatives | (156) | 14 | (142) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 2,720 | — | 2,720 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 2,720 | — | 2,720 |
F. | As of April 30, 2023, 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 | 762,745 |
Gross Unrealized Appreciation | 109,317 |
Gross Unrealized Depreciation | (113,666) |
Net Unrealized Appreciation (Depreciation) | (4,349) |
G. | During the six months ended April 30, 2023, the fund purchased $146,481,000 of investment securities and sold $146,405,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 4,490 | 8,139 | |
Issued in Lieu of Cash Distributions | 1,130 | 2,150 | |
Redeemed | (3,928) | (10,131) | |
Net Increase (Decrease) in Shares Outstanding | 1,692 | 158 |
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, 2022 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, 2023 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 5,342 | 8,942 | 6,089 | (124) | 899 | 138 | — | 8,970 |
Vanguard Market Liquidity Fund | 27,141 | NA1 | NA1 | 2 | — | 893 | — | 42,830 |
Total | 32,483 | 8,942 | 6,089 | (122) | 899 | 1,031 | — | 51,800 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
K. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
Pzena's research team conducts intensive fundamental research, buying companies only when the problems are judged to be temporary, management has a viable strategy to generate earnings recovery, and much of the downside risk is believed to already be factored into the share price. Pzena has advised a portion of the fund since the fund's inception in 2011.
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Vanguard Marketing Corporation, Distributor.
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About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 17 |
Liquidity Risk Management | 19 |
• | 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, 2023 | |||
Commodity Strategy Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $974.90 | $1.03 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.75 | 1.05 |
U.S. Government Securities | 100.0% |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (77.1%) | ||||||
U.S. Government Securities (77.1%) | ||||||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/23 | 86,289 | 86,046 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/24 | 82,153 | 80,870 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 4/15/24 | 46,131 | 45,057 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/24 | 74,591 | 72,703 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/24 | 66,536 | 64,665 | ||
United States Treasury Inflation Indexed Bonds | 0.250% | 1/15/25 | 68,212 | 66,166 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/25 | 46,494 | 46,733 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/25 | 54,504 | 52,588 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/25 | 74,799 | 72,777 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/25 | 66,312 | 64,043 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/26 | 62,976 | 61,362 | ||
United States Treasury Inflation Indexed Bonds | 2.000% | 1/15/26 | 30,006 | 30,297 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/26 | 51,238 | 49,060 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/26 | 62,769 | 60,327 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/26 | 70,880 | 67,867 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 1/15/27 | 58,452 | 56,214 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/27 | 29,012 | 29,969 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/27 | 72,406 | 68,786 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/27 | 64,444 | 62,118 | ||
United States Treasury Inflation Indexed Bonds | 1.625% | 10/15/27 | 72,609 | 73,755 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 1/15/28 | 65,811 | 63,405 | ||
United States Treasury Inflation Indexed Bonds | 1.750% | 1/15/28 | 27,275 | 27,812 | ||
United States Treasury Inflation Indexed Bonds | 1.250% | 4/15/28 | 36,308 | 36,274 | ||
United States Treasury Inflation Indexed Bonds | 3.625% | 4/15/28 | 27,900 | 30,982 | ||
Total U.S. Government and Agency Obligations (Cost $1,432,539) | 1,369,876 | |||||
Shares | ||||||
Temporary Cash Investments (28.4%) | ||||||
Money Market Fund (9.0%) | ||||||
1 | Vanguard Market Liquidity Fund | 4.853% | 1,593,807 | 159,365 |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (19.4%) | ||||||
2,3 | United States Treasury Bill | 4.600% | 5/4/23 | 57,000 | 56,980 | |
2,3 | United States Treasury Bill | 4.811% | 5/18/23 | 40,500 | 40,416 | |
3 | United States Treasury Bill | 4.777% | 5/23/23 | 21,300 | 21,244 | |
3 | United States Treasury Bill | 4.656% | 6/20/23 | 42,300 | 42,015 | |
3 | United States Treasury Bill | 5.000% | 6/27/23 | 15,500 | 15,380 | |
3 | United States Treasury Bill | 4.787% | 6/29/23 | 10,000 | 9,918 | |
2,3 | United States Treasury Bill | 4.770% | 7/18/23 | 31,300 | 30,962 | |
3 | United States Treasury Bill | 4.990% | 7/20/23 | 47,000 | 46,482 | |
2,3 | United States Treasury Bill | 5.013% | 7/25/23 | 42,600 | 42,101 | |
3 | United States Treasury Bill | 5.036% | 8/31/23 | 12,300 | 12,094 | |
2,3 | United States Treasury Bill | 4.897% | 9/14/23 | 26,800 | 26,308 | |
343,900 | ||||||
Total Temporary Cash Investments (Cost $503,308) | 503,265 | |||||
Total Investments (105.5%) (Cost $1,935,847) | 1,873,141 | |||||
Other Assets and Liabilities—Net (-5.5%) | (97,217) | |||||
Net Assets (100%) | 1,775,924 | |||||
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 | Securities with a value of $44,174,000 have been segregated as collateral for open over-the-counter swap contracts. |
3 | 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) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Bloomberg Commodity Index2 | 5/11/23 | MLI | 105,000 | (0.060) | — | (2,774) |
Bloomberg Commodity Index2 | 5/23/23 | BARC | 15,000 | (0.100) | — | (44) |
Bloomberg Commodity Index 2 Month Forward2 | 5/23/23 | BARC | 180,000 | (0.110) | — | (640) |
Bloomberg Commodity Index 3 Month Forward2 | 5/23/23 | GSI | 30,000 | (0.120) | — | (113) |
BofA Merrill Lynch Commodity MLBXAKSV Excess Return Strategy2,3 | 5/11/23 | MLI | 60,000 | (0.170) | — | (1,907) |
BofA Merrill Lynch Commodity MLBXSTGV Excess Return Strategy2,3 | 5/11/23 | MLI | 310,000 | (0.110) | — | (7,644) |
BofA Merrill Lynch Commodity MLCILP3E Excess Return Strategy2,3 | 5/11/23 | MLI | 295,000 | (0.140) | — | (6,747) |
Over-the-Counter Total Return Swaps (continued) | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
CIBC Commodity CIBZC51EC Excess Return Strategy2,3 | 5/11/23 | CIBC | 210,000 | (0.160) | — | (4,224) |
Goldman Sachs Commodity i-Select Strategy 11292,3 | 5/23/23 | GSI | 400,000 | (0.120) | — | (1,366) |
Modified Strategy DBS18 on the Bloomberg Commodity Index2,3 | 5/23/23 | GSI | 40,000 | (0.120) | — | (114) |
Societe Generale Commodity SGIXCSB1 Excess Return Strategy2,3 | 5/11/23 | SOCG | 160,000 | (0.170) | — | (4,035) |
— | (29,608) |
1 | Fixed 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. |
BARC—Barclays Bank plc. | |
CIBC—Canadian Imperial Bank of Commerce. | |
GSI—Goldman Sachs International. | |
MLI—Merrill Lynch International. | |
SOCG—Société Generale. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $1,776,494) | 1,713,776 |
Affiliated Issuers (Cost $159,353) | 159,365 |
Total Investments in Securities | 1,873,141 |
Investment in Vanguard | 65 |
Cash | 102 |
Receivables for Accrued Income | 2,274 |
Receivables for Capital Shares Issued | 1,042 |
Total Assets | 1,876,624 |
Liabilities | |
Payables for Investment Securities Purchased | 67,821 |
Payables for Capital Shares Redeemed | 3,105 |
Payables to Vanguard | 166 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 29,608 |
Total Liabilities | 100,700 |
Net Assets | 1,775,924 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 1,959,577 |
Total Distributable Earnings (Loss) | (183,653) |
Net Assets | 1,775,924 |
Net Assets | |
Applicable to 67,899,362 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,775,924 |
Net Asset Value Per Share | $26.16 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Interest1 | 24,870 |
Total Income | 24,870 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 68 |
Management and Administrative | 1,768 |
Marketing and Distribution | 54 |
Custodian Fees | 40 |
Shareholders’ Reports | 34 |
Trustees’ Fees and Expenses—Note B | 7 |
Other Expenses | 8 |
Total Expenses | 1,979 |
Expenses Paid Indirectly | (18) |
Net Expenses | 1,961 |
Net Investment Income | 22,909 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | (18,874) |
Swap Contracts | (88,784) |
Realized Net Gain (Loss) | (107,658) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 43,129 |
Swap Contracts | (7,060) |
Change in Unrealized Appreciation (Depreciation) | 36,069 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (48,680) |
1 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,135,000, less than $1,000, $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 22,909 | 94,414 | |
Realized Net Gain (Loss) | (107,658) | 131,973 | |
Change in Unrealized Appreciation (Depreciation) | 36,069 | (123,543) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (48,680) | 102,844 | |
Distributions | |||
Total Distributions | (244,184) | (390,043) | |
Capital Share Transactions | |||
Issued | 537,950 | 1,800,077 | |
Issued in Lieu of Cash Distributions | 186,096 | 271,967 | |
Redeemed | (649,513) | (1,476,116) | |
Net Increase (Decrease) from Capital Share Transactions | 74,533 | 595,928 | |
Total Increase (Decrease) | (218,331) | 308,729 | |
Net Assets | |||
Beginning of Period | 1,994,255 | 1,685,526 | |
End of Period | 1,775,924 | 1,994,255 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | June 25 20191 to October 31, 2019 | Year Ended October 31, | ||
2022 | 2021 | 2020 | |||
Net Asset Value, Beginning of Period | $30.69 | $36.85 | $24.32 | $24.83 | $25.00 |
Investment Operations | |||||
Net Investment Income2 | .331 | 1.474 | .890 | .265 | .143 |
Net Realized and Unrealized Gain (Loss) on Investments | (.977) | .751 | 11.774 | (.620) | (.313) |
Total from Investment Operations | (.646) | 2.225 | 12.664 | (.355) | (.170) |
Distributions | |||||
Dividends from Net Investment Income | (3.884) | (8.385) | (.134) | (.155) | — |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (3.884) | (8.385) | (.134) | (.155) | — |
Net Asset Value, End of Period | $26.16 | $30.69 | $36.85 | $24.32 | $24.83 |
Total Return3 | -2.51% | 9.80% | 52.30% | -1.45% | -0.68% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,776 | $1,994 | $1,686 | $373 | $207 |
Ratio of Total Expenses to Average Net Assets | 0.21%4 | 0.21%4 | 0.20% | 0.20% | 0.20%5 |
Ratio of Net Investment Income to Average Net Assets | 2.40% | 4.47% | 2.79% | 1.15% | 1.65%5 |
Portfolio Turnover Rate | 18% | 47% | 15% | 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 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.21%. |
5 | 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 | — | (684) | (684) | 2,307 | — | — |
Canadian Imperial Bank of Commerce | — | (4,224) | (4,224) | 5,672 | — | — |
Goldman Sachs International | — | (1,593) | (1,593) | 5,459 | — | — |
Merrill Lynch International | — | (19,072) | (19,072) | 25,521 | — | — |
Société Generale | — | (4,035) | (4,035) | 5,215 | — | — |
Total | — | (29,608) | (29,608) | 44,174 | — | — |
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. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended April 30, 2023, custodian fee offset arrangements reduced the fund’s expenses by $18,000 (an annual rate of less than 0.01% of average net assets). |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
U.S. Government and Agency Obligations | — | 1,369,876 | — | 1,369,876 |
Temporary Cash Investments | 159,365 | 343,900 | — | 503,265 |
Total | 159,365 | 1,713,776 | — | 1,873,141 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Swap Contracts | — | 29,608 | — | 29,608 |
E. | As of April 30, 2023, 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 | 1,936,340 |
Gross Unrealized Appreciation | 1,440 |
Gross Unrealized Depreciation | (64,639) |
Net Unrealized Appreciation (Depreciation) | (63,199) |
F. | During the six months ended April 30, 2023, the fund purchased $262,858,000 of investment securities and sold $443,326,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 19,311 | 54,611 | |
Issued in Lieu of Cash Distributions | 6,887 | 10,325 | |
Redeemed | (23,279) | (45,700) | |
Net Increase (Decrease) in Shares Outstanding | 2,919 | 19,236 |
H. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
I. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 15 |
Liquidity Risk Management | 16 |
• | 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, 2023 | |||
Beginning Account Value 11/16/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,037.00 | $3.64 |
Admiral™ Shares | 1,000.00 | 1,037.60 | 2.95 |
Based on Hypothetical 5% Yearly Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,019.03 | $3.61 |
Admiral Shares | 1,000.00 | 1,019.71 | 2.92 |
United States | 41.7% |
China | 19.8 |
Denmark | 11.8 |
Spain | 5.7 |
France | 5.2 |
United Kingdom | 4.9 |
Taiwan | 4.5 |
Germany | 4.2 |
India | 2.1 |
Other | 0.1 |
Shares | Market Value• ($000) | ||
Common Stocks (97.0%) | |||
China (19.2%) | |||
Xinyi Solar Holdings Ltd. | 1,990,000 | 2,140 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 356,649 | 1,974 | |
Contemporary Amperex Technology Co. Ltd. Class A | 51,633 | 1,728 | |
Zhejiang Sanhua Intelligent Controls Co. Ltd. Class A | 439,952 | 1,486 | |
Sungrow Power Supply Co. Ltd. Class A | 56,640 | 925 | |
8,253 | |||
Denmark (11.4%) | |||
Novozymes A/S Class B | 33,989 | 1,770 | |
1 | Orsted A/S | 19,705 | 1,768 |
* | Vestas Wind Systems A/S | 49,550 | 1,371 |
4,909 | |||
France (5.0%) | |||
Schneider Electric SE | 12,407 | 2,164 | |
Germany (4.1%) | |||
Infineon Technologies AG | 48,691 | 1,773 | |
India (2.0%) | |||
Power Grid Corp. of India Ltd. | 296,794 | 863 | |
Italy (0.1%) | |||
* | Industrie De Nora SpA | 1,936 | 39 |
Spain (5.6%) | |||
Iberdrola SA (XMAD) | 185,393 | 2,402 | |
Taiwan (4.4%) | |||
Voltronic Power Technology Corp. | 33,000 | 1,897 | |
United Kingdom (4.8%) | |||
Croda International plc | 23,461 | 2,061 | |
United States (40.4%) | |||
Trane Technologies plc | 13,220 | 2,456 | |
Waste Management Inc. | 14,382 | 2,388 | |
TE Connectivity Ltd. | 17,574 | 2,151 | |
* | Autodesk Inc. | 10,443 | 2,034 |
* | ANSYS Inc. | 6,369 | 1,999 |
Rockwell Automation Inc. | 6,960 | 1,973 | |
NextEra Energy Inc. | 25,349 | 1,943 | |
* | Aptiv plc | 18,212 | 1,873 |
Analog Devices Inc. | 3,273 | 589 | |
17,406 | |||
Total Common Stocks (Cost $40,752) | 41,767 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (2.4%) | |||
Money Market Fund (2.4%) | |||
2 | Vanguard Market Liquidity Fund 4.853% (Cost $1,042) | 10,426 | 1,043 |
Total Investments (99.4%) (Cost $41,794) | 42,810 | ||
Other Assets and Liabilities—Net (0.6%) | 248 | ||
Net Assets (100%) | 43,058 | ||
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, 2023, the aggregate value was $1,768,000, representing 4.1% of net assets. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $40,752) | 41,767 |
Affiliated Issuers (Cost $1,042) | 1,043 |
Total Investments in Securities | 42,810 |
Investment in Vanguard | 1 |
Foreign Currency, at Value (Cost $69) | 69 |
Receivables for Investment Securities Sold | 112 |
Receivables for Accrued Income | 32 |
Receivables for Capital Shares Issued | 112 |
Total Assets | 43,136 |
Liabilities | |
Payables for Investment Securities Purchased | 28 |
Payables to Investment Advisor | 33 |
Payables for Capital Shares Redeemed | 6 |
Payables to Vanguard | 6 |
Deferred Foreign Capital Gains Taxes | 5 |
Total Liabilities | 78 |
Net Assets | 43,058 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 41,780 |
Total Distributable Earnings (Loss) | 1,278 |
Net Assets | 43,058 |
Investor Shares—Net Assets | |
Applicable to 810,654 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 16,812 |
Net Asset Value Per Share—Investor Shares | $20.74 |
Admiral Shares—Net Assets | |
Applicable to 1,011,797 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 26,246 |
Net Asset Value Per Share—Admiral Shares | $25.94 |
November 2, 20221 to April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends2 | 177 |
Interest3 | 30 |
Total Income | 207 |
Expenses | |
Investment Advisory Fees—Note B | 51 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 9 |
Management and Administrative—Admiral Shares | 12 |
Custodian Fees | 17 |
Shareholders’ Reports—Investor Shares | 6 |
Shareholders’ Reports—Admiral Shares | 1 |
Trustees’ Fees and Expenses | — |
Other Expenses | 4 |
Total Expenses | 100 |
Expenses Paid Indirectly | (5) |
Net Expenses | 95 |
Net Investment Income | 112 |
Realized Net Gain (Loss) | |
Investment Securities Sold3 | 156 |
Foreign Currencies | (2) |
Realized Net Gain (Loss) | 154 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities3,4 | 1,011 |
Foreign Currencies | 1 |
Change in Unrealized Appreciation (Depreciation) | 1,012 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,278 |
1 | Commencement of subscription period for the fund. |
2 | Dividends are net of foreign withholding taxes of $12,000. |
3 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $30,000, ($1,000), less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $5,000. |
November 2, 20221 to April 30, 2023 | |
($000) | |
Increase (Decrease) in Net Assets | |
Operations | |
Net Investment Income | 112 |
Realized Net Gain (Loss) | 154 |
Change in Unrealized Appreciation (Depreciation) | 1,012 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,278 |
Distributions | |
Investor Shares | — |
Admiral Shares | — |
Total Distributions | — |
Capital Share Transactions | |
Investor Shares | 16,289 |
Admiral Shares | 25,491 |
Net Increase (Decrease) from Capital Share Transactions | 41,780 |
Total Increase (Decrease) | 43,058 |
Net Assets | |
Beginning of Period | — |
End of Period | 43,058 |
1 | Commencement of subscription period for the fund. |
Investor Shares | |
For a Share Outstanding Throughout Each Period | November 2, 20221 to April 30, 2023 |
Net Asset Value, Beginning of Period | $20.00 |
Investment Operations | |
Net Investment Income2 | .063 |
Net Realized and Unrealized Gain (Loss) on Investments | .677 |
Total from Investment Operations | .740 |
Distributions | |
Dividends from Net Investment Income | — |
Distributions from Realized Capital Gains | — |
Total Distributions | — |
Net Asset Value, End of Period | $20.74 |
Total Return3 | 3.70% |
Ratios/Supplemental Data | |
Net Assets, End of Period (Millions) | $17 |
Ratio of Total Expenses to Average Net Assets | 0.79%4 |
Ratio of Net Investment Income to Average Net Assets | 0.68% |
Portfolio Turnover Rate5 | 12% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was November 2, 2022, to November 15, 2022, during which time all assets were held in cash. Performance measurement began November 16, 2022, the first business day after the subscription period, at a net asset value of $20.00. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.75%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Admiral Shares | |
For a Share Outstanding Throughout Each Period | November 2, 20221 to April 30, 2023 |
Net Asset Value, Beginning of Period | $25.00 |
Investment Operations | |
Net Investment Income2 | .098 |
Net Realized and Unrealized Gain (Loss) on Investments | .842 |
Total from Investment Operations | .940 |
Distributions | |
Dividends from Net Investment Income | — |
Distributions from Realized Capital Gains | — |
Total Distributions | — |
Net Asset Value, End of Period | $25.94 |
Total Return3 | 3.76% |
Ratios/Supplemental Data | |
Net Assets, End of Period (Millions) | $26 |
Ratio of Total Expenses to Average Net Assets | 0.64%4 |
Ratio of Net Investment Income to Average Net Assets | 0.85% |
Portfolio Turnover Rate5 | 12% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was November 2, 2022, to November 15, 2022, during which time all assets were held in cash. Performance measurement began November 16, 2022, the first business day after the subscription period, at a net asset value of $25.00. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.60%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
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. | Ninety One North America. Inc. provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended April 30, 2023, the investment advisory fee represented an effective annual basic rate of 0.36% of the fund’s average net assets. |
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. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended April 30, 2023, custodian fee offset arrangements reduced the fund’s expenses by $5,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 17,406 | — | — | 17,406 |
Common Stocks—Other | — | 24,361 | — | 24,361 |
Temporary Cash Investments | 1,043 | — | — | 1,043 |
Total | 18,449 | 24,361 | — | 42,810 |
F. | As of April 30, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 41,799 |
Gross Unrealized Appreciation | 1,966 |
Gross Unrealized Depreciation | (955) |
Net Unrealized Appreciation (Depreciation) | 1,011 |
G. | During the six months ended April 30, 2023, the fund purchased $44,289,000 of investment securities and sold $3,717,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
November 2, 20221 to April 30, 2023 | ||
Amount ($000) | Shares (000) | |
Investor Shares | ||
Issued | 18,510 | 919 |
Issued in Lieu of Cash Distributions | — | — |
Redeemed | (2,221) | (108) |
Net Increase (Decrease)—Investor Shares | 16,289 | 811 |
Admiral Shares | ||
Issued | 26,440 | 1,049 |
Issued in Lieu of Cash Distributions | — | — |
Redeemed | (949) | (37) |
Net Increase (Decrease)—Admiral Shares | 25,491 | 1,012 |
1 | Commencement of subscription period for the fund. |
I. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
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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. There were no significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications filed 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 19, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD TRUSTEES’ EQUITY FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 19, 2023
VANGUARD TRUSTEES’ EQUITY FUND | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: June 19, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.