Vanguard® Emerging Markets Select Stock Fund
Schedule of Investments (unaudited)
As of January 31, 2024
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
Shares | Market Value ($000) | ||
Common Stocks (91.9%) | |||
Brazil (9.9%) | |||
Petroleo Brasileiro SA ADR (XNYS) | 705,602 | 12,045 | |
Vale SA ADR | 591,811 | 8,102 | |
Banco Bradesco SA ADR | 2,230,244 | 6,914 | |
Ambev SA | 1,982,566 | 5,234 | |
Banco Do Brasil SA | 330,200 | 3,762 | |
Centrais Eletricas Brasileiras SA | 390,018 | 3,213 | |
Cia de Saneamento Basico do Estado de Sao Paulo | 198,247 | 3,156 | |
Neoenergia SA | 763,100 | 3,142 | |
Itau Unibanco Holding SA ADR | 429,030 | 2,832 | |
Vale SA | 200,900 | 2,748 | |
B3 SA - Brasil Bolsa Balcao | 1,032,300 | 2,727 | |
Petroleo Brasileiro SA ADR | 151,037 | 2,477 | |
Localiza Rent a Car SA (BVMF) | 223,594 | 2,442 | |
* | Natura & Co. Holding SA | 639,500 | 2,065 |
TIM SA | 568,789 | 1,991 | |
Lojas Renner SA | 565,896 | 1,833 | |
Banco Santander Brasil SA | 269,207 | 1,557 | |
Petroleo Brasileiro SA | 160,339 | 1,364 | |
Weg SA | 137,400 | 897 | |
BB Seguridade Participacoes SA | 93,991 | 650 | |
Raia Drogasil SA | 95,724 | 489 | |
1 | Rede D'Or Sao Luiz SA | 72,700 | 398 |
*,1 | Hapvida Participacoes e Investimentos SA | 472,562 | 370 |
PRIO SA | 38,257 | 339 | |
* | Magazine Luiza SA | 656,520 | 278 |
71,025 | |||
Canada (0.7%) | |||
Parex Resources Inc. | 106,805 | 1,768 | |
First Quantum Minerals Ltd. | 165,138 | 1,499 | |
Lundin Mining Corp. | 168,637 | 1,377 | |
* | Valeura Energy Inc. | 275,494 | 717 |
5,361 | |||
Chile (0.2%) | |||
Banco De Chile | 11,893,163 | 1,331 | |
China (24.9%) | |||
Tencent Holdings Ltd. | 743,078 | 25,793 | |
Alibaba Group Holding Ltd. | 2,216,279 | 19,878 | |
China Merchants Bank Co. Ltd. Class H | 2,155,438 | 7,857 | |
Haier Smart Home Co. Ltd. Class H | 2,372,200 | 6,703 | |
Weichai Power Co. Ltd. Class H | 3,502,866 | 6,184 | |
China Overseas Land & Investment Ltd. | 3,892,979 | 5,889 |
Shares | Market Value ($000) | ||
Zijin Mining Group Co. Ltd. Class H | 3,724,628 | 5,527 | |
* | Baidu Inc. Class A | 397,100 | 5,141 |
Ping An Insurance Group Co. of China Ltd. Class H | 1,123,494 | 4,723 | |
Kweichow Moutai Co. Ltd. Class A | 19,800 | 4,432 | |
China Construction Bank Corp. Class H | 7,451,010 | 4,425 | |
ANTA Sports Products Ltd. | 435,871 | 3,679 | |
Aluminum Corp. of China Ltd. Class H | 7,378,126 | 3,596 | |
Industrial & Commercial Bank of China Ltd. Class H | 6,142,724 | 2,992 | |
Shenzhou International Group Holdings Ltd. | 308,000 | 2,743 | |
* | Baidu Inc. ADR | 25,475 | 2,683 |
Contemporary Amperex Technology Co. Ltd. Class A (XSHE) | 126,851 | 2,681 | |
KE Holdings Inc. ADR | 176,773 | 2,505 | |
* | Trip.com Group Ltd. ADR | 66,136 | 2,418 |
JD.com Inc. ADR | 98,848 | 2,229 | |
Brilliance China Automotive Holdings Ltd. | 4,104,000 | 2,188 | |
H World Group Ltd. ADR | 67,213 | 2,135 | |
1 | WuXi AppTec Co. Ltd. Class H | 300,699 | 2,081 |
* | Trip.com Group Ltd. | 57,018 | 2,075 |
Zhejiang Longsheng Group Co. Ltd. Class A | 1,933,100 | 2,073 | |
GF Securities Co. Ltd. Class H | 1,948,400 | 1,961 | |
CITIC Securities Co. Ltd. Class H | 994,051 | 1,940 | |
Midea Group Co. Ltd. Class A | 224,186 | 1,819 | |
PICC Property & Casualty Co. Ltd. Class H | 1,460,000 | 1,816 | |
Beijing Oriental Yuhong Waterproof Technology Co. Ltd. Class A | 745,000 | 1,677 | |
ENN Energy Holdings Ltd. | 222,474 | 1,656 | |
China Resources Land Ltd. | 507,836 | 1,542 | |
Sunny Optical Technology Group Co. Ltd. | 245,254 | 1,507 | |
*,1 | Meituan Class B | 187,093 | 1,505 |
CIMC Enric Holdings Ltd. | 1,810,000 | 1,491 | |
Anker Innovations Technology Co. Ltd. Class A | 152,900 | 1,460 | |
* | PDD Holdings Inc. ADR | 9,897 | 1,256 |
JD.com Inc. Class A | 110,951 | 1,251 | |
1 | Longfor Group Holdings Ltd. | 1,106,625 | 1,227 |
* | Shanghai International Airport Co. Ltd. Class A | 265,257 | 1,225 |
KE Holdings Inc. Class A | 251,870 | 1,179 | |
* | Tencent Music Entertainment Group ADR | 125,010 | 1,175 |
1 | China Tourism Group Duty Free Corp. Ltd. Class H | 134,007 | 1,175 |
Anhui Conch Cement Co. Ltd. Class H | 557,424 | 1,117 | |
Sinoma Science & Technology Co. Ltd. Class A | 487,600 | 966 | |
Ping An Bank Co. Ltd. Class A | 718,540 | 948 | |
Bank of Ningbo Co. Ltd. Class A | 302,800 | 909 | |
China Tourism Group Duty Free Corp. Ltd. Class A | 78,811 | 877 | |
BYD Co. Ltd. Class H | 36,000 | 806 | |
* | Didi Global Inc. ADR | 225,021 | 788 |
China Longyuan Power Group Corp. Ltd. Class H | 1,288,350 | 777 | |
* | BeiGene Ltd. | 66,950 | 759 |
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class A | 712,050 | 714 | |
Yunnan Energy New Material Co. Ltd. Class A | 119,900 | 709 | |
1 | CSC Financial Co. Ltd. Class H | 890,157 | 678 |
Ping An Insurance Group Co. of China Ltd. Class A | 117,700 | 666 | |
China Mengniu Dairy Co. Ltd. | 299,310 | 663 | |
China National Building Material Co. Ltd. Class H | 1,857,983 | 655 | |
Minth Group Ltd. | 362,000 | 587 | |
Sinopharm Group Co. Ltd. Class H | 217,200 | 571 | |
Proya Cosmetics Co. Ltd. Class A | 48,680 | 559 | |
*,1 | Kuaishou Technology | 95,900 | 483 |
Tsingtao Brewery Co. Ltd. Class H | 81,837 | 467 | |
Kanzhun Ltd. ADR | 33,184 | 462 |
Shares | Market Value ($000) | ||
JOYY Inc. ADR | 13,995 | 429 | |
Alibaba Group Holding Ltd. ADR | 5,672 | 409 | |
Aluminum Corp of China Ltd. Class A | 461,594 | 367 | |
* | Zai Lab Ltd. | 171,600 | 365 |
Li Ning Co. Ltd. | 156,000 | 333 | |
* | Zai Lab Ltd. ADR | 13,295 | 287 |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 432,318 | 276 | |
*,1 | Wuxi Biologics Cayman Inc. | 92,000 | 242 |
Shanghai Pharmaceuticals Holding Co. Ltd. Class A | 96,400 | 228 | |
* | Sichuan Kelun-Biotech Biopharmaceutical Co. Ltd. | 21,800 | 223 |
WuXi AppTec Co. Ltd. Class A | 27,916 | 212 | |
Zhongsheng Group Holdings Ltd. | 118,000 | 199 | |
Yuexiu Property Co. Ltd. | 253,980 | 159 | |
China National Accord Medicines Corp. Ltd. Class A (XSHE) | 37,000 | 153 | |
1 | Yadea Group Holdings Ltd. | 106,000 | 145 |
Lufax Holding Ltd. ADR | 61,296 | 145 | |
Amoy Diagnostics Co. Ltd. Class A (XSHE) | 51,780 | 122 | |
Amoy Diagnostics Co. Ltd. Class A | 37,094 | 87 | |
* | GDS Holdings Ltd. ADR | 14,191 | 77 |
Shanghai Jinjiang International Hotels Co. Ltd. Class A | 21,700 | 77 | |
Changzhou Xingyu Automotive Lighting Systems Co. Ltd. Class A | 3,500 | 62 | |
* | Nine Dragons Paper Holdings Ltd. | 131,049 | 49 |
179,299 | |||
Egypt (0.0%) | |||
2 | Commercial International Bank Egypt SAE GDR (Registered) | 2 | — |
Greece (0.6%) | |||
* | Alpha Services and Holdings SA | 2,244,519 | 3,997 |
Helleniq Energy Holdings SA | 45,454 | 365 | |
4,362 | |||
Hong Kong (3.2%) | |||
Galaxy Entertainment Group Ltd. | 1,477,059 | 7,666 | |
Pacific Basin Shipping Ltd. | 16,795,313 | 4,675 | |
1 | WH Group Ltd. | 5,883,000 | 3,471 |
AIA Group Ltd. | 248,378 | 1,948 | |
Yue Yuen Industrial Holdings Ltd. | 2,025,500 | 1,910 | |
Man Wah Holdings Ltd. | 2,926,804 | 1,824 | |
Orient Overseas International Ltd. | 82,315 | 1,229 | |
Wharf Holdings Ltd. | 36,630 | 107 | |
22,830 | |||
Hungary (0.6%) | |||
OTP Bank Nyrt | 75,994 | 3,521 | |
MOL Hungarian Oil & Gas plc | 117,538 | 962 | |
4,483 | |||
India (14.1%) | |||
Reliance Industries Ltd. | 563,784 | 19,370 | |
HDFC Bank Ltd. | 710,542 | 12,496 | |
Larsen & Toubro Ltd. | 161,878 | 6,777 | |
Shriram Finance Ltd. | 171,451 | 5,096 | |
3 | Infosys Ltd. ADR | 238,748 | 4,742 |
UltraTech Cement Ltd. | 36,825 | 4,503 | |
Bharti Airtel Ltd. (XNSE) | 280,627 | 3,959 | |
Tata Consultancy Services Ltd. | 81,468 | 3,742 | |
ICICI Bank Ltd. ADR | 145,203 | 3,543 | |
Axis Bank Ltd. | 215,699 | 2,773 | |
Tech Mahindra Ltd. | 164,975 | 2,643 | |
Adani Ports & Special Economic Zone Ltd. | 170,514 | 2,479 |
Shares | Market Value ($000) | ||
* | Jio Financial Services Ltd. | 777,323 | 2,321 |
1 | HDFC Life Insurance Co. Ltd. | 333,940 | 2,319 |
Bajaj Auto Ltd. | 20,327 | 1,879 | |
Godrej Consumer Products Ltd. | 129,951 | 1,822 | |
* | Delhivery Ltd. | 333,259 | 1,807 |
Oil & Natural Gas Corp. Ltd. | 577,754 | 1,755 | |
Ambuja Cements Ltd. | 257,602 | 1,734 | |
Varun Beverages Ltd. | 99,560 | 1,536 | |
Hindustan Unilever Ltd. | 50,825 | 1,520 | |
Tata Consumer Products Ltd. | 110,921 | 1,494 | |
* | Amber Enterprises India Ltd. | 24,884 | 1,327 |
Jubilant Foodworks Ltd. | 197,115 | 1,233 | |
Colgate-Palmolive India Ltd. | 37,207 | 1,152 | |
1 | SBI Life Insurance Co. Ltd. | 66,146 | 1,118 |
HDFC Bank Ltd. ADR | 19,393 | 1,076 | |
Container Corp. of India Ltd. | 90,350 | 964 | |
Apollo Hospitals Enterprise Ltd. | 9,080 | 694 | |
ICICI Bank Ltd. | 55,389 | 686 | |
Cipla Ltd. | 40,628 | 661 | |
Maruti Suzuki India Ltd. | 5,373 | 659 | |
Mahindra & Mahindra Ltd. | 27,378 | 544 | |
Eicher Motors Ltd. | 9,709 | 449 | |
Fortis Healthcare Ltd. | 62,418 | 325 | |
Tata Steel Ltd. | 171,885 | 282 | |
Hero MotoCorp Ltd. | 2,122 | 118 | |
101,598 | |||
Indonesia (2.2%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 37,705,242 | 13,583 | |
Telkom Indonesia Persero Tbk PT | 10,135,759 | 2,542 | |
16,125 | |||
Kenya (0.1%) | |||
Equity Group Holdings plc | 2,759,514 | 652 | |
Mexico (2.3%) | |||
Grupo Financiero Banorte SAB de CV Class O | 569,652 | 5,794 | |
Wal-Mart de Mexico SAB de CV | 866,715 | 3,581 | |
Fomento Economico Mexicano SAB de CV ADR | 16,396 | 2,222 | |
America Movil SAB de CV ADR | 121,984 | 2,202 | |
* | Cemex SAB de CV ADR | 232,205 | 1,923 |
Grupo Mexico SAB de CV Series B | 118,363 | 611 | |
Corp. Inmobiliaria Vesta SAB de CV | 81,300 | 309 | |
16,642 | |||
Other (0.2%) | |||
4 | Vanguard FTSE Emerging Markets ETF | 32,381 | 1,284 |
Philippines (0.4%) | |||
Bdo Unibank Inc. | 890,041 | 2,291 | |
Ayala Land Inc. | 946,900 | 572 | |
2,863 | |||
Poland (0.3%) | |||
*,1 | Allegro.eu SA | 139,546 | 1,054 |
KGHM Polska Miedz SA | 32,601 | 908 | |
1,962 | |||
Romania (0.2%) | |||
Banca Transilvania SA | 265,270 | 1,434 | |
Russia (0.0%) | |||
*,2 | MMC Norilsk Nickel PJSC ADR | 200,203 | — |
Shares | Market Value ($000) | ||
2 | Sberbank of Russia PJSC | 1,473,153 | — |
*,2 | Mobile TeleSystems PJSC ADR | 93,946 | — |
2 | Moscow Exchange MICEX-RTS PJSC | 536,630 | — |
2 | MMC Norilsk Nickel PJSC | 1,247 | — |
*,2 | Sberbank of Russia PJSC ADR | 476,234 | — |
*,2 | LUKOIL PJSC ADR | 102,385 | — |
*,2 | Novatek PJSC GDR (Registered) | 6,724 | — |
*,2,3 | Ozon Holdings plc ADR | 35,000 | — |
*,2 | Gazprom PJSC | 926,846 | — |
— | |||
Saudi Arabia (1.2%) | |||
1 | Saudi Arabian Oil Co. | 510,006 | 4,155 |
Saudi Awwal Bank | 257,124 | 2,456 | |
Al Rajhi Bank | 72,800 | 1,625 | |
Mouwasat Medical Services Co. | 9,889 | 313 | |
8,549 | |||
Singapore (0.6%) | |||
Wilmar International Ltd. | 1,612,000 | 3,947 | |
South Africa (2.0%) | |||
Anglogold Ashanti plc | 266,122 | 4,689 | |
Sasol Ltd. | 342,139 | 2,972 | |
Absa Group Ltd. | 178,423 | 1,558 | |
FirstRand Ltd. | 301,284 | 1,091 | |
Mr Price Group Ltd. | 118,401 | 1,083 | |
Harmony Gold Mining Co. Ltd. | 173,295 | 1,083 | |
Discovery Ltd. | 85,763 | 634 | |
Naspers Ltd. Class N | 3,183 | 534 | |
Clicks Group Ltd. | 17,983 | 289 | |
Thungela Resources Ltd. | 40,278 | 253 | |
14,186 | |||
South Korea (5.2%) | |||
Samsung Electronics Co. Ltd. (XKRX) | 289,651 | 15,739 | |
SK Hynix Inc. | 70,303 | 7,040 | |
* | Hankook Tire & Technology Co. Ltd. | 88,046 | 3,370 |
Hyundai Motor Co. | 22,435 | 3,263 | |
* | DB Insurance Co. Ltd. | 43,341 | 2,859 |
Shinhan Financial Group Co. Ltd. | 53,870 | 1,650 | |
* | WONIK IPS Co. Ltd. | 52,731 | 1,192 |
KB Financial Group Inc. | 26,800 | 1,137 | |
NAVER Corp. | 4,531 | 676 | |
Hyundai Mobis Co. Ltd. | 4,266 | 669 | |
37,595 | |||
Spain (0.3%) | |||
Banco Bilbao Vizcaya Argentaria SA. ADR | 221,652 | 2,068 | |
Taiwan (12.2%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. (XTAI) | 2,709,271 | 54,236 | |
Hon Hai Precision Industry Co. Ltd. | 1,870,685 | 6,119 | |
MediaTek Inc. | 194,227 | 5,993 | |
Accton Technology Corp. | 267,000 | 4,492 | |
United Integrated Services Co. Ltd. | 409,000 | 3,618 | |
Silergy Corp. | 168,000 | 2,068 | |
ASPEED Technology Inc. | 19,624 | 1,928 | |
Unimicron Technology Corp. | 320,000 | 1,795 | |
Chroma ATE Inc. | 272,644 | 1,743 | |
Evergreen Marine Corp. Taiwan Ltd. | 320,091 | 1,535 | |
Nanya Technology Corp. | 640,286 | 1,404 |
Shares | Market Value ($000) | ||
E Ink Holdings Inc. | 188,211 | 1,248 | |
Realtek Semiconductor Corp. | 78,000 | 1,167 | |
Uni-President Enterprises Corp. | 57,000 | 132 | |
87,478 | |||
Thailand (2.9%) | |||
SCB X PCL | 1,623,400 | 4,752 | |
PTT Exploration & Production PCL | 1,021,910 | 4,313 | |
Kasikornbank PCL | 772,996 | 2,618 | |
Charoen Pokphand Foods PCL | 4,761,612 | 2,498 | |
Bangkok Bank PCL NVDR | 469,100 | 1,864 | |
Indorama Ventures PCL NVDR | 2,082,900 | 1,385 | |
Kasikornbank PCL NVDR | 320,779 | 1,087 | |
* | True Corp. PCL NVDR | 5,511,500 | 937 |
Bangkok Bank PCL (Registered) | 215,800 | 858 | |
Bangkok Dusit Medical Services PCL Class F | 743,700 | 576 | |
20,888 | |||
Turkey (0.3%) | |||
Akbank TAS | 1,751,331 | 2,280 | |
United Arab Emirates (0.7%) | |||
2 | Abu Dhabi Commercial Bank PJSC | 1,433,418 | 3,515 |
Emirates NBD Bank PJSC | 222,983 | 1,074 | |
Emaar Properties PJSC | 304,009 | 614 | |
5,203 | |||
United Kingdom (1.1%) | |||
Standard Chartered plc | 401,922 | 3,037 | |
1 | Airtel Africa plc | 1,349,538 | 1,917 |
Anglo American plc | 67,151 | 1,601 | |
Fresnillo plc | 207,080 | 1,385 | |
7,940 | |||
United States (5.1%) | |||
* | MercadoLibre Inc. | 4,782 | 8,186 |
Credicorp Ltd. | 35,469 | 5,265 | |
Freeport-McMoRan Inc. | 130,196 | 5,167 | |
Cognizant Technology Solutions Corp. Class A | 51,280 | 3,955 | |
Copa Holdings SA Class A | 17,620 | 1,693 | |
* | Fabrinet | 7,921 | 1,691 |
Ternium SA ADR | 42,705 | 1,651 | |
* | Coupang Inc. | 117,171 | 1,640 |
* | NU Holdings Ltd. Class A | 184,230 | 1,586 |
* | Sea Ltd. ADR | 31,316 | 1,194 |
* | Grab Holdings Ltd. Class A | 370,694 | 1,138 |
* | MakeMyTrip Ltd. | 17,901 | 992 |
* | WNS Holdings Ltd. ADR | 13,243 | 918 |
Patria Investments Ltd. Class A | 48,111 | 687 | |
* | Flex Ltd. | 22,912 | 544 |
* | Legend Biotech Corp. ADR | 5,114 | 282 |
36,589 | |||
Vietnam (0.4%) | |||
Vietnam Dairy Products JSC | 1,137,100 | 3,113 | |
Total Common Stocks (Cost $649,008) | 661,087 | ||
Preferred Stocks (2.8%) | |||
Petroleo Brasileiro SA Preference Shares | 490,700 | 4,006 | |
Cia Energetica de Minas Gerais Preference Shares | 1,657,065 | 3,853 | |
Raizen SA Preference Shares | 4,378,435 | 3,385 | |
Banco Bradesco SA Preference Shares | 1,039,800 | 3,222 |
Shares | Market Value ($000) | ||
Samsung Electronics Co. Ltd. Preference Shares | 66,924 | 2,928 | |
Itau Unibanco Holding SA Preference Shares | 344,300 | 2,278 | |
* | Braskem SA Preference Shares Class A | 189,137 | 680 |
Total Preferred Stocks (Cost $19,202) | 20,352 | ||
Temporary Cash Investments (5.5%) | |||
Money Market Fund (5.5%) | |||
5,6 | Vanguard Market Liquidity Fund, 5.410% (Cost $39,816) | 398,273 | 39,823 |
Total Investments (100.2%) (Cost $708,026) | 721,262 | ||
Other Assets and Liabilities—Net (-0.2%) | (1,595) | ||
Net Assets (100%) | 719,667 | ||
Cost is in $000. |
* | 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 January 31, 2024, the aggregate value was $22,338,000, representing 3.1% of net assets. |
2 | Security value determined using significant unobservable inputs. |
3 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $206,000. |
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 $848,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. | |
NVDR—Non-Voting Depository Receipt. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI Emerging Markets Index | March 2024 | 657 | 32,219 | (337) |
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. Fluctuations in the value of the contracts are recorded as an asset (liability).
D. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of January 31, 2024, based on the inputs used to value them:
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 129,617 | 1,331 | — | 130,948 |
Common Stocks—Other | 34,400 | 492,224 | 3,515 | 530,139 |
Preferred Stocks | 17,424 | 2,928 | — | 20,352 |
Temporary Cash Investments | 39,823 | — | — | 39,823 |
Total | 221,264 | 496,483 | 3,515 | 721,262 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 337 | — | — | 337 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. |
E. 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) | Jan. 31, 2024 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 2,626 | 5,035 | 6,488 | 58 | 53 | 89 | — | 1,284 |
Vanguard Market Liquidity Fund | 40,943 | NA1 | NA1 | — | — | 460 | — | 39,823 |
Total | 43,569 | 5,035 | 6,488 | 58 | 53 | 549 | — | 41,107 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |