A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Underlying ETFs are valued at the latest quoted sales prices or official closing prices taken from their primary market or, if not traded on the valuation date, at the mean of the latest quoted bid and asked prices.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the portfolio’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Various inputs may be used to determine the value of the portfolio’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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the portfolio’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.
At September 30, 2024, 100% of the market value of the portfolio's investments was determined based on Level 1 inputs.
D. Transactions during the period in affiliated underlying Vanguard funds were as follows:
| | | Current Period Transactions | |
| | Dec. 31, 2023
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, 2024
Market Value
($000) |
| Vanguard Developed Markets Index Fund | 366,628 | 100,078 | 56,792 | 9,726 | 31,889 | 7,385 | — | 451,529 |
| Vanguard Emerging Markets Stock Index Fund | 230,019 | 80,263 | 51,068 | 4,073 | 38,762 | 2,023 | — | 302,049 |
| Vanguard European Stock Index Fund | 167,129 | 45,216 | 31,470 | 4,822 | 13,566 | 4,362 | — | 199,263 |
| Vanguard FTSE All-World ex-US Index Fund | 367,068 | 87,912 | 48,668 | 7,655 | 41,694 | 6,426 | — | 455,661 |
| Vanguard FTSE All-World ex-US Small-Cap Index Fund | 42,944 | 11,960 | 7,653 | 691 | 3,860 | 542 | — | 51,802 |
| Vanguard FTSE Canada All Cap Index ETF | 29,521 | 126 | — | — | 3,556 | 664 | — | 33,203 |
| Vanguard Market Liquidity Fund | 2 | NA2 | NA2 | (1) | — | 13 | — | 489 |
| Vanguard Pacific Stock Index Fund | 110,930 | 32,139 | 22,122 | 2,188 | 8,874 | 1,643 | — | 132,009 |
| Total | 1,314,241 | 357,694 | 217,773 | 29,154 | 142,201 | 23,058 | — | 1,626,005 |
| 1 | Does not include adjustments related to return of capital. |
| 2 | Not applicable—purchases and sales are for temporary cash investment purposes. |
