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, 2022—September 30, 2023
Item 1: Reports to Shareholders
Your Fund’s Performance at a Glance | 1 |
Advisor's Report | 2 |
About Your Fund’s Expenses | 5 |
Performance Summary | 7 |
Financial Statements | 9 |
Trustees Approve Advisory Arrangement | 25 |
• | For the 12 months ended September 30, 2023, Vanguard PRIMECAP Fund returned 28.06% for Investor Shares and 28.14% for Admiral Shares. Its benchmark, the Standard & Poor’s 500 Index, returned 21.62%. |
• | Early on, inflation began to ease off multidecade highs amid aggressive interest rate hikes by the Federal Reserve. Unexpected resilience in the labor market and consumer spending helped dial back expectations of a sustained recession, but the prospect of higher rates for longer weighed on market sentiment toward the close of the period. |
• | Large-capitalization stocks held up better than mid- and small-caps, while value stocks, as measured by the S&P 500 Value Index, outperformed growth stocks, as measured by the S&P 500 Growth Index. |
• | The fund’s holdings in the information technology and health care sectors contributed most to relative performance, with industrials also a significant contributor. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 21.19% | 9.53% | 9.63% |
Russell 2000 Index (Small-caps) | 8.93 | 7.16 | 2.40 |
Russell 3000 Index (Broad U.S. market) | 20.46 | 9.38 | 9.14 |
FTSE All-World ex US Index (International) | 20.67 | 4.23 | 3.00 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | 0.78% | -5.18% | 0.18% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.66 | -2.30 | 1.05 |
FTSE Three-Month U.S. Treasury Bill Index | 4.71 | 1.78 | 1.74 |
CPI | |||
Consumer Price Index | 3.70% | 5.75% | 4.04% |
• | 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, 2023 | |||
Beginning Account Value 3/31/2023 | Ending Account Value 9/30/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
PRIMECAP Fund | |||
Investor Shares | $1,000.00 | $1,089.30 | $1.99 |
Admiral™ Shares | 1,000.00 | 1,089.60 | 1.62 |
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, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
PRIMECAP Fund Investor Shares | 28.06% | 9.07% | 13.05% | $34,104 | |
S&P 500 Index | 21.62 | 9.92 | 11.91 | 30,821 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.49 | 9.01 | 11.19 | 28,891 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
PRIMECAP Fund Admiral Shares | 28.14% | 9.15% | 13.13% | $171,750 | |
S&P 500 Index | 21.62 | 9.92 | 11.91 | 154,103 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.49 | 9.01 | 11.19 | 144,456 |
Communication Services | 6.2% |
Consumer Discretionary | 11.3 |
Consumer Staples | 0.3 |
Energy | 2.5 |
Financials | 6.4 |
Health Care | 32.2 |
Industrials | 13.0 |
Information Technology | 26.8 |
Materials | 1.3 |
Shares | Market Value• ($000) | ||
Common Stocks (98.3%) | |||
Communication Services (6.1%) | |||
* | Alphabet Inc. Class A | 11,184,290 | 1,463,576 |
* | Alphabet Inc. Class C | 6,464,720 | 852,373 |
* | Baidu Inc. ADR | 5,322,948 | 715,138 |
* | Walt Disney Co. | 4,299,554 | 348,479 |
Activision Blizzard Inc. | 3,287,700 | 307,828 | |
* | Charter Communications Inc. Class A | 193,600 | 85,149 |
* | Meta Platforms Inc. Class A | 243,500 | 73,101 |
* | T-Mobile US Inc. | 339,300 | 47,519 |
* | Live Nation Entertainment Inc. | 499,000 | 41,437 |
* | Netflix Inc. | 76,200 | 28,773 |
* | Altice USA Inc. Class A | 4,710,800 | 15,404 |
Comcast Corp. Class A | 51,000 | 2,262 | |
Nintendo Co. Ltd. | 17,500 | 727 | |
Electronic Arts Inc. | 5,700 | 686 | |
* | Roblox Corp. Class A | 13,250 | 384 |
3,982,836 | |||
Consumer Discretionary (11.1%) | |||
* | Tesla Inc. | 5,753,000 | 1,439,516 |
1 | Sony Group Corp. ADR | 13,245,000 | 1,091,520 |
Ross Stores Inc. | 7,604,700 | 858,951 | |
* | Alibaba Group Holding Ltd. ADR | 9,901,817 | 858,884 |
TJX Cos. Inc. | 8,168,600 | 726,025 | |
*,2 | Mattel Inc. | 26,455,838 | 582,822 |
2 | Whirlpool Corp. | 3,007,832 | 402,147 |
* | Amazon.com Inc. | 3,063,500 | 389,432 |
* | Royal Caribbean Cruises Ltd. | 2,404,147 | 221,518 |
Bath & Body Works Inc. | 3,490,014 | 117,963 | |
Marriott International Inc. Class A | 448,410 | 88,139 | |
* | Flutter Entertainment plc (XDUB) | 531,171 | 86,425 |
Hilton Worldwide Holdings Inc. | 423,766 | 63,641 | |
1 | Restaurant Brands International Inc. | 808,900 | 53,889 |
eBay Inc. | 1,189,000 | 52,423 | |
McDonald's Corp. | 191,800 | 50,528 | |
* | Burlington Stores Inc. | 217,700 | 29,455 |
* | Carnival Corp. | 2,054,065 | 28,182 |
Lowe's Cos. Inc. | 125,000 | 25,980 |
Shares | Market Value• ($000) | ||
MGM Resorts International | 540,000 | 19,850 | |
* | Victoria's Secret & Co. | 1,168,271 | 19,487 |
* | Ulta Beauty Inc. | 21,000 | 8,388 |
Las Vegas Sands Corp. | 173,400 | 7,949 | |
Newell Brands Inc. | 625,000 | 5,644 | |
7,228,758 | |||
Consumer Staples (0.3%) | |||
Sysco Corp. | 1,484,400 | 98,044 | |
* | Dollar Tree Inc. | 659,700 | 70,225 |
Altria Group Inc. | 594,100 | 24,982 | |
1 | Haleon plc ADR | 548,000 | 4,565 |
Dollar General Corp. | 20,000 | 2,116 | |
199,932 | |||
Energy (2.4%) | |||
Hess Corp. | 4,874,200 | 745,752 | |
Pioneer Natural Resources Co. | 2,231,500 | 512,241 | |
EOG Resources Inc. | 1,595,600 | 202,258 | |
* | Transocean Ltd. (XNYS) | 12,078,773 | 99,167 |
Schlumberger NV | 700,100 | 40,816 | |
1,600,234 | |||
Financials (6.3%) | |||
Wells Fargo & Co. | 27,837,347 | 1,137,434 | |
Visa Inc. Class A | 2,281,400 | 524,745 | |
Marsh & McLennan Cos. Inc. | 2,630,516 | 500,587 | |
JPMorgan Chase & Co. | 3,290,400 | 477,174 | |
Raymond James Financial Inc. | 4,257,403 | 427,571 | |
Bank of America Corp. | 8,434,632 | 230,940 | |
CME Group Inc. | 620,068 | 124,150 | |
Mastercard Inc. Class A | 308,300 | 122,059 | |
Progressive Corp. | 850,000 | 118,405 | |
Northern Trust Corp. | 1,507,900 | 104,769 | |
Citigroup Inc. | 1,822,300 | 74,951 | |
Fidelity National Information Services Inc. | 1,281,500 | 70,829 | |
* | PayPal Holdings Inc. | 866,500 | 50,656 |
Goldman Sachs Group Inc. | 150,000 | 48,536 | |
Charles Schwab Corp. | 873,014 | 47,928 | |
Morgan Stanley | 205,000 | 16,742 | |
Discover Financial Services | 182,525 | 15,812 | |
4,093,288 |
Shares | Market Value• ($000) | ||
Health Care (31.7%) | |||
Eli Lilly & Co. | 13,218,508 | 7,100,057 | |
Amgen Inc. | 8,980,295 | 2,413,544 | |
*,2 | Biogen Inc. | 9,016,571 | 2,317,349 |
AstraZeneca plc ADR | 25,805,588 | 1,747,554 | |
* | Boston Scientific Corp. | 25,747,344 | 1,359,460 |
1 | Novartis AG ADR | 8,961,185 | 912,786 |
Thermo Fisher Scientific Inc. | 1,799,547 | 910,877 | |
Bristol-Myers Squibb Co. | 11,502,023 | 667,577 | |
* | BioMarin Pharmaceutical Inc. | 6,697,338 | 592,581 |
Roche Holding AG | 1,557,193 | 425,115 | |
* | BeiGene Ltd. ADR | 2,277,390 | 409,634 |
GSK plc ADR | 8,630,550 | 312,857 | |
* | Seagen Inc. | 1,252,675 | 265,755 |
Zimmer Biomet Holdings Inc. | 2,188,800 | 245,627 | |
* | Elanco Animal Health Inc. (XNYS) | 17,528,639 | 197,022 |
Abbott Laboratories | 1,936,695 | 187,569 | |
CVS Health Corp. | 2,134,000 | 148,996 | |
Stryker Corp. | 317,400 | 86,736 | |
Agilent Technologies Inc. | 732,516 | 81,910 | |
Sanofi ADR | 893,000 | 47,901 | |
Medtronic plc | 570,000 | 44,665 | |
* | IQVIA Holdings Inc. | 213,584 | 42,023 |
Danaher Corp. | 167,402 | 41,532 | |
3 | Siemens Healthineers AG | 721,300 | 36,485 |
* | Edwards Lifesciences Corp. | 492,100 | 34,093 |
Alcon Inc. | 431,477 | 33,250 | |
* | Waters Corp. | 33,680 | 9,235 |
Humana Inc. | 10,076 | 4,902 | |
UnitedHealth Group Inc. | 9,615 | 4,848 | |
* | Zimvie Inc. | 101,700 | 957 |
20,682,897 | |||
Industrials (12.7%) | |||
FedEx Corp. | 8,572,658 | 2,271,069 | |
Siemens AG (Registered) | 7,787,469 | 1,112,898 | |
Southwest Airlines Co. | 25,438,978 | 688,633 | |
Airbus SE | 3,971,592 | 531,592 | |
* | United Airlines Holdings Inc. | 12,136,003 | 513,353 |
Delta Air Lines Inc. | 11,146,900 | 412,435 | |
Caterpillar Inc. | 1,348,100 | 368,031 | |
United Parcel Service Inc. Class B (XNYS) | 1,928,970 | 300,669 | |
Textron Inc. | 3,612,300 | 282,265 | |
Union Pacific Corp. | 1,350,400 | 274,982 | |
* | TransDigm Group Inc. | 315,666 | 266,147 |
* | American Airlines Group Inc. | 19,044,313 | 243,958 |
Carrier Global Corp. | 3,187,200 | 175,933 | |
* | Alaska Air Group Inc. | 3,298,400 | 122,305 |
General Dynamics Corp. | 513,800 | 113,534 | |
Otis Worldwide Corp. | 1,367,260 | 109,805 | |
JB Hunt Transport Services Inc. | 515,900 | 97,257 | |
CSX Corp. | 2,585,000 | 79,489 |
Shares | Market Value• ($000) | ||
Rockwell Automation Inc. | 165,500 | 47,311 | |
nVent Electric plc | 859,000 | 45,518 | |
Honeywell International Inc. | 221,000 | 40,828 | |
* | Lyft Inc. Class A | 3,208,900 | 33,822 |
L3Harris Technologies Inc. | 189,000 | 32,909 | |
AMETEK Inc. | 221,000 | 32,655 | |
Deere & Co. | 75,700 | 28,568 | |
RTX Corp. | 376,870 | 27,123 | |
* | WillScot Mobile Mini Holdings Corp. | 631,000 | 26,243 |
Norfolk Southern Corp. | 127,000 | 25,010 | |
* | Ryanair Holdings plc ADR | 250,000 | 24,302 |
* | Uber Technologies Inc. | 113,650 | 5,227 |
8,333,871 | |||
Information Technology (26.4%) | |||
* | Adobe Inc. | 4,357,557 | 2,221,918 |
Microsoft Corp. | 6,240,402 | 1,970,407 | |
Texas Instruments Inc. | 10,764,172 | 1,711,611 | |
KLA Corp. | 3,581,760 | 1,642,810 | |
Micron Technology Inc. | 23,646,774 | 1,608,690 | |
Intel Corp. | 45,108,718 | 1,603,615 | |
Oracle Corp. | 8,789,770 | 931,012 | |
NVIDIA Corp. | 1,725,500 | 750,575 | |
NetApp Inc. | 8,312,241 | 630,733 | |
Intuit Inc. | 1,184,800 | 605,362 | |
* | Splunk Inc. | 3,929,808 | 574,734 |
Analog Devices Inc. | 2,491,400 | 436,219 | |
QUALCOMM Inc. | 3,138,006 | 348,507 | |
HP Inc. | 12,883,216 | 331,099 | |
Hewlett Packard Enterprise Co. | 17,189,842 | 298,587 | |
Apple Inc. | 1,567,000 | 268,286 | |
Cisco Systems Inc. | 4,371,279 | 235,000 | |
1 | Telefonaktiebolaget LM Ericsson ADR | 38,743,541 | 188,294 |
Entegris Inc. | 1,835,622 | 172,383 | |
Applied Materials Inc. | 1,142,300 | 158,151 | |
Corning Inc. | 3,990,600 | 121,594 | |
* | Autodesk Inc. | 424,200 | 87,771 |
* | Palo Alto Networks Inc. | 315,450 | 73,954 |
* | Western Digital Corp. | 1,110,000 | 50,649 |
* | BlackBerry Ltd. | 9,975,500 | 46,985 |
Teradyne Inc. | 343,200 | 34,478 | |
* | Keysight Technologies Inc. | 179,500 | 23,750 |
* | VMware Inc. Class A | 120,000 | 19,978 |
Dell Technologies Inc. Class C | 273,900 | 18,872 | |
Marvell Technology Inc. | 344,000 | 18,621 | |
Jabil Inc. | 80,000 | 10,151 | |
* | Salesforce Inc. | 48,200 | 9,774 |
* | Fortinet Inc. | 69,450 | 4,075 |
1 | Infineon Technologies AG ADR | 75,000 | 2,488 |
* | Arista Networks Inc. | 4,000 | 736 |
* | Okta Inc. | 7,500 | 611 |
* | Unity Software Inc. | 11,950 | 375 |
* | RingCentral Inc. Class A | 8,000 | 237 |
17,213,092 | |||
Materials (1.3%) | |||
Glencore plc | 38,813,549 | 221,024 | |
Albemarle Corp. | 1,085,835 | 184,635 |
Shares | Market Value• ($000) | ||
DuPont de Nemours Inc. | 1,972,356 | 147,118 | |
Linde plc | 245,300 | 91,337 | |
Freeport-McMoRan Inc. | 2,186,900 | 81,550 | |
Dow Inc. | 1,255,817 | 64,750 | |
Corteva Inc. | 1,109,216 | 56,748 | |
847,162 | |||
Total Common Stocks (Cost $24,448,359) | 64,182,070 | ||
Temporary Cash Investments (1.9%) | |||
Money Market Fund (1.9%) | |||
4,5 | Vanguard Market Liquidity Fund, 5.391% (Cost $1,211,059) | 12,114,478 | 1,211,327 |
Total Investments (100.2%) (Cost $25,659,418) | 65,393,397 | ||
Other Assets and Liabilities—Net (-0.2%) | (134,106) | ||
Net Assets (100%) | 65,259,291 | ||
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 $139,866,000. |
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, 2023, the aggregate value was $36,485,000, 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 $144,394,000 was received for securities on loan. |
ADR—American Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $23,252,278) | 60,879,752 |
Affiliated Issuers (Cost $2,407,140) | 4,513,645 |
Total Investments in Securities | 65,393,397 |
Investment in Vanguard | 2,281 |
Cash | 5,120 |
Receivables for Accrued Income | 74,836 |
Receivables for Capital Shares Issued | 11,838 |
Total Assets | 65,487,472 |
Liabilities | |
Payables for Investment Securities Purchased | 37,574 |
Collateral for Securities on Loan | 144,394 |
Payables to Investment Advisor | 30,277 |
Payables for Capital Shares Redeemed | 11,844 |
Payables to Vanguard | 4,092 |
Total Liabilities | 228,181 |
Net Assets | 65,259,291 |
1 Includes $139,866,000 of securities on loan. | |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 21,227,367 |
Total Distributable Earnings (Loss) | 44,031,924 |
Net Assets | 65,259,291 |
Investor Shares—Net Assets | |
Applicable to 32,361,173 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 4,762,464 |
Net Asset Value Per Share—Investor Shares | $147.17 |
Admiral Shares—Net Assets | |
Applicable to 396,669,106 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 60,496,827 |
Net Asset Value Per Share—Admiral Shares | $152.51 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 898,557 |
Dividends—Affiliated Issuers | 20,958 |
Interest—Affiliated Issuers | 67,458 |
Securities Lending—Net | 145 |
Total Income | 987,118 |
Expenses | |
Investment Advisory Fees—Note B | 115,995 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 9,025 |
Management and Administrative—Admiral Shares | 72,712 |
Marketing and Distribution—Investor Shares | 193 |
Marketing and Distribution—Admiral Shares | 1,789 |
Custodian Fees | 1,677 |
Auditing Fees | 30 |
Shareholders’ Reports—Investor Shares | 65 |
Shareholders’ Reports—Admiral Shares | 194 |
Trustees’ Fees and Expenses | 36 |
Other Expenses | 417 |
Total Expenses | 202,133 |
Expenses Paid Indirectly | (5) |
Net Expenses | 202,128 |
Net Investment Income | 784,990 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 4 |
Investment Securities Sold—Unaffiliated Issuers | 4,162,634 |
Investment Securities Sold—Affiliated Issuers | (3,750) |
Foreign Currencies | (51) |
Realized Net Gain (Loss) | 4,158,837 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | 10,282,718 |
Investment Securities—Affiliated Issuers | (9,221) |
Foreign Currencies | 398 |
Change in Unrealized Appreciation (Depreciation) | 10,273,895 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,217,722 |
1 | Dividends are net of foreign withholding taxes of $14,530,000. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 784,990 | 694,417 |
Realized Net Gain (Loss) | 4,158,837 | 5,251,839 |
Change in Unrealized Appreciation (Depreciation) | 10,273,895 | (17,464,208) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,217,722 | (11,517,952) |
Distributions | ||
Investor Shares | (408,794) | (553,707) |
Admiral Shares | (5,062,138) | (6,487,189) |
Total Distributions | (5,470,932) | (7,040,896) |
Capital Share Transactions | ||
Investor Shares | (215,027) | (197,112) |
Admiral Shares | (113,439) | 659,600 |
Net Increase (Decrease) from Capital Share Transactions | (328,466) | 462,488 |
Total Increase (Decrease) | 9,418,324 | (18,096,360) |
Net Assets | ||
Beginning of Period | 55,840,967 | 73,937,327 |
End of Period | 65,259,291 | 55,840,967 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $126.26 | $168.72 | $142.86 | $133.12 | $147.61 |
Investment Operations | |||||
Net Investment Income1 | 1.632 | 1.456 | 1.183 | 1.745 | 1.715 |
Net Realized and Unrealized Gain (Loss) on Investments | 31.717 | (27.430) | 39.134 | 17.947 | (6.495) |
Total from Investment Operations | 33.349 | (25.974) | 40.317 | 19.692 | (4.780) |
Distributions | |||||
Dividends from Net Investment Income | (1.549) | (1.150) | (1.542) | (1.690) | (1.470) |
Distributions from Realized Capital Gains | (10.890) | (15.336) | (12.915) | (8.262) | (8.240) |
Total Distributions | (12.439) | (16.486) | (14.457) | (9.952) | (9.710) |
Net Asset Value, End of Period | $147.17 | $126.26 | $168.72 | $142.86 | $133.12 |
Total Return2 | 28.06% | -17.25% | 29.74% | 15.05% | -2.41% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $4,762 | $4,243 | $5,878 | $5,697 | $6,095 |
Ratio of Total Expenses to Average Net Assets | 0.38%3 | 0.38%3 | 0.38% | 0.38% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 1.17% | 0.95% | 0.73% | 1.31% | 1.32% |
Portfolio Turnover Rate | 4% | 3% | 5% | 6% | 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 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, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $130.87 | $174.92 | $148.12 | $138.02 | $153.09 |
Investment Operations | |||||
Net Investment Income1 | 1.793 | 1.621 | 1.345 | 1.920 | 1.880 |
Net Realized and Unrealized Gain (Loss) on Investments | 32.854 | (28.426) | 40.564 | 18.600 | (6.756) |
Total from Investment Operations | 34.647 | (26.805) | 41.909 | 20.520 | (4.876) |
Distributions | |||||
Dividends from Net Investment Income | (1.718) | (1.343) | (1.716) | (1.853) | (1.647) |
Distributions from Realized Capital Gains | (11.289) | (15.902) | (13.393) | (8.567) | (8.547) |
Total Distributions | (13.007) | (17.245) | (15.109) | (10.420) | (10.194) |
Net Asset Value, End of Period | $152.51 | $130.87 | $174.92 | $148.12 | $138.02 |
Total Return2 | 28.14% | -17.19% | 29.83% | 15.13% | -2.34% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $60,497 | $51,598 | $68,059 | $58,626 | $57,177 |
Ratio of Total Expenses to Average Net Assets | 0.31%3 | 0.31%3 | 0.31% | 0.31% | 0.31% |
Ratio of Net Investment Income to Average Net Assets | 1.24% | 1.02% | 0.80% | 1.39% | 1.39% |
Portfolio Turnover Rate | 4% | 3% | 5% | 6% | 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 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, 2023, 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, 2023, custodian fee offset arrangements reduced the fund’s expenses by $5,000 (an annual rate of less than 0.01% of average net assets). |
E. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 61,767,804 | 2,414,266 | — | 64,182,070 |
Temporary Cash Investments | 1,211,327 | — | — | 1,211,327 |
Total | 62,979,131 | 2,414,266 | — | 65,393,397 |
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 | 231,487 |
Total Distributable Earnings (Loss) | (231,487) |
Amount ($000) | |
Undistributed Ordinary Income | 612,526 |
Undistributed Long-Term Gains | 3,692,808 |
Net Unrealized Gains (Losses) | 39,726,590 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 44,031,924 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 721,198 | 804,431 |
Long-Term Capital Gains | 4,749,734 | 6,236,465 |
Total | 5,470,932 | 7,040,896 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 25,666,797 |
Gross Unrealized Appreciation | 42,386,363 |
Gross Unrealized Depreciation | (2,659,763) |
Net Unrealized Appreciation (Depreciation) | 39,726,600 |
G. | During the year ended September 30, 2023, the fund purchased $2,390,626,000 of investment securities and sold $6,892,650,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Year Ended September 30, | |||||
2023 | 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 205,544 | 1,472 | 229,327 | 1,457 | |
Issued in Lieu of Cash Distributions | 388,807 | 3,083 | 527,986 | 3,387 | |
Redeemed | (809,378) | (5,800) | (954,425) | (6,080) | |
Net Increase (Decrease)—Investor Shares | (215,027) | (1,245) | (197,112) | (1,236) | |
Admiral Shares | |||||
Issued | 1,725,734 | 12,228 | 1,600,922 | 10,130 | |
Issued in Lieu of Cash Distributions | 4,730,931 | 36,219 | 6,077,212 | 37,637 | |
Redeemed | (6,570,104) | (46,041) | (7,018,534) | (42,598) | |
Net Increase (Decrease)—Admiral Shares | (113,439) | 2,406 | 659,600 | 5,169 |
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, 2022 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2023 Market Value ($000) | |
Biogen Inc. | 2,381,790 | 30,163 | 3,588 | 234 | (91,250) | — | — | 2,317,349 |
Mattel Inc. | 517,760 | — | 15,791 | (3,750) | 84,603 | — | — | 582,822 |
Vanguard Market Liquidity Fund | 1,696,764 | NA1 | NA1 | 136 | 147 | 67,458 | 4 | 1,211,327 |
Whirlpool Corp. | 403,733 | 4,843 | 3,338 | (370) | (2,721) | 20,958 | — | 402,147 |
Total | 5,000,047 | 35,006 | 22,717 | (3,750) | (9,221) | 88,416 | 4 | 4,513,645 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
K. | Management has determined that no events or transactions occurred subsequent to September 30, 2023, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
November 16, 2023
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 | |
19 | |
34 | |
49 | |
62 | |
75 |
• | For the 12 months ended September 30, 2023, returns for the six Vanguard Target Retirement Funds covered in this report ranged from 7.02% for the Income Fund to 16.15% for the 2040 Fund. (The funds with target dates of 2045 through 2070 are covered in a separate report.) |
• | Early in the period, inflation began to ease off multidecade highs amid aggressive interest rate hikes by the Federal Reserve and other major central banks. Unexpected resilience in labor markets and consumer spending helped dial back expectations of a sustained U.S. or global recession, but the prospect of higher rates for longer weighed on market sentiment toward the close of the period. |
• | 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 3.60% for the Income Fund to 7.26% for the 2040 Fund. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 21.19% | 9.53% | 9.63% |
Russell 2000 Index (Small-caps) | 8.93 | 7.16 | 2.40 |
Russell 3000 Index (Broad U.S. market) | 20.46 | 9.38 | 9.14 |
FTSE All-World ex US Index (International) | 20.67 | 4.23 | 3.00 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | 0.78% | -5.18% | 0.18% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.66 | -2.30 | 1.05 |
FTSE Three-Month U.S. Treasury Bill Index | 4.71 | 1.78 | 1.74 |
CPI | |||
Consumer Price Index | 3.70% | 5.75% | 4.04% |
• | 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, 2023 | |||
Beginning Account Value 3/31/2023 | Ending Account Value 9/30/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Target Retirement Income Fund | $1,000.00 | $989.80 | $0.40 |
Target Retirement 2020 Fund | $1,000.00 | $994.40 | $0.40 |
Target Retirement 2025 Fund | $1,000.00 | $999.40 | $0.40 |
Target Retirement 2030 Fund | $1,000.00 | $1,002.40 | $0.40 |
Target Retirement 2035 Fund | $1,000.00 | $1,006.80 | $0.40 |
Target Retirement 2040 Fund | $1,000.00 | $1,010.80 | $0.40 |
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, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement Income Fund | 7.02% | 2.69% | 3.60% | $14,240 | |
Target Income Composite Index | 7.31 | 2.97 | 3.84 | 14,578 | |
Bloomberg U.S. Aggregate Bond Index | 0.64 | 0.10 | 1.13 | 11,185 |
Vanguard Total Bond Market II Index Fund Investor Shares | 37.2% |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 17.5 |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 17.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 16.2 |
Vanguard Total International Stock Index Fund Investor Shares | 12.0 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.2%) | ||||||
U.S. Stock Fund (17.4%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 31,587,243 | 6,127,293 | ||||
International Stock Fund (11.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 244,056,344 | 4,192,888 | ||||
U.S. Bond Funds (53.8%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,434,365,655 | 13,009,696 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 253,514,275 | 5,967,726 | ||||
18,977,422 | ||||||
International Bond Fund (16.1%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 221,237,110 | 5,685,794 | |||
Total Investment Companies (Cost $32,688,565) | 34,983,397 | |||||
Temporary Cash Investments (0.8%) | ||||||
Money Market Fund (0.8%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $283,255) | 2,833,704 | 283,342 | |||
Total Investments (100.0%) (Cost $32,971,820) | 35,266,739 | |||||
Other Assets and Liabilities—Net (0.0%) | (3,466) | |||||
Net Assets (100%) | 35,263,273 |
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 2023 | 1,810 | 195,593 | (3,893) |
E-mini S&P 500 Index | December 2023 | 423 | 91,484 | (3,927) |
(7,820) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $32,971,820) | 35,266,739 |
Cash | 4 |
Cash Collateral Pledged—Futures Contracts | 8,367 |
Receivables for Investment Securities Sold | 5,578 |
Receivables for Accrued Income | 89,060 |
Receivables for Capital Shares Issued | 13,687 |
Variation Margin Receivable—Futures Contracts | 114 |
Total Assets | 35,383,549 |
Liabilities | |
Payables for Investment Securities Purchased | 89,070 |
Payables for Capital Shares Redeemed | 31,206 |
Total Liabilities | 120,276 |
Net Assets | 35,263,273 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 32,559,967 |
Total Distributable Earnings (Loss) | 2,703,306 |
Net Assets | 35,263,273 |
Net Assets | |
Applicable to 2,837,086,106 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 35,263,273 |
Net Asset Value Per Share | $12.43 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 972,603 |
Net Investment Income—Note B | 972,603 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 1 |
Affiliated Funds Sold1 | 427,570 |
Futures Contracts | (3,766) |
Realized Net Gain (Loss) | 423,805 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 1,111,662 |
Futures Contracts | 35,496 |
Change in Unrealized Appreciation (Depreciation) | 1,147,158 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,543,566 |
1 | Includes $74,035,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 972,603 | 682,240 |
Realized Net Gain (Loss) | 423,805 | 367,744 |
Change in Unrealized Appreciation (Depreciation) | 1,147,158 | (5,178,040) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,543,566 | (4,128,056) |
Distributions | ||
Total Distributions | (1,182,988) | (1,512,703) |
Capital Share Transactions | ||
Issued | 2,868,217 | 4,128,690 |
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 | 1,143,309 | 1,422,170 |
Redeemed | (6,630,784) | (5,368,260) |
Net Increase (Decrease) from Capital Share Transactions | (2,619,258) | 25,841,107 |
Total Increase (Decrease) | (1,258,680) | 20,200,348 |
Net Assets | ||
Beginning of Period | 36,521,953 | 16,321,605 |
End of Period | 35,263,273 | 36,521,953 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $12.00 | $15.24 | $14.54 | $13.85 | $13.52 |
Investment Operations | |||||
Net Investment Income1 | .333 | .380 | .278 | .308 | .341 |
Capital Gain Distributions Received1 | .0002 | .017 | .056 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | .503 | (2.381) | .887 | .696 | .533 |
Total from Investment Operations | .836 | (1.984) | 1.221 | 1.004 | .874 |
Distributions | |||||
Dividends from Net Investment Income | (.360) | (.382) | (.256) | (.297) | (.352) |
Distributions from Realized Capital Gains | (.046) | (.874) | (.265) | (.017) | (.192) |
Total Distributions | (.406) | (1.256) | (.521) | (.314) | (.544) |
Net Asset Value, End of Period | $12.43 | $12.00 | $15.24 | $14.54 | $13.85 |
Total Return3 | 7.02% | -14.19% | 8.48% | 7.35% | 6.75% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $35,263 | $36,522 | $16,322 | $17,576 | $16,984 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.12% | 0.12% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.64% | 2.82% | 1.84% | 2.19% | 2.54% |
Portfolio Turnover Rate | 4%5 | 19%5 | 6% | 17% | 10% |
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 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. |
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 | 95,844 |
Total Distributable Earnings (Loss) | (95,844) |
Amount ($000) | |
Undistributed Ordinary Income | 94,083 |
Undistributed Long-Term Gains | 337,575 |
Net Unrealized Gains (Losses) | 2,271,648 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 2,703,306 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,046,938 | 599,113 |
Long-Term Capital Gains | 136,050 | 913,590 |
Total | 1,182,988 | 1,512,703 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 32,995,091 |
Gross Unrealized Appreciation | 5,184,267 |
Gross Unrealized Depreciation | (2,912,619) |
Net Unrealized Appreciation (Depreciation) | 2,271,648 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 227,373 | 308,419 |
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 | 92,349 | 102,470 |
Redeemed | (527,079) | (397,574) |
Net Increase (Decrease) in Shares Outstanding | (207,357) | 1,973,458 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 446,308 | NA2 | NA2 | 40 | 40 | 18,340 | 1 | 283,342 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 6,232,081 | 299,179 | 528,948 | (19,058) | (15,528) | 233,297 | — | 5,967,726 |
Vanguard Total Bond Market II Index Fund | 13,535,615 | 697,940 | 931,283 | (67,298) | (225,278) | 392,575 | — | 13,009,696 |
Vanguard Total International Bond II Index Fund | 5,936,226 | 94,066 | 380,148 | (37,119) | 72,769 | 94,066 | — | 5,685,794 |
Vanguard Total International Stock Index Fund | 4,191,103 | 173,890 | 883,029 | 28,747 | 682,177 | 130,996 | — | 4,192,888 |
Vanguard Total Stock Market Index Fund | 6,173,767 | 193,326 | 1,359,540 | 522,258 | 597,482 | 103,329 | — | 6,127,293 |
Total | 36,515,100 | 1,458,401 | 4,082,948 | 427,570 | 1,111,662 | 972,603 | 1 | 35,266,739 |
1 | Includes $425,530,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2020 Fund | 9.36% | 3.58% | 5.24% | $16,660 | |
Target 2020 Composite Index | 9.68 | 3.95 | 5.54 | 17,140 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Bond Market II Index Fund Investor Shares | 32.9% |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 24.0 |
Vanguard Total International Stock Index Fund Investor Shares | 16.4 |
Vanguard Total International Bond II Index Fund Institutional Shares | 14.8 |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 11.9 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.1%) | ||||||
U.S. Stock Fund (23.8%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 46,280,257 | 8,977,444 | ||||
International Stock Fund (16.2%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 356,087,443 | 6,117,582 | ||||
U.S. Bond Funds (44.4%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,357,403,938 | 12,311,654 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 189,118,244 | 4,451,843 | ||||
16,763,497 | ||||||
International Bond Fund (14.7%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 215,848,457 | 5,547,306 | |||
Total Investment Companies (Cost $33,364,438) | 37,405,829 | |||||
Temporary Cash Investments (0.9%) | ||||||
Money Market Fund (0.9%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $348,165) | 3,482,929 | 348,258 | |||
Total Investments (100.0%) (Cost $33,712,603) | 37,754,087 | |||||
Other Assets and Liabilities—Net (0.0%) | (3,579) | |||||
Net Assets (100%) | 37,750,508 |
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 2023 | 1,969 | 212,775 | (4,234) |
E-mini S&P 500 Index | December 2023 | 652 | 141,011 | (6,053) |
(10,287) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $33,712,603) | 37,754,087 |
Cash Collateral Pledged—Futures Contracts | 11,250 |
Receivables for Accrued Income | 76,341 |
Receivables for Capital Shares Issued | 37,842 |
Variation Margin Receivable—Futures Contracts | 9 |
Total Assets | 37,879,529 |
Liabilities | |
Payables for Investment Securities Purchased | 85,380 |
Payables for Capital Shares Redeemed | 43,641 |
Total Liabilities | 129,021 |
Net Assets | 37,750,508 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 31,907,915 |
Total Distributable Earnings (Loss) | 5,842,593 |
Net Assets | 37,750,508 |
Net Assets | |
Applicable to 1,428,638,616 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 37,750,508 |
Net Asset Value Per Share | $26.42 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,014,170 |
Net Investment Income—Note B | 1,014,170 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 1 |
Affiliated Funds Sold1 | 1,512,603 |
Futures Contracts | (15,206) |
Realized Net Gain (Loss) | 1,497,398 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 1,133,492 |
Futures Contracts | 36,087 |
Change in Unrealized Appreciation (Depreciation) | 1,169,579 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,681,147 |
1 | Includes $213,362,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,014,170 | 947,441 |
Realized Net Gain (Loss) | 1,497,398 | 1,480,701 |
Change in Unrealized Appreciation (Depreciation) | 1,169,579 | (9,865,534) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,681,147 | (7,437,392) |
Distributions | ||
Total Distributions | (1,915,234) | (4,080,032) |
Capital Share Transactions | ||
Issued | 2,700,212 | 3,925,733 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2020 Fund—Note G | — | 27,887,495 |
Issued in Lieu of Cash Distributions | 1,876,931 | 3,912,325 |
Redeemed | (8,427,322) | (9,745,997) |
Net Increase (Decrease) from Capital Share Transactions | (3,850,179) | 25,979,556 |
Total Increase (Decrease) | (2,084,266) | 14,462,132 |
Net Assets | ||
Beginning of Period | 39,834,774 | 25,372,642 |
End of Period | 37,750,508 | 39,834,774 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $25.37 | $36.04 | $33.79 | $32.24 | $32.14 |
Investment Operations | |||||
Net Investment Income1 | .671 | .725 | .613 | .713 | .778 |
Capital Gain Distributions Received1 | .0002 | .033 | .110 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 1.643 | (5.358) | 3.680 | 1.987 | .736 |
Total from Investment Operations | 2.314 | (4.600) | 4.403 | 2.700 | 1.514 |
Distributions | |||||
Dividends from Net Investment Income | (.654) | (.789) | (.554) | (.789) | (.745) |
Distributions from Realized Capital Gains | (.610) | (5.281) | (1.599) | (.361) | (.669) |
Total Distributions | (1.264) | (6.070) | (2.153) | (1.150) | (1.414) |
Net Asset Value, End of Period | $26.42 | $25.37 | $36.04 | $33.79 | $32.24 |
Total Return3 | 9.36% | -15.83% | 13.37% | 8.51% | 5.29% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $37,751 | $39,835 | $25,373 | $31,887 | $32,790 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.13% | 0.13% | 0.13% |
Ratio of Net Investment Income to Average Net Assets | 2.52% | 2.48% | 1.73% | 2.21% | 2.51% |
Portfolio Turnover Rate | 3%5 | 14%5 | 5% | 19% | 13% |
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 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. |
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 | 313,615 |
Total Distributable Earnings (Loss) | (313,615) |
Amount ($000) | |
Undistributed Ordinary Income | 617,777 |
Undistributed Long-Term Gains | 1,206,295 |
Net Unrealized Gains (Losses) | 4,018,521 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 5,842,593 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 990,842 | 535,324 |
Long-Term Capital Gains | 924,392 | 3,544,708 |
Total | 1,915,234 | 4,080,032 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 33,735,566 |
Gross Unrealized Appreciation | 7,086,371 |
Gross Unrealized Depreciation | (3,067,850) |
Net Unrealized Appreciation (Depreciation) | 4,018,521 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 101,678 | 132,504 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2020 Fund—Note G | — | 937,710 |
Issued in Lieu of Cash Distributions | 74,363 | 126,123 |
Redeemed | (317,822) | (329,983) |
Net Increase (Decrease) in Shares Outstanding | (141,781) | 866,354 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 500,087 | NA2 | NA2 | 17 | 76 | 18,613 | 1 | 348,258 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 4,373,617 | 306,540 | 201,202 | (6,377) | (20,735) | 168,069 | — | 4,451,843 |
Vanguard Total Bond Market II Index Fund | 12,595,113 | 595,636 | 598,322 | (17,619) | (263,154) | 374,709 | — | 12,311,654 |
Vanguard Total International Bond II Index Fund | 5,745,903 | 90,188 | 320,987 | (38,512) | 70,714 | 90,188 | — | 5,547,306 |
Vanguard Total International Stock Index Fund | 6,729,370 | 202,367 | 1,956,263 | 182,465 | 959,643 | 202,368 | — | 6,117,582 |
Vanguard Total Stock Market Index Fund | 9,880,354 | 169,468 | 2,851,955 | 1,392,629 | 386,948 | 160,223 | — | 8,977,444 |
Total | 39,824,444 | 1,364,199 | 5,928,729 | 1,512,603 | 1,133,492 | 1,014,170 | 1 | 37,754,087 |
1 | Includes $925,880,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2025 Fund | 11.56% | 4.06% | 5.79% | $17,565 | |
Target 2025 Composite Index | 11.91 | 4.50 | 6.13 | 18,137 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 32.1% |
Vanguard Total Bond Market II Index Fund Investor Shares | 28.6 |
Vanguard Total International Stock Index Fund Investor Shares | 21.8 |
Vanguard Total International Bond II Index Fund Institutional Shares | 12.7 |
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 4.8 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.8%) | ||||||
U.S. Stock Fund (31.7%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 117,993,110 | 22,888,304 | ||||
International Stock Fund (21.5%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 903,956,341 | 15,529,970 | ||||
U.S. Bond Funds (33.1%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 2,249,638,429 | 20,404,221 | |||
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares | 147,506,565 | 3,472,304 | ||||
23,876,525 | ||||||
International Bond Fund (12.5%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 351,721,831 | 9,039,251 | |||
Total Investment Companies (Cost $60,276,055) | 71,334,050 | |||||
Temporary Cash Investments (1.2%) | ||||||
Money Market Fund (1.2%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $850,071) | 8,503,181 | 850,233 | |||
Total Investments (100.0%) (Cost $61,126,126) | 72,184,283 | |||||
Other Assets and Liabilities—Net (0.0%) | (4,458) | |||||
Net Assets (100%) | 72,179,825 |
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 2023 | 5,801 | 626,870 | (12,442) |
E-mini S&P 500 Index | December 2023 | 1,123 | 242,877 | (10,426) |
(22,868) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $61,126,126) | 72,184,283 |
Cash Collateral Pledged—Futures Contracts | 24,625 |
Receivables for Accrued Income | 99,240 |
Receivables for Capital Shares Issued | 75,963 |
Variation Margin Receivable—Futures Contracts | 504 |
Total Assets | 72,384,615 |
Liabilities | |
Payables for Investment Securities Purchased | 127,661 |
Payables for Capital Shares Redeemed | 77,129 |
Total Liabilities | 204,790 |
Net Assets | 72,179,825 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 59,146,033 |
Total Distributable Earnings (Loss) | 13,033,792 |
Net Assets | 72,179,825 |
Net Assets | |
Applicable to 4,113,208,644 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 72,179,825 |
Net Asset Value Per Share | $17.55 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,762,114 |
Net Investment Income—Note B | 1,762,114 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 3 |
Affiliated Funds Sold1 | 1,455,569 |
Futures Contracts | (46,021) |
Realized Net Gain (Loss) | 1,409,551 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 4,693,038 |
Futures Contracts | 57,779 |
Change in Unrealized Appreciation (Depreciation) | 4,750,817 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,922,482 |
1 | Includes $539,038,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,762,114 | 1,430,621 |
Realized Net Gain (Loss) | 1,409,551 | 1,472,838 |
Change in Unrealized Appreciation (Depreciation) | 4,750,817 | (17,396,559) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,922,482 | (14,493,100) |
Distributions | ||
Total Distributions | (2,068,531) | (5,793,135) |
Capital Share Transactions | ||
Issued | 6,709,930 | 7,986,116 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2025 Fund—Note G | — | 47,651,059 |
Issued in Lieu of Cash Distributions | 2,031,053 | 5,596,269 |
Redeemed | (11,801,508) | (12,829,147) |
Net Increase (Decrease) from Capital Share Transactions | (3,060,525) | 48,404,297 |
Total Increase (Decrease) | 2,793,426 | 28,118,062 |
Net Assets | ||
Beginning of Period | 69,386,399 | 41,268,337 |
End of Period | 72,179,825 | 69,386,399 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $16.20 | $22.84 | $20.56 | $19.34 | $19.02 |
Investment Operations | |||||
Net Investment Income1 | .418 | .413 | .362 | .438 | .464 |
Capital Gain Distributions Received1 | .0002 | .019 | .063 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 1.426 | (3.761) | 2.792 | 1.292 | .390 |
Total from Investment Operations | 1.844 | (3.329) | 3.217 | 1.730 | .854 |
Distributions | |||||
Dividends from Net Investment Income | (.368) | (.440) | (.356) | (.471) | (.434) |
Distributions from Realized Capital Gains | (.126) | (2.871) | (.581) | (.039) | (.100) |
Total Distributions | (.494) | (3.311) | (.937) | (.510) | (.534) |
Net Asset Value, End of Period | $17.55 | $16.20 | $22.84 | $20.56 | $19.34 |
Total Return3 | 11.56% | -17.53% | 15.93% | 9.04% | 4.89% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $72,180 | $69,386 | $41,268 | $46,521 | $44,146 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.13% | 0.13% | 0.13% |
Ratio of Net Investment Income to Average Net Assets | 2.39% | 2.19% | 1.63% | 2.25% | 2.51% |
Portfolio Turnover Rate | 6%5 | 14%5 | 7% | 21% | 11% |
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 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. |
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 | 594,268 |
Total Distributable Earnings (Loss) | (594,268) |
Amount ($000) | |
Undistributed Ordinary Income | 1,174,499 |
Undistributed Long-Term Gains | 865,484 |
Net Unrealized Gains (Losses) | 10,993,809 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 13,033,792 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,541,167 | 778,259 |
Long-Term Capital Gains | 527,364 | 5,014,876 |
Total | 2,068,531 | 5,793,135 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 61,190,474 |
Gross Unrealized Appreciation | 16,061,702 |
Gross Unrealized Depreciation | (5,067,893) |
Net Unrealized Appreciation (Depreciation) | 10,993,809 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 383,880 | 417,232 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2025 Fund—Note G | — | 2,456,240 |
Issued in Lieu of Cash Distributions | 122,574 | 275,136 |
Redeemed | (677,360) | (671,433) |
Net Increase (Decrease) in Shares Outstanding | (170,906) | 2,477,175 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 861,189 | NA2 | NA2 | (11) | 188 | 38,180 | 3 | 850,233 |
Vanguard Short-Term Inflation-Protected Securities Index Fund | 2,333,592 | 1,241,881 | 80,529 | 221 | (22,861) | 107,257 | — | 3,472,304 |
Vanguard Total Bond Market II Index Fund | 19,950,264 | 1,686,886 | 743,540 | (10,657) | (478,732) | 604,526 | — | 20,404,221 |
Vanguard Total International Bond II Index Fund | 8,964,226 | 359,257 | 330,457 | (30,938) | 77,163 | 142,701 | — | 9,039,251 |
Vanguard Total International Stock Index Fund | 14,785,436 | 495,364 | 2,260,362 | (137,958) | 2,647,490 | 483,207 | — | 15,529,970 |
Vanguard Total Stock Market Index Fund | 22,470,930 | 386,244 | 4,073,572 | 1,634,912 | 2,469,790 | 386,243 | — | 22,888,304 |
Total | 69,365,637 | 4,169,632 | 7,488,460 | 1,455,569 | 4,693,038 | 1,762,114 | 3 | 72,184,283 |
1 | Includes $1,798,960,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2030 Fund | 13.14% | 4.46% | 6.28% | $18,389 | |
Target 2030 Composite Index | 13.51 | 4.91 | 6.62 | 18,991 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 38.1% |
Vanguard Total Bond Market II Index Fund Investor Shares | 25.7 |
Vanguard Total International Stock Index Fund Investor Shares | 25.0 |
Vanguard Total International Bond II Index Fund Institutional Shares | 11.2 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.0%) | ||||||
U.S. Stock Fund (37.7%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 158,714,881 | 30,787,513 | ||||
International Stock Fund (24.7%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,173,984,640 | 20,169,055 | ||||
U.S. Bond Fund (25.5%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 2,290,584,537 | 20,775,602 | |||
International Bond Fund (11.1%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 350,712,611 | 9,013,314 | |||
Total Investment Companies (Cost $68,274,813) | 80,745,484 | |||||
Temporary Cash Investments (1.0%) | ||||||
Money Market Fund (1.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $814,383) | 8,146,289 | 814,547 | |||
Total Investments (100.0%) (Cost $69,089,196) | 81,560,031 | |||||
Other Assets and Liabilities—Net (0.0%) | (6,401) | |||||
Net Assets (100%) | 81,553,630 |
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 2023 | 5,249 | 567,220 | (11,289) |
E-mini S&P 500 Index | December 2023 | 1,299 | 280,941 | (12,059) |
(23,348) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $69,089,196) | 81,560,031 |
Cash Collateral Pledged—Futures Contracts | 25,055 |
Receivables for Accrued Income | 74,983 |
Receivables for Capital Shares Issued | 145,753 |
Variation Margin Receivable—Futures Contracts | 287 |
Total Assets | 81,806,109 |
Liabilities | |
Payables for Investment Securities Purchased | 146,631 |
Payables for Capital Shares Redeemed | 105,848 |
Total Liabilities | 252,479 |
Net Assets | 81,553,630 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 67,965,021 |
Total Distributable Earnings (Loss) | 13,588,609 |
Net Assets | 81,553,630 |
Net Assets | |
Applicable to 2,454,059,177 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 81,553,630 |
Net Asset Value Per Share | $33.23 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,859,970 |
Net Investment Income—Note B | 1,859,970 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 3 |
Affiliated Funds Sold1 | 642,957 |
Futures Contracts | (32,661) |
Realized Net Gain (Loss) | 610,299 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 6,861,828 |
Futures Contracts | 66,695 |
Change in Unrealized Appreciation (Depreciation) | 6,928,523 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,398,792 |
1 | Includes $777,246,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,859,970 | 1,349,350 |
Realized Net Gain (Loss) | 610,299 | 1,416,136 |
Change in Unrealized Appreciation (Depreciation) | 6,928,523 | (18,554,899) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,398,792 | (15,789,413) |
Distributions | ||
Total Distributions | (1,883,769) | (5,575,104) |
Capital Share Transactions | ||
Issued | 10,157,450 | 10,016,570 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2030 Fund—Note G | — | 51,947,425 |
Issued in Lieu of Cash Distributions | 1,854,906 | 5,417,389 |
Redeemed | (10,089,296) | (10,847,444) |
Net Increase (Decrease) from Capital Share Transactions | 1,923,060 | 56,533,940 |
Total Increase (Decrease) | 9,438,083 | 35,169,423 |
Net Assets | ||
Beginning of Period | 72,115,547 | 36,946,124 |
End of Period | 81,553,630 | 72,115,547 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $30.12 | $43.40 | $37.63 | $35.22 | $34.74 |
Investment Operations | |||||
Net Investment Income1 | .767 | .730 | .679 | .782 | .830 |
Capital Gain Distributions Received1 | .0002 | .028 | .098 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 3.137 | (7.291) | 6.031 | 2.495 | .486 |
Total from Investment Operations | 3.904 | (6.533) | 6.808 | 3.277 | 1.316 |
Distributions | |||||
Dividends from Net Investment Income | (.643) | (.822) | (.661) | (.867) | (.767) |
Distributions from Realized Capital Gains | (.151) | (5.925) | (.377) | — | (.069) |
Total Distributions | (.794) | (6.747) | (1.038) | (.867) | (.836) |
Net Asset Value, End of Period | $33.23 | $30.12 | $43.40 | $37.63 | $35.22 |
Total Return3 | 13.14% | -18.42% | 18.29% | 9.38% | 4.15% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $81,554 | $72,116 | $36,946 | $42,285 | $39,114 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.13% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.32% | 2.07% | 1.62% | 2.20% | 2.46% |
Portfolio Turnover Rate | 3%5 | 11%5 | 6% | 21% | 8% |
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 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. |
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 | 777,246 |
Total Distributable Earnings (Loss) | (777,246) |
Amount ($000) | |
Undistributed Ordinary Income | 1,310,830 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 12,354,888 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | (77,109) |
Other Temporary Differences | — |
Total | 13,588,609 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,534,433 | 681,656 |
Long-Term Capital Gains | 349,336 | 4,893,448 |
Total | 1,883,769 | 5,575,104 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 69,205,143 |
Gross Unrealized Appreciation | 17,638,722 |
Gross Unrealized Depreciation | (5,283,834) |
Net Unrealized Appreciation (Depreciation) | 12,354,888 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 307,590 | 280,621 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2030 Fund—Note G | — | 1,421,270 |
Issued in Lieu of Cash Distributions | 59,567 | 140,931 |
Redeemed | (307,233) | (299,972) |
Net Increase (Decrease) in Shares Outstanding | 59,924 | 1,542,850 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 925,032 | NA2 | NA2 | (20) | 182 | 42,251 | 3 | 814,547 |
Vanguard Total Bond Market II Index Fund | 18,202,037 | 3,730,027 | 622,899 | 2,509 | (536,072) | 579,501 | — | 20,775,602 |
Vanguard Total International Bond II Index Fund | 8,025,494 | 1,221,868 | 263,703 | (12,187) | 41,842 | 136,616 | — | 9,013,314 |
Vanguard Total International Stock Index Fund | 17,780,277 | 732,799 | 1,364,255 | (2,498) | 3,022,732 | 609,705 | — | 20,169,055 |
Vanguard Total Stock Market Index Fund | 27,143,585 | 663,909 | 2,008,278 | 655,153 | 4,333,144 | 491,897 | — | 30,787,513 |
Total | 72,076,425 | 6,348,603 | 4,259,135 | 642,957 | 6,861,828 | 1,859,970 | 3 | 81,560,031 |
1 | Includes $2,183,600,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2035 Fund | 14.61% | 4.93% | 6.79% | $19,292 | |
Target 2035 Composite Index | 14.99 | 5.37 | 7.14 | 19,922 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 42.8% |
Vanguard Total International Stock Index Fund Investor Shares | 27.7 |
Vanguard Total Bond Market II Index Fund Investor Shares | 20.5 |
Vanguard Total International Bond II Index Fund Institutional Shares | 9.0 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.9%) | ||||||
U.S. Stock Fund (42.3%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 179,867,882 | 34,890,772 | ||||
International Stock Fund (27.4%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,312,469,991 | 22,548,234 | ||||
U.S. Bond Fund (20.3%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,843,138,208 | 16,717,264 | |||
International Bond Fund (8.9%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 284,136,589 | 7,302,310 | |||
Total Investment Companies (Cost $66,231,643) | 81,458,580 | |||||
Temporary Cash Investments (1.1%) | ||||||
Money Market Fund (1.1%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $912,011) | 9,122,748 | 912,183 | |||
Total Investments (100.0%) (Cost $67,143,654) | 82,370,763 | |||||
Other Assets and Liabilities—Net (0.0%) | (6,190) | |||||
Net Assets (100%) | 82,364,573 |
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 2023 | 4,970 | 537,070 | (10,688) |
E-mini S&P 500 Index | December 2023 | 1,850 | 400,109 | (17,175) |
(27,863) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $67,143,654) | 82,370,763 |
Cash Collateral Pledged—Futures Contracts | 30,665 |
Receivables for Accrued Income | 61,522 |
Receivables for Capital Shares Issued | 104,523 |
Total Assets | 82,567,473 |
Liabilities | |
Payables for Investment Securities Purchased | 111,995 |
Payables for Capital Shares Redeemed | 90,805 |
Variation Margin Payable—Futures Contracts | 100 |
Total Liabilities | 202,900 |
Net Assets | 82,364,573 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 66,026,416 |
Total Distributable Earnings (Loss) | 16,338,157 |
Net Assets | 82,364,573 |
Net Assets | |
Applicable to 3,991,444,796 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 82,364,573 |
Net Asset Value Per Share | $20.64 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,835,942 |
Net Investment Income—Note B | 1,835,942 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 3 |
Affiliated Funds Sold1 | 796,562 |
Futures Contracts | (15,093) |
Realized Net Gain (Loss) | 781,472 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 7,524,350 |
Futures Contracts | 65,798 |
Change in Unrealized Appreciation (Depreciation) | 7,590,148 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 10,207,562 |
1 | Includes $889,568,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,835,942 | 1,332,204 |
Realized Net Gain (Loss) | 781,472 | 1,417,350 |
Change in Unrealized Appreciation (Depreciation) | 7,590,148 | (18,674,595) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 10,207,562 | (15,925,041) |
Distributions | ||
Total Distributions | (1,976,113) | (6,285,063) |
Capital Share Transactions | ||
Issued | 10,669,339 | 9,880,784 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2035 Fund—Note G | — | 47,857,993 |
Issued in Lieu of Cash Distributions | 1,946,584 | 6,115,959 |
Redeemed | (8,732,751) | (9,216,559) |
Net Increase (Decrease) from Capital Share Transactions | 3,883,172 | 54,638,177 |
Total Increase (Decrease) | 12,114,621 | 32,428,073 |
Net Assets | ||
Beginning of Period | 70,249,952 | 37,821,879 |
End of Period | 82,364,573 | 70,249,952 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $18.50 | $27.25 | $23.16 | $21.60 | $21.46 |
Investment Operations | |||||
Net Investment Income1 | .471 | .455 | .430 | .470 | .500 |
Capital Gain Distributions Received1 | .0002 | .014 | .046 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 2.192 | (4.566) | 4.244 | 1.614 | .146 |
Total from Investment Operations | 2.663 | (4.097) | 4.720 | 2.084 | .646 |
Distributions | |||||
Dividends from Net Investment Income | (.402) | (.559) | (.409) | (.524) | (.464) |
Distributions from Realized Capital Gains | (.121) | (4.094) | (.221) | — | (.042) |
Total Distributions | (.523) | (4.653) | (.630) | (.524) | (.506) |
Net Asset Value, End of Period | $20.64 | $18.50 | $27.25 | $23.16 | $21.60 |
Total Return3 | 14.61% | -18.87% | 20.60% | 9.71% | 3.37% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $82,365 | $70,250 | $37,822 | $40,597 | $37,126 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.14% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.30% | 2.08% | 1.64% | 2.15% | 2.42% |
Portfolio Turnover Rate | 1%5 | 9%5 | 6% | 18% | 7% |
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 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. |
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 | 889,568 |
Total Distributable Earnings (Loss) | (889,568) |
Amount ($000) | |
Undistributed Ordinary Income | 1,284,109 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 15,120,498 |
Capital Loss Carryforwards | (66,450) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 16,338,157 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,518,471 | 772,223 |
Long-Term Capital Gains | 457,642 | 5,512,840 |
Total | 1,976,113 | 6,285,063 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 67,250,265 |
Gross Unrealized Appreciation | 19,481,758 |
Gross Unrealized Depreciation | (4,361,260) |
Net Unrealized Appreciation (Depreciation) | 15,120,498 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 521,644 | 448,756 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2035 Fund—Note G | — | 2,113,869 |
Issued in Lieu of Cash Distributions | 101,437 | 256,327 |
Redeemed | (429,813) | (408,647) |
Net Increase (Decrease) in Shares Outstanding | 193,268 | 2,410,305 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 947,200 | NA2 | NA2 | (15) | 193 | 45,878 | 3 | 912,183 |
Vanguard Total Bond Market II Index Fund | 14,118,599 | 3,550,686 | 520,859 | 5,603 | (436,765) | 460,047 | — | 16,717,264 |
Vanguard Total International Bond II Index Fund | 6,157,142 | 1,316,195 | 190,393 | (4,088) | 23,454 | 107,981 | — | 7,302,310 |
Vanguard Total International Stock Index Fund | 19,557,677 | 769,060 | 1,072,412 | 53,425 | 3,240,484 | 674,734 | — | 22,548,234 |
Vanguard Total Stock Market Index Fund | 29,457,311 | 1,136,301 | 1,141,461 | 741,637 | 4,696,984 | 547,302 | — | 34,890,772 |
Total | 70,237,929 | 6,772,242 | 2,925,125 | 796,562 | 7,524,350 | 1,835,942 | 3 | 82,370,763 |
1 | Includes $2,191,320,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2040 Fund | 16.15% | 5.37% | 7.26% | $20,149 | |
Target 2040 Composite Index | 16.48 | 5.82 | 7.62 | 20,832 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 47.4% |
Vanguard Total International Stock Index Fund Investor Shares | 30.3 |
Vanguard Total Bond Market II Index Fund Investor Shares | 15.7 |
Vanguard Total International Bond II Index Fund Institutional Shares | 6.6 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.0%) | ||||||
U.S. Stock Fund (46.9%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 174,628,081 | 33,874,355 | ||||
International Stock Fund (30.0%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,259,339,936 | 21,635,460 | ||||
U.S. Bond Fund (15.5%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 1,231,974,586 | 11,174,009 | |||
International Bond Fund (6.6%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 183,927,021 | 4,726,925 | |||
Total Investment Companies (Cost $57,600,510) | 71,410,749 | |||||
Temporary Cash Investments (1.0%) | ||||||
Money Market Fund (1.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $742,384) | 7,425,998 | 742,525 | |||
Total Investments (100.0%) (Cost $58,342,894) | 72,153,274 | |||||
Other Assets and Liabilities—Net (0.0%) | 11,982 | |||||
Net Assets (100%) | 72,165,256 |
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 2023 | 4,329 | 467,802 | (9,310) |
E-mini S&P 500 Index | December 2023 | 1,373 | 296,946 | (12,746) |
(22,056) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $58,342,894) | 72,153,274 |
Cash Collateral Pledged—Futures Contracts | 24,045 |
Receivables for Accrued Income | 41,535 |
Receivables for Capital Shares Issued | 142,832 |
Variation Margin Receivable—Futures Contracts | 56 |
Total Assets | 72,361,742 |
Liabilities | |
Payables for Investment Securities Purchased | 89,390 |
Payables for Capital Shares Redeemed | 107,096 |
Total Liabilities | 196,486 |
Net Assets | 72,165,256 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 57,454,755 |
Total Distributable Earnings (Loss) | 14,710,501 |
Net Assets | 72,165,256 |
Net Assets | |
Applicable to 1,977,077,945 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 72,165,256 |
Net Asset Value Per Share | $36.50 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,580,870 |
Net Investment Income—Note B | 1,580,870 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 2 |
Affiliated Funds Sold1 | 822,053 |
Futures Contracts | (9,396) |
Realized Net Gain (Loss) | 812,659 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 7,266,296 |
Futures Contracts | 58,436 |
Change in Unrealized Appreciation (Depreciation) | 7,324,732 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,718,261 |
1 | Includes $942,728,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,580,870 | 1,122,991 |
Realized Net Gain (Loss) | 812,659 | 1,265,818 |
Change in Unrealized Appreciation (Depreciation) | 7,324,732 | (16,607,438) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,718,261 | (14,218,629) |
Distributions | ||
Total Distributions | (1,648,245) | (5,068,358) |
Capital Share Transactions | ||
Issued | 9,888,244 | 9,029,706 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2040 Fund—Note G | — | 44,528,150 |
Issued in Lieu of Cash Distributions | 1,625,528 | 4,930,722 |
Redeemed | (7,781,857) | (7,921,967) |
Net Increase (Decrease) from Capital Share Transactions | 3,731,915 | 50,566,611 |
Total Increase (Decrease) | 11,801,931 | 31,279,624 |
Net Assets | ||
Beginning of Period | 60,363,325 | 29,083,701 |
End of Period | 72,165,256 | 60,363,325 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $32.25 | $48.29 | $40.07 | $37.27 | $37.26 |
Investment Operations | |||||
Net Investment Income1 | .821 | .797 | .764 | .799 | .850 |
Capital Gain Distributions Received1 | .0002 | .017 | .057 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 4.315 | (8.162) | 8.312 | 2.892 | (.005) |
Total from Investment Operations | 5.136 | (7.348) | 9.133 | 3.691 | .845 |
Distributions | |||||
Dividends from Net Investment Income | (.714) | (1.003) | (.719) | (.891) | (.779) |
Distributions from Realized Capital Gains | (.172) | (7.689) | (.194) | — | (.056) |
Total Distributions | (.886) | (8.692) | (.913) | (.891) | (.835) |
Net Asset Value, End of Period | $36.50 | $32.25 | $48.29 | $40.07 | $37.27 |
Total Return3 | 16.15% | -19.42% | 23.00% | 9.96% | 2.63% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $72,165 | $60,363 | $29,084 | $32,404 | $29,043 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.14% | 0.14% | 0.14% |
Ratio of Net Investment Income to Average Net Assets | 2.27% | 2.08% | 1.66% | 2.12% | 2.38% |
Portfolio Turnover Rate | 1%5 | 7%5 | 5% | 13% | 5% |
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 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. |
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 | 942,728 |
Total Distributable Earnings (Loss) | (942,728) |
Amount ($000) | |
Undistributed Ordinary Income | 1,093,159 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 13,683,190 |
Capital Loss Carryforwards | (65,848) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 14,710,501 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,327,883 | 662,780 |
Long-Term Capital Gains | 320,362 | 4,405,578 |
Total | 1,648,245 | 5,068,358 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 58,470,084 |
Gross Unrealized Appreciation | 16,853,888 |
Gross Unrealized Depreciation | (3,170,698) |
Net Unrealized Appreciation (Depreciation) | 13,683,190 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 274,531 | 233,751 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2040 Fund—Note G | — | 1,117,955 |
Issued in Lieu of Cash Distributions | 48,264 | 117,203 |
Redeemed | (217,354) | (199,582) |
Net Increase (Decrease) in Shares Outstanding | 105,441 | 1,269,327 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 814,453 | NA2 | NA2 | (13) | 163 | 40,063 | 2 | 742,525 |
Vanguard Total Bond Market II Index Fund | 8,996,887 | 2,946,089 | 471,569 | (9,144) | (288,254) | 300,167 | — | 11,174,009 |
Vanguard Total International Bond II Index Fund | 3,880,069 | 974,289 | 138,021 | (312) | 10,900 | 69,252 | — | 4,726,925 |
Vanguard Total International Stock Index Fund | 18,622,532 | 1,103,089 | 1,238,027 | 41,030 | 3,106,836 | 644,700 | — | 21,635,460 |
Vanguard Total Stock Market Index Fund | 28,037,857 | 1,750,988 | 1,141,633 | 790,492 | 4,436,651 | 526,688 | — | 33,874,355 |
Total | 60,351,798 | 6,774,455 | 2,989,250 | 822,053 | 7,266,296 | 1,580,870 | 2 | 72,153,274 |
1 | Includes $2,141,280,000 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. |
Philadelphia, Pennsylvania
November 16, 2023
Fund | Percentage |
Target Retirement Income Fund | 9.2% |
Target Retirement 2020 Fund | 14.1 |
Target Retirement 2025 Fund | 19.4 |
Target Retirement 2030 Fund | 23.2 |
Target Retirement 2035 Fund | 26.2 |
Target Retirement 2040 Fund | 29.2 |
Fund | ($000) |
Target Retirement Income Fund | 213,744 |
Target Retirement 2020 Fund | 316,340 |
Target Retirement 2025 Fund | 710,373 |
Target Retirement 2030 Fund | 857,412 |
Target Retirement 2035 Fund | 936,097 |
Target Retirement 2040 Fund | 889,481 |
Fund | ($000) |
Target Retirement Income Fund | 371,256 |
Target Retirement 2020 Fund | 300,323 |
Target Retirement 2025 Fund | 323,511 |
Target Retirement 2030 Fund | 209,789 |
Target Retirement 2035 Fund | 170,723 |
Target Retirement 2040 Fund | 114,956 |
Fund | ($000) |
Target Retirement Income Fund | 155,932 |
Target Retirement 2020 Fund | 980,584 |
Target Retirement 2025 Fund | 527,364 |
Target Retirement 2030 Fund | 349,336 |
Target Retirement 2035 Fund | 457,642 |
Target Retirement 2040 Fund | 320,362 |
Fund | Percentage |
Target Retirement Income Fund | 67.6% |
Target Retirement 2020 Fund | 62.5 |
Target Retirement 2025 Fund | 54.2 |
Target Retirement 2030 Fund | 45.8 |
Target Retirement 2035 Fund | 37.4 |
Target Retirement 2040 Fund | 28.5 |
Fund | Foreign Source Income ($000) | Foreign Taxes Paid ($000) |
Target Retirement Income Fund | 234,206 | 12,612 |
Target Retirement 2020 Fund | 307,653 | 18,630 |
Target Retirement 2025 Fund | 663,130 | 43,359 |
Target Retirement 2030 Fund | 791,987 | 53,914 |
Target Retirement 2035 Fund | 835,979 | 59,128 |
Target Retirement 2040 Fund | 764,596 | 55,866 |
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Vanguard Target Retirement 2070 Fund |
1 | |
2 | |
4 | |
17 | |
30 | |
43 | |
56 | |
69 |
• | For the 12 months ended September 30, 2023, returns for the six Vanguard Target Retirement Funds covered in this report ranged from 17.67% for the 2045 Fund to 18.49% for the 2060 and 2070 Funds. (The funds with target dates of 2020 through 2040, as well as the Income Fund, are covered in a separate report.) |
• | Early in the period, inflation began to ease off multidecade highs amid aggressive interest rate hikes by the Federal Reserve and other major central banks. Unexpected resilience in labor markets and consumer spending helped dial back expectations of a sustained U.S. or global recession, but the prospect of higher rates for longer weighed on market sentiment toward the close of the period. |
• | 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 and 2070 Funds—the funds’ average annual returns ranged from 7.02% for the 2065 Fund to 7.67% for the 2050 Fund. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 21.19% | 9.53% | 9.63% |
Russell 2000 Index (Small-caps) | 8.93 | 7.16 | 2.40 |
Russell 3000 Index (Broad U.S. market) | 20.46 | 9.38 | 9.14 |
FTSE All-World ex US Index (International) | 20.67 | 4.23 | 3.00 |
Bonds | |||
Bloomberg U.S. Aggregate Float Adjusted Index (Broad taxable market) | 0.78% | -5.18% | 0.18% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.66 | -2.30 | 1.05 |
FTSE Three-Month U.S. Treasury Bill Index | 4.71 | 1.78 | 1.74 |
CPI | |||
Consumer Price Index | 3.70% | 5.75% | 4.04% |
• | 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, 2023 | |||
Beginning Account Value 3/31/2023 | Ending Account Value 9/30/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Target Retirement 2045 Fund | $1,000.00 | $1,014.80 | $0.40 |
Target Retirement 2050 Fund | $1,000.00 | $1,017.10 | $0.40 |
Target Retirement 2055 Fund | $1,000.00 | $1,017.10 | $0.40 |
Target Retirement 2060 Fund | $1,000.00 | $1,017.10 | $0.40 |
Target Retirement 2065 Fund | $1,000.00 | $1,017.00 | $0.40 |
Target Retirement 2070 Fund | $1,000.00 | $1,017.30 | $0.40 |
Based on Hypothetical 5% Yearly Return | |||
Target Retirement 2045 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2050 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2055 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2060 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2065 Fund | $1,000.00 | $1,024.67 | $0.41 |
Target Retirement 2070 Fund | $1,000.00 | $1,024.67 | $0.41 |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2045 Fund | 17.67% | 5.87% | 7.61% | $20,825 | |
Target 2045 Composite Index | 17.97 | 6.30 | 7.96 | 21,517 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 51.9% |
Vanguard Total International Stock Index Fund Investor Shares | 33.5 |
Vanguard Total Bond Market II Index Fund Investor Shares | 10.4 |
Vanguard Total International Bond II Index Fund Institutional Shares | 4.2 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.8%) | ||||||
U.S. Stock Fund (51.2%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 181,679,239 | 35,242,139 | ||||
International Stock Fund (33.1%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,324,437,124 | 22,753,830 | ||||
U.S. Bond Fund (10.3%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 779,939,769 | 7,074,053 | |||
International Bond Fund (4.2%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 111,739,390 | 2,871,702 | |||
Total Investment Companies (Cost $53,089,786) | 67,941,724 | |||||
Temporary Cash Investments (1.2%) | ||||||
Money Market Fund (1.2%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $837,829) | 8,380,683 | 837,984 | |||
Total Investments (100.0%) (Cost $53,927,615) | 68,779,708 | |||||
Other Assets and Liabilities—Net (0.0%) | 1,396 | |||||
Net Assets (100%) | 68,781,104 |
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 2023 | 4,184 | 452,133 | (8,963) |
E-mini S&P 500 Index | December 2023 | 1,876 | 405,732 | (17,416) |
(26,379) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $53,927,615) | 68,779,708 |
Cash Collateral Pledged—Futures Contracts | 29,380 |
Receivables for Accrued Income | 27,898 |
Receivables for Capital Shares Issued | 96,489 |
Total Assets | 68,933,475 |
Liabilities | |
Payables for Investment Securities Purchased | 66,134 |
Payables for Capital Shares Redeemed | 85,961 |
Variation Margin Payable—Futures Contracts | 276 |
Total Liabilities | 152,371 |
Net Assets | 68,781,104 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 53,102,567 |
Total Distributable Earnings (Loss) | 15,678,537 |
Net Assets | 68,781,104 |
Net Assets | |
Applicable to 2,788,776,818 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 68,781,104 |
Net Asset Value Per Share | $24.66 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,474,423 |
Net Investment Income—Note B | 1,474,423 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 2 |
Affiliated Funds Sold1 | 909,173 |
Futures Contracts | (10,880) |
Realized Net Gain (Loss) | 898,295 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 7,451,007 |
Futures Contracts | 48,418 |
Change in Unrealized Appreciation (Depreciation) | 7,499,425 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,872,143 |
1 | Includes $1,018,913,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,474,423 | 1,059,647 |
Realized Net Gain (Loss) | 898,295 | 1,194,719 |
Change in Unrealized Appreciation (Depreciation) | 7,499,425 | (15,908,582) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 9,872,143 | (13,654,216) |
Distributions | ||
Total Distributions | (1,622,229) | (3,956,957) |
Capital Share Transactions | ||
Issued | 9,893,868 | 8,673,949 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2045 Fund—Note G | — | 38,974,576 |
Issued in Lieu of Cash Distributions | 1,597,470 | 3,853,831 |
Redeemed | (6,881,466) | (6,887,917) |
Net Increase (Decrease) from Capital Share Transactions | 4,609,872 | 44,614,439 |
Total Increase (Decrease) | 12,859,786 | 27,003,266 |
Net Assets | ||
Beginning of Period | 55,921,318 | 28,918,052 |
End of Period | 68,781,104 | 55,921,318 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $21.54 | $31.04 | $25.22 | $23.38 | $23.49 |
Investment Operations | |||||
Net Investment Income1 | .548 | .536 | .495 | .492 | .527 |
Capital Gain Distributions Received1 | .0002 | .007 | .020 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 3.200 | (5.672) | 5.840 | 1.900 | (.128) |
Total from Investment Operations | 3.748 | (5.129) | 6.355 | 2.392 | .399 |
Distributions | |||||
Dividends from Net Investment Income | (.486) | (.629) | (.452) | (.552) | (.483) |
Distributions from Realized Capital Gains | (.142) | (3.742) | (.083) | — | (.026) |
Total Distributions | (.628) | (4.371) | (.535) | (.552) | (.509) |
Net Asset Value, End of Period | $24.66 | $21.54 | $31.04 | $25.22 | $23.38 |
Total Return3 | 17.67% | -19.93% | 25.42% | 10.27% | 2.06% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $68,781 | $55,921 | $28,918 | $30,205 | $26,670 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.25% | 2.09% | 1.68% | 2.08% | 2.35% |
Portfolio Turnover Rate | 1%5 | 5%5 | 4% | 9% | 4% |
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 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. |
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 | 1,018,913 |
Total Distributable Earnings (Loss) | (1,018,913) |
Amount ($000) | |
Undistributed Ordinary Income | 1,009,218 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 14,762,629 |
Capital Loss Carryforwards | (93,310) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 15,678,537 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,254,390 | 650,046 |
Long-Term Capital Gains | 367,839 | 3,306,911 |
Total | 1,622,229 | 3,956,957 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 54,017,079 |
Gross Unrealized Appreciation | 17,013,574 |
Gross Unrealized Depreciation | (2,250,945) |
Net Unrealized Appreciation (Depreciation) | 14,762,629 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 407,526 | 336,528 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2045 Fund—Note G | — | 1,452,108 |
Issued in Lieu of Cash Distributions | 70,747 | 135,603 |
Redeemed | (285,799) | (259,692) |
Net Increase (Decrease) in Shares Outstanding | 192,474 | 1,664,547 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 760,294 | NA2 | NA2 | (7) | 166 | 39,119 | 2 | 837,984 |
Vanguard Total Bond Market II Index Fund | 5,283,074 | 2,347,463 | 359,203 | (5,147) | (192,134) | 185,142 | — | 7,074,053 |
Vanguard Total International Bond II Index Fund | 2,357,925 | 605,423 | 97,156 | (1,251) | 6,761 | 41,720 | — | 2,871,702 |
Vanguard Total International Stock Index Fund | 18,989,256 | 1,952,163 | 1,385,851 | 47,270 | 3,150,992 | 664,601 | — | 22,753,830 |
Vanguard Total Stock Market Index Fund | 28,525,761 | 2,483,778 | 1,120,930 | 868,308 | 4,485,222 | 543,841 | — | 35,242,139 |
Total | 55,916,310 | 7,388,827 | 2,963,140 | 909,173 | 7,451,007 | 1,474,423 | 2 | 68,779,708 |
1 | Includes $2,127,610,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2050 Fund | 18.48% | 5.99% | 7.67% | $20,938 | |
Target 2050 Composite Index | 18.74 | 6.43 | 8.03 | 21,644 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.9% |
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 | 2.8 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.9%) | ||||||
U.S. Stock Fund (53.3%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 155,645,652 | 30,192,144 | ||||
International Stock Fund (35.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 1,182,569,637 | 20,316,546 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 438,287,113 | 3,975,264 | |||
International Bond Fund (2.7%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 60,424,014 | 1,552,897 | |||
Total Investment Companies (Cost $45,642,733) | 56,036,851 | |||||
Temporary Cash Investments (1.1%) | ||||||
Money Market Fund (1.1%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $594,998) | 5,951,877 | 595,128 | |||
Total Investments (100.0%) (Cost $46,237,731) | 56,631,979 | |||||
Other Assets and Liabilities—Net (0.0%) | 4,937 | |||||
Net Assets (100%) | 56,636,916 |
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 2023 | 2,379 | 257,081 | (5,077) |
E-mini S&P 500 Index | December 2023 | 1,664 | 359,881 | (15,448) |
(20,525) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $46,237,731) | 56,631,979 |
Cash Collateral Pledged—Futures Contracts | 23,403 |
Receivables for Accrued Income | 16,191 |
Receivables for Capital Shares Issued | 134,385 |
Variation Margin Receivable—Futures Contracts | 2,143 |
Total Assets | 56,808,101 |
Liabilities | |
Payables for Investment Securities Purchased | 58,264 |
Payables for Capital Shares Redeemed | 112,921 |
Total Liabilities | 171,185 |
Net Assets | 56,636,916 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 45,605,073 |
Total Distributable Earnings (Loss) | 11,031,843 |
Net Assets | 56,636,916 |
Net Assets | |
Applicable to 1,381,399,207 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 56,636,916 |
Net Asset Value Per Share | $41.00 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 1,192,157 |
Net Investment Income—Note B | 1,192,157 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 1 |
Affiliated Funds Sold1 | 852,053 |
Futures Contracts | (4,422) |
Realized Net Gain (Loss) | 847,632 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 6,182,788 |
Futures Contracts | 38,681 |
Change in Unrealized Appreciation (Depreciation) | 6,221,469 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,261,258 |
1 | Includes $984,952,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 1,192,157 | 834,943 |
Realized Net Gain (Loss) | 847,632 | 731,107 |
Change in Unrealized Appreciation (Depreciation) | 6,221,469 | (12,598,775) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,261,258 | (11,032,725) |
Distributions | ||
Total Distributions | (1,134,127) | (2,514,988) |
Capital Share Transactions | ||
Issued | 9,932,027 | 8,252,573 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2050 Fund—Note G | — | 31,731,807 |
Issued in Lieu of Cash Distributions | 1,115,771 | 2,439,402 |
Redeemed | (6,274,244) | (5,723,074) |
Net Increase (Decrease) from Capital Share Transactions | 4,773,554 | 36,700,708 |
Total Increase (Decrease) | 11,900,685 | 23,152,995 |
Net Assets | ||
Beginning of Period | 44,736,231 | 21,583,236 |
End of Period | 56,636,916 | 44,736,231 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $35.44 | $50.09 | $40.60 | $37.63 | $37.80 |
Investment Operations | |||||
Net Investment Income1 | .904 | .884 | .798 | .793 | .851 |
Capital Gain Distributions Received1 | .0002 | .009 | .031 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 5.557 | (9.524) | 9.498 | 3.053 | (.204) |
Total from Investment Operations | 6.461 | (8.631) | 10.327 | 3.846 | .647 |
Distributions | |||||
Dividends from Net Investment Income | (.805) | (1.026) | (.741) | (.876) | (.789) |
Distributions from Realized Capital Gains | (.096) | (4.993) | (.096) | — | (.028) |
Total Distributions | (.901) | (6.019) | (.837) | (.876) | (.817) |
Net Asset Value, End of Period | $41.00 | $35.44 | $50.09 | $40.60 | $37.63 |
Total Return3 | 18.48% | -20.18% | 25.65% | 10.26% | 2.07% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $56,637 | $44,736 | $21,583 | $22,979 | $19,470 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.24% | 2.10% | 1.68% | 2.08% | 2.36% |
Portfolio Turnover Rate | 2%5 | 4%5 | 4% | 9% | 3% |
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 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. |
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 | 984,952 |
Total Distributable Earnings (Loss) | (984,952) |
Amount ($000) | |
Undistributed Ordinary Income | 814,535 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 10,276,162 |
Capital Loss Carryforwards | (58,854) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 11,031,843 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 1,012,798 | 495,805 |
Long-Term Capital Gains | 121,329 | 2,019,183 |
Total | 1,134,127 | 2,514,988 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 46,355,817 |
Gross Unrealized Appreciation | 12,026,391 |
Gross Unrealized Depreciation | (1,750,229) |
Net Unrealized Appreciation (Depreciation) | 10,276,162 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 246,763 | 194,700 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2050 Fund—Note G | — | 715,647 |
Issued in Lieu of Cash Distributions | 29,841 | 51,935 |
Redeemed | (157,371) | (131,023) |
Net Increase (Decrease) in Shares Outstanding | 119,233 | 831,259 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 595,970 | NA2 | NA2 | 6 | 118 | 29,653 | 1 | 595,128 |
Vanguard Total Bond Market II Index Fund | 3,147,317 | 1,302,979 | 364,418 | (24,307) | (86,307) | 106,198 | — | 3,975,264 |
Vanguard Total International Bond II Index Fund | 1,437,305 | 216,677 | 106,460 | (9,706) | 15,081 | 23,515 | — | 1,552,897 |
Vanguard Total International Stock Index Fund | 15,922,776 | 3,032,231 | 1,278,576 | 40,748 | 2,599,367 | 570,468 | — | 20,316,546 |
Vanguard Total Stock Market Index Fund | 23,619,117 | 3,183,023 | 1,109,837 | 845,312 | 3,654,529 | 462,323 | — | 30,192,144 |
Total | 44,722,485 | 7,734,910 | 2,859,291 | 852,053 | 6,182,788 | 1,192,157 | 1 | 56,631,979 |
1 | Includes $2,048,670,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2055 Fund | 18.48% | 5.99% | 7.65% | $20,902 | |
Target 2055 Composite Index | 18.74 | 6.43 | 8.03 | 21,644 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.8% |
Vanguard Total International Stock Index Fund Investor Shares | 36.4 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.1 |
Vanguard Total International Bond II Index Fund Institutional Shares | 2.7 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.0%) | ||||||
U.S. Stock Fund (53.2%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 100,863,031 | 19,565,411 | ||||
International Stock Fund (36.1%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 771,124,981 | 13,247,927 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 284,682,098 | 2,582,067 | |||
International Bond Fund (2.7%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 38,999,621 | 1,002,290 | |||
Total Investment Companies (Cost $31,858,562) | 36,397,695 | |||||
Temporary Cash Investments (1.0%) | ||||||
Money Market Fund (1.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $366,231) | 3,663,561 | 366,319 | |||
Total Investments (100.0%) (Cost $32,224,793) | 36,764,014 | |||||
Other Assets and Liabilities—Net (0.0%) | 812 | |||||
Net Assets (100%) | 36,764,826 |
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 2023 | 1,342 | 145,020 | (2,874) |
E-mini S&P 500 Index | December 2023 | 1,061 | 229,468 | (9,850) |
(12,724) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $32,224,793) | 36,764,014 |
Cash Collateral Pledged—Futures Contracts | 14,569 |
Receivables for Investment Securities Sold | 28,861 |
Receivables for Accrued Income | 10,438 |
Receivables for Capital Shares Issued | 83,791 |
Variation Margin Receivable—Futures Contracts | 1,285 |
Total Assets | 36,902,958 |
Liabilities | |
Payables for Investment Securities Purchased | 10,441 |
Payables for Capital Shares Redeemed | 127,691 |
Total Liabilities | 138,132 |
Net Assets | 36,764,826 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 31,786,043 |
Total Distributable Earnings (Loss) | 4,978,783 |
Net Assets | 36,764,826 |
Net Assets | |
Applicable to 803,842,872 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 36,764,826 |
Net Asset Value Per Share | $45.74 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 757,392 |
Net Investment Income—Note B | 757,392 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 1 |
Affiliated Funds Sold1 | 505,352 |
Futures Contracts | (2,998) |
Realized Net Gain (Loss) | 502,355 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 3,846,822 |
Futures Contracts | 23,883 |
Change in Unrealized Appreciation (Depreciation) | 3,870,705 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,130,452 |
1 | Includes $561,890,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 757,392 | 502,651 |
Realized Net Gain (Loss) | 502,355 | 336,184 |
Change in Unrealized Appreciation (Depreciation) | 3,870,705 | (7,551,022) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,130,452 | (6,712,187) |
Distributions | ||
Total Distributions | (648,927) | (1,181,452) |
Capital Share Transactions | ||
Issued | 8,314,898 | 6,339,068 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2055 Fund—Note G | — | 19,001,359 |
Issued in Lieu of Cash Distributions | 638,183 | 1,145,310 |
Redeemed | (4,239,814) | (3,538,531) |
Net Increase (Decrease) from Capital Share Transactions | 4,713,267 | 22,947,206 |
Total Increase (Decrease) | 9,194,792 | 15,053,567 |
Net Assets | ||
Beginning of Period | 27,570,034 | 12,516,467 |
End of Period | 36,764,826 | 27,570,034 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $39.46 | $54.38 | $44.08 | $40.84 | $40.95 |
Investment Operations | |||||
Net Investment Income1 | 1.011 | .981 | .868 | .862 | .929 |
Capital Gain Distributions Received1 | .0002 | .010 | .034 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 6.192 | (10.672) | 10.295 | 3.307 | (.209) |
Total from Investment Operations | 7.203 | (9.681) | 11.197 | 4.169 | .720 |
Distributions | |||||
Dividends from Net Investment Income | (.885) | (1.099) | (.791) | (.929) | (.830) |
Distributions from Realized Capital Gains | (.038) | (4.140) | (.106) | — | — |
Total Distributions | (.923) | (5.239) | (.897) | (.929) | (.830) |
Net Asset Value, End of Period | $45.74 | $39.46 | $54.38 | $44.08 | $40.84 |
Total Return3 | 18.48% | -20.17% | 25.61% | 10.25% | 2.09% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $36,765 | $27,570 | $12,516 | $12,901 | $10,202 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.25% | 2.10% | 1.68% | 2.09% | 2.37% |
Portfolio Turnover Rate | 1%5 | 4%5 | 6% | 8% | 3% |
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 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. |
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 | 561,890 |
Total Distributable Earnings (Loss) | (561,890) |
Amount ($000) | |
Undistributed Ordinary Income | 522,967 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 4,474,356 |
Capital Loss Carryforwards | (18,540) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 4,978,783 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 622,443 | 290,151 |
Long-Term Capital Gains | 26,484 | 891,301 |
Total | 648,927 | 1,181,452 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 32,289,658 |
Gross Unrealized Appreciation | 5,737,166 |
Gross Unrealized Depreciation | (1,262,810) |
Net Unrealized Appreciation (Depreciation) | 4,474,356 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 185,243 | 135,178 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2055 Fund—Note G | — | 384,955 |
Issued in Lieu of Cash Distributions | 15,300 | 21,903 |
Redeemed | (95,370) | (73,546) |
Net Increase (Decrease) in Shares Outstanding | 105,173 | 468,490 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 374,454 | NA2 | NA2 | 7 | 69 | 18,498 | 1 | 366,319 |
Vanguard Total Bond Market II Index Fund | 1,931,971 | 957,179 | 232,539 | (15,347) | (59,197) | 67,638 | — | 2,582,067 |
Vanguard Total International Bond II Index Fund | 872,382 | 184,396 | 56,930 | (3,223) | 5,665 | 14,903 | — | 1,002,290 |
Vanguard Total International Stock Index Fund | 9,834,856 | 2,532,247 | 730,422 | 46,671 | 1,564,575 | 363,183 | — | 13,247,927 |
Vanguard Total Stock Market Index Fund | 14,550,078 | 2,963,384 | 761,005 | 477,244 | 2,335,710 | 293,170 | — | 19,565,411 |
Total | 27,563,741 | 6,637,206 | 1,780,896 | 505,352 | 3,846,822 | 757,392 | 1 | 36,764,014 |
1 | Includes $1,397,660,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Target Retirement 2060 Fund | 18.49% | 5.98% | 7.65% | $20,902 | |
Target 2060 Composite Index | 18.74 | 6.43 | 8.03 | 21,644 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 11.37 | 29,352 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.9% |
Vanguard Total International Stock Index Fund Investor Shares | 36.4 |
Vanguard Total Bond Market II Index Fund Investor Shares | 7.0 |
Vanguard Total International Bond II Index Fund Institutional Shares | 2.7 |
Shares | Market Value• ($000) | |||||
Investment Companies (99.0%) | ||||||
U.S. Stock Fund (53.3%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 54,122,463 | 10,498,675 | ||||
International Stock Fund (36.0%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 412,812,488 | 7,092,119 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 151,216,539 | 1,371,534 | |||
International Bond Fund (2.7%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 20,791,648 | 534,345 | |||
Total Investment Companies (Cost $17,766,026) | 19,496,673 | |||||
Temporary Cash Investments (1.0%) | ||||||
Money Market Fund (1.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $201,719) | 2,017,856 | 201,765 | |||
Total Investments (100.0%) (Cost $17,967,745) | 19,698,438 | |||||
Other Assets and Liabilities—Net (0.0%) | (1,164) | |||||
Net Assets (100%) | 19,697,274 |
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 2023 | 768 | 82,992 | (1,652) |
E-mini S&P 500 Index | December 2023 | 567 | 122,628 | (5,264) |
(6,916) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $17,967,745) | 19,698,438 |
Cash Collateral Pledged—Futures Contracts | 7,895 |
Receivables for Investment Securities Sold | 19,546 |
Receivables for Accrued Income | 5,575 |
Receivables for Capital Shares Issued | 57,262 |
Variation Margin Receivable—Futures Contracts | 704 |
Total Assets | 19,789,420 |
Liabilities | |
Payables for Investment Securities Purchased | 5,579 |
Payables for Capital Shares Redeemed | 86,567 |
Total Liabilities | 92,146 |
Net Assets | 19,697,274 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 17,729,261 |
Total Distributable Earnings (Loss) | 1,968,013 |
Net Assets | 19,697,274 |
Net Assets | |
Applicable to 467,658,441 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 19,697,274 |
Net Asset Value Per Share | $42.12 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 393,439 |
Net Investment Income—Note B | 393,439 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 1 |
Affiliated Funds Sold1 | 187,789 |
Futures Contracts | 733 |
Realized Net Gain (Loss) | 188,523 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 1,984,427 |
Futures Contracts | 11,073 |
Change in Unrealized Appreciation (Depreciation) | 1,995,500 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,577,462 |
1 | Includes $205,555,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 393,439 | 249,498 |
Realized Net Gain (Loss) | 188,523 | 135,724 |
Change in Unrealized Appreciation (Depreciation) | 1,995,500 | (3,659,743) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,577,462 | (3,274,521) |
Distributions | ||
Total Distributions | (313,855) | (376,437) |
Capital Share Transactions | ||
Issued | 5,725,418 | 4,239,542 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2060 Fund—Note G | — | 7,948,750 |
Issued in Lieu of Cash Distributions | 307,570 | 363,769 |
Redeemed | (2,278,877) | (1,879,595) |
Net Increase (Decrease) from Capital Share Transactions | 3,754,111 | 10,672,466 |
Total Increase (Decrease) | 6,017,718 | 7,021,508 |
Net Assets | ||
Beginning of Period | 13,679,556 | 6,658,048 |
End of Period | 19,697,274 | 13,679,556 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $36.30 | $48.04 | $38.95 | $36.07 | $36.16 |
Investment Operations | |||||
Net Investment Income1 | .936 | .903 | .773 | .762 | .822 |
Capital Gain Distributions Received1 | .0002 | .009 | .029 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 5.697 | (9.930) | 9.085 | 2.922 | (.192) |
Total from Investment Operations | 6.633 | (9.018) | 9.887 | 3.684 | .630 |
Distributions | |||||
Dividends from Net Investment Income | (.813) | (.936) | (.684) | (.804) | (.717) |
Distributions from Realized Capital Gains | — | (1.786) | (.113) | — | (.003) |
Total Distributions | (.813) | (2.722) | (.797) | (.804) | (.720) |
Net Asset Value, End of Period | $42.12 | $36.30 | $48.04 | $38.95 | $36.07 |
Total Return3 | 18.49% | -20.16% | 25.60% | 10.25% | 2.07% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $19,697 | $13,680 | $6,658 | $6,027 | $4,359 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.26% | 2.10% | 1.69% | 2.09% | 2.37% |
Portfolio Turnover Rate | 1%5 | 3%5 | 8% | 6% | 2% |
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 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. |
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 | 205,555 |
Total Distributable Earnings (Loss) | (205,555) |
Amount ($000) | |
Undistributed Ordinary Income | 275,329 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 1,712,480 |
Capital Loss Carryforwards | (19,796) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 1,968,013 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 313,855 | 175,370 |
Long-Term Capital Gains | — | 201,067 |
Total | 313,855 | 376,437 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 17,985,958 |
Gross Unrealized Appreciation | 2,424,254 |
Gross Unrealized Depreciation | (711,774) |
Net Unrealized Appreciation (Depreciation) | 1,712,480 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 138,419 | 98,649 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2060 Fund—Note G | — | 175,083 |
Issued in Lieu of Cash Distributions | 8,008 | 7,561 |
Redeemed | (55,574) | (43,088) |
Net Increase (Decrease) in Shares Outstanding | 90,853 | 238,205 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 180,773 | NA2 | NA2 | 4 | 38 | 9,825 | 1 | 201,765 |
Vanguard Total Bond Market II Index Fund | 951,772 | 565,241 | 104,561 | (5,042) | (35,876) | 34,955 | — | 1,371,534 |
Vanguard Total International Bond II Index Fund | 434,124 | 124,936 | 25,293 | (1,220) | 1,798 | 7,736 | — | 534,345 |
Vanguard Total International Stock Index Fund | 4,891,871 | 1,677,729 | 272,518 | 22,409 | 772,628 | 188,690 | — | 7,092,119 |
Vanguard Total Stock Market Index Fund | 7,207,187 | 2,185,289 | 311,278 | 171,638 | 1,245,839 | 152,233 | — | 10,498,675 |
Total | 13,665,727 | 4,553,195 | 713,650 | 187,789 | 1,984,427 | 393,439 | 1 | 19,698,438 |
1 | Includes $576,440,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | |||||
One Year | Five Years | Since Inception (7/12/2017) | Final Value of a $10,000 Investment | ||
Target Retirement 2065 Fund | 18.47% | 5.97% | 7.02% | $15,246 | |
Target 2065 Composite Index | 18.74 | 6.43 | 7.43 | 15,618 | |
MSCI US Broad Market Index | 20.67 | 9.26 | 10.86 | 18,986 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 53.9% |
Vanguard Total International Stock Index Fund Investor Shares | 36.4 |
Vanguard Total Bond Market II Index Fund Investor Shares | 6.9 |
Vanguard Total International Bond II Index Fund Institutional Shares | 2.8 |
Shares | Market Value• ($000) | |||||
Investment Companies (98.7%) | ||||||
U.S. Stock Fund (53.2%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 14,247,405 | 2,763,712 | ||||
International Stock Fund (35.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 108,536,492 | 1,864,657 | ||||
U.S. Bond Fund (6.9%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 39,292,618 | 356,384 | |||
International Bond Fund (2.7%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 5,501,746 | 141,395 | |||
Total Investment Companies (Cost $5,000,988) | 5,126,148 | |||||
Temporary Cash Investments (1.2%) | ||||||
Money Market Fund (1.2%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $61,333) | 613,505 | 61,345 | |||
Total Investments (99.9%) (Cost $5,062,321) | 5,187,493 | |||||
Other Assets and Liabilities—Net (0.1%) | 3,026 | |||||
Net Assets (100%) | 5,190,519 |
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 2023 | 256 | 27,664 | (551) |
E-mini S&P 500 Index | December 2023 | 153 | 33,090 | (1,420) |
(1,971) |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $5,062,321) | 5,187,493 |
Cash Collateral Pledged—Futures Contracts | 2,230 |
Receivables for Accrued Income | 1,469 |
Receivables for Capital Shares Issued | 18,656 |
Variation Margin Receivable—Futures Contracts | 211 |
Total Assets | 5,210,059 |
Liabilities | |
Payables for Investment Securities Purchased | 8,640 |
Payables for Capital Shares Redeemed | 10,900 |
Total Liabilities | 19,540 |
Net Assets | 5,190,519 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 5,012,426 |
Total Distributable Earnings (Loss) | 178,093 |
Net Assets | 5,190,519 |
Net Assets | |
Applicable to 188,121,674 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 5,190,519 |
Net Asset Value Per Share | $27.59 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 97,583 |
Net Investment Income—Note B | 97,583 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | — |
Affiliated Funds Sold1 | 22,123 |
Futures Contracts | (731) |
Realized Net Gain (Loss) | 21,392 |
Change in Unrealized Appreciation (Depreciation) | |
Affiliated Funds | 481,759 |
Futures Contracts | 2,110 |
Change in Unrealized Appreciation (Depreciation) | 483,869 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 602,844 |
1 | Includes $28,256,000 of net gain (loss) resulting from in-kind redemptions. |
Year Ended September 30, | ||
2023 ($000) | 2022 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 97,583 | 55,399 |
Realized Net Gain (Loss) | 21,392 | 17,341 |
Change in Unrealized Appreciation (Depreciation) | 483,869 | (799,170) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 602,844 | (726,430) |
Distributions | ||
Total Distributions | (70,815) | (30,464) |
Capital Share Transactions | ||
Issued | 2,130,702 | 1,578,131 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2065 Fund—Note G | — | 1,399,373 |
Issued in Lieu of Cash Distributions | 68,514 | 28,723 |
Redeemed | (673,806) | (546,565) |
Net Increase (Decrease) from Capital Share Transactions | 1,525,410 | 2,459,662 |
Total Increase (Decrease) | 2,057,439 | 1,702,768 |
Net Assets | ||
Beginning of Period | 3,133,080 | 1,430,312 |
End of Period | 5,190,519 | 3,133,080 |
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Net Asset Value, Beginning of Period | $23.76 | $30.31 | $24.52 | $22.69 | $22.64 |
Investment Operations | |||||
Net Investment Income1 | .617 | .594 | .500 | .485 | .529 |
Capital Gain Distributions Received1 | .0002 | .005 | .017 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 3.723 | (6.543) | 5.712 | 1.802 | (.116) |
Total from Investment Operations | 4.340 | (5.944) | 6.229 | 2.287 | .413 |
Distributions | |||||
Dividends from Net Investment Income | (.510) | (.535) | (.400) | (.457) | (.363) |
Distributions from Realized Capital Gains | — | (.071) | (.039) | — | .0002 |
Total Distributions | (.510) | (.606) | (.439) | (.457) | (.363) |
Net Asset Value, End of Period | $27.59 | $23.76 | $30.31 | $24.52 | $22.69 |
Total Return3 | 18.47% | -20.10% | 25.59% | 10.11% | 2.09% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $5,191 | $3,133 | $1,430 | $864 | $420 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.09%4 | 0.15% | 0.15% | 0.15% |
Ratio of Net Investment Income to Average Net Assets | 2.27% | 2.13% | 1.72% | 2.11% | 2.42% |
Portfolio Turnover Rate | 1%5 | 2%5 | 5% | 6% | 2% |
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 | 28,256 |
Total Distributable Earnings (Loss) | (28,256) |
Amount ($000) | |
Undistributed Ordinary Income | 69,979 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 115,318 |
Capital Loss Carryforwards | (7,204) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 178,093 |
Year Ended September 30, | ||
2023 Amount ($000) | 2022 Amount ($000) | |
Ordinary Income* | 70,815 | 28,297 |
Long-Term Capital Gains | — | 2,167 |
Total | 70,815 | 30,464 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 5,072,175 |
Gross Unrealized Appreciation | 348,072 |
Gross Unrealized Depreciation | (232,754) |
Net Unrealized Appreciation (Depreciation) | 115,318 |
Year Ended September 30, | ||
2023 Shares (000) | 2022 Shares (000) | |
Issued | 78,495 | 56,194 |
Issued in Connection with Acquisition of Vanguard Institutional Target Retirement 2065 Fund—Note G | — | 47,117 |
Issued in Lieu of Cash Distributions | 2,723 | 913 |
Redeemed | (24,968) | (19,535) |
Net Increase (Decrease) in Shares Outstanding | 56,250 | 84,689 |
Current Period Transactions | ||||||||
Sep. 30, 2022 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, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | 40,909 | NA2 | NA2 | 2 | 8 | 2,536 | — | 61,345 |
Vanguard Total Bond Market II Index Fund | 216,733 | 165,810 | 15,292 | (315) | (10,552) | 8,430 | — | 356,384 |
Vanguard Total International Bond II Index Fund | 99,330 | 47,804 | 5,687 | (252) | 200 | 1,980 | — | 141,395 |
Vanguard Total International Stock Index Fund | 1,120,260 | 616,326 | 50,249 | 4,090 | 174,230 | 46,688 | — | 1,864,657 |
Vanguard Total Stock Market Index Fund | 1,652,773 | 854,417 | 79,949 | 18,598 | 317,873 | 37,949 | — | 2,763,712 |
Total | 3,130,005 | 1,684,357 | 151,177 | 22,123 | 481,759 | 97,583 | — | 5,187,493 |
1 | Includes $111,680,000 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. |
Average Annual Total Returns Periods Ended September 30, 2023 | ||||
One Year | Since Inception (6/28/2022) | Final Value of a $10,000 Investment | ||
Target Retirement 2070 Fund | 18.49% | 7.56% | $10,960 | |
Target 2070 Composite Index | 18.74 | 7.73 | 10,982 | |
MSCI US Broad Market Index | 20.67 | 10.98 | 11,399 |
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 54.0% |
Vanguard Total International Stock Index Fund Investor Shares | 36.0 |
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 (99.8%) | ||||||
U.S. Stock Fund (53.9%) | ||||||
Vanguard Total Stock Market Index Fund Institutional Plus Shares | 874,196 | 169,577 | ||||
International Stock Fund (35.9%) | ||||||
Vanguard Total International Stock Index Fund Investor Shares | 6,583,731 | 113,108 | ||||
U.S. Bond Fund (7.0%) | ||||||
1 | Vanguard Total Bond Market II Index Fund Investor Shares | 2,434,510 | 22,081 | |||
International Bond Fund (3.0%) | ||||||
1 | Vanguard Total International Bond II Index Fund Institutional Shares | 367,099 | 9,434 | |||
Total Investment Companies (Cost $312,458) | 314,200 | |||||
Temporary Cash Investments (0.4%) | ||||||
Money Market Fund (0.4%) | ||||||
1 | Vanguard Market Liquidity Fund, 5.391% (Cost $1,253) | 12,533 | 1,253 | |||
Total Investments (100.2%) (Cost $313,711) | 315,453 | |||||
Other Assets and Liabilities—Net (-0.2%) | (774) | |||||
Net Assets (100%) | 314,679 |
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, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $313,711) | 315,453 |
Receivables for Accrued Income | 76 |
Receivables for Capital Shares Issued | 2,333 |
Total Assets | 317,862 |
Liabilities | |
Due to Custodian | 12 |
Payables for Investment Securities Purchased | 2,909 |
Payables for Capital Shares Redeemed | 262 |
Total Liabilities | 3,183 |
Net Assets | 314,679 |
At September 30, 2023, net assets consisted of: | |
Paid-in Capital | 310,553 |
Total Distributable Earnings (Loss) | 4,126 |
Net Assets | 314,679 |
Net Assets | |
Applicable to 14,486,034 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 314,679 |
Net Asset Value Per Share | $21.72 |
Year Ended September 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 3,677 |
Net Investment Income—Note B | 3,677 |
Realized Net Gain (Loss) | |
Affiliated Funds Sold | (16) |
Futures Contracts | (14) |
Realized Net Gain (Loss) | (30) |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | 4,653 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,300 |
Year Ended September 30, 2023 | June 28, 20221 to September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 3,677 | 134 | |
Realized Net Gain (Loss) | (30) | (771) | |
Change in Unrealized Appreciation (Depreciation) | 4,653 | (2,911) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,300 | (3,548) | |
Distributions | |||
Total Distributions | (626) | — | |
Capital Share Transactions | |||
Issued | 317,437 | 50,855 | |
Issued in Lieu of Cash Distributions | 608 | — | |
Redeemed | (42,943) | (15,404) | |
Net Increase (Decrease) from Capital Share Transactions | 275,102 | 35,451 | |
Total Increase (Decrease) | 282,776 | 31,903 | |
Net Assets | |||
Beginning of Period | 31,903 | — | |
End of Period | 314,679 | 31,903 |
1 | Inception. |
For a Share Outstanding Throughout Each Period | Year Ended September 30, 2023 | June 28, 20221 to September 30, 2022 |
Net Asset Value, Beginning of Period | $18.50 | $20.00 |
Investment Operations | ||
Net Investment Income2 | .523 | .113 |
Capital Gain Distributions Received2 | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | 2.879 | (1.613) |
Total from Investment Operations | 3.402 | (1.500) |
Distributions | ||
Dividends from Net Investment Income | (.182) | — |
Distributions from Realized Capital Gains | — | — |
Total Distributions | (.182) | — |
Net Asset Value, End of Period | $21.72 | $18.50 |
Total Return3 | 18.49% | -7.50% |
Ratios/Supplemental Data | ||
Net Assets, End of Period (Millions) | $315 | $32 |
Ratio of Total Expenses to Average Net Assets | — | — |
Acquired Fund Fees and Expenses | 0.08% | 0.08%4 |
Ratio of Net Investment Income to Average Net Assets | 2.40% | 2.15%4 |
Portfolio Turnover Rate | 2% | 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 | 3,186 |
Undistributed Long-Term Gains | — |
Net Unrealized Gains (Losses) | 955 |
Capital Loss Carryforwards | (15) |
Qualified Late-Year Losses | — |
Other Temporary Differences | — |
Total | 4,126 |
Year Ended September 30, 2023 | Period Ended September 30, 2022 | ||
Amount ($000) | Amount ($000) | ||
Ordinary Income* | 626 | — | |
Long-Term Capital Gains | — | — | |
Total | 626 | — |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 314,498 |
Gross Unrealized Appreciation | 8,315 |
Gross Unrealized Depreciation | (7,360) |
Net Unrealized Appreciation (Depreciation) | 955 |
Year Ended September 30, 2023 | June 28, 20221 to September 30, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 14,713 | 2,487 | |
Issued in Lieu of Cash Distributions | 31 | — | |
Redeemed | (1,983) | (762) | |
Net Increase (Decrease) in Shares Outstanding | 12,761 | 1,725 |
1 | Inception. |
Current Period Transactions | ||||||||
Sep. 30, 2022 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Sep. 30, 2023 Market Value ($000) | |
Vanguard Market Liquidity Fund | — | NA1 | NA1 | — | — | 15 | — | 1,253 |
Vanguard Total Bond Market II Index Fund | 2,243 | 20,905 | 236 | (11) | (820) | 327 | — | 22,081 |
Vanguard Total International Bond II Index Fund | 960 | 8,659 | 67 | (2) | (116) | 84 | — | 9,434 |
Vanguard Total International Stock Index Fund | 11,507 | 103,150 | 1,000 | (10) | (539) | 1,754 | — | 113,108 |
Vanguard Total Stock Market Index Fund | 17,193 | 147,367 | 1,118 | 7 | 6,128 | 1,497 | — | 169,577 |
Total | 31,903 | 280,081 | 2,421 | (16) | 4,653 | 3,677 | — | 315,453 |
1 | 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) The related statement of operations for the year ended September 30, 2023, the statement of changes in net assets and the financial highlights for the year ended September 30, 2023 and for the period June 28, 2022 (inception) through September 30, 2022.
Philadelphia, Pennsylvania
November 16, 2023
Fund | Percentage |
Target Retirement 2045 Fund | 32.3% |
Target Retirement 2050 Fund | 33.9 |
Target Retirement 2055 Fund | 33.8 |
Target Retirement 2060 Fund | 33.8 |
Target Retirement 2065 Fund | 34.0 |
Target Retirement 2070 Fund | 35.5 |
Fund | ($000) |
Target Retirement 2045 Fund | 905,663 |
Target Retirement 2050 Fund | 752,940 |
Target Retirement 2055 Fund | 462,699 |
Target Retirement 2060 Fund | 233,355 |
Target Retirement 2065 Fund | 52,655 |
Target Retirement 2070 Fund | 466 |
Fund | ($000) |
Target Retirement 2045 Fund | 75,905 |
Target Retirement 2050 Fund | 46,186 |
Target Retirement 2055 Fund | 29,299 |
Target Retirement 2060 Fund | 15,223 |
Target Retirement 2065 Fund | 3,725 |
Target Retirement 2070 Fund | 120 |
Fund | ($000) |
Target Retirement 2045 Fund | 367,839 |
Target Retirement 2050 Fund | 121,329 |
Target Retirement 2055 Fund | 26,484 |
Target Retirement 2060 Fund | — |
Target Retirement 2065 Fund | — |
Target Retirement 2070 Fund | — |
Fund | Percentage |
Target Retirement 2045 Fund | 19.6% |
Target Retirement 2050 Fund | 14.5 |
Target Retirement 2055 Fund | 14.9 |
Target Retirement 2060 Fund | 15.4 |
Target Retirement 2065 Fund | 16.7 |
Target Retirement 2070 Fund | 52.3 |
Fund | Foreign Source Income ($000) | Foreign Taxes Paid ($000) |
Target Retirement 2045 Fund | 759,799 | 57,150 |
Target Retirement 2050 Fund | 640,716 | 48,881 |
Target Retirement 2055 Fund | 407,782 | 31,118 |
Target Retirement 2060 Fund | 211,806 | 16,166 |
Target Retirement 2065 Fund | 52,454 | 4,001 |
Target Retirement 2070 Fund | 1,974 | 151 |
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. McIsaac | Lauren Valente |
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
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, 2023: $30,000
Fiscal Year Ended September 30, 2022: $29,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended September 30, 2023: $9,326,156
Fiscal Year Ended September 30, 2022: $10,494,508
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, 2023: $3,295,934
Fiscal Year Ended September 30, 2022: $2,757,764
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, 2023: $1,678,928
Fiscal Year Ended September 30, 2022: $5,202,689
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, 2023: $25,000
Fiscal Year Ended September 30, 2022: $298,000
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, 2023: $1,703,928
Fiscal Year Ended September 30, 2022: $5,500,689
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. |
(a)(2) | Certifications filed herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD CHESTER FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 21, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD CHESTER FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 21, 2023
VANGUARD CHESTER FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: November 21, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on July 21, 2023 (see File Number 33-53683) and to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.