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: | John E. Schadl, 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, 2023—April 30, 2024
Item 1: Reports to Shareholders
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2024 | |||
International Value Fund | Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,152.90 | $2.03 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.97 | 1.91 |
United Kingdom | 15.7% |
Japan | 11.9 |
Germany | 7.9 |
France | 7.9 |
China | 6.6 |
Switzerland | 5.3 |
Hong Kong | 4.3 |
Brazil | 4.2 |
Ireland | 4.1 |
Netherlands | 3.8 |
India | 3.2 |
Canada | 3.2 |
South Korea | 2.6 |
Taiwan | 2.1 |
Singapore | 1.8 |
Indonesia | 1.6 |
United States | 1.5 |
Denmark | 1.5 |
Finland | 1.3 |
Spain | 1.3 |
Italy | 1.2 |
Australia | 1.1 |
Sweden | 1.0 |
Other | 4.9 |
Shares | Market Value• ($000) | |||||
Common Stocks (92.9%) | ||||||
Australia (1.1%) | ||||||
South32 Ltd. | 28,723,110 | 65,531 | ||||
National Australia Bank Ltd. | 2,014,460 | 43,669 | ||||
QBE Insurance Group Ltd. | 2,823,596 | 32,299 | ||||
141,499 | ||||||
Belgium (0.5%) | ||||||
KBC Group NV | 973,632 | 72,325 | ||||
Brazil (2.3%) | ||||||
Banco Bradesco SA ADR | 35,183,274 | 94,995 | ||||
Lojas Renner SA | 29,929,700 | 88,361 | ||||
Ambev SA ADR | 22,901,000 | 53,130 | ||||
Banco do Brasil SA | 6,267,600 | 33,096 | ||||
JBS SA | 3,454,000 | 15,592 | ||||
Odontoprev SA | 5,724,100 | 13,173 | ||||
Petroleo Brasileiro SA ADR | 757,150 | 12,849 | ||||
311,196 | ||||||
Canada (3.0%) | ||||||
Suncor Energy Inc. | 3,096,450 | 118,154 | ||||
Nutrien Ltd. | 1,853,160 | 97,716 | ||||
Great-West Lifeco Inc. | 1,676,471 | 49,576 | ||||
Stella-Jones Inc. | 618,600 | 35,939 | ||||
North West Co. Inc. | 1,166,811 | 33,072 | ||||
Saputo Inc. | 1,654,649 | 31,816 | ||||
Toronto-Dominion Bank | 521,200 | 30,918 | ||||
Alimentation Couche-Tard Inc. | 163,000 | 9,034 | ||||
* | CAE Inc. | 90,800 | 1,752 | |||
407,977 | ||||||
China (6.4%) | ||||||
Tencent Holdings Ltd. | 6,397,300 | 280,733 | ||||
Alibaba Group Holding Ltd. | 20,266,800 | 189,759 | ||||
Sungrow Power Supply Co. Ltd. Class A | 4,485,953 | 63,706 | ||||
ENN Energy Holdings Ltd. | 6,905,300 | 58,836 |
Shares | Market Value• ($000) | |||||
Ping An Insurance Group Co. of China Ltd. Class H | 12,665,500 | 57,401 | ||||
Alibaba Group Holding Ltd. ADR | 596,416 | 44,642 | ||||
China Overseas Land & Investment Ltd. | 20,748,633 | 38,154 | ||||
Li Ning Co. Ltd. | 11,467,500 | 30,020 | ||||
* | Trip.com Group Ltd. ADR | 603,258 | 29,113 | |||
Autohome Inc. ADR | 1,017,114 | 26,140 | ||||
Gree Electric Appliances Inc. of Zhuhai Class A | 3,871,653 | 22,461 | ||||
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 23,128,000 | 15,684 | ||||
856,649 | ||||||
Denmark (1.5%) | ||||||
Novo Nordisk A/S Class B | 1,091,379 | 139,961 | ||||
Carlsberg A/S Class B | 411,477 | 55,349 | ||||
195,310 | ||||||
Egypt (0.3%) | ||||||
Commercial International Bank - Egypt (CIB) (Registered) GDR | 24,883,498 | 36,895 | ||||
Finland (1.2%) | ||||||
Nokia OYJ | 20,115,499 | 73,127 | ||||
Sampo OYJ Class A | 1,437,160 | 58,325 | ||||
Nokian Renkaat OYJ | 3,679,749 | 32,083 | ||||
163,535 | ||||||
France (7.5%) | ||||||
Airbus SE | 920,230 | 151,431 | ||||
Air Liquide SA | 657,797 | 128,651 | ||||
Bureau Veritas SA | 3,158,611 | 92,123 | ||||
* | Engie SA | 4,774,930 | 82,896 | |||
Accor SA | 1,633,993 | 71,611 | ||||
Thales SA | 401,014 | 67,397 | ||||
Capgemini SE | 320,177 | 67,295 | ||||
TotalEnergies SE | 892,376 | 64,785 | ||||
Pernod Ricard SA | 364,325 | 55,101 | ||||
Kering SA | 142,136 | 49,814 |
Shares | Market Value• ($000) | |||||
STMicroelectronics NV | 1,067,637 | 42,304 | ||||
ArcelorMittal SA | 1,533,945 | 38,322 | ||||
Societe Generale SA | 1,310,528 | 35,312 | ||||
Bouygues SA | 952,603 | 35,109 | ||||
* | Teleperformance SE | 340,043 | 30,803 | |||
1,012,954 | ||||||
Germany (6.1%) | ||||||
SAP SE | 764,341 | 138,015 | ||||
BASF SE | 2,497,104 | 130,840 | ||||
Fresenius Medical Care AG | 1,871,370 | 78,790 | ||||
1 | Siemens Healthineers AG | 1,157,626 | 64,199 | |||
Continental AG | 877,636 | 56,881 | ||||
Merck KGaA | 355,733 | 56,526 | ||||
MTU Aero Engines AG | 220,853 | 53,207 | ||||
Bayerische Motoren Werke AG | 460,430 | 50,163 | ||||
Henkel AG & Co. KGaA | 693,440 | 49,864 | ||||
*,1 | Covestro AG | 961,698 | 48,166 | |||
Siemens AG (Registered) | 222,943 | 41,765 | ||||
Fresenius SE & Co. KGaA | 1,071,944 | 31,987 | ||||
FUCHS SE | 606,100 | 22,157 | ||||
822,560 | ||||||
Greece (0.4%) | ||||||
* | Piraeus Financial Holdings SA | 13,235,892 | 53,022 | |||
Hong Kong (4.1%) | ||||||
AIA Group Ltd. | 18,067,600 | 132,333 | ||||
* | Sands China Ltd. | 44,212,800 | 104,282 | |||
Techtronic Industries Co. Ltd. | 7,149,000 | 98,794 | ||||
Xinyi Glass Holdings Ltd. | 39,694,557 | 42,418 | ||||
Jardine Matheson Holdings Ltd. | 1,050,500 | 40,202 | ||||
* | Melco Resorts & Entertainment Ltd. ADR | 6,007,896 | 39,292 | |||
Galaxy Entertainment Group Ltd. | 7,365,000 | 33,046 | ||||
Sun Hung Kai Properties Ltd. | 2,353,500 | 21,711 | ||||
1 | ESR Group Ltd. | 17,798,800 | 19,505 | |||
CK Asset Holdings Ltd. | 3,309,500 | 14,117 | ||||
Hongkong Land Holdings Ltd. | 3,783,200 | 12,088 | ||||
557,788 | ||||||
India (3.1%) | ||||||
Adani Ports & Special Economic Zone Ltd. | 7,755,167 | 122,858 | ||||
ICICI Bank Ltd. ADR | 3,101,522 | 85,385 | ||||
HDFC Bank Ltd. | 4,309,015 | 78,254 | ||||
UPL Ltd. | 8,684,234 | 52,705 | ||||
* | Zee Entertainment Enterprises Ltd. | 20,670,093 | 36,328 | |||
HDFC Bank Ltd. ADR | 606,659 | 34,943 | ||||
410,473 |
Shares | Market Value• ($000) | |||||
Indonesia (1.6%) | ||||||
Bank Mandiri Persero Tbk. PT | 200,482,600 | 84,739 | ||||
Astra International Tbk. PT | 177,311,100 | 55,952 | ||||
Telkom Indonesia Persero Tbk. PT ADR | 2,086,352 | 40,580 | ||||
Selamat Sempurna Tbk. PT | 164,317,700 | 18,202 | ||||
Telkom Indonesia Persero Tbk. PT | 61,435,400 | 11,910 | ||||
211,383 | ||||||
Ireland (4.0%) | ||||||
Ryanair Holdings plc ADR | 1,729,030 | 235,494 | ||||
CRH plc | 1,930,838 | 149,509 | ||||
* | ICON plc | 278,713 | 83,023 | |||
Smurfit Kappa Group plc | 1,527,212 | 66,173 | ||||
534,199 | ||||||
Italy (1.2%) | ||||||
Eni SpA | 4,100,507 | 65,861 | ||||
* | Brembo NV | 4,533,153 | 57,918 | |||
Leonardo SpA | 1,560,870 | 35,872 | ||||
159,651 | ||||||
Japan (11.5%) | ||||||
Nidec Corp. | 2,072,500 | 97,061 | ||||
FANUC Corp. | 3,075,200 | 91,085 | ||||
Toyota Motor Corp. | 3,486,300 | 79,518 | ||||
Nitto Denko Corp. | 941,300 | 77,832 | ||||
Nomura Research Institute Ltd. | 2,974,800 | 71,984 | ||||
Kubota Corp. | 4,413,500 | 70,791 | ||||
Hoya Corp. | 575,700 | 66,747 | ||||
Denso Corp. | 3,891,700 | 66,327 | ||||
Nihon Kohden Corp. | 2,381,300 | 64,744 | ||||
Tokyo Electron Ltd. | 280,800 | 61,592 | ||||
Renesas Electronics Corp. | 3,721,000 | 60,413 | ||||
Kobe Steel Ltd. | 4,885,700 | 59,633 | ||||
MISUMI Group Inc. | 3,371,600 | 54,815 | ||||
Shin-Etsu Chemical Co. Ltd. | 1,398,300 | 54,127 | ||||
Recruit Holdings Co. Ltd. | 1,221,600 | 52,611 | ||||
Advantest Corp. | 1,625,700 | 50,886 | ||||
Omron Corp. | 1,453,510 | 49,888 | ||||
Makita Corp. | 1,712,500 | 49,578 | ||||
Suzuki Motor Corp. | 3,892,500 | 45,331 | ||||
2 | Ain Holdings Inc. | 1,074,600 | 40,670 | |||
Nomura Holdings Inc. | 6,973,200 | 39,677 | ||||
Marubeni Corp. | 2,089,000 | 37,218 | ||||
ITOCHU Corp. | 795,100 | 35,871 | ||||
Seria Co. Ltd. | 1,991,500 | 33,758 | ||||
Daikin Industries Ltd. | 244,400 | 33,359 | ||||
Nitori Holdings Co. Ltd. | 243,500 | 32,588 |
Shares | Market Value• ($000) | |||||
Toray Industries Inc. | 6,864,100 | 31,374 | ||||
SoftBank Group Corp. | 589,500 | 28,992 | ||||
1,538,470 | ||||||
Malaysia (0.3%) | ||||||
Westports Holdings Bhd. | 49,438,300 | 40,497 | ||||
Mexico (0.7%) | ||||||
Grupo Financiero Banorte SAB de CV | 10,206,500 | 101,018 | ||||
Netherlands (3.7%) | ||||||
Aegon Ltd. | 13,401,722 | 83,464 | ||||
ING Groep NV | 4,741,399 | 74,963 | ||||
ASM International NV | 116,425 | 73,236 | ||||
Coca-Cola Europacific Partners plc | 857,312 | 61,486 | ||||
Universal Music Group NV | 2,007,815 | 59,060 | ||||
* | IMCD NV | 357,486 | 53,936 | |||
Koninklijke Vopak NV | 1,100,920 | 43,719 | ||||
SBM Offshore NV | 2,044,880 | 30,210 | ||||
1 | ABN AMRO Bank NV | 979,952 | 15,697 | |||
495,771 | ||||||
Norway (0.4%) | ||||||
Bakkafrost P/F | 800,517 | 48,619 | ||||
Panama (0.7%) | ||||||
Copa Holdings SA Class A | 1,047,853 | 100,070 | ||||
Philippines (0.4%) | ||||||
Universal Robina Corp. | 17,351,600 | 30,981 | ||||
Puregold Price Club Inc. | 44,511,900 | 18,232 | ||||
49,213 | ||||||
Singapore (1.8%) | ||||||
United Overseas Bank Ltd. | 3,461,000 | 76,802 | ||||
Venture Corp. Ltd. | 7,175,300 | 76,024 | ||||
DBS Group Holdings Ltd. | 2,238,070 | 56,976 | ||||
Sembcorp Industries Ltd. | 7,205,300 | 28,159 | ||||
237,961 | ||||||
South Korea (2.5%) | ||||||
1 | Samsung Electronics Co. Ltd. GDR | 76,569 | 106,834 | |||
SK Hynix Inc. | 675,713 | 83,387 | ||||
Samsung Electronics Co. Ltd. | 1,454,744 | 80,864 | ||||
Shinhan Financial Group Co. Ltd. | 899,350 | 30,216 | ||||
Hyundai Mobis Co. Ltd. | 178,643 | 29,226 | ||||
330,527 | ||||||
Spain (1.2%) | ||||||
Banco Santander SA | 17,602,140 | 85,646 |
Shares | Market Value• ($000) | |||||
Banco Bilbao Vizcaya Argentaria SA | 5,953,455 | 64,380 | ||||
Industria de Diseno Textil SA | 295,598 | 13,459 | ||||
163,485 | ||||||
Sweden (0.9%) | ||||||
Assa Abloy AB Class B | 2,720,676 | 71,884 | ||||
Epiroc AB Class A | 2,855,718 | 52,795 | ||||
Boliden AB | 16,047 | 527 | ||||
125,206 | ||||||
Switzerland (5.1%) | ||||||
Roche Holding AG | 774,853 | 185,666 | ||||
Cie Financiere Richemont SA (Registered) Class A | 841,048 | 116,256 | ||||
Novartis AG (Registered) | 909,060 | 88,231 | ||||
UBS Group AG (Registered) | 3,333,642 | 87,552 | ||||
ABB Ltd. (Registered) | 1,785,313 | 86,746 | ||||
* | Sandoz Group AG | 1,813,507 | 61,635 | |||
1 | VAT Group AG | 52,741 | 26,258 | |||
Swatch Group AG | 108,250 | 22,745 | ||||
Holcim AG | 143,420 | 12,005 | ||||
687,094 | ||||||
Taiwan (2.0%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 11,233,000 | 268,960 | ||||
United Kingdom (15.1%) | ||||||
BP plc | 26,922,561 | 173,533 | ||||
RELX plc | 3,524,565 | 144,813 | ||||
Unilever plc | 2,709,022 | 140,140 | ||||
Compass Group plc | 4,366,861 | 121,459 | ||||
Berkeley Group Holdings plc | 1,857,658 | 109,092 | ||||
Prudential plc | 12,236,715 | 106,427 | ||||
Anglo American plc | 2,924,580 | 95,568 | ||||
IMI plc | 4,081,930 | 88,916 | ||||
HSBC Holdings plc (XHKG) | 9,670,800 | 83,128 | ||||
Smith & Nephew plc | 6,683,473 | 80,975 | ||||
HSBC Holdings plc | 8,603,307 | 74,573 | ||||
GSK plc | 3,585,041 | 74,379 | ||||
Taylor Wimpey plc | 39,765,987 | 65,161 | ||||
Smiths Group plc | 3,128,140 | 63,063 | ||||
Shell plc | 1,735,790 | 61,705 | ||||
Weir Group plc | 2,404,760 | 61,363 | ||||
Experian plc | 1,395,190 | 56,273 | ||||
London Stock Exchange Group plc | 508,592 | 56,067 | ||||
RS Group plc | 5,652,545 | 51,782 | ||||
Rentokil Initial plc | 9,991,298 | 50,436 | ||||
Renishaw plc | 951,926 | 49,083 | ||||
Travis Perkins plc | 4,609,642 | 43,148 | ||||
Kingfisher plc | 10,496,980 | 32,334 | ||||
Croda International plc | 562,064 | 32,193 | ||||
Victrex plc | 1,932,000 | 30,490 |
Shares | Market Value• ($000) | |||||
Whitbread plc | 751,265 | 29,609 | ||||
Lloyds Banking Group plc | 29,916,882 | 19,308 | ||||
Spectris plc | 442,099 | 18,287 | ||||
easyJet plc | 2,644,536 | 17,713 | ||||
2,031,018 | ||||||
United States (1.5%) | ||||||
Aon plc Class A | 335,640 | 94,654 | ||||
Chubb Ltd. | 269,468 | 67,001 | ||||
NXP Semiconductors NV | 141,521 | 36,256 | ||||
197,911 | ||||||
Vietnam (0.8%) | ||||||
Vietnam Dairy Products JSC | 22,019,800 | 56,395 | ||||
Phu Nhuan Jewelry JSC | 14,542,400 | 54,425 | ||||
110,820 | ||||||
Total Common Stocks (Cost $11,177,307) | 12,474,056 | |||||
Preferred Stocks (3.2%) | ||||||
Petroleo Brasileiro SA Preference Shares | 14,889,100 | 120,487 | ||||
Henkel AG & Co. KGaA Preference Shares | 1,027,713 | 81,643 | ||||
Itau Unibanco Holding SA Preference Shares | 9,848,800 | 59,481 | ||||
FUCHS SE Preference Shares | 1,248,935 | 58,324 | ||||
Jungheinrich AG Preference Shares | 1,404,172 | 52,213 | ||||
Gerdau SA Preference Shares | 14,370,552 | 50,535 | ||||
Total Preferred Stocks (Cost $353,859) | 422,683 |
Shares | Market Value• ($000) | |||||
Temporary Cash Investments (3.7%) | ||||||
Money Market Fund (3.7%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 5.394% (Cost $501,564) | 5,017,525 | 501,702 | |||
Total Investments (99.8%) (Cost $12,032,730) | 13,398,441 | |||||
Other Assets and Liabilities—Net (0.2%) | 30,410 | |||||
Net Assets (100%) | 13,428,851 |
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, 2024, the aggregate value was $280,659,000, representing 2.1% of net assets. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $34,295,000. |
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 $37,146,000 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 2024 | 1,527 | 173,124 | (2,539) |
MSCI Emerging Markets Index | June 2024 | 1,344 | 70,022 | (172) |
(2,711) |
Forward Currency Contracts | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized (Depreciation) ($000) | ||||
Counterparty | Receive | Deliver | |||||
JPMorgan Chase Bank, N.A. | 6/20/24 | USD | 7,437 | EUR | 6,774 | 192 | — |
State Street Bank & Trust Co. | 6/20/24 | USD | 149 | PLN | 586 | 5 | — |
Deutsche Bank AG | 6/20/24 | USD | 266 | SEK | 2,713 | 19 | — |
216 | — |
EUR—euro. |
PLN—Polish new zloty. |
SEK—Swedish krona. |
USD—U.S. dollar. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $11,531,166) | 12,896,739 |
Affiliated Issuers (Cost $501,564) | 501,702 |
Total Investments in Securities | 13,398,441 |
Investment in Vanguard | 412 |
Cash | 584 |
Foreign Currency, at Value (Cost $9,723) | 9,350 |
Cash Collateral Pledged—Futures Contracts | 7,882 |
Receivables for Investment Securities Sold | 61,804 |
Receivables for Accrued Income | 86,699 |
Receivables for Capital Shares Issued | 2,632 |
Unrealized Appreciation—Forward Currency Contracts | 216 |
Total Assets | 13,568,020 |
Liabilities | |
Payables for Investment Securities Purchased | 66,139 |
Collateral for Securities on Loan | 37,146 |
Payables for Capital Shares Redeemed | 17,313 |
Payables to Investment Advisor | 5,574 |
Payables to Vanguard | 2,043 |
Variation Margin Payable—Futures Contracts | 3,541 |
Deferred Foreign Capital Gains Taxes | 7,413 |
Total Liabilities | 139,169 |
Net Assets | 13,428,851 |
1 Includes $34,295,000 of securities on loan. | |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 11,640,492 |
Total Distributable Earnings (Loss) | 1,788,359 |
Net Assets | 13,428,851 |
Net Assets | |
Applicable to 327,763,072 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,428,851 |
Net Asset Value Per Share | $40.97 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 179,755 |
Interest2 | 13,763 |
Securities Lending—Net | 261 |
Total Income | 193,779 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 11,049 |
Performance Adjustment | 98 |
The Vanguard Group—Note C | |
Management and Administrative | 13,209 |
Marketing and Distribution | 289 |
Custodian Fees | 432 |
Shareholders’ Reports | 106 |
Trustees’ Fees and Expenses | 5 |
Other Expenses | 65 |
Total Expenses | 25,253 |
Net Investment Income | 168,526 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 350,100 |
Futures Contracts | 15,640 |
Forward Currency Contracts | (32) |
Foreign Currencies | 725 |
Realized Net Gain (Loss) | 366,433 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | 1,330,258 |
Futures Contracts | 8,983 |
Forward Currency Contracts | 216 |
Foreign Currencies | (1,349) |
Change in Unrealized Appreciation (Depreciation) | 1,338,108 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,873,067 |
1 | Dividends are net of foreign withholding taxes of $15,761,000. |
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 $13,587,000, $13,000, $3,000, and ($10,000), respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized Gain (Loss) is net of foreign capital gains taxes of $2,373,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $1,420,000. |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 168,526 | 363,233 | |
Realized Net Gain (Loss) | 366,433 | 271,881 | |
Change in Unrealized Appreciation (Depreciation) | 1,338,108 | 1,007,766 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,873,067 | 1,642,880 | |
Distributions | |||
Total Distributions | (373,465) | (341,585) | |
Capital Share Transactions | |||
Issued | 618,197 | 1,777,129 | |
Issued in Lieu of Cash Distributions | 330,509 | 304,194 | |
Redeemed | (1,441,393) | (2,693,213) | |
Net Increase (Decrease) from Capital Share Transactions | (492,687) | (611,890) | |
Total Increase (Decrease) | 1,006,915 | 689,405 | |
Net Assets | |||
Beginning of Period | 12,421,936 | 11,732,531 | |
End of Period | 13,428,851 | 12,421,936 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $36.55 | $32.96 | $43.76 | $32.48 | $36.63 | $35.86 |
Investment Operations | ||||||
Net Investment Income1 | .503 | 1.045 | 1.019 | 1.091 | .684 | 1.104 |
Net Realized and Unrealized Gain (Loss) on Investments | 5.040 | 3.528 | (10.011) | 10.824 | (3.723) | 1.669 |
Total from Investment Operations | 5.543 | 4.573 | (8.992) | 11.915 | (3.039) | 2.773 |
Distributions | ||||||
Dividends from Net Investment Income | (1.123) | (.983) | (1.087) | (.635) | (1.111) | (.943) |
Distributions from Realized Capital Gains | — | — | (.721) | — | — | (1.060) |
Total Distributions | (1.123) | (.983) | (1.808) | (.635) | (1.111) | (2.003) |
Net Asset Value, End of Period | $40.97 | $36.55 | $32.96 | $43.76 | $32.48 | $36.63 |
Total Return2 | 15.29% | 13.97% | -21.28% | 36.91% | -8.69% | 8.48% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,429 | $12,422 | $11,733 | $15,219 | $9,408 | $10,360 |
Ratio of Total Expenses to Average Net Assets3 | 0.38% | 0.39% | 0.38% | 0.36% | 0.35% | 0.37% |
Ratio of Net Investment Income to Average Net Assets | 2.51% | 2.72% | 2.68% | 2.56% | 2.05% | 3.15% |
Portfolio Turnover Rate | 22% | 29% | 37% | 33% | 72% | 38% |
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 0.00%, 0.01%, 0.00%, (0.01%), (0.02%), and (0.01%). |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 1,118,172 | — | — | 1,118,172 |
Common Stocks—Other | 681,198 | 10,674,686 | — | 11,355,884 |
Preferred Stocks | 230,503 | 192,180 | — | 422,683 |
Temporary Cash Investments | 501,702 | — | — | 501,702 |
Total | 2,531,575 | 10,866,866 | — | 13,398,441 |
Derivative Financial Instruments | ||||
Assets | ||||
Forward Currency Contracts | — | 216 | — | 216 |
Liabilities | ||||
Futures Contracts1 | 2,711 | — | — | 2,711 |
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. |
Statement of Assets and Liabilities | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Appreciation—Forward Currency Contracts | — | 216 | 216 |
Total Assets | — | 216 | 216 |
Unrealized Depreciation—Futures Contracts1 | 2,711 | — | 2,711 |
Total Liabilities | 2,711 | — | 2,711 |
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 | 15,640 | — | 15,640 |
Forward Currency Contracts | — | (32) | (32) |
Realized Net Gain (Loss) on Derivatives | 15,640 | (32) | 15,608 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 8,983 | — | 8,983 |
Forward Currency Contracts | — | 216 | 216 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 8,983 | 216 | 9,199 |
Amount ($000) | |
Tax Cost | 12,068,073 |
Gross Unrealized Appreciation | 2,430,424 |
Gross Unrealized Depreciation | (1,102,551) |
Net Unrealized Appreciation (Depreciation) | 1,327,873 |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 15,400 | 46,674 | |
Issued in Lieu of Cash Distributions | 8,397 | 8,593 | |
Redeemed | (35,924) | (71,293) | |
Net Increase (Decrease) in Shares Outstanding | (12,127) | (16,026) |
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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, 2024 | |||
Diversified Equity Fund | Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,223.70 | $1.94 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.12 | 1.76 |
Vanguard U.S. Growth Fund Investor Shares | 30.0% |
Vanguard Growth and Income Fund Investor Shares | 20.2 |
Vanguard WindsorTM Fund Investor Shares | 20.0 |
Vanguard Windsor II Fund Investor Shares | 15.1 |
Vanguard ExplorerTM Fund Investor Shares | 9.8 |
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 | 13,362,020 | 808,001 | ||||
Vanguard Growth and Income Fund Investor Shares | 9,109,839 | 542,946 | ||||
Vanguard Windsor Fund Investor Shares | 24,602,053 | 539,523 | ||||
Vanguard Windsor II Fund Investor Shares | 9,061,371 | 407,762 | ||||
Vanguard Explorer Fund Investor Shares | 2,354,875 | 263,299 | ||||
Vanguard Mid-Cap Growth Fund | 5,518,825 | 132,838 | ||||
Total Investment Companies (Cost $1,713,909) | 2,694,369 | |||||
Temporary Cash Investments (0.0%) | ||||||
Money Market Fund (0.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.394% (Cost $—) | 3 | — | |||
Total Investments (100.0%) (Cost $1,713,909) | 2,694,369 | |||||
Other Assets and Liabilities—Net (0.0%) | (895) | |||||
Net Assets (100%) | 2,693,474 |
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 $1,713,909) | 2,694,369 |
Receivables for Investment Securities Sold | 1,716 |
Receivables for Capital Shares Issued | 691 |
Total Assets | 2,696,776 |
Liabilities | |
Due to Custodian | 352 |
Payables for Capital Shares Redeemed | 2,950 |
Total Liabilities | 3,302 |
Net Assets | 2,693,474 |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 1,660,121 |
Total Distributable Earnings (Loss) | 1,033,353 |
Net Assets | 2,693,474 |
Net Assets | |
Applicable to 58,380,528 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,693,474 |
Net Asset Value Per Share | $46.14 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 15,634 |
Net Investment Income—Note B | 15,634 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 79,414 |
Affiliated Funds Sold | (6,691) |
Realized Net Gain (Loss) | 72,723 |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | 411,246 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 499,603 |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 15,634 | 22,497 | |
Realized Net Gain (Loss) | 72,723 | 84,075 | |
Change in Unrealized Appreciation (Depreciation) | 411,246 | 58,510 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 499,603 | 165,082 | |
Distributions | |||
Total Distributions | (115,708) | (242,790) | |
Capital Share Transactions | |||
Issued | 146,315 | 220,636 | |
Issued in Lieu of Cash Distributions | 107,439 | 224,491 | |
Redeemed | (190,339) | (301,556) | |
Net Increase (Decrease) from Capital Share Transactions | 63,415 | 143,571 | |
Total Increase (Decrease) | 447,310 | 65,863 | |
Net Assets | |||
Beginning of Period | 2,246,164 | 2,180,301 | |
End of Period | 2,693,474 | 2,246,164 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $39.45 | $41.38 | $56.40 | $40.98 | $37.95 | $35.88 |
Investment Operations | ||||||
Net Investment Income1 | .269 | .398 | .356 | .385 | .452 | .455 |
Capital Gain Distributions Received1 | 1.367 | 1.973 | 6.162 | 2.294 | 1.866 | 3.087 |
Net Realized and Unrealized Gain (Loss) on Investments | 7.097 | .358 | (17.785) | 15.438 | 3.447 | .575 |
Total from Investment Operations | 8.733 | 2.729 | (11.267) | 18.117 | 5.765 | 4.117 |
Distributions | ||||||
Dividends from Net Investment Income | (.403) | (.256) | (.317) | (.346) | (.369) | (.383) |
Distributions from Realized Capital Gains | (1.640) | (4.403) | (3.436) | (2.351) | (2.366) | (1.664) |
Total Distributions | (2.043) | (4.659) | (3.753) | (2.697) | (2.735) | (2.047) |
Net Asset Value, End of Period | $46.14 | $39.45 | $41.38 | $56.40 | $40.98 | $37.95 |
Total Return2 | 22.37% | 7.88% | -21.42% | 45.67% | 15.73% | 12.82% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $2,693 | $2,246 | $2,180 | $2,965 | $1,919 | $1,789 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
Ratio of Net Investment Income to Average Net Assets | 1.05% | 0.99% | 0.77% | 0.76% | 1.19% | 1.27% |
Portfolio Turnover Rate | 3% | 7% | 12% | 6% | 14% | 9% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
Amount ($000) | |
Tax Cost | 1,719,307 |
Gross Unrealized Appreciation | 989,818 |
Gross Unrealized Depreciation | (14,756) |
Net Unrealized Appreciation (Depreciation) | 975,062 |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 3,228 | 5,424 | |
Issued in Lieu of Cash Distributions | 2,435 | 6,342 | |
Redeemed | (4,222) | (7,518) | |
Net Increase (Decrease) in Shares Outstanding | 1,441 | 4,248 |
Current Period Transactions | ||||||||
Oct. 31, 2023 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, 2024 Market Value ($000) | |
Vanguard Explorer Fund | 217,835 | 2,497 | 2,300 | (336) | 45,603 | 1,363 | 710 | 263,299 |
Vanguard Growth and Income Fund | 456,381 | 40,337 | 17,358 | 459 | 63,127 | 2,779 | 35,323 | 542,946 |
Vanguard Market Liquidity Fund | — | NA1 | NA1 | — | — | 2 | — | — |
Vanguard Mid-Cap Growth Fund | 106,299 | 772 | — | — | 25,767 | 499 | — | 132,838 |
Vanguard U.S. Growth Fund | 676,186 | 2,377 | 50,277 | (6,746) | 186,461 | 2,198 | — | 808,001 |
Vanguard Windsor Fund | 450,611 | 52,432 | 2,702 | (74) | 39,256 | 5,473 | 30,453 | 539,523 |
Vanguard Windsor II Fund | 340,982 | 16,248 | 506 | 6 | 51,032 | 3,320 | 12,928 | 407,762 |
Total | 2,248,294 | 114,663 | 73,143 | (6,691) | 411,246 | 15,634 | 79,414 | 2,694,369 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 21 |
Liquidity Risk Management | 23 |
• | 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, 2024 | |||
Emerging Markets Select Stock Fund | Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,142.40 | $4.00 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,021.13 | 3.77 |
China | 30.3% |
India | 12.8 |
Taiwan | 12.6 |
Brazil | 11.6 |
South Korea | 5.4 |
United States | 5.1 |
Thailand | 3.6 |
Hong Kong | 3.3 |
South Africa | 2.9 |
Mexico | 2.0 |
Indonesia | 1.6 |
Canada | 1.3 |
United Kingdom | 1.2 |
Saudi Arabia | 1.1 |
Other | 5.2 |
Shares | Market Value• ($000) | ||
Common Stocks (91.8%) | |||
Argentina (0.2%) | |||
* | YPF SA ADR | 69,534 | 1,527 |
Brazil (8.8%) | |||
Petroleo Brasileiro SA ADR (XNYS) | 623,317 | 10,578 | |
Vale SA ADR | 496,697 | 6,045 | |
Banco Bradesco SA ADR | 2,211,497 | 5,971 | |
Ambev SA | 1,982,566 | 4,639 | |
Natura & Co. Holding SA | 1,136,600 | 3,631 | |
Banco Do Brasil SA | 660,400 | 3,487 | |
Vale SA | 266,000 | 3,242 | |
Neoenergia SA | 763,100 | 2,819 | |
Cia de Saneamento Basico do Estado de Sao Paulo | 175,147 | 2,726 | |
Centrais Eletricas Brasileiras SA | 360,204 | 2,626 | |
Localiza Rent a Car SA (BVMF) | 242,594 | 2,291 | |
Petroleo Brasileiro SA ADR | 133,210 | 2,147 | |
Itau Unibanco Holding SA ADR | 347,348 | 2,101 | |
B3 SA - Brasil Bolsa Balcao | 971,300 | 2,018 | |
Lojas Renner SA | 678,437 | 2,003 | |
TIM SA | 562,789 | 1,909 | |
Banco Santander Brasil SA | 331,107 | 1,843 | |
Petroleo Brasileiro SA | 215,139 | 1,834 | |
PRIO SA | 193,204 | 1,786 | |
Weg SA | 160,900 | 1,225 | |
Gerdau SA ADR | 266,692 | 928 | |
BB Seguridade Participacoes SA | 92,691 | 575 | |
Raia Drogasil SA | 94,424 | 465 | |
*,1 | Hapvida Participacoes e Investimentos SA | 566,462 | 403 |
1 | Rede D'Or Sao Luiz SA | 71,700 | 359 |
67,651 | |||
Canada (1.2%) | |||
First Quantum Minerals Ltd. | 252,084 | 3,201 | |
Lundin Mining Corp. | 262,895 | 3,002 | |
Parex Resources Inc. | 122,955 | 2,144 | |
* | Valeura Energy Inc. | 281,058 | 1,137 |
9,484 |
Shares | Market Value• ($000) | ||
Chile (0.1%) | |||
Banco De Chile | 9,382,194 | 1,041 | |
China (28.6%) | |||
Tencent Holdings Ltd. | 800,627 | 35,134 | |
Alibaba Group Holding Ltd. | 2,317,976 | 21,703 | |
China Merchants Bank Co. Ltd. Class H | 2,141,938 | 9,276 | |
Haier Smart Home Co. Ltd. Class H | 2,329,800 | 8,630 | |
China Overseas Land & Investment Ltd. | 3,834,479 | 7,051 | |
Ping An Insurance Group Co. of China Ltd. Class H | 1,529,023 | 6,930 | |
Contemporary Amperex Technology Co. Ltd. Class A (XSHE) | 206,783 | 5,783 | |
Zijin Mining Group Co. Ltd. Class H | 2,611,622 | 5,697 | |
Weichai Power Co. Ltd. Class H | 2,461,000 | 5,029 | |
* | Baidu Inc. Class A | 385,900 | 4,999 |
Aluminum Corp. of China Ltd. Class H | 6,808,851 | 4,516 | |
Kweichow Moutai Co. Ltd. Class A | 19,000 | 4,455 | |
JD.com Inc. ADR | 138,261 | 3,994 | |
* | Baidu Inc. ADR | 37,651 | 3,893 |
Industrial & Commercial Bank of China Ltd. Class H | 6,538,724 | 3,506 | |
China Construction Bank Corp. Class H | 4,934,995 | 3,193 | |
ZTO Express Cayman Inc. ADR | 144,870 | 3,041 | |
Li Ning Co. Ltd. | 1,135,518 | 2,973 | |
KE Holdings Inc. ADR | 188,688 | 2,853 | |
Shenzhou International Group Holdings Ltd. | 283,000 | 2,782 | |
*,1 | Meituan Class B | 201,293 | 2,749 |
* | Trip.com Group Ltd. | 55,218 | 2,689 |
Brilliance China Automotive Holdings Ltd. | 2,952,000 | 2,451 | |
Zhejiang Longsheng Group Co. Ltd. Class A | 1,933,100 | 2,438 | |
H World Group Ltd. ADR | 64,752 | 2,377 | |
1 | Longfor Group Holdings Ltd. | 1,425,826 | 2,112 |
Shares | Market Value• ($000) | ||
ENN Energy Holdings Ltd. | 241,274 | 2,056 | |
China Resources Land Ltd. | 569,440 | 2,048 | |
Midea Group Co. Ltd. Class A | 204,486 | 1,967 | |
* | Shanghai International Airport Co. Ltd. Class A | 376,112 | 1,951 |
GF Securities Co. Ltd. Class H | 1,948,400 | 1,941 | |
Wuliangye Yibin Co. Ltd. Class A | 93,709 | 1,938 | |
CIMC Enric Holdings Ltd. | 1,810,000 | 1,791 | |
Anker Innovations Technology Co. Ltd. Class A | 145,100 | 1,724 | |
* | Trip.com Group Ltd. ADR | 35,566 | 1,716 |
Yum China Holdings Inc. | 45,330 | 1,655 | |
ANTA Sports Products Ltd. | 144,613 | 1,637 | |
* | Tencent Music Entertainment Group ADR | 125,010 | 1,569 |
* | Luckin Coffee Inc. ADR | 74,415 | 1,563 |
PICC Property & Casualty Co. Ltd. Class H | 1,254,000 | 1,558 | |
JD.com Inc. Class A | 105,501 | 1,520 | |
Beijing Oriental Yuhong Waterproof Technology Co. Ltd. Class A | 745,000 | 1,502 | |
*,1 | Kuaishou Technology | 209,383 | 1,468 |
* | PDD Holdings Inc. ADR | 10,880 | 1,362 |
1 | China Tourism Group Duty Free Corp. Ltd. Class H | 142,707 | 1,257 |
KE Holdings Inc. Class A | 234,770 | 1,201 | |
* | Didi Global Inc. ADR | 239,521 | 1,183 |
* | Li Auto Inc. ADR | 44,789 | 1,177 |
Anhui Conch Cement Co. Ltd. Class H | 504,714 | 1,171 | |
Bank of Ningbo Co. Ltd. Class A | 357,300 | 1,128 | |
JOYY Inc. ADR | 31,357 | 1,023 | |
Ping An Bank Co. Ltd. Class A | 680,340 | 1,011 | |
Zhongsheng Group Holdings Ltd. | 539,508 | 984 | |
1 | Ganfeng Lithium Group Co. Ltd. Class H | 331,569 | 972 |
China National Building Material Co. Ltd. Class H | 2,433,983 | 942 | |
Proya Cosmetics Co. Ltd. Class A | 60,379 | 911 | |
China Tourism Group Duty Free Corp. Ltd. Class A | 83,911 | 861 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 280,540 | 860 | |
Midea Group Co. Ltd. Class A (XSEC) | 89,200 | 859 | |
BYD Co. Ltd. Class H | 30,096 | 825 | |
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class A | 702,150 | 823 |
Shares | Market Value• ($000) | ||
China Longyuan Power Group Corp. Ltd. Class H | 1,167,350 | 818 | |
Aluminum Corp of China Ltd. Class A | 796,943 | 814 | |
Kanzhun Ltd. ADR | 38,278 | 757 | |
* | BeiGene Ltd. | 62,550 | 742 |
1 | CSC Financial Co. Ltd. Class H | 877,657 | 670 |
Ping An Insurance Group Co. of China Ltd. Class A | 117,700 | 669 | |
Tsingtao Brewery Co. Ltd. Class H | 79,837 | 575 | |
Yihai International Holding Ltd. | 255,292 | 526 | |
Minth Group Ltd. | 289,595 | 494 | |
1 | Haidilao International Holding Ltd. | 207,557 | 468 |
China Petroleum & Chemical Corp. Class H | 777,885 | 464 | |
Alibaba Group Holding Ltd. ADR | 6,038 | 452 | |
Jiangsu Hengrui Medicine Co. Ltd. Class A | 62,445 | 396 | |
* | Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd. | 15,100 | 321 |
China National Accord Medicines Corp. Ltd. Class A (XSHE) | 62,900 | 305 | |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 426,318 | 289 | |
* | Zai Lab Ltd. ADR | 17,721 | 280 |
* | Zai Lab Ltd. | 171,600 | 276 |
Sinopharm Group Co. Ltd. Class H | 108,500 | 274 | |
1 | Yadea Group Holdings Ltd. | 142,000 | 273 |
Lufax Holding Ltd. ADR | 61,296 | 269 | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A | 32,000 | 265 | |
1 | China Resources Mixc Lifestyle Services Ltd. | 62,200 | 219 |
Amoy Diagnostics Co. Ltd. Class A (XSHE) | 62,080 | 187 | |
Shanghai Jinjiang International Hotels Co. Ltd. Class A | 32,100 | 128 | |
*,1 | Wuxi Biologics Cayman Inc. | 69,949 | 121 |
*,2 | GDS Holdings Ltd. ADR | 13,994 | 114 |
Amoy Diagnostics Co. Ltd. Class A | 37,094 | 112 | |
219,686 | |||
Egypt (0.0%) | |||
3 | Commercial International Bank Egypt SAE GDR (Registered) | 2 | — |
Shares | Market Value• ($000) | ||
Greece (0.5%) | |||
* | Alpha Services and Holdings SA | 2,024,308 | 3,418 |
HELLENiQ ENERGY Holdings SA | 48,389 | 434 | |
3,852 | |||
Hong Kong (3.1%) | |||
1 | WH Group Ltd. | 7,176,500 | 5,216 |
Pacific Basin Shipping Ltd. | 11,149,975 | 3,861 | |
Yue Yuen Industrial Holdings Ltd. | 2,025,500 | 3,586 | |
Galaxy Entertainment Group Ltd. | 760,000 | 3,410 | |
AIA Group Ltd. | 381,978 | 2,798 | |
Man Wah Holdings Ltd. | 2,926,804 | 2,136 | |
Orient Overseas International Ltd. | 70,152 | 1,023 | |
Chow Tai Fook Jewellery Group Ltd. | 622,435 | 847 | |
1 | BOC Aviation Ltd. | 73,200 | 582 |
Wharf Holdings Ltd. | 35,630 | 115 | |
23,574 | |||
Hungary (0.6%) | |||
OTP Bank Nyrt | 75,994 | 3,767 | |
MOL Hungarian Oil & Gas plc | 115,903 | 950 | |
4,717 | |||
India (12.1%) | |||
Reliance Industries Ltd. | 464,193 | 16,295 | |
HDFC Bank Ltd. | 514,056 | 9,336 | |
Axis Bank Ltd. | 429,366 | 5,993 | |
Shriram Finance Ltd. | 161,434 | 4,925 | |
ICICI Bank Ltd. ADR | 143,252 | 3,944 | |
UltraTech Cement Ltd. | 29,223 | 3,485 | |
Tata Consultancy Services Ltd. | 74,386 | 3,395 | |
* | Jio Financial Services Ltd. | 708,060 | 3,189 |
Bharti Airtel Ltd. (XNSE) | 192,407 | 3,046 | |
Adani Ports & Special Economic Zone Ltd. | 190,552 | 3,019 | |
Larsen & Toubro Ltd. | 58,691 | 2,523 | |
Tech Mahindra Ltd. | 155,448 | 2,342 | |
Infosys Ltd. ADR | 129,270 | 2,160 | |
Godrej Consumer Products Ltd. | 128,144 | 1,870 | |
Varun Beverages Ltd. | 103,714 | 1,835 | |
* | Delhivery Ltd. | 333,385 | 1,792 |
Ambuja Cements Ltd. | 229,376 | 1,700 | |
HDFC Bank Ltd. ADR | 28,660 | 1,651 | |
1 | HDFC Life Insurance Co. Ltd. | 235,965 | 1,647 |
Tata Consumer Products Ltd. | 109,378 | 1,448 | |
Bajaj Auto Ltd. | 12,470 | 1,331 | |
Mahindra & Mahindra Ltd. | 50,756 | 1,309 | |
1 | SBI Life Insurance Co. Ltd. | 74,695 | 1,285 |
Ashok Leyland Ltd. | 555,608 | 1,280 | |
* | Amber Enterprises India Ltd. | 22,930 | 1,053 |
Colgate-Palmolive India Ltd. | 30,360 | 1,027 | |
UPL Ltd. | 168,115 | 1,020 | |
* | PB Fintech Ltd. | 63,732 | 965 |
Shares | Market Value• ($000) | ||
Havells India Ltd. | 41,919 | 834 | |
Eicher Motors Ltd. | 15,062 | 829 | |
Tata Steel Ltd. | 411,728 | 812 | |
Jubilant Foodworks Ltd. | 143,434 | 795 | |
ICICI Bank Ltd. | 55,389 | 763 | |
KEC International Ltd. | 78,473 | 702 | |
Hindustan Unilever Ltd. | 26,094 | 697 | |
Apollo Hospitals Enterprise Ltd. | 8,954 | 637 | |
Cipla Ltd. | 31,635 | 530 | |
Oil & Natural Gas Corp. Ltd. | 120,416 | 407 | |
Torrent Pharmaceuticals Ltd. | 11,598 | 366 | |
Fortis Healthcare Ltd. | 45,835 | 241 | |
Infosys Ltd. | 5,057 | 85 | |
92,563 | |||
Indonesia (1.5%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 35,213,899 | 10,659 | |
Mitra Adiperkasa Tbk PT | 5,478,200 | 530 | |
Map Aktif Adiperkasa PT | 4,246,500 | 206 | |
11,395 | |||
Japan (0.1%) | |||
Nexon Co. Ltd. | 37,414 | 583 | |
Kazakhstan (0.3%) | |||
Kaspi.KZ JSC ADR (Registered) | 14,894 | 1,754 | |
*,1 | Air Astana JSC GDR | 56,396 | 477 |
2,231 | |||
Mexico (1.9%) | |||
Grupo Financiero Banorte SAB de CV Class O | 552,799 | 5,471 | |
Wal-Mart de Mexico SAB de CV | 838,326 | 3,128 | |
Fomento Economico Mexicano SAB de CV ADR | 21,720 | 2,556 | |
Grupo Mexico SAB de CV Series B | 247,963 | 1,532 | |
* | Cemex SAB de CV ADR | 160,789 | 1,272 |
Corp. Inmobiliaria Vesta SAB de CV | 104,900 | 371 | |
14,330 | |||
Other (0.1%) | |||
4 | Vanguard FTSE Emerging Markets ETF | 15,271 | 644 |
Philippines (0.4%) | |||
Bdo Unibank Inc. | 877,661 | 2,250 | |
Ayala Land Inc. | 857,800 | 425 | |
2,675 | |||
Poland (0.4%) | |||
*,1 | Allegro.eu SA | 228,698 | 1,907 |
KGHM Polska Miedz SA | 29,992 | 1,031 | |
2,938 | |||
Romania (0.2%) | |||
Banca Transilvania SA | 265,270 | 1,613 | |
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 | — |
Shares | Market Value• ($000) | ||
*,3 | Moscow Exchange MICEX-RTS PJSC | 536,630 | — |
*,3 | MMC Norilsk Nickel PJSC | 124,700 | — |
*,3 | Sberbank of Russia PJSC ADR | 476,234 | — |
*,3 | LUKOIL PJSC ADR | 102,385 | — |
*,3 | Novatek PJSC GDR (Registered) | 6,724 | — |
*,2,3 | Ozon Holdings plc ADR | 35,000 | — |
*,3 | Gazprom PJSC | 926,846 | — |
— | |||
Saudi Arabia (1.0%) | |||
Saudi Awwal Bank | 253,548 | 2,751 | |
1 | Saudi Arabian Oil Co. | 340,525 | 2,728 |
Saudi Tadawul Group Holding Co. | 26,208 | 1,850 | |
Mouwasat Medical Services Co. | 9,751 | 349 | |
7,678 | |||
Singapore (0.5%) | |||
Wilmar International Ltd. | 1,612,000 | 3,789 | |
South Africa (2.7%) | |||
Anglogold Ashanti plc | 303,830 | 6,985 | |
Sasol Ltd. | 468,153 | 3,289 | |
Absa Group Ltd. | 305,994 | 2,360 | |
FirstRand Ltd. | 530,666 | 1,832 | |
Gold Fields Ltd. | 99,296 | 1,606 | |
Harmony Gold Mining Co. Ltd. | 167,978 | 1,454 | |
Mr Price Group Ltd. | 99,540 | 922 | |
Impala Platinum Holdings Ltd. | 205,024 | 913 | |
Naspers Ltd. Class N | 3,194 | 611 | |
Discovery Ltd. | 84,570 | 539 | |
Clicks Group Ltd. | 17,733 | 276 | |
20,787 | |||
South Korea (4.7%) | |||
Samsung Electronics Co. Ltd. (XKRX) | 235,151 | 13,071 | |
SK Hynix Inc. | 41,581 | 5,131 | |
Hyundai Motor Co. | 20,627 | 3,710 | |
Hankook Tire & Technology Co. Ltd. | 75,814 | 3,217 | |
KB Financial Group Inc. | 50,491 | 2,739 | |
Shinhan Financial Group Co. Ltd. | 53,870 | 1,810 | |
DB Insurance Co. Ltd. | 21,753 | 1,526 | |
Hyundai Mobis Co. Ltd. | 9,002 | 1,473 | |
WONIK IPS Co. Ltd. | 52,731 | 1,404 | |
Samsung Fire & Marine Insurance Co. Ltd. | 4,179 | 935 | |
NAVER Corp. | 4,060 | 536 | |
* | Samsung Engineering Co. Ltd. | 24,757 | 469 |
36,021 | |||
Spain (0.2%) | |||
Banco Bilbao Vizcaya Argentaria SA. ADR | 121,425 | 1,301 | |
Taiwan (11.8%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. (XTAI) | 2,607,007 | 62,422 | |
Hon Hai Precision Industry Co. Ltd. | 1,292,685 | 6,154 |
Shares | Market Value• ($000) | ||
Accton Technology Corp. | 272,300 | 3,815 | |
United Integrated Services Co. Ltd. | 253,000 | 3,053 | |
MediaTek Inc. | 94,000 | 2,834 | |
Silergy Corp. | 158,000 | 2,098 | |
Chroma ATE Inc. | 248,644 | 2,019 | |
ASPEED Technology Inc. | 19,424 | 1,819 | |
Unimicron Technology Corp. | 316,000 | 1,747 | |
Nanya Technology Corp. | 631,286 | 1,274 | |
Alchip Technologies Ltd. | 13,095 | 1,235 | |
Uni-President Enterprises Corp. | 518,000 | 1,215 | |
Realtek Semiconductor Corp. | 77,000 | 1,215 | |
90,900 | |||
Thailand (3.4%) | |||
PTT Exploration & Production PCL | 1,408,836 | 5,893 | |
SCB X PCL | 1,623,400 | 4,649 | |
Kasikornbank PCL | 975,929 | 3,426 | |
Airports of Thailand PCL | 1,544,610 | 2,712 | |
Charoen Pokphand Foods PCL | 4,912,912 | 2,620 | |
* | True Corp. PCL NVDR | 10,793,200 | 2,226 |
Bangkok Bank PCL NVDR | 469,100 | 1,731 | |
Indorama Ventures PCL NVDR | 2,082,900 | 1,337 | |
Bangkok Bank PCL (Registered) | 215,800 | 796 | |
Bangkok Dusit Medical Services PCL Class F | 644,200 | 503 | |
Kasikornbank PCL NVDR | 139,179 | 488 | |
26,381 | |||
Turkey (0.3%) | |||
Akbank TAS | 1,144,079 | 2,106 | |
United Arab Emirates (0.7%) | |||
Abu Dhabi Commercial Bank PJSC | 1,433,418 | 3,255 | |
Emirates NBD Bank PJSC | 296,038 | 1,371 | |
* | Emaar Properties PJSC | 299,781 | 670 |
Burjeel Holdings plc | 271,988 | 217 | |
5,513 | |||
United Kingdom (1.1%) | |||
Anglo American plc | 102,071 | 3,335 | |
Standard Chartered plc | 228,303 | 1,962 | |
1 | Airtel Africa plc | 1,251,220 | 1,728 |
Fresnillo plc | 235,079 | 1,628 | |
8,653 | |||
United States (4.8%) | |||
Freeport-McMoRan Inc. | 138,596 | 6,921 | |
* | MercadoLibre Inc. | 4,384 | 6,395 |
Credicorp Ltd. | 35,039 | 5,803 | |
Cognizant Technology Solutions Corp. Class A | 51,280 | 3,368 | |
* | Coupang Inc. | 108,647 | 2,444 |
* | Grab Holdings Ltd. Class A | 621,548 | 2,175 |
* | NU Holdings Ltd. Class A | 174,193 | 1,892 |
* | Sea Ltd. ADR | 29,651 | 1,874 |
Ternium SA ADR | 43,418 | 1,828 |
Shares | Market Value• ($000) | ||
Copa Holdings SA Class A | 16,643 | 1,589 | |
* | Fabrinet | 7,555 | 1,307 |
* | WNS Holdings Ltd. | 13,243 | 555 |
Patria Investments Ltd. Class A | 29,232 | 392 | |
* | MakeMyTrip Ltd. | 4,903 | 325 |
* | Legend Biotech Corp. ADR | 5,043 | 221 |
37,089 | |||
Vietnam (0.5%) | |||
Vietnam Dairy Products JSC | 1,482,100 | 3,796 | |
Total Common Stocks (Cost $647,144) | 704,518 | ||
Preferred Stocks (2.5%) | |||
Cia Energetica de Minas Gerais Preference Shares | 2,154,184 | 4,053 | |
Petroleo Brasileiro SA Preference Shares | 490,700 | 3,971 | |
Banco Bradesco SA Preference Shares | 1,089,100 | 2,937 | |
Samsung Electronics Co. Ltd. Preference Shares | 61,568 | 2,875 | |
Raizen SA Preference Shares | 4,315,635 | 2,543 | |
Itau Unibanco Holding SA Preference Shares | 344,300 | 2,079 | |
* | Braskem SA Preference Shares Class A | 201,337 | 825 |
Total Preferred Stocks (Cost $18,894) | 19,283 | ||
Temporary Cash Investments (5.5%) | |||
Money Market Fund (5.5%) | |||
5,6 | Vanguard Market Liquidity Fund, 5.394% (Cost $41,930) | 419,412 | 41,937 |
Total Investments (99.8%) (Cost $707,968) | 765,738 | ||
Other Assets and Liabilities— Net (0.2%) | 1,470 | ||
Net Assets (100%) | 767,208 | ||
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, 2024, the aggregate value was $26,641,000, representing 3.5% of net assets. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $113,000. |
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 $754,000 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 2024 | 622 | 32,406 | 88 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $665,408) | 723,157 |
Affiliated Issuers (Cost $42,560) | 42,581 |
Total Investments in Securities | 765,738 |
Investment in Vanguard | 23 |
Cash Collateral Pledged—Futures Contracts | 957 |
Foreign Currency, at Value (Cost $1,242) | 1,270 |
Receivables for Investment Securities Sold | 4,603 |
Receivables for Accrued Income | 3,500 |
Receivables for Capital Shares Issued | 294 |
Total Assets | 776,385 |
Liabilities | |
Due to Custodian | 930 |
Payables for Investment Securities Purchased | 3,164 |
Collateral for Securities on Loan | 754 |
Payables to Investment Advisor | 824 |
Payables for Capital Shares Redeemed | 536 |
Payables to Vanguard | 93 |
Variation Margin Payable—Futures Contracts | 445 |
Deferred Foreign Capital Gains Taxes | 2,431 |
Total Liabilities | 9,177 |
Net Assets | 767,208 |
1 Includes $113,000 of securities on loan. | |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 782,640 |
Total Distributable Earnings (Loss) | (15,432) |
Net Assets | 767,208 |
Net Assets | |
Applicable to 35,836,533 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 767,208 |
Net Asset Value Per Share | $21.41 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 8,794 |
Dividends—Affiliated Issuers | 89 |
Interest—Unaffiliated Issuers | 21 |
Interest—Affiliated Issuers | 982 |
Securities Lending—Net | 19 |
Total Income | 9,905 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,934 |
Performance Adjustment | (279) |
The Vanguard Group—Note C | |
Management and Administrative | 985 |
Marketing and Distribution | 16 |
Custodian Fees | 82 |
Shareholders’ Reports | 19 |
Trustees’ Fees and Expenses | — |
Other Expenses | 8 |
Total Expenses | 2,765 |
Net Investment Income | 7,140 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | — |
Investment Securities Sold—Unaffiliated Issuers | 306 |
Investment Securities Sold—Affiliated Issuers | 90 |
Futures Contracts | 1,539 |
Forward Currency Contracts | 6 |
Foreign Currencies | (270) |
Realized Net Gain (Loss) | 1,671 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 87,695 |
Investment Securities—Affiliated Issuers | 66 |
Futures Contracts | 1,857 |
Foreign Currencies | (52) |
Change in Unrealized Appreciation (Depreciation) | 89,566 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 98,377 |
1 | Dividends are net of foreign withholding taxes of $2,637,000. |
2 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $822,000. |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 7,140 | 22,523 | |
Realized Net Gain (Loss) | 1,671 | (12,270) | |
Change in Unrealized Appreciation (Depreciation) | 89,566 | 83,803 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 98,377 | 94,056 | |
Distributions | |||
Total Distributions | (22,705) | (25,482) | |
Capital Share Transactions | |||
Issued | 55,352 | 141,225 | |
Issued in Lieu of Cash Distributions | 19,402 | 21,665 | |
Redeemed | (91,790) | (152,294) | |
Net Increase (Decrease) from Capital Share Transactions | (17,036) | 10,596 | |
Total Increase (Decrease) | 58,636 | 79,170 | |
Net Assets | |||
Beginning of Period | 708,572 | 629,402 | |
End of Period | 767,208 | 708,572 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | Year Ended October 31, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $19.33 | $17.42 | $27.09 | $22.18 | $21.87 | $19.68 |
Investment Operations | ||||||
Net Investment Income1 | .197 | .606 | .715 | .457 | .298 | .4742 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.512 | 2.019 | (8.724) | 4.729 | .483 | 2.208 |
Total from Investment Operations | 2.709 | 2.625 | (8.009) | 5.186 | .781 | 2.682 |
Distributions | ||||||
Dividends from Net Investment Income | (.629) | (.715) | (.486) | (.276) | (.471) | (.492) |
Distributions from Realized Capital Gains | — | — | (1.175) | — | — | — |
Total Distributions | (.629) | (.715) | (1.661) | (.276) | (.471) | (.492) |
Net Asset Value, End of Period | $21.41 | $19.33 | $17.42 | $27.09 | $22.18 | $21.87 |
Total Return3 | 14.24% | 15.10% | -31.16% | 23.44% | 3.51% | 13.96% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $767 | $709 | $629 | $974 | $670 | $702 |
Ratio of Total Expenses to Average Net Assets4 | 0.75% | 0.80%5 | 0.78% | 0.84% | 0.85% | 0.93% |
Ratio of Net Investment Income to Average Net Assets | 1.93% | 2.99% | 3.26% | 1.65% | 1.43% | 2.25%2 |
Portfolio Turnover Rate | 26% | 43% | 41% | 48% | 52% | 46% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $0.071 and 0.34%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of (0.08%), (0.01%), (0.04%), 0.02%, (0.01%), and 0.07%. |
5 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.80%. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | The investment advisory firms Pzena Investment Management, LLC, Oaktree Fund Advisors, LLC, Baillie Gifford Overseas Ltd., and Wellington Management Company llp, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Pzena Investment Management, LLC, Oaktree Fund Advisors, LLC, Baillie Gifford Overseas Ltd., and Wellington Management Company llp, are subject to quarterly adjustments based on performance relative to the FTSE Emerging Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 131,122 | — | — | 131,122 |
Common Stocks—Other | 47,717 | 525,679 | — | 573,396 |
Preferred Stocks | 16,408 | 2,875 | — | 19,283 |
Temporary Cash Investments | 41,937 | — | — | 41,937 |
Total | 237,184 | 528,554 | — | 765,738 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 88 | — | — | 88 |
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, 2024, 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 | 88 | — | 88 |
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 | 1,539 | — | 1,539 |
Forward Currency Contracts | — | 6 | 6 |
Realized Net Gain (Loss) on Derivatives | 1,539 | 6 | 1,545 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 1,857 | — | 1,857 |
F. | As of April 30, 2024, 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 | 724,060 |
Gross Unrealized Appreciation | 146,087 |
Gross Unrealized Depreciation | (104,321) |
Net Unrealized Appreciation (Depreciation) | 41,766 |
G. | During the six months ended April 30, 2024, the fund purchased $183,516,000 of investment securities and sold $219,651,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 2,707 | 6,947 | |
Issued in Lieu of Cash Distributions | 968 | 1,130 | |
Redeemed | (4,493) | (7,545) | |
Net Increase (Decrease) in Shares Outstanding | (818) | 532 |
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, 2023 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, 2024 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 2,626 | 7,768 | 9,906 | 90 | 66 | 89 | — | 644 |
Vanguard Market Liquidity Fund | 40,943 | NA1 | NA1 | — | — | 982 | — | 41,937 |
Total | 43,569 | 7,768 | 9,906 | 90 | 66 | 1,071 | — | 42,581 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, 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, 2024, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 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, 2024 | |||
Commodity Strategy Fund | Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,020.40 | $1.05 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.82 | 1.06 |
U.S. Government Securities | 100.0% |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (75.1%) | ||||||
U.S. Government Securities (75.1%) | ||||||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/24 | 56,134 | 56,134 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/24 | 50,325 | 50,034 | ||
United States Treasury Inflation Indexed Bonds | 0.250% | 1/15/25 | 51,593 | 50,706 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/25 | 35,166 | 35,073 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/25 | 41,226 | 40,156 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/25 | 56,575 | 55,241 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/25 | 50,154 | 48,548 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/26 | 47,632 | 46,047 | ||
United States Treasury Inflation Indexed Bonds | 2.000% | 1/15/26 | 22,696 | 22,465 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/26 | 38,737 | 36,909 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/26 | 47,476 | 45,213 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/26 | 53,610 | 50,762 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 1/15/27 | 44,211 | 41,801 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/27 | 21,943 | 21,888 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/27 | 54,765 | 51,120 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/27 | 48,743 | 45,871 | ||
United States Treasury Inflation Indexed Bonds | 1.625% | 10/15/27 | 54,918 | 53,725 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 1/15/28 | 49,777 | 46,479 | ||
United States Treasury Inflation Indexed Bonds | 1.750% | 1/15/28 | 20,628 | 20,174 | ||
United States Treasury Inflation Indexed Bonds | 1.250% | 4/15/28 | 54,233 | 51,920 | ||
United States Treasury Inflation Indexed Bonds | 3.625% | 4/15/28 | 21,119 | 22,092 | ||
United States Treasury Inflation Indexed Bonds | 0.750% | 7/15/28 | 43,331 | 40,765 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 10/15/28 | 55,805 | 56,119 | ||
United States Treasury Inflation Indexed Bonds | 0.875% | 1/15/29 | 37,165 | 34,836 | ||
United States Treasury Inflation Indexed Bonds | 2.500% | 1/15/29 | 19,050 | 19,229 | ||
United States Treasury Inflation Indexed Bonds | 2.125% | 4/15/29 | 30,099 | 29,873 | ||
United States Treasury Inflation Indexed Bonds | 3.875% | 4/15/29 | 24,540 | 26,335 | ||
Total U.S. Government and Agency Obligations (Cost $1,139,211) | 1,099,515 | |||||
Shares | ||||||
Temporary Cash Investments (27.9%) | ||||||
Money Market Fund (7.7%) | ||||||
1 | Vanguard Market Liquidity Fund | 5.394% | 1,118,446 | 111,833 |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (20.2%) | ||||||
2 | United States Treasury Bill | 5.284% | 5/2/24 | 42,200 | 42,194 | |
2 | United States Treasury Bill | 5.296% | 5/14/24 | 7,800 | 7,785 | |
2 | United States Treasury Bill | 5.311% | 5/21/24 | 19,300 | 19,244 | |
2 | United States Treasury Bill | 5.322% | 5/28/24 | 47,000 | 46,815 | |
2 | United States Treasury Bill | 5.318% | 6/6/24 | 7,300 | 7,261 | |
2 | United States Treasury Bill | 5.326%–5.329% | 6/13/24 | 25,800 | 25,638 | |
2 | United States Treasury Bill | 5.327% | 6/20/24 | 33,100 | 32,858 | |
2 | United States Treasury Bill | 5.300% | 6/27/24 | 2,200 | 2,182 | |
2 | United States Treasury Bill | 5.292% | 7/5/24 | 41,300 | 40,908 | |
2 | United States Treasury Bill | 5.286% | 7/9/24 | 26,200 | 25,935 | |
2 | United States Treasury Bill | 5.331% | 7/11/24 | 12,900 | 12,766 | |
2 | United States Treasury Bill | 5.308% | 7/16/24 | 25,900 | 25,613 | |
2 | United States Treasury Bill | 5.330% | 7/18/24 | 6,900 | 6,822 | |
296,021 | ||||||
Total Temporary Cash Investments (Cost $407,849) | 407,854 | |||||
Total Investments (103.0%) (Cost $1,547,060) | 1,507,369 | |||||
Other Assets and Liabilities—Net (-3.0%) | (43,349) | |||||
Net Assets (100%) | 1,464,020 | |||||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
2 | Security is owned by the Vanguard CSF Portfolio, which is a wholly owned subsidiary of the Commodity Strategy Fund. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Bloomberg Commodity Index2 | 5/2/24 | BANA | 100,000 | (0.060) | — | (235) |
Bloomberg Commodity Index2 | 5/9/24 | BARC | 10,000 | (0.100) | — | (110) |
Bloomberg Commodity Index 2 Month Forward2 | 5/9/24 | BARC | 125,000 | (0.110) | — | (890) |
Bloomberg Commodity Index 3 Month Forward2 | 5/21/24 | GSI | 20,000 | (0.120) | — | (71) |
BofA Merrill Lynch Commodity MLBXAKSV Excess Return Strategy2,3 | 5/2/24 | BANA | 50,000 | (0.170) | 116 | — |
BofA Merrill Lynch Commodity MLBXSTGV Excess Return Strategy2,3 | 5/2/24 | BANA | 200,000 | (0.110) | 107 | — |
BofA Merrill Lynch Commodity MLCILP3E Excess Return Strategy2,3 | 5/2/24 | BANA | 170,000 | (0.140) | 290 | — |
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 | 5/2/24 | CIBC | 165,000 | (0.160) | 598 | — |
Goldman Sachs Commodity i-Select Strategy 11292,3 | 5/21/24 | GSI | 200,000 | (0.120) | — | (654) |
Macquarie Commodity MQCP170E Excess Return Strategy2,3 | 5/9/24 | MACQ | 120,000 | (0.150) | — | (768) |
Modified Strategy DBS18 on the Bloomberg Commodity Index2,3 | 5/21/24 | GSI | 20,000 | (0.120) | — | (95) |
RBC Commodity RBCACB23 Excess Return Strategy2,3 | 5/9/24 | RBC | 118,000 | (0.130) | — | (731) |
RBC Commodity RBCSVBW1 Excess Return Strategy2,3 | 5/9/24 | RBC | 35,000 | (0.160) | — | (155) |
Societe Generale Commodity SGIXCSB1 Excess Return Strategy2,3 | 5/2/24 | SOCG | 120,000 | (0.170) | 61 | — |
Societe Generale Commodity SGIXCSB1 Excess Return Strategy2,3 | 5/2/24 | SOCG | 20,000 | (0.170) | — | (178) |
1,172 | (3,887) |
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. |
BANA—Bank of America, N.A. | |
BARC—Barclays Bank plc. | |
CIBC—Canadian Imperial Bank of Commerce. | |
GSI—Goldman Sachs International. | |
MACQ—Macquarie Bank Ltd. | |
RBC—Royal Bank of Canada. | |
SOCG—Société Generale. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $1,435,244) | 1,395,536 |
Affiliated Issuers (Cost $111,816) | 111,833 |
Total Investments in Securities | 1,507,369 |
Investment in Vanguard | 41 |
Cash | 54 |
Receivables for Investment Securities Sold | 19,362 |
Receivables for Accrued Income | 2,028 |
Receivables for Capital Shares Issued | 910 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 1,172 |
Total Assets | 1,530,936 |
Liabilities | |
Payables for Investment Securities Purchased | 56,719 |
Payables for Capital Shares Redeemed | 6,165 |
Payables to Vanguard | 145 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 3,887 |
Total Liabilities | 66,916 |
Net Assets | 1,464,020 |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 1,571,949 |
Total Distributable Earnings (Loss) | (107,929) |
Net Assets | 1,464,020 |
Net Assets | |
Applicable to 56,514,092 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,464,020 |
Net Asset Value Per Share | $25.91 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Interest1 | 21,018 |
Total Income | 21,018 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 102 |
Management and Administrative | 1,308 |
Marketing and Distribution | 24 |
Custodian Fees | 10 |
Shareholders’ Reports | 24 |
Trustees’ Fees and Expenses—Note B | 17 |
Other Expenses | 7 |
Total Expenses | 1,492 |
Expenses Paid Indirectly | (6) |
Net Expenses | 1,486 |
Net Investment Income | 19,532 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | (11,210) |
Swap Contracts | 7,150 |
Realized Net Gain (Loss) | (4,060) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 32,610 |
Swap Contracts | (25,026) |
Change in Unrealized Appreciation (Depreciation) | 7,584 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 23,056 |
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 $2,224,000, less than $1,000, less than $1,000, and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 19,532 | 54,980 | |
Realized Net Gain (Loss) | (4,060) | (192,924) | |
Change in Unrealized Appreciation (Depreciation) | 7,584 | 78,393 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 23,056 | (59,551) | |
Distributions | |||
Total Distributions | (36,432) | (244,178) | |
Capital Share Transactions | |||
Issued | 272,348 | 780,178 | |
Issued in Lieu of Cash Distributions | 25,590 | 186,091 | |
Redeemed | (404,438) | (1,072,899) | |
Net Increase (Decrease) from Capital Share Transactions | (106,500) | (106,630) | |
Total Increase (Decrease) | (119,876) | (410,359) | |
Net Assets | |||
Beginning of Period | 1,583,896 | 1,994,255 | |
End of Period | 1,464,020 | 1,583,896 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | June 25 20191to October 31, 2019 | Year Ended October 31, | |||
2023 | 2022 | 2021 | 2020 | |||
Net Asset Value, Beginning of Period | $26.02 | $30.69 | $36.85 | $24.32 | $24.83 | $25.00 |
Investment Operations | ||||||
Net Investment Income2 | .339 | .826 | 1.474 | .890 | .265 | .143 |
Net Realized and Unrealized Gain (Loss) on Investments | .168 | (1.612) | .751 | 11.774 | (.620) | (.313) |
Total from Investment Operations | .507 | (.786) | 2.225 | 12.664 | (.355) | (.170) |
Distributions | ||||||
Dividends from Net Investment Income | (.617) | (3.884) | (8.385) | (.134) | (.155) | — |
Distributions from Realized Capital Gains | — | — | — | — | — | — |
Total Distributions | (.617) | (3.884) | (8.385) | (.134) | (.155) | — |
Net Asset Value, End of Period | $25.91 | $26.02 | $30.69 | $36.85 | $24.32 | $24.83 |
Total Return3 | 2.04% | -3.03% | 9.80% | 52.30% | -1.45% | -0.68% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $1,464 | $1,584 | $1,994 | $1,686 | $373 | $207 |
Ratio of Total Expenses to Average Net Assets | 0.21%4 | 0.21%4 | 0.21%4 | 0.20% | 0.20% | 0.20%5 |
Ratio of Net Investment Income to Average Net Assets | 2.72% | 3.08% | 4.47% | 2.79% | 1.15% | 1.65%5 |
Portfolio Turnover Rate | 19% | 30% | 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 | ||||||
Bank of America, N.A. | 513 | (235) | 278 | — | 9,026 | — |
Barclays Bank plc | — | (1,000) | (1,000) | — | 1,211 | — |
Canadian Imperial Bank of Commerce | 598 | — | 598 | — | 3,098 | — |
Goldman Sachs International | — | (820) | (820) | — | 3,048 | — |
Macquarie Bank Ltd. | — | (768) | (768) | — | 1,140 | — |
Royal Bank of Canada | — | (886) | (886) | — | 1,488 | — |
Société Generale | 61 | (178) | (117) | — | 2,261 | — |
Total | 1,172 | (3,887) | (2,715) | — | 21,272 | — |
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, 2024, custodian fee offset arrangements reduced the fund’s expenses by $6,000 (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 | — | 1,099,515 | — | 1,099,515 |
Temporary Cash Investments | 111,833 | 296,021 | — | 407,854 |
Total | 111,833 | 1,395,536 | — | 1,507,369 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 1,172 | — | 1,172 |
Liabilities | ||||
Swap Contracts | — | 3,887 | — | 3,887 |
E. | As of April 30, 2024, 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 | 1,548,047 |
Gross Unrealized Appreciation | 19 |
Gross Unrealized Depreciation | (40,697) |
Net Unrealized Appreciation (Depreciation) | (40,678) |
F. | During the six months ended April 30, 2024, the fund purchased $206,903,000 of investment securities and sold $325,219,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2024 | Year Ended October 31, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 10,818 | 28,765 | |
Issued in Lieu of Cash Distributions | 1,028 | 6,887 | |
Redeemed | (16,208) | (39,756) | |
Net Increase (Decrease) in Shares Outstanding | (4,362) | (4,104) |
H. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, 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, 2024, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 15 |
Liquidity Risk Management | 17 |
• | 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, 2024 | |||
Beginning Account Value 10/31/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,164.10 | $3.98 |
Admiral™ Shares | 1,000.00 | 1,165.30 | 3.18 |
Based on Hypothetical 5% Yearly Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,021.18 | $3.72 |
Admiral Shares | 1,000.00 | 1,021.93 | 2.97 |
United States | 43.0% |
China | 19.7 |
Denmark | 14.6 |
Spain | 6.3 |
France | 4.2 |
India | 4.0 |
Germany | 3.8 |
United Kingdom | 2.3 |
Taiwan | 1.4 |
Other | 0.7 |
Shares | Market Value• ($000) | ||
Common Stocks (98.3%) | |||
China (19.3%) | |||
Contemporary Amperex Technology Co. Ltd. Class A | 148,669 | 4,151 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 989,242 | 3,027 | |
Xinyi Solar Holdings Ltd. | 4,140,000 | 2,849 | |
Sungrow Power Supply Co. Ltd. Class A | 168,889 | 2,394 | |
Zhejiang Sanhua Intelligent Controls Co. Ltd. Class A | 622,828 | 1,877 | |
14,298 | |||
Denmark (14.4%) | |||
*,1 | Orsted A/S | 73,940 | 4,064 |
Novonesis (Novozymes) Class B | 61,491 | 3,405 | |
* | Vestas Wind Systems A/S | 118,518 | 3,176 |
10,645 | |||
France (4.1%) | |||
Schneider Electric SE | 13,396 | 3,054 | |
Germany (3.7%) | |||
Infineon Technologies AG | 79,550 | 2,761 | |
India (4.0%) | |||
Power Grid Corp. of India Ltd. | 808,587 | 2,916 | |
Italy (0.7%) | |||
Industrie De Nora SpA | 36,427 | 490 | |
Spain (6.2%) | |||
Iberdrola SA (XMAD) | 373,728 | 4,583 | |
Taiwan (1.4%) | |||
Voltronic Power Technology Corp. | 22,000 | 1,041 | |
United Kingdom (2.2%) | |||
Croda International plc | 28,868 | 1,653 | |
United States (42.3%) | |||
Waste Management Inc. | 26,944 | 5,605 | |
NextEra Energy Inc. | 68,705 | 4,601 | |
* | ANSYS Inc. | 12,129 | 3,940 |
TE Connectivity Ltd. | 23,979 | 3,393 | |
Rockwell Automation Inc. | 11,369 | 3,081 | |
* | Autodesk Inc. | 12,948 | 2,756 |
* | Aptiv plc | 36,603 | 2,599 |
Carlisle Cos. Inc. | 5,795 | 2,250 | |
Tetra Tech Inc. | 8,290 | 1,614 | |
Trane Technologies plc | 4,421 | 1,403 | |
31,242 | |||
Total Common Stocks (Cost $71,808) | 72,683 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (1.1%) | |||
Money Market Fund (1.1%) | |||
2 | Vanguard Market Liquidity Fund, 5.394% (Cost $812) | 8,116 | 811 |
Total Investments (99.4%) (Cost $72,620) | 73,494 | ||
Other Assets and Liabilities—Net (0.6%) | 423 | ||
Net Assets (100%) | 73,917 | ||
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, 2024, the aggregate value was $4,064,000, representing 5.5% 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 $71,808) | 72,683 |
Affiliated Issuers (Cost $812) | 811 |
Total Investments in Securities | 73,494 |
Investment in Vanguard | 2 |
Cash | 384 |
Foreign Currency, at Value (Cost $106) | 100 |
Receivables for Accrued Income | 39 |
Receivables for Capital Shares Issued | 114 |
Total Assets | 74,133 |
Liabilities | |
Payables for Investment Securities Purchased | 7 |
Payables to Investment Advisor | 59 |
Payables for Capital Shares Redeemed | 13 |
Payables to Vanguard | 9 |
Deferred Foreign Capital Gains Taxes | 128 |
Total Liabilities | 216 |
Net Assets | 73,917 |
At April 30, 2024, net assets consisted of: | |
Paid-in Capital | 74,040 |
Total Distributable Earnings (Loss) | (123) |
Net Assets | 73,917 |
Investor Shares—Net Assets | |
Applicable to 1,090,592 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 21,901 |
Net Asset Value Per Share—Investor Shares | $20.08 |
Admiral Shares—Net Assets | |
Applicable to 2,070,244 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 52,016 |
Net Asset Value Per Share—Admiral Shares | $25.13 |
Six Months Ended April 30, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 353 |
Non-Cash Dividends | 72 |
Interest2 | 37 |
Total Income | 462 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 113 |
Performance Adjustment | (5) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 22 |
Management and Administrative—Admiral Shares | 36 |
Custodian Fees | 9 |
Shareholders’ Reports—Investor Shares | 11 |
Shareholders’ Reports—Admiral Shares | 2 |
Trustees’ Fees and Expenses | — |
Professional Services | 16 |
Total Expenses | 204 |
Expenses Paid Indirectly | (1) |
Net Expenses | 203 |
Net Investment Income | 259 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | (382) |
Foreign Currencies | (25) |
Realized Net Gain (Loss) | (407) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,3 | 7,926 |
Foreign Currencies | (4) |
Change in Unrealized Appreciation (Depreciation) | 7,922 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,774 |
1 | Dividends are net of foreign withholding taxes of $35,000. |
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 $37,000, ($1,000), less than $1,000, and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $97,000. |
Six Months Ended April 30, 2024 | November 2, 20221 to October 31, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 259 | 421 | |
Realized Net Gain (Loss) | (407) | (261) | |
Change in Unrealized Appreciation (Depreciation) | 7,922 | (7,182) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,774 | (7,022) | |
Distributions | |||
Investor Shares | (296) | — | |
Admiral Shares | (508) | — | |
Total Distributions | (804) | — | |
Capital Share Transactions | |||
Investor Shares | 1,881 | 20,111 | |
Admiral Shares | 21,352 | 30,625 | |
Net Increase (Decrease) from Capital Share Transactions | 23,233 | 50,736 | |
Total Increase (Decrease) | 30,203 | 43,714 | |
Net Assets | |||
Beginning of Period | 43,714 | — | |
End of Period | 73,917 | 43,714 |
1 | Commencement of subscription period for the fund. |
Investor Shares | ||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | November 2, 20221 to October 31, 2023 |
Net Asset Value, Beginning of Period | $17.52 | $20.00 |
Investment Operations | ||
Net Investment Income2 | .069 | .188 |
Net Realized and Unrealized Gain (Loss) on Investments | 2.793 | (2.668) |
Total from Investment Operations | 2.862 | (2.480) |
Distributions | ||
Dividends from Net Investment Income | (.159) | — |
Distributions from Realized Capital Gains | (.143) | — |
Total Distributions | (.302) | — |
Net Asset Value, End of Period | $20.08 | $17.52 |
Total Return3 | 16.41% | -12.40% |
Ratios/Supplemental Data | ||
Net Assets, End of Period (Millions) | $22 | $17 |
Ratio of Total Expenses to Average Net Assets | 0.74%4 | 0.77%4,5 |
Ratio of Net Investment Income to Average Net Assets | 0.71% | 0.98%5 |
Portfolio Turnover Rate | 13% | 35% |
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 0.74% and 0.75%, respectively. |
5 | Annualized. |
Admiral Shares | ||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2024 | November 2, 20221 to October 31, 2023 |
Net Asset Value, Beginning of Period | $21.93 | $25.00 |
Investment Operations | ||
Net Investment Income2 | .105 | .279 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.504 | (3.349) |
Total from Investment Operations | 3.609 | (3.070) |
Distributions | ||
Dividends from Net Investment Income | (.229) | — |
Distributions from Realized Capital Gains | (.180) | — |
Total Distributions | (.409) | — |
Net Asset Value, End of Period | $25.13 | $21.93 |
Total Return3 | 16.53% | -12.28% |
Ratios/Supplemental Data | ||
Net Assets, End of Period (Millions) | $52 | $26 |
Ratio of Total Expenses to Average Net Assets | 0.59%4 | 0.62%4,5 |
Ratio of Net Investment Income to Average Net Assets | 0.86% | 1.16%5 |
Portfolio Turnover Rate | 13% | 35% |
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 0.59% and 0.60%, respectively. |
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. |
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. The basic fee is subject to quarterly adjustments based on the fund’s performance relative to the MSCI All Country World Index since January 31, 2023. For the six months ended April 30, 2024, the investment advisory fee represented an effective annual basic rate of 0.35% of the fund’s average net assets, before a net decrease of $5,000 (0.02%) based on performance. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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, 2024, custodian fee offset arrangements reduced the fund’s expenses by $1,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 31,242 | — | — | 31,242 |
Common Stocks—Other | — | 41,441 | — | 41,441 |
Temporary Cash Investments | 811 | — | — | 811 |
Total | 32,053 | 41,441 | — | 73,494 |
F. | As of April 30, 2024, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 73,215 |
Gross Unrealized Appreciation | 5,914 |
Gross Unrealized Depreciation | (5,635) |
Net Unrealized Appreciation (Depreciation) | 279 |
G. | During the period ended April 30, 2024, the fund purchased $30,056,000 of investment securities and sold $8,469,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended to April 30, 2024 | November 2, 20221 to October 31, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 5,757 | 297 | 26,143 | 1,298 | |
Issued in Lieu of Cash Distributions | 254 | 13 | — | — | |
Redeemed | (4,130) | (217) | (6,032) | (300) | |
Net Increase (Decrease)—Investor Shares | 1,881 | 93 | 20,111 | 998 | |
Admiral Shares | |||||
Issued | 25,257 | 1,035 | 37,053 | 1,468 | |
Issued in Lieu of Cash Distributions | 378 | 16 | — | — | |
Redeemed | (4,283) | (177) | (6,428) | (272) | |
Net Increase (Decrease)—Admiral Shares | 21,352 | 874 | 30,625 | 1,196 |
1 | Commencement of subscription period for the fund. |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, 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, 2024, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. In February 2024, a third-party service provider began performing security pricing services for the Registrant. There were no other changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(a)(2) | 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 20, 2024
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 20, 2024
VANGUARD TRUSTEES’ EQUITY FUND | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: June 20, 2024
* By: | /s/ John E. Schadl |
John E. Schadl, pursuant to a Power of Attorney filed on January 11, 2024 (see File Number 33-34494); a Power of Attorney filed on July 21, 2023 (see File Number 33-53683), Incorporated by Reference; and a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.