D. As of February 29, 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 | 6,377,932 |
| Gross Unrealized Appreciation | 2,243,613 |
| Gross Unrealized Depreciation | (476,860) |
| Net Unrealized Appreciation (Depreciation) | 1,766,753 |
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2023, the fund had available capital losses totaling $156,231,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2024; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
E. During the six months ended February 29, 2024, the fund purchased $82,589,000 of investment securities and sold $90,660,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $410,831,000 and $70,432,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 29, 2024, such purchases were $15,637,000 and sales were $6,767,000, resulting in net realized loss of $3,556,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
F. Capital shares issued and redeemed were:
| | Six Months Ended
February 29, 2024 | | Year Ended
August 31, 2023 |
| | Shares
(000) | | Shares
(000) |
| Issued | 4,950 | | 6,625 |
| Issued in Lieu of Cash Distributions | — | | — |
| Redeemed | (900) | | (5,900) |
| Net Increase (Decrease) in Shares Outstanding | 4,050 | | 725 |
G. 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.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
