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: 811-04098
Name of Registrant: | Vanguard Chester Funds |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: September 30
Date of reporting period: October 1, 2021—September 30, 2022
Item 1: | Reports to Shareholders |
Your Fund’s Performance at a Glance | 1 |
Advisor’s Report | 2 |
About Your Fund’s Expenses | 6 |
Performance Summary | 8 |
Financial Statements | 10 |
Trustees Approve Advisory Arrangement | 26 |
• | The 12 months ended September 30, 2022, were a challenging period for financial markets. Vanguard PRIMECAP Fund returned –17.19% for Admiral Shares and –17.25% for Investor Shares for the period. Its benchmark, the Standard & Poor’s 500 Index, returned –15.47%. |
• | Early on, pent-up demand helped spur global growth and push down unemployment rates. The economic backdrop deteriorated, however, as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by the Federal Reserve to bring inflation back in check and increased fears of a recession. |
• | Small-, mid-, and large-capitalization stocks all posted negative returns for the 12-month period. Large-capitalization stocks held up better than mid- and small-caps, while value stocks outperformed growth. |
• | The fund’s holdings in health care contributed most to relative performance, while stock selection in information technology and industrials detracted most. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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 September 30, 2022 | |||
Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
PRIMECAP Fund | |||
Investor Shares | $1,000.00 | $809.70 | $1.72 |
Admiral™ Shares | 1,000.00 | 809.90 | 1.41 |
Based on Hypothetical 5% Yearly Return | |||
PRIMECAP Fund | |||
Investor Shares | $1,000.00 | $1,023.16 | $1.93 |
Admiral Shares | 1,000.00 | 1,023.51 | 1.57 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
PRIMECAP Fund Investor Shares | -17.25% | 8.17% | 13.19% | $34,522 | |
S&P 500 Index | -15.47 | 9.24 | 11.70 | 30,244 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 29,120 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
PRIMECAP Fund Admiral Shares | -17.19% | 8.25% | 13.27% | $173,887 | |
S&P 500 Index | -15.47 | 9.24 | 11.70 | 151,221 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | -18.05 | 8.48 | 11.28 | 145,598 |
Communication Services | 6.2% |
Consumer Discretionary | 12.3 |
Consumer Staples | 0.3 |
Energy | 2.5 |
Financials | 7.1 |
Health Care | 32.3 |
Industrials | 12.3 |
Information Technology | 25.5 |
Materials | 1.5 |
Shares | Market Value• ($000) | ||
Common Stocks (97.2%) | |||
Communication Services (6.0%) | |||
* | Alphabet Inc. Class A | 12,382,440 | 1,184,380 |
* | Alphabet Inc. Class C | 7,000,820 | 673,129 |
* | Baidu Inc. ADR | 5,381,348 | 632,254 |
* | Walt Disney Co. | 3,867,305 | 364,803 |
Activision Blizzard Inc. | 3,595,100 | 267,260 | |
* | Meta Platforms Inc. Class A | 531,050 | 72,053 |
* | Charter Communications Inc. Class A | 198,440 | 60,197 |
* | T-Mobile US Inc. | 357,000 | 47,899 |
* | Live Nation Entertainment Inc. | 536,860 | 40,823 |
* | Netflix Inc. | 78,800 | 18,553 |
* | Altice USA Inc. Class A | 1,180,000 | 6,879 |
Comcast Corp. Class A | 87,369 | 2,562 | |
* | Roblox Corp. Class A | 26,500 | 950 |
Nintendo Co. Ltd. | 17,500 | 706 | |
Electronic Arts Inc. | 5,700 | 659 | |
3,373,107 | |||
Consumer Discretionary (11.9%) | |||
* | Tesla Inc. | 6,299,700 | 1,670,995 |
1 | Sony Group Corp. ADR | 13,848,745 | 887,012 |
* | Alibaba Group Holding Ltd. ADR | 9,913,817 | 793,006 |
Ross Stores Inc. | 7,825,790 | 659,479 | |
TJX Cos. Inc. | 8,515,300 | 528,970 | |
*,2 | Mattel Inc. | 27,336,838 | 517,760 |
2 | Whirlpool Corp. | 2,994,832 | 403,733 |
* | Amazon.com Inc. | 3,519,600 | 397,715 |
Bath & Body Works Inc. | 3,533,314 | 115,186 | |
* | Royal Caribbean Cruises Ltd. | 2,599,047 | 98,504 |
* | Dollar Tree Inc. | 637,000 | 86,696 |
Marriott International Inc. Class A | 451,410 | 63,261 | |
* | Flutter Entertainment plc (XDUB) | 472,229 | 51,817 |
Hilton Worldwide Holdings Inc. | 423,766 | 51,115 | |
eBay Inc. | 1,283,000 | 47,227 | |
McDonald's Corp. | 191,800 | 44,256 | |
Restaurant Brands International Inc. | 808,900 | 43,017 | |
Lowe's Cos. Inc. | 200,000 | 37,562 | |
* | Victoria's Secret & Co. | 1,179,071 | 34,335 |
* | Burlington Stores Inc. | 248,000 | 27,749 |
Shares | Market Value• ($000) | ||
* | Las Vegas Sands Corp. | 712,300 | 26,726 |
MGM Resorts International | 552,000 | 16,405 | |
* | Carnival Corp. | 2,054,065 | 14,440 |
* | Ulta Beauty Inc. | 21,000 | 8,425 |
* | O'Reilly Automotive Inc. | 11,000 | 7,737 |
* | AutoZone Inc. | 2,750 | 5,890 |
Dollar General Corp. | 1,400 | 336 | |
6,639,354 | |||
Consumer Staples (0.3%) | |||
Sysco Corp. | 1,371,300 | 96,965 | |
Altria Group Inc. | 621,700 | 25,104 | |
Constellation Brands Inc. Class A | 25,700 | 5,903 | |
Mowi ASA | 418,000 | 5,317 | |
Philip Morris International Inc. | 43,300 | 3,594 | |
* | Haleon plc ADR | 548,000 | 3,337 |
140,220 | |||
Energy (2.4%) | |||
Hess Corp. | 5,817,700 | 634,071 | |
Pioneer Natural Resources Co. | 2,293,100 | 496,525 | |
EOG Resources Inc. | 1,701,200 | 190,075 | |
* | Transocean Ltd. (XNYS) | 11,761,373 | 29,051 |
Schlumberger NV | 88,400 | 3,173 | |
1,352,895 | |||
Financials (6.9%) | |||
Wells Fargo & Co. | 29,691,547 | 1,194,194 | |
JPMorgan Chase & Co. | 5,951,475 | 621,929 | |
Marsh & McLennan Cos. Inc. | 3,098,815 | 462,622 | |
Bank of America Corp. | 14,735,732 | 445,019 | |
Raymond James Financial Inc. | 4,316,958 | 426,602 | |
Charles Schwab Corp. | 3,493,214 | 251,057 | |
US Bancorp | 2,617,300 | 105,530 | |
Progressive Corp. | 907,000 | 105,402 | |
Citigroup Inc. | 1,959,200 | 81,640 | |
CME Group Inc. | 442,468 | 78,374 | |
Goldman Sachs Group Inc. | 150,000 | 43,958 | |
Morgan Stanley | 276,800 | 21,870 | |
Discover Financial Services | 182,525 | 16,595 | |
3,854,792 |
Shares | Market Value• ($000) | ||
Health Care (31.4%) | |||
Eli Lilly & Co. | 15,712,718 | 5,080,707 | |
*,2 | Biogen Inc. | 8,920,561 | 2,381,790 |
Amgen Inc. | 9,218,855 | 2,077,930 | |
AstraZeneca plc ADR | 25,876,758 | 1,419,081 | |
Thermo Fisher Scientific Inc. | 2,257,639 | 1,145,052 | |
* | Boston Scientific Corp. | 26,465,244 | 1,024,999 |
Bristol-Myers Squibb Co. | 11,956,923 | 850,018 | |
Novartis AG ADR | 10,499,605 | 798,075 | |
Roche Holding AG | 1,722,423 | 560,705 | |
* | BioMarin Pharmaceutical Inc. | 6,246,579 | 529,523 |
* | BeiGene Ltd. ADR | 2,123,790 | 286,329 |
Abbott Laboratories | 2,578,995 | 249,544 | |
Zimmer Biomet Holdings Inc. | 2,381,230 | 248,958 | |
CVS Health Corp. | 2,359,490 | 225,025 | |
* | Elanco Animal Health Inc. (XNYS) | 13,507,019 | 167,622 |
Agilent Technologies Inc. | 809,226 | 98,362 | |
* | IQVIA Holdings Inc. | 442,224 | 80,105 |
Stryker Corp. | 359,200 | 72,752 | |
Medtronic plc | 723,190 | 58,398 | |
* | Edwards Lifesciences Corp. | 492,100 | 40,662 |
Sanofi ADR | 968,000 | 36,803 | |
3 | Siemens Healthineers AG | 851,517 | 36,526 |
Alcon Inc. | 433,987 | 25,249 | |
Danaher Corp. | 56,902 | 14,697 | |
GSK plc ADR | 438,400 | 12,902 | |
* | Waters Corp. | 27,030 | 7,285 |
* | Seagen Inc. | 24,040 | 3,289 |
UnitedHealth Group Inc. | 5,735 | 2,896 | |
* | Zimvie Inc. | 211,223 | 2,085 |
Humana Inc. | 4,276 | 2,075 | |
17,539,444 | |||
Industrials (12.0%) | |||
FedEx Corp. | 8,931,358 | 1,326,039 | |
* | Southwest Airlines Co. | 26,197,378 | 807,927 |
Siemens AG (Registered) | 8,037,669 | 785,625 | |
Union Pacific Corp. | 2,240,900 | 436,572 | |
Airbus SE | 4,812,239 | 414,817 | |
* | United Airlines Holdings Inc. | 12,391,583 | 403,098 |
Caterpillar Inc. | 2,230,068 | 365,910 | |
* | Delta Air Lines Inc. | 10,588,850 | 297,123 |
United Parcel Service Inc. Class B | 1,543,670 | 249,364 | |
* | American Airlines Group Inc. | 19,365,013 | 233,155 |
Textron Inc. | 3,488,600 | 203,246 | |
* | TransDigm Group Inc. | 343,916 | 180,494 |
* | Alaska Air Group Inc. | 3,765,100 | 147,404 |
Carrier Global Corp. | 3,227,000 | 114,752 | |
General Dynamics Corp. | 540,330 | 114,642 | |
CSX Corp. | 3,222,000 | 85,834 | |
Otis Worldwide Corp. | 1,324,100 | 84,478 | |
Deere & Co. | 248,790 | 83,068 | |
JB Hunt Transport Services Inc. | 515,900 | 80,697 |
Shares | Market Value• ($000) | ||
Raytheon Technologies Corp. | 480,000 | 39,293 | |
L3Harris Technologies Inc. | 189,000 | 39,280 | |
Honeywell International Inc. | 230,000 | 38,403 | |
Rockwell Automation Inc. | 173,050 | 37,225 | |
* | Lyft Inc. Class A | 2,149,970 | 28,315 |
nVent Electric plc | 887,000 | 28,038 | |
AMETEK Inc. | 221,000 | 25,064 | |
Pentair plc | 580,000 | 23,565 | |
* | Ryanair Holdings plc ADR | 250,000 | 14,605 |
* | Uber Technologies Inc. | 116,350 | 3,083 |
6,691,116 | |||
Information Technology (24.8%) | |||
Microsoft Corp. | 9,164,080 | 2,134,314 | |
Texas Instruments Inc. | 11,474,272 | 1,775,988 | |
KLA Corp. | 4,129,720 | 1,249,777 | |
* | Adobe Inc. | 4,493,757 | 1,236,682 |
Micron Technology Inc. | 24,436,874 | 1,224,287 | |
Intel Corp. | 30,524,218 | 786,609 | |
NetApp Inc. | 8,622,891 | 533,326 | |
Oracle Corp. | 8,322,700 | 508,267 | |
Intuit Inc. | 1,285,000 | 497,706 | |
QUALCOMM Inc. | 3,550,106 | 401,091 | |
Visa Inc. Class A | 2,210,700 | 392,731 | |
Analog Devices Inc. | 2,698,410 | 375,996 | |
HP Inc. | 13,880,746 | 345,908 | |
1 | Telefonaktiebolaget LM Ericsson ADR | 52,002,338 | 298,493 |
Hewlett Packard Enterprise Co. | 24,592,976 | 294,624 | |
NVIDIA Corp. | 1,965,790 | 238,627 | |
Apple Inc. | 1,675,000 | 231,485 | |
* | Splunk Inc. | 2,359,040 | 177,400 |
Cisco Systems Inc. | 4,371,279 | 174,851 | |
Entegris Inc. | 1,835,622 | 152,393 | |
Applied Materials Inc. | 1,418,800 | 116,242 | |
Corning Inc. | 3,990,600 | 115,807 | |
* | PayPal Holdings Inc. | 1,140,770 | 98,186 |
Mastercard Inc. Class A | 308,300 | 87,662 | |
* | Autodesk Inc. | 464,200 | 86,713 |
Fidelity National Information Services Inc. | 794,000 | 60,003 | |
* | Palo Alto Networks Inc. | 328,500 | 53,805 |
*,1 | BlackBerry Ltd. | 9,975,500 | 46,885 |
* | Western Digital Corp. | 1,160,000 | 37,758 |
* | Keysight Technologies Inc. | 198,200 | 31,189 |
Teradyne Inc. | 327,100 | 24,582 | |
* | Salesforce Inc. | 101,800 | 14,643 |
VMware Inc. Class A | 121,612 | 12,947 | |
Dell Technologies Inc. Class C | 275,700 | 9,421 | |
Infineon Technologies AG ADR | 75,000 | 1,647 | |
* | Arista Networks Inc. | 4,000 | 452 |
* | Unity Software Inc. | 7,900 | 252 |
* | RingCentral Inc. Class A | 5,550 | 222 |
* | Okta Inc. | 3,500 | 199 |
13,829,170 | |||
Materials (1.5%) | |||
Albemarle Corp. | 1,115,135 | 294,886 | |
Glencore plc | 34,658,839 | 182,133 |
Shares | Market Value• ($000) | ||
Freeport-McMoRan Inc. | 3,146,900 | 86,005 | |
Linde plc | 264,500 | 71,306 | |
Corteva Inc. | 1,238,116 | 70,758 | |
DuPont de Nemours Inc. | 1,345,056 | 67,791 | |
Dow Inc. | 1,343,817 | 59,034 | |
831,913 | |||
Total Common Stocks (Cost $24,791,650) | 54,252,011 | ||
Temporary Cash Investments (3.0%) | |||
Money Market Fund (3.0%) | |||
4,5 | Vanguard Market Liquidity Fund, 2.828% (Cost $1,696,643) | 16,972,734 | 1,696,764 |
Total Investments (100.2%) (Cost $26,488,293) | 55,948,775 | ||
Other Assets and Liabilities—Net (-0.2%) | (107,808) | ||
Net Assets (100%) | 55,840,967 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $117,341,000. |
2 | Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
3 | 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 September 30, 2022, the aggregate value was $36,526,000, representing 0.1% of net assets. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $122,699,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $23,603,972) | 50,948,728 |
Affiliated Issuers (Cost $2,884,321) | 5,000,047 |
Total Investments in Securities | 55,948,775 |
Investment in Vanguard | 2,256 |
Cash | 100,504 |
Receivables for Investment Securities Sold | 13,438 |
Receivables for Accrued Income | 57,439 |
Receivables for Capital Shares Issued | 10,129 |
Total Assets | 56,132,541 |
Liabilities | |
Foreign Currency Due to Custodian, at Value (Proceeds $1) | 1 |
Payables for Investment Securities Purchased | 128,143 |
Collateral for Securities on Loan | 122,699 |
Payables to Investment Advisor | 28,340 |
Payables for Capital Shares Redeemed | 9,168 |
Payables to Vanguard | 3,223 |
Total Liabilities | 291,574 |
Net Assets | 55,840,967 |
1 Includes $117,341 of securities on loan. | |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 21,324,346 |
Total Distributable Earnings (Loss) | 34,516,621 |
Net Assets | 55,840,967 |
Investor Shares—Net Assets | |
Applicable to 33,605,504 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 4,243,141 |
Net Asset Value Per Share—Investor Shares | $126.26 |
Admiral Shares—Net Assets | |
Applicable to 394,263,045 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 51,597,826 |
Net Asset Value Per Share—Admiral Shares | $130.87 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 899,268 |
Interest—Unaffiliated Issuers | — |
Interest—Affiliated Issuers | 11,197 |
Securities Lending—Net | 91 |
Total Income | 910,556 |
Expenses | |
Investment Advisory Fees—Note B | 123,484 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 10,059 |
Management and Administrative—Admiral Shares | 77,944 |
Marketing and Distribution—Investor Shares | 335 |
Marketing and Distribution—Admiral Shares | 1,932 |
Custodian Fees | 2,090 |
Auditing Fees | 29 |
Shareholders’ Reports—Investor Shares | 48 |
Shareholders’ Reports—Admiral Shares | 158 |
Trustees’ Fees and Expenses | 26 |
Other Expenses | 42 |
Total Expenses | 216,147 |
Expenses Paid Indirectly | (8) |
Net Expenses | 216,139 |
Net Investment Income | 694,417 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 38 |
Investment Securities Sold—Unaffiliated Issuers | 5,073,476 |
Investment Securities Sold—Affiliated Issuers | 177,523 |
Foreign Currencies | 802 |
Realized Net Gain (Loss) | 5,251,839 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (16,990,330) |
Investment Securities—Affiliated Issuers | (472,429) |
Foreign Currencies | (1,449) |
Change in Unrealized Appreciation (Depreciation) | (17,464,208) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,517,952) |
1 | Dividends are net of foreign withholding taxes of $16,583,000. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 694,417 | 577,541 |
Realized Net Gain (Loss) | 5,251,839 | 7,262,792 |
Change in Unrealized Appreciation (Depreciation) | (17,464,208) | 10,391,810 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,517,952) | 18,232,143 |
Distributions | ||
Investor Shares | (553,707) | (551,613) |
Admiral Shares | (6,487,189) | (5,760,196) |
Total Distributions | (7,040,896) | (6,311,809) |
Capital Share Transactions | ||
Investor Shares | (197,112) | (897,885) |
Admiral Shares | 659,600 | (1,408,182) |
Net Increase (Decrease) from Capital Share Transactions | 462,488 | (2,306,067) |
Total Increase (Decrease) | (18,096,360) | 9,614,267 |
Net Assets | ||
Beginning of Period | 73,937,327 | 64,323,060 |
End of Period | 55,840,967 | 73,937,327 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $168.72 | $142.86 | $133.12 | $147.61 | $126.84 |
Investment Operations | |||||
Net Investment Income1 | 1.456 | 1.183 | 1.745 | 1.715 | 1.474 |
Net Realized and Unrealized Gain (Loss) on Investments | (27.430) | 39.134 | 17.947 | (6.495) | 26.529 |
Total from Investment Operations | (25.974) | 40.317 | 19.692 | (4.780) | 28.003 |
Distributions | |||||
Dividends from Net Investment Income | (1.150) | (1.542) | (1.690) | (1.470) | (1.400) |
Distributions from Realized Capital Gains | (15.336) | (12.915) | (8.262) | (8.240) | (5.833) |
Total Distributions | (16.486) | (14.457) | (9.952) | (9.710) | (7.233) |
Net Asset Value, End of Period | $126.26 | $168.72 | $142.86 | $133.12 | $147.61 |
Total Return2 | -17.25% | 29.74% | 15.05% | -2.41% | 22.86% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $4,243 | $5,878 | $5,697 | $6,095 | $7,126 |
Ratio of Total Expenses to Average Net Assets | 0.38%3 | 0.38% | 0.38% | 0.38% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 0.95% | 0.73% | 1.31% | 1.32% | 1.08% |
Portfolio Turnover Rate | 3% | 5% | 6% | 5% | 8% |
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 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.38%. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $174.92 | $148.12 | $138.02 | $153.09 | $131.45 |
Investment Operations | |||||
Net Investment Income1 | 1.621 | 1.345 | 1.920 | 1.880 | 1.622 |
Net Realized and Unrealized Gain (Loss) on Investments | (28.426) | 40.564 | 18.600 | (6.756) | 27.508 |
Total from Investment Operations | (26.805) | 41.909 | 20.520 | (4.876) | 29.130 |
Distributions | |||||
Dividends from Net Investment Income | (1.343) | (1.716) | (1.853) | (1.647) | (1.444) |
Distributions from Realized Capital Gains | (15.902) | (13.393) | (8.567) | (8.547) | (6.046) |
Total Distributions | (17.245) | (15.109) | (10.420) | (10.194) | (7.490) |
Net Asset Value, End of Period | $130.87 | $174.92 | $148.12 | $138.02 | $153.09 |
Total Return2 | -17.19% | 29.83% | 15.13% | -2.34% | 22.95% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $51,598 | $68,059 | $58,626 | $57,177 | $62,361 |
Ratio of Total Expenses to Average Net Assets | 0.31%3 | 0.31% | 0.31% | 0.31% | 0.31% |
Ratio of Net Investment Income to Average Net Assets | 1.02% | 0.80% | 1.39% | 1.39% | 1.15% |
Portfolio Turnover Rate | 3% | 5% | 6% | 5% | 8% |
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 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.31%. |
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. | PRIMECAP Management Company provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the year ended September 30, 2022, the investment advisory fee represented an effective annual basic rate of 0.18% of the fund’s average net assets. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, 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. |
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 year ended September 30, 2022, custodian fee offset arrangements reduced the fund’s expenses by $8,000 (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 | 52,214,365 | 2,037,646 | — | 54,252,011 |
Temporary Cash Investments | 1,696,764 | — | — | 1,696,764 |
Total | 53,911,129 | 2,037,646 | — | 55,948,775 |
F. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 238,423 |
Total Distributable Earnings (Loss) | (238,423) |
Amount ($000) | |
Undistributed Ordinary Income | 559,871 |
Undistributed Long-Term Gains | 4,503,800 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 29,452,712 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 804,431 | 722,975 |
Long-Term Capital Gains | 6,236,465 | 5,588,834 |
Total | 7,040,896 | 6,311,809 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 26,495,656 |
Gross Unrealized Appreciation | 33,366,621 |
Gross Unrealized Depreciation | (3,913,502) |
Net Unrealized Appreciation (Depreciation) | 29,453,119 |
G. | During the year ended September 30, 2022, the fund purchased $2,029,281,000 of investment securities and sold $7,813,884,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Year Ended September 30, | |||||
2022 | 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 229,327 | 1,457 | 348,874 | 2,168 | |
Issued in Lieu of Cash Distributions | 527,986 | 3,387 | 536,328 | 3,657 | |
Redeemed | (954,425) | (6,080) | (1,783,087) | (10,861) | |
Net Increase (Decrease)—Investor Shares | (197,112) | (1,236) | (897,885) | (5,036) | |
Admiral Shares | |||||
Issued | 1,600,922 | 10,130 | 3,667,358 | 21,693 | |
Issued in Lieu of Cash Distributions | 6,077,212 | 37,637 | 5,395,981 | 35,507 | |
Redeemed | (7,018,534) | (42,598) | (10,471,521) | (63,912) | |
Net Increase (Decrease)—Admiral Shares | 659,600 | 5,169 | (1,408,182) | (6,712) |
I. | Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows: |
Current Period Transactions | ||||||||
Sep. 30, 2021 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) | Sep. 30, 2022 Market Value ($000) | |
Biogen Inc. | 2,594,892 | 5,551 | 67,701 | 44,990 | (195,942) | — | — | 2,381,790 |
Mattel Inc. | 510,740 | — | 4,092 | 15 | 11,097 | — | — | 517,760 |
Plantronics Inc. | 93,716 | — | 145,804 | 132,499 | (80,411) | — | — | — |
Vanguard Market Liquidity Fund | 1,726,256 | NA1 | NA1 | (318) | (7) | 11,197 | 38 | 1,696,764 |
Whirlpool Corp. | NA2 | — | 1,596 | 337 | (207,166) | — | — | 403,733 |
Total | 4,925,604 | 5,551 | 219,193 | 177,523 | (472,429) | 11,197 | 38 | 5,000,047 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
2 | Not applicable—at September 30, 2021, the issuer was not an affiliated company of the fund. |
J. | Management has determined that no events or transactions occurred subsequent to September 30, 2022, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 18, 2022
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
Chris D. Mclsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Vanguard Target Retirement Income Fund |
Vanguard Target Retirement 2020 Fund |
Vanguard Target Retirement 2025 Fund |
Vanguard Target Retirement 2030 Fund |
Vanguard Target Retirement 2035 Fund |
Vanguard Target Retirement 2040 Fund |
1 | |
2 | |
4 | |
18 | |
32 | |
46 | |
59 | |
72 |
• | The 12 months ended September 30, 2022, were a challenging period for financial markets. Early on, pent-up demand helped spur global growth and push unemployment rates down. The economic backdrop deteriorated, however, as inflation soared, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, prompting aggressive tightening by the Federal Reserve and increased fears of a recession. |
• | Returns for the six Vanguard Target Retirement Funds covered in this report ranged from –19.42% for the 2040 Fund to –14.19% for the Income Fund. (The funds with target dates of 2045 through 2070 are covered in a separate report). |
• | Vanguard Target Retirement Funds are designed to reach an allocation of 70% bonds and 30% stocks within seven years after their target dates. The funds invest all of their assets in Vanguard index funds that seek to match the performance of broad stock and bond market indexes. |
• | For the 10 years ended September 30, the funds’ average annual returns ranged from 3.31% for the Income Fund to 7.40% for the 2040 Fund. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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 September 30, 2022 | |||
Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Target Retirement Income Fund | $1,000.00 | $883.30 | $0.38 |
Target Retirement 2020 Fund | $1,000.00 | $861.50 | $0.37 |
Target Retirement 2025 Fund | $1,000.00 | $842.90 | $0.37 |
Target Retirement 2030 Fund | $1,000.00 | $830.90 | $0.37 |
Target Retirement 2035 Fund | $1,000.00 | $822.60 | $0.37 |
Target Retirement 2040 Fund | $1,000.00 | $813.40 | $0.36 |
Based on Hypothetical 5% Yearly Return | |||
Target Retirement Income Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2020 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2025 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2030 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2035 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2040 Fund | $1,000.00 | $1,024.67 | $0.41 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement Income Fund | -14.19% | 1.96% | 3.31% | $13,855 | |
Target Income Composite Index | -14.03 | 2.23 | 3.54 | 14,163 | |
Bloomberg U.S. Aggregate Bond Index | -14.60 | -0.27 | 0.89 | 10,927 |
Vanguard Total Bond Market II Index Fund Investor Shares | 37.5% |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 17.3 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 17.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 16.5 |
Vanguard Total International Stock Index Fund Investor Shares | 11.6 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.8%) | ||||||
U.S. Stock Fund (16.9%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 37,700,093 | 6,173,767 | ||||
International Stock Fund (11.5%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 285,109,074 | 4,191,103 | ||||
U.S. Bond Funds (54.1%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,458,579,174 | 13,535,615 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 263,067,990 | 6,232,081 | ||||
19,767,696 | ||||||
International Bond Fund (16.3%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 232,246,714 | 5,936,226 | |||
Total Investment Companies (Cost $34,885,582) | 36,068,792 | |||||
Temporary Cash Investments (1.2%) | ||||||
Money Market Fund (1.2%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $446,261) | 4,464,420 | 446,308 | |||
Total Investments (100.0%) (Cost $35,331,843) | 36,515,100 | |||||
Other Assets and Liabilities—Net (0.0%) | 6,853 | |||||
Net Assets (100%) | 36,521,953 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 2,002 | 224,349 | (10,841) |
E-mini S&P 500 Index | December 2022 | 1,299 | 233,918 | (32,475) |
(43,316) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $35,331,843) | 36,515,100 |
Cash | 3,924 |
Cash Collateral Pledged—Futures Contracts | 16,597 |
Receivables for Investment Securities Sold | 140,000 |
Receivables for Accrued Income | 151,727 |
Receivables for Capital Shares Issued | 24,211 |
Total Assets | 36,851,559 |
Liabilities | |
Payables for Investment Securities Purchased | 295,595 |
Payables for Capital Shares Redeemed | 29,803 |
Variation Margin Payable—Futures Contracts | 4,208 |
Total Liabilities | 329,606 |
Net Assets | 36,521,953 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 35,083,381 |
Total Distributable Earnings (Loss) | 1,438,572 |
Net Assets | 36,521,953 |
Net Assets | |
Applicable to 3,044,442,720 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 36,521,953 |
Net Asset Value Per Share | $12.00 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 682,240 |
Net Investment Income—Note B | 682,240 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 30,974 |
Affiliated Funds Sold1 | 350,674 |
Futures Contracts | (13,904) |
Realized Net Gain (Loss) | 367,744 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (5,139,397) |
Futures Contracts | (38,643) |
Change in Unrealized Appreciation (Depreciation) | (5,178,040) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (4,128,056) |
1 | Includes $60,324,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 682,240 | 322,402 |
Realized Net Gain (Loss) | 367,744 | 1,040,422 |
Change in Unrealized Appreciation (Depreciation) | (5,178,040) | 86,983 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (4,128,056) | 1,449,807 |
Distributions | ||
Total Distributions | (1,512,703) | (609,990) |
Capital Share Transactions | ||
Issued | 4,128,690 | 3,092,305 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement Income Fund—Note G | 8,507,454 | — |
Issued in Connection with Acquisition of Vanguard Target Retirement 2015 Fund—Note G | 17,151,053 | — |
Issued in Lieu of Cash Distributions | 1,422,170 | 575,385 |
Redeemed | (5,368,260) | (5,761,722) |
Net Increase (Decrease) from Capital Share Transactions | 25,841,107 | (2,094,032) |
Total Increase (Decrease) | 20,200,348 | (1,254,215) |
Net Assets | ||
Beginning of Period | 16,321,605 | 17,575,820 |
End of Period | 36,521,953 | 16,321,605 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $15.24 | $14.54 | $13.85 | $13.52 | $13.46 |
Investment Operations | |||||
Net Investment Income1 | .380 | .278 | .308 | .341 | .334 |
Capital Gain Distributions Received1 | .017 | .056 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.381) | .887 | .696 | .533 | .107 |
Total from Investment Operations | (1.984) | 1.221 | 1.004 | .874 | .442 |
Distributions | |||||
Dividends from Net Investment Income | (.382) | (.256) | (.297) | (.352) | (.327) |
Distributions from Realized Capital Gains | (.874) | (.265) | (.017) | (.192) | (.055) |
Total Distributions | (1.256) | (.521) | (.314) | (.544) | (.382) |
Net Asset Value, End of Period | $12.00 | $15.24 | $14.54 | $13.85 | $13.52 |
Total Return2 | -14.19% | 8.48% | 7.35% | 6.75% | 3.31% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $36,522 | $16,322 | $17,576 | $16,984 | $16,613 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.12% | 0.12% | 0.12% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.82% | 1.84% | 2.19% | 2.54% | 2.47% |
Portfolio Turnover Rate | 19%4 | 6% | 17% | 10% | 6% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement Income Fund on February 11, 2022, the AFFE was 0.12% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis and remained 0.08% following the acquisition of Vanguard Target Retirement 2015 Fund on July 8, 2022. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 134,892 |
Total Distributable Earnings (Loss) | (134,892) |
Amount ($000) | |
Undistributed Ordinary Income | 136,772 |
Undistributed Long-Term Gains | 136,114 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (13,347) |
Net Unrealized Gains (Losses) | 1,179,033 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 599,113 | 335,548 |
Long-Term Capital Gains | 913,590 | 274,442 |
Total | 1,512,703 | 609,990 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 35,336,067 |
Gross Unrealized Appreciation | 4,005,098 |
Gross Unrealized Depreciation | (2,826,065) |
Net Unrealized Appreciation (Depreciation) | 1,179,033 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 308,419 | 204,713 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement Income Fund—Note G | 610,729 | — | ||
Issued in Connection with Acquisition of Vanguard Target Retirement 2015 Fund—Note G | 1,349,414 | — | ||
Issued in Lieu of Cash Distributions | 102,470 | 38,362 | ||
Redeemed | (397,574) | (380,863) | ||
Net Increase (Decrease) in Shares Outstanding | 1,973,458 | (137,788) |
Amount ($000) | |
Net Investment Income | 1,098,591 |
Realized Net Gain (Loss) | 942,590 |
Change in Unrealized Appreciation (Depreciation) | (6,960,968) |
Net increase (Decrease) In Net Assets Resulting from Operations | (4,919,787) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost1 ($000) | Proceeds from Securities Sold2 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 199,815 | NA3 | NA3 | (83) | 37 | 3,272 | 3 | 446,308 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 2,754,748 | 4,626,027 | 779,923 | (923) | (367,848) | 254,399 | — | 6,232,081 |
Vanguard Total Bond Market II Index Fund | 6,026,797 | 10,302,818 | 699,447 | (50,884) | (2,043,669) | 189,431 | 14,249 | 13,535,615 |
Vanguard Total International Bond Index Fund | 2,591,754 | 76,771 | 2,563,003 | 153,556 | (259,078) | 60,050 | 16,722 | — |
Vanguard Total International Bond II Index Fund | 26,337 | 7,214,564 | 377,683 | (35,301) | (891,691) | 26,973 | — | 5,936,226 |
Vanguard Total International Stock Index Fund | 1,917,131 | 2,847,239 | 102,692 | 10,668 | (481,243) | 83,924 | — | 4,191,103 |
Vanguard Total Stock Market Index Fund | 2,785,275 | 2,686,754 | 1,126,493 | 273,641 | 1,554,590 | 64,191 | — | 6,173,767 |
Total | 16,301,857 | 27,754,1734 | 5,649,241 | 350,674 | (2,488,902)4 | 682,240 | 30,974 | 36,515,100 |
1 | Includes $412,000,000 of portfolio securities received as a result of in-kind purchases of the fund’s capital shares. |
2 | Includes $314,560,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
3 | Not applicable—purchases and sales are for temporary cash investment purposes. |
4 | Includes securities of $7,570,972,000 and unrealized appreciation of $918,723,000 related to the acquisition of the Vanguard Institutional Target Retirement Income Fund and securities of $15,233,090,000 and unrealized appreciation of $1,731,772,000 related to the acquisition of the Vanguard Target Retirement 2015 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2020 Fund | -15.83% | 2.91% | 5.46% | $17,018 | |
Target 2020 Composite Index | -15.53 | 3.26 | 5.74 | 17,480 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Bond Market II Index Fund Investor Shares | 32.1% |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 25.1 |
Vanguard Total International Stock Index Fund Investor Shares | 17.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 14.6 |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 11.1 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.7%) | ||||||
U.S. Stock Fund (24.8%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 60,334,357 | 9,880,354 | ||||
International Stock Fund (16.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 457,780,231 | 6,729,370 | ||||
U.S. Bond Funds (42.6%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,357,231,958 | 12,595,113 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 184,618,712 | 4,373,617 | ||||
16,968,730 | ||||||
International Bond Fund (14.4%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 224,800,592 | 5,745,903 | |||
Total Investment Companies (Cost $36,416,382) | 39,324,357 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $500,070) | 5,002,371 | 500,087 | |||
Total Investments (100.0%) (Cost $36,916,452) | 39,824,444 | |||||
Other Assets and Liabilities—Net (0.0%) | 10,330 | |||||
Net Assets (100%) | 39,834,774 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 2,296 | 257,295 | (12,474) |
E-mini S&P 500 Index | December 2022 | 1,356 | 244,182 | (33,900) |
(46,374) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $36,916,452) | 39,824,444 |
Cash Collateral Pledged—Futures Contracts | 17,700 |
Receivables for Investment Securities Sold | 15,000 |
Receivables for Accrued Income | 114,858 |
Receivables for Capital Shares Issued | 26,036 |
Total Assets | 39,998,038 |
Liabilities | |
Payables for Investment Securities Purchased | 122,667 |
Payables for Capital Shares Redeemed | 36,124 |
Variation Margin Payable—Futures Contracts | 4,473 |
Total Liabilities | 163,264 |
Net Assets | 39,834,774 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 35,444,479 |
Total Distributable Earnings (Loss) | 4,390,295 |
Net Assets | 39,834,774 |
Net Assets | |
Applicable to 1,570,420,088 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 39,834,774 |
Net Asset Value Per Share | $25.37 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 947,441 |
Net Investment Income—Note B | 947,441 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 42,547 |
Affiliated Funds Sold1 | 1,476,336 |
Futures Contracts | (38,182) |
Realized Net Gain (Loss) | 1,480,701 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (9,826,110) |
Futures Contracts | (39,424) |
Change in Unrealized Appreciation (Depreciation) | (9,865,534) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (7,437,392) |
1 | Includes $200,272,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 947,441 | 525,644 |
Realized Net Gain (Loss) | 1,480,701 | 4,149,780 |
Change in Unrealized Appreciation (Depreciation) | (9,865,534) | (639,346) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (7,437,392) | 4,036,078 |
Distributions | ||
Total Distributions | (4,080,032) | (1,972,170) |
Capital Share Transactions | ||
Issued | 3,925,733 | 4,223,125 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2020 Fund—Note G | 27,887,495 | — |
Issued in Lieu of Cash Distributions | 3,912,325 | 1,914,388 |
Redeemed | (9,745,997) | (14,716,058) |
Net Increase (Decrease) from Capital Share Transactions | 25,979,556 | (8,578,545) |
Total Increase (Decrease) | 14,462,132 | (6,514,637) |
Net Assets | ||
Beginning of Period | 25,372,642 | 31,887,279 |
End of Period | 39,834,774 | 25,372,642 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $36.04 | $33.79 | $32.24 | $32.14 | $31.19 |
Investment Operations | |||||
Net Investment Income1 | .725 | .613 | .713 | .778 | .729 |
Capital Gain Distributions Received1 | .033 | .110 | — | — | .002 |
Net Realized and Unrealized Gain (Loss) on Investments | (5.358) | 3.680 | 1.987 | .736 | 1.079 |
Total from Investment Operations | (4.600) | 4.403 | 2.700 | 1.514 | 1.810 |
Distributions | |||||
Dividends from Net Investment Income | (.789) | (.554) | (.789) | (.745) | (.631) |
Distributions from Realized Capital Gains | (5.281) | (1.599) | (.361) | (.669) | (.229) |
Total Distributions | (6.070) | (2.153) | (1.150) | (1.414) | (.860) |
Net Asset Value, End of Period | $25.37 | $36.04 | $33.79 | $32.24 | $32.14 |
Total Return2 | -15.83% | 13.37% | 8.51% | 5.29% | 5.87% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $39,835 | $25,373 | $31,887 | $32,790 | $33,114 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.13% | 0.13% | 0.13% | 0.13% |
Ratio of Net Investment Income to Average Net Assets | 2.48% | 1.73% | 2.21% | 2.51% | 2.30% |
Portfolio Turnover Rate | 14%4 | 5% | 19% | 13% | 10% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2020 Fund on February 11, 2022, the AFFE was 0.13% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 361,254 |
Total Distributable Earnings (Loss) | (361,254) |
Amount ($000) | |
Undistributed Ordinary Income | 638,509 |
Undistributed Long-Term Gains | 893,309 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (46,219) |
Net Unrealized Gains (Losses) | 2,904,696 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 535,324 | 538,746 |
Long-Term Capital Gains | 3,544,708 | 1,433,424 |
Total | 4,080,032 | 1,972,170 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 36,919,748 |
Gross Unrealized Appreciation | 5,877,767 |
Gross Unrealized Depreciation | (2,973,071) |
Net Unrealized Appreciation (Depreciation) | 2,904,696 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 132,504 | 119,777 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2020 Fund—Note G | 937,710 | — | ||
Issued in Lieu of Cash Distributions | 126,123 | 55,911 | ||
Redeemed | (329,983) | (415,260) | ||
Net Increase (Decrease) in Shares Outstanding | 866,354 | (239,572) |
Amount ($000) | |
Net Investment Income | 1,202,747 |
Realized Net Gain (Loss) | 2,058,431 |
Change in Unrealized Appreciation (Depreciation) | (11,049,929) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (7,788,751) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 323,675 | NA2 | NA2 | (115) | 4 | 4,140 | 4 | 500,087 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 2,438,716 | 3,117,113 | 875,829 | (4,981) | (301,402) | 235,326 | — | 4,373,617 |
Vanguard Total Bond Market II Index Fund | 7,722,582 | 9,317,083 | 2,029,476 | (154,047) | (2,261,029) | 242,903 | 21,282 | 12,595,113 |
Vanguard Total International Bond Index Fund | 3,295,277 | 97,609 | 3,258,532 | 185,053 | (319,407) | 76,351 | 21,261 | — |
Vanguard Total International Bond II Index Fund | 50,130 | 7,250,556 | 627,772 | (39,807) | (887,204) | 34,344 | — | 5,745,903 |
Vanguard Total International Stock Index Fund | 4,681,722 | 4,008,302 | 756,274 | 120,820 | (1,325,200) | 201,421 | — | 6,729,370 |
Vanguard Total Stock Market Index Fund | 6,855,100 | 4,239,865 | 2,832,333 | 1,369,413 | 248,309 | 152,956 | — | 9,880,354 |
Total | 25,367,202 | 28,030,5283 | 10,380,216 | 1,476,336 | (4,845,929)3 | 947,441 | 42,547 | 39,824,444 |
1 | Includes $725,950,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $22,801,785,000 and unrealized appreciation of $4,980,181,000 related to the acquisition of the Vanguard Institutional Target Retirement 2020 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2025 Fund | -17.53% | 3.15% | 5.96% | $17,845 | |
Target 2025 Composite Index | -17.09 | 3.58 | 6.29 | 18,399 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 32.8% |
Vanguard Total Bond Market II Index Fund Investor Shares | 29.1 |
Vanguard Total International Stock Index Fund Investor Shares | 21.6 |
Vanguard Total International Bond II Index Fund Institutional Shares | 13.1 |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 3.4 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.7%) | ||||||
U.S. Stock Fund (32.4%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 137,218,673 | 22,470,930 | ||||
International Stock Fund (21.3%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,005,811,946 | 14,785,436 | ||||
U.S. Bond Funds (32.1%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 2,149,812,996 | 19,950,264 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 98,505,354 | 2,333,592 | ||||
22,283,856 | ||||||
International Bond Fund (12.9%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 350,713,083 | 8,964,226 | |||
Total Investment Companies (Cost $62,139,303) | 68,504,448 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $861,215) | 8,614,472 | 861,189 | |||
Total Investments (100.0%) (Cost $63,000,518) | 69,365,637 | |||||
Other Assets and Liabilities—Net (0.0%) | 20,762 | |||||
Net Assets (100%) | 69,386,399 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 3,993 | 447,466 | (21,750) |
E-mini S&P 500 Index | December 2022 | 2,367 | 426,237 | (58,897) |
(80,647) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $63,000,518) | 69,365,637 |
Cash Collateral Pledged—Futures Contracts | 30,865 |
Receivables for Accrued Income | 95,566 |
Receivables for Capital Shares Issued | 58,944 |
Total Assets | 69,551,012 |
Liabilities | |
Payables for Investment Securities Purchased | 100,769 |
Payables for Capital Shares Redeemed | 56,041 |
Variation Margin Payable—Futures Contracts | 7,803 |
Total Liabilities | 164,613 |
Net Assets | 69,386,399 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 61,612,290 |
Total Distributable Earnings (Loss) | 7,774,109 |
Net Assets | 69,386,399 |
Net Assets | |
Applicable to 4,284,115,477 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 69,386,399 |
Net Asset Value Per Share | $16.20 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,430,621 |
Net Investment Income—Note B | 1,430,621 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 64,833 |
Affiliated Funds Sold1 | 1,477,413 |
Futures Contracts | (69,408) |
Realized Net Gain (Loss) | 1,472,838 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (17,326,849) |
Futures Contracts | (69,710) |
Change in Unrealized Appreciation (Depreciation) | (17,396,559) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (14,493,100) |
1 | Includes $495,230,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,430,621 | 766,153 |
Realized Net Gain (Loss) | 1,472,838 | 5,800,618 |
Change in Unrealized Appreciation (Depreciation) | (17,396,559) | 633,334 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (14,493,100) | 7,200,105 |
Distributions | ||
Total Distributions | (5,793,135) | (2,094,825) |
Capital Share Transactions | ||
Issued | 7,986,116 | 8,111,163 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2025 Fund—Note G | 47,651,059 | — |
Issued in Lieu of Cash Distributions | 5,596,269 | 2,045,136 |
Redeemed | (12,829,147) | (20,513,757) |
Net Increase (Decrease) from Capital Share Transactions | 48,404,297 | (10,357,458) |
Total Increase (Decrease) | 28,118,062 | (5,252,178) |
Net Assets | ||
Beginning of Period | 41,268,337 | 46,520,515 |
End of Period | 69,386,399 | 41,268,337 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $22.84 | $20.56 | $19.34 | $19.02 | $18.25 |
Investment Operations | |||||
Net Investment Income1 | .413 | .362 | .438 | .464 | .419 |
Capital Gain Distributions Received1 | .019 | .063 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (3.761) | 2.792 | 1.292 | .390 | .807 |
Total from Investment Operations | (3.329) | 3.217 | 1.730 | .854 | 1.227 |
Distributions | |||||
Dividends from Net Investment Income | (.440) | (.356) | (.471) | (.434) | (.369) |
Distributions from Realized Capital Gains | (2.871) | (.581) | (.039) | (.100) | (.088) |
Total Distributions | (3.311) | (.937) | (.510) | (.534) | (.457) |
Net Asset Value, End of Period | $16.20 | $22.84 | $20.56 | $19.34 | $19.02 |
Total Return2 | -17.53% | 15.93% | 9.04% | 4.89% | 6.79% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $69,386 | $41,268 | $46,521 | $44,146 | $41,860 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.13% | 0.13% | 0.13% | 0.13% |
Ratio of Net Investment Income to Average Net Assets | 2.19% | 1.63% | 2.25% | 2.51% | 2.24% |
Portfolio Turnover Rate | 14%4 | 7% | 21% | 11% | 8% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2025 Fund on February 11, 2022, the AFFE was 0.13% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 649,402 |
Total Distributable Earnings (Loss) | (649,402) |
Amount ($000) | |
Undistributed Ordinary Income | 990,315 |
Undistributed Long-Term Gains | 527,364 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (56,897) |
Net Unrealized Gains (Losses) | 6,313,327 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 778,259 | 877,112 |
Long-Term Capital Gains | 5,014,876 | 1,217,713 |
Total | 5,793,135 | 2,094,825 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 63,052,310 |
Gross Unrealized Appreciation | 12,069,111 |
Gross Unrealized Depreciation | (5,755,784) |
Net Unrealized Appreciation (Depreciation) | 6,313,327 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 417,232 | 366,167 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2025 Fund—Note G | 2,456,240 | — | ||
Issued in Lieu of Cash Distributions | 275,136 | 95,078 | ||
Redeemed | (671,433) | (917,408) | ||
Net Increase (Decrease) in Shares Outstanding | 2,477,175 | (456,163) |
Amount ($000) | |
Net Investment Income | 1,826,095 |
Realized Net Gain (Loss) | 2,065,211 |
Change in Unrealized Appreciation (Depreciation) | (18,928,949) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,037,643) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 507,273 | NA2 | NA2 | (138) | (47) | 6,866 | 7 | 861,189 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 557,410 | 2,037,339 | 60,435 | (10) | (200,712) | 108,631 | — | 2,333,592 |
Vanguard Total Bond Market II Index Fund | 11,690,158 | 14,709,071 | 2,630,588 | (214,205) | (3,604,172) | 378,145 | 32,849 | 19,950,264 |
Vanguard Total International Bond Index Fund | 4,956,289 | 146,810 | 4,900,970 | 168,514 | (370,643) | 114,833 | 31,977 | — |
Vanguard Total International Bond II Index Fund | 170,447 | 11,155,618 | 917,856 | (59,094) | (1,384,889) | 53,903 | — | 8,964,226 |
Vanguard Total International Stock Index Fund | 9,440,163 | 9,515,579 | 828,290 | 134,516 | (3,476,532) | 433,754 | — | 14,785,436 |
Vanguard Total Stock Market Index Fund | 13,918,557 | 9,427,799 | 3,281,687 | 1,447,830 | 958,431 | 334,489 | — | 22,470,930 |
Total | 41,240,297 | 46,992,2163 | 12,619,826 | 1,477,413 | (8,078,564)3 | 1,430,621 | 64,833 | 69,365,637 |
1 | Includes $1,473,600,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $38,263,930,000 and unrealized appreciation of $9,248,285,000 related to the acquisition of the Vanguard Institutional Target Retirement 2025 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2030 Fund | -18.42% | 3.43% | 6.46% | $18,699 | |
Target 2030 Composite Index | -17.96 | 3.86 | 6.78 | 19,276 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 38.1% |
Vanguard Total Bond Market II Index Fund Investor Shares | 25.6 |
Vanguard Total International Stock Index Fund Investor Shares | 25.0 |
Vanguard Total International Bond II Index Fund Institutional Shares | 11.3 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (37.6%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 165,752,229 | 27,143,585 | ||||
International Stock Fund (24.7%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,209,542,632 | 17,780,277 | ||||
U.S. Bond Fund (25.2%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,961,426,438 | 18,202,037 | |||
International Bond Fund (11.1%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 313,986,486 | 8,025,494 | |||
Total Investment Companies (Cost $65,542,368) | 71,151,393 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $925,050) | 9,253,094 | 925,032 | |||
Total Investments (99.9%) (Cost $66,467,418) | 72,076,425 | |||||
Other Assets and Liabilities—Net (0.1%) | 39,122 | |||||
Net Assets (100%) | 72,115,547 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 4,074 | 456,543 | (22,192) |
E-mini S&P 500 Index | December 2022 | 2,713 | 488,543 | (67,851) |
(90,043) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $66,467,418) | 72,076,425 |
Cash Collateral Pledged—Futures Contracts | 34,465 |
Receivables for Investment Securities Sold | 45,000 |
Receivables for Accrued Income | 47,284 |
Receivables for Capital Shares Issued | 83,087 |
Total Assets | 72,286,261 |
Liabilities | |
Payables for Investment Securities Purchased | 100,259 |
Payables for Capital Shares Redeemed | 61,708 |
Variation Margin Payable—Futures Contracts | 8,747 |
Total Liabilities | 170,714 |
Net Assets | 72,115,547 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 65,264,715 |
Total Distributable Earnings (Loss) | 6,850,832 |
Net Assets | 72,115,547 |
Net Assets | |
Applicable to 2,394,134,780 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 72,115,547 |
Net Asset Value Per Share | $30.12 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,349,350 |
Net Investment Income—Note B | 1,349,350 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 51,080 |
Affiliated Funds Sold1 | 1,448,027 |
Futures Contracts | (82,971) |
Realized Net Gain (Loss) | 1,416,136 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (18,474,828) |
Futures Contracts | (80,071) |
Change in Unrealized Appreciation (Depreciation) | (18,554,899) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,789,413) |
1 | Includes $626,582,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,349,350 | 698,730 |
Realized Net Gain (Loss) | 1,416,136 | 5,617,193 |
Change in Unrealized Appreciation (Depreciation) | (18,554,899) | 1,194,562 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,789,413) | 7,510,485 |
Distributions | ||
Total Distributions | (5,575,104) | (1,152,250) |
Capital Share Transactions | ||
Issued | 10,016,570 | 7,928,782 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2030 Fund—Note G | 51,947,425 | — |
Issued in Lieu of Cash Distributions | 5,417,389 | 1,130,251 |
Redeemed | (10,847,444) | (20,756,460) |
Net Increase (Decrease) from Capital Share Transactions | 56,533,940 | (11,697,427) |
Total Increase (Decrease) | 35,169,423 | (5,339,192) |
Net Assets | ||
Beginning of Period | 36,946,124 | 42,285,316 |
End of Period | 72,115,547 | 36,946,124 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $43.40 | $37.63 | $35.22 | $34.74 | $32.93 |
Investment Operations | |||||
Net Investment Income1 | .730 | .679 | .782 | .830 | .754 |
Capital Gain Distributions Received1 | .028 | .098 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (7.291) | 6.031 | 2.495 | .486 | 1.744 |
Total from Investment Operations | (6.533) | 6.808 | 3.277 | 1.316 | 2.499 |
Distributions | |||||
Dividends from Net Investment Income | (.822) | (.661) | (.867) | (.767) | (.670) |
Distributions from Realized Capital Gains | (5.925) | (.377) | — | (.069) | (.019) |
Total Distributions | (6.747) | (1.038) | (.867) | (.836) | (.689) |
Net Asset Value, End of Period | $30.12 | $43.40 | $37.63 | $35.22 | $34.74 |
Total Return2 | -18.42% | 18.29% | 9.38% | 4.15% | 7.65% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $72,116 | $36,946 | $42,285 | $39,114 | $35,913 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.13% | 0.14% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.07% | 1.62% | 2.20% | 2.46% | 2.22% |
Portfolio Turnover Rate | 11%4 | 6% | 21% | 8% | 9% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2030 Fund on February 11, 2022, the AFFE was 0.13% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 744,009 |
Total Distributable Earnings (Loss) | (744,009) |
Amount ($000) | |
Undistributed Ordinary Income | 975,654 |
Undistributed Long-Term Gains | 324,102 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 5,551,076 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income | 681,656 | 877,307 |
Long-Term Capital Gains | 4,893,448 | 274,943 |
Total | 5,575,104 | 1,152,250 |
Amount ($000) | |
Tax Cost | 66,525,349 |
Gross Unrealized Appreciation | 12,270,162 |
Gross Unrealized Depreciation | (6,719,086) |
Net Unrealized Appreciation (Depreciation) | 5,551,076 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 280,621 | 190,052 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2030 Fund—Note G | 1,421,270 | — | ||
Issued in Lieu of Cash Distributions | 140,931 | 27,921 | ||
Redeemed | (299,972) | (490,414) | ||
Net Increase (Decrease) in Shares Outstanding | 1,542,850 | (272,441) |
Amount ($000) | |
Net Investment Income | 1,771,022 |
Realized Net Gain (Loss) | 2,131,364 |
Change in Unrealized Appreciation (Depreciation) | (20,165,338) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (16,262,952) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 442,408 | NA2 | NA2 | (153) | (32) | 7,285 | 6 | 925,032 |
Vanguard Total Bond Market II Index Fund | 8,672,543 | 14,440,067 | 1,522,091 | (76,411) | (3,312,071) | 326,504 | 26,906 | 18,202,037 |
Vanguard Total International Bond Index Fund | 3,745,973 | 110,958 | 3,704,191 | 85,147 | (237,887) | 86,791 | 24,168 | — |
Vanguard Total International Bond II Index Fund | 120,317 | 9,743,525 | 559,422 | (31,186) | (1,247,740) | 47,616 | — | 8,025,494 |
Vanguard Total International Stock Index Fund | 9,686,493 | 13,018,705 | 685,173 | 138,920 | (4,378,668) | 491,349 | — | 17,780,277 |
Vanguard Total Stock Market Index Fund | 14,260,086 | 12,982,203 | 2,227,428 | 1,331,710 | 797,014 | 389,805 | — | 27,143,585 |
Total | 36,927,820 | 50,295,4583 | 8,698,305 | 1,448,027 | (8,379,384)3 | 1,349,350 | 51,080 | 72,076,425 |
1 | Includes $1,606,870,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $41,680,507,000 and unrealized appreciation of $10,095,444,000 related to the acquisition of the Vanguard Institutional Target Retirement 2030 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2035 Fund | -18.87% | 3.78% | 6.99% | $19,656 | |
Target 2035 Composite Index | -18.48 | 4.21 | 7.31 | 20,256 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 42.5% |
Vanguard Total International Stock Index Fund Investor Shares | 28.2 |
Vanguard Total Bond Market II Index Fund Investor Shares | 20.4 |
Vanguard Total International Bond II Index Fund Institutional Shares | 8.9 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (41.9%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 179,880,992 | 29,457,311 | ||||
International Stock Fund (27.8%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,330,454,230 | 19,557,677 | ||||
U.S. Bond Fund (20.1%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,521,400,767 | 14,118,599 | |||
International Bond Fund (8.8%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 240,889,735 | 6,157,142 | |||
Total Investment Companies (Cost $61,587,949) | 69,290,729 | |||||
Temporary Cash Investments (1.4%) | ||||||
Money Market Fund (1.4%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $947,221) | 9,474,844 | 947,200 | |||
Total Investments (100.0%) (Cost $62,535,170) | 70,237,929 | |||||
Other Assets and Liabilities—Net (0.0%) | 12,023 | |||||
Net Assets (100%) | 70,249,952 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 3,992 | 447,353 | (21,737) |
E-mini S&P 500 Index | December 2022 | 2,877 | 518,076 | (71,924) |
(93,661) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $62,535,170) | 70,237,929 |
Cash Collateral Pledged—Futures Contracts | 35,965 |
Receivables for Investment Securities Sold | 80,000 |
Receivables for Accrued Income | 37,092 |
Receivables for Capital Shares Issued | 93,258 |
Total Assets | 70,484,244 |
Liabilities | |
Payables for Investment Securities Purchased | 168,108 |
Payables for Capital Shares Redeemed | 57,037 |
Variation Margin Payable—Futures Contracts | 9,147 |
Total Liabilities | 234,292 |
Net Assets | 70,249,952 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 61,253,676 |
Total Distributable Earnings (Loss) | 8,996,276 |
Net Assets | 70,249,952 |
Net Assets | |
Applicable to 3,798,177,214 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 70,249,952 |
Net Asset Value Per Share | $18.50 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,332,204 |
Net Investment Income—Note B | 1,332,204 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 40,037 |
Affiliated Funds Sold1 | 1,468,688 |
Futures Contracts | (91,375) |
Realized Net Gain (Loss) | 1,417,350 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (18,591,594) |
Futures Contracts | (83,001) |
Change in Unrealized Appreciation (Depreciation) | (18,674,595) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,925,041) |
1 | Includes $581,414,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,332,204 | 699,119 |
Realized Net Gain (Loss) | 1,417,350 | 5,301,721 |
Change in Unrealized Appreciation (Depreciation) | (18,674,595) | 2,161,487 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (15,925,041) | 8,162,327 |
Distributions | ||
Total Distributions | (6,285,063) | (1,093,220) |
Capital Share Transactions | ||
Issued | 9,880,784 | 6,946,551 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2035 Fund—Note G | 47,857,993 | — |
Issued in Lieu of Cash Distributions | 6,115,959 | 1,072,459 |
Redeemed | (9,216,559) | (17,862,848) |
Net Increase (Decrease) from Capital Share Transactions | 54,638,177 | (9,843,838) |
Total Increase (Decrease) | 32,428,073 | (2,774,731) |
Net Assets | ||
Beginning of Period | 37,821,879 | 40,596,610 |
End of Period | 70,249,952 | 37,821,879 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $27.25 | $23.16 | $21.60 | $21.46 | $20.20 |
Investment Operations | |||||
Net Investment Income1 | .455 | .430 | .470 | .500 | .459 |
Capital Gain Distributions Received1 | .014 | .046 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (4.566) | 4.244 | 1.614 | .146 | 1.243 |
Total from Investment Operations | (4.097) | 4.720 | 2.084 | .646 | 1.703 |
Distributions | |||||
Dividends from Net Investment Income | (.559) | (.409) | (.524) | (.464) | (.410) |
Distributions from Realized Capital Gains | (4.094) | (.221) | — | (.042) | (.033) |
Total Distributions | (4.653) | (.630) | (.524) | (.506) | (.443) |
Net Asset Value, End of Period | $18.50 | $27.25 | $23.16 | $21.60 | $21.46 |
Total Return2 | -18.87% | 20.60% | 9.71% | 3.37% | 8.51% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $70,250 | $37,822 | $40,597 | $37,126 | $34,522 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.14% | 0.14% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.08% | 1.64% | 2.15% | 2.42% | 2.19% |
Portfolio Turnover Rate | 9%4 | 6% | 18% | 7% | 8% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2035 Fund on February 11, 2022, the AFFE was 0.14% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 692,087 |
Total Distributable Earnings (Loss) | (692,087) |
Amount ($000) | |
Undistributed Ordinary Income | 966,636 |
Undistributed Long-Term Gains | 457,642 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (80,556) |
Net Unrealized Gains (Losses) | 7,652,554 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 772,223 | 824,643 |
Long-Term Capital Gains | 5,512,840 | 268,577 |
Total | 6,285,063 | 1,093,220 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 62,585,375 |
Gross Unrealized Appreciation | 13,662,290 |
Gross Unrealized Depreciation | (6,009,736) |
Net Unrealized Appreciation (Depreciation) | 7,652,554 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 448,756 | 266,598 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2035 Fund—Note G | 2,113,869 | — | ||
Issued in Lieu of Cash Distributions | 256,327 | 42,592 | ||
Redeemed | (408,647) | (674,526) | ||
Net Increase (Decrease) in Shares Outstanding | 2,410,305 | (365,336) |
Amount ($000) | |
Net Investment Income | 1,730,538 |
Realized Net Gain (Loss) | 2,051,511 |
Change in Unrealized Appreciation (Depreciation) | (20,005,351) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (16,223,302) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 481,838 | NA2 | NA2 | (148) | (40) | 7,352 | 8 | 947,200 |
Vanguard Total Bond Market II Index Fund | 6,917,620 | 10,872,082 | 1,067,121 | (43,498) | (2,560,484) | 251,983 | 20,847 | 14,118,599 |
Vanguard Total International Bond Index Fund | 2,973,117 | 88,066 | 2,939,753 | 42,285 | (163,715) | 68,885 | 19,182 | — |
Vanguard Total International Bond II Index Fund | 98,499 | 7,405,354 | 371,804 | (26,659) | (948,248) | 36,654 | — | 6,157,142 |
Vanguard Total International Stock Index Fund | 11,063,975 | 13,864,893 | 604,772 | 127,469 | (4,893,888) | 542,339 | — | 19,557,677 |
Vanguard Total Stock Market Index Fund | 16,292,315 | 13,419,388 | 2,157,672 | 1,369,239 | 534,041 | 424,991 | — | 29,457,311 |
Total | 37,827,364 | 45,649,7833 | 7,141,122 | 1,468,688 | (8,032,334)3 | 1,332,204 | 40,037 | 70,237,929 |
1 | Includes $1,321,370,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $37,134,712,000 and unrealized appreciation of $10,559,260,000 related to the acquisition of the Vanguard Institutional Target Retirement 2035 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2040 Fund | -19.42% | 4.11% | 7.40% | $20,426 | |
Target 2040 Composite Index | -19.01 | 4.55 | 7.75 | 21,090 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 47.1% |
Vanguard Total International Stock Index Fund Investor Shares | 31.3 |
Vanguard Total Bond Market II Index Fund Investor Shares | 15.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 6.5 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (46.4%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 171,213,096 | 28,037,857 | ||||
International Stock Fund (30.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,266,838,913 | 18,622,532 | ||||
U.S. Bond Fund (14.9%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 969,492,149 | 8,996,887 | |||
International Bond Fund (6.4%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 151,802,373 | 3,880,069 | |||
Total Investment Companies (Cost $52,993,239) | 59,537,345 | |||||
Temporary Cash Investments (1.4%) | ||||||
Money Market Fund (1.4%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $814,475) | 8,146,977 | 814,453 | |||
Total Investments (100.0%) (Cost $53,807,714) | 60,351,798 | |||||
Other Assets and Liabilities—Net (0.0%) | 11,527 | |||||
Net Assets (100%) | 60,363,325 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 3,420 | 383,254 | (18,617) |
E-mini S&P 500 Index | December 2022 | 2,475 | 445,685 | (61,875) |
(80,492) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $53,807,714) | 60,351,798 |
Cash Collateral Pledged—Futures Contracts | 30,915 |
Receivables for Investment Securities Sold | 65,000 |
Receivables for Accrued Income | 24,021 |
Receivables for Capital Shares Issued | 87,615 |
Total Assets | 60,559,349 |
Liabilities | |
Payables for Investment Securities Purchased | 150,874 |
Payables for Capital Shares Redeemed | 37,286 |
Variation Margin Payable—Futures Contracts | 7,864 |
Total Liabilities | 196,024 |
Net Assets | 60,363,325 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 52,780,112 |
Total Distributable Earnings (Loss) | 7,583,213 |
Net Assets | 60,363,325 |
Net Assets | |
Applicable to 1,871,637,166 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 60,363,325 |
Net Asset Value Per Share | $32.25 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,122,991 |
Net Investment Income—Note B | 1,122,991 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 23,578 |
Affiliated Funds Sold1 | 1,319,054 |
Futures Contracts | (76,814) |
Realized Net Gain (Loss) | 1,265,818 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (16,535,167) |
Futures Contracts | (72,271) |
Change in Unrealized Appreciation (Depreciation) | (16,607,438) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (14,218,629) |
1 | Includes $622,935,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,122,991 | 560,421 |
Realized Net Gain (Loss) | 1,265,818 | 4,288,893 |
Change in Unrealized Appreciation (Depreciation) | (16,607,438) | 2,372,175 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (14,218,629) | 7,221,489 |
Distributions | ||
Total Distributions | (5,068,358) | (727,664) |
Capital Share Transactions | ||
Issued | 9,029,706 | 5,959,146 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2040 Fund—Note G | 44,528,150 | — |
Issued in Lieu of Cash Distributions | 4,930,722 | 714,460 |
Redeemed | (7,921,967) | (16,488,112) |
Net Increase (Decrease) from Capital Share Transactions | 50,566,611 | (9,814,506) |
Total Increase (Decrease) | 31,279,624 | (3,320,681) |
Net Assets | ||
Beginning of Period | 29,083,701 | 32,404,382 |
End of Period | 60,363,325 | 29,083,701 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $48.29 | $40.07 | $37.27 | $37.26 | $34.73 |
Investment Operations | |||||
Net Investment Income1 | .797 | .764 | .799 | .850 | .786 |
Capital Gain Distributions Received1 | .017 | .057 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (8.162) | 8.312 | 2.892 | (.005) | 2.441 |
Total from Investment Operations | (7.348) | 9.133 | 3.691 | .845 | 3.228 |
Distributions | |||||
Dividends from Net Investment Income | (1.003) | (.719) | (.891) | (.779) | (.684) |
Distributions from Realized Capital Gains | (7.689) | (.194) | — | (.056) | (.014) |
Total Distributions | (8.692) | (.913) | (.891) | (.835) | (.698) |
Net Asset Value, End of Period | $32.25 | $48.29 | $40.07 | $37.27 | $37.26 |
Total Return2 | -19.42% | 23.00% | 9.96% | 2.63% | 9.37% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $60,363 | $29,084 | $32,404 | $29,043 | $26,445 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.14% | 0.14% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.08% | 1.66% | 2.12% | 2.38% | 2.17% |
Portfolio Turnover Rate | 7%4 | 5% | 13% | 5% | 8% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2040 Fund on February 11, 2022, the AFFE was 0.14% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 721,253 |
Total Distributable Earnings (Loss) | (721,253) |
Amount ($000) | |
Undistributed Ordinary Income | 840,170 |
Undistributed Long-Term Gains | 320,362 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (73,815) |
Net Unrealized Gains (Losses) | 6,496,496 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 662,780 | 622,960 |
Long-Term Capital Gains | 4,405,578 | 104,704 |
Total | 5,068,358 | 727,664 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 53,855,302 |
Gross Unrealized Appreciation | 11,659,153 |
Gross Unrealized Depreciation | (5,162,657) |
Net Unrealized Appreciation (Depreciation) | 6,496,496 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 233,751 | 129,901 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2040 Fund—Note G | 1,117,955 | — | ||
Issued in Lieu of Cash Distributions | 117,203 | 16,168 | ||
Redeemed | (199,582) | (352,464) | ||
Net Increase (Decrease) in Shares Outstanding | 1,269,327 | (206,395) |
Amount ($000) | |
Net Investment Income | 1,502,801 |
Realized Net Gain (Loss) | 1,922,334 |
Change in Unrealized Appreciation (Depreciation) | (17,787,512) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (14,362,377) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 377,033 | NA2 | NA2 | (123) | (37) | 6,511 | 6 | 814,453 |
Vanguard Total Bond Market II Index Fund | 3,750,603 | 7,425,093 | 542,497 | (25,711) | (1,610,601) | 155,786 | 12,425 | 8,996,887 |
Vanguard Total International Bond Index Fund | 1,727,758 | 51,177 | 1,708,369 | 5,831 | (76,397) | 40,031 | 11,147 | — |
Vanguard Total International Bond II Index Fund | 11,835 | 4,774,566 | 288,429 | (21,343) | (596,560) | 22,797 | — | 3,880,069 |
Vanguard Total International Stock Index Fund | 9,386,478 | 14,378,628 | 617,679 | 125,405 | (4,650,300) | 500,118 | — | 18,622,532 |
Vanguard Total Stock Market Index Fund | 13,835,372 | 14,183,107 | 1,903,144 | 1,234,995 | 687,527 | 397,748 | — | 28,037,857 |
Total | 29,089,079 | 40,812,5713 | 5,060,118 | 1,319,054 | (6,246,368)3 | 1,122,991 | 23,578 | 60,351,798 |
1 | Includes $1,305,250,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $34,102,998,000 and unrealized appreciation of $10,288,799,000 related to the acquisition of the Vanguard Institutional Target Retirement 2040 Fund. See Note G. |
Philadelphia, Pennsylvania
November 17, 2022
Fund | Percentage |
Target Retirement Income Fund | 8.6% |
Target Retirement 2020 Fund | 14.6 |
Target Retirement 2025 Fund | 21.0 |
Target Retirement 2030 Fund | 26.0 |
Target Retirement 2035 Fund | 28.6 |
Target Retirement 2040 Fund | 31.7 |
Fund | ($000) |
Target Retirement Income Fund | 121,791 |
Target Retirement 2020 Fund | 164,958 |
Target Retirement 2025 Fund | 329,449 |
Target Retirement 2030 Fund | 338,651 |
Target Retirement 2035 Fund | 422,592 |
Target Retirement 2040 Fund | 361,952 |
Fund | ($000) |
Target Retirement Income Fund | 317,176 |
Target Retirement 2020 Fund | 315,821 |
Target Retirement 2025 Fund | 234,128 |
Target Retirement 2030 Fund | 108,851 |
Target Retirement 2035 Fund | 84,627 |
Target Retirement 2040 Fund | 53,020 |
Fund | ($000) |
Target Retirement Income Fund | 955,970 |
Target Retirement 2020 Fund | 3,636,035 |
Target Retirement 2025 Fund | 5,070,742 |
Target Retirement 2030 Fund | 4,924,904 |
Target Retirement 2035 Fund | 5,545,415 |
Target Retirement 2040 Fund | 4,431,407 |
Fund | Percentage |
Vanguard Target Retirement Income Fund | 87.5% |
Vanguard Target Retirement 2020 Fund | 100.0 |
Vanguard Target Retirement 2025 Fund | 80.9 |
Vanguard Target Retirement 2030 Fund | 64.3 |
Vanguard Target Retirement 2035 Fund | 44.1 |
Vanguard Target Retirement 2040 Fund | 31.3 |
Fund | Foreign Source Income ($000) | Foreign Taxes Paid ($000) |
Target Retirement Income Fund | 114,032 | 5,703 |
Target Retirement 2020 Fund | 236,773 | 12,910 |
Target Retirement 2025 Fund | 482,546 | 27,222 |
Target Retirement 2030 Fund | 524,675 | 30,382 |
Target Retirement 2035 Fund | 561,655 | 33,153 |
Target Retirement 2040 Fund | 504,130 | 30,277 |
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Vanguard Target Retirement 2045 Fund |
Vanguard Target Retirement 2050 Fund |
Vanguard Target Retirement 2055 Fund |
Vanguard Target Retirement 2060 Fund |
Vanguard Target Retirement 2065 Fund |
Vanguard Target Retirement 2070 Fund |
1 | |
2 | |
4 | |
17 | |
30 | |
43 | |
56 | |
69 | |
84 |
• | The 12 months ended September 30, 2022, were a challenging period for financial markets. Early on, pent-up demand helped spur global growth and push unemployment rates down. The economic backdrop deteriorated, however, as inflation soared, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, prompting aggressive tightening by the Federal Reserve and increased fears of a recession. |
• | Returns for the six Vanguard Target Retirement Funds covered in this report ranged from –20.18% for the 2050 Fund to –7.50% for the 2070 Fund’s first three months of operation. (The funds with target dates of 2020 through 2040, as well as the Income Fund, are covered in a separate report.) |
• | Vanguard Target Retirement Funds are designed to reach an allocation of 70% bonds and 30% stocks within seven years after their target dates. The funds invest all of their assets in Vanguard index funds that seek to match the performance of broad stock and bond market indexes. |
• | For the 10 years ended September 30—or since inception for the 2065 Fund—the funds’ average annual returns ranged from 4.95% for the 2065 Fund to 7.58% for the 2060 Fund. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | -17.22% | 7.95% | 9.00% |
Russell 2000 Index (Small-caps) | -23.50 | 4.29 | 3.55 |
Russell 3000 Index (Broad U.S. market) | -17.63 | 7.70 | 8.62 |
FTSE All-World ex US Index (International) | -24.76 | -0.95 | -0.38 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | -14.61% | -3.22% | -0.23% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | -11.50 | -1.85 | 0.59 |
FTSE Three-Month U.S. Treasury Bill Index | 0.63 | 0.57 | 1.12 |
CPI | |||
Consumer Price Index | 8.20% | 4.95% | 3.76% |
• | 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 September 30, 2022 | |||
Beginning Account Value 3/31/2022 | Ending Account Value 9/30/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Target Retirement 2045 Fund1 | $1,000.00 | $804.60 | $0.36 |
Target Retirement 2050 Fund1 | $1,000.00 | $800.90 | $0.36 |
Target Retirement 2055 Fund1 | $1,000.00 | $801.20 | $0.36 |
Target Retirement 2060 Fund1 | $1,000.00 | $801.10 | $0.36 |
Target Retirement 2065 Fund1 | $1,000.00 | $801.30 | $0.36 |
Target Retirement 2070 Fund2 | $1,000.00 | $925.00 | $0.20 |
Based on Hypothetical 5% Yearly Return | |||
Target Retirement 2045 Fund1 | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2050 Fund1 | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2055 Fund1 | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2060 Fund1 | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2065 Fund1 | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2070 Fund2 | $1,000.00 | $1,012.67 | $0.21 |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2045 Fund | -19.93% | 4.42% | 7.61% | $20,830 | |
Target 2045 Composite Index | -19.55 | 4.85 | 7.96 | 21,508 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 51.7% |
Vanguard Total International Stock Index Fund Investor Shares | 34.4 |
Vanguard Total Bond Market II Index Fund Investor Shares | 9.6 |
Vanguard Total International Bond II Index Fund Institutional Shares | 4.3 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (51.0%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 174,192,478 | 28,525,761 | ||||
International Stock Fund (34.0%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,291,786,105 | 18,989,256 | ||||
U.S. Bond Fund (9.4%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 569,296,715 | 5,283,074 | |||
International Bond Fund (4.2%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 92,250,606 | 2,357,925 | |||
Total Investment Companies (Cost $47,754,919) | 55,156,016 | |||||
Temporary Cash Investments (1.4%) | ||||||
Money Market Fund (1.4%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $760,305) | 7,605,226 | 760,294 | |||
Total Investments (100.0%) (Cost $48,515,224) | 55,916,310 | |||||
Other Assets and Liabilities—Net (0.0%) | 5,008 | |||||
Net Assets (100%) | 55,921,318 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 3,249 | 364,091 | (17,698) |
E-mini S&P 500 Index | December 2022 | 2,284 | 411,291 | (57,099) |
(74,797) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $48,515,224) | 55,916,310 |
Cash Collateral Pledged—Futures Contracts | 28,690 |
Receivables for Accrued Income | 14,739 |
Receivables for Capital Shares Issued | 92,837 |
Total Assets | 56,052,576 |
Liabilities | |
Payables for Investment Securities Purchased | 85,467 |
Payables for Capital Shares Redeemed | 38,498 |
Variation Margin Payable—Futures Contracts | 7,293 |
Total Liabilities | 131,258 |
Net Assets | 55,921,318 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 47,473,782 |
Total Distributable Earnings (Loss) | 8,447,536 |
Net Assets | 55,921,318 |
Net Assets | |
Applicable to 2,596,302,879 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 55,921,318 |
Net Asset Value Per Share | $21.54 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,059,647 |
Net Investment Income—Note B | 1,059,647 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 13,579 |
Affiliated Funds Sold1 | 1,256,317 |
Futures Contracts | (75,177) |
Realized Net Gain (Loss) | 1,194,719 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (15,841,879) |
Futures Contracts | (66,703) |
Change in Unrealized Appreciation (Depreciation) | (15,908,582) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (13,654,216) |
1 | Includes $556,241,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,059,647 | 545,625 |
Realized Net Gain (Loss) | 1,194,719 | 3,178,010 |
Change in Unrealized Appreciation (Depreciation) | (15,908,582) | 3,760,162 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (13,654,216) | 7,483,797 |
Distributions | ||
Total Distributions | (3,956,957) | (634,587) |
Capital Share Transactions | ||
Issued | 8,673,949 | 5,370,565 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2045 Fund—Note G | 38,974,576 | — |
Issued in Lieu of Cash Distributions | 3,853,831 | 623,462 |
Redeemed | (6,887,917) | (14,130,579) |
Net Increase (Decrease) from Capital Share Transactions | 44,614,439 | (8,136,552) |
Total Increase (Decrease) | 27,003,266 | (1,287,342) |
Net Assets | ||
Beginning of Period | 28,918,052 | 30,205,394 |
End of Period | 55,921,318 | 28,918,052 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $31.04 | $25.22 | $23.38 | $23.49 | $21.80 |
Investment Operations | |||||
Net Investment Income1 | .536 | .495 | .492 | .527 | .492 |
Capital Gain Distributions Received1 | .007 | .020 | — | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | (5.672) | 5.840 | 1.900 | (.128) | 1.636 |
Total from Investment Operations | (5.129) | 6.355 | 2.392 | .399 | 2.128 |
Distributions | |||||
Dividends from Net Investment Income | (.629) | (.452) | (.552) | (.483) | (.428) |
Distributions from Realized Capital Gains | (3.742) | (.083) | — | (.026) | (.010) |
Total Distributions | (4.371) | (.535) | (.552) | (.509) | (.438) |
Net Asset Value, End of Period | $21.54 | $31.04 | $25.22 | $23.38 | $23.49 |
Total Return2 | -19.93% | 25.42% | 10.27% | 2.06% | 9.85% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $55,921 | $28,918 | $30,205 | $26,670 | $24,330 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.15% | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.09% | 1.68% | 2.08% | 2.35% | 2.16% |
Portfolio Turnover Rate | 5%4 | 4% | 9% | 4% | 7% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2045 Fund on February 11, 2022, the AFFE was 0.15% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 647,485 |
Total Distributable Earnings (Loss) | (647,485) |
Amount ($000) | |
Undistributed Ordinary Income | 789,183 |
Undistributed Long-Term Gains | 367,839 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (64,908) |
Net Unrealized Gains (Losses) | 7,355,422 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 650,046 | 589,606 |
Long-Term Capital Gains | 3,306,911 | 44,981 |
Total | 3,956,957 | 634,587 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 48,560,888 |
Gross Unrealized Appreciation | 11,886,286 |
Gross Unrealized Depreciation | (4,530,864) |
Net Unrealized Appreciation (Depreciation) | 7,355,422 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 336,528 | 182,983 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2045 Fund—Note G | 1,452,108 | — | ||
Issued in Lieu of Cash Distributions | 135,603 | 22,156 | ||
Redeemed | (259,692) | (471,180) | ||
Net Increase (Decrease) in Shares Outstanding | 1,664,547 | (266,041) |
Amount ($000) | |
Net Investment Income | 1,399,938 |
Realized Net Gain (Loss) | 1,710,786 |
Change in Unrealized Appreciation (Depreciation) | (16,795,813) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (13,685,089) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 379,111 | NA2 | NA2 | (141) | (25) | 6,156 | 7 | 760,294 |
Vanguard Total Bond Market II Index Fund | 2,281,018 | 4,322,165 | 372,029 | (16,325) | (931,755) | 91,027 | 7,258 | 5,283,074 |
Vanguard Total International Bond Index Fund | 978,617 | 28,988 | 967,635 | 9,589 | (49,559) | 22,674 | 6,314 | — |
Vanguard Total International Bond II Index Fund | 4,357 | 2,791,715 | 79,535 | (4,010) | (354,602) | 13,432 | — | 2,357,925 |
Vanguard Total International Stock Index Fund | 10,214,133 | 14,211,929 | 555,306 | 108,484 | (4,989,984) | 517,975 | — | 18,989,256 |
Vanguard Total Stock Market Index Fund | 15,071,266 | 13,981,804 | 1,716,205 | 1,158,720 | 30,176 | 408,383 | — | 28,525,761 |
Total | 28,928,502 | 35,336,6013 | 3,690,710 | 1,256,317 | (6,295,749)3 | 1,059,647 | 13,579 | 55,916,310 |
1 | Includes $1,064,340,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $29,308,528,000 and unrealized appreciation of $9,546,130,000 related to the acquisition of the Vanguard Institutional Target Retirement 2045 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2050 Fund | -20.18% | 4.39% | 7.60% | $20,808 | |
Target 2050 Composite Index | -19.81 | 4.84 | 7.95 | 21,495 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.5% |
Vanguard Total International Stock Index Fund Investor Shares | 36.1 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 3.3 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.7%) | ||||||
U.S. Stock Fund (52.8%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 144,230,071 | 23,619,117 | ||||
International Stock Fund (35.6%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,083,182,060 | 15,922,776 | ||||
U.S. Bond Fund (7.1%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 339,150,538 | 3,147,317 | |||
International Bond Fund (3.2%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 56,232,590 | 1,437,305 | |||
Total Investment Companies (Cost $39,915,067) | 44,126,515 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $595,958) | 5,961,489 | 595,970 | |||
Total Investments (100.0%) (Cost $40,511,025) | 44,722,485 | |||||
Other Assets and Liabilities—Net (0.0%) | 13,746 | |||||
Net Assets (100%) | 44,736,231 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 2,461 | 275,786 | (13,405) |
E-mini S&P 500 Index | December 2022 | 1,832 | 329,897 | (45,801) |
(59,206) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $40,511,025) | 44,722,485 |
Cash Collateral Pledged—Futures Contracts | 22,753 |
Receivables for Accrued Income | 9,112 |
Receivables for Capital Shares Issued | 96,804 |
Total Assets | 44,851,154 |
Liabilities | |
Payables for Investment Securities Purchased | 79,905 |
Payables for Capital Shares Redeemed | 29,225 |
Variation Margin Payable—Futures Contracts | 5,793 |
Total Liabilities | 114,923 |
Net Assets | 44,736,231 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 39,846,567 |
Total Distributable Earnings (Loss) | 4,889,664 |
Net Assets | 44,736,231 |
Net Assets | |
Applicable to 1,262,165,540 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 44,736,231 |
Net Asset Value Per Share | $35.44 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 834,943 |
Net Investment Income—Note B | 834,943 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 8,607 |
Affiliated Funds Sold1 | 786,053 |
Futures Contracts | (63,553) |
Realized Net Gain (Loss) | 731,107 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (12,545,704) |
Futures Contracts | (53,071) |
Change in Unrealized Appreciation (Depreciation) | (12,598,775) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,032,725) |
1 | Includes $452,021,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 834,943 | 414,923 |
Realized Net Gain (Loss) | 731,107 | 1,954,618 |
Change in Unrealized Appreciation (Depreciation) | (12,598,775) | 3,387,709 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,032,725) | 5,757,250 |
Distributions | ||
Total Distributions | (2,514,988) | (470,654) |
Capital Share Transactions | ||
Issued | 8,252,573 | 4,982,608 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2050 Fund—Note G | 31,731,807 | — |
Issued in Lieu of Cash Distributions | 2,439,402 | 460,885 |
Redeemed | (5,723,074) | (12,125,498) |
Net Increase (Decrease) from Capital Share Transactions | 36,700,708 | (6,682,005) |
Total Increase (Decrease) | 23,152,995 | (1,395,409) |
Net Assets | ||
Beginning of Period | 21,583,236 | 22,978,645 |
End of Period | 44,736,231 | 21,583,236 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $50.09 | $40.60 | $37.63 | $37.80 | $35.07 |
Investment Operations | |||||
Net Investment Income1 | .884 | .798 | .793 | .851 | .794 |
Capital Gain Distributions Received1 | .009 | .031 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (9.524) | 9.498 | 3.053 | (.204) | 2.629 |
Total from Investment Operations | (8.631) | 10.327 | 3.846 | .647 | 3.424 |
Distributions | |||||
Dividends from Net Investment Income | (1.026) | (.741) | (.876) | (.789) | (.684) |
Distributions from Realized Capital Gains | (4.993) | (.096) | — | (.028) | (.010) |
Total Distributions | (6.019) | (.837) | (.876) | (.817) | (.694) |
Net Asset Value, End of Period | $35.44 | $50.09 | $40.60 | $37.63 | $37.80 |
Total Return2 | -20.18% | 25.65% | 10.26% | 2.07% | 9.84% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $44,736 | $21,583 | $22,979 | $19,470 | $16,804 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.15% | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.10% | 1.68% | 2.08% | 2.36% | 2.16% |
Portfolio Turnover Rate | 4%4 | 4% | 9% | 3% | 7% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2050 Fund on February 11, 2022, the AFFE was 0.15% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 511,182 |
Total Distributable Earnings (Loss) | (511,182) |
Amount ($000) | |
Undistributed Ordinary Income | 635,174 |
Undistributed Long-Term Gains | 121,329 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (50,349) |
Net Unrealized Gains (Losses) | 4,183,510 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 495,805 | 460,306 |
Long-Term Capital Gains | 2,019,183 | 10,348 |
Total | 2,514,988 | 470,654 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 40,538,975 |
Gross Unrealized Appreciation | 8,177,492 |
Gross Unrealized Depreciation | (3,993,982) |
Net Unrealized Appreciation (Depreciation) | 4,183,510 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 194,700 | 105,418 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2050 Fund—Note G | 715,647 | — | ||
Issued in Lieu of Cash Distributions | 51,935 | 10,161 | ||
Redeemed | (131,023) | (250,603) | ||
Net Increase (Decrease) in Shares Outstanding | 831,259 | (135,024) |
Amount ($000) | |
Net Investment Income | 1,116,976 |
Realized Net Gain (Loss) | 1,178,205 |
Change in Unrealized Appreciation (Depreciation) | (13,326,919) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (11,031,738) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 276,963 | NA2 | NA2 | (111) | (11) | 4,753 | 5 | 595,970 |
Vanguard Total Bond Market II Index Fund | 1,352,429 | 2,632,847 | 271,767 | (12,881) | (553,311) | 55,211 | 4,449 | 3,147,317 |
Vanguard Total International Bond Index Fund | 643,715 | 19,067 | 636,497 | 7,370 | (33,655) | 14,914 | 4,153 | — |
Vanguard Total International Bond II Index Fund | 17,593 | 1,723,360 | 80,910 | (2,327) | (220,411) | 8,381 | — | 1,437,305 |
Vanguard Total International Stock Index Fund | 7,790,535 | 12,702,743 | 380,291 | 89,186 | (4,279,397) | 419,218 | — | 15,922,776 |
Vanguard Total Stock Market Index Fund | 11,498,459 | 12,864,729 | 1,195,757 | 704,816 | (253,130) | 332,466 | — | 23,619,117 |
Total | 21,579,694 | 29,942,7463 | 2,565,222 | 786,053 | (5,339,915)3 | 834,943 | 8,607 | 44,722,485 |
1 | Includes $844,100,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $24,422,950,000 and unrealized appreciation of $7,205,789,000 related to the acquisition of the Vanguard Institutional Target Retirement 2050 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2055 Fund | -20.17% | 4.38% | 7.58% | $20,769 | |
Target 2055 Composite Index | -19.81 | 4.84 | 7.95 | 21,495 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.5% |
Vanguard Total International Stock Index Fund Investor Shares | 36.2 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 3.2 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (52.8%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 88,850,014 | 14,550,078 | ||||
International Stock Fund (35.7%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 669,037,785 | 9,834,856 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 208,186,538 | 1,931,971 | |||
International Bond Fund (3.1%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 34,130,761 | 872,382 | |||
Total Investment Companies (Cost $26,496,907) | 27,189,287 | |||||
Temporary Cash Investments (1.4%) | ||||||
Money Market Fund (1.4%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $374,435) | 3,745,664 | 374,454 | |||
Total Investments (100.0%) (Cost $26,871,342) | 27,563,741 | |||||
Other Assets and Liabilities—Net (0.0%) | 6,293 | |||||
Net Assets (100%) | 27,570,034 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 1,603 | 179,636 | (8,732) |
E-mini S&P 500 Index | December 2022 | 1,115 | 200,784 | (27,875) |
(36,607) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $26,871,342) | 27,563,741 |
Cash Collateral Pledged—Futures Contracts | 14,039 |
Receivables for Accrued Income | 5,603 |
Receivables for Capital Shares Issued | 68,685 |
Total Assets | 27,652,068 |
Liabilities | |
Payables for Investment Securities Purchased | 57,262 |
Payables for Capital Shares Redeemed | 21,205 |
Variation Margin Payable—Futures Contracts | 3,567 |
Total Liabilities | 82,034 |
Net Assets | 27,570,034 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 26,510,886 |
Total Distributable Earnings (Loss) | 1,059,148 |
Net Assets | 27,570,034 |
Net Assets | |
Applicable to 698,670,495 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 27,570,034 |
Net Asset Value Per Share | $39.46 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 502,651 |
Net Investment Income—Note B | 502,651 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 4,933 |
Affiliated Funds Sold1 | 366,378 |
Futures Contracts | (35,127) |
Realized Net Gain (Loss) | 336,184 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (7,517,932) |
Futures Contracts | (33,090) |
Change in Unrealized Appreciation (Depreciation) | (7,551,022) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,712,187) |
1 | Includes $249,187,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 502,651 | 237,123 |
Realized Net Gain (Loss) | 336,184 | 883,852 |
Change in Unrealized Appreciation (Depreciation) | (7,551,022) | 2,135,918 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,712,187) | 3,256,893 |
Distributions | ||
Total Distributions | (1,181,452) | (263,084) |
Capital Share Transactions | ||
Issued | 6,339,068 | 3,618,989 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2055 Fund—Note G | 19,001,359 | — |
Issued in Lieu of Cash Distributions | 1,145,310 | 258,127 |
Redeemed | (3,538,531) | (7,255,587) |
Net Increase (Decrease) from Capital Share Transactions | 22,947,206 | (3,378,471) |
Total Increase (Decrease) | 15,053,567 | (384,662) |
Net Assets | ||
Beginning of Period | 12,516,467 | 12,901,129 |
End of Period | 27,570,034 | 12,516,467 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $54.38 | $44.08 | $40.84 | $40.95 | $37.98 |
Investment Operations | |||||
Net Investment Income1 | .981 | .868 | .862 | .929 | .868 |
Capital Gain Distributions Received1 | .010 | .034 | — | — | .001 |
Net Realized and Unrealized Gain (Loss) on Investments | (10.672) | 10.295 | 3.307 | (.209) | 2.819 |
Total from Investment Operations | (9.681) | 11.197 | 4.169 | .720 | 3.688 |
Distributions | |||||
Dividends from Net Investment Income | (1.099) | (.791) | (.929) | (.830) | (.718) |
Distributions from Realized Capital Gains | (4.140) | (.106) | — | — | — |
Total Distributions | (5.239) | (.897) | (.929) | (.830) | (.718) |
Net Asset Value, End of Period | $39.46 | $54.38 | $44.08 | $40.84 | $40.95 |
Total Return2 | -20.17% | 25.61% | 10.25% | 2.09% | 9.79% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $27,570 | $12,516 | $12,901 | $10,202 | $8,011 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.15% | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.10% | 1.68% | 2.09% | 2.37% | 2.18% |
Portfolio Turnover Rate | 4%4 | 6% | 8% | 3% | 5% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2055 Fund on February 11, 2022, the AFFE was 0.15% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 280,908 |
Total Distributable Earnings (Loss) | (280,908) |
Amount ($000) | |
Undistributed Ordinary Income | 388,016 |
Undistributed Long-Term Gains | 26,484 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (28,997) |
Net Unrealized Gains (Losses) | 673,645 |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 290,151 | 251,522 |
Long-Term Capital Gains | 891,301 | 11,562 |
Total | 1,181,452 | 263,084 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 26,890,096 |
Gross Unrealized Appreciation | 3,519,177 |
Gross Unrealized Depreciation | (2,845,532) |
Net Unrealized Appreciation (Depreciation) | 673,645 |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 135,178 | 70,481 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2055 Fund—Note G | 384,955 | — | ||
Issued in Lieu of Cash Distributions | 21,903 | 5,241 | ||
Redeemed | (73,546) | (138,217) | ||
Net Increase (Decrease) in Shares Outstanding | 468,490 | (62,495) |
Amount ($000) | |
Net Investment Income | 670,239 |
Realized Net Gain (Loss) | 570,245 |
Change in Unrealized Appreciation (Depreciation) | (7,969,368) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,728,884) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 161,357 | NA2 | NA2 | (74) | (2) | 2,939 | 3 | 374,454 |
Vanguard Total Bond Market II Index Fund | 799,183 | 1,616,279 | 135,489 | (6,508) | (341,494) | 33,405 | 2,707 | 1,931,971 |
Vanguard Total International Bond Index Fund | 344,485 | 10,203 | 340,619 | 27 | (14,096) | 7,981 | 2,223 | — |
Vanguard Total International Bond II Index Fund | 25,166 | 1,003,025 | 22,098 | (442) | (133,269) | 5,110 | — | 872,382 |
Vanguard Total International Stock Index Fund | 4,515,341 | 8,239,830 | 230,683 | 52,343 | (2,741,975) | 251,998 | — | 9,834,856 |
Vanguard Total Stock Market Index Fund | 6,673,388 | 8,757,710 | 628,176 | 321,032 | (573,876) | 201,218 | — | 14,550,078 |
Total | 12,518,920 | 19,627,0473 | 1,357,065 | 366,378 | (3,804,712)3 | 502,651 | 4,933 | 27,563,741 |
1 | Includes $536,590,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $15,255,042,000 and unrealized appreciation of $3,713,220,000 related to the acquisition of the Vanguard Institutional Target Retirement 2055 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2060 Fund | -20.16% | 4.38% | 7.58% | $20,761 | |
Target 2060 Composite Index | -19.81 | 4.84 | 7.95 | 21,495 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 11.45 | 29,566 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.4% |
Vanguard Total International Stock Index Fund Investor Shares | 36.3 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 3.2 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (52.7%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 44,010,670 | 7,207,187 | ||||
International Stock Fund (35.8%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 332,780,315 | 4,891,871 | ||||
U.S. Bond Fund (6.9%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 102,561,634 | 951,772 | |||
International Bond Fund (3.2%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 16,984,497 | 434,124 | |||
Total Investment Companies (Cost $13,738,696) | 13,484,954 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $180,765) | 1,808,272 | 180,773 | |||
Total Investments (99.9%) (Cost $13,919,461) | 13,665,727 | |||||
Other Assets and Liabilities—Net (0.1%) | 13,829 | |||||
Net Assets (100%) | 13,679,556 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 778 | 87,185 | (4,238) |
E-mini S&P 500 Index | December 2022 | 550 | 99,041 | (13,751) |
(17,989) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $13,919,461) | 13,665,727 |
Cash Collateral Pledged—Futures Contracts | 6,905 |
Receivables for Accrued Income | 2,758 |
Receivables for Capital Shares Issued | 43,918 |
Total Assets | 13,719,308 |
Liabilities | |
Payables for Investment Securities Purchased | 27,905 |
Payables for Capital Shares Redeemed | 10,092 |
Variation Margin Payable—Futures Contracts | 1,755 |
Total Liabilities | 39,752 |
Net Assets | 13,679,556 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 13,769,595 |
Total Distributable Earnings (Loss) | (90,039) |
Net Assets | 13,679,556 |
Net Assets | |
Applicable to 376,805,303 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,679,556 |
Net Asset Value Per Share | $36.30 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 249,498 |
Net Investment Income—Note B | 249,498 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 2,421 |
Affiliated Funds Sold1 | 150,263 |
Futures Contracts | (16,960) |
Realized Net Gain (Loss) | 135,724 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (3,643,434) |
Futures Contracts | (16,309) |
Change in Unrealized Appreciation (Depreciation) | (3,659,743) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,274,521) |
1 | Includes $130,404,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 249,498 | 118,277 |
Realized Net Gain (Loss) | 135,724 | 234,932 |
Change in Unrealized Appreciation (Depreciation) | (3,659,743) | 1,205,875 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,274,521) | 1,559,084 |
Distributions | ||
Total Distributions | (376,437) | (125,887) |
Capital Share Transactions | ||
Issued | 4,239,542 | 2,345,567 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2060 Fund—Note G | 7,948,750 | — |
Issued in Lieu of Cash Distributions | 363,769 | 122,717 |
Redeemed | (1,879,595) | (3,270,018) |
Net Increase (Decrease) from Capital Share Transactions | 10,672,466 | (801,734) |
Total Increase (Decrease) | 7,021,508 | 631,463 |
Net Assets | ||
Beginning of Period | 6,658,048 | 6,026,585 |
End of Period | 13,679,556 | 6,658,048 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $48.04 | $38.95 | $36.07 | $36.16 | $33.51 |
Investment Operations | |||||
Net Investment Income1 | .903 | .773 | .762 | .822 | .768 |
Capital Gain Distributions Received1 | .009 | .029 | — | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | (9.930) | 9.085 | 2.922 | (.192) | 2.495 |
Total from Investment Operations | (9.018) | 9.887 | 3.684 | .630 | 3.263 |
Distributions | |||||
Dividends from Net Investment Income | (.936) | (.684) | (.804) | (.717) | (.613) |
Distributions from Realized Capital Gains | (1.786) | (.113) | — | (.003) | — |
Total Distributions | (2.722) | (.797) | (.804) | (.720) | (.613) |
Net Asset Value, End of Period | $36.30 | $48.04 | $38.95 | $36.07 | $36.16 |
Total Return2 | -20.16% | 25.60% | 10.25% | 2.07% | 9.81% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $13,680 | $6,658 | $6,027 | $4,359 | $3,240 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%3 | 0.15% | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.10% | 1.69% | 2.09% | 2.37% | 2.19% |
Portfolio Turnover Rate | 3%4 | 8% | 6% | 2% | 3% |
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 | The Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2060 Fund on February 11, 2022, the AFFE was 0.15% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 135,740 |
Total Distributable Earnings (Loss) | (135,740) |
Amount ($000) | |
Undistributed Ordinary Income | 195,744 |
Undistributed Long-Term Gains | — |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (24,840) |
Net Unrealized Gains (Losses) | (260,943) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 175,370 | 119,030 |
Long-Term Capital Gains | 201,067 | 6,857 |
Total | 376,437 | 125,887 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 13,926,670 |
Gross Unrealized Appreciation | 1,335,018 |
Gross Unrealized Depreciation | (1,595,961) |
Net Unrealized Appreciation (Depreciation) | (260,943) |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 98,649 | 51,610 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2060 Fund—Note G | 175,083 | — | ||
Issued in Lieu of Cash Distributions | 7,561 | 2,820 | ||
Redeemed | (43,088) | (70,564) | ||
Net Increase (Decrease) in Shares Outstanding | 238,205 | (16,134) |
Amount ($000) | |
Net Investment Income | 320,615 |
Realized Net Gain (Loss) | 257,001 |
Change in Unrealized Appreciation (Depreciation) | (3,866,543) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,288,927) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 86,143 | NA2 | NA2 | (37) | (3) | 1,484 | 2 | 180,773 |
Vanguard Total Bond Market II Index Fund | 433,205 | 762,138 | 71,002 | (2,698) | (169,871) | 16,541 | 1,387 | 951,772 |
Vanguard Total International Bond Index Fund | 159,910 | 4,737 | 158,116 | (1,205) | (5,326) | 3,705 | 1,032 | — |
Vanguard Total International Bond II Index Fund | 26,582 | 481,299 | 9,159 | (209) | (64,389) | 2,542 | — | 434,124 |
Vanguard Total International Stock Index Fund | 2,398,266 | 4,027,850 | 115,802 | 27,772 | (1,446,215) | 126,045 | — | 4,891,871 |
Vanguard Total Stock Market Index Fund | 3,556,910 | 4,470,270 | 246,332 | 126,640 | (700,301) | 99,181 | — | 7,207,187 |
Total | 6,661,016 | 9,746,2943 | 600,411 | 150,263 | (2,386,105)3 | 249,498 | 2,421 | 13,665,727 |
1 | Includes $305,300,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $6,668,081,000 and unrealized appreciation of $1,257,329,000 related to the acquisition of the Vanguard Institutional Target Retirement 2060 Fund. See Note G. |
Average Annual Total Returns Periods Ended September 30, 2022 | |||||
One Year | Five Years | Since Inception (7/12/2017) | Final Value of a $10,000 Investment | ||
Target Retirement 2065 Fund | -20.10% | 4.36% | 4.95% | $12,869 | |
Target 2065 Composite Index | -19.81 | 4.84 | 5.39 | 13,153 | |
MSCI US Broad Market Index | -17.67 | 8.70 | 9.07 | 15,734 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.5% |
Vanguard Total International Stock Index Fund Investor Shares | 36.3 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.0 |
Vanguard Total International Bond II Index Fund Institutional Shares | 3.2 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.6%) | ||||||
U.S. Stock Fund (52.7%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 10,092,657 | 1,652,773 | ||||
International Stock Fund (35.8%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 76,208,148 | 1,120,260 | ||||
U.S. Bond Fund (6.9%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 23,354,831 | 216,733 | |||
International Bond Fund (3.2%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 3,886,161 | 99,330 | |||
Total Investment Companies (Cost $3,445,687) | 3,089,096 | |||||
Temporary Cash Investments (1.3%) | ||||||
Money Market Fund (1.3%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $40,905) | 409,207 | 40,909 | |||
Total Investments (99.9%) (Cost $3,486,592) | 3,130,005 | |||||
Other Assets and Liabilities—Net (0.1%) | 3,075 | |||||
Net Assets (100%) | 3,133,080 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
10-Year U.S. Treasury Note | December 2022 | 171 | 19,163 | (931) |
E-mini S&P 500 Index | December 2022 | 126 | 22,689 | (3,150) |
(4,081) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $3,486,592) | 3,130,005 |
Cash Collateral Pledged—Futures Contracts | 1,570 |
Receivables for Accrued Income | 625 |
Receivables for Capital Shares Issued | 13,669 |
Total Assets | 3,145,869 |
Liabilities | |
Payables for Investment Securities Purchased | 10,190 |
Payables for Capital Shares Redeemed | 2,200 |
Variation Margin Payable—Futures Contracts | 399 |
Total Liabilities | 12,789 |
Net Assets | 3,133,080 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 3,458,760 |
Total Distributable Earnings (Loss) | (325,680) |
Net Assets | 3,133,080 |
Net Assets | |
Applicable to 131,872,233 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 3,133,080 |
Net Asset Value Per Share | $23.76 |
Year Ended September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 55,399 |
Net Investment Income—Note B | 55,399 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 487 |
Affiliated Funds Sold1 | 20,690 |
Futures Contracts | (3,836) |
Realized Net Gain (Loss) | 17,341 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | (795,587) |
Futures Contracts | (3,583) |
Change in Unrealized Appreciation (Depreciation) | (799,170) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (726,430) |
1 | Includes $22,325,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2022 ($000) | 2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 55,399 | 21,055 |
Realized Net Gain (Loss) | 17,341 | 3,422 |
Change in Unrealized Appreciation (Depreciation) | (799,170) | 217,888 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (726,430) | 242,365 |
Distributions | ||
Total Distributions | (30,464) | (16,724) |
Capital Share Transactions | ||
Issued | 1,578,131 | 855,105 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2065 Fund—Note G | 1,399,373 | — |
Issued in Lieu of Cash Distributions | 28,723 | 16,018 |
Redeemed | (546,565) | (530,659) |
Net Increase (Decrease) from Capital Share Transactions | 2,459,662 | 340,464 |
Total Increase (Decrease) | 1,702,768 | 566,105 |
Net Assets | ||
Beginning of Period | 1,430,312 | 864,207 |
End of Period | 3,133,080 | 1,430,312 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $30.31 | $24.52 | $22.69 | $22.64 | $20.79 |
Investment Operations | |||||
Net Investment Income1 | .594 | .500 | .485 | .529 | .524 |
Capital Gain Distributions Received1 | .005 | .017 | — | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | (6.543) | 5.712 | 1.802 | (.116) | 1.496 |
Total from Investment Operations | (5.944) | 6.229 | 2.287 | .413 | 2.020 |
Distributions | |||||
Dividends from Net Investment Income | (.535) | (.400) | (.457) | (.363) | (.170) |
Distributions from Realized Capital Gains | (.071) | (.039) | — | .0002 | — |
Total Distributions | (.606) | (.439) | (.457) | (.363) | (.170) |
Net Asset Value, End of Period | $23.76 | $30.31 | $24.52 | $22.69 | $22.64 |
Total Return3 | -20.10% | 25.59% | 10.11% | 2.09% | 9.75% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $3,133 | $1,430 | $864 | $420 | $202 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.09%4 | 0.15% | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.13% | 1.72% | 2.11% | 2.42% | 2.37% |
Portfolio Turnover Rate | 2%5 | 5% | 6% | 2% | 1% |
1 | Calculated based on average shares outstanding. |
2 | Distribution was less than $.001 per share. |
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 Acquired Fund Fees and Expenses (AFFE) of 0.09% reflects the blended amount of expenses for the year ended September 30, 2022. Before the acquisition of Vanguard Institutional Target Retirement 2065 Fund on February 11, 2022, the AFFE was 0.15% on an annualized basis. Following the acquisition, the AFFE was 0.08% on an annualized basis. See Note G. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Amount ($000) | |
Paid-in Capital | 25,101 |
Total Distributable Earnings (Loss) | (25,101) |
Amount ($000) | |
Undistributed Ordinary Income | 43,211 |
Undistributed Long-Term Gains | — |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (8,585) |
Net Unrealized Gains (Losses) | (360,306) |
Year Ended September 30, | ||
2022 Amount ($000) | 2021 Amount ($000) | |
Ordinary Income* | 28,297 | 16,072 |
Long-Term Capital Gains | 2,167 | 652 |
Total | 30,464 | 16,724 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 3,490,311 |
Gross Unrealized Appreciation | 127,085 |
Gross Unrealized Depreciation | (487,391) |
Net Unrealized Appreciation (Depreciation) | (360,306) |
Year Ended September 30, | ||||
2022 Shares (000) | 2021 Shares (000) | |||
Issued | 56,194 | 29,600 | ||
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2065 Fund—Note G | 47,117 | — | ||
Issued in Lieu of Cash Distributions | 913 | 584 | ||
Redeemed | (19,535) | (18,250) | ||
Net Increase (Decrease) in Shares Outstanding | 84,689 | 11,934 |
Amount ($000) | |
Net Investment Income | 67,481 |
Realized Net Gain (Loss) | 28,137 |
Change in Unrealized Appreciation (Depreciation) | (830,057) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (734,439) |
Current Period Transactions | ||||||||
Sep. 30, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold1 ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | 20,579 | NA2 | NA2 | (13) | 4 | 333 | 1 | 40,909 |
Vanguard Total Bond Market II Index Fund | 98,064 | 173,377 | 17,065 | (728) | (36,915) | 3,618 | 307 | 216,733 |
Vanguard Total International Bond Index Fund | 27,697 | 820 | 27,386 | (966) | (165) | 642 | 179 | — |
Vanguard Total International Bond II Index Fund | 8,163 | 107,535 | 2,382 | (40) | (13,946) | 576 | — | 99,330 |
Vanguard Total International Stock Index Fund | 513,012 | 972,328 | 29,675 | 6,378 | (341,783) | 28,318 | — | 1,120,260 |
Vanguard Total Stock Market Index Fund | 761,415 | 1,175,236 | 44,110 | 16,059 | (255,827) | 21,912 | — | 1,652,773 |
Total | 1,428,930 | 2,429,2963 | 120,618 | 20,690 | (648,632)3 | 55,399 | 487 | 3,130,005 |
1 | Includes $79,400,000 of portfolio securities delivered as a result of in-kind redemptions of the fund’s capital shares. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
3 | Includes securities of $1,253,008,000 and unrealized appreciation of $146,955,000 related to the acquisition of the Vanguard Institutional Target Retirement 2065 Fund. See Note G. |
Total Returns Period Ended September 30, 2022 | |||
Since Inception (6/28/2022) | Final Value of a $10,000 Investment | ||
Target Retirement 2070 Fund | -7.50% | $9,250 | |
Target 2070 Composite Index | -7.51 | 9,249 | |
MSCI US Broad Market Index | -5.53 | 9,447 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.9% |
Vanguard Total International Stock Index Fund Investor Shares | 36.1 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.0 |
Vanguard Total International Bond II Index Fund Institutional Shares | 3.0 |
Shares | Market Value• ($000) | |||||
Investment Companies (100.0%) | ||||||
U.S. Stock Fund (53.9%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 104,990 | 17,193 | ||||
International Stock Fund (36.1%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 782,743 | 11,507 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 241,720 | 2,243 | |||
International Bond Fund (3.0%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 37,558 | 960 | |||
Total Investment Companies (Cost $34,814) | 31,903 | |||||
Temporary Cash Investments (0.0%) | ||||||
Money Market Fund (0.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 2.828% (Cost $—) | 1 | — | |||
Total Investments (100.0%) (Cost $34,814) | 31,903 | |||||
Other Assets and Liabilities—Net (0.0%) | — | |||||
Net Assets (100%) | 31,903 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $34,814) | 31,903 |
Receivables for Accrued Income | 6 |
Receivables for Capital Shares Issued | 542 |
Total Assets | 32,451 |
Liabilities | |
Due to Custodian | 2 |
Payables for Investment Securities Purchased | 523 |
Payables for Capital Shares Redeemed | 23 |
Total Liabilities | 548 |
Net Assets | 31,903 |
At September 30, 2022, net assets consisted of: | |
Paid-in Capital | 35,451 |
Total Distributable Earnings (Loss) | (3,548) |
Net Assets | 31,903 |
Net Assets | |
Applicable to 1,724,853 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 31,903 |
Net Asset Value Per Share | $18.50 |
June 28, 20221 to September 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 134 |
Net Investment Income—Note B | 134 |
Realized Net Gain (Loss) | |
Affiliated Funds Sold | (770) |
Futures Contracts | (1) |
Realized Net Gain (Loss) | (771) |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | (2,911) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,548) |
1 | Inception. |
June 28, 20221 to September 30, 2022 | |
($000) | |
Increase (Decrease) in Net Assets | |
Operations | |
Net Investment Income | 134 |
Realized Net Gain (Loss) | (771) |
Change in Unrealized Appreciation (Depreciation) | (2,911) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,548) |
Distributions | |
Total Distributions | — |
Capital Share Transactions | |
Issued | 50,855 |
Issued in Lieu of Cash Distributions | — |
Redeemed | (15,404) |
Net Increase (Decrease) from Capital Share Transactions | 35,451 |
Total Increase (Decrease) | 31,903 |
Net Assets | |
Beginning of Period | — |
End of Period | 31,903 |
1 | Inception. |
For a Share Outstanding Throughout Each Period | June 28, 20221 to September 30, 2022 |
Net Asset Value, Beginning of Period | $20.00 |
Investment Operations | |
Net Investment Income2 | .113 |
Capital Gain Distributions Received2 | — |
Net Realized and Unrealized Gain (Loss) on Investments | (1.613) |
Total from Investment Operations | (1.500) |
Distributions | |
Dividends from Net Investment Income | — |
Distributions from Realized Capital Gains | — |
Total Distributions | — |
Net Asset Value, End of Period | $18.50 |
Total Return3 | -7.50% |
Ratios/Supplemental Data | |
Net Assets, End of Period (Millions) | $32 |
Ratio of Total Expenses to Average Net Assets | — |
Acquired Fund Fees and Expenses | 0.08%4 |
Ratio of Net Investment Income to Average Net Assets | 2.15%4 |
Portfolio Turnover Rate | 44% |
1 | Inception. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Annualized. |
Amount ($000) | |
Undistributed Ordinary Income | 134 |
Undistributed Long-Term Gains | — |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | (3,682) |
Amount ($000) | |
Tax Cost | 35,585 |
Gross Unrealized Appreciation | 1 |
Gross Unrealized Depreciation | (3,683) |
Net Unrealized Appreciation (Depreciation) | (3,682) |
June 28, 20221 to September 30, | |
2022 | |
Shares (000) | |
Issued | 2,487 |
Issued in Lieu of Cash Distributions | — |
Redeemed | (762) |
Net Increase (Decrease) in Shares Outstanding | 1,725 |
1 | Inception. |
Current Period Transactions | ||||||||
Jun. 28, 20221 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) | Sep. 30, 2022 Market Value ($000) | |
Vanguard Market Liquidity Fund | — | NA2 | NA2 | — | — | — | — | — |
Vanguard Total Bond Market II Index Fund | — | 3,198 | 823 | (34) | (98) | 10 | — | 2,243 |
Vanguard Total International Bond II Index Fund | — | 1,368 | 361 | (15) | (32) | 2 | — | 960 |
Vanguard Total International Stock Index Fund | — | 16,933 | 3,847 | (280) | (1,299) | 55 | — | 11,507 |
Vanguard Total Stock Market Index Fund | — | 24,772 | 5,656 | (441) | (1,482) | 67 | — | 17,193 |
Total | — | 46,271 | 10,687 | (770) | (2,911) | 134 | — | 31,903 |
1 | Inception. |
2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Vanguard Target Retirement 2050 Fund (1)
Vanguard Target Retirement 2055 Fund (1)
Vanguard Target Retirement 2060 Fund (1)
Vanguard Target Retirement 2065 Fund (1)
Vanguard Target Retirement 2070 Fund (2)
(2) Statement of operations, statement of changes in net assets and financial highlights for the period June 28, 2022 (inception date) through September 30, 2022
Philadelphia, Pennsylvania
November 17, 2022
Fund | Percentage |
Target Retirement 2045 Fund | 34.4% |
Target Retirement 2050 Fund | 35.5 |
Target Retirement 2055 Fund | 35.7 |
Target Retirement 2060 Fund | 35.4 |
Target Retirement 2065 Fund | 35.2 |
Target Retirement 2070 Fund | 44.0 |
Fund | ($000) |
Target Retirement 2045 Fund | 388,738 |
Target Retirement 2050 Fund | 297,869 |
Target Retirement 2055 Fund | 172,371 |
Target Retirement 2060 Fund | 90,207 |
Target Retirement 2065 Fund | 18,656 |
Target Retirement 2070 Fund | — |
Fund | ($000) |
Target Retirement 2045 Fund | 31,821 |
Target Retirement 2050 Fund | 19,666 |
Target Retirement 2055 Fund | 11,921 |
Target Retirement 2060 Fund | 5,913 |
Target Retirement 2065 Fund | 1,296 |
Target Retirement 2070 Fund | 3 |
Fund | ($000) |
Target Retirement 2045 Fund | 3,330,689 |
Target Retirement 2050 Fund | 2,028,205 |
Target Retirement 2055 Fund | 893,757 |
Target Retirement 2060 Fund | 201,067 |
Target Retirement 2065 Fund | 2,167 |
Target Retirement 2070 Fund | — |
Fund | Percentage |
Vanguard Target Retirement 2045 Fund | 18.5% |
Vanguard Target Retirement 2050 Fund | 15.0 |
Vanguard Target Retirement 2055 Fund | 15.1 |
Vanguard Target Retirement 2060 Fund | 12.4 |
Vanguard Target Retirement 2065 Fund | 16.0 |
Vanguard Target Retirement 2070 Fund | — |
Fund | Foreign Source Income ($000) | Foreign Taxes Paid ($000) |
Target Retirement 2045 Fund | 510,430 | 31,104 |
Target Retirement 2050 Fund | 410,682 | 25,120 |
Target Retirement 2055 Fund | 246,545 | 15,093 |
Target Retirement 2060 Fund | 123,228 | 7,548 |
Target Retirement 2065 Fund | 27,621 | 1,695 |
Target Retirement 2070 Fund | 54 | 3 |
Matthew Benchener | Thomas M. Rampulla |
Joseph Brennan | Karin A. Risi |
Mortimer J. Buckley | Anne E. Robinson |
Gregory Davis | Michael Rollings |
John James | Nitin Tandon |
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Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert.
All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant.
Fiscal Year Ended September 30, 2022: $29,000
Fiscal Year Ended September 30, 2021: $32,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended September 30, 2022: $10,494,508
Fiscal Year Ended September 30, 2021: $11,244,694
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended September 30, 2022: $2,757,764
Fiscal Year Ended September 30, 2021: $2,955,181
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended September 30, 2022: $5,202,689
Fiscal Year Ended September 30, 2021: $2,047,574
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended September 30, 2022: $298,000
Fiscal Year Ended September 30, 2021: $280,000
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended September 30, 2022: $5,500,689
Fiscal Year Ended September 30, 2021: $2,327,574
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications field herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD CHESTER FUNDS |
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 21, 2022
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 CHESTER FUNDS |
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 21, 2022
VANGUARD CHESTER FUNDS |
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: November 21, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on October 11, 2022 (see File Number 333-11763), Incorporated by Reference.