Vanguard World Fund 年度股东报告披露多只旗下基金业绩与持仓
VANGUARD WORLD FUND (0000052848) (Filer)
Vanguard World Fund截至2026年8月31日的年度股东报告涵盖旗下多只基金，披露了回报、费用、资产配置、持仓及财务信息。
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: 811-01027
| Name of Registrant: | Vanguard World Fund |
| Address of Registrant: | P.O. Box 2600 |
| Valley Forge, PA 19482 |
| Name and address of agent for service: | Natalie Lamarque, Esquire |
| P.O. Box 876 | |
| Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: August 31
Date of reporting period: September 1, 2025—August 31, 2026
Item 1: Reports to Shareholders.
TABLE OF CONTENTS
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Morningstar Mega Cap Index Fund |
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Morningstar Mega Cap Value Index Fund |
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Vanguard FTSE Social Index Fund
Admiral™ Shares (VFTAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard FTSE Social Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $13 | 0.12% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund slightly underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Nine of the benchmark’s 11 industry sectors recorded positive returns for the 12 months. Technology contributed the most to the benchmark’s return, followed by health care and financials. Utilities and consumer discretionary, the two sectors that posted negative returns, detracted slightly.
How did the Fund perform since inception?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: February 7, 2019, Through August 31, 2026
Initial Investment of $10,000
Admiral Shares | FTSE US Choice Index | FTSE USA Index | |
|---|---|---|---|
2/7/19 | $10,000 | $10,000 | $10,000 |
2/28/19 | $10,300 | $10,302 | $10,316 |
5/31/19 | $10,254 | $10,258 | $10,241 |
8/31/19 | $10,985 | $10,991 | $10,929 |
11/30/19 | $11,962 | $11,975 | $11,802 |
2/29/20 | $11,404 | $11,420 | $11,188 |
5/31/20 | $11,849 | $11,865 | $11,617 |
8/31/20 | $14,041 | $14,066 | $13,527 |
11/30/20 | $14,545 | $14,574 | $14,119 |
2/28/21 | $15,325 | $15,358 | $14,932 |
5/31/21 | $16,793 | $16,835 | $16,433 |
8/31/21 | $18,400 | $18,457 | $17,758 |
11/30/21 | $18,654 | $18,718 | $17,903 |
2/28/22 | $17,336 | $17,398 | $17,066 |
5/31/22 | $15,967 | $16,031 | $16,045 |
8/31/22 | $15,404 | $15,472 | $15,451 |
11/30/22 | $15,698 | $15,772 | $15,962 |
2/28/23 | $15,466 | $15,540 | $15,635 |
5/31/23 | $16,631 | $16,718 | $16,519 |
8/31/23 | $17,982 | $18,083 | $17,903 |
11/30/23 | $18,432 | $18,536 | $18,255 |
2/29/24 | $20,781 | $20,905 | $20,443 |
5/31/24 | $21,351 | $21,484 | $21,176 |
8/31/24 | $23,002 | $23,153 | $22,785 |
11/30/24 | $24,752 | $24,926 | $24,509 |
2/28/25 | $24,492 | $24,671 | $24,257 |
5/31/25 | $24,402 | $24,591 | $24,226 |
8/31/25 | $26,837 | $27,052 | $26,554 |
11/30/25 | $28,543 | $28,783 | $28,195 |
2/28/26 | $27,952 | $28,194 | $28,269 |
5/31/26 | $31,725 | $32,008 | $31,286 |
8/31/26 | $32,236 | $32,532 | $31,880 |
Average Annual Total Returns
1 Year | 5 Years | Since Inception 2/7/19 | |
|---|---|---|---|
Admiral Shares | 20.12% | 11.87% | 16.74% |
FTSE US Choice Index | 20.25% | 12.00% | 16.88% |
FTSE USA Index | 20.06% | 12.42% | 16.57% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $29,233 |
|---|---|
Number of Portfolio Holdings | 390 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $217 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 1.4% |
|---|---|
Consumer Discretionary | 13.8% |
Consumer Staples | 3.4% |
Energy | 0.0% |
Financials | 9.4% |
Health Care | 9.4% |
Industrials | 6.3% |
Real Estate | 2.0% |
Technology | 51.2% |
Telecommunications | 2.5% |
Utilities | 0.3% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the Admiral Share class of the Fund was reduced.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR513
Vanguard FTSE Social Index Fund
Institutional Shares (VFTNX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard FTSE Social Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Institutional Shares | $6 | 0.05% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund slightly underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Nine of the benchmark’s 11 industry sectors recorded positive returns for the 12 months. Technology contributed the most to the benchmark’s return, followed by health care and financials. Utilities and consumer discretionary, the two sectors that posted negative returns, detracted slightly.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $5,000,000
Institutional Shares | FTSE US Choice Index | FTSE USA Index | |
|---|---|---|---|
2016 | $5,000,000 | $5,000,000 | $5,000,000 |
2016 | $5,093,909 | $5,096,565 | $5,092,681 |
2017 | $5,534,733 | $5,537,630 | $5,506,224 |
2017 | $5,678,876 | $5,685,108 | $5,650,322 |
2017 | $5,885,926 | $5,891,216 | $5,825,007 |
2017 | $6,368,680 | $6,375,687 | $6,264,325 |
2018 | $6,561,588 | $6,572,650 | $6,456,962 |
2018 | $6,610,122 | $6,622,595 | $6,473,474 |
2018 | $7,142,203 | $7,157,341 | $6,966,009 |
2018 | $6,819,943 | $6,833,324 | $6,648,231 |
2019 | $6,937,280 | $6,953,358 | $6,756,795 |
2019 | $6,905,004 | $6,923,608 | $6,707,503 |
2019 | $7,398,080 | $7,418,115 | $7,158,379 |
2019 | $8,058,800 | $8,082,110 | $7,729,888 |
2020 | $7,683,374 | $7,707,717 | $7,328,196 |
2020 | $7,981,936 | $8,008,232 | $7,608,887 |
2020 | $9,459,454 | $9,493,755 | $8,859,694 |
2020 | $9,799,632 | $9,836,523 | $9,247,628 |
2021 | $10,324,240 | $10,365,720 | $9,780,054 |
2021 | $11,312,945 | $11,362,573 | $10,763,311 |
2021 | $12,400,222 | $12,457,058 | $11,630,983 |
2021 | $12,571,860 | $12,633,456 | $11,725,789 |
2022 | $11,682,381 | $11,742,285 | $11,177,544 |
2022 | $10,762,736 | $10,819,642 | $10,509,105 |
2022 | $10,384,600 | $10,442,797 | $10,120,271 |
2022 | $10,582,902 | $10,645,152 | $10,454,509 |
2023 | $10,424,601 | $10,488,751 | $10,240,428 |
2023 | $11,207,653 | $11,283,490 | $10,819,813 |
2023 | $12,120,145 | $12,205,106 | $11,726,058 |
2023 | $12,424,279 | $12,510,581 | $11,956,532 |
2024 | $14,006,828 | $14,109,737 | $13,389,905 |
2024 | $14,395,092 | $14,500,328 | $13,870,038 |
2024 | $15,507,670 | $15,626,654 | $14,923,503 |
2024 | $16,687,983 | $16,823,400 | $16,052,639 |
2025 | $16,513,135 | $16,651,274 | $15,888,023 |
2025 | $16,459,184 | $16,597,034 | $15,867,741 |
2025 | $18,101,987 | $18,258,636 | $17,392,628 |
2025 | $19,254,679 | $19,426,399 | $18,467,194 |
2026 | $18,858,807 | $19,028,813 | $18,515,499 |
2026 | $21,409,250 | $21,603,642 | $20,491,500 |
2026 | $21,756,802 | $21,956,853 | $20,880,912 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Institutional Shares | 20.19% | 11.90% | 15.84% |
FTSE US Choice Index | 20.25% | 12.00% | 15.95% |
FTSE USA Index | 20.06% | 12.42% | 15.37% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $29,233 |
|---|---|
Number of Portfolio Holdings | 390 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $217 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 1.4% |
|---|---|
Consumer Discretionary | 13.8% |
Consumer Staples | 3.4% |
Energy | 0.0% |
Financials | 9.4% |
Health Care | 9.4% |
Industrials | 6.3% |
Real Estate | 2.0% |
Technology | 51.2% |
Telecommunications | 2.5% |
Utilities | 0.3% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the Institutional Share class of the Fund was reduced.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Institutional Investor Services • 800-523-1036
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR223
Vanguard Materials Index Fund
ETF Shares (VAW) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Materials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Newmont (+71%), Freeport-McMoRan (+72%), and Nucor (+70%) contributed the most to the benchmark’s return. They accounted for about 19% of the index at the end of the reporting period and added about 10 percentage points to its result.
CRH public (–15%), Sherwin-Williams (–7%), and International Paper (–20%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Materials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,501 | $10,508 | $10,232 |
2017 | $11,110 | $11,114 | $11,030 |
2017 | $11,206 | $11,212 | $11,271 |
2017 | $11,706 | $11,716 | $11,606 |
2017 | $12,729 | $12,723 | $12,514 |
2018 | $12,750 | $12,748 | $12,820 |
2018 | $12,632 | $12,633 | $12,966 |
2018 | $12,866 | $12,869 | $13,959 |
2018 | $11,644 | $11,645 | $13,205 |
2019 | $11,926 | $11,930 | $13,469 |
2019 | $11,196 | $11,204 | $13,288 |
2019 | $12,000 | $12,020 | $14,144 |
2019 | $12,864 | $12,888 | $15,258 |
2020 | $11,271 | $11,294 | $14,384 |
2020 | $11,808 | $11,836 | $14,801 |
2020 | $13,454 | $13,488 | $17,181 |
2020 | $15,253 | $15,298 | $18,176 |
2021 | $16,137 | $16,187 | $19,508 |
2021 | $19,326 | $19,390 | $21,356 |
2021 | $18,970 | $19,039 | $22,952 |
2021 | $18,765 | $18,839 | $23,066 |
2022 | $18,833 | $18,912 | $21,982 |
2022 | $19,322 | $19,409 | $20,624 |
2022 | $17,157 | $17,236 | $19,900 |
2022 | $18,784 | $18,877 | $20,565 |
2023 | $18,940 | $19,035 | $20,229 |
2023 | $17,265 | $17,356 | $21,076 |
2023 | $19,231 | $19,338 | $22,888 |
2023 | $19,097 | $19,209 | $23,198 |
2024 | $20,533 | $20,659 | $26,023 |
2024 | $21,534 | $21,671 | $26,923 |
2024 | $22,130 | $22,276 | $28,873 |
2024 | $22,830 | $22,987 | $31,200 |
2025 | $21,247 | $21,396 | $30,603 |
2025 | $20,698 | $20,847 | $30,422 |
2025 | $22,698 | $22,867 | $33,454 |
2025 | $22,226 | $22,398 | $35,455 |
2026 | $26,804 | $27,017 | $35,849 |
2026 | $25,639 | $25,847 | $39,554 |
2026 | $26,142 | $26,361 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 15.17% | 6.62% | 10.09% |
ETF Shares Market Price | 15.14% | 6.63% | 10.09% |
MSCI U.S. Investable Market Materials 25/50 Index | 15.28% | 6.72% | 10.18% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $4,542 |
|---|---|
Number of Portfolio Holdings | 112 |
Portfolio Turnover Rate | 8% |
Total Investment Advisory Fees (in thousands) | $42 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Chemicals | 48.3% |
|---|---|
Construction Materials | 10.5% |
Containers & Packaging | 10.0% |
Metals & Mining | 31.0% |
Paper & Forest Products | 0.1% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR952
Vanguard Materials Index Fund
Admiral™ Shares (VMIAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Materials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Newmont (+71%), Freeport-McMoRan (+72%), and Nucor (+70%) contributed the most to the benchmark’s return. They accounted for about 19% of the index at the end of the reporting period and added about 10 percentage points to its result.
CRH public (–15%), Sherwin-Williams (–7%), and International Paper (–20%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Materials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $105,014 | $105,080 | $102,323 |
2017 | $111,107 | $111,137 | $110,301 |
2017 | $112,056 | $112,117 | $112,713 |
2017 | $117,058 | $117,161 | $116,055 |
2017 | $127,280 | $127,228 | $125,136 |
2018 | $127,482 | $127,476 | $128,197 |
2018 | $126,314 | $126,327 | $129,658 |
2018 | $128,663 | $128,689 | $139,594 |
2018 | $116,418 | $116,450 | $132,050 |
2019 | $119,225 | $119,295 | $134,688 |
2019 | $111,942 | $112,038 | $132,882 |
2019 | $119,985 | $120,200 | $141,436 |
2019 | $128,626 | $128,881 | $152,576 |
2020 | $112,699 | $112,939 | $143,841 |
2020 | $118,080 | $118,356 | $148,014 |
2020 | $134,547 | $134,884 | $171,813 |
2020 | $152,561 | $152,976 | $181,762 |
2021 | $161,407 | $161,871 | $195,080 |
2021 | $193,304 | $193,901 | $213,559 |
2021 | $189,768 | $190,390 | $229,522 |
2021 | $187,723 | $188,386 | $230,655 |
2022 | $188,400 | $189,124 | $219,820 |
2022 | $193,308 | $194,088 | $206,240 |
2022 | $171,628 | $172,362 | $199,000 |
2022 | $187,927 | $188,769 | $205,651 |
2023 | $189,461 | $190,353 | $202,286 |
2023 | $172,713 | $173,557 | $210,760 |
2023 | $192,395 | $193,383 | $228,878 |
2023 | $191,056 | $192,090 | $231,975 |
2024 | $205,433 | $206,590 | $260,227 |
2024 | $215,455 | $216,705 | $269,232 |
2024 | $221,421 | $222,758 | $288,732 |
2024 | $228,438 | $229,868 | $312,002 |
2025 | $212,579 | $213,956 | $306,030 |
2025 | $207,088 | $208,474 | $304,223 |
2025 | $227,108 | $228,668 | $334,541 |
2025 | $222,387 | $223,980 | $354,555 |
2026 | $268,186 | $270,175 | $358,486 |
2026 | $256,519 | $258,474 | $395,539 |
2026 | $261,563 | $263,612 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 15.17% | 6.63% | 10.09% |
MSCI U.S. Investable Market Materials 25/50 Index | 15.28% | 6.72% | 10.18% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $4,542 |
|---|---|
Number of Portfolio Holdings | 112 |
Portfolio Turnover Rate | 8% |
Total Investment Advisory Fees (in thousands) | $42 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Chemicals | 48.3% |
|---|---|
Construction Materials | 10.5% |
Containers & Packaging | 10.0% |
Metals & Mining | 31.0% |
Paper & Forest Products | 0.1% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5481
Vanguard Communication Services Index Fund
ETF Shares (VOX) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Communication Services Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Alphabet (+59%), Warner Bros. Discovery (+145%), and Verizon Communications (+21%) contributed the most to the benchmark’s return. They accounted for about 30% of the index at the end of the reporting period and added about 16 percentage points to its result.
Meta Platforms (–22%), Roblox (–67%), and Netflix (–33%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | Communication Services Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $9,961 | $9,958 | $10,232 |
2017 | $10,441 | $10,440 | $11,030 |
2017 | $10,126 | $10,121 | $11,271 |
2017 | $10,162 | $10,152 | $11,606 |
2017 | $10,062 | $10,050 | $12,514 |
2018 | $9,637 | $9,612 | $12,820 |
2018 | $9,230 | $9,201 | $12,966 |
2018 | $9,806 | $9,779 | $13,959 |
2018 | $9,179 | $9,157 | $13,205 |
2019 | $9,344 | $9,308 | $13,469 |
2019 | $9,520 | $9,486 | $13,288 |
2019 | $9,950 | $9,917 | $14,144 |
2019 | $10,533 | $10,501 | $15,258 |
2020 | $10,233 | $10,203 | $14,384 |
2020 | $10,728 | $10,699 | $14,801 |
2020 | $12,452 | $12,419 | $17,181 |
2020 | $13,311 | $13,276 | $18,176 |
2021 | $14,872 | $14,837 | $19,508 |
2021 | $16,052 | $16,018 | $21,356 |
2021 | $17,402 | $17,367 | $22,952 |
2021 | $15,442 | $15,414 | $23,066 |
2022 | $14,009 | $13,986 | $21,982 |
2022 | $12,082 | $12,065 | $20,624 |
2022 | $11,031 | $11,016 | $19,900 |
2022 | $10,435 | $10,424 | $20,565 |
2023 | $10,699 | $10,684 | $20,229 |
2023 | $11,984 | $11,961 | $21,076 |
2023 | $12,957 | $12,920 | $22,888 |
2023 | $13,301 | $13,255 | $23,198 |
2024 | $15,259 | $15,206 | $26,023 |
2024 | $15,996 | $15,942 | $26,923 |
2024 | $16,665 | $16,610 | $28,873 |
2024 | $18,673 | $18,602 | $31,200 |
2025 | $19,321 | $19,251 | $30,603 |
2025 | $19,249 | $19,177 | $30,422 |
2025 | $21,802 | $21,699 | $33,454 |
2025 | $23,194 | $23,089 | $35,455 |
2026 | $23,388 | $23,287 | $35,849 |
2026 | $24,044 | $23,946 | $39,554 |
2026 | $22,807 | $22,717 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 4.61% | 5.56% | 8.59% |
ETF Shares Market Price | 4.61% | 5.56% | 8.61% |
Communication Services Spliced Index | 4.69% | 5.52% | 8.55% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $5,934 |
|---|---|
Number of Portfolio Holdings | 114 |
Portfolio Turnover Rate | 28% |
Total Investment Advisory Fees (in thousands) | $67 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Diversified Telecommunication Services | 17.3% |
|---|---|
Entertainment | 22.3% |
Interactive Media & Services | 46.3% |
Media | 10.8% |
Wireless Telecommunication Services | 3.0% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR959
Vanguard Communication Services Index Fund
Admiral™ Shares (VTCAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Communication Services Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Alphabet (+59%), Warner Bros. Discovery (+145%), and Verizon Communications (+21%) contributed the most to the benchmark’s return. They accounted for about 30% of the index at the end of the reporting period and added about 16 percentage points to its result.
Meta Platforms (–22%), Roblox (–67%), and Netflix (–33%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | Communication Services Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $99,583 | $99,577 | $102,323 |
2017 | $104,390 | $104,395 | $110,301 |
2017 | $101,247 | $101,212 | $112,713 |
2017 | $101,605 | $101,523 | $116,055 |
2017 | $100,594 | $100,504 | $125,136 |
2018 | $96,336 | $96,120 | $128,197 |
2018 | $92,284 | $92,011 | $129,658 |
2018 | $98,068 | $97,794 | $139,594 |
2018 | $91,784 | $91,568 | $132,050 |
2019 | $93,453 | $93,081 | $134,688 |
2019 | $95,199 | $94,860 | $132,882 |
2019 | $99,502 | $99,169 | $141,436 |
2019 | $105,320 | $105,009 | $152,576 |
2020 | $102,336 | $102,034 | $143,841 |
2020 | $107,286 | $106,992 | $148,014 |
2020 | $124,537 | $124,192 | $171,813 |
2020 | $133,126 | $132,764 | $181,762 |
2021 | $148,728 | $148,368 | $195,080 |
2021 | $160,538 | $160,183 | $213,559 |
2021 | $174,049 | $173,666 | $229,522 |
2021 | $154,433 | $154,138 | $230,655 |
2022 | $140,092 | $139,859 | $219,820 |
2022 | $120,835 | $120,646 | $206,240 |
2022 | $110,331 | $110,164 | $199,000 |
2022 | $104,382 | $104,236 | $205,651 |
2023 | $107,000 | $106,836 | $202,286 |
2023 | $119,841 | $119,608 | $210,760 |
2023 | $129,568 | $129,201 | $228,878 |
2023 | $133,031 | $132,552 | $231,975 |
2024 | $152,603 | $152,057 | $260,227 |
2024 | $159,985 | $159,424 | $269,232 |
2024 | $166,681 | $166,102 | $288,732 |
2024 | $186,759 | $186,020 | $312,002 |
2025 | $193,244 | $192,506 | $306,030 |
2025 | $192,510 | $191,769 | $304,223 |
2025 | $218,058 | $216,987 | $334,541 |
2025 | $231,968 | $230,893 | $354,555 |
2026 | $233,927 | $232,874 | $358,486 |
2026 | $240,478 | $239,459 | $395,539 |
2026 | $228,109 | $227,166 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 4.61% | 5.56% | 8.60% |
Communication Services Spliced Index | 4.69% | 5.52% | 8.55% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $5,934 |
|---|---|
Number of Portfolio Holdings | 114 |
Portfolio Turnover Rate | 28% |
Total Investment Advisory Fees (in thousands) | $67 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Diversified Telecommunication Services | 17.3% |
|---|---|
Entertainment | 22.3% |
Interactive Media & Services | 46.3% |
Media | 10.8% |
Wireless Telecommunication Services | 3.0% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5488
Vanguard U.S. Growth Fund
Investor Shares (VWUSX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard U.S. Growth Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Investor Shares | $36 | 0.35% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
The Fund lagged its benchmark across all industry sectors. Stock selection in communication services, information technology, and industrials detracted the most from relative performance.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
Investor Shares | Russell 1000 Growth Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $9,749 | $10,014 | $10,233 |
2017 | $10,475 | $10,915 | $11,028 |
2017 | $11,268 | $11,587 | $11,265 |
2017 | $11,924 | $12,082 | $11,605 |
2017 | $12,764 | $13,099 | $12,514 |
2018 | $13,649 | $13,765 | $12,818 |
2018 | $14,028 | $14,024 | $12,965 |
2018 | $15,219 | $15,371 | $13,956 |
2018 | $14,207 | $14,224 | $13,202 |
2019 | $14,759 | $14,677 | $13,458 |
2019 | $14,767 | $14,780 | $13,279 |
2019 | $15,783 | $16,028 | $14,127 |
2019 | $16,806 | $17,213 | $15,231 |
2020 | $16,946 | $16,894 | $14,369 |
2020 | $19,337 | $18,660 | $14,780 |
2020 | $24,939 | $23,135 | $17,123 |
2020 | $26,024 | $23,478 | $18,115 |
2021 | $27,781 | $24,371 | $19,470 |
2021 | $28,048 | $26,110 | $21,279 |
2021 | $31,802 | $29,734 | $22,828 |
2021 | $31,511 | $30,686 | $22,913 |
2022 | $25,495 | $27,429 | $21,794 |
2022 | $20,866 | $24,478 | $20,429 |
2022 | $20,568 | $24,068 | $19,693 |
2022 | $20,148 | $24,046 | $20,334 |
2023 | $20,142 | $23,770 | $19,999 |
2023 | $22,770 | $26,814 | $20,821 |
2023 | $24,720 | $29,347 | $22,598 |
2023 | $25,544 | $30,338 | $22,901 |
2024 | $29,719 | $34,688 | $25,719 |
2024 | $30,113 | $35,825 | $26,584 |
2024 | $32,387 | $38,373 | $28,511 |
2024 | $35,611 | $41,880 | $30,815 |
2025 | $35,279 | $41,538 | $30,221 |
2025 | $35,949 | $42,137 | $30,045 |
2025 | $39,831 | $47,036 | $33,038 |
2025 | $41,485 | $50,404 | $34,985 |
2026 | $38,194 | $47,678 | $35,334 |
2026 | $42,809 | $54,212 | $39,010 |
2026 | $41,737 | $52,124 | $39,694 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Investor Shares | 4.78% | 5.59% | 15.36% |
Russell 1000 Growth Index | 10.82% | 11.88% | 17.95% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $43,976 |
|---|---|
Number of Portfolio Holdings | 109 |
Portfolio Turnover Rate | 58% |
Total Investment Advisory Fees (in thousands) | $56,897 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Communication Services | 16.2% |
|---|---|
Consumer Discretionary | 9.0% |
Consumer Staples | 1.2% |
Financials | 5.6% |
Health Care | 8.0% |
Industrials | 6.7% |
Information Technology | 50.3% |
Materials | 0.2% |
Real Estate | 1.0% |
Utilities | 0.3% |
Other Assets and Liabilities—Net | 1.5% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR23
Vanguard U.S. Growth Fund
Admiral™ Shares (VWUAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard U.S. Growth Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $26 | 0.25% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
The Fund lagged its benchmark across all industry sectors. Stock selection in communication services, information technology, and industrials detracted the most from relative performance.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $50,000
Admiral Shares | Russell 1000 Growth Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $50,000 | $50,000 | $50,000 |
2016 | $48,765 | $50,071 | $51,166 |
2017 | $52,407 | $54,575 | $55,138 |
2017 | $56,408 | $57,937 | $56,325 |
2017 | $59,709 | $60,408 | $58,023 |
2017 | $63,936 | $65,496 | $62,569 |
2018 | $68,385 | $68,827 | $64,089 |
2018 | $70,308 | $70,118 | $64,823 |
2018 | $76,295 | $76,855 | $69,778 |
2018 | $71,239 | $71,121 | $66,009 |
2019 | $74,023 | $73,384 | $67,290 |
2019 | $74,075 | $73,900 | $66,394 |
2019 | $79,193 | $80,140 | $70,637 |
2019 | $84,341 | $86,065 | $76,156 |
2020 | $85,073 | $84,471 | $71,844 |
2020 | $97,094 | $93,300 | $73,901 |
2020 | $125,263 | $115,674 | $85,615 |
2020 | $130,741 | $117,391 | $90,573 |
2021 | $139,601 | $121,854 | $97,351 |
2021 | $140,965 | $130,549 | $106,393 |
2021 | $159,891 | $148,670 | $114,141 |
2021 | $158,462 | $153,432 | $114,564 |
2022 | $128,236 | $137,146 | $108,968 |
2022 | $104,985 | $122,388 | $102,145 |
2022 | $103,510 | $120,339 | $98,467 |
2022 | $101,431 | $120,230 | $101,672 |
2023 | $101,414 | $118,851 | $99,996 |
2023 | $114,675 | $134,072 | $104,106 |
2023 | $124,522 | $146,737 | $112,988 |
2023 | $128,710 | $151,692 | $114,507 |
2024 | $149,792 | $173,438 | $128,594 |
2024 | $151,796 | $179,123 | $132,921 |
2024 | $163,315 | $191,863 | $142,556 |
2024 | $179,617 | $209,400 | $154,077 |
2025 | $177,991 | $207,688 | $151,103 |
2025 | $181,413 | $210,687 | $150,223 |
2025 | $201,048 | $235,181 | $165,190 |
2025 | $209,459 | $252,020 | $174,926 |
2026 | $192,879 | $238,389 | $176,669 |
2026 | $216,262 | $271,062 | $195,052 |
2026 | $210,894 | $260,621 | $198,469 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 4.90% | 5.69% | 15.48% |
Russell 1000 Growth Index | 10.82% | 11.88% | 17.95% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $43,976 |
|---|---|
Number of Portfolio Holdings | 109 |
Portfolio Turnover Rate | 58% |
Total Investment Advisory Fees (in thousands) | $56,897 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Communication Services | 16.2% |
|---|---|
Consumer Discretionary | 9.0% |
Consumer Staples | 1.2% |
Financials | 5.6% |
Health Care | 8.0% |
Industrials | 6.7% |
Information Technology | 50.3% |
Materials | 0.2% |
Real Estate | 1.0% |
Utilities | 0.3% |
Other Assets and Liabilities—Net | 1.5% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR523
Vanguard Utilities Index Fund
ETF Shares (VPU) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Utilities Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
NextEra Energy (+18%), Entergy (+24%), and Dominion Energy (+15%) contributed the most to the benchmark’s return. They accounted for about 19% of the index at the end of the reporting period and added about 3 percentage points to its result.
Vistra (–27%), Constellation Energy (–10%), and NRG Energy (–23%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Utilities 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $9,676 | $9,678 | $10,232 |
2017 | $10,766 | $10,767 | $11,030 |
2017 | $11,272 | $11,275 | $11,271 |
2017 | $11,627 | $11,632 | $11,606 |
2017 | $12,119 | $12,125 | $12,514 |
2018 | $10,592 | $10,600 | $12,820 |
2018 | $11,254 | $11,266 | $12,966 |
2018 | $11,866 | $11,880 | $13,959 |
2018 | $12,422 | $12,440 | $13,205 |
2019 | $12,826 | $12,845 | $13,469 |
2019 | $13,185 | $13,208 | $13,288 |
2019 | $14,259 | $14,287 | $14,144 |
2019 | $14,410 | $14,443 | $15,258 |
2020 | $14,186 | $14,224 | $14,384 |
2020 | $13,736 | $13,775 | $14,801 |
2020 | $13,678 | $13,720 | $17,181 |
2020 | $14,615 | $14,665 | $18,176 |
2021 | $13,788 | $13,839 | $19,508 |
2021 | $15,418 | $15,478 | $21,356 |
2021 | $16,303 | $16,373 | $22,952 |
2021 | $15,823 | $15,897 | $23,066 |
2022 | $16,420 | $16,502 | $21,982 |
2022 | $18,014 | $18,110 | $20,624 |
2022 | $18,125 | $18,229 | $19,900 |
2022 | $17,660 | $17,767 | $20,565 |
2023 | $16,239 | $16,340 | $20,229 |
2023 | $16,254 | $16,363 | $21,076 |
2023 | $15,813 | $15,923 | $22,888 |
2023 | $15,818 | $15,929 | $23,198 |
2024 | $15,888 | $16,005 | $26,023 |
2024 | $18,749 | $18,894 | $26,923 |
2024 | $19,815 | $19,972 | $28,873 |
2024 | $21,647 | $21,823 | $31,200 |
2025 | $20,904 | $21,079 | $30,603 |
2025 | $21,755 | $21,938 | $30,422 |
2025 | $22,608 | $22,804 | $33,454 |
2025 | $24,458 | $24,676 | $35,455 |
2026 | $25,819 | $26,055 | $35,849 |
2026 | $24,336 | $24,564 | $39,554 |
2026 | $23,230 | $23,453 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 2.75% | 7.34% | 8.79% |
ETF Shares Market Price | 2.83% | 7.35% | 8.80% |
MSCI U.S. Investable Market Utilities 25/50 Index | 2.84% | 7.45% | 8.90% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $10,086 |
|---|---|
Number of Portfolio Holdings | 73 |
Portfolio Turnover Rate | 5% |
Total Investment Advisory Fees (in thousands) | $105 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Electric Utilities | 61.3% |
|---|---|
Gas Utilities | 5.0% |
Independent Power and Renewable Electricity Producers | 5.5% |
Multi-Utilities | 24.6% |
Water Utilities | 3.3% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR960
Vanguard Utilities Index Fund
Admiral™ Shares (VUIAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Utilities Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
NextEra Energy (+18%), Entergy (+24%), and Dominion Energy (+15%) contributed the most to the benchmark’s return. They accounted for about 19% of the index at the end of the reporting period and added about 3 percentage points to its result.
Vistra (–27%), Constellation Energy (–10%), and NRG Energy (–23%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Utilities 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $96,748 | $96,780 | $102,323 |
2017 | $107,630 | $107,668 | $110,301 |
2017 | $112,686 | $112,748 | $112,713 |
2017 | $116,241 | $116,323 | $116,055 |
2017 | $121,138 | $121,248 | $125,136 |
2018 | $105,894 | $106,003 | $128,197 |
2018 | $112,516 | $112,656 | $129,658 |
2018 | $118,615 | $118,798 | $139,594 |
2018 | $124,182 | $124,399 | $132,050 |
2019 | $128,215 | $128,449 | $134,688 |
2019 | $131,819 | $132,080 | $132,882 |
2019 | $142,562 | $142,872 | $141,436 |
2019 | $144,076 | $144,427 | $152,576 |
2020 | $141,858 | $142,238 | $143,841 |
2020 | $137,355 | $137,749 | $148,014 |
2020 | $136,783 | $137,204 | $171,813 |
2020 | $146,167 | $146,648 | $181,762 |
2021 | $137,914 | $138,392 | $195,080 |
2021 | $154,212 | $154,783 | $213,559 |
2021 | $163,073 | $163,728 | $229,522 |
2021 | $158,310 | $158,970 | $230,655 |
2022 | $164,287 | $165,016 | $219,820 |
2022 | $180,252 | $181,101 | $206,240 |
2022 | $181,365 | $182,287 | $199,000 |
2022 | $176,738 | $177,668 | $205,651 |
2023 | $162,498 | $163,398 | $202,286 |
2023 | $162,689 | $163,629 | $210,760 |
2023 | $158,286 | $159,231 | $228,878 |
2023 | $158,294 | $159,285 | $231,975 |
2024 | $159,011 | $160,055 | $260,227 |
2024 | $187,651 | $188,937 | $269,232 |
2024 | $198,309 | $199,719 | $288,732 |
2024 | $216,629 | $218,226 | $312,002 |
2025 | $209,205 | $210,790 | $306,030 |
2025 | $217,729 | $219,384 | $304,223 |
2025 | $226,258 | $228,042 | $334,541 |
2025 | $244,776 | $246,764 | $354,555 |
2026 | $258,398 | $260,552 | $358,486 |
2026 | $243,571 | $245,642 | $395,539 |
2026 | $232,479 | $234,527 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 2.75% | 7.35% | 8.80% |
MSCI U.S. Investable Market Utilities 25/50 Index | 2.84% | 7.45% | 8.90% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $10,086 |
|---|---|
Number of Portfolio Holdings | 73 |
Portfolio Turnover Rate | 5% |
Total Investment Advisory Fees (in thousands) | $105 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Electric Utilities | 61.3% |
|---|---|
Gas Utilities | 5.0% |
Independent Power and Renewable Electricity Producers | 5.5% |
Multi-Utilities | 24.6% |
Water Utilities | 3.3% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5489
Vanguard Consumer Discretionary Index Fund
ETF Shares (VCR) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Consumer Discretionary Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Amazon.com (+13%), Tesla (+10%), and General Motors (+49%) contributed the most to the benchmark’s return. They accounted for about 39% of the index at the end of the reporting period and added about 5 percentage points to its result.
Home Depot (–17%), Nike (–48%), and Flutter Entertainment (–67%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | Consumer Discretionary Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,242 | $10,243 | $10,232 |
2017 | $10,843 | $10,845 | $11,030 |
2017 | $11,441 | $11,445 | $11,271 |
2017 | $11,381 | $11,386 | $11,606 |
2017 | $12,325 | $12,333 | $12,514 |
2018 | $13,156 | $13,165 | $12,820 |
2018 | $13,392 | $13,405 | $12,966 |
2018 | $14,707 | $14,727 | $13,959 |
2018 | $13,527 | $13,546 | $13,205 |
2019 | $13,771 | $13,791 | $13,469 |
2019 | $13,708 | $13,732 | $13,288 |
2019 | $14,687 | $14,715 | $14,144 |
2019 | $15,245 | $15,276 | $15,258 |
2020 | $14,663 | $14,696 | $14,384 |
2020 | $15,821 | $15,862 | $14,801 |
2020 | $20,559 | $20,617 | $17,181 |
2020 | $22,120 | $22,183 | $18,176 |
2021 | $24,037 | $24,105 | $19,508 |
2021 | $25,815 | $25,896 | $21,356 |
2021 | $27,218 | $27,310 | $22,952 |
2021 | $29,063 | $29,167 | $23,066 |
2022 | $25,304 | $25,399 | $21,982 |
2022 | $21,929 | $22,017 | $20,624 |
2022 | $22,016 | $22,107 | $19,900 |
2022 | $21,165 | $21,258 | $20,565 |
2023 | $21,304 | $21,399 | $20,229 |
2023 | $21,888 | $21,988 | $21,076 |
2023 | $24,823 | $24,940 | $22,888 |
2023 | $24,705 | $24,825 | $23,198 |
2024 | $27,490 | $27,631 | $26,023 |
2024 | $26,538 | $26,678 | $26,923 |
2024 | $28,022 | $28,175 | $28,873 |
2024 | $32,891 | $33,078 | $31,200 |
2025 | $31,407 | $31,592 | $30,603 |
2025 | $31,280 | $31,474 | $30,422 |
2025 | $33,972 | $34,189 | $33,454 |
2025 | $34,467 | $34,692 | $35,455 |
2026 | $33,945 | $34,173 | $35,849 |
2026 | $35,550 | $35,795 | $39,554 |
2026 | $34,717 | $34,948 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 2.19% | 4.99% | 13.25% |
ETF Shares Market Price | 2.19% | 4.98% | 13.25% |
Consumer Discretionary Spliced Index | 2.22% | 5.06% | 13.33% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $6,609 |
|---|---|
Number of Portfolio Holdings | 279 |
Portfolio Turnover Rate | 13% |
Total Investment Advisory Fees (in thousands) | $73 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Automobile Components | 2.5% |
|---|---|
Automobiles | 18.2% |
Broadline Retail | 25.3% |
Distributors | 0.8% |
Diversified Consumer Services | 2.2% |
Hotels, Restaurants & Leisure | 21.9% |
Household Durables | 5.3% |
Leisure Products | 1.2% |
Specialty Retail | 19.3% |
Textiles, Apparel & Luxury Goods | 3.2% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR954
Vanguard Consumer Discretionary Index Fund
Admiral™ Shares (VCDAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Consumer Discretionary Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Amazon.com (+13%), Tesla (+10%), and General Motors (+49%) contributed the most to the benchmark’s return. They accounted for about 39% of the index at the end of the reporting period and added about 5 percentage points to its result.
Home Depot (–17%), Nike (–48%), and Flutter Entertainment (–67%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | Consumer Discretionary Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $102,426 | $102,428 | $102,323 |
2017 | $108,437 | $108,445 | $110,301 |
2017 | $114,411 | $114,448 | $112,713 |
2017 | $113,813 | $113,864 | $116,055 |
2017 | $123,274 | $123,329 | $125,136 |
2018 | $131,568 | $131,653 | $128,197 |
2018 | $133,935 | $134,046 | $129,658 |
2018 | $147,086 | $147,275 | $139,594 |
2018 | $135,275 | $135,456 | $132,050 |
2019 | $137,712 | $137,911 | $134,688 |
2019 | $137,091 | $137,323 | $132,882 |
2019 | $146,882 | $147,148 | $141,436 |
2019 | $152,465 | $152,762 | $152,576 |
2020 | $146,645 | $146,961 | $143,841 |
2020 | $158,244 | $158,623 | $148,014 |
2020 | $205,642 | $206,170 | $171,813 |
2020 | $221,242 | $221,830 | $181,762 |
2021 | $240,414 | $241,048 | $195,080 |
2021 | $258,197 | $258,959 | $213,559 |
2021 | $272,242 | $273,105 | $229,522 |
2021 | $290,689 | $291,668 | $230,655 |
2022 | $253,080 | $253,987 | $219,820 |
2022 | $219,315 | $220,166 | $206,240 |
2022 | $220,206 | $221,071 | $199,000 |
2022 | $211,712 | $212,578 | $205,651 |
2023 | $213,092 | $213,989 | $202,286 |
2023 | $218,934 | $219,885 | $210,760 |
2023 | $248,274 | $249,403 | $228,878 |
2023 | $247,105 | $248,255 | $231,975 |
2024 | $274,979 | $276,310 | $260,227 |
2024 | $265,451 | $266,780 | $269,232 |
2024 | $280,306 | $281,749 | $288,732 |
2024 | $328,991 | $330,778 | $312,002 |
2025 | $314,161 | $315,915 | $306,030 |
2025 | $312,884 | $314,736 | $304,223 |
2025 | $339,813 | $341,885 | $334,541 |
2025 | $344,763 | $346,922 | $354,555 |
2026 | $339,542 | $341,729 | $358,486 |
2026 | $355,598 | $357,949 | $395,539 |
2026 | $347,266 | $349,482 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 2.19% | 4.99% | 13.26% |
Consumer Discretionary Spliced Index | 2.22% | 5.06% | 13.33% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $6,609 |
|---|---|
Number of Portfolio Holdings | 279 |
Portfolio Turnover Rate | 13% |
Total Investment Advisory Fees (in thousands) | $73 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Automobile Components | 2.5% |
|---|---|
Automobiles | 18.2% |
Broadline Retail | 25.3% |
Distributors | 0.8% |
Diversified Consumer Services | 2.2% |
Hotels, Restaurants & Leisure | 21.9% |
Household Durables | 5.3% |
Leisure Products | 1.2% |
Specialty Retail | 19.3% |
Textiles, Apparel & Luxury Goods | 3.2% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5483
Vanguard Consumer Staples Index Fund
ETF Shares (VDC) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Consumer Staples Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Coca-Cola (+32%), Walmart (+9%), and Target (+74%) contributed the most to the benchmark’s return. They accounted for about 24% of the index at the end of the reporting period and added about 5 percentage points to its result.
Procter & Gamble (–5%), Celsius Holdings (–50%), and BellRing Brands (–74%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Consumer Staples 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $9,396 | $9,396 | $10,232 |
2017 | $10,267 | $10,269 | $11,030 |
2017 | $10,586 | $10,592 | $11,271 |
2017 | $10,283 | $10,290 | $11,606 |
2017 | $10,634 | $10,644 | $12,514 |
2018 | $10,220 | $10,231 | $12,820 |
2018 | $9,668 | $9,680 | $12,966 |
2018 | $10,550 | $10,566 | $13,959 |
2018 | $10,998 | $11,017 | $13,205 |
2019 | $10,768 | $10,789 | $13,469 |
2019 | $10,937 | $10,962 | $13,288 |
2019 | $11,947 | $11,976 | $14,144 |
2019 | $12,287 | $12,320 | $15,258 |
2020 | $11,531 | $11,565 | $14,384 |
2020 | $11,877 | $11,916 | $14,801 |
2020 | $13,262 | $13,308 | $17,181 |
2020 | $13,709 | $13,761 | $18,176 |
2021 | $13,317 | $13,370 | $19,508 |
2021 | $14,933 | $14,998 | $21,356 |
2021 | $15,253 | $15,324 | $22,952 |
2021 | $14,961 | $15,035 | $23,066 |
2022 | $15,945 | $16,028 | $21,982 |
2022 | $15,828 | $15,913 | $20,624 |
2022 | $15,684 | $15,772 | $19,900 |
2022 | $16,704 | $16,802 | $20,565 |
2023 | $15,774 | $15,866 | $20,229 |
2023 | $16,056 | $16,151 | $21,076 |
2023 | $16,413 | $16,511 | $22,888 |
2023 | $16,010 | $16,110 | $23,198 |
2024 | $17,177 | $17,288 | $26,023 |
2024 | $17,907 | $18,024 | $26,923 |
2024 | $19,070 | $19,198 | $28,873 |
2024 | $19,719 | $19,854 | $31,200 |
2025 | $19,926 | $20,067 | $30,603 |
2025 | $20,015 | $20,161 | $30,422 |
2025 | $19,640 | $19,779 | $33,454 |
2025 | $19,463 | $19,605 | $35,455 |
2026 | $22,133 | $22,300 | $35,849 |
2026 | $20,393 | $20,551 | $39,554 |
2026 | $21,024 | $21,191 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 7.05% | 6.63% | 7.71% |
ETF Shares Market Price | 7.08% | 6.63% | 7.72% |
MSCI U.S. Investable Market Consumer Staples 25/50 Index | 7.14% | 6.70% | 7.80% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $9,256 |
|---|---|
Number of Portfolio Holdings | 106 |
Portfolio Turnover Rate | 11% |
Total Investment Advisory Fees (in thousands) | $91 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Beverages | 20.8% |
|---|---|
Consumer Staples Distribution & Retail | 37.7% |
Food Products | 13.9% |
Household Products | 15.3% |
Personal Care Products | 3.5% |
Tobacco | 8.6% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR955
Vanguard Consumer Staples Index Fund
Admiral™ Shares (VCSAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Consumer Staples Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Coca-Cola (+32%), Walmart (+9%), and Target (+74%) contributed the most to the benchmark’s return. They accounted for about 24% of the index at the end of the reporting period and added about 5 percentage points to its result.
Procter & Gamble (–5%), Celsius Holdings (–50%), and BellRing Brands (–74%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Consumer Staples 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $93,948 | $93,963 | $102,323 |
2017 | $102,655 | $102,694 | $110,301 |
2017 | $105,846 | $105,915 | $112,713 |
2017 | $102,813 | $102,900 | $116,055 |
2017 | $106,314 | $106,436 | $125,136 |
2018 | $102,176 | $102,311 | $128,197 |
2018 | $96,659 | $96,801 | $129,658 |
2018 | $105,479 | $105,658 | $139,594 |
2018 | $109,954 | $110,165 | $132,050 |
2019 | $107,658 | $107,886 | $134,688 |
2019 | $109,362 | $109,617 | $132,882 |
2019 | $119,448 | $119,760 | $141,436 |
2019 | $122,856 | $123,202 | $152,576 |
2020 | $115,297 | $115,648 | $143,841 |
2020 | $118,775 | $119,158 | $148,014 |
2020 | $132,621 | $133,081 | $171,813 |
2020 | $137,094 | $137,610 | $181,762 |
2021 | $133,177 | $133,705 | $195,080 |
2021 | $149,352 | $149,977 | $213,559 |
2021 | $152,567 | $153,239 | $229,522 |
2021 | $149,647 | $150,348 | $230,655 |
2022 | $159,489 | $160,275 | $219,820 |
2022 | $158,332 | $159,128 | $206,240 |
2022 | $156,916 | $157,715 | $199,000 |
2022 | $167,130 | $168,016 | $205,651 |
2023 | $157,808 | $158,656 | $202,286 |
2023 | $160,636 | $161,505 | $210,760 |
2023 | $164,218 | $165,115 | $228,878 |
2023 | $160,182 | $161,100 | $231,975 |
2024 | $171,873 | $172,878 | $260,227 |
2024 | $179,170 | $180,236 | $269,232 |
2024 | $190,805 | $191,981 | $288,732 |
2024 | $197,306 | $198,541 | $312,002 |
2025 | $199,367 | $200,671 | $306,030 |
2025 | $200,267 | $201,610 | $304,223 |
2025 | $196,503 | $197,795 | $334,541 |
2025 | $194,725 | $196,047 | $354,555 |
2026 | $221,454 | $223,001 | $358,486 |
2026 | $204,050 | $205,511 | $395,539 |
2026 | $210,345 | $211,912 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 7.04% | 6.63% | 7.72% |
MSCI U.S. Investable Market Consumer Staples 25/50 Index | 7.14% | 6.70% | 7.80% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $9,256 |
|---|---|
Number of Portfolio Holdings | 106 |
Portfolio Turnover Rate | 11% |
Total Investment Advisory Fees (in thousands) | $91 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Beverages | 20.8% |
|---|---|
Consumer Staples Distribution & Retail | 37.7% |
Food Products | 13.9% |
Household Products | 15.3% |
Personal Care Products | 3.5% |
Tobacco | 8.6% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5484
Vanguard Energy Index Fund
ETF Shares (VDE) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Energy Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $11 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
ExxonMobil Holdings (+45%), Chevron (+33%), and Valero Energy (+141%) contributed most to the benchmark’s return. They accounted for about 40% of the index at the end of the reporting period and added about 20 percentage points to its result.
Sable Offshore (–82%), Civitas Resources (–23%), and NextDecade (–30%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Energy 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,936 | $10,938 | $10,232 |
2017 | $10,473 | $10,474 | $11,030 |
2017 | $9,603 | $9,605 | $11,271 |
2017 | $9,245 | $9,250 | $11,606 |
2017 | $10,324 | $10,332 | $12,514 |
2018 | $10,013 | $10,023 | $12,820 |
2018 | $11,598 | $11,613 | $12,966 |
2018 | $11,470 | $11,487 | $13,959 |
2018 | $10,051 | $10,073 | $13,205 |
2019 | $9,922 | $9,946 | $13,469 |
2019 | $8,955 | $8,980 | $13,288 |
2019 | $8,677 | $8,703 | $14,144 |
2019 | $8,871 | $8,897 | $15,258 |
2020 | $7,136 | $7,158 | $14,384 |
2020 | $6,083 | $6,105 | $14,801 |
2020 | $5,738 | $5,756 | $17,181 |
2020 | $6,046 | $6,066 | $18,176 |
2021 | $8,174 | $8,203 | $19,508 |
2021 | $9,017 | $9,052 | $21,356 |
2021 | $8,496 | $8,535 | $22,952 |
2021 | $9,680 | $9,725 | $23,066 |
2022 | $12,560 | $12,621 | $21,982 |
2022 | $15,640 | $15,719 | $20,624 |
2022 | $14,789 | $14,863 | $19,900 |
2022 | $16,850 | $16,951 | $20,565 |
2023 | $15,566 | $15,663 | $20,229 |
2023 | $14,262 | $14,355 | $21,076 |
2023 | $16,934 | $17,051 | $22,888 |
2023 | $16,213 | $16,329 | $23,198 |
2024 | $16,578 | $16,703 | $26,023 |
2024 | $18,154 | $18,295 | $26,923 |
2024 | $17,844 | $17,985 | $28,873 |
2024 | $18,953 | $19,108 | $31,200 |
2025 | $18,027 | $18,179 | $30,603 |
2025 | $16,393 | $16,535 | $30,422 |
2025 | $18,346 | $18,510 | $33,454 |
2025 | $18,602 | $18,773 | $35,455 |
2026 | $23,155 | $23,369 | $35,849 |
2026 | $23,501 | $23,723 | $39,554 |
2026 | $26,795 | $27,055 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 46.05% | 25.82% | 10.36% |
ETF Shares Market Price | 46.09% | 25.84% | 10.36% |
MSCI U.S. Investable Market Energy 25/50 Index | 46.16% | 25.95% | 10.46% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $13,243 |
|---|---|
Number of Portfolio Holdings | 115 |
Portfolio Turnover Rate | 8% |
Total Investment Advisory Fees (in thousands) | $102 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Coal & Consumable Fuels | 0.8% |
|---|---|
Integrated Oil & Gas | 37.3% |
Oil & Gas Drilling | 1.3% |
Oil & Gas Equipment & Services | 10.8% |
Oil & Gas Exploration & Production | 21.4% |
Oil & Gas Refining & Marketing | 13.7% |
Oil & Gas Storage & Transportation | 14.3% |
Other Assets and Liabilities—Net | 0.4% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR951
Vanguard Energy Index Fund
Admiral™ Shares (VENAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Energy Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $11 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
ExxonMobil Holdings (+45%), Chevron (+33%), and Valero Energy (+141%) contributed most to the benchmark’s return. They accounted for about 40% of the index at the end of the reporting period and added about 20 percentage points to its result.
Sable Offshore (–82%), Civitas Resources (–23%), and NextDecade (–30%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Energy 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $109,350 | $109,376 | $102,323 |
2017 | $104,700 | $104,739 | $110,301 |
2017 | $95,999 | $96,055 | $112,713 |
2017 | $92,438 | $92,500 | $116,055 |
2017 | $103,224 | $103,320 | $125,136 |
2018 | $100,121 | $100,225 | $128,197 |
2018 | $115,968 | $116,129 | $129,658 |
2018 | $114,682 | $114,871 | $139,594 |
2018 | $100,506 | $100,726 | $132,050 |
2019 | $99,219 | $99,460 | $134,688 |
2019 | $89,556 | $89,797 | $132,882 |
2019 | $86,778 | $87,031 | $141,436 |
2019 | $88,691 | $88,967 | $152,576 |
2020 | $71,357 | $71,579 | $143,841 |
2020 | $60,884 | $61,055 | $148,014 |
2020 | $57,432 | $57,562 | $171,813 |
2020 | $60,528 | $60,658 | $181,762 |
2021 | $81,825 | $82,028 | $195,080 |
2021 | $90,273 | $90,516 | $213,559 |
2021 | $85,101 | $85,348 | $229,522 |
2021 | $96,929 | $97,253 | $230,655 |
2022 | $125,797 | $126,213 | $219,820 |
2022 | $156,637 | $157,194 | $206,240 |
2022 | $148,053 | $148,628 | $199,000 |
2022 | $168,789 | $169,506 | $205,651 |
2023 | $155,931 | $156,625 | $202,286 |
2023 | $142,867 | $143,553 | $210,760 |
2023 | $169,641 | $170,508 | $228,878 |
2023 | $162,437 | $163,291 | $231,975 |
2024 | $166,114 | $167,033 | $260,227 |
2024 | $181,902 | $182,951 | $269,232 |
2024 | $178,785 | $179,845 | $288,732 |
2024 | $189,910 | $191,077 | $312,002 |
2025 | $180,612 | $181,789 | $306,030 |
2025 | $164,236 | $165,352 | $304,223 |
2025 | $183,808 | $185,099 | $334,541 |
2025 | $186,391 | $187,728 | $354,555 |
2026 | $231,981 | $233,694 | $358,486 |
2026 | $235,450 | $237,234 | $395,539 |
2026 | $268,480 | $270,545 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 46.07% | 25.83% | 10.38% |
MSCI U.S. Investable Market Energy 25/50 Index | 46.16% | 25.95% | 10.46% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $13,243 |
|---|---|
Number of Portfolio Holdings | 115 |
Portfolio Turnover Rate | 8% |
Total Investment Advisory Fees (in thousands) | $102 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Coal & Consumable Fuels | 0.8% |
|---|---|
Integrated Oil & Gas | 37.3% |
Oil & Gas Drilling | 1.3% |
Oil & Gas Equipment & Services | 10.8% |
Oil & Gas Exploration & Production | 21.4% |
Oil & Gas Refining & Marketing | 13.7% |
Oil & Gas Storage & Transportation | 14.3% |
Other Assets and Liabilities—Net | 0.4% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5480
Vanguard Financials Index Fund
ETF Shares (VFH) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Financials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy and persistent inflation fueled volatility, as did Middle East tensions that disrupted energy supplies and raised oil prices.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
JPMorgan Chase (+20%), Goldman Sachs Group (+40%), and Bank of America (+25%) contributed the most to the benchmark’s return. They accounted for about 18% of the index at the end of the reporting period and added about 4 percentage points to its result.
Fiserv (–61%), S&P Global (–16%), and Coinbase Global (–38%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Financials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $11,324 | $11,329 | $10,232 |
2017 | $12,389 | $12,395 | $11,030 |
2017 | $11,789 | $11,797 | $11,271 |
2017 | $12,465 | $12,477 | $11,606 |
2017 | $13,952 | $13,969 | $12,514 |
2018 | $14,561 | $14,581 | $12,820 |
2018 | $14,014 | $14,037 | $12,966 |
2018 | $14,603 | $14,631 | $13,959 |
2018 | $13,833 | $13,862 | $13,205 |
2019 | $13,817 | $13,848 | $13,469 |
2019 | $13,521 | $13,556 | $13,288 |
2019 | $14,040 | $14,078 | $14,144 |
2019 | $15,726 | $15,772 | $15,258 |
2020 | $13,971 | $14,015 | $14,384 |
2020 | $12,194 | $12,241 | $14,801 |
2020 | $13,095 | $13,146 | $17,181 |
2020 | $14,771 | $14,828 | $18,176 |
2021 | $17,376 | $17,449 | $19,508 |
2021 | $20,352 | $20,443 | $21,356 |
2021 | $20,725 | $20,825 | $22,952 |
2021 | $20,752 | $20,857 | $23,066 |
2022 | $20,942 | $21,053 | $21,982 |
2022 | $19,291 | $19,399 | $20,624 |
2022 | $18,150 | $18,253 | $19,900 |
2022 | $19,897 | $20,008 | $20,565 |
2023 | $19,771 | $19,883 | $20,229 |
2023 | $17,393 | $17,495 | $21,076 |
2023 | $19,106 | $19,225 | $22,888 |
2023 | $20,022 | $20,151 | $23,198 |
2024 | $22,715 | $22,867 | $26,023 |
2024 | $23,484 | $23,647 | $26,923 |
2024 | $25,887 | $26,073 | $28,873 |
2024 | $29,593 | $29,815 | $31,200 |
2025 | $29,787 | $30,015 | $30,603 |
2025 | $29,149 | $29,376 | $30,422 |
2025 | $31,407 | $31,659 | $33,454 |
2025 | $31,047 | $31,302 | $35,455 |
2026 | $30,144 | $30,395 | $35,849 |
2026 | $30,479 | $30,741 | $39,554 |
2026 | $34,141 | $34,446 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 8.71% | 10.50% | 13.07% |
ETF Shares Market Price | 8.74% | 10.51% | 13.07% |
MSCI U.S. Investable Market Financials 25/50 Index | 8.80% | 10.59% | 13.17% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $14,772 |
|---|---|
Number of Portfolio Holdings | 432 |
Portfolio Turnover Rate | 6% |
Total Investment Advisory Fees (in thousands) | $150 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Banks | 30.1% |
|---|---|
Capital Markets | 25.6% |
Consumer Finance | 4.6% |
Financial Services | 21.8% |
Insurance | 14.2% |
Mortgage Real Estate Investment Trusts (REITs) | 0.7% |
Other Assets and Liabilities—Net | 3.0% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the Fund's shareholders approved a proposal to reclassify the diversification status of the Fund to nondiversified, as defined under the Investment Company Act of 1940, and to eliminate the Fund's related fundamental policy. The Fund added nondiversification risk as a principal investment risk.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR957
Vanguard Financials Index Fund
Admiral™ Shares (VFAIX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Financials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $9 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy and persistent inflation fueled volatility, as did Middle East tensions that disrupted energy supplies and raised oil prices.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
JPMorgan Chase (+20%), Goldman Sachs Group (+40%), and Bank of America (+25%) contributed the most to the benchmark’s return. They accounted for about 18% of the index at the end of the reporting period and added about 4 percentage points to its result.
Fiserv (–61%), S&P Global (–16%), and Coinbase Global (–38%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Financials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $113,234 | $113,286 | $102,323 |
2017 | $123,850 | $123,950 | $110,301 |
2017 | $117,873 | $117,966 | $112,713 |
2017 | $124,622 | $124,774 | $116,055 |
2017 | $139,503 | $139,692 | $125,136 |
2018 | $145,575 | $145,807 | $128,197 |
2018 | $140,122 | $140,372 | $129,658 |
2018 | $146,003 | $146,309 | $139,594 |
2018 | $138,295 | $138,618 | $132,050 |
2019 | $138,132 | $138,477 | $134,688 |
2019 | $135,206 | $135,558 | $132,882 |
2019 | $140,359 | $140,779 | $141,436 |
2019 | $157,231 | $157,723 | $152,576 |
2020 | $139,695 | $140,148 | $143,841 |
2020 | $121,949 | $122,407 | $148,014 |
2020 | $130,957 | $131,461 | $171,813 |
2020 | $147,727 | $148,277 | $181,762 |
2021 | $173,815 | $174,487 | $195,080 |
2021 | $203,549 | $204,429 | $213,559 |
2021 | $207,337 | $208,249 | $229,522 |
2021 | $207,574 | $208,574 | $230,655 |
2022 | $209,474 | $210,527 | $219,820 |
2022 | $193,007 | $193,986 | $206,240 |
2022 | $181,571 | $182,531 | $199,000 |
2022 | $199,081 | $200,082 | $205,651 |
2023 | $197,797 | $198,832 | $202,286 |
2023 | $174,008 | $174,946 | $210,760 |
2023 | $191,143 | $192,250 | $228,878 |
2023 | $200,343 | $201,507 | $231,975 |
2024 | $227,287 | $228,666 | $260,227 |
2024 | $234,970 | $236,472 | $269,232 |
2024 | $259,002 | $260,731 | $288,732 |
2024 | $296,122 | $298,153 | $312,002 |
2025 | $298,034 | $300,146 | $306,030 |
2025 | $291,666 | $293,756 | $304,223 |
2025 | $314,289 | $316,587 | $334,541 |
2025 | $310,668 | $313,018 | $354,555 |
2026 | $301,609 | $303,955 | $358,486 |
2026 | $304,961 | $307,409 | $395,539 |
2026 | $341,621 | $344,457 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 8.70% | 10.50% | 13.07% |
MSCI U.S. Investable Market Financials 25/50 Index | 8.80% | 10.59% | 13.17% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $14,772 |
|---|---|
Number of Portfolio Holdings | 432 |
Portfolio Turnover Rate | 6% |
Total Investment Advisory Fees (in thousands) | $150 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Banks | 30.1% |
|---|---|
Capital Markets | 25.6% |
Consumer Finance | 4.6% |
Financial Services | 21.8% |
Insurance | 14.2% |
Mortgage Real Estate Investment Trusts (REITs) | 0.7% |
Other Assets and Liabilities—Net | 3.0% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the Fund's shareholders approved a proposal to reclassify the diversification status of the Fund to nondiversified, as defined under the Investment Company Act of 1940, and to eliminate the Fund's related fundamental policy. The Fund added nondiversification risk as a principal investment risk.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5486
Vanguard Health Care Index Fund
ETF Shares (VHT) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Health Care Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Eli Lilly (+59%), Johnson & Johnson (+53%), and Merck & Co. (+82%) contributed the most to the benchmark’s return. They accounted for about 27% of the index at the end of the reporting period and added about 13 percentage points to its result.
Boston Scientific (–54%), Abbott Laboratories (–15%), and Zoetis (–50%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Health Care 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $9,534 | $9,536 | $10,232 |
2017 | $10,479 | $10,483 | $11,030 |
2017 | $10,685 | $10,690 | $11,271 |
2017 | $11,506 | $11,515 | $11,606 |
2017 | $11,886 | $11,897 | $12,514 |
2018 | $12,092 | $12,105 | $12,820 |
2018 | $12,087 | $12,102 | $12,966 |
2018 | $13,664 | $13,682 | $13,959 |
2018 | $13,738 | $13,759 | $13,205 |
2019 | $13,434 | $13,458 | $13,469 |
2019 | $12,778 | $12,801 | $13,288 |
2019 | $13,360 | $13,387 | $14,144 |
2019 | $14,722 | $14,751 | $15,258 |
2020 | $13,902 | $13,933 | $14,384 |
2020 | $15,630 | $15,664 | $14,801 |
2020 | $16,574 | $16,612 | $17,181 |
2020 | $17,266 | $17,309 | $18,176 |
2021 | $18,072 | $18,120 | $19,508 |
2021 | $19,333 | $19,391 | $21,356 |
2021 | $21,213 | $21,282 | $22,952 |
2021 | $20,142 | $20,211 | $23,066 |
2022 | $19,784 | $19,857 | $21,982 |
2022 | $19,717 | $19,792 | $20,624 |
2022 | $18,964 | $19,042 | $19,900 |
2022 | $20,906 | $20,998 | $20,565 |
2023 | $19,388 | $19,475 | $20,229 |
2023 | $19,522 | $19,614 | $21,076 |
2023 | $20,304 | $20,405 | $22,888 |
2023 | $19,899 | $20,003 | $23,198 |
2024 | $22,233 | $22,353 | $26,023 |
2024 | $22,003 | $22,129 | $26,923 |
2024 | $24,273 | $24,417 | $28,873 |
2024 | $23,008 | $23,149 | $31,200 |
2025 | $23,093 | $23,242 | $30,603 |
2025 | $20,775 | $20,914 | $30,422 |
2025 | $21,813 | $21,964 | $33,454 |
2025 | $25,298 | $25,478 | $35,455 |
2026 | $25,537 | $25,725 | $35,849 |
2026 | $24,253 | $24,436 | $39,554 |
2026 | $27,829 | $28,045 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 27.58% | 5.58% | 10.78% |
ETF Shares Market Price | 27.61% | 5.59% | 10.78% |
MSCI U.S. Investable Market Health Care 25/50 Index | 27.69% | 5.67% | 10.86% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $22,042 |
|---|---|
Number of Portfolio Holdings | 422 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $202 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Biotechnology | 23.7% |
|---|---|
Health Care Equipment & Supplies | 15.4% |
Health Care Providers & Services | 17.1% |
Health Care Technology | 0.8% |
Life Sciences Tools & Services | 9.6% |
Pharmaceuticals | 33.2% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the Fund's shareholders approved a proposal to reclassify the diversification status of the Fund to nondiversified, as defined under the Investment Company Act of 1940, and to eliminate the Fund's related fundamental policy. The Fund added nondiversification risk as a principal investment risk.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR956
Vanguard Health Care Index Fund
Admiral™ Shares (VHCIX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Health Care Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Eli Lilly (+59%), Johnson & Johnson (+53%), and Merck & Co. (+82%) contributed the most to the benchmark’s return. They accounted for about 27% of the index at the end of the reporting period and added about 13 percentage points to its result.
Boston Scientific (–54%), Abbott Laboratories (–15%), and Zoetis (–50%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Health Care 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $95,346 | $95,362 | $102,323 |
2017 | $104,792 | $104,827 | $110,301 |
2017 | $106,859 | $106,904 | $112,713 |
2017 | $115,074 | $115,153 | $116,055 |
2017 | $118,872 | $118,973 | $125,136 |
2018 | $120,915 | $121,051 | $128,197 |
2018 | $120,869 | $121,020 | $129,658 |
2018 | $136,638 | $136,821 | $139,594 |
2018 | $137,389 | $137,593 | $132,050 |
2019 | $134,350 | $134,583 | $134,688 |
2019 | $127,782 | $128,008 | $132,882 |
2019 | $133,622 | $133,867 | $141,436 |
2019 | $147,219 | $147,512 | $152,576 |
2020 | $139,027 | $139,328 | $143,841 |
2020 | $156,333 | $156,638 | $148,014 |
2020 | $165,770 | $166,123 | $171,813 |
2020 | $172,701 | $173,094 | $181,762 |
2021 | $180,757 | $181,198 | $195,080 |
2021 | $193,391 | $193,910 | $213,559 |
2021 | $212,196 | $212,815 | $229,522 |
2021 | $201,488 | $202,106 | $230,655 |
2022 | $197,921 | $198,571 | $219,820 |
2022 | $197,238 | $197,924 | $206,240 |
2022 | $189,717 | $190,421 | $199,000 |
2022 | $209,170 | $209,981 | $205,651 |
2023 | $193,985 | $194,749 | $202,286 |
2023 | $195,317 | $196,144 | $210,760 |
2023 | $203,156 | $204,046 | $228,878 |
2023 | $199,109 | $200,030 | $231,975 |
2024 | $222,465 | $223,534 | $260,227 |
2024 | $220,177 | $221,286 | $269,232 |
2024 | $242,881 | $244,171 | $288,732 |
2024 | $230,203 | $231,494 | $312,002 |
2025 | $231,074 | $232,418 | $306,030 |
2025 | $207,880 | $209,135 | $304,223 |
2025 | $218,269 | $219,637 | $334,541 |
2025 | $253,124 | $254,779 | $354,555 |
2026 | $255,518 | $257,246 | $358,486 |
2026 | $242,676 | $244,357 | $395,539 |
2026 | $278,453 | $280,446 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 27.57% | 5.59% | 10.78% |
MSCI U.S. Investable Market Health Care 25/50 Index | 27.69% | 5.67% | 10.86% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $22,042 |
|---|---|
Number of Portfolio Holdings | 422 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $202 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Biotechnology | 23.7% |
|---|---|
Health Care Equipment & Supplies | 15.4% |
Health Care Providers & Services | 17.1% |
Health Care Technology | 0.8% |
Life Sciences Tools & Services | 9.6% |
Pharmaceuticals | 33.2% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the Fund's shareholders approved a proposal to reclassify the diversification status of the Fund to nondiversified, as defined under the Investment Company Act of 1940, and to eliminate the Fund's related fundamental policy. The Fund added nondiversification risk as a principal investment risk.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5485
Vanguard Industrials Index Fund
ETF Shares (VIS) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Industrials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Caterpillar (+92%), GE Vernova (+47%), and RTX (+33%) contributed the most to the benchmark’s return. They accounted for about 13% of the index at the end of the reporting period and added about 6 percentage points to its result.
Uber Technologies (–19%), Axon Enterprise (–24%), and Boeing (–11%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | MSCI U.S. Investable Market Industrials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,716 | $10,716 | $10,232 |
2017 | $11,321 | $11,322 | $11,030 |
2017 | $11,545 | $11,548 | $11,271 |
2017 | $11,755 | $11,758 | $11,606 |
2017 | $12,871 | $12,881 | $12,514 |
2018 | $13,127 | $13,140 | $12,820 |
2018 | $12,933 | $12,950 | $12,966 |
2018 | $13,566 | $13,587 | $13,959 |
2018 | $12,681 | $12,702 | $13,205 |
2019 | $13,345 | $13,371 | $13,469 |
2019 | $12,733 | $12,761 | $13,288 |
2019 | $13,467 | $13,499 | $14,144 |
2019 | $14,662 | $14,703 | $15,258 |
2020 | $13,237 | $13,277 | $14,384 |
2020 | $12,262 | $12,306 | $14,801 |
2020 | $14,134 | $14,188 | $17,181 |
2020 | $16,135 | $16,200 | $18,176 |
2021 | $17,086 | $17,160 | $19,508 |
2021 | $19,521 | $19,611 | $21,356 |
2021 | $19,421 | $19,515 | $22,952 |
2021 | $19,015 | $19,111 | $23,066 |
2022 | $18,579 | $18,677 | $21,982 |
2022 | $17,488 | $17,585 | $20,624 |
2022 | $17,358 | $17,458 | $19,900 |
2022 | $18,921 | $19,037 | $20,565 |
2023 | $19,114 | $19,231 | $20,229 |
2023 | $18,416 | $18,533 | $21,076 |
2023 | $20,828 | $20,965 | $22,888 |
2023 | $20,654 | $20,794 | $23,198 |
2024 | $23,635 | $23,803 | $26,023 |
2024 | $24,274 | $24,451 | $26,923 |
2024 | $25,719 | $25,911 | $28,873 |
2024 | $28,470 | $28,687 | $31,200 |
2025 | $26,588 | $26,796 | $30,603 |
2025 | $27,715 | $27,937 | $30,422 |
2025 | $30,006 | $30,252 | $33,454 |
2025 | $30,644 | $30,902 | $35,455 |
2026 | $35,385 | $35,690 | $35,849 |
2026 | $35,357 | $35,670 | $39,554 |
2026 | $34,911 | $35,225 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 16.35% | 12.44% | 13.32% |
ETF Shares Market Price | 16.40% | 12.46% | 13.32% |
MSCI U.S. Investable Market Industrials 25/50 Index | 16.44% | 12.54% | 13.42% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $8,562 |
|---|---|
Number of Portfolio Holdings | 399 |
Portfolio Turnover Rate | 5% |
Total Investment Advisory Fees (in thousands) | $78 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Aerospace & Defense | 24.0% |
|---|---|
Air Freight & Logistics | 2.9% |
Building Products | 5.7% |
Commercial Services & Supplies | 5.5% |
Construction & Engineering | 4.5% |
Electrical Equipment | 12.6% |
Ground Transportation | 8.8% |
Industrial Conglomerates | 2.5% |
Machinery | 20.3% |
Marine Transportation | 0.2% |
Passenger Airlines | 1.8% |
Professional Services | 6.1% |
Trading Companies & Distributors | 4.7% |
Other Assets and Liabilities—Net | 0.4% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR953
Vanguard Industrials Index Fund
Admiral™ Shares (VINAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Industrials Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $10 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Caterpillar (+92%), GE Vernova (+47%), and RTX (+33%) contributed the most to the benchmark’s return. They accounted for about 13% of the index at the end of the reporting period and added about 6 percentage points to its result.
Uber Technologies (–19%), Axon Enterprise (–24%), and Boeing (–11%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | MSCI U.S. Investable Market Industrials 25/50 Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $107,155 | $107,162 | $102,323 |
2017 | $113,192 | $113,224 | $110,301 |
2017 | $115,447 | $115,484 | $112,713 |
2017 | $117,549 | $117,584 | $116,055 |
2017 | $128,709 | $128,814 | $125,136 |
2018 | $131,267 | $131,402 | $128,197 |
2018 | $129,330 | $129,495 | $129,658 |
2018 | $135,663 | $135,871 | $139,594 |
2018 | $126,800 | $127,018 | $132,050 |
2019 | $133,430 | $133,705 | $134,688 |
2019 | $127,330 | $127,614 | $132,882 |
2019 | $134,650 | $134,994 | $141,436 |
2019 | $146,620 | $147,026 | $152,576 |
2020 | $132,367 | $132,768 | $143,841 |
2020 | $122,639 | $123,058 | $148,014 |
2020 | $141,361 | $141,878 | $171,813 |
2020 | $161,389 | $162,000 | $181,762 |
2021 | $170,915 | $171,598 | $195,080 |
2021 | $195,268 | $196,110 | $213,559 |
2021 | $194,273 | $195,148 | $229,522 |
2021 | $190,200 | $191,108 | $230,655 |
2022 | $185,854 | $186,770 | $219,820 |
2022 | $174,928 | $175,846 | $206,240 |
2022 | $173,640 | $174,582 | $199,000 |
2022 | $189,309 | $190,369 | $205,651 |
2023 | $191,209 | $192,314 | $202,286 |
2023 | $184,213 | $185,333 | $210,760 |
2023 | $208,354 | $209,648 | $228,878 |
2023 | $206,617 | $207,945 | $231,975 |
2024 | $236,464 | $238,031 | $260,227 |
2024 | $242,852 | $244,507 | $269,232 |
2024 | $257,298 | $259,113 | $288,732 |
2024 | $284,828 | $286,870 | $312,002 |
2025 | $266,003 | $267,957 | $306,030 |
2025 | $277,271 | $279,372 | $304,223 |
2025 | $300,180 | $302,522 | $334,541 |
2025 | $306,563 | $309,016 | $354,555 |
2026 | $354,004 | $356,899 | $358,486 |
2026 | $353,712 | $356,699 | $395,539 |
2026 | $349,272 | $352,254 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 16.35% | 12.45% | 13.32% |
MSCI U.S. Investable Market Industrials 25/50 Index | 16.44% | 12.54% | 13.42% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $8,562 |
|---|---|
Number of Portfolio Holdings | 399 |
Portfolio Turnover Rate | 5% |
Total Investment Advisory Fees (in thousands) | $78 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Aerospace & Defense | 24.0% |
|---|---|
Air Freight & Logistics | 2.9% |
Building Products | 5.7% |
Commercial Services & Supplies | 5.5% |
Construction & Engineering | 4.5% |
Electrical Equipment | 12.6% |
Ground Transportation | 8.8% |
Industrial Conglomerates | 2.5% |
Machinery | 20.3% |
Marine Transportation | 0.2% |
Passenger Airlines | 1.8% |
Professional Services | 6.1% |
Trading Companies & Distributors | 4.7% |
Other Assets and Liabilities—Net | 0.4% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5482
Vanguard Information Technology Index Fund
ETF Shares (VGT) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Information Technology Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $11 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Apple (+37%), Micron Technology (+707%), and NVIDIA (+27%) contributed the most to the benchmark’s return. They accounted for about 38% of the index at the end of the reporting period and added about 15 percentage points to its result.
Microsoft (+1%), Oracle (–33%), and Intuit (–46%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | Information Technology Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,242 | $10,244 | $10,232 |
2017 | $11,367 | $11,372 | $11,030 |
2017 | $12,418 | $12,428 | $11,271 |
2017 | $12,993 | $13,005 | $11,606 |
2017 | $14,230 | $14,248 | $12,514 |
2018 | $15,320 | $15,341 | $12,820 |
2018 | $15,837 | $15,863 | $12,966 |
2018 | $17,608 | $17,643 | $13,959 |
2018 | $15,924 | $15,958 | $13,205 |
2019 | $16,894 | $16,932 | $13,469 |
2019 | $17,058 | $17,102 | $13,288 |
2019 | $18,788 | $18,842 | $14,144 |
2019 | $20,846 | $20,913 | $15,258 |
2020 | $20,847 | $20,920 | $14,384 |
2020 | $23,183 | $23,280 | $14,801 |
2020 | $29,257 | $29,391 | $17,181 |
2020 | $29,898 | $30,046 | $18,176 |
2021 | $31,890 | $32,058 | $19,508 |
2021 | $33,339 | $33,523 | $21,356 |
2021 | $38,267 | $38,485 | $22,952 |
2021 | $40,211 | $40,451 | $23,066 |
2022 | $36,389 | $36,620 | $21,982 |
2022 | $32,577 | $32,799 | $20,624 |
2022 | $31,570 | $31,795 | $19,900 |
2022 | $31,547 | $31,779 | $20,565 |
2023 | $31,992 | $32,233 | $20,229 |
2023 | $37,946 | $38,242 | $21,076 |
2023 | $40,559 | $40,883 | $22,888 |
2023 | $42,213 | $42,511 | $23,198 |
2024 | $47,441 | $47,786 | $26,023 |
2024 | $48,977 | $49,343 | $26,923 |
2024 | $52,719 | $53,127 | $28,873 |
2024 | $57,264 | $57,722 | $31,200 |
2025 | $55,100 | $55,549 | $30,603 |
2025 | $55,974 | $56,444 | $30,422 |
2025 | $64,328 | $64,887 | $33,454 |
2025 | $69,563 | $70,184 | $35,455 |
2026 | $67,233 | $67,847 | $35,849 |
2026 | $89,714 | $90,562 | $39,554 |
2026 | $89,406 | $90,267 | $40,277 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 38.99% | 18.50% | 24.49% |
ETF Shares Market Price | 38.91% | 18.50% | 24.49% |
Information Technology Spliced Index | 39.11% | 18.59% | 24.61% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $170,247 |
|---|---|
Number of Portfolio Holdings | 322 |
Portfolio Turnover Rate | 9% |
Total Investment Advisory Fees (in thousands) | $1,434 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Communications Equipment | 4.0% |
|---|---|
Electronic Equipment, Instruments & Components | 4.6% |
IT Services | 3.7% |
Semiconductors & Semiconductor Equipment | 41.9% |
Software | 26.0% |
Technology Hardware, Storage & Peripherals | 19.7% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR958
Vanguard Information Technology Index Fund
Admiral™ Shares (VITAX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Information Technology Index Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $11 | 0.09% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Apple (+37%), Micron Technology (+707%), and NVIDIA (+27%) contributed the most to the benchmark’s return. They accounted for about 38% of the index at the end of the reporting period and added about 15 percentage points to its result.
Microsoft (+1%), Oracle (–33%), and Intuit (–46%) detracted the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $100,000
Admiral Shares | Information Technology Spliced Index | MSCI US Investable Market 2500 Index | |
|---|---|---|---|
2016 | $100,000 | $100,000 | $100,000 |
2016 | $102,419 | $102,444 | $102,323 |
2017 | $113,677 | $113,722 | $110,301 |
2017 | $124,194 | $124,278 | $112,713 |
2017 | $129,937 | $130,052 | $116,055 |
2017 | $142,323 | $142,477 | $125,136 |
2018 | $153,214 | $153,408 | $128,197 |
2018 | $158,387 | $158,627 | $129,658 |
2018 | $176,115 | $176,426 | $139,594 |
2018 | $159,265 | $159,577 | $132,050 |
2019 | $168,959 | $169,323 | $134,688 |
2019 | $170,615 | $171,019 | $132,882 |
2019 | $187,909 | $188,422 | $141,436 |
2019 | $208,514 | $209,129 | $152,576 |
2020 | $208,514 | $209,196 | $143,841 |
2020 | $231,940 | $232,795 | $148,014 |
2020 | $292,719 | $293,909 | $171,813 |
2020 | $299,127 | $300,460 | $181,762 |
2021 | $319,068 | $320,583 | $195,080 |
2021 | $333,580 | $335,234 | $213,559 |
2021 | $382,893 | $384,854 | $229,522 |
2021 | $402,342 | $404,506 | $230,655 |
2022 | $364,073 | $366,195 | $219,820 |
2022 | $325,943 | $327,988 | $206,240 |
2022 | $315,885 | $317,950 | $199,000 |
2022 | $315,655 | $317,795 | $205,651 |
2023 | $320,078 | $322,327 | $202,286 |
2023 | $379,662 | $382,417 | $210,760 |
2023 | $405,805 | $408,834 | $228,878 |
2023 | $422,356 | $425,107 | $231,975 |
2024 | $474,668 | $477,855 | $260,227 |
2024 | $490,035 | $493,432 | $269,232 |
2024 | $527,466 | $531,268 | $288,732 |
2024 | $572,955 | $577,224 | $312,002 |
2025 | $551,294 | $555,490 | $306,030 |
2025 | $560,046 | $564,438 | $304,223 |
2025 | $643,630 | $648,869 | $334,541 |
2025 | $696,007 | $701,839 | $354,555 |
2026 | $672,695 | $678,471 | $358,486 |
2026 | $897,671 | $905,623 | $395,539 |
2026 | $894,563 | $902,674 | $402,772 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 38.99% | 18.50% | 24.50% |
Information Technology Spliced Index | 39.11% | 18.59% | 24.61% |
MSCI US Investable Market 2500 Index | 20.40% | 11.90% | 14.95% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $170,247 |
|---|---|
Number of Portfolio Holdings | 322 |
Portfolio Turnover Rate | 9% |
Total Investment Advisory Fees (in thousands) | $1,434 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Communications Equipment | 4.0% |
|---|---|
Electronic Equipment, Instruments & Components | 4.6% |
IT Services | 3.7% |
Semiconductors & Semiconductor Equipment | 41.9% |
Software | 26.0% |
Technology Hardware, Storage & Peripherals | 19.7% |
Other Assets and Liabilities—Net | 0.1% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR5487
Vanguard International Growth Fund
Investor Shares (VWIGX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard International Growth Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Investor Shares | $39 | 0.36% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
From a geographic perspective, the Fund lagged its benchmark across all regions. North America, the Pacific region, and Europe detracted the most.
The Fund lagged its benchmark in five of 11 industry sectors. Stock selection in consumer discretionary, financials, and communication services detracted the most from relative performance. Selection in health care and industrials, as well as an overweight allocation to information technology, contributed the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
Investor Shares | MSCI All Country World Index ex USA Net | |
|---|---|---|
2016 | $10,000 | $10,000 |
2016 | $9,562 | $9,747 |
2017 | $10,386 | $10,515 |
2017 | $11,838 | $11,370 |
2017 | $12,843 | $11,888 |
2017 | $13,580 | $12,436 |
2018 | $14,334 | $12,790 |
2018 | $14,293 | $12,470 |
2018 | $14,252 | $12,266 |
2018 | $12,856 | $11,427 |
2019 | $13,532 | $11,963 |
2019 | $13,118 | $11,689 |
2019 | $13,599 | $11,865 |
2019 | $14,877 | $12,706 |
2020 | $14,900 | $11,881 |
2020 | $16,136 | $11,288 |
2020 | $20,888 | $12,852 |
2020 | $23,559 | $13,916 |
2021 | $25,662 | $14,991 |
2021 | $25,787 | $16,117 |
2021 | $27,131 | $16,048 |
2021 | $25,199 | $15,188 |
2022 | $21,153 | $14,932 |
2022 | $18,371 | $14,117 |
2022 | $17,219 | $12,915 |
2022 | $18,088 | $13,385 |
2023 | $18,341 | $13,858 |
2023 | $18,746 | $13,919 |
2023 | $18,909 | $14,451 |
2023 | $18,824 | $14,625 |
2024 | $20,434 | $15,592 |
2024 | $21,450 | $16,249 |
2024 | $22,042 | $17,083 |
2024 | $22,319 | $16,531 |
2025 | $23,126 | $17,097 |
2025 | $24,044 | $18,484 |
2025 | $25,158 | $19,717 |
2025 | $25,644 | $20,835 |
2026 | $26,721 | $23,885 |
2026 | $27,183 | $24,541 |
2026 | $28,728 | $25,110 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Investor Shares | 14.19% | 1.15% | 11.13% |
MSCI All Country World Index ex USA Net | 27.35% | 9.37% | 9.64% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $44,766 |
|---|---|
Number of Portfolio Holdings | 131 |
Portfolio Turnover Rate | 25% |
Total Investment Advisory Fees (in thousands) | $43,804 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Asia | 40.1% |
|---|---|
Europe | 46.5% |
North America | 9.8% |
Oceania | 0.5% |
South America | 1.6% |
Other Assets and Liabilities—Net | 1.5% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR81
Vanguard International Growth Fund
Admiral™ Shares (VWILX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard International Growth Fund (the "Fund") for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Admiral Shares | $26 | 0.24% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund underperformed its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
From a geographic perspective, the Fund lagged its benchmark across all regions. North America, the Pacific region, and Europe detracted the most.
The Fund lagged its benchmark in five of 11 industry sectors. Stock selection in consumer discretionary, financials, and communication services detracted the most from relative performance. Selection in health care and industrials, as well as an overweight allocation to information technology, contributed the most.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $50,000
Admiral Shares | MSCI All Country World Index ex USA Net | |
|---|---|---|
2016 | $50,000 | $50,000 |
2016 | $47,830 | $48,735 |
2017 | $51,956 | $52,577 |
2017 | $59,244 | $56,851 |
2017 | $64,287 | $59,439 |
2017 | $68,006 | $62,182 |
2018 | $71,808 | $63,948 |
2018 | $71,635 | $62,350 |
2018 | $71,449 | $61,330 |
2018 | $64,473 | $57,134 |
2019 | $67,879 | $59,816 |
2019 | $65,826 | $58,447 |
2019 | $68,235 | $59,326 |
2019 | $74,684 | $63,531 |
2020 | $74,806 | $59,403 |
2020 | $81,048 | $56,440 |
2020 | $104,952 | $64,259 |
2020 | $118,397 | $69,581 |
2021 | $128,995 | $74,957 |
2021 | $129,656 | $80,583 |
2021 | $136,452 | $80,238 |
2021 | $126,785 | $75,942 |
2022 | $106,436 | $74,659 |
2022 | $92,474 | $70,585 |
2022 | $86,697 | $64,576 |
2022 | $91,109 | $66,926 |
2023 | $92,408 | $69,292 |
2023 | $94,468 | $69,593 |
2023 | $95,301 | $72,255 |
2023 | $94,908 | $73,124 |
2024 | $103,043 | $77,960 |
2024 | $108,209 | $81,246 |
2024 | $111,218 | $85,413 |
2024 | $112,653 | $82,654 |
2025 | $116,778 | $85,484 |
2025 | $121,419 | $92,418 |
2025 | $127,110 | $98,585 |
2025 | $129,597 | $104,175 |
2026 | $135,085 | $119,426 |
2026 | $137,438 | $122,703 |
2026 | $145,314 | $125,548 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Admiral Shares | 14.32% | 1.27% | 11.26% |
MSCI All Country World Index ex USA Net | 27.35% | 9.37% | 9.64% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $44,766 |
|---|---|
Number of Portfolio Holdings | 131 |
Portfolio Turnover Rate | 25% |
Total Investment Advisory Fees (in thousands) | $43,804 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Asia | 40.1% |
|---|---|
Europe | 46.5% |
North America | 9.8% |
Oceania | 0.5% |
South America | 1.6% |
Other Assets and Liabilities—Net | 1.5% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR581
Vanguard Morningstar Mega Cap Index Fund
ETF Shares (MGC) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Morningstar Mega Cap Index Fund (the "Fund") (formerly known as Vanguard Mega Cap Index Fund) for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $7 | 0.06% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Each of the benchmark’s 11 industry sectors posted positive returns for the 12 months. Technology, health care, and industrials contributed the most to the benchmark’s return.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | Morningstar US Mega Cap Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,184 | $10,185 | $10,233 |
2017 | $11,032 | $11,036 | $11,028 |
2017 | $11,331 | $11,336 | $11,265 |
2017 | $11,701 | $11,708 | $11,605 |
2017 | $12,604 | $12,612 | $12,514 |
2018 | $13,032 | $13,041 | $12,818 |
2018 | $13,023 | $13,033 | $12,965 |
2018 | $14,070 | $14,083 | $13,956 |
2018 | $13,500 | $13,511 | $13,202 |
2019 | $13,661 | $13,673 | $13,458 |
2019 | $13,578 | $13,590 | $13,279 |
2019 | $14,530 | $14,544 | $14,127 |
2019 | $15,707 | $15,725 | $15,231 |
2020 | $14,937 | $14,957 | $14,369 |
2020 | $15,629 | $15,654 | $14,780 |
2020 | $18,327 | $18,361 | $17,123 |
2020 | $18,907 | $18,944 | $18,115 |
2021 | $19,869 | $19,910 | $19,470 |
2021 | $21,923 | $21,971 | $21,279 |
2021 | $23,814 | $23,872 | $22,828 |
2021 | $24,113 | $24,175 | $22,913 |
2022 | $22,923 | $22,983 | $21,794 |
2022 | $21,497 | $21,557 | $20,429 |
2022 | $20,697 | $20,759 | $19,693 |
2022 | $21,342 | $21,412 | $20,334 |
2023 | $20,805 | $20,876 | $19,999 |
2023 | $22,487 | $22,569 | $20,821 |
2023 | $24,379 | $24,470 | $22,598 |
2023 | $24,996 | $25,082 | $22,901 |
2024 | $28,059 | $28,161 | $25,719 |
2024 | $29,166 | $29,279 | $26,584 |
2024 | $31,436 | $31,562 | $28,511 |
2024 | $33,589 | $33,728 | $30,815 |
2025 | $33,515 | $33,660 | $30,221 |
2025 | $33,405 | $33,555 | $30,045 |
2025 | $36,766 | $36,938 | $33,038 |
2025 | $39,479 | $39,670 | $34,985 |
2026 | $39,157 | $39,353 | $35,334 |
2026 | $43,946 | $44,172 | $39,010 |
2026 | $44,509 | $44,735 | $39,694 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 21.06% | 13.32% | 16.10% |
ETF Shares Market Price | 20.96% | 13.32% | 16.10% |
Morningstar US Mega Cap Index | 21.11% | 13.38% | 16.16% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $10,899 |
|---|---|
Number of Portfolio Holdings | 178 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $107 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 0.9% |
|---|---|
Consumer Discretionary | 11.9% |
Consumer Staples | 3.1% |
Energy | 2.5% |
Financials | 9.3% |
Health Care | 9.0% |
Industrials | 8.9% |
Real Estate | 0.9% |
Technology | 50.1% |
Telecommunications | 2.3% |
Utilities | 0.9% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the ETF Share class of the Fund was reduced.
The Fund's name changed from Vanguard Mega Cap Index Fund to Vanguard Morningstar Mega Cap Index Fund.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR3137
Vanguard Morningstar Mega Cap Index Fund
Institutional Shares (VMCTX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Morningstar Mega Cap Index Fund (the "Fund") (formerly known as Vanguard Mega Cap Index Fund) for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Institutional Shares | $6 | 0.05% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
Each of the benchmark’s 11 industry sectors posted positive returns for the 12 months. Technology, health care, and industrials contributed the most to the benchmark’s return.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $5,000,000
Institutional Shares | Morningstar US Mega Cap Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $5,000,000 | $5,000,000 | $5,000,000 |
2016 | $5,091,920 | $5,092,557 | $5,116,612 |
2017 | $5,516,425 | $5,517,768 | $5,513,817 |
2017 | $5,666,190 | $5,668,131 | $5,632,496 |
2017 | $5,851,154 | $5,854,007 | $5,802,313 |
2017 | $6,303,065 | $6,305,785 | $6,256,892 |
2018 | $6,516,816 | $6,520,455 | $6,408,855 |
2018 | $6,512,161 | $6,516,301 | $6,482,327 |
2018 | $7,036,391 | $7,041,340 | $6,977,843 |
2018 | $6,751,188 | $6,755,654 | $6,600,859 |
2019 | $6,830,749 | $6,836,269 | $6,728,954 |
2019 | $6,789,327 | $6,795,090 | $6,639,384 |
2019 | $7,265,284 | $7,272,113 | $7,063,661 |
2019 | $7,853,992 | $7,862,463 | $7,615,631 |
2020 | $7,469,511 | $7,478,285 | $7,184,422 |
2020 | $7,817,563 | $7,827,065 | $7,390,068 |
2020 | $9,168,139 | $9,180,701 | $8,561,505 |
2020 | $9,458,474 | $9,472,015 | $9,057,250 |
2021 | $9,940,067 | $9,954,802 | $9,735,081 |
2021 | $10,968,882 | $10,985,726 | $10,639,299 |
2021 | $11,915,560 | $11,935,934 | $11,414,050 |
2021 | $12,065,579 | $12,087,322 | $11,456,415 |
2022 | $11,470,756 | $11,491,537 | $10,896,787 |
2022 | $10,757,675 | $10,778,613 | $10,214,460 |
2022 | $10,357,965 | $10,379,471 | $9,846,677 |
2022 | $10,682,367 | $10,705,926 | $10,167,204 |
2023 | $10,413,119 | $10,437,864 | $9,999,579 |
2023 | $11,255,139 | $11,284,437 | $10,410,644 |
2023 | $12,202,268 | $12,235,111 | $11,298,765 |
2023 | $12,510,257 | $12,541,177 | $11,450,657 |
2024 | $14,044,654 | $14,080,741 | $12,859,424 |
2024 | $14,599,258 | $14,639,476 | $13,292,095 |
2024 | $15,735,388 | $15,781,197 | $14,255,636 |
2024 | $16,813,360 | $16,863,751 | $15,407,713 |
2025 | $16,776,790 | $16,830,203 | $15,110,339 |
2025 | $16,722,085 | $16,777,666 | $15,022,328 |
2025 | $18,405,396 | $18,468,830 | $16,518,955 |
2025 | $19,763,902 | $19,835,168 | $17,492,634 |
2026 | $19,603,475 | $19,676,548 | $17,666,856 |
2026 | $22,000,907 | $22,085,943 | $19,505,184 |
2026 | $22,282,513 | $22,367,293 | $19,846,901 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Institutional Shares | 21.07% | 13.34% | 16.12% |
Morningstar US Mega Cap Index | 21.11% | 13.38% | 16.16% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $10,899 |
|---|---|
Number of Portfolio Holdings | 178 |
Portfolio Turnover Rate | 7% |
Total Investment Advisory Fees (in thousands) | $107 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 0.9% |
|---|---|
Consumer Discretionary | 11.9% |
Consumer Staples | 3.1% |
Energy | 2.5% |
Financials | 9.3% |
Health Care | 9.0% |
Industrials | 8.9% |
Real Estate | 0.9% |
Technology | 50.1% |
Telecommunications | 2.3% |
Utilities | 0.9% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the Institutional Share class of the Fund was reduced.
The Fund's name changed from Vanguard Mega Cap Index Fund to Vanguard Morningstar Mega Cap Index Fund.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Institutional Investor Services • 800-523-1036
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR828
Vanguard Morningstar Mega Cap Value Index Fund
ETF Shares (MGV) NYSE Arca
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Morningstar Mega Cap Value Index Fund (the "Fund") (formerly known as Vanguard Mega Cap Value Index Fund) for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $7 | 0.06% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
The Fund’s benchmark outperformed its growth counterpart.
Of the benchmark’s 11 industry sectors, 10 recorded positive returns for the 12 months. Technology, health care, and financials contributed the most to the benchmark’s return. Consumer discretionary was the only sector that posted a negative return.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | Morningstar US Mega Cap Value Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $10,000 | $10,000 | $10,000 |
2016 | $10,393 | $10,395 | $10,233 |
2017 | $11,118 | $11,122 | $11,028 |
2017 | $11,001 | $11,006 | $11,265 |
2017 | $11,340 | $11,346 | $11,605 |
2017 | $12,324 | $12,333 | $12,514 |
2018 | $12,531 | $12,539 | $12,818 |
2018 | $12,325 | $12,334 | $12,965 |
2018 | $13,235 | $13,247 | $13,956 |
2018 | $13,183 | $13,195 | $13,202 |
2019 | $13,125 | $13,137 | $13,458 |
2019 | $12,824 | $12,835 | $13,279 |
2019 | $13,458 | $13,469 | $14,127 |
2019 | $14,678 | $14,693 | $15,231 |
2020 | $13,259 | $13,272 | $14,369 |
2020 | $13,025 | $13,044 | $14,780 |
2020 | $13,854 | $13,876 | $17,123 |
2020 | $14,873 | $14,901 | $18,115 |
2021 | $15,969 | $16,001 | $19,470 |
2021 | $18,058 | $18,097 | $21,279 |
2021 | $18,449 | $18,493 | $22,828 |
2021 | $18,168 | $18,214 | $22,913 |
2022 | $19,021 | $19,072 | $21,794 |
2022 | $19,087 | $19,144 | $20,429 |
2022 | $17,986 | $18,041 | $19,693 |
2022 | $19,805 | $19,874 | $20,334 |
2023 | $18,928 | $18,996 | $19,999 |
2023 | $18,591 | $18,659 | $20,821 |
2023 | $19,880 | $19,952 | $22,598 |
2023 | $20,024 | $20,080 | $22,901 |
2024 | $21,941 | $22,006 | $25,719 |
2024 | $22,816 | $22,889 | $26,584 |
2024 | $24,729 | $24,811 | $28,511 |
2024 | $26,017 | $26,108 | $30,815 |
2025 | $26,003 | $26,097 | $30,221 |
2025 | $25,062 | $25,156 | $30,045 |
2025 | $26,783 | $26,885 | $33,038 |
2025 | $28,050 | $28,163 | $34,985 |
2026 | $30,690 | $30,819 | $35,334 |
2026 | $31,766 | $31,901 | $39,010 |
2026 | $33,835 | $33,985 | $39,694 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
ETF Shares Net Asset Value | 26.33% | 12.90% | 12.96% |
ETF Shares Market Price | 26.31% | 12.90% | 12.96% |
Morningstar US Mega Cap Value Index | 26.41% | 12.94% | 13.01% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $13,908 |
|---|---|
Number of Portfolio Holdings | 127 |
Portfolio Turnover Rate | 12% |
Total Investment Advisory Fees (in thousands) | $121 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 2.0% |
|---|---|
Consumer Discretionary | 8.9% |
Consumer Staples | 7.5% |
Energy | 6.3% |
Financials | 22.7% |
Health Care | 16.7% |
Industrials | 15.3% |
Real Estate | 1.0% |
Technology | 12.8% |
Telecommunications | 4.3% |
Utilities | 2.3% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the ETF Share class of the Fund was reduced.
The Fund's name changed from Vanguard Mega Cap Value Index Fund to Vanguard Morningstar Mega Cap Value Index Fund.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR3139
Vanguard Morningstar Mega Cap Value Index Fund
Institutional Shares (VMVLX)
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Morningstar Mega Cap Value Index Fund (the "Fund") (formerly known as Vanguard Mega Cap Value Index Fund) for the period of September 1, 2025, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Institutional Shares | $6 | 0.05% |
How did the Fund perform during the reporting period?
For the 12 months ended August 31, 2026, the Fund performed roughly in line with its benchmark.
Global equities posted strong returns, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy, persistent inflation, and Middle East tensions that disrupted energy supplies and raised oil prices fueled volatility.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
The Fund’s benchmark outperformed its growth counterpart.
Of the benchmark’s 11 industry sectors, 10 recorded positive returns for the 12 months. Technology, health care, and financials contributed the most to the benchmark’s return. Consumer discretionary was the only sector that posted a negative return.
How did the Fund perform over the past 10 years?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: August 31, 2016, Through August 31, 2026
Initial Investment of $5,000,000
Institutional Shares | Morningstar US Mega Cap Value Index | Dow Jones U.S. Total Stock Market Float Adjusted Index | |
|---|---|---|---|
2016 | $5,000,000 | $5,000,000 | $5,000,000 |
2016 | $5,196,407 | $5,197,405 | $5,116,612 |
2017 | $5,559,727 | $5,560,910 | $5,513,817 |
2017 | $5,501,072 | $5,502,829 | $5,632,496 |
2017 | $5,670,599 | $5,673,084 | $5,802,313 |
2017 | $6,163,180 | $6,166,392 | $6,256,892 |
2018 | $6,266,204 | $6,269,670 | $6,408,855 |
2018 | $6,162,964 | $6,166,916 | $6,482,327 |
2018 | $6,617,971 | $6,623,280 | $6,977,843 |
2018 | $6,591,882 | $6,597,278 | $6,600,859 |
2019 | $6,562,535 | $6,568,706 | $6,728,954 |
2019 | $6,411,486 | $6,417,667 | $6,639,384 |
2019 | $6,728,904 | $6,734,554 | $7,063,661 |
2019 | $7,338,456 | $7,346,291 | $7,615,631 |
2020 | $6,629,182 | $6,636,112 | $7,184,422 |
2020 | $6,515,041 | $6,521,769 | $7,390,068 |
2020 | $6,930,670 | $6,937,993 | $8,561,505 |
2020 | $7,441,876 | $7,450,335 | $9,057,250 |
2021 | $7,989,822 | $8,000,255 | $9,735,081 |
2021 | $9,036,075 | $9,048,589 | $10,639,299 |
2021 | $9,232,975 | $9,246,423 | $11,414,050 |
2021 | $9,092,636 | $9,107,038 | $11,456,415 |
2022 | $9,520,162 | $9,535,975 | $10,896,787 |
2022 | $9,554,030 | $9,572,156 | $10,214,460 |
2022 | $9,002,889 | $9,020,713 | $9,846,677 |
2022 | $9,915,375 | $9,937,219 | $10,167,204 |
2023 | $9,475,707 | $9,497,809 | $9,999,579 |
2023 | $9,307,445 | $9,329,528 | $10,410,644 |
2023 | $9,952,379 | $9,976,185 | $11,298,765 |
2023 | $10,023,750 | $10,039,930 | $11,450,657 |
2024 | $10,984,213 | $11,003,000 | $12,859,424 |
2024 | $11,423,556 | $11,444,521 | $13,292,095 |
2024 | $12,380,897 | $12,405,653 | $14,255,636 |
2024 | $13,026,736 | $13,054,147 | $15,407,713 |
2025 | $13,019,703 | $13,048,273 | $15,110,339 |
2025 | $12,549,230 | $12,577,811 | $15,022,328 |
2025 | $13,410,377 | $13,442,619 | $16,518,955 |
2025 | $14,046,010 | $14,081,362 | $17,492,634 |
2026 | $15,367,957 | $15,409,565 | $17,666,856 |
2026 | $15,906,657 | $15,950,544 | $19,505,184 |
2026 | $16,942,589 | $16,992,749 | $19,846,901 |
Average Annual Total Returns
1 Year | 5 Years | 10 Years | |
|---|---|---|---|
Institutional Shares | 26.34% | 12.91% | 12.98% |
Morningstar US Mega Cap Value Index | 26.41% | 12.94% | 13.01% |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 20.15% | 11.70% | 14.78% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $13,908 |
|---|---|
Number of Portfolio Holdings | 127 |
Portfolio Turnover Rate | 12% |
Total Investment Advisory Fees (in thousands) | $121 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Basic Materials | 2.0% |
|---|---|
Consumer Discretionary | 8.9% |
Consumer Staples | 7.5% |
Energy | 6.3% |
Financials | 22.7% |
Health Care | 16.7% |
Industrials | 15.3% |
Real Estate | 1.0% |
Technology | 12.8% |
Telecommunications | 4.3% |
Utilities | 2.3% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
During the reporting period, the expense ratio for the Institutional Share class of the Fund was reduced.
The Fund's name changed from Vanguard Mega Cap Value Index Fund to Vanguard Morningstar Mega Cap Value Index Fund.
This is a summary of certain changes to the Fund since August 31, 2025. For more complete information, you may review the Fund’s next prospectus, which we expect to be available by December 31, 2026, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Institutional Investor Services • 800-523-1036
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
AR839
Vanguard Developed Markets ex-US Growth Index ETF
ETF Shares (VDG) Cboe BZX Exchange, Inc.
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Developed Markets ex-US Growth Index ETF (the "Fund") for the period of April 14, 2026, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last period?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $3Footnote Reference1 | 0.08%Footnote Reference2 |
| Footnote | Description |
Footnote1 | Costs would be higher for a full year. |
Footnote2 | Annualized. |
How did the Fund perform during the reporting period?
From its inception on April 14, 2026, through August 31, 2026, the ETF underperformed its benchmark, largely because of fair-value pricing.
Global equities posted strong returns for the 12 months ended August 31, 2026, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy and persistent inflation fueled volatility, as did Middle East tensions that disrupted energy supplies and raised oil prices.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
For the benchmark, seven of the 11 sectors posted positive returns. Strong performance from the two sectors with the heaviest weights—information technology and financials—contributed most to the benchmark's return.
By region, the Pacific, the second largest region by weight, contributed the most to the benchmark’s performance. Europe, the largest region, also contributed positively.
How did the Fund perform since inception?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: April 14, 2026, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | S&P Developed Ex-U.S. LargeMidCap Growth (USD) NTR | MSCI All Country World Index ex USA Net | |
|---|---|---|---|
4/14/26 | $10,000 | $10,000 | $10,000 |
2026 | $10,923 | $10,982 | $10,755 |
Average Annual Total Returns
Since Inception 4/14/26 | |
|---|---|
ETF Shares Net Asset Value | 9.23% |
ETF Shares Market Price | 9.46% |
S&P Developed Ex-U.S. LargeMidCap Growth (USD) NTR | 9.82% |
MSCI All Country World Index ex USA Net | 7.55% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $33 |
|---|---|
Number of Portfolio Holdings | 629 |
Portfolio Turnover Rate | 1% |
Total Investment Advisory Fees (in thousands) | $0 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Asia | 34.4% |
|---|---|
Europe | 48.8% |
North America | 11.8% |
Oceania | 4.8% |
Other Assets and Liabilities—Net | 0.2% |
This table reflects the Fund's investments, including short-term investments and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
ARV071
Vanguard Developed Markets ex-US Value Index ETF
ETF Shares (VDV) Cboe BZX Exchange, Inc.
Annual Shareholder Report | August 31, 2026
This annual shareholder report contains important information about Vanguard Developed Markets ex-US Value Index ETF (the "Fund") for the period of April 14, 2026, to August 31, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
What were the Fund costs for the last period?
(based on a hypothetical $10,000 investment)
Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
ETF Shares | $3Footnote Reference1 | 0.08%Footnote Reference2 |
| Footnote | Description |
Footnote1 | Costs would be higher for a full year. |
Footnote2 | Annualized. |
How did the Fund perform during the reporting period?
From its inception on April 14, 2026, through August 31, 2026, the ETF underperformed its benchmark, largely because of fair-value pricing.
Global equities posted strong returns for the 12 months ended August 31, 2026, while global bonds struggled. Resilient growth and corporate earnings supported stocks, though shifting U.S. trade policy and persistent inflation fueled volatility, as did Middle East tensions that disrupted energy supplies and raised oil prices.
Some central banks, including those in the United States and the United Kingdom, lowered rates. However, developed-market government bond yields generally rose amid concerns about borrowing, inflation, and monetary policy.
For the benchmark, eight of 11 sectors posted positive returns. Financials, the largest sector by weight in the index, contributed the most to returns, followed by top-performing information technology.
By region, the Pacific, the second largest region by weight, contributed the most to the benchmark’s performance. Europe, the largest region by weight in the index, also contributed positively.
How did the Fund perform since inception?
Keep in mind that the Fund's past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447. The graph and returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: April 14, 2026, Through August 31, 2026
Initial Investment of $10,000
ETF Shares Net Asset Value | S&P Developed Ex-U.S. LargeMidCap Value (USD) NTR | MSCI All Country World Index ex USA Net | |
|---|---|---|---|
4/14/26 | $10,000 | $10,000 | $10,000 |
2026 | $10,586 | $10,630 | $10,755 |
Average Annual Total Returns
Since Inception 4/14/26 | |
|---|---|
ETF Shares Net Asset Value | 5.86% |
ETF Shares Market Price | 6.39% |
S&P Developed Ex-U.S. LargeMidCap Value (USD) NTR | 6.30% |
MSCI All Country World Index ex USA Net | 7.55% |
Fund Statistics (as of August 31, 2026)
Fund Net Assets (in millions) | $32 |
|---|---|
Number of Portfolio Holdings | 794 |
Portfolio Turnover Rate | 1% |
Total Investment Advisory Fees (in thousands) | $0 |
Portfolio Composition % of Net Assets (as of August 31, 2026)
Asia | 35.0% |
|---|---|
Europe | 46.6% |
North America | 11.3% |
Oceania | 6.8% |
Other Assets and Liabilities—Net | 0.3% |
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
ARV070
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.
The Registrant's Board of Trustees has determined that Sarah Bloom Raskin, Peter F. Volanakis, Tara Bunch and John Murphy, each a member of the Registrant's Audit and Risk Committee, are Audit Committee Financial Experts and are independent.
Item 4: Principal Accountant Fees and Services.
Includes fees billed in connection with services to the Registrant only.
| Fiscal Year Ended August 31, 2026 | Fiscal Year Ended August 31, 2025 | |||||||
| (a) Audit Fees. | $ | 950,000 | $ | 662,000 | ||||
| (b) Audit-Related Fees. | 0 | 0 | ||||||
| (c) Tax Fees. | 0 | 0 | ||||||
| (d) All Other Fees. | 0 | 0 | ||||||
| Total. | $ | 950,000 | $ | 662,000 | ||||
(e) (1) Pre-Approval Policies. The audit committee is responsible for pre-approving all audit and non-audit services provided by PwC to: (i) the Vanguard funds; and (ii) Vanguard, or any entity controlled by Vanguard that provides ongoing services to the Vanguard funds. All services provided to Vanguard entities by the independent auditor, whether or not they are subject to preapproval, must be disclosed to the audit committee. The audit committee chair may preapprove any permissible audit and non-audit services as long as any preapproval is brought to the attention of the full audit committee at the next scheduled meeting.
(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.
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.
| Fiscal Year Ended August 31, 2026 | Fiscal Year Ended August 31, 2025 | |||||||
| Non-audit fees to the Registrant only, listed as (b) through (d) above. | $ | 0 | $ | 0 | ||||
| Non-audit Fees to other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation. | ||||||||
| Audit-Related Fees. | $ | 6,245,863 | $ | 3,710,837 | ||||
| Tax Fees. | $ | 1,966,783 | $ | 1,775,524 | ||||
| All Other Fees. | $ | 0 | $ | 50,000 | ||||
| Total. | $ | 8,235,950 | $ | 5,536,360 | ||||
(h) For the most recent fiscal year, the Audit and Risk 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: Sarah Bloom Raskin, Peter F. Volanakis, Tara Bunch, John Murphy, and Barbara Venneman.
Item 6: Investments.
Not applicable. The complete schedule of investments is included in the financial statements filed under Item 7 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Financial Statements
For the year ended August 31, 2026
Vanguard FTSE Social Index Fund
Contents
|
1 | |
|
17 | |
|
18 | |
FTSE Social Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.7%) | |||
|
Basic Materials (1.4%) | |||
|
Linde plc |
246,822 |
120,839 | |
|
Newmont Corp. (XNYS) |
571,295 |
72,018 | |
|
Freeport-McMoRan Inc. |
765,836 |
58,004 | |
|
Air Products & Chemicals Inc. |
117,224 |
36,276 | |
|
Fastenal Co. |
614,859 |
30,319 | |
|
Nucor Corp. |
117,980 |
29,453 | |
|
Steel Dynamics Inc. |
72,127 |
16,778 | |
|
International Flavors & Fragrances Inc. |
136,852 |
11,814 | |
|
International Paper Co. |
280,783 |
10,650 | |
|
Southern Copper Corp. |
49,854 |
10,413 | |
|
Avery Dennison Corp. |
41,025 |
7,143 | |
|
403,707 | |||
|
Consumer Discretionary (13.8%) | |||
|
* |
Amazon.com Inc. |
5,192,432 |
1,348,838 |
|
* |
Tesla Inc. |
1,563,641 |
575,342 |
|
Costco Wholesale Corp. |
237,541 |
224,213 | |
|
* |
Netflix Inc. |
2,245,777 |
182,020 |
|
Home Depot Inc. |
533,930 |
175,038 | |
|
Walt Disney Co. |
949,652 |
102,135 | |
|
McDonald's Corp. |
380,124 |
100,178 | |
|
Booking Holdings Inc. |
414,375 |
82,498 | |
|
* |
Uber Technologies Inc. |
1,048,636 |
79,329 |
|
TJX Cos. Inc. |
592,185 |
79,300 | |
|
Starbucks Corp. |
610,671 |
64,884 | |
|
Lowe's Cos. Inc. |
300,101 |
61,431 | |
|
* |
MercadoLibre Inc. |
25,117 |
48,632 |
|
* |
Spotify Technology SA |
84,544 |
45,960 |
|
* |
Airbnb Inc. Class A |
221,337 |
40,553 |
|
Marriott International Inc. Class A |
116,752 |
39,901 | |
|
* |
O'Reilly Automotive Inc. |
444,232 |
39,448 |
|
Target Corp. |
242,956 |
39,087 | |
|
Ross Stores Inc. |
169,104 |
38,647 | |
|
Hilton Worldwide Holdings Inc. |
119,445 |
37,778 | |
|
* |
Warner Bros Discovery Inc. |
1,287,740 |
36,739 |
|
Royal Caribbean Cruises Ltd. |
134,583 |
36,168 | |
|
Ford Motor Co. |
2,092,117 |
29,164 | |
|
* |
Carvana Co. |
371,045 |
27,257 |
|
* |
AutoZone Inc. |
8,812 |
26,359 |
|
* |
Chipotle Mexican Grill Inc. |
683,420 |
25,990 |
|
Garmin Ltd. |
87,939 |
24,984 | |
|
NIKE Inc. Class B |
631,644 |
24,672 | |
|
eBay Inc. |
237,871 |
24,634 | |
|
Yum! Brands Inc. |
147,925 |
22,678 | |
|
* |
Take-Two Interactive Software Inc. |
98,027 |
21,537 |
|
DR Horton Inc. |
134,526 |
19,447 | |
|
Expedia Group Inc. |
61,072 |
19,367 | |
|
Carnival Corp. Ltd. |
682,723 |
16,310 | |
|
* |
Copart Inc. |
472,082 |
15,574 |
|
* |
Live Nation Entertainment Inc. |
85,572 |
15,394 |
|
Dollar General Corp. |
117,741 |
14,924 | |
|
Williams-Sonoma Inc. |
62,544 |
14,276 | |
|
* |
Roblox Corp. Class A |
339,909 |
14,035 |
|
Estee Lauder Cos. Inc. Class A |
132,058 |
13,510 | |
|
Omnicom Group Inc. |
151,518 |
13,262 | |
|
PulteGroup Inc. |
101,223 |
12,786 | |
|
* |
Dollar Tree Inc. |
99,166 |
12,553 |
|
* |
Ulta Beauty Inc. |
23,269 |
12,498 |
|
* |
Liberty Media Corp.-Liberty Formula One Class C |
116,101 |
11,604 |
|
* |
Coupang Inc. |
666,724 |
10,708 |
1
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
Genuine Parts Co. |
73,506 |
9,973 | |
|
Lennar Corp. Class A |
108,930 |
9,162 | |
|
* |
NVR Inc. |
1,410 |
8,904 |
|
* |
Burlington Stores Inc. |
33,519 |
8,707 |
|
Best Buy Co. Inc. |
105,293 |
8,439 | |
|
* |
Rivian Automotive Inc. Class A |
476,710 |
7,656 |
|
Fox Corp. Class A |
106,308 |
7,160 | |
|
* |
Deckers Outdoor Corp. |
75,450 |
6,570 |
|
* |
Lululemon Athletica Inc. |
53,428 |
6,425 |
|
News Corp. Class A |
197,613 |
6,069 | |
|
Rollins Inc. |
159,175 |
5,741 | |
|
Domino's Pizza Inc. |
15,965 |
5,461 | |
|
* |
Aptiv plc |
113,368 |
5,074 |
|
* |
United Airlines Holdings Inc. |
43,571 |
4,705 |
|
Fox Corp. Class B |
73,610 |
4,433 | |
|
* |
Trade Desk Inc. Class A |
224,051 |
3,074 |
|
Southwest Airlines Co. |
65,613 |
2,528 | |
|
News Corp. Class B |
66,000 |
2,271 | |
|
* |
Liberty Media Corp.-Liberty Formula One Class A |
12,821 |
1,180 |
|
Lennar Corp. Class B |
5,271 |
434 | |
|
4,035,608 | |||
|
Consumer Staples (3.4%) | |||
|
Coca-Cola Co. |
2,080,385 |
184,468 | |
|
Procter & Gamble Co. |
1,248,194 |
181,138 | |
|
PepsiCo Inc. |
730,568 |
102,528 | |
|
CVS Health Corp. |
686,978 |
64,514 | |
|
McKesson Corp. |
65,651 |
58,122 | |
|
Mondelez International Inc. Class A |
687,185 |
42,654 | |
|
Colgate-Palmolive Co. |
425,799 |
38,245 | |
|
* |
Monster Beverage Corp. |
750,436 |
34,460 |
|
Cencora Inc. |
99,946 |
32,342 | |
|
Corteva Inc. |
359,727 |
30,444 | |
|
Cardinal Health Inc. |
125,314 |
29,401 | |
|
Keurig Dr Pepper Inc. |
693,598 |
22,098 | |
|
Archer-Daniels-Midland Co. |
256,728 |
20,869 | |
|
Sysco Corp. |
256,003 |
20,757 | |
|
Kenvue Inc. |
1,014,699 |
19,157 | |
|
Kimberly-Clark Corp. |
176,773 |
19,083 | |
|
Kroger Co. |
298,323 |
17,165 | |
|
Hershey Co. |
78,255 |
13,789 | |
|
Church & Dwight Co. Inc. |
126,749 |
12,647 | |
|
General Mills Inc. |
285,360 |
11,757 | |
|
Kraft Heinz Co. |
457,645 |
11,748 | |
|
Tyson Foods Inc. Class A |
147,281 |
8,121 | |
|
McCormick & Co. Inc. |
136,346 |
7,393 | |
|
982,900 | |||
|
Energy (0.0%) | |||
|
* |
First Solar Inc. |
54,435 |
10,990 |
|
Financials (9.4%) | |||
|
JPMorgan Chase & Co. (XNYS) |
1,431,192 |
509,533 | |
|
Bank of America Corp. (XNYS) |
3,540,058 |
219,271 | |
|
Goldman Sachs Group Inc. (XNYS) |
144,649 |
148,395 | |
|
Morgan Stanley |
599,901 |
127,971 | |
|
Citigroup Inc. (XNYS) |
911,919 |
120,027 | |
|
Charles Schwab Corp. |
874,860 |
96,077 | |
|
S&P Global Inc. |
158,238 |
68,966 | |
|
Progressive Corp. |
312,680 |
68,189 | |
|
Chubb Ltd. |
188,343 |
63,773 | |
|
Bank of New York Mellon Corp. |
367,168 |
59,217 | |
|
Blackstone Inc. |
398,545 |
57,088 | |
|
CME Group Inc. |
193,412 |
55,219 | |
|
PNC Financial Services Group Inc. |
214,947 |
51,508 | |
|
US Bancorp |
833,036 |
51,298 | |
|
Marsh & McLennan Cos. Inc. |
258,152 |
48,997 | |
|
Intercontinental Exchange Inc. |
300,814 |
48,341 | |
|
* |
Robinhood Markets Inc. Class A |
411,217 |
43,100 |
|
Travelers Cos. Inc. |
113,483 |
41,527 | |
|
Moody's Corp. |
80,351 |
40,548 | |
2
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
Aon plc Class A (XNYS) |
111,394 |
35,815 | |
|
Arthur J Gallagher & Co. |
136,467 |
35,775 | |
|
Allstate Corp. |
137,298 |
35,395 | |
|
Truist Financial Corp. |
667,219 |
33,081 | |
|
Apollo Global Management Inc. |
224,729 |
30,693 | |
|
Aflac Inc. |
243,707 |
28,233 | |
|
MetLife Inc. |
289,242 |
27,527 | |
|
State Street Corp. |
143,189 |
27,404 | |
|
* |
NU Holdings Ltd. Class A |
1,855,997 |
27,005 |
|
Ameriprise Financial Inc. |
48,554 |
26,856 | |
|
Fifth Third Bancorp |
484,078 |
26,029 | |
|
Nasdaq Inc. |
239,230 |
23,590 | |
|
Interactive Brokers Group Inc. Class A |
232,318 |
22,602 | |
|
* |
Coinbase Global Inc. Class A |
117,582 |
22,120 |
|
Prudential Financial Inc. |
186,225 |
21,900 | |
|
American International Group Inc. |
282,620 |
21,581 | |
|
MSCI Inc. |
37,654 |
21,487 | |
|
Hartford Insurance Group Inc. |
146,499 |
20,126 | |
|
M&T Bank Corp. |
78,554 |
18,377 | |
|
* |
Arch Capital Group Ltd. |
186,070 |
18,248 |
|
Northern Trust Corp. |
98,299 |
18,240 | |
|
Huntington Bancshares Inc. |
1,078,167 |
17,989 | |
|
Willis Towers Watson plc |
50,501 |
17,097 | |
|
Cboe Global Markets Inc. |
56,070 |
16,832 | |
|
Raymond James Financial Inc. |
90,032 |
16,041 | |
|
LPL Financial Holdings Inc. |
42,848 |
15,860 | |
|
Citizens Financial Group Inc. |
226,151 |
15,575 | |
|
Ares Management Corp. Class A |
105,338 |
15,081 | |
|
Cincinnati Financial Corp. |
81,475 |
13,843 | |
|
Regions Financial Corp. |
457,023 |
13,656 | |
|
Credicorp Ltd. |
36,351 |
13,318 | |
|
Principal Financial Group Inc. |
114,538 |
12,618 | |
|
T Rowe Price Group Inc. |
112,719 |
12,543 | |
|
* |
SoFi Technologies Inc. |
675,541 |
12,079 |
|
* |
Markel Group Inc. |
6,615 |
11,926 |
|
Brown & Brown Inc. |
157,867 |
11,393 | |
|
Broadridge Financial Solutions Inc. |
61,708 |
11,254 | |
|
KeyCorp |
495,581 |
10,710 | |
|
First Citizens BancShares Inc. Class A |
4,284 |
9,272 | |
|
W R Berkley Corp. |
121,369 |
8,200 | |
|
Everest Group Ltd. |
21,187 |
7,938 | |
|
Equitable Holdings Inc. |
149,625 |
7,501 | |
|
Fidelity National Financial Inc. |
136,257 |
6,329 | |
|
2,738,184 | |||
|
Health Care (9.4%) | |||
|
Eli Lilly & Co. |
427,335 |
494,311 | |
|
AbbVie Inc. |
947,687 |
243,006 | |
|
Merck & Co. Inc. |
1,324,228 |
195,668 | |
|
UnitedHealth Group Inc. |
483,335 |
188,215 | |
|
Amgen Inc. |
288,909 |
124,196 | |
|
Thermo Fisher Scientific Inc. |
199,004 |
122,805 | |
|
Abbott Laboratories |
927,531 |
102,362 | |
|
Gilead Sciences Inc. |
664,969 |
97,312 | |
|
Pfizer Inc. |
3,047,789 |
86,740 | |
|
* |
Vertex Pharmaceuticals Inc. |
136,087 |
74,102 |
|
Bristol-Myers Squibb Co. |
1,093,090 |
73,029 | |
|
Danaher Corp. |
338,245 |
72,236 | |
|
* |
Intuitive Surgical Inc. |
188,683 |
71,107 |
|
Medtronic plc |
686,558 |
62,237 | |
|
Stryker Corp. |
185,102 |
59,936 | |
|
Elevance Health Inc. (XNYS) |
112,907 |
44,321 | |
|
Regeneron Pharmaceuticals Inc. |
54,101 |
43,231 | |
|
Cigna Group |
139,763 |
38,586 | |
|
* |
Boston Scientific Corp. |
793,670 |
38,334 |
|
HCA Healthcare Inc. |
79,938 |
33,130 | |
|
Becton Dickinson & Co. |
152,144 |
28,620 | |
|
* |
Edwards Lifesciences Corp. |
305,089 |
27,687 |
|
Humana Inc. |
64,285 |
24,636 | |
|
* |
IDEXX Laboratories Inc. |
42,308 |
23,552 |
3
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Natera Inc. |
73,089 |
23,532 |
|
* |
IQVIA Holdings Inc. |
89,069 |
23,264 |
|
Agilent Technologies Inc. |
151,173 |
23,214 | |
|
* |
Veeva Systems Inc. Class A |
79,859 |
22,815 |
|
* |
Waters Corp. |
52,611 |
21,814 |
|
* |
Dexcom Inc. |
205,327 |
18,697 |
|
ResMed Inc. |
77,766 |
18,672 | |
|
* |
Illumina Inc. |
81,319 |
17,372 |
|
Zoetis Inc. |
225,278 |
17,369 | |
|
GE HealthCare Technologies Inc. |
243,098 |
17,316 | |
|
* |
Alnylam Pharmaceuticals Inc. |
71,341 |
17,171 |
|
* |
Biogen Inc. |
78,882 |
17,090 |
|
* |
Centene Corp. |
264,059 |
16,990 |
|
Labcorp Holdings Inc. |
43,908 |
14,606 | |
|
Quest Diagnostics Inc. |
59,102 |
14,202 | |
|
* |
Insmed Inc. |
114,813 |
13,987 |
|
Royalty Pharma plc Class A |
221,430 |
13,598 | |
|
West Pharmaceutical Services Inc. |
37,423 |
12,765 | |
|
STERIS plc |
52,394 |
12,189 | |
|
* |
Incyte Corp. |
88,678 |
10,927 |
|
Zimmer Biomet Holdings Inc. |
103,598 |
10,364 | |
|
* |
Cooper Cos. Inc. |
104,116 |
7,298 |
|
* |
Insulet Corp. |
37,058 |
5,509 |
|
*,1 |
Hologic Inc. CVR |
28,338 |
— |
|
2,740,120 | |||
|
Industrials (6.3%) | |||
|
Visa Inc. Class A (XNYS) |
778,821 |
295,461 | |
|
Mastercard Inc. Class A |
432,382 |
254,807 | |
|
American Express Co. |
284,194 |
93,832 | |
|
Deere & Co. |
132,148 |
86,545 | |
|
Capital One Financial Corp. |
333,698 |
71,582 | |
|
Accenture plc Class A |
328,512 |
62,338 | |
|
Automatic Data Processing Inc. |
214,588 |
61,407 | |
|
Trane Technologies plc |
118,248 |
52,549 | |
|
Johnson Controls International plc |
327,658 |
45,295 | |
|
Illinois Tool Works Inc. |
153,963 |
42,397 | |
|
United Parcel Service Inc. Class B (XNYS) |
399,762 |
41,667 | |
|
FedEx Corp. |
117,190 |
38,368 | |
|
Cintas Corp. |
182,520 |
36,831 | |
|
United Rentals Inc. |
33,410 |
34,680 | |
|
PACCAR Inc. |
276,509 |
34,323 | |
|
CRH plc |
357,836 |
33,740 | |
|
* |
Keysight Technologies Inc. |
91,406 |
29,497 |
|
Comfort Systems USA Inc. |
18,653 |
28,831 | |
|
Carrier Global Corp. |
417,966 |
24,334 | |
|
* |
Axon Enterprise Inc. |
41,354 |
23,430 |
|
Ferguson Enterprises Inc. |
102,419 |
22,994 | |
|
* |
Block Inc. (XNYS) |
278,702 |
22,859 |
|
Paychex Inc. |
172,314 |
21,943 | |
|
Old Dominion Freight Line Inc. |
99,916 |
19,979 | |
|
Vulcan Materials Co. |
69,384 |
18,705 | |
|
* |
Rocket Lab Corp. |
287,488 |
18,376 |
|
Ingersoll Rand Inc. (XNYS) |
209,489 |
16,141 | |
|
PayPal Holdings Inc. (XNGS) |
297,515 |
15,669 | |
|
* |
Mettler-Toledo International Inc. |
10,817 |
15,199 |
|
* |
Fiserv Inc. |
283,848 |
15,132 |
|
Otis Worldwide Corp. |
205,633 |
14,627 | |
|
* |
Fair Isaac Corp. |
12,085 |
13,864 |
|
Synchrony Financial |
179,765 |
13,856 | |
|
Dover Corp. |
71,335 |
13,855 | |
|
* |
Corpay Inc. |
34,129 |
13,798 |
|
Verisk Analytics Inc. |
70,075 |
13,579 | |
|
Expeditors International of Washington Inc. |
70,900 |
13,446 | |
|
Smurfit Westrock plc |
279,564 |
13,112 | |
|
Veralto Corp. |
131,367 |
12,949 | |
|
Equifax Inc. |
63,430 |
11,998 | |
|
Fidelity National Information Services Inc. |
276,907 |
11,290 | |
|
Global Payments Inc. (XNYS) |
123,104 |
11,209 | |
|
Packaging Corp. of America |
46,427 |
10,861 | |
4
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
JB Hunt Transport Services Inc. |
40,232 |
10,680 | |
|
Snap-on Inc. |
27,123 |
10,478 | |
|
DuPont de Nemours Inc. |
73,113 |
9,840 | |
|
Fortive Corp. |
162,829 |
9,581 | |
|
Ball Corp. |
142,357 |
8,964 | |
|
TransUnion |
102,992 |
8,745 | |
|
* |
Fedex Freight Holding Co. Inc. |
58,562 |
7,832 |
|
* |
Trimble Inc. |
123,852 |
7,424 |
|
Allegion plc |
45,570 |
7,075 | |
|
Jack Henry & Associates Inc. |
38,516 |
6,467 | |
|
Pentair plc |
85,830 |
5,189 | |
|
* |
Versigent plc |
37,652 |
1,785 |
|
1,841,415 | |||
|
Real Estate (2.0%) | |||
|
Welltower Inc. |
378,458 |
89,407 | |
|
Prologis Inc. |
506,916 |
70,928 | |
|
Equinix Inc. |
52,725 |
55,188 | |
|
American Tower Corp. |
249,476 |
43,833 | |
|
Simon Property Group Inc. |
171,083 |
36,324 | |
|
Digital Realty Trust Inc. |
193,737 |
35,956 | |
|
Realty Income Corp. |
499,678 |
30,620 | |
|
Public Storage |
89,937 |
27,610 | |
|
Vivmark Residential |
407,193 |
26,525 | |
|
Ventas Inc. |
259,272 |
23,638 | |
|
* |
CBRE Group Inc. Class A |
156,285 |
22,788 |
|
Iron Mountain Inc. |
158,218 |
18,250 | |
|
Crown Castle Inc. |
233,585 |
17,785 | |
|
Extra Space Storage Inc. |
112,206 |
15,832 | |
|
SBA Communications Corp. |
56,385 |
10,694 | |
|
Essex Property Trust Inc. |
34,219 |
9,683 | |
|
Invitation Homes Inc. |
317,019 |
9,238 | |
|
Kimco Realty Corp. |
353,668 |
8,385 | |
|
WP Carey Inc. |
118,237 |
8,272 | |
|
Mid-America Apartment Communities Inc. |
61,869 |
7,972 | |
|
Sun Communities Inc. |
65,277 |
7,926 | |
|
* |
CoStar Group Inc. |
216,130 |
6,931 |
|
* |
Zillow Group Inc. Class C |
86,468 |
3,023 |
|
* |
Zillow Group Inc. Class A |
21,511 |
770 |
|
587,578 | |||
|
Technology (51.2%) | |||
|
NVIDIA Corp. |
12,486,374 |
2,756,742 | |
|
Apple Inc. |
7,738,858 |
2,452,057 | |
|
Microsoft Corp. |
3,976,689 |
2,017,335 | |
|
Alphabet Inc. Class A |
3,118,929 |
1,058,409 | |
|
Broadcom Inc. |
2,490,099 |
922,183 | |
|
Alphabet Inc. Class C |
2,544,977 |
853,611 | |
|
Meta Platforms Inc. Class A |
1,176,577 |
673,402 | |
|
Micron Technology Inc. |
603,371 |
578,470 | |
|
* |
Advanced Micro Devices Inc. |
870,655 |
409,835 |
|
* |
Intel Corp. |
2,445,582 |
218,904 |
|
Lam Research Corp. |
668,953 |
201,683 | |
|
Applied Materials Inc. |
424,338 |
194,512 | |
|
* |
Palo Alto Networks Inc. |
431,625 |
164,937 |
|
Oracle Corp. |
917,391 |
136,801 | |
|
Texas Instruments Inc. |
486,741 |
126,996 | |
|
* |
Crowdstrike Holdings Inc. Class A |
537,257 |
124,106 |
|
KLA Corp. |
700,157 |
122,842 | |
|
* |
Sandisk Corp. |
77,879 |
122,013 |
|
Salesforce Inc. |
425,461 |
109,573 | |
|
Seagate Technology Holdings plc |
119,941 |
99,357 | |
|
Marvell Technology Inc. |
466,891 |
98,822 | |
|
QUALCOMM Inc. |
564,718 |
96,273 | |
|
Western Digital Corp. |
180,926 |
81,516 | |
|
* |
ServiceNow Inc. |
549,322 |
81,294 |
|
Dell Technologies Inc. Class C |
161,088 |
73,458 | |
|
* |
Adobe Inc. |
216,259 |
63,318 |
|
Corning Inc. |
423,194 |
62,942 | |
|
* |
Snowflake Inc. |
179,268 |
59,415 |
|
* |
Fortinet Inc. |
324,422 |
55,453 |
5
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
Vertiv Holdings Co. Class A |
205,350 |
53,128 | |
|
Intuit Inc. |
144,857 |
52,047 | |
|
* |
Cloudflare Inc. Class A |
169,149 |
51,609 |
|
* |
Cadence Design Systems Inc. |
147,608 |
50,007 |
|
* |
DoorDash Inc. Class A |
200,596 |
46,486 |
|
* |
Synopsys Inc. |
99,707 |
43,830 |
|
* |
Datadog Inc. Class A |
175,813 |
41,675 |
|
* |
AppLovin Corp. Class A |
128,455 |
40,086 |
|
Hewlett Packard Enterprise Co. |
708,837 |
37,030 | |
|
Monolithic Power Systems Inc. |
25,306 |
32,082 | |
|
NXP Semiconductors NV |
135,277 |
30,389 | |
|
Teradyne Inc. |
83,828 |
29,326 | |
|
* |
Autodesk Inc. |
113,004 |
29,215 |
|
* |
Strategy Inc. |
175,173 |
23,287 |
|
Roper Technologies Inc. |
54,730 |
23,240 | |
|
* |
Workday Inc. Class A |
109,998 |
21,719 |
|
* |
Flex Ltd. |
196,014 |
21,414 |
|
Microchip Technology Inc. |
284,272 |
20,880 | |
|
NetApp Inc. (XNGS) |
105,315 |
19,514 | |
|
* |
MongoDB Inc. |
41,716 |
18,913 |
|
* |
Twilio Inc. Class A |
79,144 |
18,649 |
|
* |
Atlassian Corp. Ltd. Class A |
90,368 |
17,547 |
|
Cognizant Technology Solutions Corp. Class A |
253,927 |
16,399 | |
|
* |
Okta Inc. |
90,182 |
15,605 |
|
* |
ON Semiconductor Corp. |
210,329 |
15,583 |
|
* |
Everpure Inc. Class A |
166,949 |
15,518 |
|
HP Inc. |
489,142 |
14,684 | |
|
* |
Zoom Communications Inc. |
142,313 |
13,759 |
|
VeriSign Inc. |
43,655 |
12,585 | |
|
* |
F5 Inc. |
30,271 |
12,324 |
|
* |
Super Micro Computer Inc. (XNGS) |
298,117 |
11,114 |
|
* |
Reddit Inc. Class A |
71,392 |
10,552 |
|
* |
Zscaler Inc. |
55,896 |
10,530 |
|
CDW Corp. |
68,351 |
10,361 | |
|
* |
PTC Inc. |
63,620 |
9,908 |
|
SS&C Technologies Holdings Inc. |
110,962 |
9,206 | |
|
Gen Digital Inc. (XNGS) |
288,338 |
8,938 | |
|
* |
Tyler Technologies Inc. |
22,495 |
8,373 |
|
* |
HubSpot Inc. |
26,584 |
6,948 |
|
* |
Gartner Inc. |
34,939 |
6,922 |
|
* |
GoDaddy Inc. Class A |
70,565 |
6,907 |
|
* |
Docusign Inc. |
103,708 |
6,873 |
|
* |
Check Point Software Technologies Ltd. |
42,584 |
5,915 |
|
* |
Pinterest Inc. Class A |
262,271 |
5,694 |
|
Mobility Global Inc. |
158,350 |
3,214 | |
|
GLOBALFOUNDRIES Inc. |
67,552 |
3,019 | |
|
14,979,263 | |||
|
Telecommunications (2.5%) | |||
|
Cisco Systems Inc. |
2,114,792 |
233,663 | |
|
Verizon Communications Inc. |
2,241,082 |
112,099 | |
|
* |
Arista Networks Inc. |
558,978 |
109,386 |
|
AT&T Inc. |
3,626,178 |
93,882 | |
|
Comcast Corp. Class A |
1,897,555 |
50,513 | |
|
T-Mobile US Inc. |
260,838 |
47,066 | |
|
Motorola Solutions Inc. |
88,803 |
43,096 | |
|
* |
Ciena Corp. |
75,319 |
28,832 |
|
* |
Charter Communications Inc. Class A |
58,664 |
8,943 |
|
Ubiquiti Inc. |
2,271 |
1,340 | |
|
728,820 | |||
|
Utilities (0.3%) | |||
|
Waste Management Inc. |
199,222 |
43,614 | |
|
Exelon Corp. |
548,545 |
23,982 | |
|
Republic Services Inc. |
106,504 |
23,529 | |
|
American Water Works Co. Inc. |
104,295 |
14,417 | |
|
105,542 | |||
|
Total Common Stocks (Cost $11,037,308) |
29,154,127 | ||
6
FTSE Social Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.2%) | |||
|
Money Market Fund (0.2%) | |||
|
2 |
Vanguard Market Liquidity Fund, 3.731% (Cost $47,470) |
474,747 |
47,470 |
|
Total Investments (99.9%) (Cost $11,084,778) |
29,201,597 | ||
|
Other Assets and Liabilities—Net (0.1%) |
31,511 | ||
|
Net Assets (100%) |
29,233,108 | ||
|
Cost is in $000. | |||
|
• |
See Note A in Notes to Financial Statements. |
|
* |
Non-income-producing security. |
|
1 |
Security value determined using significant unobservable inputs. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
CVR—Contingent Value Rights. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
E-mini S&P 500 Index |
September 2026 |
63 |
24,252 |
17 |
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
American International Group Inc. |
2/1/2027 |
CITNA |
195 |
(4.280 ) |
1 |
— |
|
Elevance Health Inc. |
2/1/2027 |
CITNA |
990 |
(4.130 ) |
— |
(11) |
|
Elevance Health Inc. |
8/31/2027 |
BANA |
320 |
(4.280 ) |
— |
(5) |
|
Goldman Sachs Group Inc. |
2/1/2027 |
CITNA |
2,197 |
(4.380 ) |
50 |
— |
|
Goldman Sachs Group Inc. |
8/31/2027 |
BANA |
7,954 |
(4.445 ) |
— |
(254) |
|
PayPal Holdings Inc. |
2/1/2027 |
CITNA |
527 |
(3.980 ) |
— |
(82) |
|
PayPal Holdings Inc. |
8/31/2027 |
BANA |
10,802 |
(4.380 ) |
— |
(1,674) |
|
Raymond James Financial Inc. |
2/1/2027 |
CITNA |
787 |
(4.130 ) |
26 |
— |
|
Visa Inc. Class A |
8/31/2027 |
BANA |
40,335 |
(3.620 ) |
— |
(455) |
|
77 |
(2,481) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
CITNA—Citibank, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
FTSE Social Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value |
|
|
Unaffiliated Issuers (Cost $11,037,308) |
29,154,127 |
|
Affiliated Issuers (Cost $47,470) |
47,470 |
|
Total Investments in Securities |
29,201,597 |
|
Investment in Vanguard |
603 |
|
Cash |
34 |
|
Cash Collateral Pledged—Futures Contracts |
215 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
1,920 |
|
Receivables for Investment Securities Sold |
138 |
|
Receivables for Accrued Income |
13,754 |
|
Receivables for Capital Shares Issued |
29,881 |
|
Variation Margin Receivable—Futures Contracts |
1 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
77 |
|
Total Assets |
29,248,220 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
310 |
|
Payables for Capital Shares Redeemed |
11,467 |
|
Payables to Vanguard |
854 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
2,481 |
|
Total Liabilities |
15,112 |
|
Net Assets |
29,233,108 |
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
11,724,703 |
|
Total Distributable Earnings (Loss) |
17,508,405 |
|
Net Assets |
29,233,108 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 182,233,571 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
13,414,161 |
|
Net Asset Value Per Share—Admiral Shares |
$73.61 |
|
Institutional Shares—Net Assets |
|
|
Applicable to 298,500,906 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
15,818,947 |
|
Net Asset Value Per Share—Institutional Shares |
$52.99 |
See accompanying Notes, which are an integral part of the Financial Statements.
8
FTSE Social Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends1 |
258,470 |
|
Interest2 |
2,891 |
|
Securities Lending—Net |
7 |
|
Total Income |
261,368 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
217 |
|
Management and Administrative—Admiral Shares3 |
13,824 |
|
Management and Administrative—Institutional Shares3 |
5,486 |
|
Marketing and Distribution—Admiral Shares |
590 |
|
Marketing and Distribution—Institutional Shares |
402 |
|
Custodian Fees |
149 |
|
Auditing Fees |
34 |
|
Accounting Fees3 |
52 |
|
Shareholders’ Reports—Admiral Shares3 |
105 |
|
Shareholders’ Reports—Institutional Shares3 |
126 |
|
Trustees’ Fees and Expenses |
14 |
|
Other Expenses |
13 |
|
Total Expenses |
21,012 |
|
Net Investment Income |
240,356 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2,4 |
351,867 |
|
Futures Contracts |
3,414 |
|
Swap Contracts |
12,838 |
|
Realized Net Gain (Loss) |
368,119 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
4,236,420 |
|
Futures Contracts |
(38 ) |
|
Swap Contracts |
(2,404 ) |
|
Change in Unrealized Appreciation (Depreciation) |
4,233,978 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,842,453 |
|
1 |
Dividends are net of foreign withholding taxes of $81. |
|
2 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $2,832, ($5), and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
3 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
4 |
Includes $291,198 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
FTSE Social Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
240,356 |
225,676 |
|
Realized Net Gain (Loss) |
368,119 |
114,206 |
|
Change in Unrealized Appreciation (Depreciation) |
4,233,978 |
3,202,995 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,842,453 |
3,542,877 |
|
Distributions |
||
|
Admiral Shares |
(111,426 ) |
(112,263 ) |
|
Institutional Shares |
(128,132 ) |
(114,668 ) |
|
Total Distributions |
(239,558 ) |
(226,931 ) |
|
Capital Share Transactions |
||
|
Admiral Shares |
(759,329 ) |
(503,692 ) |
|
Institutional Shares |
963,836 |
329,349 |
|
Net Increase (Decrease) from Capital Share Transactions |
204,507 |
(174,343 ) |
|
Total Increase (Decrease) |
4,807,402 |
3,141,603 |
|
Net Assets |
||
|
Beginning of Period |
24,425,706 |
21,284,103 |
|
End of Period |
29,233,108 |
24,425,706 |
See accompanying Notes, which are an integral part of the Financial Statements.
10
FTSE Social Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$61.84 |
$53.54 |
$42.36 |
$36.76 |
$44.39 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.592 |
.554 |
.518 |
.494 |
.464 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
11.768 |
8.305 |
11.219 |
5.583 |
(7.647) |
|
Total from Investment Operations |
12.360 |
8.859 |
11.737 |
6.077 |
(7.183) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.590) |
(.559) |
(.557) |
(.477) |
(.447) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(.590) |
(.559) |
(.557) |
(.477) |
(.447) |
|
Net Asset Value, End of Period |
$73.61 |
$61.84 |
$53.54 |
$42.36 |
$36.76 |
|
Total Return2 |
20.12% |
16.67% |
27.91% |
16.74% |
-16.28% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$13,414 |
$11,986 |
$10,859 |
$8,489 |
$7,512 |
|
Ratio of Total Expenses to Average Net Assets |
0.12% |
0.13% |
0.14%3 |
0.14%3 |
0.14% |
|
Ratio of Net Investment Income to Average Net Assets |
0.89% |
0.98% |
1.10% |
1.31% |
1.12% |
|
Portfolio Turnover Rate |
7%4 |
7%4 |
4% |
5%4 |
8%4 |
|
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 0.14%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
See accompanying Notes, which are an integral part of the Financial Statements.
11
FTSE Social Index Fund
Financial Highlights
|
Institutional Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$44.52 |
$38.54 |
$30.49 |
$26.47 |
$31.96 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.460 |
.416 |
.380 |
.362 |
.340 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
8.467 |
5.980 |
8.078 |
4.007 |
(5.502) |
|
Total from Investment Operations |
8.927 |
6.396 |
8.458 |
4.369 |
(5.162) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.457) |
(.416) |
(.408) |
(.349) |
(.328) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(.457) |
(.416) |
(.408) |
(.349) |
(.328) |
|
Net Asset Value, End of Period |
$52.99 |
$44.52 |
$38.54 |
$30.49 |
$26.47 |
|
Total Return |
20.19% |
16.73% |
27.95% |
16.71% |
-16.25% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$15,819 |
$12,440 |
$10,425 |
$7,570 |
$5,993 |
|
Ratio of Total Expenses to Average Net Assets |
0.05% |
0.09% |
0.12%2 |
0.12%2 |
0.12% |
|
Ratio of Net Investment Income to Average Net Assets |
0.96% |
1.03% |
1.12% |
1.33% |
1.14% |
|
Portfolio Turnover Rate |
7%3 |
7%3 |
4% |
5%3 |
8%3 |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
See accompanying Notes, which are an integral part of the Financial Statements.
12
FTSE Social Index Fund
Notes to Financial Statements
Vanguard FTSE Social Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Admiral Shares and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
13
FTSE Social Index Fund
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $603,000, representing less than 0.01% of the fund’s net assets and 0.24% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
14
FTSE Social Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
29,154,127 |
— |
— |
29,154,127 |
|
Temporary Cash Investments |
47,470 |
— |
— |
47,470 |
|
Total |
29,201,597 |
— |
— |
29,201,597 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Futures Contracts1 |
17 |
— |
— |
17 |
|
Swap Contracts |
— |
77 |
— |
77 |
|
Total |
17 |
77 |
— |
94 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(2,481) |
— |
(2,481) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
306,767 |
|
Total Distributable Earnings (Loss) |
(306,767) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
36,411 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
18,059,812 |
|
Capital Loss Carryforwards |
(587,818) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
17,508,405 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
239,558 |
226,931 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
239,558 |
226,931 |
|
* |
Includes short-term capital gains, if any. |
15
FTSE Social Index Fund
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
11,141,783 |
|
Gross Unrealized Appreciation |
18,359,733 |
|
Gross Unrealized Depreciation |
(299,919) |
|
Net Unrealized Appreciation (Depreciation) |
18,059,814 |
F.
During the year ended August 31, 2026, the fund purchased $2,345,132,000 of investment securities and sold $1,840,212,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $0 and $343,457,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $309,221,000 and sales were $106,386,000, resulting in net realized loss of $20,748,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
Admiral Shares |
||||
|
Issued |
1,787,645 |
26,802 |
1,831,675 |
32,856 |
|
Issued in Lieu of Cash Distributions |
94,416 |
1,452 |
95,722 |
1,731 |
|
Redeemed |
(2,641,390) |
(39,835) |
(2,431,089) |
(43,599) |
|
Net Increase (Decrease)—Admiral Shares |
(759,329) |
(11,581) |
(503,692) |
(9,012) |
|
Institutional Shares |
||||
|
Issued |
2,829,834 |
58,227 |
2,041,762 |
50,890 |
|
Issued in Lieu of Cash Distributions |
125,772 |
2,683 |
112,730 |
2,831 |
|
Redeemed |
(1,991,770) |
(41,838) |
(1,825,143) |
(44,810) |
|
Net Increase (Decrease)—Institutional Shares |
963,836 |
19,072 |
329,349 |
8,911 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
16
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard FTSE Social Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard FTSE Social Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
17
For corporate shareholders, 96.6%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $228,893,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $1,469,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q2130 102026
18
Financial Statements
For the year ended August 31, 2026
Vanguard Materials Index Fund
Contents
|
1 | |
|
13 | |
|
14 | |
Materials Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.9%) | |||
|
Chemicals (48.3%) | |||
|
Linde plc |
1,358,820 |
665,251 | |
|
Sherwin-Williams Co. |
670,130 |
227,047 | |
|
Ecolab Inc. |
744,019 |
210,706 | |
|
Air Products & Chemicals Inc. |
610,746 |
189,001 | |
|
Corteva Inc. |
1,964,587 |
166,263 | |
|
PPG Industries Inc. |
654,773 |
73,446 | |
|
Dow Inc. |
2,117,175 |
64,616 | |
|
International Flavors & Fragrances Inc. |
731,199 |
63,124 | |
|
CF Industries Holdings Inc. |
451,277 |
58,680 | |
|
LyondellBasell Industries NV Class A |
758,549 |
49,366 | |
|
Albemarle Corp. |
346,426 |
46,757 | |
|
RPM International Inc. |
365,546 |
38,053 | |
|
Solstice Advanced Materials Inc. |
466,597 |
29,578 | |
|
Eastman Chemical Co. |
335,957 |
24,337 | |
|
Element Solutions Inc. |
680,075 |
24,170 | |
|
* |
Axalta Coating Systems Ltd. |
628,724 |
22,898 |
|
Mosaic Co. |
933,793 |
22,523 | |
|
NewMarket Corp. |
22,291 |
20,011 | |
|
Balchem Corp. |
94,390 |
16,602 | |
|
Celanese Corp. |
322,193 |
14,653 | |
|
Sensient Technologies Corp. |
106,301 |
14,344 | |
|
* |
Perimeter Solutions Inc. |
431,289 |
13,154 |
|
Cabot Corp. |
151,678 |
12,545 | |
|
Avient Corp. |
269,482 |
11,873 | |
|
Ashland Inc. |
124,445 |
9,126 | |
|
HB Fuller Co. |
158,082 |
8,687 | |
|
Scotts Miracle-Gro Co. |
132,500 |
7,924 | |
|
* |
Ingevity Corp. |
102,202 |
7,082 |
|
Westlake Corp. |
94,129 |
7,066 | |
|
Chemours Co. |
441,900 |
6,876 | |
|
Hawkins Inc. |
56,828 |
6,835 | |
|
Innospec Inc. |
72,416 |
6,797 | |
|
Quaker Chemical Corp. |
40,832 |
6,770 | |
|
Minerals Technologies Inc. |
88,683 |
6,289 | |
|
Olin Corp. |
335,025 |
5,829 | |
|
Huntsman Corp. |
489,544 |
4,690 | |
|
FMC Corp. |
366,554 |
4,226 | |
|
Stepan Co. |
63,162 |
3,955 | |
|
* |
Ecovyst Inc. |
320,851 |
3,263 |
|
*,1 |
PureCycle Technologies Inc. |
440,910 |
2,879 |
|
Koppers Holdings Inc. |
49,574 |
2,274 | |
|
Mativ Holdings Inc. |
160,682 |
1,911 | |
|
Tronox Holdings plc |
350,830 |
1,856 | |
|
* |
LSB Industries Inc. |
169,182 |
1,805 |
|
*,1 |
ASP Isotopes Inc. |
382,860 |
1,539 |
|
* |
Rayonier Advanced Materials Inc. |
177,736 |
1,527 |
|
AdvanSix Inc. |
74,738 |
1,256 | |
|
* |
Intrepid Potash Inc. |
31,495 |
1,218 |
|
* |
Aspen Aerogels Inc. |
206,238 |
1,017 |
|
* |
Flotek Industries Inc. |
42,377 |
1,005 |
|
Orion SA |
160,661 |
1,003 | |
|
Kronos Worldwide Inc. |
62,374 |
550 | |
|
2,194,253 | |||
|
Construction Materials (10.5%) | |||
|
CRH plc |
1,962,773 |
185,070 | |
|
Vulcan Materials Co. |
381,146 |
102,749 | |
|
Martin Marietta Materials Inc. |
176,384 |
91,491 | |
|
* |
Amrize Ltd. |
1,462,198 |
63,898 |
|
Eagle Materials Inc. |
90,766 |
17,632 | |
1
Materials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Knife River Corp. |
166,745 |
10,455 |
|
United States Lime & Minerals Inc. |
31,498 |
3,721 | |
|
475,016 | |||
|
Containers & Packaging (10.0%) | |||
|
Smurfit Westrock plc |
1,540,609 |
72,254 | |
|
Amcor plc |
1,358,138 |
62,325 | |
|
Packaging Corp. of America |
261,716 |
61,226 | |
|
International Paper Co. |
1,477,722 |
56,050 | |
|
Ball Corp. |
742,942 |
46,783 | |
|
Avery Dennison Corp. |
224,685 |
39,120 | |
|
Crown Holdings Inc. |
328,236 |
38,203 | |
|
AptarGroup Inc. |
187,473 |
24,675 | |
|
Sonoco Products Co. |
290,468 |
16,019 | |
|
Silgan Holdings Inc. |
256,193 |
10,642 | |
|
Graphic Packaging Holding Co. |
869,531 |
9,739 | |
|
Greif Inc. Class A |
69,188 |
5,725 | |
|
* |
O-I Glass Inc. |
449,337 |
3,267 |
|
TriMas Corp. |
81,710 |
3,169 | |
|
Myers Industries Inc. |
93,197 |
2,991 | |
|
* |
Ranpak Holdings Corp. |
112,790 |
536 |
|
452,724 | |||
|
Metals & Mining (31.0%) | |||
|
Newmont Corp. (XNYS) |
3,108,038 |
391,799 | |
|
Freeport-McMoRan Inc. |
4,222,668 |
319,825 | |
|
Nucor Corp. |
652,234 |
162,824 | |
|
Steel Dynamics Inc. |
402,428 |
93,613 | |
|
Royal Gold Inc. |
249,293 |
65,183 | |
|
Coeur Mining Inc. |
3,027,102 |
62,903 | |
|
Reliance Inc. |
149,948 |
57,587 | |
|
Hecla Mining Co. |
1,970,179 |
39,147 | |
|
Alcoa Corp. |
775,174 |
38,720 | |
|
*,1 |
MP Materials Corp. |
418,374 |
22,906 |
|
Commercial Metals Co. |
324,975 |
21,926 | |
|
* |
Cleveland-Cliffs Inc. |
1,675,676 |
19,354 |
|
Warrior Met Coal Inc. |
155,115 |
16,790 | |
|
Materion Corp. |
59,578 |
14,065 | |
|
* |
USA Rare Earth Inc. |
557,065 |
9,927 |
|
* |
Constellium SE |
360,006 |
9,515 |
|
* |
Century Aluminum Co. |
196,256 |
8,983 |
|
Kaiser Aluminum Corp. |
48,008 |
7,623 | |
|
* |
Alpha Metallurgical Resources Inc. |
30,821 |
7,264 |
|
* |
Perpetua Resources Corp. |
248,141 |
6,189 |
|
* |
Ivanhoe Electric Inc. |
349,150 |
3,862 |
|
* |
Hycroft Mining Holding Corp. Class A |
154,334 |
3,616 |
|
Worthington Steel Inc. |
96,799 |
3,335 | |
|
Ryerson Holding Corp. |
128,863 |
3,229 | |
|
*,1 |
McEwen Mining Inc. |
149,291 |
3,010 |
|
*,1 |
TMC the metals Co. Inc. |
604,937 |
2,885 |
|
SunCoke Energy Inc. |
248,710 |
2,569 | |
|
* |
Compass Minerals International Inc. |
101,238 |
2,517 |
|
* |
Metallus Inc. |
103,940 |
2,029 |
|
*,1 |
US Antimony Corp. |
369,978 |
1,802 |
|
* |
Ramaco Resources Inc. Class A |
102,710 |
1,462 |
|
1,406,459 | |||
|
Paper & Forest Products (0.1%) | |||
|
Sylvamo Corp. |
96,431 |
3,464 | |
|
* |
Magnera Corp. |
97,276 |
1,222 |
|
* |
Clearwater Paper Corp. |
44,634 |
937 |
|
*,1 |
Mercer International Inc. |
106,042 |
41 |
|
5,664 | |||
|
Total Common Stocks (Cost $3,732,448) |
4,534,116 | ||
2
Materials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.5%) | |||
|
Money Market Fund (0.5%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $23,387) |
233,889 |
23,387 |
|
Total Investments (100.4%) (Cost $3,755,835) |
4,557,503 | ||
|
Other Assets and Liabilities—Net (-0.4%) |
(15,997) | ||
|
Net Assets (100.0%) |
4,541,506 | ||
|
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 $18,252. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $19,253 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Air Products & Chemicals Inc. |
8/31/2027 |
BANA |
8,204 |
(3.630 ) |
147 |
— |
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Materials Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $3,732,448) |
4,534,116 |
|
Affiliated Issuers (Cost $23,387) |
23,387 |
|
Total Investments in Securities |
4,557,503 |
|
Investment in Vanguard |
93 |
|
Receivables for Investment Securities Sold |
21,350 |
|
Receivables for Accrued Income |
4,817 |
|
Receivables for Capital Shares Issued |
771 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
147 |
|
Total Assets |
4,584,681 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
15,803 |
|
Collateral for Securities on Loan |
19,253 |
|
Payables for Capital Shares Redeemed |
7,888 |
|
Payables to Vanguard |
181 |
|
Other Liabilities |
50 |
|
Total Liabilities |
43,175 |
|
Net Assets |
4,541,506 |
|
1 Includes $18,252 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
4,031,465 |
|
Total Distributable Earnings (Loss) |
510,041 |
|
Net Assets |
4,541,506 |
|
ETF Shares—Net Assets |
|
|
Applicable to 12,960,421 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
3,063,204 |
|
Net Asset Value Per Share—ETF Shares |
$236.35 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 12,276,339 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
1,478,302 |
|
Net Asset Value Per Share—Admiral Shares |
$120.42 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Materials Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends1 |
66,847 |
|
Interest2 |
413 |
|
Securities Lending—Net |
248 |
|
Total Income |
67,508 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
42 |
|
Management and Administrative—ETF Shares3 |
2,318 |
|
Management and Administrative—Admiral Shares3 |
1,115 |
|
Marketing and Distribution—ETF Shares |
92 |
|
Marketing and Distribution—Admiral Shares |
67 |
|
Custodian Fees |
22 |
|
Auditing Fees |
35 |
|
Accounting Fees3 |
41 |
|
Shareholders’ Reports—ETF Shares3 |
132 |
|
Shareholders’ Reports—Admiral Shares3 |
7 |
|
Trustees’ Fees and Expenses |
2 |
|
Other Expenses |
14 |
|
Total Expenses |
3,887 |
|
Net Investment Income |
63,621 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2,4 |
161,096 |
|
Futures Contracts |
(37 ) |
|
Swap Contracts |
5,721 |
|
Realized Net Gain (Loss) |
166,780 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
377,081 |
|
Swap Contracts |
147 |
|
Change in Unrealized Appreciation (Depreciation) |
377,228 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
607,629 |
|
1 |
Dividends are net of foreign withholding taxes of $2. |
|
2 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $411, less than $1, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
3 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
4 |
Includes $196,926 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Materials Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
63,621 |
66,806 |
|
Realized Net Gain (Loss) |
166,780 |
101,513 |
|
Change in Unrealized Appreciation (Depreciation) |
377,228 |
(100,682 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
607,629 |
67,637 |
|
Distributions |
||
|
ETF Shares |
(42,567 ) |
(47,529 ) |
|
Admiral Shares |
(19,566 ) |
(20,289 ) |
|
Total Distributions |
(62,133 ) |
(67,818 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
(166,581 ) |
(167,287 ) |
|
Admiral Shares |
42,069 |
11,707 |
|
Net Increase (Decrease) from Capital Share Transactions |
(124,512 ) |
(155,580 ) |
|
Total Increase (Decrease) |
420,984 |
(155,761 ) |
|
Net Assets |
||
|
Beginning of Period |
4,120,522 |
4,276,283 |
|
End of Period |
4,541,506 |
4,120,522 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Materials Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$208.28 |
$206.54 |
$182.61 |
$166.09 |
$187.02 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
3.258 |
3.317 |
3.241 |
3.253 |
3.213 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
27.986 |
1.761 |
23.940 |
16.513 |
(20.893) |
|
Total from Investment Operations |
31.244 |
5.078 |
27.181 |
19.766 |
(17.680) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(3.174) |
(3.338) |
(3.251) |
(3.246) |
(3.250) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(3.174) |
(3.338) |
(3.251) |
(3.246) |
(3.250) |
|
Net Asset Value, End of Period |
$236.35 |
$208.28 |
$206.54 |
$182.61 |
$166.09 |
|
Total Return |
15.17% |
2.57% |
15.08% |
12.09% |
-9.55% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$3,063 |
$2,859 |
$3,039 |
$3,070 |
$2,889 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.47% |
1.68% |
1.72% |
1.87% |
1.76% |
|
Portfolio Turnover Rate3 |
8% |
7% |
12% |
5% |
4% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Materials Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$106.12 |
$105.23 |
$93.04 |
$84.62 |
$95.29 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.654 |
1.692 |
1.650 |
1.654 |
1.652 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
14.263 |
.899 |
12.197 |
8.420 |
(10.665) |
|
Total from Investment Operations |
15.917 |
2.591 |
13.847 |
10.074 |
(9.013) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.617) |
(1.701) |
(1.657) |
(1.654) |
(1.657) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.617) |
(1.701) |
(1.657) |
(1.654) |
(1.657) |
|
Net Asset Value, End of Period |
$120.42 |
$106.12 |
$105.23 |
$93.04 |
$84.62 |
|
Total Return2 |
15.17% |
2.57% |
15.09% |
12.10% |
-9.56% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$1,478 |
$1,262 |
$1,238 |
$1,065 |
$994 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.47% |
1.68% |
1.71% |
1.86% |
1.78% |
|
Portfolio Turnover Rate4 |
8% |
7% |
12% |
5% |
4% |
|
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 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Materials Index Fund
Notes to Financial Statements
Vanguard Materials Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented 0% of net assets, based on the average of the notional amounts at each quarter-end during the period. The fund had no open futures contracts at August 31, 2026.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
9
Materials Index Fund
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $93,000, representing less than 0.01% of the fund’s net assets and 0.04% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
10
Materials Index Fund
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
4,534,116 |
— |
— |
4,534,116 |
|
Temporary Cash Investments |
23,387 |
— |
— |
23,387 |
|
Total |
4,557,503 |
— |
— |
4,557,503 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
147 |
— |
147 |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
202,716 |
|
Total Distributable Earnings (Loss) |
(202,716) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
8,582 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
774,912 |
|
Capital Loss Carryforwards |
(273,453) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
510,041 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
62,133 |
67,818 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
62,133 |
67,818 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
3,782,592 |
|
Gross Unrealized Appreciation |
1,216,797 |
|
Gross Unrealized Depreciation |
(441,886) |
|
Net Unrealized Appreciation (Depreciation) |
774,911 |
11
Materials Index Fund
F.
During the year ended August 31, 2026, the fund purchased $459,201,000 of investment securities and sold $362,023,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $326,890,000 and $534,858,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $6,852,000 and sales were $64,306,000, resulting in net realized loss of $2,552,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
374,589 |
1,675 |
344,005 |
1,752 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(541,170) |
(2,440) |
(511,292) |
(2,740) |
|
Net Increase (Decrease)—ETF Shares |
(166,581) |
(765) |
(167,287) |
(988) |
|
Admiral Shares |
||||
|
Issued |
362,814 |
3,188 |
230,590 |
2,321 |
|
Issued in Lieu of Cash Distributions |
18,108 |
166 |
18,854 |
188 |
|
Redeemed |
(338,853) |
(2,971) |
(237,737) |
(2,376) |
|
Net Increase (Decrease)—Admiral Shares |
42,069 |
383 |
11,707 |
133 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
At August 31, 2026, one shareholder was the record or beneficial owner of 28% of the fund’s net assets. If this shareholder were to redeem its investment in the fund, the redemption might result in an increase in the fund’s expense ratio, cause the fund to incur higher transaction costs, or lead to the realization of taxable capital gains.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
12
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Materials Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Materials Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
13
For corporate shareholders, 72.9%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $64,214,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $213,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54810 102026
14
Financial Statements
For the year ended August 31, 2026
Vanguard Communication Services Index Fund
Contents
|
1 | |
|
13 | |
|
14 | |
Communication Services Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.7%) | |||
|
Diversified Telecommunication Services (17.3%) | |||
|
Verizon Communications Inc. |
5,389,112 |
269,563 | |
|
AT&T Inc. |
10,127,020 |
262,189 | |
|
Comcast Corp. Class A |
6,795,421 |
180,894 | |
|
* |
Space Exploration Technologies Corp. Class A |
1,170,398 |
168,174 |
|
*,1 |
AST SpaceMobile Inc. |
876,810 |
51,819 |
|
* |
Lumen Technologies Inc. |
3,431,847 |
21,449 |
|
Iridium Communications Inc. |
333,696 |
15,677 | |
|
* |
Globalstar Inc. |
185,408 |
15,120 |
|
* |
Liberty Global Ltd. Class A |
595,691 |
6,404 |
|
* |
Bandwidth Inc. Class A |
105,686 |
5,118 |
|
IDT Corp. Class B |
73,493 |
5,014 | |
|
* |
Uniti Group Inc. |
503,512 |
4,995 |
|
* |
Liberty Global Ltd. Class C |
461,928 |
4,846 |
|
* |
Liberty Latin America Ltd. Class C |
424,850 |
3,632 |
|
* |
Anterix Inc. |
38,680 |
3,516 |
|
* |
Liberty Capital Corp. Class C |
119,580 |
3,113 |
|
Shenandoah Telecommunications Co. |
159,201 |
1,969 | |
|
Cogent Communications Holdings Inc. |
176,076 |
1,680 | |
|
ATN International Inc. |
36,226 |
1,093 | |
|
* |
Liberty Latin America Ltd. Class A |
101,859 |
877 |
|
1,027,142 | |||
|
Entertainment (22.3%) | |||
|
* |
Netflix Inc. |
3,315,893 |
268,753 |
|
Walt Disney Co. |
2,485,558 |
267,322 | |
|
* |
Warner Bros Discovery Inc. |
5,398,510 |
154,019 |
|
* |
Take-Two Interactive Software Inc. |
526,972 |
115,776 |
|
* |
Live Nation Entertainment Inc. |
565,922 |
101,804 |
|
* |
Roblox Corp. Class A |
2,177,706 |
89,917 |
|
* |
Liberty Media Corp.-Liberty Formula One Class C |
767,427 |
76,704 |
|
* |
Roku Inc. |
475,389 |
74,603 |
|
TKO Group Holdings Inc. |
222,801 |
40,686 | |
|
* |
Madison Square Garden Sports Corp. |
56,315 |
21,666 |
|
* |
Liberty Live Holdings Inc. Class C |
160,984 |
16,665 |
|
Cinemark Holdings Inc. |
379,051 |
13,498 | |
|
* |
Sphere Entertainment Co. |
93,849 |
12,792 |
|
Warner Music Group Corp. Class A |
448,244 |
12,645 | |
|
* |
Madison Square Garden Entertainment Corp. |
138,541 |
10,763 |
|
* |
Atlanta Braves Holdings Inc. Class C |
171,435 |
8,500 |
|
* |
AMC Entertainment Holdings Inc. Class A |
3,218,925 |
8,498 |
|
* |
IMAX Corp. |
163,209 |
8,356 |
|
* |
Lionsgate Studios Corp. |
733,689 |
8,313 |
|
* |
Liberty Live Holdings Inc. Class A |
64,592 |
6,426 |
|
Marcus Corp. |
81,361 |
2,313 | |
|
* |
Atlanta Braves Holdings Inc. Class A |
24,270 |
1,335 |
|
* |
Vivid Seats Inc. Class A |
13,019 |
76 |
|
1,321,430 | |||
|
Interactive Media & Services (46.3%) | |||
|
Meta Platforms Inc. Class A |
2,137,818 |
1,223,559 | |
|
Alphabet Inc. Class A |
2,485,430 |
843,431 | |
|
Alphabet Inc. Class C |
1,384,929 |
464,519 | |
|
* |
Reddit Inc. Class A |
421,950 |
62,368 |
|
* |
Pinterest Inc. Class A |
1,605,150 |
34,848 |
|
Match Group Inc. |
798,025 |
32,440 | |
|
* |
Snap Inc. Class A |
3,788,743 |
21,027 |
|
* |
Cargurus Inc. |
261,774 |
9,335 |
|
* |
People Inc. |
216,416 |
8,284 |
|
* |
Ziff Davis Inc. |
119,536 |
6,592 |
|
* |
Trump Media & Technology Group Corp. |
574,262 |
5,611 |
|
* |
Yelp Inc. |
183,395 |
4,099 |
1
Communication Services Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
QuinStreet Inc. |
191,744 |
3,727 |
|
* |
ZoomInfo Technologies Inc. |
823,513 |
3,492 |
|
* |
TripAdvisor Inc. |
356,781 |
3,397 |
|
*,1 |
RUM Group Inc. |
348,760 |
3,125 |
|
* |
EverQuote Inc. Class A |
97,368 |
2,477 |
|
* |
Grindr Inc. |
134,577 |
2,083 |
|
* |
Cars.com Inc. |
171,290 |
2,004 |
|
* |
Nextdoor Holdings Inc. |
823,911 |
1,854 |
|
* |
Taboola.com Ltd. |
460,488 |
1,718 |
|
* |
Mediaalpha Inc. Class A |
107,194 |
1,353 |
|
*,1 |
fuboTV Inc. Class A |
103,920 |
1,094 |
|
* |
Bumble Inc. Class A |
342,651 |
939 |
|
* |
ZipRecruiter Inc. Class A |
216,094 |
921 |
|
Shutterstock Inc. |
89,602 |
496 | |
|
* |
Angi Inc. |
101,813 |
473 |
|
2,745,266 | |||
|
Media (10.8%) | |||
|
* |
AppLovin Corp. Class A |
487,285 |
152,062 |
|
Omnicom Group Inc. |
1,026,785 |
89,875 | |
|
* |
Charter Communications Inc. Class A |
392,080 |
59,769 |
|
* |
EchoStar Corp. Class A |
470,993 |
40,713 |
|
News Corp. Class A |
1,302,813 |
40,009 | |
|
New York Times Co. Class A |
522,224 |
35,130 | |
|
Fox Corp. Class A |
513,517 |
34,585 | |
|
Fox Corp. Class B |
476,617 |
28,702 | |
|
Versant Media Group Inc. |
508,149 |
20,895 | |
|
* |
Trade Desk Inc. Class A |
1,499,131 |
20,568 |
|
Nexstar Media Group Inc. |
104,460 |
19,025 | |
|
Sirius XM Holdings Inc. |
666,603 |
18,778 | |
|
News Corp. Class B |
407,150 |
14,010 | |
|
Paramount Skydance Corp. Class B |
1,177,587 |
12,848 | |
|
* |
Magnite Inc. |
516,462 |
12,132 |
|
John Wiley & Sons Inc. Class A |
136,319 |
7,142 | |
|
* |
DoubleVerify Holdings Inc. |
484,231 |
6,489 |
|
* |
NIQ Global Intelligence plc |
250,172 |
4,768 |
|
* |
USA TODAY Co. Inc. |
449,663 |
2,828 |
|
* |
Stagwell Inc. |
312,715 |
2,714 |
|
* |
PubMatic Inc. Class A |
134,286 |
2,233 |
|
* |
Clear Channel Outdoor Holdings Inc. |
870,972 |
2,064 |
|
Scholastic Corp. |
50,019 |
1,921 | |
|
Sinclair Inc. |
130,952 |
1,846 | |
|
* |
MNTN Inc. Class A |
132,134 |
1,738 |
|
* |
Newsmax Inc. |
153,503 |
1,652 |
|
Gray Media Inc. |
316,898 |
1,546 | |
|
* |
AMC Global Media Inc. |
117,010 |
1,473 |
|
* |
Ibotta Inc. Class A |
36,639 |
1,363 |
|
* |
Boston Omaha Corp. Class A |
82,816 |
1,142 |
|
* |
iHeartMedia Inc. Class A |
364,078 |
990 |
|
* |
EW Scripps Co. Class A |
193,835 |
642 |
|
National CineMedia Inc. |
219,959 |
554 | |
|
* |
Advantage Solutions Inc. |
14,258 |
470 |
|
* |
Cable One Inc. |
16,973 |
465 |
|
* |
TechTarget Inc. |
98,372 |
381 |
|
643,522 | |||
|
Wireless Telecommunication Services (3.0%) | |||
|
T-Mobile US Inc. |
917,101 |
165,482 | |
|
Telephone & Data Systems Inc. |
344,974 |
11,619 | |
|
Array Digital Infrastructure Inc. |
57,708 |
2,115 | |
|
Spok Holdings Inc. |
75,736 |
796 | |
|
* |
Gogo Inc. |
268,601 |
677 |
|
180,689 | |||
|
Total Common Stocks (Cost $5,558,593) |
5,918,049 | ||
2
Communication Services Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.6%) | |||
|
Money Market Fund (0.6%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $36,473) |
364,767 |
36,473 |
|
Total Investments (100.3%) (Cost $5,595,066) |
5,954,522 | ||
|
Other Assets and Liabilities—Net (-0.3%) |
(20,610) | ||
|
Net Assets (100.0%) |
5,933,912 | ||
|
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 $26,175. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $26,683 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
AST SpaceMobile Inc. |
2/1/2027 |
GSI |
4,624 |
(3.630 ) |
— |
(789) |
|
Fox Corp. Class A |
8/31/2027 |
BANA |
14,418 |
(3.630 ) |
— |
(620) |
|
— |
(1,409) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
GSI—Goldman Sachs International. |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Communication Services Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $5,558,593) |
5,918,049 |
|
Affiliated Issuers (Cost $36,473) |
36,473 |
|
Total Investments in Securities |
5,954,522 |
|
Investment in Vanguard |
128 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
1,500 |
|
Receivables for Investment Securities Sold |
130,980 |
|
Receivables for Accrued Income |
1,166 |
|
Receivables for Capital Shares Issued |
263 |
|
Other Assets |
400 |
|
Total Assets |
6,088,959 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
125,581 |
|
Collateral for Securities on Loan |
26,683 |
|
Payables for Capital Shares Redeemed |
1,137 |
|
Payables to Vanguard |
237 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
1,409 |
|
Total Liabilities |
155,047 |
|
Net Assets |
5,933,912 |
|
1 Includes $26,175 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
6,867,165 |
|
Total Distributable Earnings (Loss) |
(933,253 ) |
|
Net Assets |
5,933,912 |
|
ETF Shares—Net Assets |
|
|
Applicable to 30,435,064 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
5,674,440 |
|
Net Asset Value Per Share—ETF Shares |
$186.44 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 2,731,031 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
259,472 |
|
Net Asset Value Per Share—Admiral Shares |
$95.01 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Communication Services Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
64,121 |
|
Interest1 |
545 |
|
Securities Lending—Net |
202 |
|
Total Income |
64,868 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
67 |
|
Management and Administrative—ETF Shares2 |
4,662 |
|
Management and Administrative—Admiral Shares2 |
261 |
|
Marketing and Distribution—ETF Shares |
271 |
|
Marketing and Distribution—Admiral Shares |
16 |
|
Custodian Fees |
23 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
42 |
|
Shareholders’ Reports—ETF Shares2 |
173 |
|
Shareholders’ Reports—Admiral Shares2 |
2 |
|
Trustees’ Fees and Expenses |
3 |
|
Other Expenses |
14 |
|
Total Expenses |
5,569 |
|
Net Investment Income |
59,299 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
848,441 |
|
Swap Contracts |
3,125 |
|
Realized Net Gain (Loss) |
851,566 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
(622,005 ) |
|
Swap Contracts |
(1,461 ) |
|
Change in Unrealized Appreciation (Depreciation) |
(623,466 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
287,399 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $539, $1, and ($1), respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $1,232,020 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Communication Services Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
59,299 |
53,283 |
|
Realized Net Gain (Loss) |
851,566 |
451,391 |
|
Change in Unrealized Appreciation (Depreciation) |
(623,466 ) |
790,057 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
287,399 |
1,294,731 |
|
Distributions |
||
|
ETF Shares |
(61,322 ) |
(51,314 ) |
|
Admiral Shares |
(3,376 ) |
(2,850 ) |
|
Total Distributions |
(64,698 ) |
(54,164 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
(73,707 ) |
370,195 |
|
Admiral Shares |
(68,296 ) |
39,228 |
|
Net Increase (Decrease) from Capital Share Transactions |
(142,003 ) |
409,423 |
|
Total Increase (Decrease) |
80,698 |
1,649,990 |
|
Net Assets |
||
|
Beginning of Period |
5,853,214 |
4,203,224 |
|
End of Period |
5,933,912 |
5,853,214 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Communication Services Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$180.12 |
$139.25 |
$109.41 |
$94.12 |
$149.87 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.811 |
1.723 |
1.366 |
1.128 |
1.110 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
6.473 |
40.898 |
29.757 |
15.127 |
(55.695) |
|
Total from Investment Operations |
8.284 |
42.621 |
31.123 |
16.255 |
(54.585) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.964) |
(1.751) |
(1.283) |
(.965) |
(1.165) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.964) |
(1.751) |
(1.283) |
(.965) |
(1.165) |
|
Net Asset Value, End of Period |
$186.44 |
$180.12 |
$139.25 |
$109.41 |
$94.12 |
|
Total Return |
4.61% |
30.82% |
28.62% |
17.46% |
-36.61% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$5,674 |
$5,537 |
$3,990 |
$3,424 |
$2,717 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
0.96% |
1.10% |
1.10% |
1.19% |
0.92% |
|
Portfolio Turnover Rate3 |
28% |
12% |
15% |
15% |
16% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Communication Services Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$91.79 |
$70.96 |
$55.75 |
$47.97 |
$76.38 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.923 |
.873 |
.690 |
.591 |
.572 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
3.298 |
20.849 |
15.176 |
7.682 |
(28.388) |
|
Total from Investment Operations |
4.221 |
21.722 |
15.866 |
8.273 |
(27.816) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.001) |
(.892) |
(.656) |
(.493) |
(.594) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.001) |
(.892) |
(.656) |
(.493) |
(.594) |
|
Net Asset Value, End of Period |
$95.01 |
$91.79 |
$70.96 |
$55.75 |
$47.97 |
|
Total Return2 |
4.61% |
30.82% |
28.64% |
17.44% |
-36.61% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$259 |
$316 |
$213 |
$115 |
$70 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
0.96% |
1.09% |
1.08% |
1.21% |
0.93% |
|
Portfolio Turnover Rate4 |
28% |
12% |
15% |
15% |
16% |
|
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 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Communication Services Index Fund
Notes to Financial Statements
Vanguard Communication Services Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
9
Communication Services Index Fund
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $128,000, representing less than 0.01% of the fund’s net assets and 0.05% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
5,918,049 |
— |
— |
5,918,049 |
|
Temporary Cash Investments |
36,473 |
— |
— |
36,473 |
|
Total |
5,954,522 |
— |
— |
5,954,522 |
|
Derivative Financial Instruments |
||||
|
Liabilities |
||||
|
Swap Contracts |
— |
(1,409) |
— |
(1,409) |
10
Communication Services Index Fund
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
1,222,469 |
|
Total Distributable Earnings (Loss) |
(1,222,469) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
5,646 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
325,142 |
|
Capital Loss Carryforwards |
(1,264,041) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
(933,253) |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
64,698 |
54,164 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
64,698 |
54,164 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
5,629,379 |
|
Gross Unrealized Appreciation |
759,244 |
|
Gross Unrealized Depreciation |
(434,101) |
|
Net Unrealized Appreciation (Depreciation) |
325,143 |
F.
During the year ended August 31, 2026, the fund purchased $1,697,513,000 of investment securities and sold $1,709,683,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $2,611,434,000 and $2,744,947,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $79,370,000 and sales were $452,000, resulting in net realized loss of $387,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
11
Communication Services Index Fund
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
2,629,989 |
14,043 |
1,776,091 |
10,886 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(2,703,696) |
(14,350) |
(1,405,896) |
(8,800) |
|
Net Increase (Decrease)—ETF Shares |
(73,707) |
(307) |
370,195 |
2,086 |
|
Admiral Shares |
||||
|
Issued |
129,288 |
1,343 |
148,447 |
1,819 |
|
Issued in Lieu of Cash Distributions |
2,790 |
29 |
2,305 |
29 |
|
Redeemed |
(200,374) |
(2,082) |
(111,524) |
(1,406) |
|
Net Increase (Decrease)—Admiral Shares |
(68,296) |
(710) |
39,228 |
442 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
12
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Communication Services Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Communication Services Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
13
For corporate shareholders, 98.8%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $59,709,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $280,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54880 102026
14
Financial Statements
For the year ended August 31, 2026
Vanguard U.S. Growth Fund
Contents
|
1 | |
|
13 | |
|
14 | |
U.S. Growth Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (98.5%) | |||
|
Communication Services (16.2%) | |||
|
Alphabet Inc. Class C |
9,198,344 |
3,085,217 | |
|
Meta Platforms Inc. Class A |
2,280,467 |
1,305,203 | |
|
Alphabet Inc. Class A |
3,524,294 |
1,195,969 | |
|
* |
Spotify Technology SA |
944,175 |
513,272 |
|
* |
Netflix Inc. |
5,302,739 |
429,787 |
|
*,1 |
Space Exploration Technologies Corp. Class A |
2,130,578 |
306,143 |
|
Walt Disney Co. |
1,222,074 |
131,434 | |
|
* |
Roblox Corp. Class A |
2,210,445 |
91,269 |
|
* |
AppLovin Corp. Class A |
240,596 |
75,080 |
|
7,133,374 | |||
|
Consumer Discretionary (9.0%) | |||
|
* |
Amazon.com Inc. |
5,550,935 |
1,441,966 |
|
* |
Tesla Inc. |
2,180,440 |
802,293 |
|
* |
DoorDash Inc. Class A |
2,713,054 |
628,723 |
|
Starbucks Corp. |
1,852,040 |
196,779 | |
|
* |
Wayfair Inc. Class A |
1,363,785 |
135,383 |
|
Hilton Worldwide Holdings Inc. |
427,909 |
135,339 | |
|
* |
SharkNinja Inc. |
702,169 |
135,161 |
|
* |
Duolingo Inc. |
760,799 |
112,872 |
|
Ross Stores Inc. |
462,347 |
105,665 | |
|
* |
DraftKings Inc. Class A |
3,820,864 |
92,809 |
|
* |
YETI Holdings Inc. |
1,901,857 |
78,071 |
|
* |
Rivian Automotive Inc. Class A |
2,476,760 |
39,777 |
|
* |
Sweetgreen Inc. Class A |
5,510,791 |
38,355 |
|
3,943,193 | |||
|
Consumer Staples (1.2%) | |||
|
Costco Wholesale Corp. |
304,846 |
287,741 | |
|
Walmart Inc. |
1,874,387 |
196,567 | |
|
*,1 |
Oddity Tech Ltd. Class A |
1,618,775 |
23,310 |
|
507,618 | |||
|
Financials (5.6%) | |||
|
Mastercard Inc. Class A |
2,071,189 |
1,220,573 | |
|
Visa Inc. Class A (XNYS) |
849,917 |
322,433 | |
|
MSCI Inc. |
336,456 |
191,995 | |
|
Nasdaq Inc. |
1,815,776 |
179,054 | |
|
* |
Corpay Inc. |
409,100 |
165,399 |
|
* |
Affirm Holdings Inc. |
1,786,296 |
132,990 |
|
* |
Block Inc. (XNYS) |
1,418,182 |
116,319 |
|
* |
Lemonade Inc. |
1,515,491 |
79,154 |
|
Morgan Stanley |
238,502 |
50,877 | |
|
* |
Coinbase Global Inc. Class A |
133,769 |
25,165 |
|
2,483,959 | |||
|
Health Care (8.0%) | |||
|
Eli Lilly & Co. |
1,190,037 |
1,376,551 | |
|
* |
Natera Inc. |
763,407 |
245,786 |
|
Ensign Group Inc. |
1,381,615 |
237,997 | |
|
* |
Vertex Pharmaceuticals Inc. |
383,653 |
208,907 |
|
* |
IDEXX Laboratories Inc. |
353,619 |
196,856 |
|
* |
Waters Corp. |
399,973 |
165,841 |
|
* |
Medline Inc. Class A |
4,350,723 |
152,406 |
|
* |
Intuitive Surgical Inc. |
375,728 |
141,597 |
|
* |
Guardant Health Inc. |
890,110 |
141,545 |
|
* |
United Therapeutics Corp. |
265,511 |
135,511 |
|
*,1 |
Tempus AI Inc. Class A |
1,934,556 |
121,974 |
|
* |
Alnylam Pharmaceuticals Inc. |
491,557 |
118,313 |
|
* |
Moderna Inc. |
781,392 |
109,661 |
|
Stryker Corp. |
314,181 |
101,732 | |
|
* |
Denali Therapeutics Inc. |
2,681,184 |
63,705 |
1
U.S. Growth Fund
|
Shares |
Market Value• ($000) | ||
|
*,2 |
ABIOMED Inc. CVR |
718,252 |
733 |
|
3,519,115 | |||
|
Industrials (6.7%) | |||
|
General Electric Co. |
2,413,108 |
810,104 | |
|
Vertiv Holdings Co. Class A |
1,628,505 |
421,327 | |
|
* |
Axon Enterprise Inc. |
542,973 |
307,627 |
|
* |
Boeing Co. |
995,764 |
206,900 |
|
GE Vernova Inc. |
213,322 |
191,676 | |
|
* |
Bloom Energy Corp. Class A |
854,991 |
176,385 |
|
Watsco Inc. |
540,388 |
167,423 | |
|
Fastenal Co. |
3,327,236 |
164,066 | |
|
* |
Loar Holdings Inc. |
1,416,548 |
99,427 |
|
* |
RBC Bearings Inc. |
196,294 |
97,020 |
|
Caterpillar Inc. (XNYS) |
117,288 |
93,534 | |
|
Eaton Corp. plc |
232,500 |
93,437 | |
|
Waste Connections Inc. (XTSE) |
512,782 |
84,773 | |
|
Cummins Inc. |
61,415 |
34,663 | |
|
2,948,362 | |||
|
Information Technology (50.3%) | |||
|
NVIDIA Corp. |
27,769,720 |
6,130,999 | |
|
Broadcom Inc. |
6,347,811 |
2,350,848 | |
|
Apple Inc. |
6,647,156 |
2,106,151 | |
|
Microsoft Corp. |
3,995,559 |
2,026,907 | |
|
* |
Shopify Inc. Class A (XTSE) |
4,875,950 |
718,569 |
|
* |
Advanced Micro Devices Inc. |
1,522,184 |
716,522 |
|
* |
Cloudflare Inc. Class A |
2,234,721 |
681,836 |
|
Corning Inc. |
3,350,665 |
498,344 | |
|
Micron Technology Inc. |
502,773 |
482,024 | |
|
* |
Snowflake Inc. |
1,351,625 |
447,969 |
|
KLA Corp. |
2,548,047 |
447,055 | |
|
Taiwan Semiconductor Manufacturing Co. Ltd. ADR |
1,041,027 |
432,359 | |
|
* |
Arista Networks Inc. |
2,174,114 |
425,452 |
|
* |
Cadence Design Systems Inc. |
1,171,361 |
396,834 |
|
* |
Datadog Inc. Class A |
1,657,303 |
392,847 |
|
Jabil Inc. |
1,176,408 |
359,110 | |
|
* |
Palo Alto Networks Inc. |
911,126 |
348,169 |
|
* |
Flex Ltd. |
3,134,979 |
342,497 |
|
Seagate Technology Holdings plc |
390,490 |
323,474 | |
|
Western Digital Corp. |
657,283 |
296,139 | |
|
* |
Palantir Technologies Inc. Class A |
1,560,887 |
290,918 |
|
Dell Technologies Inc. Class C |
631,685 |
288,055 | |
|
* |
Sandisk Corp. |
179,125 |
280,635 |
|
* |
Crowdstrike Holdings Inc. Class A |
1,118,679 |
258,415 |
|
* |
ARM Holdings plc ADR |
919,558 |
222,450 |
|
* |
Samsara Inc. Class A |
4,381,195 |
178,972 |
|
Amphenol Corp. Class A |
864,053 |
136,996 | |
|
* |
Workday Inc. Class A |
549,588 |
108,516 |
|
* |
Keysight Technologies Inc. |
323,729 |
104,467 |
|
Lam Research Corp. |
322,915 |
97,356 | |
|
* |
Credo Technology Group Holding Ltd. |
314,741 |
71,191 |
|
* |
Figma Inc. Class A |
2,213,696 |
60,855 |
|
*,1 |
Aurora Innovation Inc. |
9,766,772 |
54,987 |
|
* |
Circle Internet Group Inc. |
295,995 |
28,282 |
|
22,106,200 | |||
|
Materials (0.2%) | |||
|
* |
Knife River Corp. |
1,644,097 |
103,085 |
|
Real Estate (1.0%) | |||
|
Welltower Inc. |
1,193,903 |
282,048 | |
|
* |
CoStar Group Inc. |
4,870,324 |
156,191 |
|
Lineage Inc. |
643,075 |
25,241 | |
|
463,480 | |||
|
Utilities (0.3%) | |||
|
Constellation Energy Corp. |
445,745 |
122,477 | |
|
Total Common Stocks (Cost $22,393,847) |
43,330,863 | ||
2
U.S. Growth Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (1.6%) | |||
|
Money Market Fund (1.3%) | |||
|
3,4 |
Vanguard Market Liquidity Fund, 3.731% |
5,578,979 |
557,842 |
|
Face
Amount
($000) |
|||
|
Repurchase Agreements (0.3%) | |||
|
Bank of America Securities, LLC 3.670%, 9/1/2026
(Dated 8/31/2026, Repurchase Value $300, collateralized by U.S. Government Agency Obligations 3.000%–6.500%, 12/1/2026–7/1/2056, with a value of $306) |
300 |
300 | |
|
Nomura International plc 3.660%, 9/1/2026
(Dated 8/31/2026, Repurchase Value $24,703, collateralized by U.S. Treasury Obligations 0.750%–4.250%, 10/31/2027–5/15/2043, with a value of $25,194) |
24,700 |
24,700 | |
|
Societe Generale 3.660%, 9/1/2026
(Dated 8/31/2026, Repurchase Value $122,912, collateralized by U.S. Treasury Obligations 4.625%, 5/15/2054, with a value of $125,358) |
122,900 |
122,900 | |
|
147,900 | |||
|
Total Temporary Cash Investments (Cost $705,672) |
705,742 | ||
|
Total Investments (100.1%) (Cost $23,099,519) |
44,036,605 | ||
|
Other Assets and Liabilities—Net (-0.1%) |
(60,443) | ||
|
Net Assets (100%) |
43,976,162 | ||
|
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 $59,620. |
|
2 |
Security value determined using significant unobservable inputs. |
|
3 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
4 |
Collateral of $61,126 was received for securities on loan. |
|
ADR—American Depositary Receipt. | |
|
CVR—Contingent Value Rights. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
E-mini NASDAQ 100 Index |
September 2026 |
667 |
393,703 |
1,550 |
See accompanying Notes, which are an integral part of the Financial Statements.
3
U.S. Growth Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $22,541,747) |
43,478,763 |
|
Affiliated Issuers (Cost $557,772) |
557,842 |
|
Total Investments in Securities |
44,036,605 |
|
Investment in Vanguard |
930 |
|
Cash |
2,828 |
|
Cash Collateral Pledged—Futures Contracts |
30,301 |
|
Foreign Currency, at Value (Cost $988) |
1,083 |
|
Receivables for Investment Securities Sold |
11,408 |
|
Receivables for Accrued Income |
11,530 |
|
Receivables for Capital Shares Issued |
4,189 |
|
Variation Margin Receivable—Futures Contracts |
296 |
|
Total Assets |
44,099,170 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
15,682 |
|
Collateral for Securities on Loan |
61,126 |
|
Payables to Investment Advisor |
12,013 |
|
Payables for Capital Shares Redeemed |
31,239 |
|
Payables to Vanguard |
2,911 |
|
Other Liabilities |
37 |
|
Total Liabilities |
123,008 |
|
Net Assets |
43,976,162 |
|
1 Includes $59,620 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
14,849,040 |
|
Total Distributable Earnings (Loss) |
29,127,122 |
|
Net Assets |
43,976,162 |
|
Investor Shares—Net Assets |
|
|
Applicable to 114,392,572 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
8,774,201 |
|
Net Asset Value Per Share—Investor Shares |
$76.70 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 177,093,092 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
35,201,961 |
|
Net Asset Value Per Share—Admiral Shares |
$198.78 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
U.S. Growth Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends1 |
160,088 |
|
Interest2 |
28,955 |
|
Securities Lending—Net |
2,230 |
|
Total Income |
191,273 |
|
Expenses |
|
|
Investment Advisory Fees—Note B |
|
|
Basic Fee |
68,920 |
|
Performance Adjustment |
(12,023 ) |
|
The Vanguard Group—Note C |
|
|
Management and Administrative—Investor Shares3 |
20,492 |
|
Management and Administrative—Admiral Shares3 |
46,668 |
|
Marketing and Distribution—Investor Shares |
475 |
|
Marketing and Distribution—Admiral Shares |
1,275 |
|
Custodian Fees |
196 |
|
Auditing Fees |
56 |
|
Accounting Fees3 |
93 |
|
Shareholders’ Reports—Investor Shares3 |
164 |
|
Shareholders’ Reports—Admiral Shares3 |
148 |
|
Trustees’ Fees and Expenses |
25 |
|
Other Expenses |
17 |
|
Total Expenses |
126,506 |
|
Expenses Paid Indirectly |
(290 ) |
|
Net Expenses |
126,216 |
|
Net Investment Income |
65,057 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2 |
9,597,115 |
|
Futures Contracts |
91,268 |
|
Foreign Currencies |
(252 ) |
|
Realized Net Gain (Loss) |
9,688,131 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
(7,536,229 ) |
|
Futures Contracts |
(9,449 ) |
|
Foreign Currencies |
(8 ) |
|
Change in Unrealized Appreciation (Depreciation) |
(7,545,686 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,207,502 |
|
1 |
Dividends are net of foreign withholding taxes of $1,864. |
|
2 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $19,987, $82, and ($16), respectively. Purchases and sales are for temporary cash investment purposes. |
|
3 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
U.S. Growth Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
65,057 |
112,520 |
|
Realized Net Gain (Loss) |
9,688,131 |
3,741,837 |
|
Change in Unrealized Appreciation (Depreciation) |
(7,545,686 ) |
5,943,900 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,207,502 |
9,798,257 |
|
Distributions |
||
|
Investor Shares |
(807,658 ) |
(455,835 ) |
|
Admiral Shares |
(3,404,497 ) |
(1,693,525 ) |
|
Total Distributions |
(4,212,155 ) |
(2,149,360 ) |
|
Capital Share Transactions |
||
|
Investor Shares |
(1,314,004 ) |
(1,159,885 ) |
|
Admiral Shares |
(1,960,727 ) |
(2,459,782 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
(3,274,731 ) |
(3,619,667 ) |
|
Total Increase (Decrease) |
(5,279,384 ) |
4,029,230 |
|
Net Assets |
||
|
Beginning of Period |
49,255,546 |
45,226,316 |
|
End of Period |
43,976,162 |
49,255,546 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
U.S. Growth Fund
Financial Highlights
|
Investor Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$80.23 |
$68.21 |
$52.21 |
$43.59 |
$76.41 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.044 |
.118 |
.126 |
.169 |
.074 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
3.482 |
15.186 |
16.033 |
8.595 |
(24.184) |
|
Total from Investment Operations |
3.526 |
15.304 |
16.159 |
8.764 |
(24.110) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.050) |
(.141) |
(.159) |
(.144) |
(.001) |
|
Distributions from Realized Capital Gains |
(7.006) |
(3.143) |
— |
— |
(8.709) |
|
Total Distributions |
(7.056) |
(3.284) |
(.159) |
(.144) |
(8.710) |
|
Net Asset Value, End of Period |
$76.70 |
$80.23 |
$68.21 |
$52.21 |
$43.59 |
|
Total Return2 |
4.78% |
22.99% |
31.01% |
20.19% |
-35.32% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$8,774 |
$10,434 |
$9,898 |
$8,710 |
$7,935 |
|
Ratio of Total Expenses to Average Net Assets3 |
0.35%4 |
0.35%4 |
0.32%5 |
0.30%4 |
0.33%4 |
|
Ratio of Net Investment Income to Average Net Assets |
0.06% |
0.16% |
0.21% |
0.38% |
0.13% |
|
Portfolio Turnover Rate |
58% |
29% |
37% |
37% |
23% |
|
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 |
Includes performance-based investment advisory fee increases (decreases) of (0.03%), (0.03%), (0.06%), (0.06%), and (0.02%). |
|
4 |
The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.35%, 0.35%, 0.30%, and 0.33%, respectively. |
|
5 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.32%. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
U.S. Growth Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$207.96 |
$176.81 |
$135.31 |
$112.99 |
$198.03 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.318 |
.492 |
.482 |
.552 |
.338 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
9.034 |
39.360 |
41.557 |
22.260 |
(62.667) |
|
Total from Investment Operations |
9.352 |
39.852 |
42.039 |
22.812 |
(62.329) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.365) |
(.552) |
(.539) |
(.492) |
(.135) |
|
Distributions from Realized Capital Gains |
(18.167) |
(8.150) |
— |
— |
(22.576) |
|
Total Distributions |
(18.532) |
(8.702) |
(.539) |
(.492) |
(22.711) |
|
Net Asset Value, End of Period |
$198.78 |
$207.96 |
$176.81 |
$135.31 |
$112.99 |
|
Total Return2 |
4.90% |
23.10% |
31.15% |
20.30% |
-35.26% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$35,202 |
$38,822 |
$35,328 |
$29,183 |
$26,547 |
|
Ratio of Total Expenses to Average Net Assets3 |
0.25%4 |
0.25%4 |
0.22%5 |
0.20%4 |
0.23%4 |
|
Ratio of Net Investment Income to Average Net Assets |
0.16% |
0.26% |
0.31% |
0.48% |
0.23% |
|
Portfolio Turnover Rate |
58% |
29% |
37% |
37% |
23% |
|
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 |
Includes performance-based investment advisory fee increases (decreases) of (0.03%), (0.03%), (0.06%), (0.06%), and (0.02%). |
|
4 |
The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.25%, 0.25%, 0.20%, and 0.23%, respectively. |
|
5 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset and broker commission abatement arrangements was 0.22%. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
U.S. Growth Fund
Notes to Financial Statements
Vanguard U.S. Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Other temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
4. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
7. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell
9
U.S. Growth Fund
or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
8. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
The investment advisory firms Baillie Gifford Overseas Ltd., Jennison Associates LLC, and Wellington Management Company LLP. each provide
investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor.
The basic fee of Baillie Gifford Overseas Ltd. is subject to quarterly adjustments based on performance relative to the S&P 500 Index for periods prior
to August 1, 2024, and to the new benchmark Russell 3000 Growth Index, beginning August 1, 2024, for the preceding three years. The basic fees of Jennison Associates LLC and Wellington Management Company LLP are subject to quarterly adjustments based on performance relative to the Russell 1000 Growth Index for the preceding three years. The benchmark change will be fully phased in by August 2027.
Vanguard, through its wholly owned subsidiary Vanguard Portfolio Management, LLC, manages the cash reserves of the fund as described below.
For the year ended August 31, 2026, the aggregate investment advisory fee paid to all advisors represented an effective annual basic rate of 0.15% of the fund’s average net assets, before a net decrease of $12,023,000 (0.03%) based on performance.
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, distribution and cash management 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.
From time to time, Vanguard and/or a fund’s board of trustees may adjust a fund’s fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $930,000, representing less than 0.01% of the fund’s net assets and 0.37% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
The fund has asked its investment advisors to direct certain security trades, subject to obtaining the best price and execution, to brokers who have
agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative
expenses. For the year ended August 31, 2026, these arrangements reduced the fund’s expenses by $290,000 (an annual rate of less than 0.01% of average net assets).
10
U.S. Growth Fund
E.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
43,330,130 |
— |
733 |
43,330,863 |
|
Temporary Cash Investments |
557,842 |
147,900 |
— |
705,742 |
|
Total |
43,887,972 |
147,900 |
733 |
44,036,605 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Futures Contracts1 |
1,550 |
— |
— |
1,550 |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
466,731 |
|
Total Distributable Earnings (Loss) |
(466,731) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
348 |
|
Undistributed Long-Term Gains |
8,358,156 |
|
Net Unrealized Gains (Losses) |
20,768,618 |
|
Capital Loss Carryforwards |
— |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
29,127,122 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
317,731 |
252,410 |
|
Long-Term Capital Gains |
3,894,424 |
1,896,950 |
|
Total |
4,212,155 |
2,149,360 |
|
* |
Includes short-term capital gains, if any. |
11
U.S. Growth Fund
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
23,268,090 |
|
Gross Unrealized Appreciation |
22,252,863 |
|
Gross Unrealized Depreciation |
(1,484,348) |
|
Net Unrealized Appreciation (Depreciation) |
20,768,515 |
G.
During the year ended August 31, 2026, the fund purchased $26,456,636,000 of investment securities and sold $33,349,113,000 of investment securities, other than temporary cash investments.
The fund purchased securities from and sold securities to other funds or accounts managed by its investment advisors or their affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $106,774,000 and sales were $33,116,000, resulting in net realized gain of $12,015,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
H.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
Investor Shares |
||||
|
Issued |
368,291 |
4,809 |
915,313 |
13,703 |
|
Issued in Lieu of Cash Distributions |
778,320 |
10,595 |
438,407 |
6,088 |
|
Redeemed |
(2,460,615) |
(31,064) |
(2,513,605) |
(34,850) |
|
Net Increase (Decrease)—Investor Shares |
(1,314,004) |
(15,660) |
(1,159,885) |
(15,059) |
|
Admiral Shares |
||||
|
Issued |
2,584,258 |
12,675 |
2,453,896 |
13,213 |
|
Issued in Lieu of Cash Distributions |
3,155,075 |
16,585 |
1,583,818 |
8,491 |
|
Redeemed |
(7,700,060) |
(38,851) |
(6,497,496) |
(34,834) |
|
Net Increase (Decrease)—Admiral Shares |
(1,960,727) |
(9,591) |
(2,459,782) |
(13,130) |
I.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
J.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
K.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
12
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard U.S. Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard U.S. Growth Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
13
For corporate shareholders, 46.3%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $160,318,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $10,367,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund for the fiscal year are qualified short-term capital gains.
The fund distributed $4,358,093,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.
Q230 102026
14
Financial Statements
For the year ended August 31, 2026
Vanguard Utilities Index Fund
Contents
|
1 | |
|
12 | |
|
13 | |
Utilities Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.7%) | |||
|
Electric Utilities (61.3%) | |||
|
NextEra Energy Inc. |
14,371,494 |
1,183,349 | |
|
Southern Co. |
7,767,985 |
683,583 | |
|
Duke Energy Corp. |
5,372,016 |
644,158 | |
|
Constellation Energy Corp. |
2,153,127 |
591,615 | |
|
American Electric Power Co. Inc. |
3,749,313 |
459,028 | |
|
Entergy Corp. |
3,215,195 |
341,807 | |
|
Xcel Energy Inc. |
4,301,685 |
325,594 | |
|
Exelon Corp. |
7,050,647 |
308,254 | |
|
PG&E Corp. |
15,175,014 |
201,372 | |
|
Eversource Energy |
2,591,454 |
181,765 | |
|
PPL Corp. |
5,184,207 |
176,937 | |
|
FirstEnergy Corp. |
3,786,472 |
173,648 | |
|
NRG Energy Inc. |
1,381,166 |
152,094 | |
|
Edison International |
2,651,516 |
143,129 | |
|
Evergy Inc. |
1,588,374 |
128,690 | |
|
Alliant Energy Corp. |
1,626,708 |
110,584 | |
|
Pinnacle West Capital Corp. |
835,043 |
81,534 | |
|
OGE Energy Corp. |
1,421,933 |
64,883 | |
|
IDACORP Inc. |
381,779 |
51,983 | |
|
TXNM Energy Inc. |
686,540 |
39,551 | |
|
Portland General Electric Co. |
797,400 |
38,961 | |
|
*,1 |
Oklo Inc. |
894,773 |
36,301 |
|
Otter Tail Corp. |
260,688 |
23,584 | |
|
MGE Energy Inc. |
260,041 |
20,203 | |
|
* |
Hawaiian Electric Industries Inc. |
1,191,854 |
13,373 |
|
Genie Energy Ltd. Class B |
90,184 |
1,338 | |
|
6,177,318 | |||
|
Gas Utilities (5.0%) | |||
|
Atmos Energy Corp. |
1,150,205 |
191,084 | |
|
UGI Corp. |
1,477,304 |
56,802 | |
|
National Fuel Gas Co. |
622,102 |
51,672 | |
|
Southwest Gas Holdings Inc. |
461,279 |
40,745 | |
|
New Jersey Resources Corp. |
695,379 |
37,092 | |
|
ONE Gas Inc. |
432,409 |
34,277 | |
|
Spire Inc. |
407,294 |
33,333 | |
|
MDU Resources Group Inc. |
1,368,197 |
27,254 | |
|
Chesapeake Utilities Corp. |
165,622 |
22,117 | |
|
Northwest Natural Holding Co. |
282,637 |
13,869 | |
|
508,245 | |||
|
Independent Power and Renewable Electricity Producers (5.5%) | |||
|
Vistra Corp. |
2,323,472 |
319,175 | |
|
* |
Talen Energy Corp. |
280,531 |
82,970 |
|
AES Corp. |
4,914,237 |
72,436 | |
|
Ormat Technologies Inc. (XNYS) |
358,455 |
36,562 | |
|
Clearway Energy Inc. Class C |
814,064 |
25,847 | |
|
* |
Fervo Energy Co. Class A |
543,293 |
8,356 |
|
* |
XPLR Infrastructure LP |
633,252 |
7,599 |
|
* |
Hallador Energy Co. |
243,755 |
4,041 |
|
556,986 | |||
|
Multi-Utilities (24.6%) | |||
|
Dominion Energy Inc. |
6,060,564 |
400,058 | |
|
Sempra |
4,504,559 |
368,022 | |
|
Consolidated Edison Inc. |
2,539,437 |
271,771 | |
|
Public Service Enterprise Group Inc. |
3,433,780 |
251,799 | |
|
WEC Energy Group Inc. |
2,244,478 |
238,296 | |
|
Ameren Corp. |
1,907,005 |
202,162 | |
|
DTE Energy Co. |
1,433,446 |
194,418 | |
|
CenterPoint Energy Inc. |
4,507,688 |
178,504 | |
1
Utilities Index Fund
|
Shares |
Market Value• ($000) | ||
|
CMS Energy Corp. |
2,128,695 |
144,879 | |
|
NiSource Inc. |
3,303,710 |
135,188 | |
|
Black Hills Corp. |
524,558 |
37,600 | |
|
Northwestern Energy Group Inc. |
423,794 |
29,310 | |
|
Avista Corp. |
569,877 |
21,177 | |
|
Unitil Corp. |
124,137 |
6,646 | |
|
2,479,830 | |||
|
Water Utilities (3.3%) | |||
|
American Water Works Co. Inc. |
1,260,671 |
174,262 | |
|
Essential Utilities Inc. |
1,856,790 |
76,444 | |
|
American States Water Co. |
270,048 |
24,113 | |
|
California Water Service Group |
412,394 |
20,607 | |
|
H2O America |
237,814 |
15,070 | |
|
Middlesex Water Co. |
128,320 |
7,442 | |
|
York Water Co. |
111,608 |
3,804 | |
|
Consolidated Water Co. Ltd. |
104,589 |
3,114 | |
|
Artesian Resources Corp. Class A |
61,874 |
2,201 | |
|
* |
Cadiz Inc. |
375,283 |
1,490 |
|
328,547 | |||
|
Total Common Stocks (Cost $8,469,310) |
10,050,926 | ||
|
Temporary Cash Investments (0.0%) | |||
|
Money Market Fund (0.0%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $1,255) |
12,550 |
1,255 |
|
Total Investments (99.7%) (Cost $8,470,565) |
10,052,181 | ||
|
Other Assets and Liabilities—Net (0.3%) |
33,360 | ||
|
Net Assets (100.0%) |
10,085,541 | ||
|
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 $531. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $537 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Alliant Energy Corp. |
8/31/2027 |
BANA |
10,456 |
(3.630 ) |
— |
(61) |
|
American Water Works Co. Inc. |
8/31/2027 |
BANA |
11,696 |
(3.630 ) |
122 |
— |
|
Oklo Inc. |
2/1/2027 |
GSI |
6,845 |
(3.630 ) |
— |
(526) |
|
Ormat Technologies Inc. |
8/31/2027 |
BANA |
6,906 |
(3.630 ) |
— |
(272) |
|
122 |
(859) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
GSI—Goldman Sachs International. |
See accompanying Notes, which are an integral part of the Financial Statements.
2
Utilities Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $8,469,310) |
10,050,926 |
|
Affiliated Issuers (Cost $1,255) |
1,255 |
|
Total Investments in Securities |
10,052,181 |
|
Investment in Vanguard |
227 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
600 |
|
Receivables for Investment Securities Sold |
23,884 |
|
Receivables for Accrued Income |
42,261 |
|
Receivables for Capital Shares Issued |
1,792 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
122 |
|
Total Assets |
10,121,067 |
|
Liabilities |
|
|
Due to Custodian |
521 |
|
Payables for Investment Securities Purchased |
29,747 |
|
Collateral for Securities on Loan |
537 |
|
Payables for Capital Shares Redeemed |
2,793 |
|
Payables to Vanguard |
409 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
859 |
|
Other Liabilities |
660 |
|
Total Liabilities |
35,526 |
|
Net Assets |
10,085,541 |
|
1 Includes $531 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
8,876,688 |
|
Total Distributable Earnings (Loss) |
1,208,853 |
|
Net Assets |
10,085,541 |
|
ETF Shares—Net Assets |
|
|
Applicable to 44,696,349 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
8,170,505 |
|
Net Asset Value Per Share—ETF Shares |
$182.80 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 20,880,545 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
1,915,036 |
|
Net Asset Value Per Share—Admiral Shares |
$91.71 |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Utilities Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
285,874 |
|
Interest1 |
1,002 |
|
Securities Lending—Net |
64 |
|
Total Income |
286,940 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
105 |
|
Management and Administrative—ETF Shares2 |
6,761 |
|
Management and Administrative—Admiral Shares2 |
1,653 |
|
Marketing and Distribution—ETF Shares |
268 |
|
Marketing and Distribution—Admiral Shares |
99 |
|
Custodian Fees |
43 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
44 |
|
Shareholders’ Reports—ETF Shares2 |
252 |
|
Shareholders’ Reports—Admiral Shares2 |
15 |
|
Trustees’ Fees and Expenses |
6 |
|
Other Expenses |
17 |
|
Total Expenses |
9,298 |
|
Net Investment Income |
277,642 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
95,731 |
|
Swap Contracts |
(2,541 ) |
|
Realized Net Gain (Loss) |
93,190 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
(145,345 ) |
|
Swap Contracts |
(737 ) |
|
Change in Unrealized Appreciation (Depreciation) |
(146,082 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
224,750 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $998, $1, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $132,055 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Utilities Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
277,642 |
243,577 |
|
Realized Net Gain (Loss) |
93,190 |
136,699 |
|
Change in Unrealized Appreciation (Depreciation) |
(146,082 ) |
725,920 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
224,750 |
1,106,196 |
|
Distributions |
||
|
ETF Shares |
(220,696 ) |
(198,238 ) |
|
Admiral Shares |
(53,875 ) |
(50,576 ) |
|
Total Distributions |
(274,571 ) |
(248,814 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
820,271 |
364,830 |
|
Admiral Shares |
63,902 |
32,519 |
|
Net Increase (Decrease) from Capital Share Transactions |
884,173 |
397,349 |
|
Total Increase (Decrease) |
834,352 |
1,254,731 |
|
Net Assets |
||
|
Beginning of Period |
9,251,189 |
7,996,458 |
|
End of Period |
10,085,541 |
9,251,189 |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Utilities Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$182.78 |
$165.04 |
$136.43 |
$161.46 |
$149.52 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
5.192 |
4.935 |
4.835 |
4.708 |
4.393 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
(.004) |
17.846 |
28.640 |
(25.005) |
11.897 |
|
Total from Investment Operations |
5.188 |
22.781 |
33.475 |
(20.297) |
16.290 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(5.168) |
(5.041) |
(4.865) |
(4.733) |
(4.350) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(5.168) |
(5.041) |
(4.865) |
(4.733) |
(4.350) |
|
Net Asset Value, End of Period |
$182.80 |
$182.78 |
$165.04 |
$136.43 |
$161.46 |
|
Total Return |
2.75% |
14.09% |
25.31% |
-12.75% |
11.18% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$8,171 |
$7,398 |
$6,351 |
$5,071 |
$6,030 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.69% |
2.86% |
3.41% |
3.19% |
2.87% |
|
Portfolio Turnover Rate3 |
5% |
6% |
5% |
4% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Utilities Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$91.70 |
$82.80 |
$68.45 |
$81.00 |
$75.01 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.596 |
2.471 |
2.423 |
2.351 |
2.212 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
.007 |
8.958 |
14.368 |
(12.527) |
5.961 |
|
Total from Investment Operations |
2.603 |
11.429 |
16.791 |
(10.176) |
8.173 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.593) |
(2.529) |
(2.441) |
(2.374) |
(2.183) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.593) |
(2.529) |
(2.441) |
(2.374) |
(2.183) |
|
Net Asset Value, End of Period |
$91.71 |
$91.70 |
$82.80 |
$68.45 |
$81.00 |
|
Total Return2 |
2.75% |
14.09% |
25.29% |
-12.73% |
11.22% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$1,915 |
$1,853 |
$1,645 |
$1,445 |
$1,877 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.68% |
2.85% |
3.41% |
3.17% |
2.88% |
|
Portfolio Turnover Rate4 |
5% |
6% |
5% |
4% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Utilities Index Fund
Notes to Financial Statements
Vanguard Utilities Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may
8
Utilities Index Fund
be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $227,000, representing less than 0.01% of the fund’s net assets and 0.09% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
10,050,926 |
— |
— |
10,050,926 |
|
Temporary Cash Investments |
1,255 |
— |
— |
1,255 |
|
Total |
10,052,181 |
— |
— |
10,052,181 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
122 |
— |
122 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(859) |
— |
(859) |
9
Utilities Index Fund
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
131,304 |
|
Total Distributable Earnings (Loss) |
(131,304) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
45,954 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
1,542,230 |
|
Capital Loss Carryforwards |
(379,331) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
1,208,853 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
274,571 |
248,814 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
274,571 |
248,814 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
8,509,950 |
|
Gross Unrealized Appreciation |
1,821,119 |
|
Gross Unrealized Depreciation |
(278,888) |
|
Net Unrealized Appreciation (Depreciation) |
1,542,231 |
F.
During the year ended August 31, 2026, the fund purchased $666,908,000 of investment securities and sold $507,649,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,083,043,000 and $355,066,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,175,404 |
6,072 |
1,003,446 |
5,790 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(355,133) |
(1,850) |
(638,616) |
(3,800) |
|
Net Increase (Decrease)—ETF Shares |
820,271 |
4,222 |
364,830 |
1,990 |
10
Utilities Index Fund
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount ($000) |
Shares (000) |
Amount ($000) |
Shares (000) | |
|
Admiral Shares |
||||
|
Issued |
519,164 |
5,370 |
413,487 |
4,773 |
|
Issued in Lieu of Cash Distributions |
41,043 |
429 |
38,472 |
454 |
|
Redeemed |
(496,305) |
(5,130) |
(419,440) |
(4,882) |
|
Net Increase (Decrease)—Admiral Shares |
63,902 |
669 |
32,519 |
345 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
11
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Utilities Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Utilities Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
12
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $256,355,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $518,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54890 102026
13
Financial Statements
For the year ended August 31, 2026
Vanguard Consumer Discretionary Index Fund
Contents
|
1 | |
|
15 | |
|
16 | |
Consumer Discretionary Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.9%) | |||
|
Automobile Components (2.5%) | |||
|
BorgWarner Inc. (XNYS) |
271,492 |
17,419 | |
|
* |
Aptiv plc |
284,681 |
12,742 |
|
Autoliv Inc. |
100,003 |
12,121 | |
|
Lear Corp. |
81,635 |
10,204 | |
|
Garrett Motion Inc. |
342,611 |
9,233 | |
|
Gentex Corp. |
393,987 |
8,814 | |
|
* |
Versigent plc |
171,052 |
8,108 |
|
* |
Dorman Products Inc. |
61,731 |
7,954 |
|
Dana Inc. |
231,716 |
6,947 | |
|
Visteon Corp. |
66,033 |
6,724 | |
|
Phinia Inc. |
94,848 |
6,491 | |
|
* |
Goodyear Tire & Rubber Co. |
1,014,445 |
6,361 |
|
Patrick Industries Inc. |
77,232 |
6,311 | |
|
LCI Industries |
61,560 |
6,195 | |
|
* |
QuantumScape Corp. |
1,022,526 |
5,716 |
|
* |
Adient plc |
289,888 |
5,499 |
|
* |
Dauch Corp. |
868,185 |
5,435 |
|
* |
Mobileye Global Inc. Class A |
597,332 |
5,095 |
|
* |
Gentherm Inc. |
115,385 |
4,534 |
|
* |
XPEL Inc. |
90,729 |
4,469 |
|
* |
Fox Factory Holding Corp. |
161,580 |
3,301 |
|
Standard Motor Products Inc. |
77,128 |
2,909 | |
|
* |
Cooper-Standard Holdings Inc. |
64,562 |
1,729 |
|
* |
Solid Power Inc. |
691,517 |
1,611 |
|
* |
Holley Inc. |
302,732 |
866 |
|
166,788 | |||
|
Automobiles (18.2%) | |||
|
* |
Tesla Inc. |
2,771,579 |
1,019,802 |
|
General Motors Co. |
950,105 |
82,013 | |
|
Ford Motor Co. |
4,099,909 |
57,153 | |
|
* |
Rivian Automotive Inc. Class A |
1,274,133 |
20,463 |
|
Thor Industries Inc. |
106,033 |
8,058 | |
|
Harley-Davidson Inc. |
285,373 |
7,876 | |
|
*,1 |
Lucid Group Inc. |
669,084 |
3,245 |
|
Winnebago Industries Inc. |
103,507 |
3,115 | |
|
1,201,725 | |||
|
Broadline Retail (25.3%) | |||
|
* |
Amazon.com Inc. |
5,703,211 |
1,481,523 |
|
* |
MercadoLibre Inc. |
46,594 |
90,215 |
|
eBay Inc. |
426,407 |
44,159 | |
|
* |
Etsy Inc. |
156,570 |
12,734 |
|
Macy's Inc. |
475,377 |
10,439 | |
|
* |
Ollie's Bargain Outlet Holdings Inc. |
111,623 |
8,419 |
|
Kohl's Corp. |
421,342 |
7,508 | |
|
Dillard's Inc. Class A |
10,745 |
6,726 | |
|
* |
Pattern Group Inc. Class A |
125,332 |
2,598 |
|
* |
Savers Value Village Inc. |
224,736 |
2,322 |
|
*,1 |
Groupon Inc. |
76,492 |
1,467 |
|
* |
Eightco Holdings Inc. |
311,011 |
238 |
|
1,668,348 | |||
|
Distributors (0.8%) | |||
|
Genuine Parts Co. |
178,752 |
24,251 | |
|
LKQ Corp. |
417,750 |
10,485 | |
|
Pool Corp. |
55,440 |
10,341 | |
|
* |
GigaCloud Technology Inc. Class A |
96,128 |
4,665 |
|
Gold.com Inc. |
75,842 |
3,411 | |
|
53,153 | |||
1
Consumer Discretionary Index Fund
|
Shares |
Market Value• ($000) | ||
|
Diversified Consumer Services (2.2%) | |||
|
Service Corp. International |
183,924 |
15,016 | |
|
H&R Block Inc. |
233,990 |
12,086 | |
|
* |
Duolingo Inc. |
74,074 |
10,990 |
|
* |
Frontdoor Inc. |
135,495 |
10,957 |
|
* |
Laureate Education Inc. |
241,395 |
9,060 |
|
* |
Covista Inc. |
66,700 |
8,826 |
|
ADT Inc. |
1,181,476 |
8,731 | |
|
* |
Bright Horizons Family Solutions Inc. |
115,668 |
8,580 |
|
* |
Grand Canyon Education Inc. |
52,624 |
7,795 |
|
Graham Holdings Co. Class B |
6,870 |
7,755 | |
|
* |
Stride Inc. |
86,723 |
7,518 |
|
OneSpaWorld Holdings Ltd. |
273,020 |
6,779 | |
|
Perdoceo Education Corp. |
184,989 |
6,149 | |
|
Strategic Education Inc. |
73,467 |
6,086 | |
|
* |
Coursera Inc. |
851,232 |
5,550 |
|
* |
Universal Technical Institute Inc. |
164,394 |
3,474 |
|
* |
American Public Education Inc. |
63,934 |
2,919 |
|
* |
Driven Brands Holdings Inc. |
222,540 |
2,764 |
|
* |
Lincoln Educational Services Corp. |
107,219 |
2,698 |
|
Matthews International Corp. Class A |
108,471 |
2,253 | |
|
Carriage Services Inc. |
55,313 |
1,861 | |
|
* |
KinderCare Learning Cos. Inc. |
113,928 |
287 |
|
148,134 | |||
|
Hotels, Restaurants & Leisure (21.9%) | |||
|
McDonald's Corp. |
707,717 |
186,512 | |
|
Booking Holdings Inc. |
783,714 |
156,030 | |
|
Starbucks Corp. |
1,146,597 |
121,826 | |
|
* |
DoorDash Inc. Class A |
388,264 |
89,976 |
|
* |
Airbnb Inc. Class A |
439,804 |
80,581 |
|
Marriott International Inc. Class A |
228,847 |
78,211 | |
|
Hilton Worldwide Holdings Inc. |
237,659 |
75,167 | |
|
Royal Caribbean Cruises Ltd. |
265,545 |
71,363 | |
|
* |
Chipotle Mexican Grill Inc. |
1,389,810 |
52,854 |
|
Yum! Brands Inc. |
293,997 |
45,073 | |
|
Expedia Group Inc. |
130,115 |
41,262 | |
|
Carnival Corp. Ltd. |
1,406,624 |
33,604 | |
|
Darden Restaurants Inc. |
132,019 |
28,286 | |
|
* |
Flutter Entertainment plc |
194,853 |
19,520 |
|
Aramark |
334,959 |
18,862 | |
|
Texas Roadhouse Inc. |
87,641 |
17,143 | |
|
Las Vegas Sands Corp. |
371,524 |
16,276 | |
|
* |
Brinker International Inc. |
67,539 |
15,433 |
|
Domino's Pizza Inc. |
42,522 |
14,545 | |
|
* |
DraftKings Inc. Class A |
590,747 |
14,349 |
|
* |
MGM Resorts International |
290,628 |
12,020 |
|
* |
Norwegian Cruise Line Holdings Ltd. |
723,830 |
11,683 |
|
* |
Life Time Group Holdings Inc. |
267,599 |
11,245 |
|
Cheesecake Factory Inc. |
101,406 |
11,103 | |
|
Wynn Resorts Ltd. |
117,360 |
10,713 | |
|
Hyatt Hotels Corp. Class A |
63,208 |
10,554 | |
|
* |
Caesars Entertainment Inc. |
339,527 |
10,084 |
|
* |
Dutch Bros Inc. Class A |
202,501 |
9,894 |
|
Churchill Downs Inc. |
109,032 |
9,538 | |
|
Vail Resorts Inc. |
68,428 |
9,369 | |
|
Wyndham Hotels & Resorts Inc. |
126,843 |
9,343 | |
|
* |
Cava Group Inc. |
138,039 |
9,076 |
|
Travel & Leisure Co. |
125,956 |
8,661 | |
|
Marriott Vacations Worldwide Corp. |
78,505 |
8,185 | |
|
* |
Planet Fitness Inc. Class A |
157,771 |
8,141 |
|
Boyd Gaming Corp. |
104,877 |
8,137 | |
|
Red Rock Resorts Inc. Class A |
127,334 |
7,151 | |
|
* |
Rush Street Interactive Inc. |
275,363 |
7,093 |
|
* |
Shake Shack Inc. Class A |
102,561 |
7,065 |
|
Choice Hotels International Inc. |
64,131 |
6,629 | |
|
Wingstop Inc. |
59,548 |
6,519 | |
|
* |
Penn Entertainment Inc. |
377,223 |
6,303 |
|
* |
Hilton Grand Vacations Inc. |
144,465 |
6,127 |
|
Monarch Casino & Resort Inc. |
47,937 |
5,774 | |
2
Consumer Discretionary Index Fund
|
Shares |
Market Value• ($000) | ||
|
1 |
Wendy's Co. |
623,789 |
5,177 |
|
* |
Lindblad Expeditions Holdings Inc. |
188,414 |
5,004 |
|
* |
Six Flags Entertainment Corp. |
309,431 |
4,657 |
|
Cracker Barrel Old Country Store Inc. |
81,845 |
4,521 | |
|
* |
BJ's Restaurants Inc. |
63,486 |
4,037 |
|
* |
Pursuit Attractions & Hospitality Inc. |
79,277 |
3,805 |
|
* |
Bloomin' Brands Inc. |
296,040 |
3,049 |
|
Papa John's International Inc. |
127,085 |
2,984 | |
|
* |
First Watch Restaurant Group Inc. |
230,563 |
2,924 |
|
* |
United Parks & Resorts Inc. |
72,538 |
2,902 |
|
* |
Sweetgreen Inc. Class A |
381,129 |
2,653 |
|
* |
Sabre Corp. |
1,219,559 |
2,646 |
|
* |
Target Hospitality Corp. |
125,385 |
2,322 |
|
* |
Accel Entertainment Inc. |
197,628 |
2,300 |
|
Dine Brands Global Inc. |
47,059 |
1,557 | |
|
* |
El Pollo Loco Holdings Inc. |
92,914 |
1,419 |
|
* |
Kura Sushi USA Inc. Class A |
25,749 |
1,176 |
|
* |
Portillo's Inc. Class A |
249,661 |
1,141 |
|
* |
Krispy Kreme Inc. |
315,078 |
1,078 |
|
* |
Dave & Buster's Entertainment Inc. |
103,686 |
930 |
|
* |
Biglari Holdings Inc. Class B |
2,364 |
918 |
|
* |
Jack in the Box Inc. |
53,164 |
878 |
|
RCI Hospitality Holdings Inc. |
25,192 |
734 | |
|
* |
Xponential Fitness Inc. Class A |
110,637 |
603 |
|
1 |
Lucky Strike Entertainment Corp. Class C |
42,522 |
268 |
|
1,446,963 | |||
|
Household Durables (5.3%) | |||
|
Garmin Ltd. |
176,028 |
50,011 | |
|
DR Horton Inc. |
282,426 |
40,827 | |
|
PulteGroup Inc. |
222,511 |
28,108 | |
|
* |
SharkNinja Inc. |
116,041 |
22,337 |
|
Somnigroup International Inc. |
334,422 |
21,654 | |
|
Lennar Corp. Class A |
247,436 |
20,812 | |
|
* |
NVR Inc. |
3,271 |
20,657 |
|
Toll Brothers Inc. |
125,021 |
17,934 | |
|
* |
Mohawk Industries Inc. |
93,188 |
11,951 |
|
Installed Building Products Inc. |
42,679 |
10,364 | |
|
* |
Champion Homes Inc. |
115,143 |
10,279 |
|
Meritage Homes Corp. |
132,105 |
9,172 | |
|
* |
Cavco Industries Inc. |
16,289 |
9,108 |
|
* |
M/I Homes Inc. |
58,813 |
8,752 |
|
Newell Brands Inc. |
1,389,136 |
8,682 | |
|
KB Home |
151,373 |
8,068 | |
|
* |
Green Brick Partners Inc. |
95,669 |
6,909 |
|
Century Communities Inc. |
98,175 |
6,632 | |
|
Whirlpool Corp. |
159,392 |
6,509 | |
|
* |
Sonos Inc. |
384,083 |
5,992 |
|
La-Z-Boy Inc. |
155,244 |
4,912 | |
|
* |
LGI Homes Inc. |
78,208 |
4,375 |
|
* |
Beazer Homes USA Inc. |
95,059 |
3,154 |
|
* |
Helen of Troy Ltd. |
89,040 |
2,680 |
|
Ethan Allen Interiors Inc. |
93,716 |
2,216 | |
|
* |
Hovnanian Enterprises Inc. Class A |
16,524 |
2,051 |
|
* |
Dream Finders Homes Inc. Class A |
104,887 |
1,474 |
|
* |
Legacy Housing Corp. |
41,232 |
1,160 |
|
Cricut Inc. Class A |
182,407 |
1,076 | |
|
* |
Lovesac Co. |
50,711 |
791 |
|
* |
GoPro Inc. Class A |
473,020 |
414 |
|
* |
Traeger Inc. |
4,756 |
267 |
|
349,328 | |||
|
Leisure Products (1.2%) | |||
|
Hasbro Inc. |
171,823 |
16,169 | |
|
Brunswick Corp. |
120,255 |
9,127 | |
|
* |
Mattel Inc. |
558,290 |
8,346 |
|
Polaris Inc. |
121,956 |
7,871 | |
|
* |
YETI Holdings Inc. |
173,702 |
7,130 |
|
Acushnet Holdings Corp. |
75,200 |
6,497 | |
|
* |
Callaway Golf Co. |
413,425 |
6,495 |
|
* |
Peloton Interactive Inc. Class A |
1,190,782 |
6,383 |
3
Consumer Discretionary Index Fund
|
Shares |
Market Value• ($000) | ||
|
Smith & Wesson Brands Inc. |
167,136 |
2,126 | |
|
Sturm Ruger & Co. Inc. |
52,239 |
1,983 | |
|
* |
Malibu Boats Inc. Class A |
69,903 |
1,885 |
|
* |
Latham Group Inc. |
179,788 |
1,271 |
|
Johnson Outdoors Inc. Class A |
23,155 |
1,042 | |
|
* |
Funko Inc. Class A |
133,483 |
897 |
|
77,222 | |||
|
Specialty Retail (19.3%) | |||
|
Home Depot Inc. |
982,870 |
322,214 | |
|
TJX Cos. Inc. |
1,108,020 |
148,375 | |
|
Lowe's Cos. Inc. |
562,086 |
115,059 | |
|
* |
O'Reilly Automotive Inc. |
862,831 |
76,619 |
|
Ross Stores Inc. |
330,619 |
75,560 | |
|
* |
AutoZone Inc. |
17,171 |
51,363 |
|
* |
Carvana Co. |
596,485 |
43,818 |
|
Williams-Sonoma Inc. |
139,087 |
31,747 | |
|
* |
Ulta Beauty Inc. |
50,857 |
27,315 |
|
Tractor Supply Co. |
641,242 |
22,379 | |
|
Best Buy Co. Inc. |
262,053 |
21,003 | |
|
* |
Burlington Stores Inc. |
75,223 |
19,540 |
|
* |
Five Below Inc. |
72,780 |
17,965 |
|
* |
Wayfair Inc. Class A |
158,577 |
15,742 |
|
* |
Abercrombie & Fitch Co. Class A |
100,524 |
14,383 |
|
Lithia Motors Inc. |
38,451 |
14,124 | |
|
* |
CarMax Inc. |
229,881 |
14,099 |
|
Murphy USA Inc. |
24,436 |
12,594 | |
|
* |
Victoria's Secret & Co. |
135,760 |
11,595 |
|
* |
GameStop Corp. Class A |
590,402 |
10,852 |
|
Dick's Sporting Goods Inc. |
80,102 |
10,822 | |
|
* |
Chewy Inc. Class A |
428,411 |
10,196 |
|
* |
Floor & Decor Holdings Inc. Class A |
199,510 |
10,029 |
|
* |
AutoNation Inc. |
48,213 |
9,703 |
|
Gap Inc. |
431,550 |
9,628 | |
|
Penske Automotive Group Inc. |
44,350 |
9,606 | |
|
* |
Urban Outfitters Inc. |
114,766 |
9,260 |
|
* |
Boot Barn Holdings Inc. |
59,074 |
8,898 |
|
* |
Asbury Automotive Group Inc. |
41,216 |
8,713 |
|
Bath & Body Works Inc. |
450,428 |
8,671 | |
|
* |
Valvoline Inc. |
253,844 |
8,138 |
|
Signet Jewelers Ltd. |
94,524 |
7,777 | |
|
* |
RH |
48,997 |
7,308 |
|
American Eagle Outfitters Inc. |
418,878 |
6,966 | |
|
Group 1 Automotive Inc. |
24,958 |
6,727 | |
|
Academy Sports & Outdoors Inc. |
147,691 |
6,345 | |
|
* |
Warby Parker Inc. Class A |
252,362 |
6,208 |
|
Advance Auto Parts Inc. |
143,199 |
6,040 | |
|
* |
Sally Beauty Holdings Inc. |
360,228 |
5,900 |
|
Buckle Inc. |
117,386 |
5,001 | |
|
* |
National Vision Holdings Inc. |
290,805 |
4,967 |
|
* |
RealReal Inc. |
424,903 |
4,351 |
|
* |
MarineMax Inc. |
76,449 |
3,989 |
|
Winmark Corp. |
11,752 |
3,910 | |
|
Upbound Group Inc. |
202,124 |
3,699 | |
|
Sonic Automotive Inc. Class A |
45,532 |
3,581 | |
|
* |
Revolve Group Inc. |
159,393 |
3,542 |
|
Arhaus Inc. |
198,238 |
1,727 | |
|
Caleres Inc. |
123,830 |
1,508 | |
|
Camping World Holdings Inc. Class A |
232,306 |
1,501 | |
|
Haverty Furniture Cos. Inc. |
51,998 |
1,418 | |
|
Build-A-Bear Workshop Inc. |
46,024 |
1,393 | |
|
* |
Citi Trends Inc. |
19,416 |
1,322 |
|
* |
Genesco Inc. |
36,567 |
1,224 |
|
* |
Stitch Fix Inc. Class A |
381,903 |
1,211 |
|
Monro Inc. |
86,688 |
1,080 | |
|
* |
Neighborhood Intelligence Inc. |
271,611 |
1,067 |
|
* |
ThredUP Inc. Class A |
391,834 |
1,054 |
|
Shoe Station Group Inc. |
68,965 |
945 | |
|
* |
Zumiez Inc. |
50,565 |
905 |
|
* |
Petco Health & Wellness Co. Inc. |
332,296 |
884 |
4
Consumer Discretionary Index Fund
|
Shares |
Market Value• ($000) | ||
|
Arko Corp. |
193,943 |
884 | |
|
* |
EVgo Inc. |
515,656 |
691 |
|
Designer Brands Inc. Class A |
109,200 |
597 | |
|
* |
OneWater Marine Inc. Class A |
45,007 |
540 |
|
* |
Lands' End Inc. |
35,444 |
419 |
|
* |
1-800-Flowers.com Inc. Class A |
85,734 |
313 |
|
* |
America's Car-Mart Inc. |
27,346 |
63 |
|
* |
Leslie's Inc. |
34,081 |
18 |
|
1,277,085 | |||
|
Textiles, Apparel & Luxury Goods (3.2%) | |||
|
NIKE Inc. Class B |
1,254,614 |
49,005 | |
|
Tapestry Inc. |
227,055 |
28,016 | |
|
Ralph Lauren Corp. |
49,387 |
17,133 | |
|
* |
Deckers Outdoor Corp. |
181,123 |
15,772 |
|
* |
Lululemon Athletica Inc. |
130,878 |
15,740 |
|
* |
Crocs Inc. |
88,532 |
10,658 |
|
Kontoor Brands Inc. |
115,027 |
8,674 | |
|
VF Corp. |
572,643 |
7,696 | |
|
Steven Madden Ltd. |
177,062 |
7,646 | |
|
PVH Corp. |
97,267 |
7,213 | |
|
Wolverine World Wide Inc. |
316,383 |
6,242 | |
|
Levi Strauss & Co. Class A |
293,551 |
6,094 | |
|
* |
Figs Inc. Class A |
350,280 |
5,373 |
|
Columbia Sportswear Co. |
84,481 |
4,849 | |
|
* |
Capri Holdings Ltd. |
358,871 |
4,755 |
|
G-III Apparel Group Ltd. |
139,254 |
4,538 | |
|
Carter's Inc. |
135,200 |
4,379 | |
|
* |
Under Armour Inc. Class A |
571,995 |
2,883 |
|
Oxford Industries Inc. |
54,510 |
2,087 | |
|
Movado Group Inc. |
55,686 |
1,878 | |
|
* |
Under Armour Inc. Class C |
343,274 |
1,693 |
|
212,324 | |||
|
Total Common Stocks (Cost $5,389,911) |
6,601,070 | ||
|
Temporary Cash Investments (0.2%) | |||
|
Money Market Fund (0.2%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $11,860) |
118,627 |
11,862 |
|
Total Investments (100.1%) (Cost $5,401,771) |
6,612,932 | ||
|
Other Assets and Liabilities—Net (-0.1%) |
(4,089) | ||
|
Net Assets (100.0%) |
6,608,843 | ||
|
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 $7,077. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $7,941 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Carvana Co. |
8/31/2027 |
BANA |
7,956 |
(3.630 ) |
— |
(247) |
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Consumer Discretionary Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $5,389,911) |
6,601,070 |
|
Affiliated Issuers (Cost $11,860) |
11,862 |
|
Total Investments in Securities |
6,612,932 |
|
Investment in Vanguard |
141 |
|
Receivables for Investment Securities Sold |
29,772 |
|
Receivables for Accrued Income |
2,783 |
|
Receivables for Capital Shares Issued |
60 |
|
Other Assets |
27 |
|
Total Assets |
6,645,715 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
26,325 |
|
Collateral for Securities on Loan |
7,941 |
|
Payables for Capital Shares Redeemed |
2,095 |
|
Payables to Vanguard |
264 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
247 |
|
Total Liabilities |
36,872 |
|
Net Assets |
6,608,843 |
|
1 Includes $7,077 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
6,203,086 |
|
Total Distributable Earnings (Loss) |
405,757 |
|
Net Assets |
6,608,843 |
|
ETF Shares—Net Assets |
|
|
Applicable to 15,413,564 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
6,033,786 |
|
Net Asset Value Per Share—ETF Shares |
$391.46 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 2,838,028 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
575,057 |
|
Net Asset Value Per Share—Admiral Shares |
$202.63 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Consumer Discretionary Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
56,207 |
|
Interest1 |
238 |
|
Securities Lending—Net |
916 |
|
Total Income |
57,361 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
73 |
|
Management and Administrative—ETF Shares2 |
5,022 |
|
Management and Administrative—Admiral Shares2 |
514 |
|
Marketing and Distribution—ETF Shares |
203 |
|
Marketing and Distribution—Admiral Shares |
27 |
|
Custodian Fees |
36 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
43 |
|
Shareholders’ Reports—ETF Shares2 |
150 |
|
Shareholders’ Reports—Admiral Shares2 |
6 |
|
Trustees’ Fees and Expenses |
4 |
|
Other Expenses |
14 |
|
Total Expenses |
6,127 |
|
Net Investment Income |
51,234 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
473,342 |
|
Swap Contracts |
(72 ) |
|
Realized Net Gain (Loss) |
473,270 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
(369,053 ) |
|
Swap Contracts |
(247 ) |
|
Change in Unrealized Appreciation (Depreciation) |
(369,300 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
155,204 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $233, $1, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $653,189 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Consumer Discretionary Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
51,234 |
50,830 |
|
Realized Net Gain (Loss) |
473,270 |
347,698 |
|
Change in Unrealized Appreciation (Depreciation) |
(369,300 ) |
818,024 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
155,204 |
1,216,552 |
|
Distributions |
||
|
ETF Shares |
(45,641 ) |
(50,847 ) |
|
Admiral Shares |
(4,672 ) |
(5,474 ) |
|
Total Distributions |
(50,313 ) |
(56,321 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
(400,154 ) |
(247,535 ) |
|
Admiral Shares |
(112,305 ) |
(36,488 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
(512,459 ) |
(284,023 ) |
|
Total Increase (Decrease) |
(407,568 ) |
876,208 |
|
Net Assets |
||
|
Beginning of Period |
7,016,411 |
6,140,203 |
|
End of Period |
6,608,843 |
7,016,411 |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Consumer Discretionary Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$385.92 |
$321.00 |
$286.85 |
$256.97 |
$320.99 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.932 |
2.692 |
2.485 |
2.493 |
2.329 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
5.473 |
65.187 |
34.277 |
29.853 |
(63.227) |
|
Total from Investment Operations |
8.405 |
67.879 |
36.762 |
32.346 |
(60.898) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.865) |
(2.959) |
(2.612) |
(2.466) |
(3.122) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.865) |
(2.959) |
(2.612) |
(2.466) |
(3.122) |
|
Net Asset Value, End of Period |
$391.46 |
$385.92 |
$321.00 |
$286.85 |
$256.97 |
|
Total Return |
2.19% |
21.23% |
12.89% |
12.75% |
-19.11% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$6,034 |
$6,339 |
$5,543 |
$5,187 |
$4,638 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
0.75% |
0.76% |
0.83% |
0.99% |
0.78% |
|
Portfolio Turnover Rate3 |
13% |
6% |
6% |
11% |
9% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Consumer Discretionary Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$199.76 |
$166.16 |
$148.47 |
$133.01 |
$166.15 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.522 |
1.396 |
1.279 |
1.287 |
1.211 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
2.831 |
33.735 |
17.762 |
15.450 |
(32.737) |
|
Total from Investment Operations |
4.353 |
35.131 |
19.041 |
16.737 |
(31.526) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.483) |
(1.531) |
(1.351) |
(1.277) |
(1.614) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.483) |
(1.531) |
(1.351) |
(1.277) |
(1.614) |
|
Net Asset Value, End of Period |
$202.63 |
$199.76 |
$166.16 |
$148.47 |
$133.01 |
|
Total Return2 |
2.19% |
21.23% |
12.90% |
12.75% |
-19.11% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$575 |
$677 |
$597 |
$608 |
$523 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
0.75% |
0.76% |
0.83% |
0.98% |
0.79% |
|
Portfolio Turnover Rate4 |
13% |
6% |
6% |
11% |
9% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
10
Consumer Discretionary Index Fund
Notes to Financial Statements
Vanguard Consumer Discretionary Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
11
Consumer Discretionary Index Fund
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $141,000, representing less than 0.01% of the fund’s net assets and 0.06% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
6,601,070 |
— |
— |
6,601,070 |
|
Temporary Cash Investments |
11,862 |
— |
— |
11,862 |
|
Total |
6,612,932 |
— |
— |
6,612,932 |
|
Derivative Financial Instruments |
||||
|
Liabilities |
||||
|
Swap Contracts |
— |
(247) |
— |
(247) |
12
Consumer Discretionary Index Fund
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
651,969 |
|
Total Distributable Earnings (Loss) |
(651,969) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
6,819 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
1,190,732 |
|
Capital Loss Carryforwards |
(791,794) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
405,757 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
50,313 |
56,321 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
50,313 |
56,321 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
5,422,199 |
|
Gross Unrealized Appreciation |
1,630,053 |
|
Gross Unrealized Depreciation |
(439,320) |
|
Net Unrealized Appreciation (Depreciation) |
1,190,733 |
F.
During the year ended August 31, 2026, the fund purchased $886,965,000 of investment securities and sold $983,717,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,023,437,000 and $1,436,137,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $188,000 and sales were $16,692,000, resulting in net realized gain of $488,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
13
Consumer Discretionary Index Fund
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,042,005 |
2,687 |
801,664 |
2,239 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,442,159) |
(3,700) |
(1,049,199) |
(3,080) |
|
Net Increase (Decrease)—ETF Shares |
(400,154) |
(1,013) |
(247,535) |
(841) |
|
Admiral Shares |
||||
|
Issued |
63,037 |
312 |
121,134 |
651 |
|
Issued in Lieu of Cash Distributions |
3,717 |
19 |
4,610 |
25 |
|
Redeemed |
(179,059) |
(882) |
(162,232) |
(881) |
|
Net Increase (Decrease)—Admiral Shares |
(112,305) |
(551) |
(36,488) |
(205) |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
14
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Consumer Discretionary Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Consumer Discretionary Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
15
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $53,519,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $121,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54830 102026
16
Financial Statements
For the year ended August 31, 2026
Vanguard Consumer Staples Index Fund
Contents
|
1 | |
|
13 | |
|
14 | |
Consumer Staples Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.8%) | |||
|
Beverages (20.8%) | |||
|
Coca-Cola Co. |
10,070,674 |
892,967 | |
|
PepsiCo Inc. |
2,985,114 |
418,931 | |
|
* |
Monster Beverage Corp. |
4,418,639 |
202,904 |
|
Keurig Dr Pepper Inc. |
4,308,653 |
137,274 | |
|
Constellation Brands Inc. Class A |
522,979 |
68,311 | |
|
Coca-Cola Consolidated Inc. |
219,905 |
43,007 | |
|
Molson Coors Beverage Co. Class B |
766,586 |
30,479 | |
|
* |
Celsius Holdings Inc. |
917,640 |
28,860 |
|
Primo Brands Corp. |
1,253,181 |
28,598 | |
|
Brown-Forman Corp. Class B |
957,218 |
25,433 | |
|
* |
Vita Coco Co. Inc. |
339,373 |
19,926 |
|
* |
Boston Beer Co. Inc. Class A |
86,503 |
15,381 |
|
National Beverage Corp. |
267,812 |
8,471 | |
|
MGP Ingredients Inc. |
171,798 |
2,854 | |
|
1,923,396 | |||
|
Consumer Staples Distribution & Retail (37.7%) | |||
|
Walmart Inc. |
11,800,005 |
1,237,467 | |
|
Costco Wholesale Corp. |
1,178,053 |
1,111,952 | |
|
Target Corp. |
1,408,983 |
226,677 | |
|
Sysco Corp. |
1,557,051 |
126,246 | |
|
Kroger Co. |
1,846,072 |
106,223 | |
|
Dollar General Corp. |
752,759 |
95,412 | |
|
Casey's General Stores Inc. |
123,927 |
93,219 | |
|
* |
US Foods Holding Corp. |
766,731 |
80,384 |
|
* |
Dollar Tree Inc. |
633,981 |
80,256 |
|
* |
Performance Food Group Co. |
587,587 |
58,271 |
|
* |
BJ's Wholesale Club Holdings Inc. |
518,086 |
46,964 |
|
* |
Sprouts Farmers Market Inc. |
442,796 |
36,327 |
|
* |
Maplebear Inc. |
692,328 |
34,976 |
|
* |
Chefs' Warehouse Inc. |
231,570 |
26,045 |
|
PriceSmart Inc. |
152,619 |
25,947 | |
|
Albertsons Cos. Inc. Class A |
1,883,006 |
23,255 | |
|
* |
United Natural Foods Inc. |
462,139 |
20,269 |
|
Andersons Inc. |
291,686 |
18,922 | |
|
Ingles Markets Inc. Class A |
166,742 |
13,639 | |
|
* |
Grocery Outlet Holding Corp. |
1,042,851 |
12,462 |
|
Weis Markets Inc. |
142,149 |
10,100 | |
|
Village Super Market Inc. Class A |
103,365 |
4,474 | |
|
Natural Grocers by Vitamin Cottage Inc. Class C |
105,758 |
2,895 | |
|
3,492,382 | |||
|
Food Products (13.9%) | |||
|
Mondelez International Inc. Class A |
3,952,871 |
245,355 | |
|
Archer-Daniels-Midland Co. |
1,571,418 |
127,740 | |
|
Hershey Co. |
503,195 |
88,668 | |
|
General Mills Inc. |
1,891,220 |
77,918 | |
|
Kraft Heinz Co. |
3,028,345 |
77,737 | |
|
Tyson Foods Inc. Class A |
1,051,228 |
57,965 | |
|
Bunge Global SA |
485,122 |
56,376 | |
|
J M Smucker Co. |
420,600 |
55,166 | |
|
McCormick & Co. Inc. |
907,813 |
49,222 | |
|
* |
Darling Ingredients Inc. |
663,282 |
43,956 |
|
Conagra Brands Inc. |
2,220,019 |
35,565 | |
|
Lamb Weston Holdings Inc. |
630,869 |
34,401 | |
|
Ingredion Inc. |
308,796 |
31,948 | |
|
Hormel Foods Corp. |
1,390,592 |
30,384 | |
|
Campbell's Co. |
1,126,947 |
26,686 | |
|
* |
Post Holdings Inc. |
281,823 |
23,493 |
|
Cal-Maine Foods Inc. |
290,319 |
22,912 | |
|
* |
Freshpet Inc. |
317,974 |
22,214 |
1
Consumer Staples Index Fund
|
Shares |
Market Value• ($000) | ||
|
Marzetti Co. |
170,332 |
19,188 | |
|
Flowers Foods Inc. |
2,241,206 |
15,509 | |
|
* |
Pilgrim's Pride Corp. |
490,527 |
15,393 |
|
J & J Snack Foods Corp. |
174,356 |
15,375 | |
|
Del Monte Corp. |
450,426 |
14,269 | |
|
Dole plc |
873,995 |
12,105 | |
|
Utz Brands Inc. |
837,802 |
11,897 | |
|
Seaboard Corp. |
3,018 |
11,801 | |
|
* |
Seneca Foods Corp. Class A |
53,854 |
10,679 |
|
* |
Simply Good Foods Co. |
932,107 |
10,673 |
|
* |
Mission Produce Inc. |
618,482 |
7,867 |
|
Tootsie Roll Industries Inc. |
191,380 |
7,820 | |
|
John B Sanfilippo & Son Inc. |
101,443 |
7,475 | |
|
* |
Vital Farms Inc. |
400,042 |
4,272 |
|
* |
Westrock Coffee Co. |
391,707 |
3,051 |
|
B&G Foods Inc. |
873,825 |
3,032 | |
|
*,1 |
Beyond Meat Inc. |
163,733 |
2,178 |
|
* |
Lifeway Foods Inc. |
64,812 |
1,687 |
|
* |
Hain Celestial Group Inc. |
989,023 |
737 |
|
1,282,714 | |||
|
Household Products (15.3%) | |||
|
Procter & Gamble Co. |
6,026,245 |
874,529 | |
|
Colgate-Palmolive Co. |
2,364,636 |
212,392 | |
|
Kimberly-Clark Corp. |
929,981 |
100,391 | |
|
Church & Dwight Co. Inc. |
826,171 |
82,435 | |
|
Clorox Co. |
476,607 |
46,555 | |
|
WD-40 Co. |
99,025 |
21,206 | |
|
Spectrum Brands Holdings Inc. |
214,746 |
18,535 | |
|
* |
Central Garden & Pet Co. Class A |
498,015 |
18,531 |
|
Energizer Holdings Inc. |
668,283 |
14,555 | |
|
Reynolds Consumer Products Inc. |
603,804 |
13,978 | |
|
Oil-Dri Corp. of America |
100,122 |
9,009 | |
|
* |
Central Garden & Pet Co. |
86,614 |
3,723 |
|
1,415,839 | |||
|
Personal Care Products (3.5%) | |||
|
Kenvue Inc. |
6,299,600 |
118,937 | |
|
Estee Lauder Cos. Inc. Class A |
857,762 |
87,749 | |
|
* |
e.l.f. Beauty Inc. |
301,847 |
32,916 |
|
Interparfums Inc. |
167,958 |
19,723 | |
|
Edgewell Personal Care Co. |
509,572 |
14,635 | |
|
* |
BellRing Brands Inc. |
1,343,078 |
14,465 |
|
* |
Herbalife Ltd. |
1,187,199 |
13,047 |
|
* |
Coty Inc. Class A |
4,043,745 |
11,525 |
|
* |
Honest Co. Inc. |
1,093,359 |
6,254 |
|
Nu Skin Enterprises Inc. Class A |
563,279 |
2,642 | |
|
* |
Nature's Sunshine Products Inc. |
165,042 |
2,335 |
|
* |
Niagen Bioscience Inc. |
594,776 |
1,862 |
|
* |
USANA Health Sciences Inc. |
127,126 |
1,813 |
|
327,903 | |||
|
Tobacco (8.6%) | |||
|
Philip Morris International Inc. |
2,240,962 |
419,732 | |
|
Altria Group Inc. |
5,066,105 |
346,927 | |
|
Turning Point Brands Inc. |
204,441 |
16,553 | |
|
Universal Corp. |
286,038 |
13,015 | |
|
796,227 | |||
|
Total Common Stocks (Cost $8,007,282) |
9,238,461 | ||
2
Consumer Staples Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.2%) | |||
|
Money Market Fund (0.2%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $13,814) |
138,157 |
13,814 |
|
Total Investments (100.0%) (Cost $8,021,096) |
9,252,275 | ||
|
Other Assets and Liabilities—Net (0.0%) |
4,175 | ||
|
Net Assets (100.0%) |
9,256,450 | ||
|
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 $1,733. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $2,121 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Kimberly-Clark Corp. |
8/31/2027 |
BANA |
17,763 |
(3.630 ) |
— |
(502) |
|
McCormick & Co. Inc. |
8/31/2027 |
BANA |
3,814 |
(3.630 ) |
— |
(20) |
|
— |
(522) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Consumer Staples Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $8,007,282) |
9,238,461 |
|
Affiliated Issuers (Cost $13,814) |
13,814 |
|
Total Investments in Securities |
9,252,275 |
|
Investment in Vanguard |
200 |
|
Receivables for Investment Securities Sold |
300,150 |
|
Receivables for Accrued Income |
10,495 |
|
Receivables for Capital Shares Issued |
1,745 |
|
Total Assets |
9,564,865 |
|
Liabilities |
|
|
Due to Custodian |
296 |
|
Payables for Investment Securities Purchased |
304,026 |
|
Collateral for Securities on Loan |
2,121 |
|
Payables for Capital Shares Redeemed |
1,080 |
|
Payables to Vanguard |
370 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
522 |
|
Total Liabilities |
308,415 |
|
Net Assets |
9,256,450 |
|
1 Includes $1,733 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
8,844,456 |
|
Total Distributable Earnings (Loss) |
411,994 |
|
Net Assets |
9,256,450 |
|
ETF Shares—Net Assets |
|
|
Applicable to 34,261,995 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
7,862,708 |
|
Net Asset Value Per Share—ETF Shares |
$229.49 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 12,317,131 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
1,393,742 |
|
Net Asset Value Per Share—Admiral Shares |
$113.15 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Consumer Staples Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
210,181 |
|
Interest1 |
287 |
|
Securities Lending—Net |
777 |
|
Total Income |
211,245 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
91 |
|
Management and Administrative—ETF Shares2 |
6,191 |
|
Management and Administrative—Admiral Shares2 |
1,099 |
|
Marketing and Distribution—ETF Shares |
275 |
|
Marketing and Distribution—Admiral Shares |
65 |
|
Custodian Fees |
34 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
43 |
|
Shareholders’ Reports—ETF Shares2 |
270 |
|
Shareholders’ Reports—Admiral Shares2 |
15 |
|
Trustees’ Fees and Expenses |
5 |
|
Other Expenses |
16 |
|
Total Expenses |
8,139 |
|
Net Investment Income |
203,106 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
277,840 |
|
Swap Contracts |
(5,605 ) |
|
Realized Net Gain (Loss) |
272,235 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
127,649 |
|
Swap Contracts |
(522 ) |
|
Change in Unrealized Appreciation (Depreciation) |
127,127 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
602,468 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $285, $2, and ($1), respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $474,874 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Consumer Staples Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
203,106 |
194,928 |
|
Realized Net Gain (Loss) |
272,235 |
264,484 |
|
Change in Unrealized Appreciation (Depreciation) |
127,127 |
(208,829 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
602,468 |
250,583 |
|
Distributions |
||
|
ETF Shares |
(165,530 ) |
(165,813 ) |
|
Admiral Shares |
(28,753 ) |
(30,160 ) |
|
Total Distributions |
(194,283 ) |
(195,973 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
4,262 |
205,780 |
|
Admiral Shares |
27,207 |
(48,597 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
31,469 |
157,183 |
|
Total Increase (Decrease) |
439,654 |
211,793 |
|
Net Assets |
||
|
Beginning of Period |
8,816,796 |
8,605,003 |
|
End of Period |
9,256,450 |
8,816,796 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Consumer Staples Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$219.10 |
$217.66 |
$192.42 |
$188.63 |
$187.61 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
5.029 |
4.900 |
5.155 |
4.909 |
4.356 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
10.162 |
1.476 |
25.308 |
3.705 |
.907 |
|
Total from Investment Operations |
15.191 |
6.376 |
30.463 |
8.614 |
5.263 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(4.801) |
(4.936) |
(5.223) |
(4.824) |
(4.243) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(4.801) |
(4.936) |
(5.223) |
(4.824) |
(4.243) |
|
Net Asset Value, End of Period |
$229.49 |
$219.10 |
$217.66 |
$192.42 |
$188.63 |
|
Total Return |
7.05% |
2.99% |
16.19% |
4.65% |
2.83% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$7,863 |
$7,510 |
$7,260 |
$6,940 |
$6,747 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.25% |
2.25% |
2.63% |
2.57% |
2.27% |
|
Portfolio Turnover Rate3 |
11% |
9% |
9% |
9% |
5% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Consumer Staples Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$108.03 |
$107.32 |
$94.88 |
$93.01 |
$92.51 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.479 |
2.414 |
2.538 |
2.416 |
2.147 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
5.008 |
.729 |
12.478 |
1.831 |
.448 |
|
Total from Investment Operations |
7.487 |
3.143 |
15.016 |
4.247 |
2.595 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.367) |
(2.433) |
(2.576) |
(2.377) |
(2.095) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.367) |
(2.433) |
(2.576) |
(2.377) |
(2.095) |
|
Net Asset Value, End of Period |
$113.15 |
$108.03 |
$107.32 |
$94.88 |
$93.01 |
|
Total Return2 |
7.04% |
2.99% |
16.19% |
4.65% |
2.85% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$1,394 |
$1,307 |
$1,345 |
$1,224 |
$1,225 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.25% |
2.25% |
2.62% |
2.56% |
2.27% |
|
Portfolio Turnover Rate4 |
11% |
9% |
9% |
9% |
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 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Consumer Staples Index Fund
Notes to Financial Statements
Vanguard Consumer Staples Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
9
Consumer Staples Index Fund
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities, but it did make one borrowing from Vanguard Total Bond Market Index II in the amount of $1,000,000 to test the operational readiness of the Interfund Lending Program process. The borrowing was outstanding for one business day at an annualized interest rate of 4.025%, and the related interest expense of less than $500 is recorded in the Statement of Operations. At August 31, 2026, the fund had no borrowings outstanding.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $200,000, representing less than 0.01% of the fund’s net assets and 0.08% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
10
Consumer Staples Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
9,238,461 |
— |
— |
9,238,461 |
|
Temporary Cash Investments |
13,814 |
— |
— |
13,814 |
|
Total |
9,252,275 |
— |
— |
9,252,275 |
|
Derivative Financial Instruments |
||||
|
Liabilities |
||||
|
Swap Contracts |
— |
(522) |
— |
(522) |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
474,199 |
|
Total Distributable Earnings (Loss) |
(474,199) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
27,710 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
1,210,964 |
|
Capital Loss Carryforwards |
(826,680) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
411,994 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
194,283 |
195,973 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
194,283 |
195,973 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
8,041,312 |
|
Gross Unrealized Appreciation |
1,875,291 |
|
Gross Unrealized Depreciation |
(664,328) |
|
Net Unrealized Appreciation (Depreciation) |
1,210,963 |
F.
During the year ended August 31, 2026, the fund purchased $1,098,560,000 of investment securities and sold $991,845,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,182,580,000 and $1,210,201,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
11
Consumer Staples Index Fund
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $0 and sales were $568,000, resulting in net realized gain of $136,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,218,633 |
5,430 |
1,342,567 |
6,129 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,214,371) |
(5,445) |
(1,136,787) |
(5,205) |
|
Net Increase (Decrease)—ETF Shares |
4,262 |
(15) |
205,780 |
924 |
|
Admiral Shares |
||||
|
Issued |
401,374 |
3,615 |
346,084 |
3,222 |
|
Issued in Lieu of Cash Distributions |
25,371 |
234 |
26,747 |
252 |
|
Redeemed |
(399,538) |
(3,625) |
(421,428) |
(3,915) |
|
Net Increase (Decrease)—Admiral Shares |
27,207 |
224 |
(48,597) |
(441) |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
12
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Consumer Staples Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Consumer Staples Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
13
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $191,378,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $148,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54840 102026
14
Financial Statements
For the year ended August 31, 2026
Vanguard Energy Index Fund
Contents
|
1 | |
|
13 | |
|
14 | |
Energy Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.6%) | |||
|
Coal & Consumable Fuels (0.8%) | |||
|
* |
Uranium Energy Corp. |
2,592,358 |
31,730 |
|
Core Natural Resources Inc. |
293,206 |
29,995 | |
|
Peabody Energy Corp. |
711,738 |
21,132 | |
|
*,1 |
Centrus Energy Corp. Class A |
104,395 |
17,893 |
|
100,750 | |||
|
Integrated Oil & Gas (37.3%) | |||
|
ExxonMobil Holdings Corp. |
17,965,633 |
2,891,569 | |
|
Chevron Corp. |
9,021,687 |
1,859,730 | |
|
Occidental Petroleum Corp. |
3,242,250 |
195,119 | |
|
4,946,418 | |||
|
Oil & Gas Drilling (1.3%) | |||
|
* |
Transocean Ltd. (XNYS) |
5,432,867 |
31,565 |
|
* |
Valaris Ltd. |
343,803 |
29,694 |
|
Patterson-UTI Energy Inc. |
2,198,939 |
27,795 | |
|
Helmerich & Payne Inc. |
594,816 |
25,922 | |
|
Noble Corp. plc |
527,705 |
24,185 | |
|
* |
Seadrill Ltd. |
379,974 |
18,512 |
|
* |
Nabors Industries Ltd. (XNYS) |
106,303 |
9,954 |
|
167,627 | |||
|
Oil & Gas Equipment & Services (10.8%) | |||
|
SLB Ltd. |
7,415,988 |
445,701 | |
|
Baker Hughes Co. |
4,819,732 |
306,294 | |
|
TechnipFMC plc |
2,029,169 |
158,580 | |
|
Halliburton Co. |
4,217,165 |
155,402 | |
|
NOV Inc. |
1,991,360 |
42,396 | |
|
Weatherford International plc |
384,808 |
37,623 | |
|
Kodiak Gas Services Inc. |
556,438 |
32,702 | |
|
* |
Oceaneering International Inc. |
603,945 |
31,260 |
|
Archrock Inc. |
925,309 |
29,166 | |
|
Cactus Inc. Class A |
402,053 |
28,272 | |
|
* |
Tidewater Inc. |
284,251 |
26,469 |
|
Liberty Energy Inc. |
931,503 |
18,360 | |
|
Select Water Solutions Inc. |
860,046 |
16,771 | |
|
Solaris Energy Infrastructure Inc. |
287,977 |
14,621 | |
|
* |
Expro Ltd. |
738,511 |
13,382 |
|
* |
Helix Energy Solutions Group Inc. |
1,151,696 |
11,862 |
|
* |
Innovex International Inc. |
346,232 |
10,619 |
|
*,1 |
ProPetro Holding Corp. |
845,983 |
9,610 |
|
Bristow Group Inc. |
188,249 |
8,545 | |
|
* |
TETRA Technologies Inc. |
1,120,978 |
7,735 |
|
* |
Atlas Energy Solutions Inc. |
578,895 |
7,583 |
|
RPC Inc. |
1,120,872 |
7,319 | |
|
* |
Oil States International Inc. |
705,526 |
6,223 |
|
Core Laboratories Inc. |
439,123 |
5,458 | |
|
* |
Forum Energy Technologies Inc. |
7,473 |
613 |
|
* |
National Energy Services Reunited Corp. |
16,908 |
594 |
|
WaterBridge Infrastructure LLC, Class A |
14,088 |
448 | |
|
Natural Gas Services Group Inc. |
9,994 |
352 | |
|
Flowco Holdings Inc. Class A |
15,682 |
344 | |
|
1,434,304 | |||
|
Oil & Gas Exploration & Production (21.4%) | |||
|
ConocoPhillips |
5,994,670 |
794,234 | |
|
EOG Resources Inc. |
2,642,323 |
383,031 | |
|
Devon Energy Corp. |
5,529,925 |
268,257 | |
|
Diamondback Energy Inc. |
920,899 |
184,622 | |
|
EQT Corp. |
3,042,730 |
164,855 | |
|
Expand Energy Corp. |
1,186,176 |
116,435 | |
|
Ovintiv Inc. (XNYS) |
1,447,866 |
95,052 | |
1
Energy Index Fund
|
Shares |
Market Value• ($000) | ||
|
Texas Pacific Land Corp. |
250,645 |
93,827 | |
|
Permian Resources Corp. Class A |
3,642,054 |
84,823 | |
|
APA Corp. |
1,855,209 |
80,052 | |
|
* |
Antero Resources Corp. |
1,530,979 |
58,912 |
|
Range Resources Corp. |
1,250,579 |
51,674 | |
|
SM Energy Co. |
1,257,057 |
46,737 | |
|
Chord Energy Corp. |
314,440 |
46,257 | |
|
Viper Energy Inc. Class A |
1,014,331 |
45,432 | |
|
Matador Resources Co. |
653,341 |
37,900 | |
|
Magnolia Oil & Gas Corp. Class A |
1,284,322 |
34,484 | |
|
* |
CNX Resources Corp. |
782,368 |
28,463 |
|
Murphy Oil Corp. |
778,885 |
28,367 | |
|
Crescent Energy Co. Class A |
1,674,120 |
22,919 | |
|
California Resources Corp. |
414,213 |
21,966 | |
|
* |
Gulfport Energy Corp. |
96,330 |
17,286 |
|
* |
Talos Energy Inc. |
933,177 |
16,107 |
|
Northern Oil & Gas Inc. |
603,948 |
15,709 | |
|
* |
Kosmos Energy Ltd. |
5,098,942 |
14,583 |
|
Kimbell Royalty Partners LP |
714,945 |
10,688 | |
|
* |
Comstock Resources Inc. |
640,689 |
9,245 |
|
VAALCO Energy Inc. |
1,328,932 |
7,894 | |
|
Riley Exploration Permian Inc. |
197,423 |
7,705 | |
|
W&T Offshore Inc. |
1,886,511 |
6,999 | |
|
*,1 |
Sable Offshore Corp. |
1,353,270 |
6,536 |
|
Vitesse Energy Inc. |
325,603 |
5,695 | |
|
SandRidge Energy Inc. |
395,868 |
5,590 | |
|
Granite Ridge Resources Inc. |
1,073,854 |
5,402 | |
|
* |
BKV Corp. |
215,431 |
5,205 |
|
* |
Ring Energy Inc. |
3,376,145 |
4,963 |
|
1 |
HighPeak Energy Inc. |
431,162 |
3,531 |
|
Diversified Energy Co. |
25,809 |
384 | |
|
2,831,821 | |||
|
Oil & Gas Refining & Marketing (13.7%) | |||
|
Marathon Petroleum Corp. |
1,442,556 |
538,535 | |
|
Valero Energy Corp. |
1,467,680 |
526,780 | |
|
Phillips 66 |
1,970,787 |
485,956 | |
|
HF Sinclair Corp. |
815,687 |
82,882 | |
|
PBF Energy Inc. Class A |
536,846 |
39,184 | |
|
Delek US Holdings Inc. |
388,487 |
28,880 | |
|
* |
Par Pacific Holdings Inc. |
321,948 |
25,730 |
|
* |
Calumet Inc. |
469,924 |
23,369 |
|
World Kinect Corp. |
412,688 |
14,753 | |
|
CVR Energy Inc. |
322,070 |
13,482 | |
|
* |
REX American Resources Corp. |
265,840 |
10,921 |
|
* |
Green Plains Inc. |
624,752 |
9,028 |
|
* |
Gevo Inc. |
3,311,864 |
5,498 |
|
* |
Clean Energy Fuels Corp. |
2,337,060 |
3,716 |
|
Sunococorp LLC |
5,970 |
464 | |
|
1,809,178 | |||
|
Oil & Gas Storage & Transportation (14.3%) | |||
|
Williams Cos. Inc. |
5,937,662 |
445,621 | |
|
Targa Resources Corp. |
1,042,944 |
306,260 | |
|
Kinder Morgan Inc. |
9,429,155 |
303,996 | |
|
Cheniere Energy Inc. |
1,020,520 |
297,675 | |
|
ONEOK Inc. |
3,077,531 |
295,474 | |
|
DT Midstream Inc. |
519,971 |
68,127 | |
|
Antero Midstream Corp. |
1,903,257 |
42,671 | |
|
* |
Plains GP Holdings LP Class A |
1,137,175 |
32,091 |
|
Hess Midstream LP Class A |
701,239 |
28,197 | |
|
International Seaways Inc. |
262,957 |
25,938 | |
|
Kinetik Holdings Inc. |
320,083 |
17,550 | |
|
Dorian LPG Ltd. |
313,243 |
15,675 | |
|
* |
NextDecade Corp. |
1,356,584 |
10,229 |
|
Excelerate Energy Inc. Class A |
219,004 |
8,677 | |
|
*,1 |
New Fortress Energy Inc. |
2,464,251 |
715 |
|
1,898,896 | |||
|
Total Common Stocks (Cost $9,205,697) |
13,188,994 | ||
2
Energy Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.1%) | |||
|
Money Market Fund (0.1%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $15,409) |
154,109 |
15,410 |
|
Total Investments (99.7%) (Cost $9,221,106) |
13,204,404 | ||
|
Other Assets and Liabilities—Net (0.3%) |
38,671 | ||
|
Net Assets (100.0%) |
13,243,075 | ||
|
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 $10,622. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $12,667 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Noble Corp. plc |
8/31/2027 |
BANA |
8,117 |
(3.630 ) |
— |
(10) |
|
Occidental Petroleum Corp. |
8/31/2027 |
BANA |
23,598 |
(3.630 ) |
701 |
— |
|
Texas Pacific Land Corp. |
8/31/2027 |
BANA |
15,284 |
(3.630 ) |
54 |
— |
|
755 |
(10) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Energy Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $9,205,697) |
13,188,994 |
|
Affiliated Issuers (Cost $15,409) |
15,410 |
|
Total Investments in Securities |
13,204,404 |
|
Investment in Vanguard |
266 |
|
Cash |
1 |
|
Receivables for Investment Securities Sold |
53,032 |
|
Receivables for Accrued Income |
46,793 |
|
Receivables for Capital Shares Issued |
5,045 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
755 |
|
Total Assets |
13,310,296 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
51,718 |
|
Collateral for Securities on Loan |
12,667 |
|
Payables for Capital Shares Redeemed |
2,311 |
|
Payables to Vanguard |
515 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
10 |
|
Total Liabilities |
67,221 |
|
Net Assets |
13,243,075 |
|
1 Includes $10,622 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
11,018,167 |
|
Total Distributable Earnings (Loss) |
2,224,908 |
|
Net Assets |
13,243,075 |
|
ETF Shares—Net Assets |
|
|
Applicable to 60,355,681 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
10,870,638 |
|
Net Asset Value Per Share—ETF Shares |
$180.11 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 26,367,495 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
2,372,437 |
|
Net Asset Value Per Share—Admiral Shares |
$89.98 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Energy Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
302,755 |
|
Interest1 |
1,942 |
|
Securities Lending—Net |
1,311 |
|
Total Income |
306,008 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
102 |
|
Management and Administrative—ETF Shares2 |
7,123 |
|
Management and Administrative—Admiral Shares2 |
1,601 |
|
Marketing and Distribution—ETF Shares |
295 |
|
Marketing and Distribution—Admiral Shares |
96 |
|
Custodian Fees |
8 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
44 |
|
Shareholders’ Reports—ETF Shares2 |
258 |
|
Shareholders’ Reports—Admiral Shares2 |
11 |
|
Trustees’ Fees and Expenses |
6 |
|
Other Expenses |
21 |
|
Total Expenses |
9,600 |
|
Net Investment Income |
296,408 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
639,486 |
|
Swap Contracts |
22,097 |
|
Realized Net Gain (Loss) |
661,583 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
3,113,042 |
|
Swap Contracts |
745 |
|
Change in Unrealized Appreciation (Depreciation) |
3,113,787 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,071,778 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $1,927, ($2), and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $735,198 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Energy Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
296,408 |
286,046 |
|
Realized Net Gain (Loss) |
661,583 |
425,650 |
|
Change in Unrealized Appreciation (Depreciation) |
3,113,787 |
(528,841 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,071,778 |
182,855 |
|
Distributions |
||
|
ETF Shares |
(237,289 ) |
(239,827 ) |
|
Admiral Shares |
(52,762 ) |
(53,556 ) |
|
Total Distributions |
(290,051 ) |
(293,383 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
426,898 |
(873,885 ) |
|
Admiral Shares |
30,480 |
(90,993 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
457,378 |
(964,878 ) |
|
Total Increase (Decrease) |
4,239,105 |
(1,075,406 ) |
|
Net Assets |
||
|
Beginning of Period |
9,003,970 |
10,079,376 |
|
End of Period |
13,243,075 |
9,003,970 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Energy Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$126.88 |
$127.39 |
$124.62 |
$113.45 |
$67.99 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
4.117 |
3.838 |
3.930 |
4.205 |
3.625 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
53.142 |
(.448) |
2.670 |
11.554 |
45.526 |
|
Total from Investment Operations |
57.259 |
3.390 |
6.600 |
15.759 |
49.151 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(4.029) |
(3.900) |
(3.830) |
(4.589) |
(3.691) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(4.029) |
(3.900) |
(3.830) |
(4.589) |
(3.691) |
|
Net Asset Value, End of Period |
$180.11 |
$126.88 |
$127.39 |
$124.62 |
$113.45 |
|
Total Return |
46.05% |
2.82% |
5.37% |
14.51% |
74.07% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$10,871 |
$7,355 |
$8,331 |
$8,440 |
$7,862 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.77% |
3.12% |
3.16% |
3.58% |
3.80% |
|
Portfolio Turnover Rate3 |
8% |
11% |
8% |
9% |
6% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Energy Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$63.38 |
$63.64 |
$62.25 |
$56.67 |
$33.97 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.058 |
1.926 |
1.956 |
2.095 |
1.829 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
26.555 |
(.237) |
1.347 |
5.777 |
22.715 |
|
Total from Investment Operations |
28.613 |
1.689 |
3.303 |
7.872 |
24.544 |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.013) |
(1.949) |
(1.913) |
(2.292) |
(1.844) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.013) |
(1.949) |
(1.913) |
(2.292) |
(1.844) |
|
Net Asset Value, End of Period |
$89.98 |
$63.38 |
$63.64 |
$62.25 |
$56.67 |
|
Total Return2 |
46.07% |
2.81% |
5.39% |
14.58% |
73.97% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$2,372 |
$1,649 |
$1,749 |
$1,900 |
$1,944 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
2.78% |
3.13% |
3.15% |
3.57% |
3.83% |
|
Portfolio Turnover Rate4 |
8% |
11% |
8% |
9% |
6% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Energy Index Fund
Notes to Financial Statements
Vanguard Energy Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may
9
Energy Index Fund
be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $266,000, representing less than 0.01% of the fund’s net assets and 0.11% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
13,188,994 |
— |
— |
13,188,994 |
|
Temporary Cash Investments |
15,410 |
— |
— |
15,410 |
|
Total |
13,204,404 |
— |
— |
13,204,404 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
755 |
— |
755 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(10) |
— |
(10) |
10
Energy Index Fund
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
757,929 |
|
Total Distributable Earnings (Loss) |
(757,929) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
66,392 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
3,930,886 |
|
Capital Loss Carryforwards |
(1,772,370) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
2,224,908 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
290,051 |
293,383 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
290,051 |
293,383 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
9,273,518 |
|
Gross Unrealized Appreciation |
4,091,761 |
|
Gross Unrealized Depreciation |
(160,875) |
|
Net Unrealized Appreciation (Depreciation) |
3,930,886 |
F.
During the year ended August 31, 2026, the fund purchased $1,014,526,000 of investment securities and sold $854,897,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $2,152,747,000 and $1,816,774,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $1,625,000 and sales were $8,751,000, resulting in net realized loss of $2,705,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
11
Energy Index Fund
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
2,249,747 |
14,587 |
1,033,381 |
8,398 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,822,849) |
(12,200) |
(1,907,266) |
(15,825) |
|
Net Increase (Decrease)—ETF Shares |
426,898 |
2,387 |
(873,885) |
(7,427) |
|
Admiral Shares |
||||
|
Issued |
746,397 |
9,618 |
473,933 |
7,642 |
|
Issued in Lieu of Cash Distributions |
47,198 |
668 |
48,127 |
789 |
|
Redeemed |
(763,115) |
(9,931) |
(613,053) |
(9,896) |
|
Net Increase (Decrease)—Admiral Shares |
30,480 |
355 |
(90,993) |
(1,465) |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
12
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Energy Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Energy Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
13
For corporate shareholders, 98.5%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $278,969,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $1,000,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q58400 102026
14
Financial Statements
For the year ended August 31, 2026
Vanguard Financials Index Fund
Contents
|
1 | |
|
18 | |
|
19 | |
Financials Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (97.0%) | |||
|
Banks (30.1%) | |||
|
JPMorgan Chase & Co. (XNYS) |
4,328,023 |
1,540,863 | |
|
Bank of America Corp. (XNYS) |
10,569,361 |
654,666 | |
|
Wells Fargo & Co. |
4,931,029 |
425,992 | |
|
Citigroup Inc. (XNYS) |
2,777,271 |
365,544 | |
|
US Bancorp |
2,537,008 |
156,229 | |
|
PNC Financial Services Group Inc. |
649,710 |
155,690 | |
|
Truist Financial Corp. |
1,989,833 |
98,656 | |
|
Fifth Third Bancorp |
1,476,198 |
79,375 | |
|
M&T Bank Corp. |
236,145 |
55,244 | |
|
Huntington Bancshares Inc. |
3,298,991 |
55,044 | |
|
Citizens Financial Group Inc. |
688,279 |
47,402 | |
|
Regions Financial Corp. |
1,391,326 |
41,573 | |
|
KeyCorp |
1,496,966 |
32,349 | |
|
East West Bancorp Inc. |
222,885 |
28,275 | |
|
First Citizens BancShares Inc. Class A |
12,064 |
26,111 | |
|
Pinnacle Financial Partners Inc. |
246,170 |
24,610 | |
|
First Horizon Corp. |
773,534 |
18,812 | |
|
Popular Inc. |
105,253 |
17,703 | |
|
Southstate Bank Corp. |
158,801 |
16,657 | |
|
UMB Financial Corp. |
117,130 |
16,589 | |
|
Wintrust Financial Corp. |
110,063 |
16,549 | |
|
Zions Bancorp NA |
239,512 |
15,973 | |
|
Cullen / Frost Bankers Inc. |
96,875 |
15,584 | |
|
Old National Bancorp |
552,375 |
14,130 | |
|
Columbia Banking System Inc. |
469,625 |
13,920 | |
|
Prosperity Bancshares Inc. |
185,856 |
13,300 | |
|
Western Alliance Bancorp |
169,067 |
13,209 | |
|
Commerce Bancshares Inc. |
220,043 |
12,699 | |
|
United Bankshares Inc. |
226,172 |
10,659 | |
|
FNB Corp. |
584,070 |
10,648 | |
|
Valley National Bancorp |
763,063 |
10,408 | |
|
Hancock Whitney Corp. |
132,092 |
9,840 | |
|
Glacier Bancorp Inc. |
210,717 |
9,758 | |
|
Atlantic Union Bankshares Corp. |
231,689 |
9,344 | |
|
Home BancShares Inc. |
310,844 |
9,157 | |
|
Ameris Bancorp |
104,429 |
8,798 | |
|
Bank OZK |
169,793 |
8,333 | |
|
Associated Banc-Corp. |
267,054 |
8,175 | |
|
* |
Axos Financial Inc. |
84,125 |
8,142 |
|
Eastern Bankshares Inc. |
340,845 |
7,485 | |
|
ServisFirst Bancshares Inc. |
168,204 |
7,240 | |
|
Fulton Financial Corp. |
303,766 |
7,126 | |
|
First BanCorp (XNYS) |
252,184 |
7,031 | |
|
Texas Capital Bancshares Inc. |
71,635 |
6,961 | |
|
First Financial Bankshares Inc. |
208,737 |
6,936 | |
|
United Community Banks Inc. |
193,867 |
6,754 | |
|
Flagstar Bank NA |
505,274 |
6,725 | |
|
WSFS Financial Corp. |
84,569 |
6,550 | |
|
Independent Bank Corp. (XNGS) |
78,659 |
6,386 | |
|
Cathay General Bancorp |
102,988 |
6,304 | |
|
CVB Financial Corp. |
282,279 |
6,258 | |
|
Renasant Corp. |
152,469 |
6,238 | |
|
WesBanco Inc. |
155,546 |
6,223 | |
|
International Bancshares Corp. |
88,127 |
6,183 | |
|
First Financial Bancorp |
169,488 |
5,530 | |
|
Towne Bank |
147,241 |
5,454 | |
|
BankUnited Inc. |
119,285 |
5,439 | |
|
Nicolet Bankshares Inc. |
31,974 |
5,414 | |
|
Seacoast Banking Corp. of Florida |
158,507 |
5,382 | |
|
Community Financial System Inc. |
85,119 |
5,341 | |
1
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Simmons First National Corp. Class A |
234,928 |
5,305 | |
|
Park National Corp. |
26,358 |
5,147 | |
|
First Hawaiian Inc. |
198,937 |
5,095 | |
|
First Interstate BancSystem Inc. Class A |
134,096 |
4,936 | |
|
Bank of Hawaii Corp. |
64,357 |
4,887 | |
|
Columbia Financial Inc. |
416,655 |
4,842 | |
|
Provident Financial Services Inc. |
201,055 |
4,705 | |
|
Banc of California Inc. |
236,456 |
4,403 | |
|
WaFd Inc. |
122,743 |
4,389 | |
|
BOK Financial Corp. |
31,954 |
4,348 | |
|
Trustmark Corp. |
92,874 |
4,265 | |
|
First Bancorp / Southern Pines NC |
67,040 |
4,252 | |
|
First Merchants Corp. |
102,511 |
4,251 | |
|
Beacon Financial Corp. |
136,002 |
4,223 | |
|
* |
Bancorp Inc. |
64,900 |
4,219 |
|
NBT Bancorp Inc. |
82,029 |
4,218 | |
|
* |
Customers Bancorp Inc. |
52,609 |
4,113 |
|
First Busey Corp. |
133,905 |
4,031 | |
|
FB Financial Corp. |
68,846 |
3,921 | |
|
Banner Corp. |
54,833 |
3,846 | |
|
Enterprise Financial Services Corp. |
59,615 |
3,769 | |
|
BancFirst Corp. |
33,996 |
3,713 | |
|
OFG Bancorp |
68,820 |
3,582 | |
|
Stock Yards Bancorp Inc. |
44,165 |
3,498 | |
|
Northwest Bancshares Inc. |
224,700 |
3,436 | |
|
First Commonwealth Financial Corp. |
165,496 |
3,426 | |
|
City Holding Co. |
23,208 |
3,318 | |
|
S&T Bancorp Inc. |
59,370 |
2,938 | |
|
German American Bancorp Inc. |
59,290 |
2,924 | |
|
National Bank Holdings Corp. Class A |
70,482 |
2,910 | |
|
Pathward Financial Inc. |
35,279 |
2,874 | |
|
Hope Bancorp Inc. |
197,370 |
2,722 | |
|
QCR Holdings Inc. |
26,445 |
2,630 | |
|
* |
Triumph Financial Inc. |
36,609 |
2,608 |
|
Dime Community Bancshares Inc. |
64,091 |
2,589 | |
|
TriCo Bancshares |
48,154 |
2,570 | |
|
OceanFirst Financial Corp. |
132,227 |
2,491 | |
|
Hilltop Holdings Inc. |
65,082 |
2,476 | |
|
Origin Bancorp Inc. |
45,145 |
2,399 | |
|
Bank First Corp. |
15,843 |
2,387 | |
|
Lakeland Financial Corp. |
40,092 |
2,369 | |
|
1st Source Corp. |
27,489 |
2,354 | |
|
ConnectOne Bancorp Inc. |
73,422 |
2,308 | |
|
Live Oak Bancshares Inc. |
58,013 |
2,285 | |
|
Peoples Bancorp Inc. |
56,644 |
2,230 | |
|
Community Trust Bancorp Inc. |
28,619 |
2,179 | |
|
Westamerica BanCorp |
36,343 |
2,110 | |
|
Old Second Bancorp Inc. |
81,055 |
2,033 | |
|
Byline Bancorp Inc. |
53,564 |
2,031 | |
|
Tompkins Financial Corp. |
19,865 |
1,929 | |
|
Burke & Herbert Financial Services Corp. |
26,916 |
1,919 | |
|
Heritage Financial Corp. |
66,718 |
1,906 | |
|
Univest Financial Corp. |
45,491 |
1,889 | |
|
First Mid Bancshares Inc. |
37,763 |
1,879 | |
|
Preferred Bank |
18,186 |
1,863 | |
|
* |
Firstsun Capital Bancorp |
42,938 |
1,718 |
|
Horizon Bancorp Inc. |
82,885 |
1,610 | |
|
Metropolitan Bank Holding Corp. |
17,522 |
1,591 | |
|
Mercantile Bank Corp. |
26,608 |
1,590 | |
|
Business First Bancshares Inc. |
50,277 |
1,560 | |
|
CNB Financial Corp. |
45,577 |
1,541 | |
|
TrustCo Bank Corp. NY |
26,958 |
1,529 | |
|
Capitol Federal Financial Inc. |
177,098 |
1,525 | |
|
Camden National Corp. |
26,819 |
1,515 | |
|
Amerant Bancorp Inc. |
52,735 |
1,514 | |
|
Hanmi Financial Corp. |
48,493 |
1,503 | |
|
Northeast Bank |
11,675 |
1,473 | |
|
Farmers National Banc Corp. |
93,179 |
1,455 | |
|
Southside Bancshares Inc. |
45,592 |
1,439 | |
|
First Financial Corp. |
18,325 |
1,434 |
2
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Amalgamated Financial Corp. |
29,040 |
1,396 | |
|
NB Bancorp Inc. |
62,345 |
1,392 | |
|
Central Pacific Financial Corp. |
37,307 |
1,389 | |
|
Five Star Bancorp |
30,188 |
1,383 | |
|
Esquire Financial Holdings Inc. |
12,223 |
1,366 | |
|
First Community Bankshares Inc. |
27,786 |
1,347 | |
|
Equity Bancshares Inc. Class A |
27,213 |
1,343 | |
|
Eagle Bancorp Inc. |
48,152 |
1,314 | |
|
SmartFinancial Inc. |
24,956 |
1,262 | |
|
Orrstown Financial Services Inc. |
30,195 |
1,259 | |
|
Mid Penn Bancorp Inc. |
33,768 |
1,230 | |
|
Washington Trust Bancorp Inc. |
30,716 |
1,202 | |
|
Independent Bank Corp. |
31,665 |
1,155 | |
|
HomeTrust Bancshares Inc. |
24,627 |
1,144 | |
|
Southern Missouri Bancorp Inc. |
15,328 |
1,128 | |
|
Financial Institutions Inc. |
27,725 |
1,123 | |
|
Capital City Bank Group Inc. |
22,236 |
1,122 | |
|
Shore Bancshares Inc. |
48,676 |
1,118 | |
|
Bar Harbor Bankshares |
28,175 |
1,105 | |
|
South Plains Financial Inc. |
24,882 |
1,085 | |
|
Peapack-Gladstone Financial Corp. |
24,220 |
1,081 | |
|
Carter Bankshares Inc. |
34,100 |
1,065 | |
|
Peoples Financial Services Corp. |
14,944 |
1,026 | |
|
Community West Bancshares |
39,531 |
1,025 | |
|
* |
Coastal Financial Corp. |
20,926 |
986 |
|
Arrow Financial Corp. |
26,060 |
984 | |
|
Great Southern Bancorp Inc. |
11,991 |
939 | |
|
Midland States Bancorp Inc. |
28,599 |
938 | |
|
Kearny Financial Corp. |
94,503 |
933 | |
|
Northrim BanCorp Inc. |
34,840 |
891 | |
|
Civista Bancshares Inc. |
32,743 |
883 | |
|
* |
Southern First Bancshares Inc. |
14,174 |
870 |
|
Home Bancorp Inc. |
11,446 |
784 | |
|
Hingham Institution for Savings |
2,652 |
765 | |
|
Sierra Bancorp |
18,739 |
742 | |
|
* |
Bridgewater Bancshares Inc. |
33,948 |
715 |
|
Citizens & Northern Corp. |
27,827 |
705 | |
|
Colony Bankcorp Inc. |
32,859 |
695 | |
|
RBB Bancorp |
26,388 |
685 | |
|
Unity Bancorp Inc. |
11,758 |
682 | |
|
Bank of Marin Bancorp |
24,798 |
659 | |
|
4,454,823 | |||
|
Capital Markets (25.6%) | |||
|
Goldman Sachs Group Inc. (XNYS) |
448,669 |
460,289 | |
|
Morgan Stanley |
1,919,714 |
409,513 | |
|
Charles Schwab Corp. |
2,689,872 |
295,402 | |
|
Blackrock Inc. |
239,732 |
277,037 | |
|
S&P Global Inc. |
493,559 |
215,113 | |
|
Bank of New York Mellon Corp. |
1,104,732 |
178,171 | |
|
Blackstone Inc. |
1,209,520 |
173,252 | |
|
CME Group Inc. |
589,955 |
168,432 | |
|
Intercontinental Exchange Inc. |
920,614 |
147,943 | |
|
* |
Robinhood Markets Inc. Class A |
1,223,841 |
128,271 |
|
Moody's Corp. |
241,720 |
121,982 | |
|
KKR & Co. Inc. |
1,023,275 |
112,274 | |
|
State Street Corp. |
450,596 |
86,235 | |
|
Ameriprise Financial Inc. |
146,351 |
80,948 | |
|
Nasdaq Inc. |
736,423 |
72,619 | |
|
Interactive Brokers Group Inc. Class A |
689,170 |
67,049 | |
|
MSCI Inc. |
115,686 |
66,015 | |
|
* |
Coinbase Global Inc. Class A |
344,068 |
64,726 |
|
Northern Trust Corp. |
286,293 |
53,125 | |
|
Cboe Global Markets Inc. |
170,399 |
51,154 | |
|
Ares Management Corp. Class A |
343,468 |
49,174 | |
|
LPL Financial Holdings Inc. |
130,269 |
48,217 | |
|
Raymond James Financial Inc. |
270,538 |
48,202 | |
|
T Rowe Price Group Inc. |
348,950 |
38,831 | |
|
Carlyle Group Inc. |
424,056 |
20,520 | |
|
Tradeweb Markets Inc. Class A |
189,269 |
20,384 | |
3
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Stifel Financial Corp. |
244,413 |
19,744 | |
|
Invesco Ltd. |
575,655 |
18,870 | |
|
FactSet Research Systems Inc. |
57,916 |
18,160 | |
|
SEI Investments Co. |
161,519 |
17,925 | |
|
Evercore Inc. Class A |
59,862 |
17,146 | |
|
Franklin Templeton Inc. |
463,809 |
15,839 | |
|
Affiliated Managers Group Inc. |
41,040 |
15,110 | |
|
Jefferies Financial Group Inc. |
236,791 |
12,465 | |
|
Blue Owl Capital Inc. |
1,011,603 |
12,382 | |
|
TPG Inc. |
226,816 |
12,275 | |
|
* |
StoneX Group Inc. |
174,348 |
11,939 |
|
Houlihan Lokey Inc. |
88,178 |
11,753 | |
|
MarketAxess Holdings Inc. |
56,446 |
9,180 | |
|
Virtu Financial Inc. Class A |
135,454 |
8,891 | |
|
Piper Sandler Cos. |
112,552 |
8,448 | |
|
Moelis & Co. Class A |
121,263 |
8,254 | |
|
Victory Capital Holdings Inc. Class A |
68,819 |
8,121 | |
|
* |
Galaxy Digital Inc. Class A |
310,862 |
7,647 |
|
Federated Hermes Inc. |
116,656 |
7,425 | |
|
Hamilton Lane Inc. Class A |
67,604 |
7,357 | |
|
BGC Group Inc. Class A |
603,151 |
7,244 | |
|
Morningstar Inc. |
32,748 |
7,170 | |
|
PJT Partners Inc. Class A |
38,909 |
7,019 | |
|
Lazard Inc. |
160,703 |
6,947 | |
|
StepStone Group Inc. Class A |
116,896 |
6,109 | |
|
WisdomTree Inc. |
218,542 |
5,258 | |
|
Artisan Partners Asset Management Inc. Class A |
111,267 |
4,737 | |
|
* |
Miami International Holdings Inc. |
110,351 |
4,731 |
|
DigitalBridge Group Inc. |
287,969 |
4,582 | |
|
Acadian Asset Management Inc. |
48,092 |
4,530 | |
|
Cohen & Steers Inc. |
45,749 |
3,691 | |
|
Perella Weinberg Partners |
108,768 |
1,809 | |
|
* |
Donnelley Financial Solutions Inc. |
37,355 |
1,804 |
|
Virtus Investment Partners Inc. |
10,355 |
1,714 | |
|
GCM Grosvenor Inc. Class A |
83,908 |
1,157 | |
|
Oppenheimer Holdings Inc. Class A |
9,495 |
1,128 | |
|
Ridgepost Capital Inc. Class A |
94,808 |
815 | |
|
* |
Wealthfront Corp. |
82,510 |
760 |
|
* |
SHARPLINK Inc. |
45,954 |
397 |
|
* |
BRC Group Holdings Inc. |
35,123 |
243 |
|
3,775,654 | |||
|
Consumer Finance (4.6%) | |||
|
American Express Co. |
861,198 |
284,342 | |
|
Capital One Financial Corp. |
953,193 |
204,469 | |
|
Synchrony Financial |
548,798 |
42,301 | |
|
* |
SoFi Technologies Inc. |
2,090,035 |
37,370 |
|
Ally Financial Inc. |
448,833 |
18,945 | |
|
FirstCash Holdings Inc. |
64,128 |
13,753 | |
|
OneMain Holdings Inc. |
187,432 |
11,707 | |
|
* |
Enova International Inc. |
38,390 |
8,704 |
|
SLM Corp. |
293,141 |
7,613 | |
|
Bread Financial Holdings Inc. |
65,717 |
6,865 | |
|
* |
Figure Technology Solutions Inc. Class A |
186,040 |
6,826 |
|
* |
Dave Inc. |
16,747 |
6,021 |
|
* |
Credit Acceptance Corp. |
8,454 |
5,070 |
|
* |
Upstart Holdings Inc. |
134,471 |
3,857 |
|
* |
Encore Capital Group Inc. |
32,940 |
3,195 |
|
* |
Happen Inc. |
181,724 |
3,195 |
|
* |
EZCorp. Inc. Class A |
90,289 |
2,918 |
|
Nelnet Inc. Class A |
21,471 |
2,690 | |
|
PROG Holdings Inc. |
63,184 |
2,409 | |
|
* |
PRA Group Inc. |
60,560 |
1,140 |
|
* |
Green Dot Corp. Class A |
81,231 |
1,079 |
|
Navient Corp. |
102,913 |
979 | |
|
* |
Atlanticus Holdings Corp. |
8,420 |
762 |
|
Jefferson Capital Inc. |
33,438 |
696 | |
|
* |
World Acceptance Corp. |
3,411 |
627 |
|
* |
NerdWallet Inc. Class A |
51,441 |
508 |
|
* |
LendingTree Inc. |
17,934 |
503 |
4
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Regional Management Corp. |
12,334 |
396 | |
|
678,940 | |||
|
Financial Services (21.8%) | |||
|
* |
Berkshire Hathaway Inc. Class B |
2,296,269 |
1,157,388 |
|
Mastercard Inc. Class A |
1,320,854 |
778,393 | |
|
Visa Inc. Class A (XNYS) |
1,692,254 |
641,990 | |
|
Apollo Global Management Inc. |
680,582 |
92,954 | |
|
* |
Block Inc. (XNYS) |
836,599 |
68,618 |
|
* |
Fiserv Inc. |
868,832 |
46,317 |
|
PayPal Holdings Inc. (XNGS) |
824,269 |
43,410 | |
|
* |
Corpay Inc. |
101,138 |
40,890 |
|
Global Payments Inc. (XNYS) |
378,901 |
34,499 | |
|
Fidelity National Information Services Inc. |
841,898 |
34,324 | |
|
* |
Affirm Holdings Inc. |
455,447 |
33,908 |
|
* |
Toast Inc. Class A |
798,272 |
27,213 |
|
Equitable Holdings Inc. |
444,801 |
22,298 | |
|
* |
Rocket Cos. Inc. Class A |
1,477,566 |
19,814 |
|
Jack Henry & Associates Inc. |
115,774 |
19,440 | |
|
Voya Financial Inc. |
147,901 |
14,985 | |
|
Jackson Financial Inc. Class A |
102,618 |
13,692 | |
|
Corebridge Financial Inc. |
418,128 |
13,606 | |
|
MGIC Investment Corp. |
343,536 |
10,529 | |
|
* |
WEX Inc. |
53,315 |
10,161 |
|
Essent Group Ltd. |
142,503 |
9,628 | |
|
HA Sustainable Infrastructure Capital Inc. |
207,039 |
8,188 | |
|
Radian Group Inc. |
216,579 |
7,767 | |
|
* |
Remitly Global Inc. |
289,988 |
7,754 |
|
* |
Chime Financial Inc. Class A |
213,304 |
7,063 |
|
* |
NCR Atleos Corp. |
119,251 |
5,476 |
|
* |
NMI Holdings Inc. |
123,342 |
5,470 |
|
* |
Euronet Worldwide Inc. |
58,467 |
4,064 |
|
Western Union Co. |
508,251 |
3,639 | |
|
PennyMac Financial Services Inc. |
48,527 |
3,548 | |
|
*,1 |
Shift4 Payments Inc. Class A |
82,262 |
3,478 |
|
* |
Flywire Corp. |
176,917 |
3,342 |
|
Federal Agricultural Mortgage Corp. Class C |
15,091 |
3,319 | |
|
* |
Sezzle Inc. |
27,369 |
3,299 |
|
* |
Paymentus Holdings Inc. Class A |
91,557 |
3,259 |
|
* |
Payoneer Global Inc. |
418,902 |
2,978 |
|
EVERTEC Inc. |
99,775 |
2,956 | |
|
* |
Marqeta Inc. Class A |
147,950 |
2,429 |
|
Walker & Dunlop Inc. |
54,276 |
2,200 | |
|
Merchants Bancorp |
33,430 |
1,760 | |
|
Burford Capital Ltd. |
309,319 |
1,284 | |
|
Alerus Financial Corp. |
36,911 |
1,214 | |
|
* |
Compass Diversified Holdings |
100,770 |
1,165 |
|
Cass Information Systems Inc. |
18,830 |
1,057 | |
|
Cannae Holdings Inc. |
58,203 |
908 | |
|
UWM Holdings Corp. |
503,218 |
730 | |
|
* |
International Money Express Inc. |
43,669 |
632 |
|
* |
Repay Holdings Corp. |
106,271 |
382 |
|
* |
Velocity Financial Inc. |
19,030 |
342 |
|
* |
Acacia Research Corp. |
55,634 |
247 |
|
*,1 |
Better Home & Finance Holding Co. |
14,251 |
197 |
|
* |
loanDepot Inc. Class A |
189,511 |
179 |
|
3,224,383 | |||
|
Insurance (14.2%) | |||
|
Progressive Corp. |
951,414 |
207,484 | |
|
Chubb Ltd. |
568,324 |
192,435 | |
|
Marsh & McLennan Cos. Inc. |
784,475 |
148,893 | |
|
Travelers Cos. Inc. |
339,661 |
124,292 | |
|
Arthur J Gallagher & Co. |
418,261 |
109,647 | |
|
Allstate Corp. |
419,157 |
108,059 | |
|
Aon plc Class A (XNYS) |
330,358 |
106,217 | |
|
Aflac Inc. |
745,978 |
86,422 | |
|
MetLife Inc. |
890,769 |
84,775 | |
|
Prudential Financial Inc. |
565,198 |
66,467 | |
|
American International Group Inc. |
855,596 |
65,333 | |
|
Hartford Insurance Group Inc. |
446,479 |
61,337 | |
5
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Arch Capital Group Ltd. |
554,598 |
54,390 |
|
Willis Towers Watson plc |
153,800 |
52,069 | |
|
Cincinnati Financial Corp. |
252,133 |
42,837 | |
|
Principal Financial Group Inc. |
351,145 |
38,682 | |
|
* |
Markel Group Inc. |
20,391 |
36,763 |
|
Brown & Brown Inc. |
469,508 |
33,884 | |
|
Loews Corp. |
276,479 |
29,940 | |
|
Reinsurance Group of America Inc. |
106,799 |
26,277 | |
|
Everest Group Ltd. |
64,383 |
24,121 | |
|
W R Berkley Corp. |
348,722 |
23,560 | |
|
RenaissanceRe Holdings Ltd. |
69,412 |
22,742 | |
|
Assurant Inc. |
80,499 |
22,690 | |
|
Globe Life Inc. |
126,212 |
21,793 | |
|
Unum Group |
233,781 |
21,793 | |
|
Fidelity National Financial Inc. |
405,746 |
18,847 | |
|
American Financial Group Inc. |
107,901 |
15,381 | |
|
Old Republic International Corp. |
368,349 |
15,371 | |
|
Primerica Inc. |
50,855 |
14,629 | |
|
Kinsale Capital Group Inc. |
35,590 |
13,307 | |
|
Hanover Insurance Group Inc. |
56,960 |
12,879 | |
|
Lincoln National Corp. |
280,706 |
11,955 | |
|
Axis Capital Holdings Ltd. |
119,972 |
11,851 | |
|
* |
Oscar Health Inc. Class A |
389,826 |
11,679 |
|
First American Financial Corp. |
157,364 |
11,632 | |
|
Erie Indemnity Co. Class A |
41,127 |
10,510 | |
|
Selective Insurance Group Inc. |
96,960 |
8,852 | |
|
RLI Corp. |
137,701 |
8,740 | |
|
White Mountains Insurance Group Ltd. |
3,960 |
8,324 | |
|
CNO Financial Group Inc. |
148,027 |
8,110 | |
|
Ryan Specialty Holdings Inc. |
178,516 |
7,530 | |
|
* |
Genworth Financial Inc. |
626,597 |
6,228 |
|
* |
Lemonade Inc. |
112,678 |
5,885 |
|
Palomar Holdings Inc. |
43,269 |
5,736 | |
|
Assured Guaranty Ltd. |
69,035 |
5,157 | |
|
* |
Brighthouse Financial Inc. |
92,609 |
4,910 |
|
Mercury General Corp. |
44,843 |
4,572 | |
|
* |
SiriusPoint Ltd. |
170,626 |
4,128 |
|
* |
Baldwin Insurance Group Inc. |
125,585 |
3,874 |
|
HCI Group Inc. |
18,905 |
3,511 | |
|
* |
Skyward Specialty Insurance Group Inc. |
59,624 |
3,423 |
|
Stewart Information Services Corp. |
49,384 |
3,390 | |
|
Horace Mann Educators Corp. |
65,494 |
3,333 | |
|
Kemper Corp. |
95,150 |
2,681 | |
|
Hamilton Insurance Group Ltd. Class B |
75,697 |
2,662 | |
|
Slide Insurance Holdings Inc. |
112,415 |
2,614 | |
|
Safety Insurance Group Inc. |
23,705 |
2,459 | |
|
* |
Porch Group Inc. |
138,953 |
2,361 |
|
* |
Goosehead Insurance Inc. Class A |
34,228 |
2,350 |
|
* |
Neptune Insurance Holdings Inc. Class A |
61,244 |
2,040 |
|
United Fire Group Inc. |
35,286 |
1,901 | |
|
* |
Accelerant Holdings Class A |
94,470 |
1,864 |
|
Universal Insurance Holdings Inc. |
40,699 |
1,749 | |
|
* |
Trupanion Inc. |
56,426 |
1,645 |
|
F&G Annuities & Life Inc. |
60,298 |
1,435 | |
|
Employers Holdings Inc. |
27,769 |
1,363 | |
|
* |
Heritage Insurance Holdings Inc. |
39,790 |
1,338 |
|
* |
Root Inc. Class A |
17,737 |
984 |
|
* |
Bowhead Specialty Holdings Inc. |
27,926 |
936 |
|
* |
Hippo Holdings Inc. |
28,442 |
935 |
|
AMERISAFE Inc. |
30,381 |
791 | |
|
Tiptree Inc. |
36,561 |
677 | |
|
Investors Title Co. |
2,169 |
639 | |
|
* |
Greenlight Capital Re Ltd. Class A |
41,476 |
629 |
|
Donegal Group Inc. Class A |
28,175 |
539 | |
|
Abacus Global Management Inc. |
54,369 |
522 | |
|
* |
Ategrity Specialty Holdings LLC |
17,818 |
468 |
|
American Coastal Insurance Corp. Class C |
38,945 |
369 | |
|
* |
Octave Specialty Group Inc. |
68,863 |
300 |
|
James River Group Holdings Inc. |
58,158 |
233 |
6
Financials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Selectquote Inc. |
237,983 |
133 |
|
2,093,263 | |||
|
Mortgage Real Estate Investment Trusts (REITs) (0.7%) | |||
|
Annaly Capital Management Inc. |
1,194,179 |
27,371 | |
|
1 |
AGNC Investment Corp. |
1,870,484 |
20,070 |
|
Rithm Capital Corp. |
915,160 |
9,179 | |
|
Starwood Property Trust Inc. |
570,381 |
8,955 | |
|
Dynex Capital Inc. |
353,497 |
4,557 | |
|
Blackstone Mortgage Trust Inc. Class A |
259,665 |
3,609 | |
|
ARMOUR Residential REIT Inc. |
198,624 |
3,222 | |
|
Ellington Financial Inc. |
196,733 |
2,632 | |
|
1 |
Orchid Island Capital Inc. |
325,446 |
2,145 |
|
Ladder Capital Corp. |
185,188 |
1,815 | |
|
1 |
Arbor Realty Trust Inc. |
310,009 |
1,553 |
|
Chimera Investment Corp. |
131,796 |
1,510 | |
|
MFA Financial Inc. |
165,798 |
1,462 | |
|
Adamas Trust Inc. |
139,263 |
1,356 | |
|
PennyMac Mortgage Investment Trust |
140,671 |
1,311 | |
|
Apollo Commercial Real Estate Finance Inc. |
186,295 |
1,287 | |
|
1 |
Invesco Mortgage Capital Inc. REIT |
171,523 |
1,254 |
|
Franklin BSP Realty Trust Inc. REIT |
127,384 |
1,066 | |
|
Redwood Trust Inc. |
202,390 |
935 | |
|
Brightspire Capital Inc. |
195,114 |
927 | |
|
TPG RE Finance Trust Inc. |
114,525 |
885 | |
|
KKR Real Estate Finance Trust Inc. |
86,192 |
657 | |
|
Ready Capital Corp. |
231,430 |
410 | |
|
Ares Commercial Real Estate Corp. |
84,128 |
385 | |
|
* |
Claros Mortgage Trust Inc. |
170,739 |
272 |
|
98,825 | |||
|
Total Common Stocks (Cost $9,936,106) |
14,325,888 | ||
|
Temporary Cash Investments (2.9%) | |||
|
Money Market Fund (2.9%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $431,004) |
4,310,596 |
431,016 |
|
Total Investments (99.9%) (Cost $10,367,110) |
14,756,904 | ||
|
Other Assets and Liabilities—Net (0.1%) |
15,059 | ||
|
Net Assets (100.0%) |
14,771,963 | ||
|
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 $7,525. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $8,276 was received for securities on loan. |
|
REIT—Real Estate Investment Trust. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
American International Group Inc. |
2/1/2027 |
CITNA |
604 |
(4.280 ) |
4 |
— |
|
Goldman Sachs Group Inc. |
2/1/2027 |
CITNA |
6,952 |
(4.380 ) |
157 |
— |
|
Goldman Sachs Group Inc. |
8/31/2027 |
BANA |
26,199 |
(4.444 ) |
— |
(836) |
|
PayPal Holdings Inc. |
2/1/2027 |
CITNA |
303 |
(3.980 ) |
— |
(47) |
|
PayPal Holdings Inc. |
8/31/2027 |
BANA |
33,343 |
(4.380 ) |
— |
(5,167) |
7
Financials Index Fund
|
Over-the-Counter Total Return Swaps (continued) | ||||||
|
Reference Entity |
Termination Date |
Counterparty |
Notional Amount ($000) |
Floating Interest Rate Received (Paid)1 (%) |
Value and Unrealized Appreciation ($000) |
Value and Unrealized (Depreciation) ($000) |
|
Raymond James Financial Inc. |
2/1/2027 |
CITNA |
2,580 |
(4.130 ) |
84 |
— |
|
Visa Inc. Class A |
2/1/2027 |
CITNA |
369,387 |
(3.630 ) |
14,043 |
— |
|
14,288 |
(6,050) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
CITNA—Citibank, N.A. |
At August 31, 2026, the counterparties had deposited in segregated accounts securities with a value of $16,967 in connection with open over-the-counter swap contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
8
Financials Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $9,936,106) |
14,325,888 |
|
Affiliated Issuers (Cost $431,004) |
431,016 |
|
Total Investments in Securities |
14,756,904 |
|
Investment in Vanguard |
319 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
5,250 |
|
Receivables for Investment Securities Sold |
73,670 |
|
Receivables for Accrued Income |
12,209 |
|
Receivables for Capital Shares Issued |
686 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
14,288 |
|
Total Assets |
14,863,326 |
|
Liabilities |
|
|
Due to Custodian |
4,911 |
|
Payables for Investment Securities Purchased |
69,502 |
|
Collateral for Securities on Loan |
8,276 |
|
Payables for Capital Shares Redeemed |
2,034 |
|
Payables to Vanguard |
590 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
6,050 |
|
Total Liabilities |
91,363 |
|
Net Assets |
14,771,963 |
|
1 Includes $7,525 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
11,416,116 |
|
Total Distributable Earnings (Loss) |
3,355,847 |
|
Net Assets |
14,771,963 |
|
ETF Shares—Net Assets |
|
|
Applicable to 95,878,424 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
13,510,586 |
|
Net Asset Value Per Share—ETF Shares |
$140.91 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 17,861,149 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
1,261,377 |
|
Net Asset Value Per Share—Admiral Shares |
$70.62 |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Financials Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
247,858 |
|
Interest1 |
15,809 |
|
Securities Lending—Net |
170 |
|
Total Income |
263,837 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
150 |
|
Management and Administrative—ETF Shares2 |
9,593 |
|
Management and Administrative—Admiral Shares2 |
959 |
|
Marketing and Distribution—ETF Shares |
410 |
|
Marketing and Distribution—Admiral Shares |
60 |
|
Custodian Fees |
59 |
|
Auditing Fees |
36 |
|
Accounting Fees2 |
46 |
|
Shareholders’ Reports and Proxy Fees—ETF Shares2 |
1,366 |
|
Shareholders’ Reports and Proxy Fees—Admiral Shares2 |
58 |
|
Trustees’ Fees and Expenses |
8 |
|
Other Expenses |
18 |
|
Total Expenses |
12,763 |
|
Net Investment Income |
251,074 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
721,794 |
|
Swap Contracts |
16,588 |
|
Realized Net Gain (Loss) |
738,382 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
167,461 |
|
Swap Contracts |
8,777 |
|
Change in Unrealized Appreciation (Depreciation) |
176,238 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,165,694 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $15,774, ($6), and ($4), respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $773,768 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
10
Financials Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
251,074 |
218,080 |
|
Realized Net Gain (Loss) |
738,382 |
449,053 |
|
Change in Unrealized Appreciation (Depreciation) |
176,238 |
1,707,342 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,165,694 |
2,374,475 |
|
Distributions |
||
|
ETF Shares |
(229,783 ) |
(212,114 ) |
|
Admiral Shares |
(21,731 ) |
(18,464 ) |
|
Total Distributions |
(251,514 ) |
(230,578 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
(338,997 ) |
872,071 |
|
Admiral Shares |
(109,689 ) |
271,114 |
|
Net Increase (Decrease) from Capital Share Transactions |
(448,686 ) |
1,143,185 |
|
Total Increase (Decrease) |
465,494 |
3,287,082 |
|
Net Assets |
||
|
Beginning of Period |
14,306,469 |
11,019,387 |
|
End of Period |
14,771,963 |
14,306,469 |
See accompanying Notes, which are an integral part of the Financial Statements.
11
Financials Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$131.96 |
$110.81 |
$83.49 |
$81.31 |
$94.79 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.309 |
2.069 |
1.778 |
1.924 |
1.852 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
8.966 |
21.273 |
27.448 |
2.219 |
(13.457) |
|
Total from Investment Operations |
11.275 |
23.342 |
29.226 |
4.143 |
(11.605) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.325) |
(2.192) |
(1.906) |
(1.963) |
(1.875) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.325) |
(2.192) |
(1.906) |
(1.963) |
(1.875) |
|
Net Asset Value, End of Period |
$140.91 |
$131.96 |
$110.81 |
$83.49 |
$81.31 |
|
Total Return |
8.71% |
21.32% |
35.49% |
5.27% |
-12.43% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$13,511 |
$13,012 |
$10,177 |
$8,711 |
$8,676 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10% |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.77% |
1.72% |
1.89% |
2.34% |
2.03% |
|
Portfolio Turnover Rate3 |
6% |
5% |
5% |
20% |
6% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
12
Financials Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$66.14 |
$55.53 |
$41.84 |
$40.75 |
$47.51 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.158 |
1.034 |
.892 |
.962 |
.931 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
4.487 |
10.675 |
13.753 |
1.112 |
(6.751) |
|
Total from Investment Operations |
5.645 |
11.709 |
14.645 |
2.074 |
(5.820) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.165) |
(1.099) |
(.955) |
(.984) |
(.940) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.165) |
(1.099) |
(.955) |
(.984) |
(.940) |
|
Net Asset Value, End of Period |
$70.62 |
$66.14 |
$55.53 |
$41.84 |
$40.75 |
|
Total Return2 |
8.70% |
21.35% |
35.50% |
5.27% |
-12.43% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$1,261 |
$1,294 |
$843 |
$664 |
$721 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10% |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.77% |
1.71% |
1.89% |
2.34% |
2.05% |
|
Portfolio Turnover Rate4 |
6% |
5% |
5% |
20% |
6% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
13
Financials Index Fund
Notes to Financial Statements
Vanguard Financials Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented 3% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
14
Financials Index Fund
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses), shareholder reporting, and proxy fees. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $319,000, representing less than 0.01% of the fund’s net assets and 0.13% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
15
Financials Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
14,325,888 |
— |
— |
14,325,888 |
|
Temporary Cash Investments |
431,016 |
— |
— |
431,016 |
|
Total |
14,756,904 |
— |
— |
14,756,904 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
14,288 |
— |
14,288 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(6,050) |
— |
(6,050) |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
813,587 |
|
Total Distributable Earnings (Loss) |
(813,587) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
38,656 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
4,343,055 |
|
Capital Loss Carryforwards |
(1,025,864) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
3,355,847 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
251,514 |
230,578 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
251,514 |
230,578 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
10,413,849 |
|
Gross Unrealized Appreciation |
4,643,735 |
|
Gross Unrealized Depreciation |
(300,680) |
|
Net Unrealized Appreciation (Depreciation) |
4,343,055 |
16
Financials Index Fund
F.
During the year ended August 31, 2026, the fund purchased $808,719,000 of investment securities and sold $896,043,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,407,102,000 and $1,805,519,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $3,345,000 and sales were $10,862,000, resulting in net realized gain of $387,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,476,847 |
11,298 |
1,969,196 |
16,140 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,815,844) |
(14,025) |
(1,097,125) |
(9,375) |
|
Net Increase (Decrease)—ETF Shares |
(338,997) |
(2,727) |
872,071 |
6,765 |
|
Admiral Shares |
||||
|
Issued |
225,019 |
3,436 |
562,315 |
9,245 |
|
Issued in Lieu of Cash Distributions |
18,569 |
285 |
15,485 |
262 |
|
Redeemed |
(353,277) |
(5,428) |
(306,686) |
(5,115) |
|
Net Increase (Decrease)—Admiral Shares |
(109,689) |
(1,707) |
271,114 |
4,392 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
17
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Financials Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Financials Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
18
For corporate shareholders, 91.5%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $212,889,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $8,182,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
The fund hereby designates $9,123,000, or if subsequently determined to be different, the maximum amount allowable by law, of qualified business income under section 199A for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
Q54860 102026
19
Financial Statements
For the year ended August 31, 2026
Vanguard Health Care Index Fund
Contents
|
1 | |
|
17 | |
|
18 | |
Health Care Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.8%) | |||
|
Biotechnology (23.7%) | |||
|
AbbVie Inc. |
5,392,098 |
1,382,642 | |
|
Amgen Inc. |
1,647,138 |
708,072 | |
|
Gilead Sciences Inc. |
3,789,181 |
554,509 | |
|
* |
Vertex Pharmaceuticals Inc. |
774,595 |
421,782 |
|
Regeneron Pharmaceuticals Inc. |
314,414 |
251,242 | |
|
* |
Natera Inc. |
415,239 |
133,690 |
|
* |
Moderna Inc. |
884,335 |
124,108 |
|
* |
Revolution Medicines Inc. |
519,060 |
106,703 |
|
* |
Alnylam Pharmaceuticals Inc. |
407,492 |
98,079 |
|
* |
Biogen Inc. |
450,596 |
97,622 |
|
* |
Insmed Inc. |
644,994 |
78,573 |
|
* |
Incyte Corp. |
518,257 |
63,860 |
|
* |
United Therapeutics Corp. |
116,584 |
59,502 |
|
* |
Roivant Sciences Ltd. |
1,591,502 |
55,130 |
|
* |
Neurocrine Biosciences Inc. |
291,527 |
44,904 |
|
* |
Exelixis Inc. |
709,595 |
38,772 |
|
* |
Halozyme Therapeutics Inc. |
361,770 |
38,525 |
|
* |
BioMarin Pharmaceutical Inc. |
545,705 |
35,596 |
|
* |
Bridgebio Pharma Inc. |
463,711 |
35,516 |
|
* |
Arrowhead Pharmaceuticals Inc. |
365,410 |
30,106 |
|
* |
Ionis Pharmaceuticals Inc. |
478,894 |
28,906 |
|
* |
Cytokinetics Inc. |
372,978 |
26,448 |
|
* |
Madrigal Pharmaceuticals Inc. |
45,739 |
24,700 |
|
* |
Praxis Precision Medicines Inc. |
70,244 |
24,606 |
|
* |
Twist Bioscience Corp. |
175,809 |
24,437 |
|
* |
TG Therapeutics Inc. |
432,187 |
23,468 |
|
* |
Protagonist Therapeutics Inc. |
157,008 |
23,198 |
|
* |
Vaxcyte Inc. |
374,694 |
22,759 |
|
* |
Alkermes plc |
483,278 |
22,709 |
|
* |
Krystal Biotech Inc. |
63,022 |
22,648 |
|
* |
Apogee Therapeutics Inc. |
141,617 |
19,130 |
|
* |
Kymera Therapeutics Inc. |
156,921 |
18,644 |
|
* |
Rhythm Pharmaceuticals Inc. |
167,585 |
17,786 |
|
* |
Travere Therapeutics Inc. |
255,429 |
16,930 |
|
* |
Spyre Therapeutics Inc. |
186,964 |
16,701 |
|
* |
PTC Therapeutics Inc. |
215,031 |
14,953 |
|
* |
Cogent Biosciences Inc. |
404,084 |
14,143 |
|
* |
Scholar Rock Holding Corp. |
246,902 |
14,024 |
|
* |
Mirum Pharmaceuticals Inc. |
130,322 |
12,778 |
|
* |
Dianthus Therapeutics Inc. |
112,477 |
11,879 |
|
* |
CG oncology Inc. |
148,071 |
11,129 |
|
* |
Viking Therapeutics Inc. |
336,053 |
11,016 |
|
* |
Oruka Therapeutics Inc. |
116,963 |
10,833 |
|
* |
Dyne Therapeutics Inc. |
419,739 |
10,674 |
|
* |
Veracyte Inc. |
243,594 |
10,521 |
|
* |
Ideaya Biosciences Inc. |
261,327 |
10,479 |
|
* |
ACADIA Pharmaceuticals Inc. |
352,968 |
10,204 |
|
* |
Erasca Inc. |
556,211 |
9,945 |
|
* |
Denali Therapeutics Inc. |
412,740 |
9,807 |
|
* |
Iovance Biotherapeutics Inc. |
1,158,516 |
9,465 |
|
* |
GRAIL Inc. |
116,180 |
9,221 |
|
* |
Kiniksa Pharmaceuticals International plc |
115,258 |
9,063 |
|
*,1 |
ImmunityBio Inc. |
1,118,861 |
8,895 |
|
* |
Immunovant Inc. |
203,668 |
8,314 |
|
* |
Celldex Therapeutics Inc. |
209,754 |
8,313 |
|
* |
Arcutis Biotherapeutics Inc. |
343,688 |
8,238 |
|
* |
Beam Therapeutics Inc. |
274,942 |
8,091 |
|
* |
Immunome Inc. |
293,880 |
8,055 |
|
*,1 |
SELLAS Life Sciences Group Inc. |
600,195 |
8,007 |
|
* |
uniQure NV |
157,393 |
7,662 |
1
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Arcus Biosciences Inc. |
249,595 |
7,308 |
|
* |
Celcuity Inc. |
78,173 |
6,962 |
|
* |
Ultragenyx Pharmaceutical Inc. |
270,880 |
6,829 |
|
* |
Relay Therapeutics Inc. |
365,919 |
6,726 |
|
* |
CareDx Inc. |
134,021 |
6,716 |
|
* |
Tango Therapeutics Inc. |
284,671 |
6,502 |
|
* |
ADMA Biologics Inc. |
672,240 |
6,312 |
|
* |
Sarepta Therapeutics Inc. |
298,291 |
6,273 |
|
* |
Vericel Corp. |
148,145 |
5,911 |
|
* |
Agios Pharmaceuticals Inc. |
172,576 |
5,812 |
|
* |
Biohaven Ltd. |
378,088 |
5,773 |
|
* |
Summit Therapeutics Inc. (XNMS) |
401,925 |
5,474 |
|
* |
BioCryst Pharmaceuticals Inc. |
562,844 |
5,460 |
|
* |
Viridian Therapeutics Inc. |
235,522 |
5,455 |
|
* |
Intellia Therapeutics Inc. |
405,543 |
5,163 |
|
* |
UroGen Pharma Ltd. |
118,428 |
5,103 |
|
* |
Aurinia Pharmaceuticals Inc. |
314,116 |
5,060 |
|
* |
Disc Medicine Inc. |
64,177 |
5,047 |
|
* |
Newamsterdam Pharma Co. NV |
196,417 |
4,977 |
|
* |
Nurix Therapeutics Inc. |
190,975 |
4,923 |
|
* |
Recursion Pharmaceuticals Inc. Class A |
1,446,363 |
4,918 |
|
* |
Palvella Therapeutics Inc. |
31,750 |
4,845 |
|
* |
Mineralys Therapeutics Inc. |
181,847 |
4,668 |
|
* |
Vir Biotechnology Inc. |
412,447 |
4,512 |
|
* |
Vera Therapeutics Inc. |
131,882 |
4,494 |
|
* |
Syndax Pharmaceuticals Inc. |
230,113 |
4,439 |
|
* |
Precigen Inc. |
599,882 |
4,157 |
|
* |
Xencor Inc. |
147,164 |
4,012 |
|
* |
Novavax Inc. |
427,310 |
4,004 |
|
* |
Stoke Therapeutics Inc. |
118,941 |
3,711 |
|
* |
Zymeworks Inc. |
122,697 |
3,608 |
|
* |
MannKind Corp. |
891,227 |
3,574 |
|
* |
Kodiak Sciences Inc. |
95,530 |
3,568 |
|
* |
Taysha Gene Therapies Inc. |
559,162 |
3,182 |
|
* |
AnaptysBio Inc. |
54,227 |
3,093 |
|
* |
First Tracks Biotherapeutics Inc. |
71,913 |
3,009 |
|
* |
Kura Oncology Inc. |
222,175 |
2,810 |
|
* |
Jade Biosciences Inc. |
130,110 |
2,779 |
|
* |
Ardelyx Inc. |
722,761 |
2,732 |
|
* |
Corvus Pharmaceuticals Inc. |
191,902 |
2,694 |
|
* |
Inhibrx Biosciences Inc. |
21,143 |
2,679 |
|
* |
Zenas Biopharma Inc. |
82,291 |
2,660 |
|
* |
Replimune Group Inc. |
173,036 |
2,647 |
|
* |
Cullinan Therapeutics Inc. |
117,521 |
2,594 |
|
* |
Rigel Pharmaceuticals Inc. |
54,819 |
2,531 |
|
* |
ArriVent Biopharma Inc. |
81,900 |
2,461 |
|
* |
Janux Therapeutics Inc. |
130,800 |
2,383 |
|
* |
MeiraGTx Holdings plc |
169,282 |
2,338 |
|
* |
Arbutus Biopharma Corp. |
435,449 |
2,212 |
|
* |
Geron Corp. (XNGS) |
1,455,423 |
2,169 |
|
* |
Ironwood Pharmaceuticals Inc. |
489,977 |
2,082 |
|
* |
Sana Biotechnology Inc. |
528,308 |
2,045 |
|
* |
MoonLake Immunotherapeutics |
135,131 |
2,034 |
|
* |
Monte Rosa Therapeutics Inc. |
141,859 |
1,977 |
|
* |
Bicara Therapeutics Inc. |
85,384 |
1,974 |
|
* |
Tyra Biosciences Inc. |
77,205 |
1,932 |
|
* |
Annexon Inc. |
371,414 |
1,835 |
|
* |
Aura Biosciences Inc. |
253,429 |
1,820 |
|
* |
ORIC Pharmaceuticals Inc. |
134,576 |
1,748 |
|
* |
Olema Pharmaceuticals Inc. |
166,974 |
1,741 |
|
* |
CytomX Therapeutics Inc. |
515,941 |
1,734 |
|
* |
4D Molecular Therapeutics Inc. |
112,335 |
1,585 |
|
* |
Solid Biosciences Inc. |
165,009 |
1,581 |
|
* |
MiMedx Group Inc. |
347,353 |
1,577 |
|
* |
Allogene Therapeutics Inc. |
786,292 |
1,573 |
|
* |
REGENXBIO Inc. |
164,823 |
1,566 |
|
* |
Shattuck Labs Inc. |
218,808 |
1,534 |
|
* |
Savara Inc. |
281,216 |
1,516 |
|
* |
Vor BioPharma Inc. |
66,229 |
1,489 |
|
* |
Altimmune Inc. |
477,083 |
1,484 |
2
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
*,1 |
Capricor Therapeutics Inc. |
140,884 |
1,396 |
|
* |
Editas Medicine Inc. |
435,255 |
1,332 |
|
*,1 |
Ocugen Inc. |
999,136 |
1,329 |
|
* |
Prothena Corp. plc |
125,976 |
1,178 |
|
* |
Verastem Inc. |
160,776 |
1,161 |
|
* |
Neurogene Inc. |
31,533 |
1,143 |
|
* |
Prime Medicine Inc. |
316,427 |
1,136 |
|
* |
Arcturus Therapeutics Holdings Inc. |
76,219 |
1,125 |
|
* |
Assembly Biosciences Inc. |
33,417 |
1,124 |
|
* |
Crescent Biopharma Inc. |
62,512 |
1,038 |
|
* |
Rocket Pharmaceuticals Inc. |
263,070 |
979 |
|
* |
Vanda Pharmaceuticals Inc. |
175,520 |
948 |
|
* |
Emergent BioSolutions Inc. |
153,438 |
936 |
|
* |
Sutro Biopharma Inc. |
45,573 |
922 |
|
* |
Myriad Genetics Inc. |
277,510 |
894 |
|
* |
Rezolute Inc. |
189,788 |
890 |
|
* |
Perspective Therapeutics Inc. |
280,833 |
887 |
|
*,1 |
ARS Pharmaceuticals Inc. |
143,856 |
863 |
|
* |
Zentalis Pharmaceuticals Inc. |
223,471 |
840 |
|
* |
Tectonic Therapeutic Inc. |
25,743 |
771 |
|
* |
Anavex Life Sciences Corp. |
270,423 |
757 |
|
* |
Akebia Therapeutics Inc. |
763,706 |
702 |
|
* |
Compass Therapeutics Inc. |
291,081 |
696 |
|
* |
Fate Therapeutics Inc. |
284,268 |
679 |
|
* |
Larimar Therapeutics Inc. |
174,204 |
665 |
|
* |
Upstream Bio Inc. |
92,228 |
611 |
|
* |
Keros Therapeutics Inc. |
49,851 |
552 |
|
* |
Alector Inc. |
232,767 |
526 |
|
* |
Humacyte Inc. |
766,745 |
461 |
|
* |
Entrada Therapeutics Inc. |
58,018 |
409 |
|
* |
Lyell Immunopharma Inc. |
28,489 |
408 |
|
* |
MapLight Therapeutics Inc. |
31,446 |
408 |
|
* |
Century Therapeutics Inc. |
191,946 |
393 |
|
* |
Organogenesis Holdings Inc. |
220,788 |
380 |
|
* |
Evommune Inc. |
29,227 |
370 |
|
* |
Korro Bio Inc. |
28,601 |
357 |
|
* |
Aldeyra Therapeutics Inc. |
167,479 |
248 |
|
* |
Sionna Therapeutics Inc. |
41,122 |
248 |
|
*,1 |
Gossamer Bio Inc. |
1,318,609 |
224 |
|
* |
Heron Therapeutics Inc. |
327,304 |
104 |
|
*,2 |
Prevail Therapeutics CVR |
78 |
— |
|
*,2 |
89bio Inc. CVR |
240 |
— |
|
5,229,898 | |||
|
Health Care Equipment & Supplies (15.4%) | |||
|
Abbott Laboratories |
5,315,831 |
586,655 | |
|
* |
Intuitive Surgical Inc. |
1,080,879 |
407,340 |
|
Medtronic plc |
3,906,529 |
354,127 | |
|
Stryker Corp. |
1,052,984 |
340,956 | |
|
* |
Boston Scientific Corp. |
4,536,280 |
219,102 |
|
* |
Edwards Lifesciences Corp. |
1,757,247 |
159,470 |
|
Becton Dickinson & Co. |
840,900 |
158,182 | |
|
* |
IDEXX Laboratories Inc. |
240,751 |
134,024 |
|
* |
Dexcom Inc. |
1,177,675 |
107,239 |
|
ResMed Inc. |
440,211 |
105,695 | |
|
GE HealthCare Technologies Inc. |
1,388,324 |
98,890 | |
|
STERIS plc |
297,424 |
69,193 | |
|
Zimmer Biomet Holdings Inc. |
590,441 |
59,068 | |
|
* |
Cooper Cos. Inc. |
594,902 |
41,697 |
|
Baxter International Inc. |
1,576,878 |
40,999 | |
|
* |
Solventum Corp. |
449,222 |
40,906 |
|
* |
Medline Inc. Class A |
1,135,171 |
39,765 |
|
* |
Penumbra Inc. |
114,082 |
36,860 |
|
* |
Align Technology Inc. |
207,598 |
33,172 |
|
* |
Insulet Corp. |
211,552 |
31,449 |
|
* |
Glaukos Corp. |
170,283 |
30,576 |
|
* |
Globus Medical Inc. Class A |
345,586 |
28,120 |
|
* |
Lantheus Holdings Inc. |
198,562 |
20,047 |
|
Teleflex Inc. |
135,226 |
19,209 | |
|
* |
Merit Medical Systems Inc. |
181,794 |
16,481 |
3
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Haemonetics Corp. |
138,686 |
14,294 |
|
* |
Envista Holdings Corp. |
496,732 |
13,481 |
|
* |
LivaNova plc |
167,697 |
13,384 |
|
* |
Integer Holdings Corp. |
103,626 |
12,979 |
|
* |
ICU Medical Inc. |
72,447 |
12,530 |
|
* |
IRhythm Holdings Inc. |
100,339 |
11,934 |
|
* |
TransMedics Group Inc. |
100,342 |
8,516 |
|
* |
Axogen Inc. |
154,159 |
7,825 |
|
* |
Neogen Corp. |
629,990 |
7,283 |
|
* |
AtriCure Inc. |
146,496 |
7,083 |
|
DENTSPLY SIRONA Inc. |
613,576 |
6,854 | |
|
* |
UFP Technologies Inc. |
22,461 |
6,692 |
|
* |
Novocure Ltd. |
318,323 |
5,618 |
|
LeMaitre Vascular Inc. |
63,056 |
5,062 | |
|
* |
Omnicell Inc. |
135,027 |
4,748 |
|
* |
Tandem Diabetes Care Inc. |
208,631 |
4,592 |
|
CONMED Corp. |
91,767 |
4,575 | |
|
* |
Inspire Medical Systems Inc. |
72,594 |
4,573 |
|
* |
Butterfly Network Inc. |
555,539 |
4,383 |
|
* |
Enovis Corp. |
174,747 |
4,297 |
|
* |
Establishment Labs Holdings Inc. |
56,494 |
3,917 |
|
* |
Alphatec Holdings Inc. |
375,910 |
3,522 |
|
* |
Procept Biorobotics Corp. |
165,595 |
3,511 |
|
* |
Artivion Inc. |
129,213 |
3,487 |
|
* |
Integra LifeSciences Holdings Corp. |
201,290 |
3,406 |
|
* |
QuidelOrtho Corp. |
207,128 |
2,989 |
|
*,1 |
Pulse Biosciences Inc. |
52,830 |
2,659 |
|
* |
SI-BONE Inc. |
127,837 |
2,431 |
|
* |
Varex Imaging Corp. |
128,591 |
2,378 |
|
iRadimed Corp. |
25,169 |
2,174 | |
|
* |
STAAR Surgical Co. |
90,494 |
2,044 |
|
* |
Kestra Medical Technologies Ltd. |
71,142 |
1,832 |
|
* |
AngioDynamics Inc. |
110,139 |
1,777 |
|
* |
Bioventus Inc. Class A |
125,156 |
1,708 |
|
* |
Ceribell Inc. |
65,938 |
1,581 |
|
* |
Tactile Systems Technology Inc. |
67,431 |
1,550 |
|
* |
Cerus Corp. |
581,621 |
1,535 |
|
* |
OrthoPediatrics Corp. |
52,960 |
1,234 |
|
* |
Orthofix Medical Inc. |
97,795 |
918 |
|
Embecta Corp. |
171,629 |
882 | |
|
* |
RxSight Inc. |
119,465 |
876 |
|
* |
Treace Medical Concepts Inc. |
152,928 |
719 |
|
* |
OraSure Technologies Inc. |
186,102 |
668 |
|
*,2 |
Hologic Inc. CVR |
162,940 |
2 |
|
3,387,725 | |||
|
Health Care Providers & Services (17.1%) | |||
|
UnitedHealth Group Inc. |
2,771,582 |
1,079,282 | |
|
CVS Health Corp. |
3,894,023 |
365,688 | |
|
McKesson Corp. |
357,295 |
316,320 | |
|
Elevance Health Inc. (XNYS) |
642,840 |
252,340 | |
|
Cigna Group |
807,338 |
222,890 | |
|
HCA Healthcare Inc. |
473,922 |
196,417 | |
|
Cencora Inc. |
564,037 |
182,522 | |
|
Cardinal Health Inc. |
714,727 |
167,689 | |
|
Humana Inc. |
366,423 |
140,424 | |
|
* |
Centene Corp. |
1,507,067 |
96,965 |
|
Labcorp Holdings Inc. |
250,240 |
83,245 | |
|
Quest Diagnostics Inc. |
337,798 |
81,173 | |
|
* |
Tenet Healthcare Corp. |
262,883 |
69,903 |
|
* |
Guardant Health Inc. |
374,331 |
59,526 |
|
Encompass Health Corp. |
302,731 |
36,391 | |
|
* |
Molina Healthcare Inc. |
159,106 |
31,626 |
|
Ensign Group Inc. |
174,020 |
29,977 | |
|
* |
BrightSpring Health Services Inc. |
494,964 |
28,906 |
|
* |
Henry Schein Inc. |
295,453 |
26,532 |
|
Universal Health Services Inc. Class B |
154,488 |
26,314 | |
|
* |
HealthEquity Inc. |
255,136 |
24,631 |
|
Chemed Corp. |
39,486 |
20,482 | |
|
* |
Hims & Hers Health Inc. |
612,821 |
18,127 |
4
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
DaVita Inc. |
97,941 |
17,239 |
|
* |
RadNet Inc. |
204,044 |
15,471 |
|
* |
Hinge Health Inc. Class A |
134,073 |
12,410 |
|
Concentra Group Holdings Parent Inc. |
351,432 |
11,857 | |
|
* |
Option Care Health Inc. |
443,362 |
10,397 |
|
* |
LifeStance Health Group Inc. |
699,348 |
8,644 |
|
National HealthCare Corp. |
38,125 |
8,255 | |
|
* |
Alignment Healthcare Inc. |
599,526 |
8,034 |
|
* |
Brookdale Senior Living Inc. |
655,991 |
7,734 |
|
* |
Acadia Healthcare Co. Inc. |
245,718 |
6,772 |
|
* |
NeoGenomics Inc. |
377,619 |
6,763 |
|
* |
Pediatrix Medical Group Inc. |
250,630 |
6,574 |
|
* |
CorVel Corp. |
93,452 |
6,437 |
|
* |
Addus HomeCare Corp. |
55,370 |
6,349 |
|
* |
Privia Health Group Inc. |
298,934 |
6,125 |
|
* |
Progyny Inc. |
220,696 |
5,648 |
|
* |
PACS Group Inc. |
132,811 |
5,619 |
|
* |
Clover Health Investments Corp. |
1,253,097 |
5,200 |
|
* |
Astrana Health Inc. |
135,748 |
5,173 |
|
* |
GeneDx Holdings Corp. |
54,401 |
4,614 |
|
* |
AMN Healthcare Services Inc. |
119,088 |
4,082 |
|
* |
Pennant Group Inc. |
101,158 |
3,719 |
|
US Physical Therapy Inc. |
46,311 |
3,600 | |
|
* |
Aveanna Healthcare Holdings Inc. |
265,956 |
3,569 |
|
* |
Surgery Partners Inc. |
237,826 |
3,303 |
|
* |
Guardian Pharmacy Services Inc. Class A |
83,632 |
3,102 |
|
* |
Omada Health Inc. |
122,602 |
3,010 |
|
* |
agilon health Inc. |
31,597 |
2,777 |
|
* |
Castle Biosciences Inc. |
83,391 |
2,754 |
|
* |
OPKO Health Inc. |
1,158,752 |
1,703 |
|
* |
AdaptHealth Corp. |
270,750 |
1,514 |
|
* |
Starling Oncology Inc. |
203,200 |
1,201 |
|
* |
Fulgent Genetics Inc. |
57,224 |
1,109 |
|
* |
Community Health Systems Inc. |
354,127 |
1,034 |
|
* |
Lumexa Imaging Holdings Inc. |
50,107 |
585 |
|
* |
Accendra Health Inc. |
187,124 |
226 |
|
* |
DocGo Inc. |
263,475 |
100 |
|
3,760,073 | |||
|
Health Care Technology (0.8%) | |||
|
* |
Veeva Systems Inc. Class A |
446,219 |
127,480 |
|
* |
HeartFlow Inc. |
204,077 |
10,283 |
|
* |
Doximity Inc. Class A |
361,347 |
9,652 |
|
* |
Waystar Holding Corp. |
366,191 |
9,587 |
|
* |
Schrodinger Inc. |
195,521 |
3,813 |
|
* |
Teladoc Health Inc. |
552,406 |
3,502 |
|
* |
Certara Inc. |
333,175 |
2,762 |
|
HealthStream Inc. |
71,441 |
2,075 | |
|
* |
Phreesia Inc. |
151,850 |
1,854 |
|
* |
Evolent Health Inc. Class A |
286,662 |
1,290 |
|
* |
Simulations Plus Inc. |
52,654 |
969 |
|
* |
GoodRx Holdings Inc. Class A |
268,344 |
937 |
|
* |
Claritev Corp. |
15,287 |
609 |
|
* |
Health Catalyst Inc. |
137,414 |
225 |
|
* |
Definitive Healthcare Corp. |
55,568 |
53 |
|
175,091 | |||
|
Life Sciences Tools & Services (9.6%) | |||
|
Thermo Fisher Scientific Inc. |
1,134,124 |
699,868 | |
|
Danaher Corp. |
1,944,003 |
415,161 | |
|
* |
IQVIA Holdings Inc. |
509,346 |
133,036 |
|
Agilent Technologies Inc. |
861,878 |
132,350 | |
|
* |
Waters Corp. |
299,639 |
124,239 |
|
* |
Illumina Inc. |
450,188 |
96,174 |
|
* |
Mettler-Toledo International Inc. |
61,667 |
86,651 |
|
West Pharmaceutical Services Inc. |
215,590 |
73,540 | |
|
Revvity Inc. |
340,454 |
43,806 | |
|
* |
Charles River Laboratories International Inc. |
146,996 |
42,370 |
|
* |
Medpace Holdings Inc. |
69,743 |
41,427 |
|
Bio-Techne Corp. |
478,063 |
34,569 | |
|
* |
Avantor Inc. |
2,031,868 |
29,543 |
5
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Repligen Corp. |
159,153 |
28,803 |
|
* |
Bio-Rad Laboratories Inc. Class A |
54,625 |
21,092 |
|
* |
Tempus AI Inc. Class A |
319,751 |
20,160 |
|
* |
10X Genomics Inc. Class A |
321,026 |
20,048 |
|
Bruker Corp. |
325,052 |
18,856 | |
|
* |
Sotera Health Co. |
849,623 |
16,058 |
|
* |
Adaptive Biotechnologies Corp. |
366,380 |
9,130 |
|
* |
Fortrea Holdings Inc. |
282,230 |
5,185 |
|
* |
BioLife Solutions Inc. |
126,749 |
4,699 |
|
* |
Azenta Inc. |
126,951 |
4,145 |
|
* |
Personalis Inc. |
171,139 |
2,872 |
|
* |
Maravai LifeSciences Holdings Inc. Class A |
329,419 |
2,517 |
|
* |
CryoPort Inc. |
147,147 |
2,354 |
|
Mesa Laboratories Inc. |
15,982 |
2,044 | |
|
* |
Cytek Biosciences Inc. |
340,429 |
1,627 |
|
* |
OmniAb Inc. |
241,939 |
1,060 |
|
* |
Pacific Biosciences of California Inc. |
768,154 |
1,041 |
|
* |
Ginkgo Bioworks Holdings Inc. |
122,940 |
837 |
|
* |
Standard BioTools Inc. |
682,905 |
450 |
|
* |
Quantum-Si Inc. |
503,192 |
385 |
|
* |
MaxCyte Inc. |
284,176 |
367 |
|
* |
Quanterix Corp. |
118,880 |
317 |
|
*,2 |
OmniAb Inc. 12.5 Earnout |
22,076 |
— |
|
*,2 |
OmniAb Inc. 15 Earnout |
22,076 |
— |
|
2,116,781 | |||
|
Pharmaceuticals (33.2%) | |||
|
Eli Lilly & Co. |
2,442,995 |
2,825,886 | |
|
Johnson & Johnson |
7,246,577 |
1,926,503 | |
|
Merck & Co. Inc. |
7,537,679 |
1,113,767 | |
|
Pfizer Inc. |
17,394,457 |
495,046 | |
|
Bristol-Myers Squibb Co. |
6,232,227 |
416,375 | |
|
Zoetis Inc. |
1,279,531 |
98,652 | |
|
Viatris Inc. |
3,554,833 |
58,690 | |
|
* |
Jazz Pharmaceuticals plc |
177,319 |
44,450 |
|
* |
Elanco Animal Health Inc. (XNYS) |
1,523,816 |
36,450 |
|
* |
Corcept Therapeutics Inc. |
294,889 |
33,426 |
|
* |
Axsome Therapeutics Inc. |
125,641 |
24,942 |
|
* |
Crinetics Pharmaceuticals Inc. |
282,622 |
24,009 |
|
* |
Ligand Pharmaceuticals Inc. |
59,640 |
16,944 |
|
* |
Liquidia Corp. |
210,333 |
14,338 |
|
* |
Definium Therapeutics Inc. |
344,375 |
13,679 |
|
* |
Indivior Pharmaceuticals Inc. |
316,438 |
11,053 |
|
Organon & Co. |
801,550 |
11,029 | |
|
* |
Amylyx Pharmaceuticals Inc. |
267,729 |
9,036 |
|
* |
Enliven Therapeutics Inc. |
147,176 |
8,520 |
|
* |
Amneal Pharmaceuticals Inc. |
463,073 |
8,090 |
|
* |
Prestige Consumer Healthcare Inc. |
145,105 |
7,514 |
|
* |
Supernus Pharmaceuticals Inc. |
168,428 |
7,446 |
|
* |
Tarsus Pharmaceuticals Inc. |
91,970 |
6,828 |
|
* |
Nektar Therapeutics |
90,254 |
6,442 |
|
* |
Edgewise Therapeutics Inc. |
148,178 |
6,189 |
|
Perrigo Co. plc |
420,664 |
6,159 | |
|
* |
Harmony Biosciences Holdings Inc. |
145,347 |
5,724 |
|
* |
AtaiBeckley Inc. |
734,255 |
5,389 |
|
* |
Nuvation Bio Inc. |
738,976 |
4,922 |
|
* |
Ocular Therapeutix Inc. |
451,520 |
4,736 |
|
* |
Trevi Therapeutics Inc. |
281,797 |
4,678 |
|
* |
Innoviva Inc. |
214,023 |
4,445 |
|
* |
Xeris Biopharma Holdings Inc. |
514,791 |
4,345 |
|
* |
Rapport Therapeutics Inc. |
83,716 |
4,074 |
|
* |
MBX Biosciences Inc. |
65,149 |
4,013 |
|
*,1 |
Omeros Corp. |
210,917 |
3,963 |
|
* |
ANI Pharmaceuticals Inc. |
53,852 |
3,945 |
|
* |
Alumis Inc. |
178,996 |
3,904 |
|
* |
Harrow Inc. |
96,108 |
3,547 |
|
* |
Pacira BioSciences Inc. |
111,279 |
2,882 |
|
Phibro Animal Health Corp. Class A |
64,447 |
2,432 | |
|
* |
Collegium Pharmaceutical Inc. |
98,691 |
2,429 |
|
* |
Amphastar Pharmaceuticals Inc. |
98,384 |
2,217 |
6
Health Care Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Theravance Biopharma Inc. |
118,236 |
2,015 |
|
* |
Septerna Inc. |
51,630 |
1,970 |
|
* |
Wave Life Sciences Inc. |
395,651 |
1,939 |
|
* |
Maze Therapeutics Inc. |
71,527 |
1,900 |
|
*,1 |
CorMedix Inc. |
221,969 |
1,833 |
|
*,1 |
Tilray Brands Inc. |
378,272 |
1,729 |
|
* |
Aclaris Therapeutics Inc. |
277,324 |
1,678 |
|
* |
Arvinas Inc. |
165,328 |
1,521 |
|
* |
Lexicon Pharmaceuticals Inc. |
645,289 |
1,452 |
|
* |
Phathom Pharmaceuticals Inc. |
150,023 |
1,436 |
|
* |
Evolus Inc. |
143,028 |
1,300 |
|
* |
Relmada Therapeutics Inc. |
247,533 |
1,079 |
|
* |
EyePoint Inc. |
237,885 |
1,070 |
|
* |
Atea Pharmaceuticals Inc. |
156,219 |
836 |
|
* |
Fulcrum Therapeutics Inc. |
142,115 |
553 |
|
SIGA Technologies Inc. |
120,788 |
379 | |
|
* |
LENZ Therapeutics Inc. |
57,477 |
299 |
|
* |
Neumora Therapeutics Inc. |
198,483 |
264 |
|
* |
Pliant Therapeutics Inc. |
155,527 |
171 |
|
* |
Filana Therapeutics Inc. |
134,181 |
121 |
|
*,2 |
Chinook Therapeutics Inc. CVR |
784 |
— |
|
7,322,653 | |||
|
Total Common Stocks (Cost $15,724,455) |
21,992,221 | ||
|
Temporary Cash Investments (0.2%) | |||
|
Money Market Fund (0.2%) | |||
|
3,4 |
Vanguard Market Liquidity Fund, 3.731% (Cost $42,946) |
429,590 |
42,955 |
|
Total Investments (100.0%) (Cost $15,767,401) |
22,035,176 | ||
|
Other Assets and Liabilities—Net (0.0%) |
7,217 | ||
|
Net Assets (100.0%) |
22,042,393 | ||
|
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 $18,630. |
|
2 |
Security value determined using significant unobservable inputs. |
|
3 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
4 |
Collateral of $20,713 was received for securities on loan. |
|
CVR—Contingent Value Rights. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Elevance Health Inc. |
2/1/2027 |
CITNA |
5,710 |
(4.130 ) |
— |
(61) |
|
Elevance Health Inc. |
8/31/2027 |
BANA |
1,842 |
(4.280 ) |
— |
(31) |
|
Johnson & Johnson |
2/1/2027 |
GSI |
26,237 |
(3.630 ) |
445 |
— |
|
Moderna Inc. |
8/31/2027 |
BANA |
23,030 |
(3.630 ) |
— |
(2,695) |
|
445 |
(2,787) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
CITNA—Citibank, N.A. | |
|
GSI—Goldman Sachs International. |
At August 31, 2026, the counterparties had deposited in segregated accounts securities with a value of $475 in connection with open over-the-counter swap contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
7
Health Care Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $15,724,455) |
21,992,221 |
|
Affiliated Issuers (Cost $42,946) |
42,955 |
|
Total Investments in Securities |
22,035,176 |
|
Investment in Vanguard |
449 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
3,055 |
|
Receivables for Investment Securities Sold |
79,176 |
|
Receivables for Accrued Income |
27,426 |
|
Receivables for Capital Shares Issued |
1,415 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
445 |
|
Total Assets |
22,147,142 |
|
Liabilities |
|
|
Due to Custodian |
201 |
|
Payables for Investment Securities Purchased |
77,427 |
|
Collateral for Securities on Loan |
20,713 |
|
Payables for Capital Shares Redeemed |
2,737 |
|
Payables to Vanguard |
877 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
2,787 |
|
Other Liabilities |
7 |
|
Total Liabilities |
104,749 |
|
Net Assets |
22,042,393 |
|
1 Includes $18,630 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
17,005,784 |
|
Total Distributable Earnings (Loss) |
5,036,609 |
|
Net Assets |
22,042,393 |
|
ETF Shares—Net Assets |
|
|
Applicable to 60,355,827 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
19,303,965 |
|
Net Asset Value Per Share—ETF Shares |
$319.84 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 17,116,084 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
2,738,428 |
|
Net Asset Value Per Share—Admiral Shares |
$159.99 |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Health Care Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
285,202 |
|
Interest1 |
11,595 |
|
Securities Lending—Net |
1,121 |
|
Total Income |
297,918 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
202 |
|
Management and Administrative—ETF Shares2 |
10,560 |
|
Management and Administrative—Admiral Shares2 |
1,865 |
|
Marketing and Distribution—ETF Shares |
446 |
|
Marketing and Distribution—Admiral Shares |
108 |
|
Custodian Fees |
52 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
48 |
|
Shareholders’ Reports and Proxy Fees—ETF Shares2 |
3,943 |
|
Shareholders’ Reports and Proxy Fees—Admiral Shares2 |
235 |
|
Trustees’ Fees and Expenses |
11 |
|
Other Expenses |
20 |
|
Total Expenses |
17,525 |
|
Net Investment Income |
280,393 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
554,507 |
|
Swap Contracts |
117,669 |
|
Realized Net Gain (Loss) |
672,176 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
3,801,544 |
|
Swap Contracts |
(2,440 ) |
|
Change in Unrealized Appreciation (Depreciation) |
3,799,104 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,751,673 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $11,564, $62, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $686,062 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Health Care Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
280,393 |
286,456 |
|
Realized Net Gain (Loss) |
672,176 |
808,149 |
|
Change in Unrealized Appreciation (Depreciation) |
3,799,104 |
(3,314,917 ) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
4,751,673 |
(2,220,312 ) |
|
Distributions |
||
|
ETF Shares |
(282,161 ) |
(254,457 ) |
|
Admiral Shares |
(41,709 ) |
(40,445 ) |
|
Total Distributions |
(323,870 ) |
(294,902 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
257,974 |
(1,660,795 ) |
|
Admiral Shares |
(201,178 ) |
(346,733 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
56,796 |
(2,007,528 ) |
|
Total Increase (Decrease) |
4,484,599 |
(4,522,742 ) |
|
Net Assets |
||
|
Beginning of Period |
17,557,794 |
22,080,536 |
|
End of Period |
22,042,393 |
17,557,794 |
See accompanying Notes, which are an integral part of the Financial Statements.
10
Health Care Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$255.04 |
$288.15 |
$244.43 |
$231.59 |
$262.41 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
4.091 |
3.912 |
3.660 |
3.418 |
3.157 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
65.432 |
(33.035) |
43.617 |
12.859 |
(30.771) |
|
Total from Investment Operations |
69.523 |
(29.123) |
47.277 |
16.277 |
(27.614) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(4.723) |
(3.987) |
(3.557) |
(3.437) |
(3.206) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(4.723) |
(3.987) |
(3.557) |
(3.437) |
(3.206) |
|
Net Asset Value, End of Period |
$319.84 |
$255.04 |
$288.15 |
$244.43 |
$231.59 |
|
Total Return |
27.58% |
-10.13% |
19.55% |
7.07% |
-10.60% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$19,304 |
$15,188 |
$19,012 |
$16,976 |
$15,829 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10%2 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.44% |
1.50% |
1.43% |
1.41% |
1.27% |
|
Portfolio Turnover Rate3 |
7% |
4% |
4% |
4% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
11
Health Care Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$127.58 |
$144.14 |
$122.27 |
$115.84 |
$131.26 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.047 |
1.956 |
1.831 |
1.711 |
1.583 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
32.725 |
(16.522) |
21.818 |
6.438 |
(15.400) |
|
Total from Investment Operations |
34.772 |
(14.566) |
23.649 |
8.149 |
(13.817) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.362) |
(1.994) |
(1.779) |
(1.719) |
(1.603) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.362) |
(1.994) |
(1.779) |
(1.719) |
(1.603) |
|
Net Asset Value, End of Period |
$159.99 |
$127.58 |
$144.14 |
$122.27 |
$115.84 |
|
Total Return2 |
27.57% |
-10.13% |
19.55% |
7.08% |
-10.59% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$2,738 |
$2,369 |
$3,068 |
$2,837 |
$2,744 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.44% |
1.50% |
1.43% |
1.41% |
1.28% |
|
Portfolio Turnover Rate4 |
7% |
4% |
4% |
4% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
12
Health Care Index Fund
Notes to Financial Statements
Vanguard Health Care Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented 2% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
13
Health Care Index Fund
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses), shareholder reporting, and proxy fees. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $449,000, representing less than 0.01% of the fund’s net assets and 0.18% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
14
Health Care Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
21,992,219 |
— |
2 |
21,992,221 |
|
Temporary Cash Investments |
42,955 |
— |
— |
42,955 |
|
Total |
22,035,174 |
— |
2 |
22,035,176 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
445 |
— |
445 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(2,787) |
— |
(2,787) |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
718,479 |
|
Total Distributable Earnings (Loss) |
(718,479) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
87,661 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
6,200,426 |
|
Capital Loss Carryforwards |
(1,251,478) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
5,036,609 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
323,870 |
294,902 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
323,870 |
294,902 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
15,834,750 |
|
Gross Unrealized Appreciation |
7,453,064 |
|
Gross Unrealized Depreciation |
(1,252,638) |
|
Net Unrealized Appreciation (Depreciation) |
6,200,426 |
15
Health Care Index Fund
F.
During the year ended August 31, 2026, the fund purchased $1,837,865,000 of investment securities and sold $1,294,257,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,565,316,000 and $1,394,817,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $568,000 and sales were $223,000, resulting in net realized loss of $256,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,649,200 |
5,777 |
720,164 |
2,848 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,391,226) |
(4,975) |
(2,380,959) |
(9,275) |
|
Net Increase (Decrease)—ETF Shares |
257,974 |
802 |
(1,660,795) |
(6,427) |
|
Admiral Shares |
||||
|
Issued |
334,500 |
2,361 |
346,347 |
2,650 |
|
Issued in Lieu of Cash Distributions |
35,054 |
255 |
34,219 |
261 |
|
Redeemed |
(570,732) |
(4,073) |
(727,299) |
(5,624) |
|
Net Increase (Decrease)—Admiral Shares |
(201,178) |
(1,457) |
(346,733) |
(2,713) |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
16
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Health Care Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Health Care Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
17
For corporate shareholders, 84.2%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $273,183,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $5,998,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54850 102026
18
Financial Statements
For the year ended August 31, 2026
Vanguard Industrials Index Fund
Contents
|
1 | |
|
17 | |
|
18 | |
Industrials Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.6%) | |||
|
Aerospace & Defense (24.0%) | |||
|
General Electric Co. |
1,278,515 |
429,210 | |
|
RTX Corp. |
1,659,409 |
344,709 | |
|
* |
Boeing Co. |
922,797 |
191,739 |
|
Lockheed Martin Corp. |
255,694 |
143,503 | |
|
Howmet Aerospace Inc. |
493,064 |
120,776 | |
|
General Dynamics Corp. |
283,244 |
105,183 | |
|
Northrop Grumman Corp. |
166,264 |
89,733 | |
|
TransDigm Group Inc. |
68,921 |
80,757 | |
|
* |
Honeywell Aerospace Inc. |
390,542 |
61,749 |
|
L3Harris Technologies Inc. |
229,556 |
61,119 | |
|
* |
Axon Enterprise Inc. |
94,354 |
53,457 |
|
* |
Rocket Lab Corp. |
663,388 |
42,404 |
|
* |
ATI Inc. |
163,957 |
33,480 |
|
Carpenter Technology Corp. |
59,693 |
28,439 | |
|
Curtiss-Wright Corp. |
45,520 |
26,517 | |
|
Woodward Inc. |
73,418 |
24,949 | |
|
FTAI Aviation Ltd. |
123,244 |
23,429 | |
|
HEICO Corp. Class A |
93,264 |
22,772 | |
|
HEICO Corp. |
53,067 |
17,573 | |
|
Textron Inc. |
214,245 |
17,259 | |
|
BWX Technologies Inc. |
112,890 |
17,192 | |
|
Huntington Ingalls Industries Inc. |
48,555 |
14,139 | |
|
Moog Inc. Class A |
35,041 |
13,018 | |
|
* |
Kratos Defense & Security Solutions Inc. |
231,069 |
11,780 |
|
Hexcel Corp. |
92,941 |
8,613 | |
|
VSE Corp. |
32,875 |
6,860 | |
|
* |
StandardAero Inc. |
271,963 |
6,660 |
|
* |
AAR Corp. |
47,844 |
6,186 |
|
* |
AeroVironment Inc. |
40,536 |
6,013 |
|
* |
Mercury Systems Inc. |
66,675 |
5,823 |
|
* |
Archer Aviation Inc. Class A |
795,746 |
4,599 |
|
* |
Karman Holdings Inc. |
110,228 |
4,569 |
|
Leonardo DRS Inc. |
98,735 |
3,752 | |
|
* |
Redwire Corp. |
289,354 |
3,096 |
|
* |
Ducommun Inc. |
17,199 |
2,948 |
|
* |
V2X Inc. |
37,621 |
2,903 |
|
* |
Astronics Corp. |
38,497 |
2,836 |
|
* |
Loar Holdings Inc. |
40,322 |
2,830 |
|
* |
Intuitive Machines Inc. |
153,447 |
2,357 |
|
* |
Voyager Technologies Inc. Class A |
65,024 |
2,187 |
|
* |
Firefly Aerospace Inc. |
80,958 |
1,710 |
|
*,1 |
Red Cat Holdings Inc. |
168,814 |
1,450 |
|
* |
Beta Technologies Inc. Class A |
66,606 |
1,339 |
|
Cadre Holdings Inc. |
38,265 |
1,135 | |
|
National Presto Industries Inc. |
5,960 |
904 | |
|
Park Aerospace Corp. |
22,546 |
734 | |
|
* |
Satellogic Inc. Class A |
123,017 |
599 |
|
* |
Eve Holding Inc. |
117,316 |
264 |
|
* |
AerSale Corp. |
41,659 |
229 |
|
2,055,482 | |||
|
Air Freight & Logistics (2.9%) | |||
|
United Parcel Service Inc. Class B (XNYS) |
919,996 |
95,891 | |
|
FedEx Corp. |
269,665 |
88,288 | |
|
Expeditors International of Washington Inc. |
161,169 |
30,566 | |
|
CH Robinson Worldwide Inc. |
145,250 |
21,738 | |
|
* |
GXO Logistics Inc. |
141,804 |
6,768 |
|
Hub Group Inc. Class A |
72,620 |
2,895 | |
|
* |
Forward Air Corp. |
28,553 |
486 |
1
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Radiant Logistics Inc. |
42,900 |
367 |
|
246,999 | |||
|
Building Products (5.7%) | |||
|
Trane Technologies plc |
272,386 |
121,048 | |
|
Johnson Controls International plc |
751,794 |
103,928 | |
|
Carrier Global Corp. |
921,121 |
53,628 | |
|
Masco Corp. |
248,567 |
17,937 | |
|
Carlisle Cos. Inc. |
49,860 |
17,280 | |
|
Allegion plc |
105,866 |
16,436 | |
|
Lennox International Inc. |
38,601 |
14,770 | |
|
Owens Corning |
99,231 |
13,709 | |
|
Advanced Drainage Systems Inc. |
85,000 |
11,537 | |
|
* |
Modine Manufacturing Co. |
62,168 |
11,093 |
|
Simpson Manufacturing Co. Inc. |
50,753 |
9,268 | |
|
Armstrong World Industries Inc. |
52,549 |
9,069 | |
|
Zurn Elkay Water Solutions Corp. Class C |
184,985 |
8,842 | |
|
* |
Builders FirstSource Inc. |
129,232 |
8,581 |
|
A O Smith Corp. |
137,776 |
8,147 | |
|
AAON Inc. |
85,826 |
6,520 | |
|
CSW Industrials Inc. |
19,079 |
5,894 | |
|
UFP Industries Inc. |
69,625 |
5,885 | |
|
Fortune Brands Innovations Inc. |
132,095 |
5,856 | |
|
* |
Trex Co. Inc. |
128,215 |
5,844 |
|
Louisiana-Pacific Corp. |
77,473 |
5,463 | |
|
AZZ Inc. |
35,184 |
4,826 | |
|
* |
Madison Air Solutions Corp. Class A |
180,948 |
4,777 |
|
Griffon Corp. |
43,806 |
4,266 | |
|
* |
Hayward Holdings Inc. |
261,055 |
3,668 |
|
* |
Resideo Technologies Inc. |
167,422 |
3,241 |
|
* |
Masterbrand Inc. |
240,147 |
1,981 |
|
* |
Gibraltar Industries Inc. |
36,487 |
1,642 |
|
Apogee Enterprises Inc. |
25,126 |
981 | |
|
Quanex Building Products Corp. |
48,197 |
926 | |
|
* |
Janus International Group Inc. |
162,170 |
804 |
|
Insteel Industries Inc. |
22,703 |
683 | |
|
* |
JELD-WEN Holding Inc. |
105,800 |
253 |
|
488,783 | |||
|
Commercial Services & Supplies (5.5%) | |||
|
Waste Management Inc. |
494,821 |
108,326 | |
|
Cintas Corp. |
419,108 |
84,572 | |
|
Republic Services Inc. |
246,416 |
54,438 | |
|
Waste Connections Inc. (XTSE) |
283,085 |
46,800 | |
|
* |
Copart Inc. |
1,055,261 |
34,813 |
|
Veralto Corp. |
302,632 |
29,830 | |
|
* |
Clean Harbors Inc. |
61,861 |
19,502 |
|
Rollins Inc. |
356,048 |
12,843 | |
|
Tetra Tech Inc. |
303,708 |
10,976 | |
|
MSA Safety Inc. |
45,247 |
8,451 | |
|
* |
Casella Waste Systems Inc. Class A |
77,166 |
7,118 |
|
Brink's Co. |
50,833 |
5,537 | |
|
* |
GEO Group Inc. |
156,430 |
4,976 |
|
Brady Corp. Class A |
52,403 |
4,750 | |
|
UniFirst Corp. |
16,971 |
4,694 | |
|
* |
OPENLANE Inc. |
128,307 |
4,568 |
|
HNI Corp. |
84,305 |
4,083 | |
|
* |
CoreCivic Inc. |
118,607 |
3,940 |
|
ABM Industries Inc. |
72,051 |
3,360 | |
|
Pitney Bowes Inc. |
158,591 |
2,717 | |
|
Interface Inc. |
70,088 |
2,658 | |
|
MillerKnoll Inc. |
84,165 |
1,901 | |
|
* |
Healthcare Services Group Inc. |
84,745 |
1,863 |
|
* |
Cimpress plc |
18,669 |
1,663 |
|
* |
Vestis Corp. |
121,687 |
1,522 |
|
* |
ACV Auctions Inc. Class A |
203,333 |
1,429 |
|
Deluxe Corp. |
55,091 |
1,273 | |
|
* |
Liquidity Services Inc. |
28,590 |
1,192 |
|
* |
BrightView Holdings Inc. |
86,961 |
966 |
|
* |
Onterris Inc. |
41,137 |
688 |
|
Ennis Inc. |
29,552 |
631 | |
2
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Enviri Corp. |
28,217 |
629 |
|
ACCO Brands Corp. |
110,733 |
474 | |
|
* |
Civeo Corp. |
11,447 |
383 |
|
Quad / Graphics Inc. |
34,629 |
348 | |
|
473,914 | |||
|
Construction & Engineering (4.5%) | |||
|
Quanta Services Inc. |
184,902 |
112,252 | |
|
Comfort Systems USA Inc. |
43,374 |
67,040 | |
|
EMCOR Group Inc. |
54,770 |
40,231 | |
|
* |
MasTec Inc. |
75,453 |
18,092 |
|
* |
Sterling Infrastructure Inc. |
36,866 |
17,330 |
|
* |
API Group Corp. |
427,011 |
16,760 |
|
Valmont Industries Inc. |
23,918 |
11,233 | |
|
* |
Dycom Industries Inc. |
37,031 |
10,784 |
|
AECOM |
158,362 |
10,678 | |
|
* |
Fluor Corp. |
163,492 |
8,912 |
|
Arcosa Inc. |
58,839 |
8,549 | |
|
Argan Inc. |
16,409 |
6,974 | |
|
* |
Everus Construction Group Inc. |
58,194 |
6,700 |
|
* |
IES Holdings Inc. |
22,102 |
6,697 |
|
Granite Construction Inc. |
53,893 |
6,497 | |
|
* |
Construction Partners Inc. Class A |
59,164 |
6,283 |
|
* |
MYR Group Inc. |
19,184 |
5,591 |
|
Tutor Perini Corp. |
55,152 |
4,882 | |
|
Primoris Services Corp. |
66,697 |
4,810 | |
|
WillScot Holdings Corp. |
217,905 |
4,511 | |
|
* |
Legence Corp. Class A |
71,028 |
3,805 |
|
* |
Centuri Holdings Inc. |
105,444 |
2,152 |
|
* |
NWPX Infrastructure Inc. |
11,687 |
1,285 |
|
* |
Ameresco Inc. Class A |
39,644 |
877 |
|
* |
Bowman Consulting Group Ltd. |
17,409 |
741 |
|
* |
Limbach Holdings Inc. |
13,591 |
560 |
|
* |
Orion Group Holdings Inc. |
46,947 |
441 |
|
* |
Matrix Service Co. |
33,048 |
357 |
|
* |
Concrete Pumping Holdings Inc. |
28,669 |
259 |
|
385,283 | |||
|
Electrical Equipment (12.6%) | |||
|
GE Vernova Inc. |
331,125 |
297,526 | |
|
Eaton Corp. plc |
478,478 |
192,291 | |
|
Vertiv Holdings Co. Class A |
449,646 |
116,332 | |
|
Emerson Electric Co. |
690,182 |
105,211 | |
|
* |
Bloom Energy Corp. Class A |
332,976 |
68,693 |
|
AMETEK Inc. |
282,440 |
66,421 | |
|
Rockwell Automation Inc. |
137,118 |
58,197 | |
|
nVent Electric plc |
199,286 |
30,042 | |
|
Hubbell Inc. |
65,116 |
29,497 | |
|
* |
Nextpower Inc. Class A |
182,202 |
14,946 |
|
* |
Generac Holdings Inc. |
72,543 |
13,448 |
|
Regal Rexnord Corp. |
77,932 |
12,348 | |
|
Acuity Inc. |
35,046 |
11,628 | |
|
EnerSys |
44,929 |
8,261 | |
|
Sensata Technologies Holding plc |
179,117 |
7,349 | |
|
Powell Industries Inc. |
35,949 |
6,461 | |
|
* |
Vicor Corp. |
31,297 |
5,874 |
|
Atkore Inc. |
41,522 |
3,890 | |
|
* |
NuScale Power Corp. |
415,920 |
3,856 |
|
* |
Plug Power Inc. |
1,630,099 |
3,521 |
|
* |
Sunrun Inc. |
286,689 |
2,457 |
|
* |
FuelCell Energy Inc. |
93,576 |
1,612 |
|
* |
Amprius Technologies Inc. |
161,459 |
1,595 |
|
* |
American Superconductor Corp. |
55,274 |
1,587 |
|
Allient Inc. |
16,739 |
1,574 | |
|
* |
Shoals Technologies Group Inc. Class A |
206,318 |
1,428 |
|
*,1 |
Eos Energy Enterprises Inc. |
435,323 |
1,402 |
|
Preformed Line Products Co. |
3,316 |
1,329 | |
|
* |
Fluence Energy Inc. |
106,388 |
1,150 |
|
* |
Babcock & Wilcox Enterprises Inc. |
142,161 |
1,072 |
|
*,1 |
NANO Nuclear Energy Inc. |
51,216 |
937 |
|
LSI Industries Inc. |
43,070 |
844 | |
3
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Array Technologies Inc. |
188,190 |
832 |
|
*,1 |
Enovix Corp. |
241,458 |
816 |
|
* |
Energy Vault Holdings Inc. |
170,342 |
579 |
|
* |
Hyliion Holdings Corp. |
152,996 |
531 |
|
* |
Power Solutions International Inc. |
10,615 |
385 |
|
* |
GrafTech International Ltd. |
20,688 |
149 |
|
*,1 |
ChargePoint Holdings Inc. |
26,834 |
148 |
|
* |
SES AI Corp. |
277,660 |
144 |
|
* |
Net Power Inc. |
37,951 |
68 |
|
1,076,431 | |||
|
Ground Transportation (8.8%) | |||
|
Union Pacific Corp. |
631,587 |
189,899 | |
|
* |
Uber Technologies Inc. |
2,194,783 |
166,035 |
|
CSX Corp. |
2,289,632 |
115,649 | |
|
Norfolk Southern Corp. |
276,751 |
94,868 | |
|
Old Dominion Freight Line Inc. |
230,703 |
46,131 | |
|
* |
XPO Inc. |
141,059 |
27,364 |
|
JB Hunt Transport Services Inc. |
90,054 |
23,907 | |
|
* |
Fedex Freight Holding Co. Inc. |
138,168 |
18,479 |
|
Knight-Swift Transportation Holdings Inc. |
195,227 |
13,375 | |
|
* |
Saia Inc. |
32,074 |
11,390 |
|
Ryder System Inc. |
45,295 |
11,073 | |
|
* |
Lyft Inc. Class A |
467,863 |
7,907 |
|
Landstar System Inc. |
41,870 |
7,563 | |
|
ArcBest Corp. |
26,734 |
3,689 | |
|
Werner Enterprises Inc. |
73,740 |
2,889 | |
|
* |
RXO Inc. |
121,502 |
2,582 |
|
Schneider National Inc. Class B |
62,426 |
2,154 | |
|
* |
Avis Budget Group Inc. |
13,079 |
1,929 |
|
Marten Transport Ltd. |
70,196 |
1,012 | |
|
Covenant Logistics Group Inc. |
18,776 |
664 | |
|
Heartland Express Inc. |
52,403 |
648 | |
|
FTAI Infrastructure Inc. |
137,861 |
480 | |
|
*,1 |
Hertz Global Holdings Inc. |
195,729 |
444 |
|
750,131 | |||
|
Industrial Conglomerates (2.5%) | |||
|
3M Co. |
642,695 |
110,434 | |
|
Honeywell International Inc. |
390,409 |
83,364 | |
|
DuPont de Nemours Inc. |
166,392 |
22,395 | |
|
216,193 | |||
|
Machinery (20.3%) | |||
|
Caterpillar Inc. (XNYS) |
567,555 |
452,608 | |
|
Deere & Co. |
299,363 |
196,056 | |
|
Parker-Hannifin Corp. |
155,367 |
152,173 | |
|
Cummins Inc. |
170,036 |
95,968 | |
|
Illinois Tool Works Inc. |
336,793 |
92,743 | |
|
PACCAR Inc. |
648,514 |
80,500 | |
|
Westinghouse Air Brake Technologies Corp. |
209,085 |
59,784 | |
|
Ingersoll Rand Inc. (XNYS) |
482,235 |
37,156 | |
|
Otis Worldwide Corp. |
472,841 |
33,633 | |
|
Xylem Inc. |
292,909 |
32,252 | |
|
Dover Corp. |
165,948 |
32,232 | |
|
Snap-on Inc. |
63,836 |
24,661 | |
|
ITT Inc. |
110,165 |
22,065 | |
|
Nordson Corp. |
65,229 |
20,985 | |
|
IDEX Corp. |
91,202 |
20,852 | |
|
Fortive Corp. |
347,494 |
20,447 | |
|
Lincoln Electric Holdings Inc. |
65,865 |
18,523 | |
|
Stanley Black & Decker Inc. |
191,576 |
18,462 | |
|
* |
RBC Bearings Inc. |
35,084 |
17,341 |
|
Mueller Industries Inc. |
258,909 |
16,159 | |
|
Graco Inc. |
199,421 |
15,441 | |
|
Donaldson Co. Inc. |
142,852 |
12,984 | |
|
Allison Transmission Holdings Inc. |
102,147 |
12,841 | |
|
CNH Industrial NV |
1,069,615 |
12,654 | |
|
Flowserve Corp. |
157,495 |
12,456 | |
|
Watts Water Technologies Inc. Class A |
33,040 |
12,084 | |
|
Pentair plc |
199,152 |
12,041 | |
|
Crane Co. |
58,645 |
12,026 | |
4
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
Oshkosh Corp. |
76,813 |
11,838 | |
|
* |
SPX Technologies Inc. |
60,108 |
11,826 |
|
Toro Co. |
117,358 |
11,479 | |
|
Timken Co. |
79,292 |
9,551 | |
|
Terex Corp. |
140,739 |
8,938 | |
|
ESCO Technologies Inc. |
31,926 |
8,717 | |
|
AGCO Corp. |
73,649 |
8,713 | |
|
Federal Signal Corp. |
73,297 |
8,576 | |
|
* |
Gates Industrial Corp. Ltd. |
312,622 |
7,997 |
|
Enpro Inc. |
25,385 |
7,520 | |
|
JBT Marel Corp. |
64,222 |
7,506 | |
|
* |
Middleby Corp. |
50,155 |
5,559 |
|
Esab Corp. |
67,672 |
5,101 | |
|
Franklin Electric Co. Inc. |
47,735 |
4,778 | |
|
Atmus Filtration Technologies Inc. |
100,843 |
4,763 | |
|
Mueller Water Products Inc. Class A |
188,479 |
4,550 | |
|
* |
CECO Environmental Corp. |
63,091 |
4,492 |
|
Kadant Inc. |
14,512 |
4,341 | |
|
Standex International Corp. |
14,592 |
4,227 | |
|
* |
Symbotic Inc. |
86,229 |
3,421 |
|
Helios Technologies Inc. |
40,743 |
2,975 | |
|
Trinity Industries Inc. |
95,708 |
2,758 | |
|
Kennametal Inc. |
91,614 |
2,688 | |
|
* |
Midera Food Processing Inc. |
50,157 |
2,351 |
|
Enerpac Tool Group Corp. |
62,688 |
2,340 | |
|
* |
Proto Labs Inc. |
29,204 |
2,338 |
|
Worthington Enterprises Inc. |
39,340 |
2,260 | |
|
* |
Blue Bird Corp. |
36,903 |
2,146 |
|
Alamo Group Inc. |
12,751 |
2,099 | |
|
Gorman-Rupp Co. |
25,946 |
1,956 | |
|
Albany International Corp. Class A |
34,844 |
1,931 | |
|
* |
Hillman Solutions Corp. |
241,959 |
1,863 |
|
* |
Alliance Laundry Holdings Inc. |
78,093 |
1,789 |
|
Greenbrier Cos. Inc. |
37,064 |
1,670 | |
|
Lindsay Corp. |
12,561 |
1,443 | |
|
Tennant Co. |
19,984 |
1,391 | |
|
* |
Graham Corp. |
13,377 |
1,167 |
|
Douglas Dynamics Inc. |
27,609 |
1,134 | |
|
Astec Industries Inc. |
25,371 |
1,080 | |
|
* |
Manitowoc Co. Inc. |
40,737 |
791 |
|
Miller Industries Inc. |
13,247 |
742 | |
|
* |
3D Systems Corp. |
196,426 |
644 |
|
Wabash National Corp. |
47,547 |
641 | |
|
Columbus McKinnon Corp. |
34,320 |
606 | |
|
* |
Aebi Schmidt Holding AG |
45,216 |
572 |
|
Luxfer Holdings plc |
32,910 |
565 | |
|
* |
Energy Recovery Inc. |
61,148 |
471 |
|
* |
Titan International Inc. |
58,784 |
423 |
|
Hyster-Yale Inc. |
12,435 |
421 | |
|
Park-Ohio Holdings Corp. |
9,271 |
418 | |
|
* |
Microvast Holdings Inc. |
271,568 |
195 |
|
1,734,888 | |||
|
Marine Transportation (0.2%) | |||
|
* |
Kirby Corp. |
65,903 |
9,349 |
|
Matson Inc. |
37,275 |
8,380 | |
|
Genco Shipping & Trading Ltd. |
40,234 |
1,055 | |
|
18,784 | |||
|
Passenger Airlines (1.8%) | |||
|
Delta Air Lines Inc. |
749,557 |
58,465 | |
|
* |
United Airlines Holdings Inc. |
399,962 |
43,192 |
|
Southwest Airlines Co. |
572,162 |
22,045 | |
|
* |
American Airlines Group Inc. |
814,832 |
10,943 |
|
* |
Alaska Air Group Inc. |
137,348 |
5,677 |
|
* |
Joby Aviation Inc. |
727,291 |
4,975 |
|
* |
SkyWest Inc. |
48,885 |
4,627 |
|
* |
Allegiant Travel Co. |
29,832 |
2,269 |
|
* |
JetBlue Airways Corp. |
389,834 |
1,793 |
|
* |
Frontier Group Holdings Inc. |
85,047 |
485 |
5
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Republic Airways Holdings Inc. |
17,260 |
301 |
|
154,772 | |||
|
Professional Services (6.1%) | |||
|
Automatic Data Processing Inc. |
492,582 |
140,957 | |
|
Paychex Inc. |
394,409 |
50,224 | |
|
Verisk Analytics Inc. |
161,457 |
31,287 | |
|
Equifax Inc. |
146,735 |
27,756 | |
|
Broadridge Financial Solutions Inc. |
142,533 |
25,995 | |
|
Jacobs Solutions Inc. |
145,519 |
21,690 | |
|
SS&C Technologies Holdings Inc. |
259,683 |
21,546 | |
|
Leidos Holdings Inc. |
147,185 |
20,637 | |
|
TransUnion |
237,682 |
20,182 | |
|
* |
CACI International Inc. Class A |
27,223 |
16,960 |
|
Paycom Software Inc. |
49,894 |
11,930 | |
|
Booz Allen Hamilton Holding Corp. |
147,808 |
11,182 | |
|
* |
Paylocity Holding Corp. |
52,775 |
8,456 |
|
Mobility Global Inc. |
363,348 |
7,376 | |
|
Genpact Ltd. |
192,943 |
7,328 | |
|
* |
ExlService Holdings Inc. |
183,646 |
6,993 |
|
UL Solutions Inc. Class A |
91,097 |
6,789 | |
|
Science Applications International Corp. |
52,115 |
6,682 | |
|
* |
Planet Labs PBC |
317,938 |
6,311 |
|
KBR Inc. |
155,952 |
5,848 | |
|
* |
FTI Consulting Inc. |
37,167 |
5,596 |
|
Robert Half Inc. |
122,685 |
5,563 | |
|
Korn Ferry |
61,969 |
5,302 | |
|
Exponent Inc. |
59,833 |
4,249 | |
|
* |
Amentum Holdings Inc. |
195,167 |
3,901 |
|
Maximus Inc. |
64,799 |
3,743 | |
|
ManpowerGroup Inc. |
57,178 |
3,599 | |
|
* |
CBIZ Inc. |
62,824 |
3,423 |
|
* |
Parsons Corp. |
65,797 |
3,200 |
|
* |
Huron Consulting Group Inc. |
19,985 |
3,195 |
|
TriNet Group Inc. |
34,044 |
2,393 | |
|
Insperity Inc. |
44,701 |
2,385 | |
|
* |
Innodata Inc. |
38,100 |
2,150 |
|
* |
First Advantage Corp. |
95,107 |
1,999 |
|
ICF International Inc. |
22,410 |
1,997 | |
|
Concentrix Corp. |
58,335 |
1,756 | |
|
* |
TIC Solutions Inc. |
176,907 |
1,679 |
|
* |
Willdan Group Inc. |
18,167 |
1,598 |
|
CRA International Inc. |
7,524 |
1,313 | |
|
* |
Upwork Inc. |
144,760 |
1,307 |
|
Kforce Inc. |
20,281 |
1,168 | |
|
Barrett Business Services Inc. |
29,478 |
1,014 | |
|
* |
BlackSky Technology Inc. |
38,891 |
898 |
|
* |
Verra Mobility Corp. |
186,527 |
826 |
|
* |
Legalzoom.com Inc. |
127,558 |
795 |
|
* |
Clarivate plc |
374,872 |
769 |
|
* |
Resolute Holdings Management Inc. |
4,766 |
646 |
|
Kelly Services Inc. Class A |
34,546 |
594 | |
|
* |
Mistras Group Inc. |
23,366 |
438 |
|
Alight Inc. Class A |
28,174 |
403 | |
|
* |
Conduent Inc. |
175,307 |
302 |
|
* |
Franklin Covey Co. |
11,742 |
239 |
|
* |
Forrester Research Inc. |
15,157 |
186 |
|
TaskUS Inc. Class A |
17,470 |
144 | |
|
524,899 | |||
|
Trading Companies & Distributors (4.7%) | |||
|
United Rentals Inc. |
77,196 |
80,129 | |
|
WW Grainger Inc. |
53,815 |
70,470 | |
|
Fastenal Co. |
1,414,015 |
69,725 | |
|
Ferguson Enterprises Inc. |
238,946 |
53,646 | |
|
WESCO International Inc. |
60,019 |
20,431 | |
|
* |
QXO Inc. |
1,150,979 |
15,285 |
|
Applied Industrial Technologies Inc. |
45,548 |
14,757 | |
|
Watsco Inc. |
43,154 |
13,370 | |
|
* |
Core & Main Inc. Class A |
230,478 |
9,901 |
|
GATX Corp. |
41,531 |
7,265 | |
6
Industrials Index Fund
|
Shares |
Market Value• ($000) | ||
|
MSC Industrial Direct Co. Inc. Class A |
55,139 |
6,555 | |
|
Herc Holdings Inc. |
39,121 |
5,960 | |
|
Rush Enterprises Inc. Class A |
75,189 |
5,777 | |
|
* |
Xometry Inc. Class A |
59,112 |
5,479 |
|
* |
SiteOne Landscape Supply Inc. |
54,705 |
5,390 |
|
* |
DNOW Inc. |
219,413 |
3,517 |
|
McGrath RentCorp. |
30,268 |
3,403 | |
|
Boise Cascade Co. |
43,406 |
3,386 | |
|
* |
DXP Enterprises Inc. |
15,729 |
2,953 |
|
* |
NPK International Inc. |
98,707 |
1,311 |
|
* |
Transcat Inc. |
11,197 |
968 |
|
Global Industrial Co. |
23,430 |
916 | |
|
* |
BlueLinx Holdings Inc. |
9,390 |
748 |
|
Willis Lease Finance Corp. |
13,484 |
730 | |
|
* |
Custom Truck One Source Inc. |
76,627 |
706 |
|
* |
Titan Machinery Inc. |
25,634 |
527 |
|
Karat Packaging Inc. |
10,359 |
494 | |
|
* |
Hudson Technologies Inc. |
40,529 |
216 |
|
404,015 | |||
|
Total Common Stocks (Cost $6,143,810) |
8,530,574 | ||
|
Temporary Cash Investments (0.4%) | |||
|
Money Market Fund (0.4%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $30,410) |
304,145 |
30,411 |
|
Total Investments (100.0%) (Cost $6,174,220) |
8,560,985 | ||
|
Other Assets and Liabilities—Net (0.0%) |
880 | ||
|
Net Assets (100.0%) |
8,561,865 | ||
|
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 $4,017. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $4,607 was received for securities on loan. |
Derivative Financial Instruments Outstanding as of Period End
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Union Pacific Corp. |
8/31/2027 |
BANA |
30,959 |
(3.630 ) |
— |
(769) |
|
Waste Connections Inc. |
8/31/2027 |
BANA |
4,985 |
(3.630 ) |
— |
(28) |
|
— |
(797) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Industrials Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $6,143,810) |
8,530,574 |
|
Affiliated Issuers (Cost $30,410) |
30,411 |
|
Total Investments in Securities |
8,560,985 |
|
Investment in Vanguard |
188 |
|
Foreign Currency, at Value (Cost $11) |
11 |
|
Receivables for Investment Securities Sold |
25,856 |
|
Receivables for Accrued Income |
8,982 |
|
Receivables for Capital Shares Issued |
600 |
|
Total Assets |
8,596,622 |
|
Liabilities |
|
|
Due to Custodian |
9 |
|
Payables for Investment Securities Purchased |
25,450 |
|
Collateral for Securities on Loan |
4,607 |
|
Payables for Capital Shares Redeemed |
3,546 |
|
Payables to Vanguard |
348 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
797 |
|
Total Liabilities |
34,757 |
|
Net Assets |
8,561,865 |
|
1 Includes $4,017 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
6,551,129 |
|
Total Distributable Earnings (Loss) |
2,010,736 |
|
Net Assets |
8,561,865 |
|
ETF Shares—Net Assets |
|
|
Applicable to 23,818,012 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
7,993,869 |
|
Net Asset Value Per Share—ETF Shares |
$335.62 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 3,294,146 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
567,996 |
|
Net Asset Value Per Share—Admiral Shares |
$172.43 |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Industrials Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends1 |
84,525 |
|
Interest2 |
953 |
|
Securities Lending—Net |
352 |
|
Total Income |
85,830 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
78 |
|
Management and Administrative—ETF Shares3 |
5,845 |
|
Management and Administrative—Admiral Shares3 |
427 |
|
Marketing and Distribution—ETF Shares |
235 |
|
Marketing and Distribution—Admiral Shares |
26 |
|
Custodian Fees |
32 |
|
Auditing Fees |
35 |
|
Accounting Fees3 |
42 |
|
Shareholders’ Reports—ETF Shares3 |
204 |
|
Shareholders’ Reports—Admiral Shares3 |
6 |
|
Trustees’ Fees and Expenses |
4 |
|
Other Expenses |
14 |
|
Total Expenses |
6,948 |
|
Net Investment Income |
78,882 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2,4 |
233,748 |
|
Swap Contracts |
2,156 |
|
Foreign Currencies |
(2 ) |
|
Realized Net Gain (Loss) |
235,902 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
772,496 |
|
Swap Contracts |
(797 ) |
|
Change in Unrealized Appreciation (Depreciation) |
771,699 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,086,483 |
|
1 |
Dividends are net of foreign withholding taxes of $58. |
|
2 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $944, ($1), and ($1), respectively. Purchases and sales are for temporary cash investment purposes. |
|
3 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
4 |
Includes $273,587 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Industrials Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
78,882 |
72,872 |
|
Realized Net Gain (Loss) |
235,902 |
327,889 |
|
Change in Unrealized Appreciation (Depreciation) |
771,699 |
474,229 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,086,483 |
874,990 |
|
Distributions |
||
|
ETF Shares |
(68,240 ) |
(68,228 ) |
|
Admiral Shares |
(4,964 ) |
(4,594 ) |
|
Total Distributions |
(73,204 ) |
(72,822 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
853,336 |
8,182 |
|
Admiral Shares |
51,557 |
41,859 |
|
Net Increase (Decrease) from Capital Share Transactions |
904,893 |
50,041 |
|
Total Increase (Decrease) |
1,918,172 |
852,209 |
|
Net Assets |
||
|
Beginning of Period |
6,643,693 |
5,791,484 |
|
End of Period |
8,561,865 |
6,643,693 |
See accompanying Notes, which are an integral part of the Financial Statements.
10
Industrials Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$291.34 |
$252.79 |
$207.59 |
$175.75 |
$199.27 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
3.302 |
3.212 |
3.029 |
2.829 |
2.432 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
44.072 |
38.531 |
45.268 |
31.869 |
(23.486) |
|
Total from Investment Operations |
47.374 |
41.743 |
48.297 |
34.698 |
(21.054) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(3.094) |
(3.193) |
(3.097) |
(2.858) |
(2.466) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(3.094) |
(3.193) |
(3.097) |
(2.858) |
(2.466) |
|
Net Asset Value, End of Period |
$335.62 |
$291.34 |
$252.79 |
$207.59 |
$175.75 |
|
Total Return |
16.35% |
16.67% |
23.48% |
19.99% |
-10.62% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$7,994 |
$6,195 |
$5,439 |
$4,493 |
$3,461 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%2 |
0.10% |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.02% |
1.21% |
1.35% |
1.50% |
1.29% |
|
Portfolio Turnover Rate3 |
5% |
5% |
4% |
10% |
4% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
11
Industrials Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$149.67 |
$129.87 |
$106.65 |
$90.29 |
$102.37 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.699 |
1.649 |
1.564 |
1.451 |
1.240 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
22.651 |
19.792 |
23.247 |
16.376 |
(12.056) |
|
Total from Investment Operations |
24.350 |
21.441 |
24.811 |
17.827 |
(10.816) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.590) |
(1.641) |
(1.591) |
(1.467) |
(1.264) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.590) |
(1.641) |
(1.591) |
(1.467) |
(1.264) |
|
Net Asset Value, End of Period |
$172.43 |
$149.67 |
$129.87 |
$106.65 |
$90.29 |
|
Total Return2 |
16.35% |
16.67% |
23.49% |
19.99% |
-10.62% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$568 |
$448 |
$352 |
$271 |
$225 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10% |
0.10% |
|
Ratio of Net Investment Income to Average Net Assets |
1.02% |
1.21% |
1.36% |
1.49% |
1.27% |
|
Portfolio Turnover Rate4 |
5% |
5% |
4% |
10% |
4% |
|
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 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
12
Industrials Index Fund
Notes to Financial Statements
Vanguard Industrials Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash
13
Industrials Index Fund
collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $188,000, representing less than 0.01% of the fund’s net assets and 0.08% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
14
Industrials Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
8,530,574 |
— |
— |
8,530,574 |
|
Temporary Cash Investments |
30,411 |
— |
— |
30,411 |
|
Total |
8,560,985 |
— |
— |
8,560,985 |
|
Derivative Financial Instruments |
||||
|
Liabilities |
||||
|
Swap Contracts |
— |
(797) |
— |
(797) |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
270,811 |
|
Total Distributable Earnings (Loss) |
(270,811) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
15,295 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
2,369,073 |
|
Capital Loss Carryforwards |
(373,632) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
2,010,736 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
73,204 |
72,822 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
73,204 |
72,822 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
6,191,911 |
|
Gross Unrealized Appreciation |
2,723,081 |
|
Gross Unrealized Depreciation |
(354,007) |
|
Net Unrealized Appreciation (Depreciation) |
2,369,074 |
F.
During the year ended August 31, 2026, the fund purchased $455,092,000 of investment securities and sold $359,801,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,358,853,000 and $538,922,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
15
Industrials Index Fund
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $6,708,000 and sales were $9,088,000, resulting in net realized gain of $280,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
1,389,891 |
4,193 |
1,043,819 |
3,887 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(536,555) |
(1,640) |
(1,035,637) |
(4,140) |
|
Net Increase (Decrease)—ETF Shares |
853,336 |
2,553 |
8,182 |
(253) |
|
Admiral Shares |
||||
|
Issued |
236,623 |
1,403 |
157,163 |
1,138 |
|
Issued in Lieu of Cash Distributions |
4,313 |
27 |
4,045 |
30 |
|
Redeemed |
(189,379) |
(1,132) |
(119,349) |
(882) |
|
Net Increase (Decrease)—Admiral Shares |
51,557 |
298 |
41,859 |
286 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
16
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Industrials Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Industrials Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
17
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $68,355,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $489,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54820 102026
18
Financial Statements
For the year ended August 31, 2026
Vanguard Information Technology Index Fund
Contents
|
1 | |
|
17 | |
|
18 | |
Information Technology Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.9%) | |||
|
Communications Equipment (4.0%) | |||
|
Cisco Systems Inc. |
26,451,500 |
2,922,626 | |
|
* |
Arista Networks Inc. |
7,409,051 |
1,449,877 |
|
Motorola Solutions Inc. |
1,236,588 |
600,116 | |
|
* |
Lumentum Holdings Inc. |
553,737 |
506,537 |
|
* |
Ciena Corp. |
1,066,940 |
408,425 |
|
* |
F5 Inc. |
553,780 |
225,460 |
|
* |
Viasat Inc. |
1,676,072 |
112,749 |
|
* |
Viavi Solutions Inc. |
3,091,359 |
112,185 |
|
* |
Applied Optoelectronics Inc. |
936,926 |
100,898 |
|
* |
Extreme Networks Inc. |
3,351,483 |
75,375 |
|
* |
Digi International Inc. |
935,681 |
70,120 |
|
* |
NetScout Systems Inc. |
1,785,344 |
69,325 |
|
* |
Calix Inc. |
1,508,943 |
57,521 |
|
* |
Vistance Networks Inc. |
5,177,319 |
32,669 |
|
* |
Harmonic Inc. |
2,709,383 |
32,458 |
|
* |
ADTRAN Holdings Inc. |
1,814,975 |
14,066 |
|
* |
NETGEAR Inc. |
634,910 |
13,435 |
|
* |
Clearfield Inc. |
294,627 |
8,547 |
|
* |
Ribbon Communications Inc. |
2,429,572 |
4,835 |
|
*,1 |
Ondas Inc. |
85,950 |
658 |
|
6,817,882 | |||
|
Electronic Equipment, Instruments & Components (4.6%) | |||
|
Amphenol Corp. Class A |
8,447,798 |
1,339,398 | |
|
Corning Inc. |
5,630,333 |
837,399 | |
|
TE Connectivity plc |
2,261,095 |
464,090 | |
|
* |
Keysight Technologies Inc. |
1,341,857 |
433,017 |
|
* |
Coherent Corp. |
1,269,062 |
352,584 |
|
* |
Flex Ltd. |
3,015,281 |
329,420 |
|
Jabil Inc. |
905,616 |
276,448 | |
|
* |
Teledyne Technologies Inc. |
412,434 |
252,801 |
|
CDW Corp. |
1,348,207 |
204,361 | |
|
TD SYNNEX Corp. |
751,037 |
189,900 | |
|
* |
Zebra Technologies Corp. Class A |
510,472 |
180,477 |
|
* |
Fabrinet |
348,944 |
144,090 |
|
* |
Arrow Electronics Inc. |
676,509 |
138,299 |
|
Littelfuse Inc. |
333,835 |
137,600 | |
|
Cognex Corp. |
2,248,067 |
137,042 | |
|
* |
TTM Technologies Inc. |
1,143,620 |
135,999 |
|
Advanced Energy Industries Inc. |
486,616 |
134,725 | |
|
* |
Sanmina Corp. |
684,669 |
134,688 |
|
Avnet Inc. |
1,331,547 |
119,253 | |
|
* |
Plexus Corp. |
462,477 |
110,749 |
|
Ralliant Corp. |
1,751,527 |
108,122 | |
|
*,1 |
Novanta Inc. |
727,883 |
106,431 |
|
* |
Insight Enterprises Inc. |
668,961 |
105,040 |
|
Badger Meter Inc. |
725,549 |
98,290 | |
|
Vontier Corp. |
3,048,748 |
98,200 | |
|
* |
Itron Inc. |
999,610 |
96,972 |
|
Vishay Intertechnology Inc. |
3,085,875 |
93,903 | |
|
Belden Inc. |
801,007 |
91,683 | |
|
* |
OSI Systems Inc. |
400,565 |
83,282 |
|
* |
Mirion Technologies Inc. |
5,165,044 |
77,837 |
|
Bel Fuse Inc. Class B |
303,791 |
75,728 | |
|
* |
Knowles Corp. |
2,164,850 |
73,995 |
|
Benchmark Electronics Inc. |
905,340 |
63,627 | |
|
Crane NXT Co. |
1,274,322 |
62,314 | |
|
ePlus Inc. |
667,432 |
58,714 | |
|
* |
nLight Inc. |
1,181,879 |
49,958 |
|
* |
Rogers Corp. |
388,277 |
48,756 |
1
Information Technology Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
IPG Photonics Corp. |
638,564 |
48,582 |
|
* |
Ouster Inc. |
1,286,000 |
44,290 |
|
CTS Corp. |
714,044 |
40,322 | |
|
* |
Arlo Technologies Inc. |
2,601,337 |
34,208 |
|
Napco Security Technologies Inc. |
898,726 |
32,570 | |
|
* |
ScanSource Inc. |
534,249 |
30,500 |
|
PC Connection Inc. |
287,838 |
22,990 | |
|
* |
Daktronics Inc. |
978,124 |
19,103 |
|
* |
Vishay Precision Group Inc. |
305,273 |
18,869 |
|
*,1 |
Lightwave Logic Inc. |
3,145,119 |
17,078 |
|
Methode Electronics Inc. |
885,687 |
16,146 | |
|
* |
Kimball Electronics Inc. |
610,005 |
14,408 |
|
* |
Evolv Technologies Holdings Inc. |
2,680,701 |
13,967 |
|
* |
Powerfleet Inc. NJ |
3,085,533 |
9,257 |
|
Bel Fuse Inc. Class A |
38,464 |
7,876 | |
|
* |
SmartRent Inc. |
4,341,638 |
5,774 |
|
*,1 |
MicroVision Inc. |
619,147 |
1,121 |
|
* |
Aeva Technologies Inc. |
42,166 |
660 |
|
* |
ADI Global Distribution Inc. |
8,598 |
188 |
|
* |
Frequency Electronics Inc. |
2,751 |
166 |
|
7,823,267 | |||
|
IT Services (3.7%) | |||
|
International Business Machines Corp. |
6,253,383 |
1,462,479 | |
|
Accenture plc Class A |
4,353,891 |
826,194 | |
|
* |
Snowflake Inc. |
2,379,517 |
788,643 |
|
* |
Cloudflare Inc. Class A |
2,296,676 |
700,739 |
|
* |
MongoDB Inc. |
674,354 |
305,732 |
|
* |
Twilio Inc. Class A |
1,263,169 |
297,640 |
|
Cognizant Technology Solutions Corp. Class A |
4,263,415 |
275,331 | |
|
* |
Okta Inc. |
1,587,549 |
274,709 |
|
VeriSign Inc. |
793,197 |
228,663 | |
|
* |
Akamai Technologies Inc. |
1,512,177 |
164,253 |
|
* |
Gartner Inc. |
792,106 |
156,924 |
|
* |
GoDaddy Inc. Class A |
1,593,177 |
155,940 |
|
* |
DigitalOcean Holdings Inc. |
1,233,799 |
136,569 |
|
* |
EPAM Systems Inc. |
956,883 |
112,750 |
|
*,1 |
Applied Digital Corp. |
3,806,144 |
96,714 |
|
* |
Fastly Inc. Class A |
3,461,354 |
78,884 |
|
* |
Kyndryl Holdings Inc. |
5,224,431 |
70,269 |
|
* |
DXC Technology Co. |
4,260,545 |
48,144 |
|
* |
Everforth Inc. |
1,023,847 |
33,193 |
|
*,1 |
BigBear.ai Holdings Inc. |
7,325,773 |
22,930 |
|
* |
Grid Dynamics Holdings Inc. |
1,705,510 |
13,610 |
|
*,1 |
Rackspace Technology Inc. |
2,079,761 |
6,510 |
|
Hackett Group Inc. |
578,920 |
6,490 | |
|
* |
Commerce.com Inc. |
1,842,448 |
4,440 |
|
* |
Unisys Corp. |
1,628,015 |
4,396 |
|
* |
CoreWeave Inc. Class A |
5,657 |
480 |
|
6,272,626 | |||
|
Semiconductors & Semiconductor Equipment (41.9%) | |||
|
NVIDIA Corp. |
137,054,413 |
30,258,873 | |
|
Broadcom Inc. |
20,833,869 |
7,715,615 | |
|
Micron Technology Inc. |
7,442,384 |
7,135,237 | |
|
* |
Advanced Micro Devices Inc. |
10,695,657 |
5,034,660 |
|
* |
Intel Corp. |
29,384,576 |
2,630,213 |
|
Lam Research Corp. |
8,425,708 |
2,540,267 | |
|
Applied Materials Inc. |
5,334,542 |
2,445,301 | |
|
Texas Instruments Inc. |
6,201,627 |
1,618,066 | |
|
KLA Corp. |
8,956,839 |
1,571,477 | |
|
QUALCOMM Inc. |
7,358,078 |
1,254,405 | |
|
Marvell Technology Inc. |
5,907,123 |
1,250,302 | |
|
Analog Devices Inc. |
3,375,306 |
1,222,333 | |
|
Monolithic Power Systems Inc. |
357,651 |
453,419 | |
|
NXP Semiconductors NV |
1,914,355 |
430,041 | |
|
Teradyne Inc. |
1,213,270 |
424,438 | |
|
* |
Astera Labs Inc. |
1,141,388 |
338,969 |
|
Microchip Technology Inc. |
4,381,004 |
321,785 | |
|
* |
Credo Technology Group Holding Ltd. |
1,401,171 |
316,931 |
|
*,1 |
ON Semiconductor Corp. |
3,302,547 |
244,686 |
2
Information Technology Index Fund
|
Shares |
Market Value• ($000) | ||
|
Qnity Electronics Inc. |
1,903,241 |
227,304 | |
|
Entegris Inc. |
1,487,489 |
201,242 | |
|
* |
First Solar Inc. |
985,694 |
199,012 |
|
MKS Inc. |
692,165 |
177,360 | |
|
* |
MACOM Technology Solutions Holdings Inc. |
657,752 |
173,535 |
|
* |
Lattice Semiconductor Corp. |
1,493,194 |
172,225 |
|
* |
Semtech Corp. |
1,170,057 |
155,571 |
|
* |
Onto Innovation Inc. |
555,388 |
148,405 |
|
* |
SiTime Corp. |
253,938 |
143,582 |
|
Skyworks Solutions Inc. |
2,010,877 |
134,749 | |
|
* |
Qorvo Inc. |
1,259,349 |
120,998 |
|
*,1 |
IonQ Inc. |
3,066,012 |
120,525 |
|
* |
Silicon Laboratories Inc. |
536,557 |
117,533 |
|
* |
Rambus Inc. |
1,345,045 |
116,602 |
|
* |
FormFactor Inc. |
1,121,084 |
112,792 |
|
* |
Impinj Inc. |
614,548 |
107,128 |
|
* |
Allegro MicroSystems Inc. |
2,628,971 |
95,300 |
|
Amkor Technology Inc. |
1,998,603 |
94,534 | |
|
* |
Diodes Inc. |
1,036,681 |
94,131 |
|
* |
ACM Research Inc. Class A |
1,260,090 |
91,760 |
|
* |
Enphase Energy Inc. |
2,504,465 |
91,213 |
|
Kulicke & Soffa Industries Inc. |
1,129,242 |
90,407 | |
|
* |
Cirrus Logic Inc. |
816,816 |
89,449 |
|
* |
Axcelis Technologies Inc. |
743,208 |
85,714 |
|
* |
Synaptics Inc. |
877,129 |
84,836 |
|
Universal Display Corp. |
1,001,534 |
83,298 | |
|
*,1 |
Rigetti Computing Inc. |
5,312,684 |
83,197 |
|
* |
MaxLinear Inc. |
1,376,581 |
82,471 |
|
* |
Ultra Clean Holdings Inc. |
1,135,576 |
77,026 |
|
Power Integrations Inc. |
1,410,818 |
72,488 | |
|
* |
Ambarella Inc. |
1,013,702 |
70,331 |
|
* |
Veeco Instruments Inc. |
1,509,788 |
66,884 |
|
* |
Penguin Solutions Inc. |
1,192,015 |
58,504 |
|
* |
Aehr Test Systems |
711,542 |
56,404 |
|
* |
Cohu Inc. |
1,170,179 |
53,945 |
|
*,1 |
SolarEdge Technologies Inc. |
1,485,530 |
47,834 |
|
* |
Ichor Holdings Ltd. |
865,074 |
46,342 |
|
* |
Navitas Semiconductor Corp. |
3,618,792 |
41,942 |
|
* |
Photronics Inc. |
1,466,674 |
41,272 |
|
* |
PDF Solutions Inc. |
787,754 |
35,039 |
|
* |
CEVA Inc. |
677,243 |
18,319 |
|
*,1 |
indie Semiconductor Inc. Class A |
4,901,320 |
18,208 |
|
* |
Alpha & Omega Semiconductor Ltd. |
642,747 |
15,850 |
|
NVE Corp. |
121,742 |
12,189 | |
|
* |
Kopin Corp. |
167,838 |
745 |
|
* |
T1 Energy Inc. |
40,358 |
180 |
|
* |
Cerebras Systems Inc. Class A |
852 |
157 |
|
* |
AXT Inc. |
2,500 |
151 |
|
71,435,701 | |||
|
Software (26.0%) | |||
|
Microsoft Corp. |
38,728,601 |
19,646,632 | |
|
* |
Palantir Technologies Inc. Class A |
14,735,934 |
2,746,483 |
|
* |
Palo Alto Networks Inc. |
5,541,207 |
2,117,461 |
|
Oracle Corp. |
11,082,746 |
1,652,659 | |
|
* |
Crowdstrike Holdings Inc. Class A |
6,869,604 |
1,586,879 |
|
Salesforce Inc. |
5,587,956 |
1,439,122 | |
|
* |
ServiceNow Inc. |
7,109,959 |
1,052,203 |
|
* |
Adobe Inc. |
2,869,504 |
840,162 |
|
* |
Fortinet Inc. |
4,551,013 |
777,905 |
|
Intuit Inc. |
1,919,860 |
689,806 | |
|
* |
Cadence Design Systems Inc. |
2,029,222 |
687,460 |
|
* |
Synopsys Inc. |
1,345,771 |
591,587 |
|
* |
Datadog Inc. Class A |
2,326,110 |
551,381 |
|
* |
Autodesk Inc. |
1,665,375 |
430,549 |
|
Roper Technologies Inc. |
835,136 |
354,632 | |
|
* |
Workday Inc. Class A |
1,673,930 |
330,518 |
|
* |
Atlassian Corp. Ltd. Class A |
1,451,342 |
281,807 |
|
* |
Strategy Inc. |
1,897,485 |
252,252 |
|
* |
Fair Isaac Corp. |
208,874 |
239,622 |
3
Information Technology Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
Zoom Communications Inc. |
2,216,808 |
214,321 |
|
* |
PTC Inc. |
1,218,349 |
189,746 |
|
* |
Nutanix Inc. Class A |
2,757,828 |
189,104 |
|
* |
Guidewire Software Inc. |
919,934 |
188,357 |
|
Gen Digital Inc. (XNGS) |
6,006,585 |
186,204 | |
|
* |
Zscaler Inc. |
971,706 |
183,055 |
|
* |
Tyler Technologies Inc. |
478,973 |
178,283 |
|
* |
Dynatrace Inc. |
3,175,799 |
173,367 |
|
* |
Samsara Inc. Class A |
4,141,961 |
169,199 |
|
* |
Trimble Inc. |
2,713,599 |
162,653 |
|
* |
Manhattan Associates Inc. |
728,668 |
162,631 |
|
* |
Rubrik Inc. Class A |
1,737,474 |
161,655 |
|
* |
Docusign Inc. |
2,382,050 |
157,858 |
|
* |
Unity Software Inc. |
3,709,843 |
156,184 |
|
* |
JFrog Ltd. |
1,464,011 |
146,504 |
|
* |
HubSpot Inc. |
545,094 |
142,466 |
|
* |
Elastic NV |
1,348,184 |
131,515 |
|
* |
UiPath Inc. Class A |
7,044,168 |
131,515 |
|
InterDigital Inc. |
372,845 |
124,914 | |
|
* |
SentinelOne Inc. Class A |
5,385,965 |
119,030 |
|
* |
Gitlab Inc. Class A |
2,553,171 |
118,825 |
|
* |
Procore Technologies Inc. |
1,881,141 |
117,985 |
|
* |
Zeta Global Holdings Corp. Class A |
3,692,054 |
114,343 |
|
* |
Qualys Inc. |
606,494 |
112,893 |
|
* |
Appfolio Inc. Class A |
475,288 |
111,317 |
|
Bentley Systems Inc. Class B |
3,005,632 |
110,457 | |
|
* |
Commvault Systems Inc. |
782,035 |
107,545 |
|
* |
Box Inc. Class A |
3,001,388 |
107,390 |
|
*,1 |
Aurora Innovation Inc. |
19,040,426 |
107,198 |
|
* |
Riot Platforms Inc. |
5,624,588 |
106,839 |
|
* |
Dropbox Inc. Class A |
3,019,193 |
106,245 |
|
RingCentral Inc. Class A |
1,524,152 |
106,111 | |
|
* |
Hut 8 Corp. |
1,344,996 |
105,771 |
|
* |
ACI Worldwide Inc. |
1,969,391 |
104,929 |
|
* |
Varonis Systems Inc. |
2,372,574 |
103,848 |
|
* |
Tenable Holdings Inc. |
2,709,333 |
103,361 |
|
* |
Circle Internet Group Inc. |
1,044,013 |
99,755 |
|
* |
Workiva Inc. |
1,236,697 |
98,936 |
|
* |
BILL Holdings Inc. |
1,990,233 |
97,979 |
|
* |
Q2 Holdings Inc. |
1,482,961 |
96,452 |
|
*,1 |
D-Wave Quantum Inc. |
5,424,394 |
93,300 |
|
Dolby Laboratories Inc. Class A |
1,511,160 |
93,027 | |
|
*,1 |
Terawulf Inc. |
6,129,404 |
92,738 |
|
* |
CCC Intelligent Solutions Holdings Inc. |
12,430,966 |
92,735 |
|
* |
MARA Holdings Inc. |
7,881,344 |
84,882 |
|
*,1 |
Cipher Digital Inc. |
5,451,958 |
84,505 |
|
* |
Core Scientific Inc. |
5,042,113 |
82,186 |
|
* |
SPS Commerce Inc. |
955,595 |
81,608 |
|
Clear Secure Inc. Class A |
1,845,020 |
81,458 | |
|
Pegasystems Inc. |
2,196,306 |
80,846 | |
|
* |
Agilysys Inc. |
660,190 |
76,853 |
|
*,1 |
Cleanspark Inc. |
6,501,857 |
75,552 |
|
Adeia Inc. |
2,729,540 |
68,866 | |
|
* |
Alarm.com Holdings Inc. |
1,188,944 |
68,436 |
|
* |
Freshworks Inc. Class A |
4,800,761 |
66,827 |
|
* |
Life360 Inc. |
1,550,638 |
66,460 |
|
* |
Braze Inc. Class A |
1,849,302 |
62,950 |
|
* |
Teradata Corp. |
2,147,836 |
62,287 |
|
* |
Five9 Inc. |
1,752,659 |
60,572 |
|
* |
Intapp Inc. |
1,367,338 |
59,301 |
|
*,1 |
SoundHound AI Inc. Class A |
8,238,206 |
58,986 |
|
* |
LiveRamp Holdings Inc. |
1,557,908 |
58,764 |
|
* |
nCino Inc. |
2,591,791 |
58,574 |
|
* |
Klaviyo Inc. Class A |
2,579,139 |
53,079 |
|
* |
Progress Software Corp. |
1,078,088 |
49,883 |
|
A10 Networks Inc. |
1,778,334 |
45,152 | |
|
* |
Blackbaud Inc. |
932,034 |
44,794 |
|
* |
AvePoint Inc. |
3,068,504 |
42,714 |
|
* |
BlackLine Inc. |
1,079,385 |
35,857 |
|
* |
Appian Corp. Class A |
806,599 |
34,643 |
4
Information Technology Index Fund
|
Shares |
Market Value• ($000) | ||
|
* |
C3.ai Inc. Class A |
3,128,037 |
33,845 |
|
* |
Amplitude Inc. Class A |
2,236,056 |
31,528 |
|
* |
NextNav Inc. |
1,832,109 |
29,076 |
|
*,1 |
Alkami Technology Inc. |
1,406,567 |
28,694 |
|
*,1 |
NCR Voyix Corp. |
3,292,276 |
27,589 |
|
* |
PagerDuty Inc. |
1,875,171 |
26,515 |
|
* |
Digital Turbine Inc. |
2,455,780 |
26,424 |
|
* |
Vertex Inc. Class A |
1,842,112 |
26,084 |
|
*,1 |
Pagaya Technologies Ltd. Class A |
1,189,448 |
25,859 |
|
* |
Red Violet Inc. |
324,755 |
23,759 |
|
* |
Sprinklr Inc. Class A |
2,886,327 |
23,697 |
|
* |
Asana Inc. Class A |
2,154,352 |
22,104 |
|
* |
Mitek Systems Inc. |
1,157,326 |
21,364 |
|
* |
Daily Journal Corp. |
32,960 |
20,532 |
|
* |
Rapid7 Inc. |
1,453,465 |
19,564 |
|
* |
Consensus Cloud Solutions Inc. |
471,486 |
18,034 |
|
* |
PAR Technology Corp. |
921,516 |
17,325 |
|
* |
Netskope Inc. Class A |
1,081,446 |
16,557 |
|
OneSpan Inc. |
916,690 |
15,144 | |
|
* |
Sprout Social Inc. Class A |
1,303,841 |
14,838 |
|
* |
Yext Inc. |
1,712,578 |
11,594 |
|
* |
Weave Communications Inc. |
1,510,834 |
11,044 |
|
* |
Cerence Inc. |
1,035,528 |
8,740 |
|
* |
I3 Verticals Inc. Class A |
475,232 |
7,627 |
|
* |
N-able Inc. |
1,732,553 |
6,896 |
|
* |
Rimini Street Inc. |
1,216,111 |
6,822 |
|
* |
Blend Labs Inc. Class A |
4,236,745 |
6,567 |
|
* |
Xperi Inc. |
1,075,475 |
6,388 |
|
* |
8x8 Inc. |
3,086,251 |
5,802 |
|
* |
Expensify Inc. Class A |
1,480,198 |
3,730 |
|
* |
Domo Inc. Class B |
833,755 |
3,152 |
|
* |
CS Disco Inc. |
607,727 |
2,662 |
|
*,1 |
Digimarc Corp. |
345,731 |
2,067 |
|
*,1 |
Exodus Movement Inc. Class A |
101,038 |
768 |
|
*,1 |
IREN Ltd. |
10,424 |
387 |
|
BitMine Immersion Technologies Inc. |
9,066 |
230 | |
|
* |
Via Transportation Inc. Class A |
7,032 |
196 |
|
* |
ServiceTitan Inc. Class A |
1,931 |
189 |
|
* |
Figma Inc. Class A |
6,855 |
188 |
|
* |
Thryv Holdings Inc. |
87,868 |
168 |
|
* |
Arteris Inc. |
7,396 |
162 |
|
*,1 |
Veritone Inc. |
190,100 |
151 |
|
44,247,757 | |||
|
Technology Hardware, Storage & Peripherals (19.7%) | |||
|
Apple Inc. |
85,045,002 |
26,946,509 | |
|
* |
Sandisk Corp. |
995,560 |
1,559,744 |
|
Seagate Technology Holdings plc |
1,518,629 |
1,258,002 | |
|
Western Digital Corp. |
2,407,011 |
1,084,479 | |
|
Dell Technologies Inc. Class C |
2,136,123 |
974,093 | |
|
Hewlett Packard Enterprise Co. |
10,020,894 |
523,491 | |
|
NetApp Inc. (XNGS) |
1,649,694 |
305,672 | |
|
* |
Everpure Inc. Class A |
2,700,764 |
251,036 |
|
HP Inc. |
8,348,731 |
250,629 | |
|
* |
Super Micro Computer Inc. (XNGS) |
5,633,849 |
210,030 |
|
1 |
GPGI Inc. Class A |
3,860,970 |
51,042 |
|
*,1 |
Quantum Computing Inc. |
5,071,330 |
41,737 |
|
* |
Diebold Nixdorf Inc. |
369,272 |
25,051 |
|
* |
Corsair Gaming Inc. |
1,200,672 |
14,588 |
|
* |
Eastman Kodak Co. |
1,325,808 |
11,906 |
|
1 |
Xerox Holdings Corp. |
2,921,336 |
9,436 |
|
* |
CPI Card Group Inc. |
150,731 |
4,367 |
|
33,521,812 | |||
|
Total Common Stocks (Cost $93,443,532) |
170,119,045 | ||
5
Information Technology Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.3%) | |||
|
Money Market Fund (0.3%) | |||
|
2,3 |
Vanguard Market Liquidity Fund, 3.731% (Cost $432,259) |
4,323,271 |
432,284 |
|
Total Investments (100.2%) (Cost $93,875,791) |
170,551,329 | ||
|
Other Assets and Liabilities—Net (-0.2%) |
(304,322) | ||
|
Net Assets (100.0%) |
170,247,007 | ||
|
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 $328,946. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
3 |
Collateral of $353,187 was received for securities on loan, of which $352,947 is held in Vanguard Market Liquidity Fund and $240 is held in cash. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
E-mini NASDAQ 100 Index |
September 2026 |
171 |
100,934 |
(377) |
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
IonQ Inc. |
8/31/2027 |
BANA |
18,923 |
(3.380 ) |
— |
(1,244) |
|
Strategy Inc. |
8/31/2027 |
BANA |
17,122 |
(3.630 ) |
815 |
— |
|
815 |
(1,244) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Information Technology Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $93,443,532) |
170,119,045 |
|
Affiliated Issuers (Cost $432,259) |
432,284 |
|
Total Investments in Securities |
170,551,329 |
|
Investment in Vanguard |
3,437 |
|
Cash Collateral Pledged—Futures Contracts |
8,159 |
|
Cash Collateral Pledged—Over-the-Counter Swap Contracts |
1,230 |
|
Receivables for Investment Securities Sold |
1,124,216 |
|
Receivables for Accrued Income |
85,948 |
|
Receivables for Capital Shares Issued |
16,314 |
|
Variation Margin Receivable—Futures Contracts |
78 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
815 |
|
Total Assets |
171,791,526 |
|
Liabilities |
|
|
Due to Custodian |
25,617 |
|
Payables for Investment Securities Purchased |
1,126,787 |
|
Collateral for Securities on Loan |
353,187 |
|
Payables for Capital Shares Redeemed |
30,932 |
|
Payables to Vanguard |
6,678 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
1,244 |
|
Other Liabilities |
74 |
|
Total Liabilities |
1,544,519 |
|
Net Assets |
170,247,007 |
|
1 Includes $328,946 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
98,679,468 |
|
Total Distributable Earnings (Loss) |
71,567,539 |
|
Net Assets |
170,247,007 |
|
ETF Shares—Net Assets2 |
|
|
Applicable to 1,224,961,969 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
147,596,806 |
|
Net Asset Value Per Share—ETF Shares |
$120.49 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 45,890,791 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
22,650,201 |
|
Net Asset Value Per Share—Admiral Shares |
$493.57 |
|
2 Shares outstanding and Net Asset Value Per Share adjusted to reflect an 8-for-1 share split. See Notes to Financial Statements for further details. |
|
See accompanying Notes, which are an integral part of the Financial Statements.
7
Information Technology Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends1 |
761,870 |
|
Interest2 |
4,101 |
|
Securities Lending—Net |
7,875 |
|
Total Income |
773,846 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
1,434 |
|
Management and Administrative—ETF Shares3 |
102,186 |
|
Management and Administrative—Admiral Shares3 |
16,012 |
|
Marketing and Distribution—ETF Shares |
4,281 |
|
Marketing and Distribution—Admiral Shares |
924 |
|
Custodian Fees |
295 |
|
Auditing Fees |
35 |
|
Accounting Fees3 |
95 |
|
Shareholders’ Reports—ETF Shares3 |
1,322 |
|
Shareholders’ Reports—Admiral Shares3 |
65 |
|
Trustees’ Fees and Expenses |
76 |
|
Other Expenses |
87 |
|
Total Expenses |
126,812 |
|
Net Investment Income |
647,034 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2,4 |
9,766,577 |
|
Futures Contracts |
9,415 |
|
Swap Contracts |
(18,411 ) |
|
Realized Net Gain (Loss) |
9,757,581 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
36,545,701 |
|
Futures Contracts |
12 |
|
Swap Contracts |
(423 ) |
|
Change in Unrealized Appreciation (Depreciation) |
36,545,290 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
46,949,905 |
|
1 |
Dividends are net of foreign withholding taxes of $1,193. |
|
2 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,862, $36, and ($2), respectively. Purchases and sales are for temporary cash investment purposes. |
|
3 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
4 |
Includes $11,172,800 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Information Technology Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
647,034 |
496,193 |
|
Realized Net Gain (Loss) |
9,757,581 |
5,810,773 |
|
Change in Unrealized Appreciation (Depreciation) |
36,545,290 |
14,142,063 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
46,949,905 |
20,449,029 |
|
Distributions |
||
|
ETF Shares |
(519,503 ) |
(426,890 ) |
|
Admiral Shares |
(82,106 ) |
(72,703 ) |
|
Total Distributions |
(601,609 ) |
(499,593 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
7,017,715 |
7,921,965 |
|
Admiral Shares |
(167,815 ) |
533,456 |
|
Net Increase (Decrease) from Capital Share Transactions |
6,849,900 |
8,455,421 |
|
Total Increase (Decrease) |
53,198,196 |
28,404,857 |
|
Net Assets |
||
|
Beginning of Period |
117,048,811 |
88,643,954 |
|
End of Period |
170,247,007 |
117,048,811 |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Information Technology Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period1 |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$87.08 |
$71.73 |
$55.60 |
$43.65 |
$53.31 |
|
Investment Operations |
|||||
|
Net Investment Income2 |
.465 |
.384 |
.380 |
.386 |
.375 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
33.378 |
15.357 |
16.212 |
11.949 |
(9.662) |
|
Total from Investment Operations |
33.843 |
15.741 |
16.592 |
12.335 |
(9.287) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.433) |
(.391) |
(.462) |
(.385) |
(.373) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(.433) |
(.391) |
(.462) |
(.385) |
(.373) |
|
Net Asset Value, End of Period |
$120.49 |
$87.08 |
$71.73 |
$55.60 |
$43.65 |
|
Total Return |
38.99% |
22.02% |
29.98% |
28.47% |
-17.50% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$147,597 |
$100,504 |
$75,456 |
$53,653 |
$43,558 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10%3 |
|
Ratio of Net Investment Income to Average Net Assets |
0.46% |
0.50% |
0.60% |
0.83% |
0.76% |
|
Portfolio Turnover Rate4 |
9% |
8% |
13% |
15% |
6% |
|
1 |
Adjusted to reflect an 8-for-1 share split. See Notes to Financial Statements for further details. |
|
2 |
Calculated based on average shares outstanding. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
10
Information Technology Index Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$356.70 |
$293.83 |
$227.76 |
$178.82 |
$218.38 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.896 |
1.572 |
1.550 |
1.591 |
1.538 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
136.749 |
62.897 |
66.415 |
48.931 |
(39.572) |
|
Total from Investment Operations |
138.645 |
64.469 |
67.965 |
50.522 |
(38.034) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.775) |
(1.599) |
(1.895) |
(1.582) |
(1.526) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(1.775) |
(1.599) |
(1.895) |
(1.582) |
(1.526) |
|
Net Asset Value, End of Period |
$493.57 |
$356.70 |
$293.83 |
$227.76 |
$178.82 |
|
Total Return2 |
38.99% |
22.02% |
29.98% |
28.47% |
-17.50% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$22,650 |
$16,545 |
$13,188 |
$8,783 |
$5,994 |
|
Ratio of Total Expenses to Average Net Assets |
0.09% |
0.09% |
0.10%3 |
0.10%3 |
0.10%3 |
|
Ratio of Net Investment Income to Average Net Assets |
0.46% |
0.50% |
0.60% |
0.83% |
0.75% |
|
Portfolio Turnover Rate4 |
9% |
8% |
13% |
15% |
6% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
|
3 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
|
4 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
11
Information Technology Index Fund
Notes to Financial Statements
Vanguard Information Technology Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker. In February 2026, the board of trustees approved an 8-for-1 share split of the fund’s ETF share class, which occurred after the close of trading on April 20, 2026. Each ETF shareholder who owns shares as of the close of trading on that date received seven additional shares for every share held. Effective April 21, 2026, the ETF shares began trading at the new split-adjusted price. The share split had no effect on fund net assets, but decreased the net asset value per share. Additionally, the share split had no effect on total return.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
12
Information Technology Index Fund
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $3,437,000, representing less than 0.01% of the fund’s net assets and 1.37% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
13
Information Technology Index Fund
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
170,119,045 |
— |
— |
170,119,045 |
|
Temporary Cash Investments |
432,284 |
— |
— |
432,284 |
|
Total |
170,551,329 |
— |
— |
170,551,329 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
815 |
— |
815 |
|
Liabilities |
||||
|
Futures Contracts1 |
(377) |
— |
— |
(377) |
|
Swap Contracts |
— |
(1,244) |
— |
(1,244) |
|
Total |
(377) |
(1,244) |
— |
(1,621) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
11,165,303 |
|
Total Distributable Earnings (Loss) |
(11,165,303) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
61,980 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
76,572,093 |
|
Capital Loss Carryforwards |
(5,066,534) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
71,567,539 |
14
Information Technology Index Fund
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
601,609 |
499,593 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
601,609 |
499,593 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
93,979,236 |
|
Gross Unrealized Appreciation |
78,885,581 |
|
Gross Unrealized Depreciation |
(2,313,488) |
|
Net Unrealized Appreciation (Depreciation) |
76,572,093 |
F.
During the year ended August 31, 2026, the fund purchased $12,395,346,000 of investment securities and sold $12,146,951,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $22,370,844,000 and $15,715,060,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $64,186,000 and sales were $67,400,000, resulting in net realized loss of $11,170,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares1 |
||||
|
Issued |
22,851,188 |
224,181 |
17,520,596 |
223,464 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(15,833,473) |
(153,400) |
(9,598,631) |
(121,200) |
|
Net Increase (Decrease)—ETF Shares |
7,017,715 |
70,781 |
7,921,965 |
102,264 |
|
Admiral Shares |
||||
|
Issued |
3,627,329 |
8,678 |
3,320,979 |
10,548 |
|
Issued in Lieu of Cash Distributions |
74,528 |
187 |
66,171 |
213 |
|
Redeemed |
(3,869,672) |
(9,357) |
(2,853,694) |
(9,259) |
|
Net Increase (Decrease)—Admiral Shares |
(167,815) |
(492) |
533,456 |
1,502 |
|
1 |
Shares adjusted to reflect an 8-for-1 share split. |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
15
Information Technology Index Fund
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
16
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Information Technology Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Information Technology Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
17
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $510,980,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $2,003,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q54870 102026
18
Financial Statements
For the year ended August 31, 2026
Vanguard International Growth Fund
Contents
|
1 | |
|
15 | |
|
16 | |
International Growth Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (97.6%) | |||
|
Australia (0.5%) | |||
|
WiseTech Global Ltd. |
7,877,575 |
227,075 | |
|
Austria (0.6%) | |||
|
Erste Group Bank AG |
1,986,931 |
279,270 | |
|
Belgium (1.1%) | |||
|
* |
Argenx SE |
431,706 |
443,160 |
|
UCB SA |
136,469 |
34,162 | |
|
477,322 | |||
|
Brazil (1.6%) | |||
|
* |
NU Holdings Ltd. Class A |
43,670,885 |
635,411 |
|
Raia Drogasil SA |
21,463,917 |
81,191 | |
|
716,602 | |||
|
Canada (2.9%) | |||
|
* |
Shopify Inc. Class A (XTSE) |
3,265,522 |
481,240 |
|
Royal Bank of Canada |
2,097,642 |
428,927 | |
|
Toronto-Dominion Bank |
2,456,258 |
297,154 | |
|
Kinross Gold Corp. |
3,648,157 |
111,926 | |
|
1,319,247 | |||
|
China (8.0%) | |||
|
Tencent Holdings Ltd. |
14,715,300 |
845,176 | |
|
BYD Co. Ltd. Class H |
62,632,000 |
691,322 | |
|
Contemporary Amperex Technology Co. Ltd. Class A (XSHE) |
9,022,800 |
487,580 | |
|
*,1 |
Meituan Class B |
29,033,368 |
290,459 |
|
* |
PDD Holdings Inc. ADR |
3,307,551 |
277,834 |
|
Contemporary Amperex Technology Co. Ltd. Class A |
4,340,959 |
234,579 | |
|
*,1 |
Wuxi Biologics Cayman Inc. |
35,772,000 |
221,860 |
|
*,1 |
Innovent Biologics Inc. |
11,778,500 |
155,357 |
|
Shenzhen Inovance Technology Co. Ltd. Class A |
16,759,278 |
154,144 | |
|
Tencent Music Entertainment Group ADR |
13,399,931 |
110,817 | |
|
*,1 |
Akeso Inc. |
9,318,000 |
106,745 |
|
3,575,873 | |||
|
Denmark (3.4%) | |||
|
DSV A/S |
2,843,568 |
597,508 | |
|
Vestas Wind Systems A/S |
9,586,014 |
317,879 | |
|
Novo Nordisk A/S Class B |
4,836,172 |
219,020 | |
|
* |
Genmab A/S |
615,416 |
203,377 |
|
Ambu A/S Class B |
13,794,715 |
152,159 | |
|
* |
Zealand Pharma A/S |
974,798 |
45,352 |
|
1,535,295 | |||
|
France (6.6%) | |||
|
L'Oreal SA (XPAR) |
1,465,941 |
652,720 | |
|
Air Liquide SA (XPAR) |
2,418,056 |
475,690 | |
|
Hermes International SCA |
236,720 |
433,057 | |
|
Schneider Electric SE |
1,019,921 |
349,099 | |
|
TotalEnergies SE (TQEX) |
3,901,855 |
343,808 | |
|
LVMH Moet Hennessy Louis Vuitton SE |
483,408 |
253,437 | |
|
Legrand SA |
1,521,718 |
241,436 | |
|
Safran SA |
298,993 |
116,858 | |
|
* |
SOITEC |
785,268 |
105,110 |
|
2,971,215 | |||
|
Germany (2.8%) | |||
|
SAP SE |
1,749,020 |
384,942 | |
|
Infineon Technologies AG |
3,608,723 |
235,242 | |
|
2 |
Beiersdorf AG |
2,228,721 |
204,051 |
|
Bayer AG (Registered) |
2,884,764 |
164,193 | |
|
Bayerische Motoren Werke AG (XETR) |
2,137,993 |
153,391 | |
1
International Growth Fund
|
Shares |
Market Value• ($000) | ||
|
Siemens AG (Registered) |
366,406 |
121,467 | |
|
1,263,286 | |||
|
Hong Kong (1.4%) | |||
|
AIA Group Ltd. |
64,148,200 |
620,159 | |
|
India (1.7%) | |||
|
HDFC Bank Ltd. |
53,298,325 |
395,953 | |
|
Reliance Industries Ltd. |
13,719,637 |
183,844 | |
|
*,2 |
MakeMyTrip Ltd. |
2,828,169 |
164,769 |
|
*,3,4 |
ANI Technologies Private Ltd. PP (Acquired 12/1/2015, Cost $5,969) |
166,185 |
669 |
|
745,235 | |||
|
Indonesia (0.3%) | |||
|
Bank Central Asia Tbk PT |
410,518,900 |
149,859 | |
|
Israel (0.2%) | |||
|
*,2 |
Wix.com Ltd. |
1,145,155 |
101,060 |
|
Italy (2.8%) | |||
|
Ferrari NV |
1,235,119 |
522,914 | |
|
FinecoBank Banca Fineco SpA |
10,558,077 |
290,644 | |
|
Prysmian SpA |
1,756,408 |
245,505 | |
|
Brunello Cucinelli SpA |
1,745,848 |
178,050 | |
|
1,237,113 | |||
|
Japan (12.8%) | |||
|
Keyence Corp. |
1,802,600 |
939,238 | |
|
Advantest Corp. |
3,160,500 |
661,453 | |
|
Recruit Holdings Co. Ltd. |
5,507,400 |
623,733 | |
|
MS&AD Insurance Group Holdings Inc. |
13,134,400 |
417,178 | |
|
Mitsubishi UFJ Financial Group Inc. |
16,664,700 |
379,932 | |
|
Unicharm Corp. |
55,001,100 |
343,614 | |
|
Disco Corp. |
824,400 |
295,955 | |
|
Lasertec Corp. |
1,195,000 |
249,710 | |
|
ITOCHU Corp. |
16,909,400 |
223,027 | |
|
KDDI Corp. |
11,000,600 |
203,212 | |
|
Terumo Corp. |
11,616,400 |
183,064 | |
|
Daikin Industries Ltd. |
1,289,000 |
166,025 | |
|
Hoya Corp. |
1,046,800 |
160,292 | |
|
SBI Holdings Inc. |
7,672,900 |
158,516 | |
|
Mitsubishi Electric Corp. |
4,378,500 |
151,613 | |
|
Fast Retailing Co. Ltd. |
276,100 |
124,576 | |
|
SMC Corp. |
283,300 |
124,182 | |
|
Sony Group Corp. |
4,990,700 |
123,325 | |
|
SoftBank Group Corp. |
3,078,700 |
99,179 | |
|
Shimano Inc. |
719,200 |
89,546 | |
|
5,717,370 | |||
|
Netherlands (6.4%) | |||
|
ASML Holding NV |
910,488 |
1,544,217 | |
|
*,1 |
Adyen NV |
658,461 |
797,570 |
|
EXOR NV |
3,787,422 |
321,947 | |
|
Heineken NV |
2,537,314 |
214,217 | |
|
2,877,951 | |||
|
Norway (0.5%) | |||
|
DNB Bank ASA |
6,982,590 |
237,806 | |
|
Singapore (3.7%) | |||
|
* |
Sea Ltd. ADR |
10,189,052 |
1,156,254 |
|
DBS Group Holdings Ltd. |
8,237,600 |
500,940 | |
|
1,657,194 | |||
|
South Korea (4.2%) | |||
|
SK Hynix Inc. (XKRX) |
537,640 |
650,699 | |
|
Samsung Electronics Co. Ltd. (XKRX) |
3,254,664 |
614,425 | |
|
* |
Coupang Inc. |
21,648,949 |
347,682 |
|
KB Financial Group Inc. |
1,258,302 |
157,846 | |
|
Kia Corp. |
694,278 |
66,226 | |
|
Hanwha Aerospace Co. Ltd. |
63,220 |
50,759 | |
|
1,887,637 | |||
2
International Growth Fund
|
Shares |
Market Value• ($000) | ||
|
Spain (1.5%) | |||
|
Banco Bilbao Vizcaya Argentaria SA |
13,011,763 |
376,462 | |
|
Iberdrola SA |
6,481,729 |
150,906 | |
|
Industria de Diseno Textil SA |
2,168,479 |
145,768 | |
|
673,136 | |||
|
Sweden (5.1%) | |||
|
* |
Spotify Technology SA |
2,246,714 |
1,221,359 |
|
Atlas Copco AB Class A |
40,405,130 |
867,172 | |
|
Svenska Handelsbanken AB Class A |
6,813,213 |
104,997 | |
|
* |
Kinnevik AB Class B |
10,603,142 |
67,722 |
|
2,261,250 | |||
|
Switzerland (7.4%) | |||
|
Roche Holding AG |
1,904,870 |
830,373 | |
|
Lonza Group AG (Registered) |
1,027,149 |
732,002 | |
|
Galderma Group AG |
2,089,647 |
433,293 | |
|
Sika AG (Registered) |
1,646,154 |
390,460 | |
|
Cie Financiere Richemont SA Class A (Registered) |
1,317,031 |
313,450 | |
|
Chocoladefabriken Lindt & Spruengli AG |
16,741 |
181,148 | |
|
Alcon AG |
2,258,155 |
163,497 | |
|
Belimo Holding AG (Registered) |
144,632 |
152,853 | |
|
Temenos AG (Registered) |
1,318,670 |
121,248 | |
|
3,318,324 | |||
|
Taiwan (7.8%) | |||
|
Taiwan Semiconductor Manufacturing Co. Ltd. |
42,606,000 |
3,201,918 | |
|
Hon Hai Precision Industry Co. Ltd. |
22,943,000 |
180,717 | |
|
MediaTek Inc. |
709,000 |
87,721 | |
|
3,470,356 | |||
|
United Kingdom (7.4%) | |||
|
RELX plc |
15,244,815 |
547,003 | |
|
* |
Wise Group plc Class A |
38,601,551 |
503,740 |
|
Shell plc (XETR) |
9,420,886 |
432,020 | |
|
London Stock Exchange Group plc |
2,393,923 |
290,164 | |
|
AstraZeneca plc |
1,780,098 |
286,984 | |
|
Haleon plc |
53,533,001 |
266,651 | |
|
HSBC Holdings plc |
11,764,539 |
240,978 | |
|
Reckitt Benckiser Group plc (XLON) |
3,033,115 |
209,471 | |
|
Sage Group plc |
10,630,299 |
155,392 | |
|
Rio Tinto plc |
1,451,282 |
148,750 | |
|
BAE Systems plc |
4,153,427 |
113,952 | |
|
Shell plc |
2,264,559 |
104,147 | |
|
*,3,4,5 |
Brandtech Group LLC PP Class A (Acquired 9/23/2015, Cost $44,800) |
33,633,606 |
15,034 |
|
3,314,286 | |||
|
United States (6.9%) | |||
|
* |
MercadoLibre Inc. |
701,990 |
1,359,193 |
|
* |
Moderna Inc. |
4,297,329 |
603,087 |
|
NVIDIA Corp. |
2,180,775 |
481,471 | |
|
* |
Atlassian Corp. Ltd. Class A |
2,199,292 |
427,037 |
|
* |
ARM Holdings plc ADR |
532,374 |
128,787 |
|
Booking Holdings Inc. |
420,357 |
83,689 | |
|
3,083,264 | |||
|
Total Common Stocks (Cost $27,029,583) |
43,717,185 | ||
|
Preferred Stock (0.9%) | |||
|
Sartorius AG Preference Shares (Cost $615,887) |
1,344,590 |
387,651 | |
3
International Growth Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (1.8%) | |||
|
Money Market Fund (1.8%) | |||
|
6,7 |
Vanguard Market Liquidity Fund, 3.731% (Cost $795,291) |
7,953,544 |
795,275 |
|
Total Investments (100.3%) (Cost $28,440,761) |
44,900,111 | ||
|
Other Assets and Liabilities—Net (-0.3%) |
(134,584) | ||
|
Net Assets (100%) |
44,765,527 | ||
|
Cost is in $000. | |||
|
• See Note A in Notes to Financial Statements. |
|
* Non-income-producing security. |
|
1Security 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 August 31, 2026, the aggregate value was $1,571,991, representing 3.5% of net assets. |
|
2Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $197,003. |
|
3Restricted securities totaling $15,703, representing 0.0% of net assets. |
|
4Security value determined using significant unobservable inputs. |
|
5Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. |
|
6Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
7Collateral of $211,750 was received for securities on loan. |
|
ADR—American Depositary Receipt. | |
|
PP—Private Placement. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
MSCI EAFE Index |
September 2026 |
1,735 |
280,098 |
(853) |
|
MSCI Emerging Markets Index |
September 2026 |
1,540 |
131,755 |
1,703 |
|
850 | ||||
|
Forward Currency Contracts | |||||||
|
Counterparty |
Settlement
Date |
Contract Amount (000) |
Appreciation
($000) |
Depreciation
($000) | |||
|
Receive |
Deliver | ||||||
|
HSBC Bank plc |
9/16/2026 |
SEK |
85,042 |
USD |
8,915 |
— |
(28) |
|
JPMorgan Chase Bank, N.A. |
9/16/2026 |
USD |
11,050 |
EUR |
9,550 |
— |
(50) |
|
Bank of Montreal |
9/16/2026 |
USD |
20,232 |
SEK |
190,539 |
320 |
— |
|
320 |
(78) | ||||||
|
EUR—euro. |
|
SEK—Swedish krona. |
|
USD—U.S. dollar. |
At August 31, 2026, the counterparties had deposited in segregated accounts securities with a value of $549 in connection with open forward currency contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
4
International Growth Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value1 |
|
|
Unaffiliated Issuers (Cost $27,600,670) |
44,089,802 |
|
Affiliated Issuers (Cost $840,091) |
810,309 |
|
Total Investments in Securities |
44,900,111 |
|
Investment in Vanguard |
933 |
|
Cash Collateral Pledged—Futures Contracts |
17,859 |
|
Foreign Currency, at Value (Cost $30,073) |
25,639 |
|
Receivables for Investment Securities Sold |
57,764 |
|
Receivables for Accrued Income |
113,558 |
|
Receivables for Capital Shares Issued |
8,889 |
|
Unrealized Appreciation—Forward Currency Contracts |
320 |
|
Other Assets |
1,269 |
|
Total Assets |
45,126,342 |
|
Liabilities |
|
|
Due to Custodian |
322 |
|
Payables for Investment Securities Purchased |
85,539 |
|
Collateral for Securities on Loan |
211,750 |
|
Payables to Investment Advisor |
10,584 |
|
Payables for Capital Shares Redeemed |
40,172 |
|
Payables to Vanguard |
4,385 |
|
Variation Margin Payable—Futures Contracts |
1,065 |
|
Unrealized Depreciation—Forward Currency Contracts |
78 |
|
Deferred Foreign Capital Gains Taxes |
6,920 |
|
Total Liabilities |
360,815 |
|
Net Assets |
44,765,527 |
|
1 Includes $197,003 of securities on loan. |
|
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
24,168,711 |
|
Total Distributable Earnings (Loss) |
20,596,816 |
|
Net Assets |
44,765,527 |
|
Investor Shares—Net Assets |
|
|
Applicable to 144,837,729 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
5,763,368 |
|
Net Asset Value Per Share—Investor Shares |
$39.79 |
|
Admiral™ Shares—Net Assets |
|
|
Applicable to 308,146,637 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
39,002,159 |
|
Net Asset Value Per Share—Admiral Shares |
$126.57 |
See accompanying Notes, which are an integral part of the Financial Statements.
5
International Growth Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends—Unaffiliated Issuers1 |
522,819 |
|
Interest—Unaffiliated Issuers |
747 |
|
Interest—Affiliated Issuers |
23,750 |
|
Securities Lending—Net |
979 |
|
Total Income |
548,295 |
|
Expenses |
|
|
Investment Advisory Fees—Note B |
|
|
Basic Fee |
62,821 |
|
Performance Adjustment |
(19,017 ) |
|
The Vanguard Group—Note C |
|
|
Management and Administrative—Investor Shares2 |
14,137 |
|
Management and Administrative—Admiral Shares2 |
50,307 |
|
Marketing and Distribution—Investor Shares |
308 |
|
Marketing and Distribution—Admiral Shares |
1,476 |
|
Custodian Fees |
2,113 |
|
Auditing Fees |
49 |
|
Accounting Fees2 |
106 |
|
Shareholders’ Reports—Investor Shares2 |
122 |
|
Shareholders’ Reports—Admiral Shares2 |
276 |
|
Trustees’ Fees and Expenses |
24 |
|
Other Expenses |
601 |
|
Total Expenses |
113,323 |
|
Net Investment Income |
434,972 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold—Unaffiliated Issuers |
5,020,343 |
|
Investment Securities Sold—Affiliated Issuers |
5 |
|
Futures Contracts |
80,986 |
|
Forward Currency Contracts |
436 |
|
Foreign Currencies |
(2,023 ) |
|
Realized Net Gain (Loss) |
5,099,747 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities—Unaffiliated Issuers3 |
460,195 |
|
Investment Securities—Affiliated Issuers |
(56,970 ) |
|
Futures Contracts |
(10,416 ) |
|
Forward Currency Contracts |
579 |
|
Foreign Currencies |
(4,442 ) |
|
Change in Unrealized Appreciation (Depreciation) |
388,946 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
5,923,665 |
|
1 |
Dividends are net of foreign withholding taxes of $50,578. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($19,531). |
See accompanying Notes, which are an integral part of the Financial Statements.
6
International Growth Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
434,972 |
380,163 |
|
Realized Net Gain (Loss) |
5,099,747 |
1,964,996 |
|
Change in Unrealized Appreciation (Depreciation) |
388,946 |
3,542,248 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
5,923,665 |
5,887,407 |
|
Distributions |
||
|
Investor Shares |
(361,980 ) |
(576,699 ) |
|
Admiral Shares |
(2,534,728 ) |
(3,269,566 ) |
|
Total Distributions |
(2,896,708 ) |
(3,846,265 ) |
|
Capital Share Transactions |
||
|
Investor Shares |
(774,941 ) |
(947,711 ) |
|
Admiral Shares |
(2,970,743 ) |
(786,661 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
(3,745,684 ) |
(1,734,372 ) |
|
Total Increase (Decrease) |
(718,727 ) |
306,770 |
|
Net Assets |
||
|
Beginning of Period |
45,484,254 |
45,177,484 |
|
End of Period |
44,765,527 |
45,484,254 |
See accompanying Notes, which are an integral part of the Financial Statements.
7
International Growth Fund
Financial Highlights
|
Investor Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$37.27 |
$35.79 |
$31.27 |
$30.33 |
$54.50 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
.326 |
.260 |
.269 |
.313 |
.362 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
4.613 |
4.312 |
4.836 |
2.588 |
(18.463) |
|
Total from Investment Operations |
4.939 |
4.572 |
5.105 |
2.901 |
(18.101) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(.402) |
(.264) |
(.323) |
(.390) |
(.407) |
|
Distributions from Realized Capital Gains |
(2.017) |
(2.828) |
(.262) |
(1.571) |
(5.662) |
|
Total Distributions |
(2.419) |
(3.092) |
(.585) |
(1.961) |
(6.069) |
|
Net Asset Value, End of Period |
$39.79 |
$37.27 |
$35.79 |
$31.27 |
$30.33 |
|
Total Return2 |
14.19% |
14.14% |
16.57% |
9.82% |
-36.53% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$5,763 |
$6,137 |
$6,838 |
$6,340 |
$6,243 |
|
Ratio of Total Expenses to Average Net Assets3 |
0.36% |
0.38% |
0.37%4 |
0.42% |
0.45%5 |
|
Ratio of Net Investment Income to Average Net Assets |
0.87% |
0.74% |
0.83% |
1.02% |
0.91% |
|
Portfolio Turnover Rate |
25% |
23% |
20% |
14% |
15% |
|
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 |
Includes performance-based investment advisory fee increases (decreases) of (0.04%), (0.02%), (0.03%), 0.01%, and 0.04%. |
|
4 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.37%. |
|
5 |
The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.45%. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
International Growth Fund
Financial Highlights
|
Admiral Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$118.59 |
$113.87 |
$99.47 |
$96.50 |
$173.47 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
1.179 |
.977 |
.967 |
1.101 |
1.290 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
14.657 |
13.711 |
15.390 |
8.228 |
(58.729) |
|
Total from Investment Operations |
15.836 |
14.688 |
16.357 |
9.329 |
(57.439) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(1.436) |
(.969) |
(1.125) |
(1.358) |
(1.502) |
|
Distributions from Realized Capital Gains |
(6.420) |
(8.999) |
(.832) |
(5.001) |
(18.029) |
|
Total Distributions |
(7.856) |
(9.968) |
(1.957) |
(6.359) |
(19.531) |
|
Net Asset Value, End of Period |
$126.57 |
$118.59 |
$113.87 |
$99.47 |
$96.50 |
|
Total Return2 |
14.32% |
14.29% |
16.70% |
9.92% |
-36.46% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$39,002 |
$39,348 |
$38,339 |
$37,193 |
$36,435 |
|
Ratio of Total Expenses to Average Net Assets3 |
0.24% |
0.26% |
0.26%4 |
0.31% |
0.34%5 |
|
Ratio of Net Investment Income to Average Net Assets |
0.99% |
0.88% |
0.94% |
1.13% |
1.02% |
|
Portfolio Turnover Rate |
25% |
23% |
20% |
14% |
15% |
|
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 |
Includes performance-based investment advisory fee increases (decreases) of (0.04%), (0.02%), (0.03%), 0.01%, and 0.04%. |
|
4 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.26%. |
|
5 |
The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.34%. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
International Growth Fund
Notes to Financial Statements
Vanguard International Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. Risks associated with these types of forward currency contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on forward currency contracts.
During the year ended August 31, 2026, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
10
International Growth Fund
5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
7. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
8. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Taxes on foreign dividends and capital gains have been provided for in accordance with the applicable countries’ tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon applicable net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
The investment advisory firms Baillie Gifford Overseas Ltd. and Schroder Investment Management North America Inc. each provide investment advisory services to a portion of the fund. The basic fee for each advisor is calculated at an annual percentage rate of average net assets managed by the advisor. The basic fees of Baillie Gifford Overseas Ltd. and Schroder Investment Management North America Inc. are subject to quarterly adjustments based on performance relative to the MSCI All Country World Index ex USA for the preceding three years.
Vanguard, through its wholly owned subsidiary Vanguard Portfolio Management, LLC, manages the cash reserves of the fund as described below.
For the year ended August 31, 2026, the aggregate investment advisory fee paid to all advisors represented an effective annual basic rate of 0.14% of the fund’s average net assets, before a net decrease of $19,017,000 (0.04%) based on performance.
11
International Growth Fund
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, distribution and cash management 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.
From time to time, Vanguard and/or a fund’s board of trustees may adjust a fund’s fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $933,000, representing less than 0.01% of the fund’s net assets and 0.37% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks—North and South America |
5,119,113 |
— |
— |
5,119,113 |
|
Common Stocks—Other |
3,379,775 |
35,202,594 |
15,703 |
38,598,072 |
|
Preferred Stock |
— |
387,651 |
— |
387,651 |
|
Temporary Cash Investments |
795,275 |
— |
— |
795,275 |
|
Total |
9,294,163 |
35,590,245 |
15,703 |
44,900,111 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Futures Contracts1 |
1,703 |
— |
— |
1,703 |
|
Forward Currency Contracts |
— |
320 |
— |
320 |
|
Total |
1,703 |
320 |
— |
2,023 |
|
Liabilities |
||||
|
Futures Contracts1 |
(853) |
— |
— |
(853) |
|
Forward Currency Contracts |
— |
(78) |
— |
(78) |
|
Total |
(853) |
(78) |
— |
(931) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E.
At August 31, 2026, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
|
Statement of Assets and Liabilities |
Equity
Contracts
($000) |
Foreign
Exchange
Contracts
($000) |
Total
($000) |
|
Unrealized Appreciation—Futures Contracts1 |
1,703 |
— |
1,703 |
|
Unrealized Appreciation—Forward Currency Contracts |
— |
320 |
320 |
|
Total Assets |
1,703 |
320 |
2,023 |
|
Unrealized Depreciation—Futures Contracts1 |
(853) |
— |
(853) |
|
Unrealized Depreciation—Forward Currency Contracts |
— |
(78) |
(78) |
|
Total Liabilities |
(853) |
(78) |
(931) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
12
International Growth Fund
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the year ended August 31, 2026, were:
|
Realized Net Gain (Loss) on Derivatives |
Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
|
Futures Contracts |
80,986 |
— |
80,986 |
|
Forward Currency Contracts |
— |
436 |
436 |
|
Realized Net Gain (Loss) on Derivatives |
80,986 |
436 |
81,422 |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|||
|
Futures Contracts |
(10,416) |
— |
(10,416) |
|
Forward Currency Contracts |
— |
579 |
579 |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
(10,416) |
579 |
(9,837) |
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
353,267 |
|
Total Distributable Earnings (Loss) |
(353,267) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
773,402 |
|
Undistributed Long-Term Gains |
3,573,306 |
|
Net Unrealized Gains (Losses) |
16,255,022 |
|
Capital Loss Carryforwards |
— |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
(4,914) |
|
Total |
20,596,816 |
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
587,993 |
472,929 |
|
Long-Term Capital Gains |
2,308,715 |
3,373,336 |
|
Total |
2,896,708 |
3,846,265 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
28,638,388 |
|
Gross Unrealized Appreciation |
18,441,163 |
|
Gross Unrealized Depreciation |
(2,179,440) |
|
Net Unrealized Appreciation (Depreciation) |
16,261,723 |
G.
During the year ended August 31, 2026, the fund purchased $10,783,304,000 of investment securities and sold $16,914,280,000 of investment securities, other than temporary cash investments.
13
International Growth Fund
H.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
Investor Shares |
||||
|
Issued |
511,783 |
13,608 |
547,340 |
15,696 |
|
Issued in Lieu of Cash Distributions |
343,686 |
9,890 |
550,764 |
17,110 |
|
Redeemed |
(1,630,410) |
(43,295) |
(2,045,815) |
(59,239) |
|
Net Increase (Decrease)—Investor Shares |
(774,941) |
(19,797) |
(947,711) |
(26,433) |
|
Admiral Shares |
||||
|
Issued |
3,372,535 |
28,425 |
3,563,756 |
32,306 |
|
Issued in Lieu of Cash Distributions |
2,256,729 |
20,434 |
2,913,569 |
28,472 |
|
Redeemed |
(8,600,007) |
(72,515) |
(7,263,986) |
(65,658) |
|
Net Increase (Decrease)—Admiral Shares |
(2,970,743) |
(23,656) |
(786,661) |
(4,880) |
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 |
||||||||
|
Aug. 31,
2025
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) |
Aug. 31,
2026
Market
Value
($000) | |
|
Brandtech Group Class A |
71,976 |
— |
— |
— |
(56,942 ) |
— |
— |
15,034 |
|
Vanguard Market Liquidity Fund |
682,833 |
NA1 |
NA1 |
5 |
(28 ) |
23,750 |
— |
795,275 |
|
Total |
754,809 |
— |
— |
5 |
(56,970 ) |
23,750 |
— |
810,309 |
|
1 |
Not applicable—purchases and sales are for temporary cash investment purposes. |
J.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
K.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
L.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
14
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard International Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard International Growth Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, portfolio companies, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
15
For corporate shareholders, 0.5%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $447,624,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $12,319,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund for the fiscal year are qualified short-term capital gains.
The fund distributed $2,592,339,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.
The fund designates to shareholders foreign source income of $544,288,000 and foreign taxes paid of $32,576,000, or if subsequently determined to be different, the maximum amounts allowable by law. Form 1099-DIV reports calendar-year amounts that can be included on the income tax return of shareholders.
Q810 102026
16
Financial Statements
For the year ended August 31, 2026
Vanguard Morningstar Mega Cap Index Fund
(formerly Vanguard Mega Cap Index Fund)
Contents
|
1 | |
|
15 | |
|
16 | |
Morningstar Mega Cap Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.8%) | |||
|
Basic Materials (0.9%) | |||
|
Linde plc |
92,721 |
45,394 | |
|
Freeport-McMoRan Inc. |
287,880 |
21,804 | |
|
Ecolab Inc. |
50,648 |
14,344 | |
|
Newmont Corp. (XNYS) |
107,500 |
13,551 | |
|
Air Products & Chemicals Inc. |
22,416 |
6,937 | |
|
102,030 | |||
|
Consumer Discretionary (11.9%) | |||
|
* |
Amazon.com Inc. |
1,941,731 |
504,403 |
|
* |
Tesla Inc. |
564,940 |
207,870 |
|
Walmart Inc. |
879,327 |
92,215 | |
|
Costco Wholesale Corp. |
88,986 |
83,993 | |
|
* |
Netflix Inc. |
844,485 |
68,445 |
|
Home Depot Inc. |
200,070 |
65,589 | |
|
McDonald's Corp. |
142,336 |
37,511 | |
|
Walt Disney Co. |
348,693 |
37,502 | |
|
Booking Holdings Inc. |
155,446 |
30,948 | |
|
* |
Uber Technologies Inc. |
408,503 |
30,903 |
|
TJX Cos. Inc. |
222,073 |
29,738 | |
|
Starbucks Corp. |
228,538 |
24,282 | |
|
Lowe's Cos. Inc. |
112,438 |
23,016 | |
|
* |
O'Reilly Automotive Inc. |
165,718 |
14,716 |
|
* |
Airbnb Inc. Class A |
79,964 |
14,651 |
|
Marriott International Inc. Class A |
42,211 |
14,426 | |
|
Hilton Worldwide Holdings Inc. |
22,925 |
7,251 | |
|
NIKE Inc. Class B |
120,763 |
4,717 | |
|
1,292,176 | |||
|
Consumer Staples (3.1%) | |||
|
Procter & Gamble Co. |
467,361 |
67,824 | |
|
Coca-Cola Co. |
690,625 |
61,238 | |
|
Philip Morris International Inc. |
312,729 |
58,574 | |
|
PepsiCo Inc. |
273,794 |
38,424 | |
|
CVS Health Corp. |
255,949 |
24,036 | |
|
Altria Group Inc. |
334,797 |
22,927 | |
|
McKesson Corp. |
24,075 |
21,314 | |
|
Mondelez International Inc. Class A |
256,849 |
15,943 | |
|
Colgate-Palmolive Co. |
160,057 |
14,376 | |
|
* |
Monster Beverage Corp. |
275,767 |
12,663 |
|
337,319 | |||
|
Energy (2.5%) | |||
|
ExxonMobil Holdings Corp. |
831,281 |
133,795 | |
|
Chevron Corp. |
379,497 |
78,229 | |
|
ConocoPhillips |
244,533 |
32,398 | |
|
EOG Resources Inc. |
106,495 |
15,437 | |
|
Williams Cos. Inc. |
123,172 |
9,244 | |
|
Kinder Morgan Inc. |
190,433 |
6,140 | |
|
275,243 | |||
|
Financials (9.3%) | |||
|
JPMorgan Chase & Co. (XNYS) |
537,436 |
191,338 | |
|
* |
Berkshire Hathaway Inc. Class B |
347,912 |
175,358 |
|
Bank of America Corp. (XNYS) |
1,281,177 |
79,356 | |
|
Goldman Sachs Group Inc. (XNYS) |
55,152 |
56,580 | |
|
Wells Fargo & Co. |
613,722 |
53,020 | |
|
Morgan Stanley |
237,146 |
50,588 | |
|
Citigroup Inc. (XNYS) |
342,059 |
45,022 | |
|
Charles Schwab Corp. |
331,635 |
36,420 | |
|
Blackrock Inc. |
28,039 |
32,402 | |
|
Progressive Corp. |
117,003 |
25,516 | |
|
S&P Global Inc. |
57,758 |
25,173 | |
1
Morningstar Mega Cap Index Fund
|
Shares |
Market Value• ($000) | ||
|
Chubb Ltd. |
69,998 |
23,701 | |
|
Bank of New York Mellon Corp. |
137,468 |
22,171 | |
|
Blackstone Inc. |
148,711 |
21,301 | |
|
CME Group Inc. |
72,520 |
20,705 | |
|
PNC Financial Services Group Inc. |
80,461 |
19,281 | |
|
US Bancorp |
310,902 |
19,145 | |
|
Marsh & McLennan Cos. Inc. |
96,399 |
18,297 | |
|
Intercontinental Exchange Inc. |
113,063 |
18,169 | |
|
Moody's Corp. |
29,905 |
15,091 | |
|
KKR & Co. Inc. |
135,623 |
14,881 | |
|
* |
Berkshire Hathaway Inc. Class A |
16 |
12,106 |
|
Interactive Brokers Group Inc. Class A |
85,248 |
8,294 | |
|
Travelers Cos. Inc. |
21,388 |
7,827 | |
|
Aon plc Class A (XNYS) |
20,425 |
6,567 | |
|
Truist Financial Corp. |
125,462 |
6,220 | |
|
Apollo Global Management Inc. |
40,639 |
5,551 | |
|
1,010,080 | |||
|
Health Care (9.0%) | |||
|
Eli Lilly & Co. |
169,990 |
196,633 | |
|
Johnson & Johnson |
482,837 |
128,362 | |
|
AbbVie Inc. |
354,373 |
90,868 | |
|
Merck & Co. Inc. |
495,425 |
73,204 | |
|
UnitedHealth Group Inc. |
182,178 |
70,942 | |
|
Amgen Inc. |
108,101 |
46,471 | |
|
Thermo Fisher Scientific Inc. |
74,618 |
46,047 | |
|
Abbott Laboratories |
349,645 |
38,587 | |
|
Gilead Sciences Inc. |
249,224 |
36,471 | |
|
Pfizer Inc. |
1,143,430 |
32,542 | |
|
* |
Vertex Pharmaceuticals Inc. |
50,900 |
27,716 |
|
Bristol-Myers Squibb Co. |
409,293 |
27,345 | |
|
Danaher Corp. |
127,758 |
27,284 | |
|
* |
Intuitive Surgical Inc. |
71,065 |
26,782 |
|
Medtronic plc |
257,263 |
23,321 | |
|
Stryker Corp. |
69,166 |
22,396 | |
|
Elevance Health Inc. (XNYS) |
42,205 |
16,567 | |
|
Cigna Group |
52,912 |
14,608 | |
|
* |
Boston Scientific Corp. |
297,007 |
14,345 |
|
HCA Healthcare Inc. |
31,276 |
12,962 | |
|
Regeneron Pharmaceuticals Inc. |
10,373 |
8,289 | |
|
981,742 | |||
|
Industrials (8.9%) | |||
|
Visa Inc. Class A (XNYS) |
332,863 |
126,278 | |
|
Mastercard Inc. Class A |
158,335 |
93,308 | |
|
Caterpillar Inc. (XNYS) |
92,384 |
73,674 | |
|
General Electric Co. |
209,208 |
70,233 | |
|
RTX Corp. |
269,948 |
56,076 | |
|
GE Vernova Inc. |
53,891 |
48,423 | |
|
American Express Co. |
109,604 |
36,188 | |
|
Union Pacific Corp. |
119,179 |
35,834 | |
|
Deere & Co. |
51,470 |
33,708 | |
|
* |
Boeing Co. |
158,299 |
32,891 |
|
Eaton Corp. plc |
77,950 |
31,327 | |
|
Capital One Financial Corp. |
124,733 |
26,757 | |
|
Lockheed Martin Corp. |
46,239 |
25,951 | |
|
Parker-Hannifin Corp. |
25,283 |
24,763 | |
|
Accenture plc Class A |
122,828 |
23,308 | |
|
Automatic Data Processing Inc. |
80,029 |
22,901 | |
|
Trane Technologies plc |
44,301 |
19,687 | |
|
General Dynamics Corp. |
51,442 |
19,103 | |
|
CSX Corp. |
371,816 |
18,780 | |
|
3M Co. |
104,433 |
17,945 | |
|
Emerson Electric Co. |
112,098 |
17,088 | |
|
Sherwin-Williams Co. |
46,883 |
15,884 | |
|
United Parcel Service Inc. Class B (XNYS) |
149,454 |
15,578 | |
|
Northrop Grumman Corp. |
28,605 |
15,438 | |
|
Illinois Tool Works Inc. |
54,667 |
15,054 | |
|
Honeywell International Inc. |
63,580 |
13,576 | |
|
* |
Honeywell Aerospace Inc. |
63,580 |
10,053 |
|
Johnson Controls International plc |
61,443 |
8,494 | |
2
Morningstar Mega Cap Index Fund
|
Shares |
Market Value• ($000) | ||
|
Norfolk Southern Corp. |
22,620 |
7,754 | |
|
FedEx Corp. |
21,613 |
7,076 | |
|
Cintas Corp. |
34,244 |
6,910 | |
|
970,040 | |||
|
Real Estate (0.9%) | |||
|
Welltower Inc. |
141,660 |
33,466 | |
|
Prologis Inc. |
190,156 |
26,606 | |
|
Equinix Inc. |
19,774 |
20,698 | |
|
American Tower Corp. |
93,215 |
16,378 | |
|
97,148 | |||
|
Technology (50.1%) | |||
|
NVIDIA Corp. |
4,611,063 |
1,018,031 | |
|
Apple Inc. |
2,945,810 |
933,380 | |
|
Microsoft Corp. |
1,489,874 |
755,798 | |
|
Alphabet Inc. Class A |
1,177,677 |
399,645 | |
|
Broadcom Inc. |
949,637 |
351,689 | |
|
Alphabet Inc. Class C |
935,244 |
313,690 | |
|
Meta Platforms Inc. Class A |
440,450 |
252,087 | |
|
Micron Technology Inc. |
226,184 |
216,849 | |
|
* |
Advanced Micro Devices Inc. |
327,039 |
153,944 |
|
* |
Palantir Technologies Inc. Class A |
437,362 |
81,516 |
|
Lam Research Corp. |
250,824 |
75,621 | |
|
* |
Intel Corp. |
843,113 |
75,467 |
|
Applied Materials Inc. |
159,251 |
72,999 | |
|
* |
Palo Alto Networks Inc. |
163,618 |
62,523 |
|
Oracle Corp. |
346,093 |
51,609 | |
|
Texas Instruments Inc. |
182,578 |
47,636 | |
|
* |
Sandisk Corp. |
29,700 |
46,531 |
|
KLA Corp. |
262,026 |
45,972 | |
|
* |
Crowdstrike Holdings Inc. Class A |
194,220 |
44,865 |
|
International Business Machines Corp. |
188,490 |
44,082 | |
|
Salesforce Inc. |
156,011 |
40,179 | |
|
Amphenol Corp. Class A |
246,492 |
39,081 | |
|
Marvell Technology Inc. |
179,956 |
38,090 | |
|
QUALCOMM Inc. |
211,282 |
36,019 | |
|
Analog Devices Inc. |
97,603 |
35,346 | |
|
* |
ServiceNow Inc. |
206,487 |
30,558 |
|
Dell Technologies Inc. Class C |
58,658 |
26,749 | |
|
* |
Adobe Inc. |
80,869 |
23,678 |
|
Corning Inc. |
155,035 |
23,058 | |
|
Intuit Inc. |
55,087 |
19,793 | |
|
* |
Cadence Design Systems Inc. |
55,268 |
18,724 |
|
Seagate Technology Holdings plc |
22,492 |
18,632 | |
|
* |
AppLovin Corp. Class A |
55,201 |
17,226 |
|
* |
Synopsys Inc. |
38,351 |
16,859 |
|
Western Digital Corp. |
34,576 |
15,578 | |
|
* |
Snowflake Inc. |
33,157 |
10,989 |
|
* |
Fortinet Inc. |
62,708 |
10,719 |
|
5,465,212 | |||
|
Telecommunications (2.3%) | |||
|
Cisco Systems Inc. |
711,376 |
78,600 | |
|
* |
Arista Networks Inc. |
214,903 |
42,054 |
|
Verizon Communications Inc. |
754,613 |
37,746 | |
|
AT&T Inc. |
1,394,793 |
36,111 | |
|
Comcast Corp. Class A |
713,049 |
18,981 | |
|
* |
Space Exploration Technologies Corp. Class A |
118,571 |
17,038 |
|
T-Mobile US Inc. |
86,617 |
15,629 | |
|
246,159 | |||
|
Utilities (0.9%) | |||
|
NextEra Energy Inc. |
418,761 |
34,481 | |
|
Southern Co. |
226,164 |
19,902 | |
|
Duke Energy Corp. |
155,921 |
18,697 | |
|
Waste Management Inc. |
80,414 |
17,604 | |
|
American Electric Power Co. Inc. |
54,769 |
6,705 | |
|
Republic Services Inc. |
20,130 |
4,447 | |
|
101,836 | |||
|
Total Common Stocks (Cost $6,371,385) |
10,878,985 | ||
3
Morningstar Mega Cap Index Fund
|
Shares |
Market Value• ($000) | ||
|
Temporary Cash Investments (0.1%) | |||
|
Money Market Fund (0.1%) | |||
|
1 |
Vanguard Market Liquidity Fund, 3.731% (Cost $11,274) |
112,746 |
11,274 |
|
Total Investments (99.9%) (Cost $6,382,659) |
10,890,259 | ||
|
Other Assets and Liabilities—Net (0.1%) |
9,237 | ||
|
Net Assets (100%) |
10,899,496 | ||
|
Cost is in $000. | |||
|
• |
See Note A in Notes to Financial Statements. |
|
* |
Non-income-producing security. |
|
1 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
E-mini S&P 500 Index |
September 2026 |
41 |
15,783 |
127 |
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Elevance Health Inc. |
2/1/2027 |
CITNA |
382 |
(4.130 ) |
— |
(4) |
|
Elevance Health Inc. |
8/31/2027 |
BANA |
119 |
(4.280 ) |
— |
(2) |
|
Goldman Sachs Group Inc. |
2/1/2027 |
CITNA |
845 |
(4.380 ) |
19 |
— |
|
Goldman Sachs Group Inc. |
8/31/2027 |
BANA |
3,346 |
(4.447 ) |
— |
(107) |
|
19 |
(113) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
CITNA—Citibank, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Morningstar Mega Cap Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value |
|
|
Unaffiliated Issuers (Cost $6,371,385) |
10,878,985 |
|
Affiliated Issuers (Cost $11,274) |
11,274 |
|
Total Investments in Securities |
10,890,259 |
|
Investment in Vanguard |
226 |
|
Cash |
36 |
|
Cash Collateral Pledged—Futures Contracts |
1,070 |
|
Receivables for Investment Securities Sold |
13 |
|
Receivables for Accrued Income |
8,349 |
|
Receivables for Capital Shares Issued |
1 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
19 |
|
Total Assets |
10,899,973 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
78 |
|
Payables to Vanguard |
239 |
|
Variation Margin Payable—Futures Contracts |
47 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
113 |
|
Total Liabilities |
477 |
|
Net Assets |
10,899,496 |
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
6,662,428 |
|
Total Distributable Earnings (Loss) |
4,237,068 |
|
Net Assets |
10,899,496 |
|
ETF Shares—Net Assets |
|
|
Applicable to 36,709,267 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
10,333,740 |
|
Net Asset Value Per Share—ETF Shares |
$281.50 |
|
Institutional Shares—Net Assets |
|
|
Applicable to 1,019,326 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
565,756 |
|
Net Asset Value Per Share—Institutional Shares |
$555.03 |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Morningstar Mega Cap Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
107,502 |
|
Interest1 |
616 |
|
Securities Lending—Net |
4 |
|
Total Income |
108,122 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
107 |
|
Management and Administrative—ETF Shares2 |
4,760 |
|
Management and Administrative—Institutional Shares2 |
385 |
|
Marketing and Distribution—ETF Shares |
322 |
|
Marketing and Distribution—Institutional Shares |
28 |
|
Custodian Fees |
21 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
43 |
|
Shareholders’ Reports—ETF Shares2 |
168 |
|
Shareholders’ Reports—Institutional Shares2 |
1 |
|
Trustees’ Fees and Expenses |
6 |
|
Other Expenses |
15 |
|
Total Expenses |
5,891 |
|
Net Investment Income |
102,231 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
775,921 |
|
Futures Contracts |
1,293 |
|
Swap Contracts |
604 |
|
Realized Net Gain (Loss) |
777,818 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
999,907 |
|
Futures Contracts |
46 |
|
Swap Contracts |
(94 ) |
|
Change in Unrealized Appreciation (Depreciation) |
999,859 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,879,908 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $585, less than $1, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $862,178 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Morningstar Mega Cap Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
102,231 |
78,534 |
|
Realized Net Gain (Loss) |
777,818 |
176,634 |
|
Change in Unrealized Appreciation (Depreciation) |
999,859 |
883,492 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,879,908 |
1,138,660 |
|
Distributions |
||
|
ETF Shares |
(92,667 ) |
(73,646 ) |
|
Institutional Shares |
(7,741 ) |
(3,198 ) |
|
Total Distributions |
(100,408 ) |
(76,844 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
789,040 |
833,917 |
|
Institutional Shares |
(220,745 ) |
378,190 |
|
Net Increase (Decrease) from Capital Share Transactions |
568,295 |
1,212,107 |
|
Total Increase (Decrease) |
2,347,795 |
2,273,923 |
|
Net Assets |
||
|
Beginning of Period |
8,551,701 |
6,277,778 |
|
End of Period |
10,899,496 |
8,551,701 |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Morningstar Mega Cap Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$234.91 |
$203.13 |
$159.74 |
$137.84 |
$160.74 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
2.574 |
2.429 |
2.346 |
2.268 |
2.109 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
46.532 |
31.746 |
43.488 |
21.869 |
(22.957) |
|
Total from Investment Operations |
49.106 |
34.175 |
45.834 |
24.137 |
(20.848) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(2.516) |
(2.395) |
(2.444) |
(2.237) |
(2.052) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(2.516) |
(2.395) |
(2.444) |
(2.237) |
(2.052) |
|
Net Asset Value, End of Period |
$281.50 |
$234.91 |
$203.13 |
$159.74 |
$137.84 |
|
Total Return |
21.06% |
16.95% |
28.95% |
17.79% |
-13.09% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$10,334 |
$7,901 |
$6,060 |
$4,237 |
$3,701 |
|
Ratio of Total Expenses to Average Net Assets |
0.06% |
0.07% |
0.07%2 |
0.07%2 |
0.07% |
|
Ratio of Net Investment Income to Average Net Assets |
1.00% |
1.14% |
1.32% |
1.59% |
1.38% |
|
Portfolio Turnover Rate3 |
7% |
3% |
3% |
2% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.07%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Morningstar Mega Cap Index Fund
Financial Highlights
|
Institutional Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$463.17 |
$400.51 |
$314.96 |
$271.77 |
$316.94 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
5.071 |
4.755 |
4.648 |
4.499 |
4.199 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
91.779 |
62.677 |
85.751 |
43.129 |
(45.292) |
|
Total from Investment Operations |
96.850 |
67.432 |
90.399 |
47.628 |
(41.093) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(4.990) |
(4.772) |
(4.849) |
(4.438) |
(4.077) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(4.990) |
(4.772) |
(4.849) |
(4.438) |
(4.077) |
|
Net Asset Value, End of Period |
$555.03 |
$463.17 |
$400.51 |
$314.96 |
$271.77 |
|
Total Return |
21.07% |
16.97% |
28.95% |
17.81% |
-13.07% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$566 |
$651 |
$218 |
$203 |
$178 |
|
Ratio of Total Expenses to Average Net Assets |
0.05% |
0.06% |
0.06%2 |
0.06%2 |
0.06% |
|
Ratio of Net Investment Income to Average Net Assets |
1.01% |
1.11% |
1.33% |
1.60% |
1.40% |
|
Portfolio Turnover Rate3 |
7% |
3% |
3% |
2% |
3% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.06%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
Morningstar Mega Cap Index Fund
Notes to Financial Statements
Vanguard Morningstar Mega Cap Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
In June 2026, the board of trustees approved changing the Fund’s name to Vanguard Morningstar Mega Cap Index Fund, effective in July 2026, to correspond with the renaming of the Fund's benchmark.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
10
Morningstar Mega Cap Index Fund
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $226,000, representing less than 0.01% of the fund’s net assets and 0.09% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
11
Morningstar Mega Cap Index Fund
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
10,878,985 |
— |
— |
10,878,985 |
|
Temporary Cash Investments |
11,274 |
— |
— |
11,274 |
|
Total |
10,890,259 |
— |
— |
10,890,259 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Futures Contracts1 |
127 |
— |
— |
127 |
|
Swap Contracts |
— |
19 |
— |
19 |
|
Total |
127 |
19 |
— |
146 |
|
Liabilities |
||||
|
Swap Contracts |
— |
(113) |
— |
(113) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
862,684 |
|
Total Distributable Earnings (Loss) |
862,684 |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
16,735 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
4,501,575 |
|
Capital Loss Carryforwards |
(281,242) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
4,237,068 |
12
Morningstar Mega Cap Index Fund
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
100,408 |
76,844 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
100,408 |
76,844 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
6,388,683 |
|
Gross Unrealized Appreciation |
4,584,460 |
|
Gross Unrealized Depreciation |
(82,884) |
|
Net Unrealized Appreciation (Depreciation) |
4,501,576 |
F.
During the year ended August 31, 2026, the fund purchased $711,324,000 of investment securities and sold $922,108,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $1,991,353,000 and $1,220,591,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $171,274,000 and sales were $196,287,000, resulting in net realized loss of $45,520,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
2,026,433 |
8,050 |
1,194,145 |
5,550 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,237,393) |
(4,975) |
(360,228) |
(1,750) |
|
Net Increase (Decrease)—ETF Shares |
789,040 |
3,075 |
833,917 |
3,800 |
|
Institutional Shares |
||||
|
Issued |
341,923 |
700 |
409,517 |
935 |
|
Issued in Lieu of Cash Distributions |
7,739 |
16 |
3,197 |
8 |
|
Redeemed |
(570,407) |
(1,102) |
(34,524) |
(81) |
|
Net Increase (Decrease)—Institutional Shares |
(220,745) |
(386) |
378,190 |
862 |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
13
Morningstar Mega Cap Index Fund
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
14
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Morningstar Mega Cap Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Morningstar Mega Cap Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
15
For corporate shareholders, 100%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $85,546,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $303,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
Q8280 102026
16
Financial Statements
For the year ended August 31, 2026
Vanguard Morningstar Mega Cap Value Index Fund
(formerly Vanguard Mega Cap Value Index Fund)
Contents
|
1 | |
|
14 | |
|
15 | |
Morningstar Mega Cap Value Index Fund
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.8%) | |||
|
Basic Materials (2.0%) | |||
|
Linde plc |
297,338 |
145,571 | |
|
Freeport-McMoRan Inc. |
924,024 |
69,986 | |
|
Newmont Corp. (XNYS) |
343,093 |
43,250 | |
|
Air Products & Chemicals Inc. |
71,574 |
22,149 | |
|
280,956 | |||
|
Consumer Discretionary (8.9%) | |||
|
Walmart Inc. |
2,817,929 |
295,516 | |
|
Costco Wholesale Corp. |
285,171 |
269,170 | |
|
Home Depot Inc. |
640,922 |
210,114 | |
|
McDonald's Corp. |
456,687 |
120,355 | |
|
Walt Disney Co. |
1,116,168 |
120,044 | |
|
Starbucks Corp. |
732,561 |
77,835 | |
|
Lowe's Cos. Inc. |
360,400 |
73,774 | |
|
* |
Uber Technologies Inc. |
654,216 |
49,491 |
|
NIKE Inc. Class B |
385,503 |
15,058 | |
|
1,231,357 | |||
|
Consumer Staples (7.5%) | |||
|
Procter & Gamble Co. |
1,496,754 |
217,209 | |
|
Coca-Cola Co. |
2,212,403 |
196,174 | |
|
Philip Morris International Inc. |
1,001,792 |
187,636 | |
|
PepsiCo Inc. |
878,516 |
123,291 | |
|
CVS Health Corp. |
820,118 |
77,017 | |
|
Altria Group Inc. |
1,073,352 |
73,503 | |
|
McKesson Corp. |
77,260 |
68,400 | |
|
Mondelez International Inc. Class A |
825,091 |
51,213 | |
|
Colgate-Palmolive Co. |
514,337 |
46,198 | |
|
1,040,641 | |||
|
Energy (6.3%) | |||
|
ExxonMobil Holdings Corp. |
2,664,239 |
428,809 | |
|
Chevron Corp. |
1,216,124 |
250,692 | |
|
ConocoPhillips |
783,428 |
103,796 | |
|
EOG Resources Inc. |
342,359 |
49,628 | |
|
Williams Cos. Inc. |
393,005 |
29,495 | |
|
Kinder Morgan Inc. |
607,777 |
19,595 | |
|
882,015 | |||
|
Financials (22.7%) | |||
|
JPMorgan Chase & Co. (XNYS) |
1,722,292 |
613,170 | |
|
* |
Berkshire Hathaway Inc. Class B |
909,324 |
458,327 |
|
Bank of America Corp. (XNYS) |
4,105,315 |
254,283 | |
|
Goldman Sachs Group Inc. (XNYS) |
178,207 |
182,823 | |
|
Wells Fargo & Co. |
1,966,992 |
169,928 | |
|
Morgan Stanley |
760,370 |
162,202 | |
|
Citigroup Inc. (XNYS) |
1,096,284 |
144,293 | |
|
* |
Berkshire Hathaway Inc. Class A |
188 |
142,250 |
|
Charles Schwab Corp. |
1,061,966 |
116,625 | |
|
Blackrock Inc. |
89,802 |
103,776 | |
|
Progressive Corp. |
375,060 |
81,793 | |
|
S&P Global Inc. |
185,149 |
80,695 | |
|
Chubb Ltd. |
224,367 |
75,971 | |
|
Bank of New York Mellon Corp. |
441,190 |
71,155 | |
|
Blackstone Inc. |
477,493 |
68,396 | |
|
CME Group Inc. |
232,911 |
66,496 | |
|
PNC Financial Services Group Inc. |
258,121 |
61,854 | |
|
US Bancorp |
997,772 |
61,443 | |
|
Marsh & McLennan Cos. Inc. |
309,681 |
58,778 | |
|
Intercontinental Exchange Inc. |
363,490 |
58,413 | |
|
KKR & Co. Inc. |
432,842 |
47,491 | |
|
Travelers Cos. Inc. |
68,349 |
25,011 | |
1
Morningstar Mega Cap Value Index Fund
|
Shares |
Market Value• ($000) | ||
|
Aon plc Class A (XNYS) |
65,215 |
20,968 | |
|
Truist Financial Corp. |
400,400 |
19,852 | |
|
Apollo Global Management Inc. |
129,699 |
17,714 | |
|
3,163,707 | |||
|
Health Care (16.7%) | |||
|
Johnson & Johnson |
1,547,284 |
411,345 | |
|
AbbVie Inc. |
1,135,641 |
291,201 | |
|
Merck & Co. Inc. |
1,587,524 |
234,573 | |
|
UnitedHealth Group Inc. |
583,720 |
227,306 | |
|
Amgen Inc. |
346,903 |
149,127 | |
|
Thermo Fisher Scientific Inc. |
238,870 |
147,407 | |
|
Abbott Laboratories |
1,119,575 |
123,556 | |
|
Gilead Sciences Inc. |
798,045 |
116,786 | |
|
Pfizer Inc. |
3,663,425 |
104,261 | |
|
Bristol-Myers Squibb Co. |
1,312,572 |
87,693 | |
|
Danaher Corp. |
409,439 |
87,440 | |
|
Medtronic plc |
825,241 |
74,808 | |
|
Stryker Corp. |
221,777 |
71,811 | |
|
Elevance Health Inc. (XNYS) |
135,769 |
53,295 | |
|
Cigna Group |
170,031 |
46,942 | |
|
HCA Healthcare Inc. |
99,814 |
41,368 | |
|
Regeneron Pharmaceuticals Inc. |
33,110 |
26,457 | |
|
* |
Boston Scientific Corp. |
477,699 |
23,073 |
|
2,318,449 | |||
|
Industrials (15.3%) | |||
|
Caterpillar Inc. (XNYS) |
296,055 |
236,095 | |
|
General Electric Co. |
670,611 |
225,131 | |
|
RTX Corp. |
865,604 |
179,812 | |
|
American Express Co. |
350,862 |
115,844 | |
|
Union Pacific Corp. |
381,626 |
114,743 | |
|
Deere & Co. |
164,840 |
107,955 | |
|
Eaton Corp. plc |
249,587 |
100,304 | |
|
Capital One Financial Corp. |
399,987 |
85,801 | |
|
Lockheed Martin Corp. |
148,207 |
83,178 | |
|
Parker-Hannifin Corp. |
81,038 |
79,372 | |
|
Accenture plc Class A |
394,628 |
74,885 | |
|
Automatic Data Processing Inc. |
256,933 |
73,524 | |
|
Trane Technologies plc |
142,093 |
63,146 | |
|
General Dynamics Corp. |
165,139 |
61,324 | |
|
CSX Corp. |
1,194,355 |
60,327 | |
|
3M Co. |
335,251 |
57,606 | |
|
Emerson Electric Co. |
360,011 |
54,880 | |
|
Sherwin-Williams Co. |
150,599 |
51,024 | |
|
United Parcel Service Inc. Class B (XNYS) |
479,876 |
50,017 | |
|
Northrop Grumman Corp. |
91,287 |
49,268 | |
|
Illinois Tool Works Inc. |
175,682 |
48,378 | |
|
Honeywell International Inc. |
203,643 |
43,484 | |
|
* |
Honeywell Aerospace Inc. |
203,643 |
32,198 |
|
Johnson Controls International plc |
196,083 |
27,107 | |
|
Norfolk Southern Corp. |
72,186 |
24,745 | |
|
FedEx Corp. |
69,020 |
22,597 | |
|
2,122,745 | |||
|
Real Estate (1.0%) | |||
|
Prologis Inc. |
609,395 |
85,267 | |
|
American Tower Corp. |
299,462 |
52,615 | |
|
137,882 | |||
|
Technology (12.8%) | |||
|
Micron Technology Inc. |
724,875 |
694,959 | |
|
Texas Instruments Inc. |
584,983 |
152,628 | |
|
International Business Machines Corp. |
604,136 |
141,289 | |
|
Salesforce Inc. |
500,090 |
128,793 | |
|
* |
Intel Corp. |
1,350,978 |
120,926 |
|
Applied Materials Inc. |
255,172 |
116,968 | |
|
QUALCOMM Inc. |
677,478 |
115,496 | |
|
Analog Devices Inc. |
313,083 |
113,380 | |
|
Dell Technologies Inc. Class C |
188,021 |
85,740 | |
|
* |
Adobe Inc. |
259,806 |
76,069 |
2
Morningstar Mega Cap Value Index Fund
|
Shares |
Market Value• ($000) | ||
|
Intuit Inc. |
87,903 |
31,584 | |
|
1,777,832 | |||
|
Telecommunications (4.3%) | |||
|
Cisco Systems Inc. |
2,280,084 |
251,927 | |
|
Verizon Communications Inc. |
2,415,528 |
120,825 | |
|
AT&T Inc. |
4,466,172 |
115,629 | |
|
Comcast Corp. Class A |
2,290,043 |
60,961 | |
|
T-Mobile US Inc. |
278,249 |
50,207 | |
|
599,549 | |||
|
Utilities (2.3%) | |||
|
NextEra Energy Inc. |
1,340,395 |
110,368 | |
|
Southern Co. |
725,250 |
63,822 | |
|
Duke Energy Corp. |
500,208 |
59,980 | |
|
Waste Management Inc. |
258,128 |
56,509 | |
|
American Electric Power Co. Inc. |
174,874 |
21,410 | |
|
Republic Services Inc. |
64,266 |
14,198 | |
|
326,287 | |||
|
Total Common Stocks (Cost $9,538,831) |
13,881,420 | ||
|
Temporary Cash Investments (0.1%) | |||
|
Money Market Fund (0.1%) | |||
|
1 |
Vanguard Market Liquidity Fund, 3.731% (Cost $7,072) |
70,723 |
7,072 |
|
Total Investments (99.9%) (Cost $9,545,903) |
13,888,492 | ||
|
Other Assets and Liabilities—Net (0.1%) |
19,696 | ||
|
Net Assets (100%) |
13,908,188 | ||
|
Cost is in $000. | |||
|
• |
See Note A in Notes to Financial Statements. |
|
* |
Non-income-producing security. |
|
1 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
Derivative Financial Instruments Outstanding as of Period End
|
Futures Contracts | ||||
|
($000) | ||||
|
Expiration |
Number of
Long (Short)
Contracts |
Notional
Amount |
Value and
Unrealized
Appreciation
(Depreciation) | |
|
Long Futures Contracts |
||||
|
E-mini S&P 500 Index |
September 2026 |
32 |
12,318 |
(38) |
|
Over-the-Counter Total Return Swaps | ||||||
|
Reference Entity |
Termination
Date |
Counterparty |
Notional
Amount
($000) |
Floating
Interest Rate
Received
(Paid)1
(%) |
Value and
Unrealized
Appreciation
($000) |
Value and
Unrealized
(Depreciation)
($000) |
|
Elevance Health Inc. |
2/1/2027 |
CITNA |
1,133 |
(4.130 ) |
— |
(12) |
|
Elevance Health Inc. |
8/31/2027 |
BANA |
381 |
(4.280 ) |
— |
(6) |
|
Goldman Sachs Group Inc. |
2/1/2027 |
CITNA |
2,685 |
(4.380 ) |
61 |
— |
|
Goldman Sachs Group Inc. |
8/31/2027 |
BANA |
9,249 |
(4.444 ) |
— |
(295) |
|
61 |
(313) | |||||
|
1 |
Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/(paid) monthly. |
|
BANA—Bank of America, N.A. | |
|
CITNA—Citibank, N.A. |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Morningstar Mega Cap Value Index Fund
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value |
|
|
Unaffiliated Issuers (Cost $9,538,831) |
13,881,420 |
|
Affiliated Issuers (Cost $7,072) |
7,072 |
|
Total Investments in Securities |
13,888,492 |
|
Investment in Vanguard |
288 |
|
Cash |
27 |
|
Cash Collateral Pledged—Futures Contracts |
845 |
|
Receivables for Investment Securities Sold |
133 |
|
Receivables for Accrued Income |
19,181 |
|
Receivables for Capital Shares Issued |
61 |
|
Unrealized Appreciation—Over-the-Counter Swap Contracts |
61 |
|
Total Assets |
13,909,088 |
|
Liabilities |
|
|
Payables for Investment Securities Purchased |
221 |
|
Payables for Capital Shares Redeemed |
23 |
|
Payables to Vanguard |
306 |
|
Variation Margin Payable—Futures Contracts |
37 |
|
Unrealized Depreciation—Over-the-Counter Swap Contracts |
313 |
|
Total Liabilities |
900 |
|
Net Assets |
13,908,188 |
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
10,026,505 |
|
Total Distributable Earnings (Loss) |
3,881,683 |
|
Net Assets |
13,908,188 |
|
ETF Shares—Net Assets |
|
|
Applicable to 82,316,171 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
13,756,570 |
|
Net Asset Value Per Share—ETF Shares |
$167.12 |
|
Institutional Shares—Net Assets |
|
|
Applicable to 457,507 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
151,618 |
|
Net Asset Value Per Share—Institutional Shares |
$331.40 |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Morningstar Mega Cap Value Index Fund
Statement of Operations
|
Year Ended
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends |
244,144 |
|
Interest1 |
1,196 |
|
Securities Lending—Net |
— |
|
Total Income |
245,340 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Investment Advisory Services |
121 |
|
Management and Administrative—ETF Shares2 |
5,777 |
|
Management and Administrative—Institutional Shares2 |
67 |
|
Marketing and Distribution—ETF Shares |
412 |
|
Marketing and Distribution—Institutional Shares |
2 |
|
Custodian Fees |
26 |
|
Auditing Fees |
35 |
|
Accounting Fees2 |
43 |
|
Shareholders’ Reports—ETF Shares2 |
262 |
|
Shareholders’ Reports—Institutional Shares2 |
2 |
|
Trustees’ Fees and Expenses |
6 |
|
Other Expenses |
14 |
|
Total Expenses |
6,767 |
|
Net Investment Income |
238,573 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold1,3 |
487,567 |
|
Futures Contracts |
81 |
|
Swap Contracts |
9,001 |
|
Realized Net Gain (Loss) |
496,649 |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities1 |
2,029,923 |
|
Futures Contracts |
(58 ) |
|
Swap Contracts |
(252 ) |
|
Change in Unrealized Appreciation (Depreciation) |
2,029,613 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,764,835 |
|
1 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $1,151, ($7), and less than $1, respectively. Purchases and sales are for temporary cash investment purposes. |
|
2 |
Certain amounts previously included in Management and Administrative and Shareholders' Reports expenses are now presented as Accounting Fees. |
|
3 |
Includes $610,846 of net gain (loss) resulting from in-kind redemptions. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Morningstar Mega Cap Value Index Fund
Statement of Changes in Net Assets
|
Year Ended August 31, | ||
|
2026
($000) |
2025
($000) | |
|
Increase (Decrease) in Net Assets |
||
|
Operations |
||
|
Net Investment Income |
238,573 |
196,926 |
|
Realized Net Gain (Loss) |
496,649 |
466,258 |
|
Change in Unrealized Appreciation (Depreciation) |
2,029,613 |
103,940 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,764,835 |
767,124 |
|
Distributions |
||
|
ETF Shares |
(234,879 ) |
(191,098 ) |
|
Institutional Shares |
(2,809 ) |
(2,732 ) |
|
Total Distributions |
(237,688 ) |
(193,830 ) |
|
Capital Share Transactions |
||
|
ETF Shares |
1,308,279 |
1,055,016 |
|
Institutional Shares |
(3,037 ) |
(17,036 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
1,305,242 |
1,037,980 |
|
Total Increase (Decrease) |
3,832,389 |
1,611,274 |
|
Net Assets |
||
|
Beginning of Period |
10,075,799 |
8,464,525 |
|
End of Period |
13,908,188 |
10,075,799 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
Morningstar Mega Cap Value Index Fund
Financial Highlights
|
ETF Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$135.08 |
$127.48 |
$105.16 |
$97.72 |
$102.64 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
3.038 |
2.828 |
2.713 |
2.709 |
2.519 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
32.048 |
7.582 |
22.494 |
7.364 |
(5.016) |
|
Total from Investment Operations |
35.086 |
10.410 |
25.207 |
10.073 |
(2.497) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(3.046) |
(2.810) |
(2.887) |
(2.633) |
(2.423) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(3.046) |
(2.810) |
(2.887) |
(2.633) |
(2.423) |
|
Net Asset Value, End of Period |
$167.12 |
$135.08 |
$127.48 |
$105.16 |
$97.72 |
|
Total Return |
26.33% |
8.31% |
24.39% |
10.53% |
-2.51% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$13,757 |
$9,951 |
$8,329 |
$6,048 |
$5,586 |
|
Ratio of Total Expenses to Average Net Assets |
0.06% |
0.07% |
0.07%2 |
0.07%2 |
0.07% |
|
Ratio of Net Investment Income to Average Net Assets |
2.03% |
2.20% |
2.40% |
2.66% |
2.45% |
|
Portfolio Turnover Rate3 |
12% |
8% |
13% |
7% |
8% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.07%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
7
Morningstar Mega Cap Value Index Fund
Financial Highlights
|
Institutional Shares |
|||||
|
For a Share Outstanding
Throughout Each Period |
Year Ended August 31, | ||||
|
2026 |
2025 |
2024 |
2023 |
2022 | |
|
Net Asset Value, Beginning of Period |
$267.86 |
$252.79 |
$208.53 |
$193.77 |
$203.54 |
|
Investment Operations |
|||||
|
Net Investment Income1 |
6.040 |
5.616 |
5.405 |
5.384 |
4.999 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
63.556 |
15.048 |
44.600 |
14.615 |
(9.947) |
|
Total from Investment Operations |
69.596 |
20.664 |
50.005 |
19.999 |
(4.948) |
|
Distributions |
|||||
|
Dividends from Net Investment Income |
(6.056) |
(5.594) |
(5.745) |
(5.239) |
(4.822) |
|
Distributions from Realized Capital Gains |
— |
— |
— |
— |
— |
|
Total Distributions |
(6.056) |
(5.594) |
(5.745) |
(5.239) |
(4.822) |
|
Net Asset Value, End of Period |
$331.40 |
$267.86 |
$252.79 |
$208.53 |
$193.77 |
|
Total Return |
26.34% |
8.32% |
24.40% |
10.55% |
-2.49% |
|
Ratios/Supplemental Data |
|||||
|
Net Assets, End of Period (Millions) |
$152 |
$125 |
$135 |
$118 |
$116 |
|
Ratio of Total Expenses to Average Net Assets |
0.05% |
0.06% |
0.06%2 |
0.06%2 |
0.06% |
|
Ratio of Net Investment Income to Average Net Assets |
2.04% |
2.20% |
2.42% |
2.67% |
2.45% |
|
Portfolio Turnover Rate3 |
12% |
8% |
13% |
7% |
8% |
|
1 |
Calculated based on average shares outstanding. |
|
2 |
The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.06%. |
|
3 |
Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
8
Morningstar Mega Cap Value Index Fund
Notes to Financial Statements
Vanguard Morningstar Mega Cap Value Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
In June 2026, the board of trustees approved changing the Fund’s name to Vanguard Morningstar Mega Cap Value Index Fund, effective in July 2026, to correspond with the renaming of the Fund's benchmark.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the year ended August 31, 2026, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays or receives a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund invests an amount approximately equal to the notional amount of the swap in high-quality temporary cash investments, as well as holds cash and other short-term receivables.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the year ended August 31, 2026, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
9
Morningstar Mega Cap Value Index Fund
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended August 31, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Portfolio Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $288,000, representing less than 0.01% of the fund’s net assets and 0.12% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
10
Morningstar Mega Cap Value Index Fund
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks |
13,881,420 |
— |
— |
13,881,420 |
|
Temporary Cash Investments |
7,072 |
— |
— |
7,072 |
|
Total |
13,888,492 |
— |
— |
13,888,492 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Swap Contracts |
— |
61 |
— |
61 |
|
Liabilities |
||||
|
Futures Contracts1 |
(38) |
— |
— |
(38) |
|
Swap Contracts |
— |
(313) |
— |
(313) |
|
Total |
(38) |
(313) |
— |
(351) |
|
1 |
Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E.
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
|
Permanent differences were reclassified between the following accounts: |
Amount
($000) |
|
Paid-in Capital |
619,265 |
|
Total Distributable Earnings (Loss) |
(619,265) |
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
37,349 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
4,328,820 |
|
Capital Loss Carryforwards |
(484,486) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
— |
|
Total |
3,881,683 |
11
Morningstar Mega Cap Value Index Fund
The tax character of distributions paid was as follows:
|
Year Ended August 31, | ||
|
2026
Amount
($000) |
2025
Amount
($000) | |
|
Ordinary Income* |
237,688 |
193,830 |
|
Long-Term Capital Gains |
— |
— |
|
Total |
237,688 |
193,830 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
9,559,673 |
|
Gross Unrealized Appreciation |
4,513,210 |
|
Gross Unrealized Depreciation |
(184,391) |
|
Net Unrealized Appreciation (Depreciation) |
4,328,819 |
F.
During the year ended August 31, 2026, the fund purchased $1,474,396,000 of investment securities and sold $1,456,114,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $2,376,812,000 and $1,086,878,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year ended August 31, 2026, such purchases were $878,604,000 and sales were $492,400,000, resulting in net realized loss of $77,557,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
G.
Capital share transactions for each class of shares were:
|
Year Ended August 31, | ||||
|
2026 |
2025 | |||
|
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | |
|
ETF Shares |
||||
|
Issued |
2,408,474 |
16,100 |
2,153,209 |
16,850 |
|
Issued in Lieu of Cash Distributions |
— |
— |
— |
— |
|
Redeemed |
(1,100,195) |
(7,450) |
(1,098,193) |
(8,525) |
|
Net Increase (Decrease)—ETF Shares |
1,308,279 |
8,650 |
1,055,016 |
8,325 |
|
Institutional Shares |
||||
|
Issued |
1,576 |
6 |
1,708 |
6 |
|
Issued in Lieu of Cash Distributions |
1,712 |
6 |
651 |
3 |
|
Redeemed |
(6,325) |
(21) |
(19,395) |
(77) |
|
Net Increase (Decrease)—Institutional Shares |
(3,037) |
(9) |
(17,036) |
(68) |
H.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
At August 31, 2026, one shareholder was the record or beneficial owner of 32% of the fund’s net assets. If this shareholder were to redeem its investment in the fund, the redemption might result in an increase in the fund’s expense ratio, cause the fund to incur higher transaction costs, or lead to the realization of taxable capital gains.
I.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
12
Morningstar Mega Cap Value Index Fund
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.
J.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
13
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Morningstar Mega Cap Value Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Morningstar Mega Cap Value Index Fund (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, the related statement of operations for the year ended August 31, 2026, the statement of changes in net assets for each of the two years in the period ended August 31, 2026, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2026 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2026 and the financial highlights for each of the five years in the period ended August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
14
For corporate shareholders, 96.2%, or if subsequently determined to be different, the maximum percentage allowable by law, of ordinary income (dividend income plus short-term gains, if any) for the fiscal year qualified for the dividends-received deduction.
The fund hereby designates $211,124,000, or if subsequently determined to be different, the maximum amount allowable by law, as qualified dividend income for purposes of the maximum rate under section 1(h)(11) for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
The fund hereby designates for the fiscal year $597,000, or if subsequently determined to be different, the maximum amount allowable by law, of interest earned from obligations of the U.S. government which is generally exempt from state income tax.
The fund hereby designates $1,599,000, or if subsequently determined to be different, the maximum amount allowable by law, of qualified business income under section 199A for calendar year 2025. Shareholders will be notified in January 2027 via IRS Form 1099 of the amounts for use in preparing their 2026 income tax return.
Q8390 102026
15
Financial Statements
For the period ended August 31, 2026
Vanguard Developed Markets ex-US Growth Index ETF
Contents
|
1 | |
|
20 | |
|
21 | |
Developed Markets ex-US Growth Index ETF
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (99.7%) | |||
|
Australia (4.6%) | |||
|
Commonwealth Bank of Australia |
3,460 |
395 | |
|
CSL Ltd. |
1,004 |
123 | |
|
Wesfarmers Ltd. |
1,718 |
98 | |
|
Macquarie Group Ltd. |
493 |
88 | |
|
Goodman Group |
2,963 |
59 | |
|
Aristocrat Leisure Ltd. |
1,248 |
54 | |
|
Westpac Banking Corp. |
2,076 |
51 | |
|
QBE Insurance Group Ltd. |
3,092 |
49 | |
|
Evolution Mining Ltd. |
4,215 |
45 | |
|
Transurban Group |
4,194 |
43 | |
|
National Australia Bank Ltd. |
1,534 |
42 | |
|
Brambles Ltd. |
2,793 |
39 | |
|
* |
James Hardie Industries plc GDR |
1,205 |
36 |
|
Origin Energy Ltd. |
3,549 |
30 | |
|
Insurance Australia Group Ltd. |
4,859 |
27 | |
|
* |
PLS Group Ltd. |
6,359 |
25 |
|
Computershare Ltd. (XASX) |
807 |
23 | |
|
* |
Xero Ltd. |
355 |
21 |
|
* |
Lynas Rare Earths Ltd. |
1,439 |
16 |
|
Woolworths Group Ltd. |
557 |
16 | |
|
Lottery Corp. Ltd. |
4,572 |
16 | |
|
Sigma Healthcare Ltd. |
7,664 |
15 | |
|
Pro Medicus Ltd. |
114 |
15 | |
|
Technology One Ltd. |
627 |
15 | |
|
CAR Group Ltd. |
776 |
15 | |
|
REA Group Ltd. |
104 |
13 | |
|
Cochlear Ltd. |
135 |
13 | |
|
WiseTech Global Ltd. |
436 |
13 | |
|
ALS Ltd. |
743 |
12 | |
|
Medibank Pvt Ltd. |
3,369 |
12 | |
|
* |
NEXTDC Ltd. |
1,158 |
11 |
|
ASX Ltd. |
249 |
10 | |
|
Qantas Airways Ltd. |
1,516 |
10 | |
|
HUB24 Ltd. |
168 |
9 | |
|
SGH Ltd. |
303 |
9 | |
|
Charter Hall Group |
581 |
8 | |
|
Orica Ltd. |
419 |
7 | |
|
JB Hi-Fi Ltd. |
138 |
7 | |
|
Steadfast Group Ltd. |
1,470 |
6 | |
|
SEEK Ltd. |
518 |
5 | |
|
Netwealth Group Ltd. |
262 |
4 | |
|
Reece Ltd. |
227 |
3 | |
|
a2 Milk Co. Ltd. |
524 |
2 | |
|
1,510 | |||
|
Austria (0.5%) | |||
|
Erste Group Bank AG |
662 |
93 | |
|
1 |
BAWAG Group AG |
158 |
33 |
|
ANDRITZ AG |
148 |
14 | |
|
Verbund AG |
172 |
12 | |
|
152 | |||
|
Belgium (0.9%) | |||
|
* |
Argenx SE |
91 |
93 |
|
KBC Group NV |
519 |
79 | |
|
UCB SA |
159 |
40 | |
|
Lotus Bakeries NV |
1 |
15 | |
|
Syensqo SA |
144 |
13 | |
|
Sofina SA |
32 |
9 | |
|
D'ieteren Group |
42 |
9 | |
|
Elia Group SA |
62 |
9 | |
1
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Ackermans & van Haaren NV |
25 |
8 | |
|
Financiere de Tubize SA |
18 |
4 | |
|
279 | |||
|
Canada (10.7%) | |||
|
Royal Bank of Canada |
2,890 |
591 | |
|
Toronto-Dominion Bank |
3,456 |
418 | |
|
* |
Shopify Inc. Class A |
2,529 |
373 |
|
Canadian Imperial Bank of Commerce |
1,903 |
216 | |
|
Agnico Eagle Mines Ltd. |
657 |
133 | |
|
National Bank of Canada |
798 |
122 | |
|
Canadian Pacific Kansas City Ltd. |
1,134 |
105 | |
|
Bank of Montreal |
555 |
95 | |
|
Constellation Software Inc. |
41 |
93 | |
|
Wheaton Precious Metals Corp. |
617 |
93 | |
|
Alimentation Couche-Tard Inc. |
1,537 |
93 | |
|
Canadian National Railway Co. |
699 |
87 | |
|
Waste Connections Inc. |
528 |
87 | |
|
Canadian Natural Resources Ltd. |
1,647 |
83 | |
|
* |
Celestica Inc. |
258 |
77 |
|
Dollarama Inc. |
561 |
71 | |
|
Fairfax Financial Holdings Ltd. |
41 |
67 | |
|
Franco-Nevada Corp. |
246 |
65 | |
|
Intact Financial Corp. |
255 |
49 | |
|
Kinross Gold Corp. |
1,395 |
43 | |
|
Imperial Oil Ltd. |
311 |
41 | |
|
* |
Bombardier Inc. Class B |
182 |
39 |
|
Loblaw Cos. Ltd. |
772 |
34 | |
|
Alamos Gold Inc. Class A |
865 |
32 | |
|
Cameco Corp. |
327 |
32 | |
|
CGI Inc. |
387 |
29 | |
|
ARC Resources Ltd. |
1,162 |
28 | |
|
WSP Global Inc. |
196 |
27 | |
|
TMX Group Ltd. |
566 |
22 | |
|
Teck Resources Ltd. Class B |
327 |
22 | |
|
TFI International Inc. |
160 |
21 | |
|
Thomson Reuters Corp. |
196 |
21 | |
|
Lundin Mining Corp. |
668 |
18 | |
|
Stantec Inc. |
236 |
17 | |
|
Toromont Industries Ltd. |
116 |
17 | |
|
Element Fleet Management Corp. |
824 |
16 | |
|
GFL Environmental Inc. |
382 |
16 | |
|
* |
Ivanhoe Mines Ltd. Class A |
1,677 |
15 |
|
* |
Descartes Systems Group Inc. |
178 |
14 |
|
Metro Inc. |
223 |
14 | |
|
Lundin Gold Inc. |
204 |
14 | |
|
AtkinsRealis Group Inc. |
231 |
14 | |
|
CCL Industries Inc. Class B |
172 |
12 | |
|
FirstService Corp. |
86 |
12 | |
|
Tourmaline Oil Corp. |
275 |
12 | |
|
* |
CAE Inc. |
366 |
9 |
|
* |
Bombardier Inc. Class A |
4 |
1 |
|
3,510 | |||
|
China (0.0%) | |||
|
* |
Z AI Co. Ltd. |
53 |
8 |
|
* |
Minimax Group Inc. |
105 |
5 |
|
13 | |||
|
Denmark (1.4%) | |||
|
Novo Nordisk A/S Class B |
6,589 |
298 | |
|
DSV A/S |
408 |
86 | |
|
* |
Genmab A/S |
129 |
43 |
|
Novonesis Novozymes B Class B |
410 |
29 | |
|
Coloplast A/S Class B |
142 |
10 | |
|
466 | |||
|
Finland (0.5%) | |||
|
Nordea Bank Abp |
3,418 |
70 | |
|
Kone OYJ Class B |
439 |
27 | |
|
Wartsila OYJ Abp |
656 |
21 | |
|
Orion OYJ Class B |
226 |
20 | |
2
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Metso OYJ |
766 |
16 | |
|
154 | |||
|
France (6.7%) | |||
|
Schneider Electric SE |
1,122 |
384 | |
|
Airbus SE |
1,278 |
292 | |
|
LVMH Moet Hennessy Louis Vuitton SE |
525 |
275 | |
|
L'Oreal SA (XPAR) |
475 |
211 | |
|
Air Liquide SA (XPAR) |
885 |
174 | |
|
Safran SA |
406 |
159 | |
|
Hermes International SCA |
72 |
132 | |
|
EssilorLuxottica SA |
603 |
112 | |
|
Vinci SA |
571 |
75 | |
|
Legrand SA |
415 |
66 | |
|
Cie de Saint-Gobain SA |
583 |
53 | |
|
Danone SA |
688 |
51 | |
|
Thales SA |
131 |
37 | |
|
Dassault Systemes SE |
1,353 |
36 | |
|
Engie SA (XPAR) |
1,202 |
34 | |
|
Publicis Groupe SA |
228 |
27 | |
|
Capgemini SE |
211 |
26 | |
|
Kering SA |
84 |
25 | |
|
Sartorius Stedim Biotech |
56 |
13 | |
|
Dassault Aviation SA |
23 |
7 | |
|
Christian Dior SE |
7 |
3 | |
|
2,192 | |||
|
Germany (6.7%) | |||
|
SAP SE |
2,108 |
464 | |
|
Siemens AG (Registered) |
926 |
307 | |
|
Infineon Technologies AG |
2,700 |
176 | |
|
Deutsche Bank AG (Registered) |
3,951 |
158 | |
|
Deutsche Boerse AG |
385 |
129 | |
|
Rheinmetall AG |
97 |
125 | |
|
Siemens Energy AG |
755 |
124 | |
|
Deutsche Telekom AG (Registered) |
3,540 |
116 | |
|
RWE AG |
1,491 |
101 | |
|
Commerzbank AG |
2,051 |
96 | |
|
E.ON SE |
4,584 |
95 | |
|
Daimler Truck Holding AG |
998 |
54 | |
|
Heidelberg Materials AG |
263 |
50 | |
|
MTU Aero Engines AG |
111 |
45 | |
|
Merck KGaA |
267 |
43 | |
|
adidas AG |
226 |
40 | |
|
1 |
Siemens Healthineers AG |
419 |
19 |
|
Beiersdorf AG |
186 |
17 | |
|
Knorr-Bremse AG |
136 |
17 | |
|
1 |
Hapag-Lloyd AG |
14 |
2 |
|
Sartorius AG |
6 |
1 | |
|
2,179 | |||
|
Hong Kong (1.5%) | |||
|
Hong Kong Exchanges & Clearing Ltd. |
2,450 |
133 | |
|
AIA Group Ltd. |
11,110 |
107 | |
|
Techtronic Industries Co. Ltd. |
2,925 |
50 | |
|
BOC Hong Kong Holdings Ltd. |
4,432 |
30 | |
|
Link REIT |
5,340 |
26 | |
|
Hong Kong & China Gas Co. Ltd. |
22,380 |
21 | |
|
CLP Holdings Ltd. |
1,961 |
20 | |
|
Wharf Real Estate Investment Co. Ltd. |
3,290 |
13 | |
|
Power Assets Holdings Ltd. |
1,568 |
12 | |
|
Galaxy Entertainment Group Ltd. |
2,843 |
12 | |
|
MTR Corp. Ltd. |
2,082 |
9 | |
|
HKT Trust & HKT Ltd. |
4,965 |
8 | |
|
Chow Tai Fook Jewellery Group Ltd. |
4,445 |
7 | |
|
PRADA SpA |
1,055 |
6 | |
|
CK Infrastructure Holdings Ltd. |
688 |
6 | |
|
Sands China Ltd. |
1,750 |
3 | |
|
Zijin Gold International Co. Ltd. |
155 |
3 | |
|
Cathay Pacific Airways Ltd. |
1,079 |
2 | |
|
MGM China Holdings Ltd. |
1,704 |
2 | |
|
HK Electric Investments & HK Electric Investments Ltd. |
2,822 |
2 | |
3
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
1 |
Budweiser Brewing Co. APAC Ltd. |
1,769 |
1 |
|
* |
FWD Group Holdings Ltd. |
103 |
— |
|
473 | |||
|
Ireland (0.4%) | |||
|
AIB Group plc |
4,384 |
56 | |
|
Kingspan Group plc |
314 |
37 | |
|
Ryanair Holdings plc |
1,077 |
29 | |
|
Kerry Group plc Class A |
216 |
21 | |
|
143 | |||
|
Israel (0.7%) | |||
|
Bank Leumi Le-Israel BM |
1,606 |
41 | |
|
Elbit Systems Ltd. |
56 |
39 | |
|
Bank Hapoalim BM |
1,288 |
33 | |
|
* |
Enlight Renewable Energy Ltd. |
288 |
23 |
|
Bezeq The Israeli Telecommunication Corp. Ltd. |
5,724 |
15 | |
|
* |
Nice Ltd. |
121 |
13 |
|
* |
OPC Energy Ltd. |
333 |
11 |
|
Next Vision Stabilized Systems Ltd. |
148 |
10 | |
|
First International Bank of Israel Ltd. |
108 |
9 | |
|
Big Shopping Centers Ltd. |
34 |
8 | |
|
Azrieli Group Ltd. |
40 |
5 | |
|
Melisron Ltd. |
26 |
4 | |
|
Energix-Renewable Energies Ltd. |
572 |
4 | |
|
El Al Israel Airlines Ltd. |
615 |
4 | |
|
Menora Mivtachim Holdings Ltd. |
20 |
3 | |
|
Kenon Holdings Ltd. |
41 |
3 | |
|
* |
Camtek Ltd. |
24 |
3 |
|
Meitav Investment House Ltd. |
74 |
3 | |
|
* |
Shikun & Binui Ltd. |
331 |
2 |
|
Electra Ltd. |
41 |
2 | |
|
Matrix IT Ltd. |
48 |
2 | |
|
Shapir Engineering & Industry Ltd. |
169 |
2 | |
|
* |
Fattal Holdings 1998 Ltd. |
7 |
2 |
|
YH Dimri Construction & Development Ltd. |
20 |
2 | |
|
Ashtrom Group Ltd. |
44 |
1 | |
|
Gav-Yam Lands Corp. Ltd. |
38 |
— | |
|
244 | |||
|
Italy (2.6%) | |||
|
UniCredit SpA |
3,118 |
304 | |
|
Ferrari NV |
253 |
107 | |
|
Intesa Sanpaolo SpA |
11,353 |
89 | |
|
Enel SpA |
6,176 |
68 | |
|
Prysmian SpA |
438 |
61 | |
|
STMicroelectronics NV |
742 |
37 | |
|
FinecoBank Banca Fineco SpA |
1,260 |
35 | |
|
Leonardo SpA |
552 |
33 | |
|
Moncler SpA |
458 |
25 | |
|
BPER Banca SpA |
1,167 |
19 | |
|
Terna - Rete Elettrica Nazionale |
1,683 |
19 | |
|
Tenaris SA |
688 |
19 | |
|
Recordati Industria Chimica e Farmaceutica SpA |
224 |
14 | |
|
Snam SpA |
1,955 |
13 | |
|
Banca Mediolanum SpA |
286 |
8 | |
|
Davide Campari-Milano NV |
847 |
6 | |
|
1 |
Infrastrutture Wireless Italiane SpA |
346 |
3 |
|
860 | |||
|
Japan (20.6%) | |||
|
Mitsubishi UFJ Financial Group Inc. |
24,525 |
559 | |
|
Tokyo Electron Ltd. |
975 |
341 | |
|
Recruit Holdings Co. Ltd. |
3,015 |
341 | |
|
Sony Group Corp. |
12,736 |
315 | |
|
Advantest Corp. |
1,505 |
315 | |
|
Mizuho Financial Group Inc. |
5,057 |
269 | |
|
Keyence Corp. |
413 |
215 | |
|
Fast Retailing Co. Ltd. |
432 |
195 | |
|
Hitachi Ltd. |
5,668 |
192 | |
|
Toyota Motor Corp. |
9,760 |
192 | |
|
Tokio Marine Holdings Inc. |
3,974 |
191 | |
4
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Mitsui & Co. Ltd. |
5,972 |
186 | |
|
Sumitomo Mitsui Financial Group Inc. |
4,224 |
181 | |
|
Shin-Etsu Chemical Co. Ltd. |
4,080 |
153 | |
|
SoftBank Group Corp. |
3,974 |
128 | |
|
Fujikura Ltd. |
3,393 |
116 | |
|
Hoya Corp. |
696 |
107 | |
|
Mitsubishi Heavy Industries Ltd. |
4,414 |
107 | |
|
ITOCHU Corp. |
8,034 |
106 | |
|
Daiichi Life Group Inc. |
7,501 |
86 | |
|
Renesas Electronics Corp. |
3,844 |
80 | |
|
MS&AD Insurance Group Holdings Inc. |
2,479 |
79 | |
|
Daikin Industries Ltd. |
603 |
78 | |
|
Nintendo Co. Ltd. |
1,297 |
73 | |
|
Disco Corp. |
195 |
70 | |
|
Daiichi Sankyo Co. Ltd. |
3,893 |
70 | |
|
Chugai Pharmaceutical Co. Ltd. |
1,313 |
57 | |
|
Aeon Co. Ltd. |
5,727 |
49 | |
|
Fujitsu Ltd. |
1,982 |
48 | |
|
Bandai Namco Holdings Inc. |
1,336 |
48 | |
|
Oriental Land Co. Ltd. |
2,484 |
47 | |
|
NEC Corp. |
1,513 |
46 | |
|
TDK Corp. |
2,245 |
43 | |
|
Asics Corp. |
1,509 |
42 | |
|
Otsuka Holdings Co. Ltd. |
548 |
42 | |
|
Marubeni Corp. |
1,341 |
41 | |
|
Ajinomoto Co. Inc. |
1,201 |
40 | |
|
Komatsu Ltd. |
839 |
39 | |
|
FANUC Corp. |
997 |
37 | |
|
Ibiden Co. Ltd. |
279 |
35 | |
|
Lasertec Corp. |
164 |
34 | |
|
SCREEN Holdings Co. Ltd. |
392 |
33 | |
|
SMC Corp. |
72 |
32 | |
|
Terumo Corp. |
2,008 |
32 | |
|
Ryohin Keikaku Co. Ltd. |
1,155 |
31 | |
|
Nomura Research Institute Ltd. |
897 |
30 | |
|
Olympus Corp. |
2,287 |
30 | |
|
Konami Group Corp. |
213 |
29 | |
|
Nomura Holdings Inc. |
2,825 |
29 | |
|
Daifuku Co. Ltd. |
780 |
28 | |
|
Pan Pacific International Holdings Corp. |
5,492 |
28 | |
|
Kawasaki Heavy Industries Ltd. |
1,724 |
27 | |
|
Kawasaki Kisen Kaisha Ltd. |
1,307 |
27 | |
|
Mitsubishi Estate Co. Ltd. |
1,162 |
27 | |
|
IHI Corp. |
1,540 |
26 | |
|
JX Advanced Metals Corp. |
1,107 |
26 | |
|
Ebara Corp. |
863 |
25 | |
|
East Japan Railway Co. |
1,083 |
24 | |
|
Obic Co. Ltd. |
678 |
22 | |
|
Suzuki Motor Corp. |
1,611 |
22 | |
|
Capcom Co. Ltd. |
703 |
19 | |
|
Shionogi & Co. Ltd. |
1,016 |
19 | |
|
NIDEC Corp. |
1,104 |
18 | |
|
Sanrio Co. Ltd. |
2,176 |
18 | |
|
Inpex Corp. |
743 |
18 | |
|
Food & Life Cos. Ltd. |
480 |
18 | |
|
Nitto Denko Corp. |
799 |
17 | |
|
Nippon Yusen KK |
393 |
17 | |
|
T&D Holdings Inc. |
571 |
17 | |
|
Nexon Co. Ltd. |
834 |
17 | |
|
Kikkoman Corp. |
1,381 |
16 | |
|
Nippon Sanso Holdings Corp. |
437 |
16 | |
|
Japan Exchange Group Inc. |
1,043 |
15 | |
|
Zensho Holdings Co. Ltd. |
192 |
14 | |
|
Daiwa Securities Group Inc. |
1,179 |
14 | |
|
Mitsui OSK Lines Ltd. |
319 |
14 | |
|
BayCurrent Inc. |
275 |
14 | |
|
Tokyo Ohka Kogyo Co. Ltd. |
248 |
13 | |
|
Hikari Tsushin Inc. |
48 |
12 | |
|
Kokusai Electric Corp. |
223 |
12 | |
|
SBI Holdings Inc. |
551 |
11 |
5
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Fuji Electric Co. Ltd. |
124 |
11 | |
|
Kajima Corp. |
364 |
11 | |
|
Taisei Corp. |
144 |
11 | |
|
Yokogawa Electric Corp. |
331 |
11 | |
|
Asahi Intecc Co. Ltd. |
484 |
11 | |
|
Sony Financial Group Inc. |
11,211 |
11 | |
|
Seibu Holdings Inc. |
509 |
11 | |
|
Nippon Paint Holdings Co. Ltd. |
1,323 |
10 | |
|
Sanwa Holdings Corp. |
454 |
10 | |
|
Shimano Inc. |
84 |
10 | |
|
Unicharm Corp. |
1,559 |
10 | |
|
M3 Inc. |
877 |
10 | |
|
Keisei Electric Railway Co. Ltd. |
1,003 |
9 | |
|
Nitori Holdings Co. Ltd. |
469 |
9 | |
|
Rohto Pharmaceutical Co. Ltd. |
467 |
9 | |
|
Yaskawa Electric Corp. |
319 |
9 | |
|
Niterra Co. Ltd. |
144 |
8 | |
|
Shimadzu Corp. |
307 |
8 | |
|
Sysmex Corp. |
674 |
8 | |
|
Toho Co. Ltd. |
766 |
8 | |
|
CyberAgent Inc. |
867 |
7 | |
|
Japan Airport Terminal Co. Ltd. |
192 |
7 | |
|
Toyo Suisan Kaisha Ltd. |
113 |
7 | |
|
MatsukiyoCocokara & Co. |
443 |
7 | |
|
Isetan Mitsukoshi Holdings Ltd. |
324 |
7 | |
|
TISI Inc. |
280 |
7 | |
|
* |
Rakuten Bank Ltd. |
183 |
7 |
|
Trend Micro Inc. |
160 |
6 | |
|
USS Co. Ltd. |
514 |
6 | |
|
Kansai Paint Co. Ltd. |
317 |
6 | |
|
MISUMI Group Inc. |
270 |
6 | |
|
Nissan Chemical Corp. |
120 |
6 | |
|
Minebea Mitsumi Inc. |
286 |
6 | |
|
Kakaku.com Inc. |
248 |
6 | |
|
Sapporo Breweries Ltd. |
531 |
6 | |
|
Tokyu Corp. |
551 |
6 | |
|
Internet Initiative Japan Inc. |
287 |
6 | |
|
Kobe Bussan Co. Ltd. |
310 |
6 | |
|
MonotaRO Co. Ltd. |
505 |
6 | |
|
ZOZO Inc. |
862 |
6 | |
|
Open House Group Co. Ltd. |
116 |
6 | |
|
Skylark Holdings Co. Ltd. |
302 |
6 | |
|
McDonald's Holdings Co. Japan Ltd. |
119 |
6 | |
|
Iyogin Holdings Inc. |
238 |
6 | |
|
Square Enix Holdings Co. Ltd. |
292 |
5 | |
|
Hamamatsu Photonics KK |
337 |
5 | |
|
Hirose Electric Co. Ltd. |
28 |
5 | |
|
Kurita Water Industries Ltd. |
100 |
5 | |
|
Maruwa Co. Ltd. |
16 |
5 | |
|
NOF Corp. |
316 |
5 | |
|
Nissin Foods Holdings Co. Ltd. |
285 |
5 | |
|
Ono Pharmaceutical Co. Ltd. |
334 |
5 | |
|
Sankyo Co. Ltd. |
419 |
5 | |
|
Azbil Corp. |
564 |
5 | |
|
GMO Payment Gateway Inc. |
92 |
5 | |
|
Hoshizaki Corp. |
131 |
5 | |
|
Socionext Inc. |
367 |
5 | |
|
Oracle Corp. Japan |
70 |
4 | |
|
Japan Steel Works Ltd. |
84 |
4 | |
|
Kintetsu Group Holdings Co. Ltd. |
165 |
4 | |
|
Kyowa Kirin Co. Ltd. |
223 |
4 | |
|
Santen Pharmaceutical Co. Ltd. |
302 |
4 | |
|
Sega Sammy Holdings Inc. |
212 |
4 | |
|
J Front Retailing Co. Ltd. |
231 |
4 | |
|
Toei Animation Co. Ltd. |
184 |
4 | |
|
Keio Corp. |
547 |
3 | |
|
BIPROGY Inc. |
91 |
3 | |
|
Odakyu Electric Railway Co. Ltd. |
301 |
3 | |
|
Shimamura Co. Ltd. |
136 |
3 | |
|
Kadokawa Corp. |
129 |
3 |
6
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Cosmos Pharmaceutical Corp. |
66 |
3 | |
|
Persol Holdings Co. Ltd. |
1,453 |
3 | |
|
Koei Tecmo Holdings Co. Ltd. |
275 |
3 | |
|
* |
Metaplanet Inc. |
1,679 |
3 |
|
OBIC Business Consultants Co. Ltd. |
38 |
2 | |
|
Sugi Holdings Co. Ltd. |
278 |
2 | |
|
ABC-Mart Inc. |
99 |
2 | |
|
NS Solutions Corp. |
70 |
2 | |
|
Tokyo Metro Co. Ltd. |
258 |
2 | |
|
6,730 | |||
|
Netherlands (5.2%) | |||
|
ASML Holding NV |
803 |
1,361 | |
|
Prosus NV |
2,755 |
123 | |
|
ASM International NV |
96 |
90 | |
|
*,1 |
Adyen NV |
45 |
55 |
|
Universal Music Group NV |
1,582 |
27 | |
|
Wolters Kluwer NV |
321 |
26 | |
|
1,682 | |||
|
New Zealand (0.2%) | |||
|
Fisher & Paykel Healthcare Corp. Ltd. Class C |
920 |
24 | |
|
Infratil Ltd. |
2,056 |
18 | |
|
Auckland International Airport Ltd. |
2,089 |
11 | |
|
Contact Energy Ltd. |
1,178 |
6 | |
|
EBOS Group Ltd. |
239 |
3 | |
|
62 | |||
|
Norway (0.5%) | |||
|
DNB Bank ASA |
1,744 |
59 | |
|
Kongsberg Gruppen ASA |
905 |
31 | |
|
Subsea 7 SA |
475 |
18 | |
|
Mowi ASA |
456 |
10 | |
|
Var Energi ASA |
1,892 |
10 | |
|
Vend Marketplaces ASA |
264 |
7 | |
|
Salmar ASA |
95 |
6 | |
|
Protector Forsikring ASA |
122 |
6 | |
|
* |
Kongsberg Maritime A/S |
903 |
6 |
|
* |
Nordic Semiconductor ASA |
240 |
4 |
|
*,1 |
AutoStore Holdings Ltd. |
2,030 |
4 |
|
TOMRA Systems ASA |
277 |
3 | |
|
Hafnia Ltd. |
243 |
2 | |
|
166 | |||
|
Portugal (0.1%) | |||
|
Galp Energia SGPS SA |
841 |
21 | |
|
Banco Comercial Portugues SA Class R |
11,145 |
14 | |
|
Jeronimo Martins SGPS SA |
378 |
8 | |
|
43 | |||
|
Singapore (1.4%) | |||
|
DBS Group Holdings Ltd. |
4,200 |
256 | |
|
United Overseas Bank Ltd. |
3,000 |
98 | |
|
Singapore Exchange Ltd. |
1,700 |
34 | |
|
Singapore Telecommunications Ltd. |
7,600 |
27 | |
|
Singapore Technologies Engineering Ltd. |
2,500 |
21 | |
|
Keppel Ltd. |
2,000 |
18 | |
|
City Developments Ltd. |
1,200 |
8 | |
|
Sembcorp Industries Ltd. |
1,800 |
8 | |
|
470 | |||
|
South Korea (10.2%) | |||
|
SK Hynix Inc. (XKRX) |
1,106 |
1,339 | |
|
Samsung Electronics Co. Ltd. (XKRX) |
5,459 |
1,031 | |
|
Samsung Electro-Mechanics Co. Ltd. |
66 |
70 | |
|
* |
Samsung SDI Co. Ltd. (XKRX) |
130 |
55 |
|
Hanwha Aerospace Co. Ltd. |
69 |
55 | |
|
NAVER Corp. |
292 |
46 | |
|
KB Financial Group Inc. |
368 |
46 | |
|
Celltrion Inc. |
329 |
45 | |
|
*,1 |
Samsung Biologics Co. Ltd. |
25 |
28 |
|
HD Hyundai Electric Co. Ltd. |
49 |
28 | |
|
Alteogen Inc. |
118 |
27 | |
7
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Samsung C&T Corp. |
94 |
26 | |
|
Korea Shipbuilding & Offshore Engineering Co. Ltd. |
100 |
25 | |
|
* |
Doosan Enerbility Co. Ltd. |
407 |
24 |
|
LS Electric Co. Ltd. |
158 |
24 | |
|
Hyosung Heavy Industries Corp. |
11 |
24 | |
|
* |
LG Energy Solution Ltd. |
87 |
24 |
|
Hyundai Heavy Industries Co. Ltd. |
67 |
22 | |
|
Hana Financial Group Inc. |
171 |
17 | |
|
APR Corp. |
50 |
17 | |
|
HD Hyundai Co. Ltd. |
94 |
15 | |
|
Hyundai Rotem Co. Ltd. |
148 |
15 | |
|
Korea Zinc Co. Ltd. |
15 |
14 | |
|
LIG Defense&Aerospace Co. Ltd. |
28 |
14 | |
|
Hanmi Semiconductor Co. Ltd. |
89 |
14 | |
|
Korea Investment Holdings Co. Ltd. |
93 |
13 | |
|
* |
Meritz Financial Group Inc. |
150 |
13 |
|
Kakao Corp. |
465 |
12 | |
|
Samsung E&A Co. Ltd. |
328 |
11 | |
|
Ecopro Co. Ltd. |
164 |
11 | |
|
KakaoBank Corp. |
717 |
11 | |
|
LG Chem Ltd. (XKRX) |
50 |
10 | |
|
Korea Aerospace Industries Ltd. |
108 |
10 | |
|
Krafton Inc. |
60 |
10 | |
|
Samyang Foods Co. Ltd. |
9 |
10 | |
|
Coway Co. Ltd. |
108 |
8 | |
|
LS Corp. |
34 |
8 | |
|
POSCO Future M Co. Ltd. |
52 |
8 | |
|
Samsung SDS Co. Ltd. |
48 |
8 | |
|
* |
Hanwha Ocean Co. Ltd. |
104 |
7 |
|
Mirae Asset Securities Co. Ltd. |
274 |
7 | |
|
Hyundai Engineering & Construction Co. Ltd. |
84 |
7 | |
|
KIWOOM Securities Co. Ltd. |
34 |
7 | |
|
Hanjin Kal Corp. |
60 |
6 | |
|
Hyundai Glovis Co. Ltd. |
43 |
6 | |
|
Doosan Bobcat Inc. |
136 |
6 | |
|
Ecopro BM Co. Ltd. |
68 |
6 | |
|
HYBE Co. Ltd. |
46 |
6 | |
|
LG CNS Co. Ltd. |
100 |
6 | |
|
S-Oil Corp. |
48 |
5 | |
|
Yuhan Corp. |
84 |
5 | |
|
Hanmi Pharm Co. Ltd. |
13 |
5 | |
|
Hanwha Systems Co. Ltd. |
90 |
5 | |
|
Samsung Securities Co. Ltd. |
60 |
4 | |
|
LG Innotek Co. Ltd. |
8 |
4 | |
|
Orion Corp. |
46 |
4 | |
|
Hyundai Autoever Corp. |
14 |
4 | |
|
PharmaResearch Co. Ltd. |
12 |
4 | |
|
HD Hyundai Marine Solution Co. Ltd. Class C |
28 |
4 | |
|
* |
Samsung Episholdings Co. Ltd. |
14 |
4 |
|
* |
HLB Co. Ltd. |
132 |
3 |
|
* |
Peptron Inc. |
20 |
3 |
|
* |
Rainbow Robotics |
10 |
3 |
|
* |
SKC Co. Ltd. |
24 |
2 |
|
Posco DX Co. Ltd. |
106 |
2 | |
|
* |
LigaChem Biosciences Inc. |
30 |
2 |
|
* |
SK Biopharmaceuticals Co. Ltd. |
36 |
2 |
|
* |
Kakaopay Corp. |
60 |
2 |
|
* |
SK Bioscience Co. Ltd. |
36 |
1 |
|
* |
Doosan Robotics Inc. |
24 |
1 |
|
3,321 | |||
|
Spain (3.4%) | |||
|
Banco Bilbao Vizcaya Argentaria SA |
11,649 |
337 | |
|
Iberdrola SA |
8,247 |
192 | |
|
Banco Santander SA |
11,665 |
171 | |
|
CaixaBank SA |
7,844 |
120 | |
|
Industria de Diseno Textil SA |
1,554 |
104 | |
|
Amadeus IT Group SA |
932 |
63 | |
|
Ferrovial NV |
1,003 |
59 | |
|
*,1 |
Cellnex Telecom SA |
1,167 |
36 |
8
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
1 |
Aena SME SA |
1,178 |
36 |
|
1,118 | |||
|
Sweden (2.6%) | |||
|
Atlas Copco AB Class A |
5,663 |
122 | |
|
Investor AB Class B |
2,289 |
98 | |
|
Skandinaviska Enskilda Banken AB Class A |
2,901 |
68 | |
|
Assa Abloy AB Class B |
1,446 |
54 | |
|
Sandvik AB |
1,253 |
50 | |
|
Atlas Copco AB Class B |
2,703 |
50 | |
|
Saab AB Class B |
652 |
43 | |
|
Epiroc AB Class A |
1,349 |
37 | |
|
Hexagon AB Class B |
2,674 |
28 | |
|
EQT AB |
765 |
27 | |
|
Alfa Laval AB |
414 |
25 | |
|
*,1 |
Evolution AB |
293 |
25 |
|
Svenska Handelsbanken AB Class A |
1,407 |
22 | |
|
* |
Swedish Orphan Biovitrum AB |
456 |
21 |
|
AddTech AB Class B |
535 |
19 | |
|
Epiroc AB Class B |
744 |
17 | |
|
Lifco AB Class B |
462 |
15 | |
|
Indutrade AB |
547 |
14 | |
|
Boliden AB |
232 |
14 | |
|
Industrivarden AB Class C |
237 |
13 | |
|
Beijer Ref AB Class B |
791 |
11 | |
|
Trelleborg AB Class B |
204 |
10 | |
|
Nibe Industrier AB Class B |
2,155 |
10 | |
|
Nordnet AB publ |
268 |
10 | |
|
Industrivarden AB Class A |
151 |
9 | |
|
AAK AB |
378 |
8 | |
|
Sectra AB Class B |
274 |
8 | |
|
Investment AB Latour Class B |
296 |
6 | |
|
Sagax AB Class B |
318 |
6 | |
|
Skandinaviska Enskilda Banken AB Class C |
181 |
4 | |
|
Sweco AB Class B |
265 |
4 | |
|
Svenska Handelsbanken AB Class B |
57 |
1 | |
|
849 | |||
|
Switzerland (7.1%) | |||
|
Roche Holding AG |
824 |
359 | |
|
UBS Group AG (Registered) |
6,168 |
338 | |
|
Novartis AG (Registered) |
2,039 |
310 | |
|
ABB Ltd. (Registered) |
3,167 |
310 | |
|
Cie Financiere Richemont SA Class A (Registered) |
863 |
205 | |
|
Lonza Group AG (Registered) |
145 |
103 | |
|
Galderma Group AG |
379 |
79 | |
|
Sika AG (Registered) |
331 |
78 | |
|
Alcon AG |
1,034 |
75 | |
|
Givaudan SA (Registered) |
17 |
69 | |
|
Swiss Re AG |
290 |
50 | |
|
Geberit AG (Registered) |
65 |
46 | |
|
Partners Group Holding AG |
45 |
41 | |
|
SGS SA (Registered) |
350 |
40 | |
|
Sandoz Group AG |
444 |
37 | |
|
Sonova Holding AG (Registered) |
102 |
29 | |
|
Kuehne & Nagel International AG (Registered) |
110 |
29 | |
|
Logitech International SA (Registered) |
291 |
29 | |
|
Straumann Holding AG (Registered) |
234 |
27 | |
|
Chocoladefabriken Lindt & Spruengli AG |
2 |
22 | |
|
Schindler Holding AG (XSWX) |
57 |
19 | |
|
Roche Holding AG Class BR |
36 |
16 | |
|
EMS-Chemie Holding AG (Registered) |
10 |
10 | |
|
Schindler Holding AG (Registered) |
30 |
10 | |
|
2,331 | |||
|
United Kingdom (10.1%) | |||
|
Rolls-Royce Holdings plc |
17,325 |
352 | |
|
AstraZeneca plc |
2,117 |
341 | |
|
HSBC Holdings plc |
14,663 |
300 | |
|
Unilever plc |
4,506 |
290 | |
|
BAE Systems plc |
6,223 |
171 | |
|
NatWest Group plc |
16,492 |
150 | |
9
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
RELX plc |
3,672 |
132 | |
|
GSK plc |
4,890 |
123 | |
|
London Stock Exchange Group plc |
916 |
111 | |
|
Compass Group plc |
3,516 |
107 | |
|
Reckitt Benckiser Group plc (XLON) |
1,320 |
91 | |
|
Barclays plc |
12,740 |
85 | |
|
3i Group plc |
2,119 |
80 | |
|
Experian plc |
1,858 |
76 | |
|
Lloyds Banking Group plc |
49,743 |
73 | |
|
* |
ARM Holdings plc ADR |
286 |
69 |
|
Haleon plc |
12,679 |
63 | |
|
InterContinental Hotels Group plc |
310 |
50 | |
|
Next plc |
234 |
49 | |
|
Standard Chartered plc |
1,548 |
45 | |
|
Coca-Cola Europacific Partners plc |
421 |
45 | |
|
SSE plc |
1,219 |
40 | |
|
Halma plc |
787 |
38 | |
|
Informa plc |
2,611 |
32 | |
|
Admiral Group plc |
560 |
30 | |
|
Sage Group plc |
1,908 |
28 | |
|
Intertek Group plc |
320 |
25 | |
|
Coca-Cola HBC AG Class DI |
409 |
25 | |
|
Rentokil Initial plc |
4,932 |
23 | |
|
Smiths Group plc |
628 |
22 | |
|
Centrica plc |
9,592 |
20 | |
|
* |
Wise Group plc Class A |
1,434 |
19 |
|
Diploma plc |
160 |
16 | |
|
ICG plc |
584 |
16 | |
|
United Utilities Group plc |
827 |
16 | |
|
Smith & Nephew plc |
946 |
14 | |
|
Severn Trent plc |
324 |
14 | |
|
Pearson plc |
769 |
13 | |
|
Marks & Spencer Group plc |
2,480 |
13 | |
|
Bunzl plc |
348 |
13 | |
|
1 |
Autotrader Group plc |
1,667 |
12 |
|
Whitbread plc |
345 |
11 | |
|
International Consolidated Airlines Group SA Class DI |
1,916 |
11 | |
|
Zegona Communications plc |
440 |
10 | |
|
Plus500 Ltd. |
144 |
7 | |
|
Melrose Industries plc (XLON) |
1,037 |
7 | |
|
1 |
Airtel Africa plc |
1,004 |
4 |
|
3,282 | |||
|
United States (1.1%) | |||
|
* |
Spotify Technology SA |
183 |
100 |
|
* |
Sea Ltd. ADR |
517 |
59 |
|
* |
ICON plc |
158 |
26 |
|
* |
Check Point Software Technologies Ltd. |
165 |
23 |
|
* |
JFrog Ltd. |
218 |
22 |
|
* |
BioNTech SE ADR |
204 |
21 |
|
* |
Ascendis Pharma A/S |
64 |
17 |
|
Futu Holdings Ltd. ADR |
127 |
16 | |
|
* |
Grab Holdings Ltd. Class A |
4,546 |
16 |
|
* |
Amer Sports Inc. |
337 |
10 |
|
* |
Monday.com Ltd. |
84 |
9 |
|
* |
Global-e Online Ltd. |
224 |
8 |
|
* |
Bending Spoons SpA |
121 |
5 |
|
* |
Cellebrite DI Ltd. |
251 |
3 |
|
* |
Wix.com Ltd. |
27 |
2 |
|
* |
Etoro Group Ltd. Class A |
66 |
2 |
|
* |
Bullish |
64 |
2 |
|
* |
Oddity Tech Ltd. Class A |
83 |
1 |
|
* |
Pagaya Technologies Ltd. Class A |
50 |
1 |
|
* |
Klarna Group plc |
71 |
1 |
|
* |
Innio NV |
65 |
1 |
|
345 | |||
|
Total Common Stocks (Cost $30,322) |
32,574 | ||
|
Preferred Stocks (0.1%) | |||
|
Sartorius AG Preference Shares |
52 |
15 | |
10
Developed Markets ex-US Growth Index ETF
|
Shares |
Market Value• ($000) | ||
|
Mirae Asset Securities Co. Ltd. Preference Shares (XKRX) |
617 |
5 | |
|
Edison SpA Preference Shares |
250 |
1 | |
|
Total Preferred Stocks (Cost $20) |
21 | ||
|
Temporary Cash Investments (0.0%) | |||
|
Money Market Fund (0.0%) | |||
|
2 |
Vanguard Market Liquidity Fund, 3.731% (Cost $8) |
76 |
8 |
|
Total Investments (99.8%) (Cost $30,350) |
32,603 | ||
|
Other Assets and Liabilities—Net (0.2%) |
63 | ||
|
Net Assets (100%) |
32,666 | ||
|
Cost is in $000. | |||
|
• |
See Note A in Notes to Financial Statements. |
|
* |
Non-income-producing security. |
|
1 |
Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2026, the aggregate value was $258, representing 0.8% of net assets. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
ADR—American Depositary Receipt. | |
|
GDR—Global Depositary Receipt. | |
|
REIT—Real Estate Investment Trust. |
See accompanying Notes, which are an integral part of the Financial Statements.
11
Developed Markets ex-US Growth Index ETF
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value |
|
|
Unaffiliated Issuers (Cost $30,342) |
32,595 |
|
Affiliated Issuers (Cost $8) |
8 |
|
Total Investments in Securities |
32,603 |
|
Investment in Vanguard |
1 |
|
Foreign Currency, at Value (Cost $23) |
23 |
|
Receivables for Accrued Income |
40 |
|
Total Assets |
32,667 |
|
Liabilities |
|
|
Payables to Vanguard |
1 |
|
Total Liabilities |
1 |
|
Net Assets |
32,666 |
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
30,351 |
|
Total Distributable Earnings (Loss) |
2,315 |
|
Net Assets |
32,666 |
|
Net Assets |
|
|
Applicable to 400,000 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
32,666 |
|
Net Asset Value Per Share |
$81.67 |
See accompanying Notes, which are an integral part of the Financial Statements.
12
Developed Markets ex-US Growth Index ETF
Statement of Operations
|
April 14, 20261 to
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends2 |
180 |
|
Interest3 |
— |
|
Total Income |
180 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Management and Administrative |
— |
|
Auditing Fees |
51 |
|
Accounting Fees |
18 |
|
Shareholders’ Reports |
1 |
|
Trustees’ Fees and Expenses |
— |
|
Professional Services |
4 |
|
Total Expenses |
74 |
|
Expense Reduction—Note C |
(65 ) |
|
Net Expenses |
9 |
|
Net Investment Income |
171 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold3 |
(6 ) |
|
Futures Contracts |
6 |
|
Forward Currency Contracts |
— |
|
Foreign Currencies |
(7 ) |
|
Realized Net Gain (Loss) |
(7 ) |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities3 |
2,253 |
|
Foreign Currencies |
— |
|
Change in Unrealized Appreciation (Depreciation) of Investment Securities |
2,253 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,417 |
|
1 |
Inception. |
|
2 |
Dividends are net of foreign withholding taxes of $27. |
|
3 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were each less than $1. Purchases and sales are for temporary cash investment purposes. |
See accompanying Notes, which are an integral part of the Financial Statements.
13
Developed Markets ex-US Growth Index ETF
Statement of Changes in Net Assets
|
April 14, 20261 to
August 31, 2026 | |
|
($000) | |
|
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net Investment Income |
171 |
|
Realized Net Gain (Loss) |
(7 ) |
|
Change in Unrealized Appreciation (Depreciation) |
2,253 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
2,417 |
|
Distributions |
|
|
Total Distributions |
(102 ) |
|
Capital Share Transactions |
|
|
Issued |
30,352 |
|
Issued in Lieu of Cash Distributions |
— |
|
Redeemed |
(1 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
30,351 |
|
Total Increase (Decrease) |
32,666 |
|
Net Assets |
|
|
Beginning of Period |
— |
|
End of Period |
32,666 |
|
1 |
Inception. |
See accompanying Notes, which are an integral part of the Financial Statements.
14
Developed Markets ex-US Growth Index ETF
Financial Highlights
|
For a Share Outstanding
Throughout the Period |
April 14, 20261 to
August 31, 2026 |
|
Net Asset Value, Beginning of Period |
$75.00 |
|
Investment Operations |
|
|
Net Investment Income2 |
.471 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
6.453 |
|
Total from Investment Operations |
6.924 |
|
Distributions |
|
|
Dividends from Net Investment Income |
(.254) |
|
Distributions from Realized Capital Gains |
— |
|
Total Distributions |
(.254) |
|
Net Asset Value, End of Period |
$81.67 |
|
Total Return |
9.23% |
|
Ratios/Supplemental Data |
|
|
Net Assets, End of Period (Millions) |
$33 |
|
Ratio of Total Expenses to Average Net Assets |
0.08%3,4 |
|
Ratio of Net Investment Income to Average Net Assets |
1.56%3 |
|
Portfolio Turnover Rate5 |
1% |
|
1 |
Inception. |
|
2 |
Calculated based on average shares outstanding. |
|
3 |
Annualized. |
|
4 |
Vanguard and the board of trustees have agreed to temporarily assume certain expenses (representing an annual rate of 0.30% of the fund's average net assets) to maintain a total expense ratio of 0.08%. The fund will not be required to reimburse Vanguard for these amounts. |
|
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, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
15
Developed Markets ex-US Growth Index ETF
Notes to Financial Statements
Vanguard Developed Markets ex-US Growth Index ETF is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. ETF Shares are listed for trading on Cboe BZX Exchange, Inc.; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the period ended August 31, 2026, the fund’s average investments in long and short futures contracts represented 0% of net assets, based on the average of the notional amounts at each quarter-end during the period. The fund had no open futures contracts at August 31, 2026.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. Risks associated with these types of forward currency contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on forward currency contracts.
During the period ended August 31, 2026, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of the notional amounts at each quarter-end during the period. The fund had no open forward currency contracts at August 31, 2026.
16
Developed Markets ex-US Growth Index ETF
5. Federal Income Taxes: The fund intends to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
7. Credit Facility and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in an uncommitted credit facility provided by Vanguard, which may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. Any borrowings under the facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate, or based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the period ended August 31, 2026, the fund did not utilize the credit facility or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Capital Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $1,000, representing less than 0.01% of the fund’s net assets and less than 0.01% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Vanguard and the board of trustees have agreed to temporarily assume certain expenses to maintain a total annual expense ratio of 0.08%. For the period ended August 31, 2026, the fund’s expenses were reduced by $65,000 (an effective annual rate of 0.30% of the fund’s average net assets).
D.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks—North and South America |
3,855 |
— |
— |
3,855 |
|
Common Stocks—Other |
114 |
28,605 |
— |
28,719 |
|
Preferred Stocks |
— |
21 |
— |
21 |
|
Temporary Cash Investments |
8 |
— |
— |
8 |
|
Total |
3,977 |
28,626 |
— |
32,603 |
17
Developed Markets ex-US Growth Index ETF
E.
Realized net gain (loss) on derivatives for the period ended August 31, 2026, were:
|
Realized Net Gain (Loss) on Derivatives |
Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
|
Futures Contracts |
6 |
— |
6 |
|
Forward Currency Contracts |
— |
— |
— |
|
Realized Net Gain (Loss) on Derivatives |
6 |
— |
6 |
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
112 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
2,210 |
|
Capital Loss Carryforwards |
— |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
(7) |
|
Total |
2,315 |
The tax character of distributions paid was as follows:
|
Period Ended August 31, | |
|
2026
Amount
($000) | |
|
Ordinary Income* |
102 |
|
Long-Term Capital Gains |
— |
|
Total |
102 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
30,391 |
|
Gross Unrealized Appreciation |
3,216 |
|
Gross Unrealized Depreciation |
(1,004) |
|
Net Unrealized Appreciation (Depreciation) |
2,212 |
G.
During the period ended August 31, 2026, the fund purchased $3,142,000 of investment securities and sold $198,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $27,404,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
18
Developed Markets ex-US Growth Index ETF
H.
Capital shares issued and redeemed were:
|
April 14, 20261 to
August 31, 2026 | |
|
Shares
(000) | |
|
Issued |
400 |
|
Issued in Lieu of Cash Distributions |
— |
|
Redeemed |
— |
|
Net Increase (Decrease) in Shares Outstanding |
400 |
|
1 |
Inception. |
I.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
J.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
K.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
19
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Developed Markets ex-US Growth Index ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Developed Markets ex-US Growth Index ETF (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period April 14, 2026 (inception) through August 31, 2026 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, and the results of its operations, changes in its net assets, and the financial highlights for the period April 14, 2026 (inception) through August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian and transfer agent. We believe that our audit provides a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
20
The fund designates to shareholders foreign source income of $199,000 and foreign taxes paid of $19,000, or if subsequently determined to be different, the maximum amounts allowable by law. Form 1099-DIV reports calendar-year amounts that can be included on the income tax return of shareholders.
QV0710 102026
21
Financial Statements
For the period ended August 31, 2026
Vanguard Developed Markets ex-US Value Index ETF
Contents
|
1 | |
|
22 | |
|
23 | |
Developed Markets ex-US Value Index ETF
Financial Statements
Schedule of Investments
As of August 31, 2026
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
|
Shares |
Market
Value•
($000) | ||
|
Common Stocks (98.5%) | |||
|
Australia (6.7%) | |||
|
BHP Group Ltd. |
11,605 |
546 | |
|
ANZ Group Holdings Ltd. |
6,873 |
183 | |
|
National Australia Bank Ltd. |
5,308 |
146 | |
|
Westpac Banking Corp. |
5,513 |
136 | |
|
Rio Tinto Ltd. |
852 |
106 | |
|
Woodside Energy Group Ltd. |
4,336 |
101 | |
|
Woolworths Group Ltd. |
2,174 |
63 | |
|
Northern Star Resources Ltd. |
3,263 |
55 | |
|
Coles Group Ltd. |
3,064 |
53 | |
|
Fortescue Ltd. |
3,791 |
48 | |
|
Macquarie Group Ltd. |
266 |
48 | |
|
Santos Ltd. |
7,412 |
43 | |
|
Wesfarmers Ltd. |
697 |
40 | |
|
South32 Ltd. |
10,263 |
38 | |
|
Suncorp Group Ltd. |
2,477 |
33 | |
|
Scentre Group |
11,943 |
31 | |
|
Telstra Group Ltd. |
8,911 |
30 | |
|
Goodman Group |
1,403 |
28 | |
|
Transurban Group |
2,501 |
26 | |
|
Washington H Soul Pattinson & Co. Ltd. |
819 |
26 | |
|
APA Group |
3,023 |
23 | |
|
BlueScope Steel Ltd. |
993 |
22 | |
|
* |
Mineral Resources Ltd. |
399 |
18 |
|
Stockland |
5,495 |
17 | |
|
Ampol Ltd. |
540 |
17 | |
|
Ramsay Health Care Ltd. |
430 |
16 | |
|
Sonic Healthcare Ltd. |
1,118 |
16 | |
|
Vicinity Ltd. |
9,053 |
16 | |
|
GPT Group |
4,339 |
15 | |
|
Mirvac Group |
8,939 |
12 | |
|
Bendigo & Adelaide Bank Ltd. |
1,331 |
10 | |
|
Computershare Ltd. (XASX) |
354 |
10 | |
|
Dexus |
2,432 |
10 | |
|
Aurizon Holdings Ltd. |
3,861 |
10 | |
|
Sigma Healthcare Ltd. |
4,642 |
9 | |
|
Orica Ltd. |
596 |
9 | |
|
Cleanaway Waste Management Ltd. |
5,078 |
9 | |
|
Medibank Pvt Ltd. |
2,500 |
9 | |
|
Worley Ltd. |
1,037 |
8 | |
|
AGL Energy Ltd. |
1,358 |
8 | |
|
Endeavour Group Ltd. |
3,457 |
8 | |
|
ASX Ltd. |
166 |
7 | |
|
* |
Treasury Wine Estates Ltd. |
1,831 |
7 |
|
* |
Lynas Rare Earths Ltd. |
515 |
6 |
|
Charter Hall Group |
435 |
6 | |
|
JB Hi-Fi Ltd. |
96 |
5 | |
|
ALS Ltd. |
328 |
5 | |
|
a2 Milk Co. Ltd. |
1,033 |
5 | |
|
* |
NEXTDC Ltd. |
458 |
4 |
|
Steadfast Group Ltd. |
887 |
4 | |
|
Yancoal Australia Ltd. |
898 |
4 | |
|
Atlas Arteria Ltd. |
1,059 |
3 | |
|
TPG Telecom Ltd. |
1,022 |
3 | |
|
Reece Ltd. |
265 |
3 | |
|
SGH Ltd. |
116 |
3 | |
|
SEEK Ltd. |
240 |
2 | |
|
2,119 | |||
1
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Austria (0.2%) | |||
|
OMV AG |
330 |
26 | |
|
Raiffeisen Bank International AG |
290 |
21 | |
|
voestalpine AG |
238 |
13 | |
|
Vienna Insurance Group AG Wiener Versicherung Gruppe |
81 |
7 | |
|
Strabag SE Class BR |
36 |
4 | |
|
EVN AG |
80 |
3 | |
|
Telekom Austria AG |
165 |
2 | |
|
76 | |||
|
Belgium (1.0%) | |||
|
Anheuser-Busch InBev SA NV |
2,253 |
178 | |
|
* |
Argenx SE |
41 |
42 |
|
Ageas SA |
325 |
28 | |
|
UCB SA |
100 |
25 | |
|
Groupe Bruxelles Lambert NV |
170 |
15 | |
|
Ackermans & van Haaren NV |
22 |
7 | |
|
Elia Group SA |
46 |
7 | |
|
Financiere de Tubize SA |
24 |
5 | |
|
307 | |||
|
Canada (10.6%) | |||
|
Bank of Nova Scotia |
2,810 |
257 | |
|
Enbridge Inc. |
4,986 |
253 | |
|
Brookfield Corp. |
4,872 |
201 | |
|
Suncor Energy Inc. |
2,692 |
180 | |
|
Bank of Montreal |
1,001 |
171 | |
|
Barrick Mining Corp. (XTSE) |
3,820 |
171 | |
|
Manulife Financial Corp. |
3,832 |
162 | |
|
TC Energy Corp. |
2,396 |
150 | |
|
Canadian Natural Resources Ltd. |
2,938 |
147 | |
|
Cenovus Energy Inc. |
3,079 |
99 | |
|
Sun Life Financial Inc. |
1,262 |
99 | |
|
Agnico Eagle Mines Ltd. |
437 |
89 | |
|
Nutrien Ltd. |
1,097 |
83 | |
|
Power Corp. of Canada |
1,207 |
80 | |
|
Canadian Pacific Kansas City Ltd. |
773 |
72 | |
|
Pembina Pipeline Corp. |
1,355 |
66 | |
|
Fortis Inc. (XTSE) |
1,159 |
64 | |
|
Cameco Corp. |
634 |
63 | |
|
Restaurant Brands International Inc. |
792 |
62 | |
|
Canadian National Railway Co. |
461 |
58 | |
|
Wheaton Precious Metals Corp. |
355 |
53 | |
|
* |
First Quantum Minerals Ltd. |
1,541 |
51 |
|
Pan American Silver Corp. |
961 |
50 | |
|
Teck Resources Ltd. Class B |
660 |
45 | |
|
Franco-Nevada Corp. |
169 |
44 | |
|
Brookfield Asset Management Ltd. Class A (XTSE) |
860 |
44 | |
|
Great-West Lifeco Inc. |
600 |
39 | |
|
Magna International Inc. |
584 |
38 | |
|
Kinross Gold Corp. |
1,179 |
36 | |
|
Emera Inc. |
696 |
35 | |
|
Rogers Communications Inc. Class B |
883 |
33 | |
|
iA Financial Corp. Inc. |
205 |
29 | |
|
AltaGas Ltd. |
713 |
28 | |
|
1 |
Hydro One Ltd. |
727 |
28 |
|
George Weston Ltd. |
353 |
25 | |
|
Intact Financial Corp. |
123 |
24 | |
|
Tourmaline Oil Corp. |
539 |
24 | |
|
Lundin Mining Corp. |
806 |
22 | |
|
Loblaw Cos. Ltd. |
422 |
18 | |
|
BCE Inc. |
696 |
16 | |
|
Saputo Inc. |
550 |
16 | |
|
Open Text Corp. |
555 |
14 | |
|
Metro Inc. |
189 |
12 | |
|
WSP Global Inc. |
91 |
12 | |
|
TELUS Corp. |
1,184 |
11 | |
|
Empire Co. Ltd. Class A |
291 |
10 | |
|
CCL Industries Inc. Class B |
137 |
9 | |
|
Thomson Reuters Corp. |
80 |
9 | |
|
* |
CAE Inc. |
326 |
8 |
2
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Toromont Industries Ltd. |
59 |
8 | |
|
GFL Environmental Inc. |
185 |
8 | |
|
AtkinsRealis Group Inc. |
114 |
7 | |
|
Brookfield Wealth Solutions Ltd. |
88 |
4 | |
|
3,337 | |||
|
China (0.1%) | |||
|
* |
Z AI Co. Ltd. |
84 |
13 |
|
* |
Minimax Group Inc. |
166 |
7 |
|
20 | |||
|
Denmark (1.0%) | |||
|
Danske Bank A/S |
1,470 |
85 | |
|
Vestas Wind Systems A/S |
2,267 |
75 | |
|
AP Moller - Maersk A/S Class B |
9 |
30 | |
|
Carlsberg A/S Class B |
204 |
28 | |
|
Novonesis Novozymes B Class B |
334 |
24 | |
|
AP Moller - Maersk A/S Class A |
7 |
23 | |
|
*,1 |
Orsted A/S |
1,059 |
23 |
|
Tryg A/S |
719 |
17 | |
|
Coloplast A/S Class B |
116 |
8 | |
|
313 | |||
|
Finland (1.5%) | |||
|
Nokia OYJ |
12,330 |
126 | |
|
Nordea Bank Abp |
4,014 |
82 | |
|
Sampo OYJ Class A (XHEL) |
5,687 |
64 | |
|
Neste OYJ |
984 |
37 | |
|
UPM-Kymmene OYJ |
1,211 |
34 | |
|
Kone OYJ Class B |
402 |
25 | |
|
Fortum OYJ |
1,008 |
24 | |
|
Kesko OYJ Class B |
619 |
16 | |
|
Stora Enso OYJ Class R |
1,391 |
16 | |
|
Metso OYJ |
753 |
16 | |
|
Elisa OYJ |
326 |
13 | |
|
Wartsila OYJ Abp |
383 |
12 | |
|
465 | |||
|
France (6.7%) | |||
|
TotalEnergies SE (TQEX) |
4,783 |
421 | |
|
BNP Paribas SA |
2,266 |
270 | |
|
Sanofi SA |
2,432 |
216 | |
|
AXA SA |
3,798 |
190 | |
|
Societe Generale SA |
1,510 |
127 | |
|
Safran SA |
326 |
127 | |
|
Air Liquide SA (XPAR) |
476 |
94 | |
|
Engie SA (XPAR) |
2,902 |
83 | |
|
Orange SA |
4,375 |
78 | |
|
Vinci SA |
512 |
67 | |
|
Cie Generale des Etablissements Michelin SCA |
1,567 |
64 | |
|
Veolia Environnement SA |
1,523 |
58 | |
|
Credit Agricole SA |
2,551 |
55 | |
|
Danone SA |
715 |
53 | |
|
Cie de Saint-Gobain SA |
397 |
36 | |
|
Pernod Ricard SA |
455 |
34 | |
|
Publicis Groupe SA |
265 |
31 | |
|
Legrand SA |
144 |
23 | |
|
Bouygues SA |
432 |
22 | |
|
Kering SA |
67 |
20 | |
|
Thales SA |
63 |
18 | |
|
Capgemini SE |
117 |
14 | |
|
Bollore SE |
1,590 |
7 | |
|
Dassault Aviation SA |
16 |
5 | |
|
2,113 | |||
|
Germany (5.9%) | |||
|
Allianz SE (Registered) |
871 |
454 | |
|
Siemens AG (Registered) |
628 |
208 | |
|
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) |
289 |
174 | |
|
Deutsche Post AG |
2,097 |
136 | |
|
Siemens Energy AG |
817 |
135 | |
|
Bayer AG (Registered) |
2,240 |
128 | |
|
Deutsche Telekom AG (Registered) |
3,836 |
126 | |
3
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
BASF SE |
2,036 |
125 | |
|
Mercedes-Benz Group AG |
1,646 |
90 | |
|
Bayerische Motoren Werke AG (XETR) |
726 |
52 | |
|
Fresenius SE & Co. KGaA |
939 |
49 | |
|
Vonovia SE |
1,937 |
43 | |
|
Hannover Rueck SE |
137 |
41 | |
|
adidas AG |
163 |
29 | |
|
Continental AG |
245 |
20 | |
|
Talanx AG |
137 |
20 | |
|
Henkel AG & Co. KGaA (XTER) |
218 |
18 | |
|
1 |
Siemens Healthineers AG |
208 |
9 |
|
Volkswagen AG |
68 |
6 | |
|
Traton SE |
136 |
6 | |
|
1,869 | |||
|
Hong Kong (1.4%) | |||
|
AIA Group Ltd. |
11,524 |
111 | |
|
CK Hutchison Holdings Ltd. |
6,247 |
56 | |
|
Sun Hung Kai Properties Ltd. |
3,485 |
51 | |
|
Jardine Matheson Holdings Ltd. |
472 |
28 | |
|
CK Asset Holdings Ltd. |
4,453 |
26 | |
|
BOC Hong Kong Holdings Ltd. |
3,258 |
22 | |
|
Hongkong Land Holdings Ltd. |
2,300 |
19 | |
|
CLP Holdings Ltd. |
1,461 |
15 | |
|
Henderson Land Development Co. Ltd. |
3,085 |
11 | |
|
Power Assets Holdings Ltd. |
1,370 |
11 | |
|
Sino Land Co. Ltd. |
8,666 |
11 | |
|
Swire Pacific Ltd. Class A |
831 |
11 | |
|
Galaxy Entertainment Group Ltd. |
1,547 |
7 | |
|
Swire Properties Ltd. |
2,236 |
7 | |
|
MTR Corp. Ltd. |
1,373 |
6 | |
|
Wharf Holdings Ltd. |
2,155 |
5 | |
|
Sands China Ltd. |
3,037 |
5 | |
|
CK Infrastructure Holdings Ltd. |
620 |
5 | |
|
Zijin Gold International Co. Ltd. |
255 |
5 | |
|
1 |
BOC Aviation Ltd. |
472 |
4 |
|
HKT Trust & HKT Ltd. |
2,694 |
4 | |
|
DFI Retail Group Holdings Ltd. (Registered) |
700 |
3 | |
|
Cathay Pacific Airways Ltd. |
1,075 |
2 | |
|
Swire Pacific Ltd. Class B |
1,199 |
2 | |
|
HK Electric Investments & HK Electric Investments Ltd. |
2,223 |
2 | |
|
1 |
Budweiser Brewing Co. APAC Ltd. |
1,595 |
1 |
|
430 | |||
|
Ireland (0.2%) | |||
|
Bank of Ireland Group plc |
2,171 |
48 | |
|
Kerry Group plc Class A |
125 |
12 | |
|
60 | |||
|
Israel (1.5%) | |||
|
* |
Teva Pharmaceutical Industries Ltd. ADR |
2,654 |
96 |
|
* |
Tower Semiconductor Ltd. |
257 |
53 |
|
Bank Hapoalim BM |
1,556 |
40 | |
|
Bank Leumi Le-Israel BM |
1,584 |
40 | |
|
Phoenix Financial Ltd. |
521 |
33 | |
|
Israel Discount Bank Ltd. Class A |
2,800 |
32 | |
|
Mizrahi Tefahot Bank Ltd. |
350 |
27 | |
|
* |
Nova Ltd. |
72 |
25 |
|
Harel Insurance Investments & Financial Services Ltd. |
253 |
16 | |
|
Clal Insurance Enterprises Holdings Ltd. |
150 |
13 | |
|
ICL Group Ltd. |
1,637 |
9 | |
|
* |
Migdal Insurance & Financial Holdings Ltd. |
1,081 |
7 |
|
Delek Group Ltd. |
210 |
6 | |
|
Shufersal Ltd. |
454 |
6 | |
|
Azrieli Group Ltd. |
43 |
6 | |
|
Mivne Real Estate KD Ltd. |
1,296 |
6 | |
|
Strauss Group Ltd. |
130 |
5 | |
|
Menora Mivtachim Holdings Ltd. |
27 |
5 | |
|
* |
Camtek Ltd. |
39 |
5 |
|
Alony Hetz Properties & Investments Ltd. |
378 |
4 | |
|
Melisron Ltd. |
28 |
4 | |
|
Amot Investments Ltd. |
547 |
4 | |
4
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
FIBI Holdings Ltd. |
40 |
4 | |
|
* |
Shikun & Binui Ltd. |
469 |
3 |
|
Israel Corp. Ltd. |
90 |
3 | |
|
Electra Ltd. |
48 |
2 | |
|
Matrix IT Ltd. |
57 |
2 | |
|
* |
Airport City Ltd. |
123 |
2 |
|
Shapir Engineering & Industry Ltd. |
146 |
2 | |
|
* |
Fattal Holdings 1998 Ltd. |
9 |
2 |
|
Gav-Yam Lands Corp. Ltd. |
56 |
1 | |
|
Ashtrom Group Ltd. |
64 |
1 | |
|
* |
Delek Yizum Nechasim Ltd. |
21 |
— |
|
464 | |||
|
Italy (2.9%) | |||
|
Intesa Sanpaolo SpA |
22,549 |
178 | |
|
Generali |
2,393 |
124 | |
|
Eni SpA |
4,554 |
124 | |
|
Enel SpA |
10,807 |
118 | |
|
Banca Monte dei Paschi di Siena SpA |
4,920 |
66 | |
|
Banco BPM SpA |
3,456 |
64 | |
|
BPER Banca SpA |
2,185 |
36 | |
|
Unipol Assicurazioni SpA |
1,034 |
34 | |
|
Poste Italiane SpA |
1,045 |
34 | |
|
STMicroelectronics NV |
658 |
33 | |
|
Prysmian SpA |
195 |
27 | |
|
* |
Stellantis NV |
4,642 |
26 |
|
Leonardo SpA |
298 |
18 | |
|
Snam SpA |
2,514 |
17 | |
|
Terna - Rete Elettrica Nazionale |
1,349 |
15 | |
|
Banca Mediolanum SpA |
243 |
7 | |
|
Davide Campari-Milano NV |
374 |
3 | |
|
1 |
Infrastrutture Wireless Italiane SpA |
346 |
2 |
|
926 | |||
|
Japan (22.8%) | |||
|
Toyota Motor Corp. |
16,248 |
319 | |
|
Mitsubishi Corp. |
8,446 |
253 | |
|
Murata Manufacturing Co. Ltd. |
4,210 |
187 | |
|
Sumitomo Mitsui Financial Group Inc. |
4,085 |
175 | |
|
Mitsubishi Electric Corp. |
4,773 |
165 | |
|
Panasonic Holdings Corp. |
5,603 |
156 | |
|
SoftBank Group Corp. |
4,478 |
144 | |
|
Hitachi Ltd. |
4,086 |
139 | |
|
Takeda Pharmaceutical Co. Ltd. |
3,666 |
133 | |
|
* |
Kioxia Holdings Corp. |
424 |
131 |
|
Sumitomo Corp. |
10,780 |
120 | |
|
KDDI Corp. |
6,383 |
118 | |
|
Japan Tobacco Inc. |
2,508 |
108 | |
|
ORIX Corp. |
2,578 |
100 | |
|
Sumitomo Electric Industries Ltd. |
7,252 |
100 | |
|
Softbank Corp. |
65,595 |
97 | |
|
ITOCHU Corp. |
7,305 |
96 | |
|
Honda Motor Co. Ltd. |
8,916 |
95 | |
|
Sompo Holdings Inc. |
2,135 |
91 | |
|
Japan Post Bank Co. Ltd. |
4,088 |
87 | |
|
Resona Holdings Inc. |
5,271 |
83 | |
|
Toyota Tsusho Corp. |
1,630 |
76 | |
|
Kyocera Corp. |
3,209 |
73 | |
|
NTT Inc. |
68,071 |
73 | |
|
Sumitomo Mitsui Trust Group Inc. |
6,380 |
71 | |
|
Marubeni Corp. |
2,308 |
71 | |
|
Bridgestone Corp. |
2,688 |
69 | |
|
Nintendo Co. Ltd. |
1,218 |
69 | |
|
Seven & i Holdings Co. Ltd. |
5,474 |
69 | |
|
Mitsubishi Heavy Industries Ltd. |
2,800 |
68 | |
|
Astellas Pharma Inc. |
4,139 |
61 | |
|
Canon Inc. |
2,056 |
60 | |
|
FUJIFILM Holdings Corp. |
2,843 |
60 | |
|
Mitsui Fudosan Co. Ltd. |
6,291 |
60 | |
|
Japan Post Holdings Co. Ltd. |
3,754 |
58 | |
|
Komatsu Ltd. |
1,196 |
55 | |
5
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Central Japan Railway Co. |
2,178 |
54 | |
|
Denso Corp. |
4,462 |
54 | |
|
ENEOS Holdings Inc. |
6,201 |
52 | |
|
Nippon Steel Corp. |
12,270 |
51 | |
|
Kao Corp. |
2,162 |
49 | |
|
Sumitomo Realty & Development Co. Ltd. |
2,145 |
45 | |
|
NEC Corp. |
1,426 |
43 | |
|
Sumitomo Metal Mining Co. Ltd. |
629 |
43 | |
|
Otsuka Holdings Co. Ltd. |
565 |
43 | |
|
Fujitsu Ltd. |
1,759 |
42 | |
|
Ibiden Co. Ltd. |
334 |
42 | |
|
Kubota Corp. |
2,299 |
42 | |
|
Daiwa House Industry Co. Ltd. |
1,393 |
41 | |
|
Kansai Electric Power Co. Inc. |
2,324 |
41 | |
|
Resonac Holdings Corp. |
423 |
41 | |
|
Furukawa Electric Co. Ltd. |
1,610 |
40 | |
|
FANUC Corp. |
1,002 |
38 | |
|
Secom Co. Ltd. |
930 |
38 | |
|
Suzuki Motor Corp. |
2,712 |
38 | |
|
TDK Corp. |
1,946 |
37 | |
|
Asahi Group Holdings Ltd. |
3,444 |
36 | |
|
Nomura Holdings Inc. |
3,519 |
36 | |
|
Kirin Holdings Co. Ltd. |
1,845 |
35 | |
|
Mitsubishi Estate Co. Ltd. |
1,478 |
35 | |
|
Asahi Kasei Corp. |
3,096 |
32 | |
|
Osaka Gas Co. Ltd. |
901 |
32 | |
|
Sekisui House Ltd. |
1,485 |
32 | |
|
Yokohama Financial Group Inc. |
2,595 |
32 | |
|
Inpex Corp. |
1,286 |
32 | |
|
Chubu Electric Power Co. Inc. |
1,719 |
31 | |
|
East Japan Railway Co. |
1,381 |
31 | |
|
Chiba Bank Ltd. |
1,691 |
30 | |
|
Obayashi Corp. |
1,458 |
27 | |
|
Tokyo Gas Co. Ltd. |
707 |
27 | |
|
Toray Industries Inc. |
3,410 |
27 | |
|
Yamaha Motor Co. Ltd. |
2,307 |
27 | |
|
SMC Corp. |
56 |
25 | |
|
Shizuoka Financial Group Inc. |
1,091 |
25 | |
|
Ajinomoto Co. Inc. |
725 |
24 | |
|
Nippon Yusen KK |
538 |
24 | |
|
Rohm Co. Ltd. |
777 |
24 | |
|
Mitsubishi Chemical Group Corp. |
3,104 |
23 | |
|
Mebuki Financial Group Inc. |
2,147 |
23 | |
|
Daiwa Securities Group Inc. |
1,855 |
21 | |
|
Subaru Corp. |
1,284 |
21 | |
|
Makita Corp. |
649 |
21 | |
|
Shiseido Co. Ltd. |
907 |
21 | |
|
Fukuoka Financial Group Inc. |
434 |
21 | |
|
Kyoto Financial Group Inc. |
684 |
21 | |
|
LY Corp. |
5,624 |
20 | |
|
Eisai Co. Ltd. |
660 |
20 | |
|
Mitsui OSK Lines Ltd. |
467 |
20 | |
|
Dai Nippon Printing Co. Ltd. |
989 |
19 | |
|
Mitsubishi HC Capital Inc. (XTKS) |
2,195 |
19 | |
|
Kajima Corp. |
617 |
19 | |
|
NGK Corp. |
567 |
19 | |
|
NIDEC Corp. |
1,160 |
19 | |
|
TOPPAN Holdings Inc. |
608 |
19 | |
|
West Japan Railway Co. |
1,029 |
19 | |
|
Aisin Corp. |
1,273 |
18 | |
|
AGC Inc. |
503 |
18 | |
|
Brother Industries Ltd. |
585 |
18 | |
|
JFE Holdings Inc. |
1,598 |
18 | |
|
Omron Corp. |
439 |
18 | |
|
Shimizu Corp. |
1,236 |
18 | |
|
Terumo Corp. |
1,139 |
18 | |
|
Nippon Express Holdings Inc. |
510 |
18 | |
|
* |
Rakuten Group Inc. |
3,449 |
17 |
|
Fuji Electric Co. Ltd. |
201 |
17 | |
|
Hachijuni Nagano Bank Ltd. |
1,031 |
17 |
6
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Isuzu Motors Ltd. |
1,217 |
17 | |
|
Sojitz Corp. |
476 |
17 | |
|
Japan Exchange Group Inc. |
1,192 |
17 | |
|
Hulic Co. Ltd. |
1,530 |
17 | |
|
Taisei Corp. |
214 |
17 | |
|
MEIJI Holdings Co. Ltd. |
600 |
17 | |
|
Hankyu Hanshin Holdings Inc. |
540 |
16 | |
|
T&D Holdings Inc. |
511 |
16 | |
|
Idemitsu Kosan Co. Ltd. |
1,830 |
16 | |
|
Nippon Building Fund Inc. |
20 |
16 | |
|
Daito Trust Construction Co. Ltd. |
695 |
15 | |
|
Sekisui Chemical Co. Ltd. |
895 |
15 | |
|
Yokohama Rubber Co. Ltd. |
331 |
15 | |
|
Kyushu Electric Power Co. Inc. |
1,075 |
14 | |
|
Seiko Epson Corp. |
714 |
14 | |
|
Nitto Denko Corp. |
656 |
14 | |
|
Ricoh Co. Ltd. |
1,293 |
14 | |
|
TOTO Ltd. |
339 |
14 | |
|
SBI Holdings Inc. |
617 |
13 | |
|
IHI Corp. |
754 |
13 | |
|
Kobe Steel Ltd. |
1,041 |
13 | |
|
Shionogi & Co. Ltd. |
693 |
13 | |
|
Sumitomo Chemical Co. Ltd. |
3,759 |
13 | |
|
Japan Post Insurance Co. Ltd. |
1,214 |
13 | |
|
Japan Real Estate Investment Corp. |
17 |
13 | |
|
Amada Co. Ltd. |
739 |
12 | |
|
Otsuka Corp. |
518 |
12 | |
|
Dentsu Group Inc. |
501 |
12 | |
|
Mitsui Chemicals Inc. |
846 |
12 | |
|
Minebea Mitsumi Inc. |
591 |
12 | |
|
Sumitomo Forestry Co. Ltd. |
1,400 |
12 | |
|
Tosoh Corp. |
736 |
12 | |
|
Yakult Honsha Co. Ltd. |
661 |
12 | |
|
Japan Metropolitan Fund Investment |
17 |
12 | |
|
Hitachi Construction Machinery Co. Ltd. |
309 |
11 | |
|
Kinden Corp. |
262 |
11 | |
|
Mitsubishi Gas Chemical Co. Inc. |
443 |
11 | |
|
Niterra Co. Ltd. |
217 |
11 | |
|
* |
Nissan Motor Co. Ltd. |
5,391 |
11 |
|
Oji Holdings Corp. |
2,020 |
11 | |
|
Ono Pharmaceutical Co. Ltd. |
692 |
11 | |
|
Tokyu Fudosan Holdings Corp. |
1,338 |
11 | |
|
Kokusai Electric Corp. |
199 |
11 | |
|
Kandenko Co. Ltd. |
279 |
10 | |
|
Credit Saison Co. Ltd. |
334 |
10 | |
|
Shimano Inc. |
84 |
10 | |
|
Tokyo Tatemono Co. Ltd. |
471 |
10 | |
|
Mazda Motor Corp. |
1,361 |
10 | |
|
Electric Power Development Co. Ltd. Class C |
379 |
10 | |
|
Isetan Mitsukoshi Holdings Ltd. |
435 |
10 | |
|
SG Holdings Co. Ltd. |
1,057 |
10 | |
|
Iyogin Holdings Inc. |
399 |
10 | |
|
Air Water Inc. |
520 |
9 | |
|
NH Foods Ltd. |
222 |
9 | |
|
Nissan Chemical Corp. |
177 |
9 | |
|
Yamaha Corp. |
1,031 |
9 | |
|
Nitori Holdings Co. Ltd. |
471 |
9 | |
|
Tohoku Electric Power Co. Inc. |
1,137 |
9 | |
|
Nippon Prologis REIT Inc. |
16 |
9 | |
|
GLP J-Reit |
11 |
9 | |
|
Haseko Corp. |
465 |
8 | |
|
Kikkoman Corp. |
713 |
8 | |
|
Koito Manufacturing Co. Ltd. |
495 |
8 | |
|
Kuraray Co. Ltd. |
695 |
8 | |
|
Marui Group Co. Ltd. |
414 |
8 | |
|
MISUMI Group Inc. |
347 |
8 | |
|
Nichirei Corp. |
582 |
8 | |
|
Nikon Corp. |
704 |
8 | |
|
Kewpie Corp. |
262 |
8 | |
|
Medipal Holdings Corp. |
459 |
8 |
7
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Tobu Railway Co. Ltd. |
445 |
8 | |
|
Lixil Corp. |
696 |
8 | |
|
Unicharm Corp. |
1,226 |
8 | |
|
Yamazaki Baking Co. Ltd. |
350 |
8 | |
|
Yamato Holdings Co. Ltd. |
650 |
8 | |
|
Suntory Beverage & Food Ltd. |
286 |
8 | |
|
Cosmo Energy Holdings Co. Ltd. |
290 |
8 | |
|
Kyushu Railway Co. |
348 |
8 | |
|
Tsuruha Holdings Inc. |
536 |
8 | |
|
Daiwa House REIT Investment Corp. |
11 |
8 | |
|
Orix JREIT Inc. |
13 |
8 | |
|
Nomura Real Estate Master Fund Inc. |
9 |
8 | |
|
KDX Realty Investment Corp. |
9 |
8 | |
|
ANA Holdings Inc. |
361 |
7 | |
|
Kurita Water Industries Ltd. |
130 |
7 | |
|
Nippon Paint Holdings Co. Ltd. |
958 |
7 | |
|
Nisshin Seifun Group Inc. |
562 |
7 | |
|
Tokyo Century Corp. |
413 |
7 | |
|
Shimadzu Corp. |
269 |
7 | |
|
Tokyu Corp. |
691 |
7 | |
|
Toyo Suisan Kaisha Ltd. |
108 |
7 | |
|
Toyo Seikan Group Holdings Ltd. |
266 |
7 | |
|
Yamato Kogyo Co. Ltd. |
96 |
7 | |
|
Yaskawa Electric Corp. |
250 |
7 | |
|
Nomura Real Estate Holdings Inc. |
1,205 |
7 | |
|
J Front Retailing Co. Ltd. |
359 |
7 | |
|
United Urban Investment Corp. |
7 |
7 | |
|
Invincible Investment Corp. |
17 |
7 | |
|
Hirose Electric Co. Ltd. |
39 |
6 | |
|
Kintetsu Group Holdings Co. Ltd. |
252 |
6 | |
|
ALSOK Co. Ltd. |
819 |
6 | |
|
Rinnai Corp. |
249 |
6 | |
|
Toho Co. Ltd. |
557 |
6 | |
|
* |
Tokyo Electric Power Co. Holdings Inc. |
1,750 |
6 |
|
Yokogawa Electric Corp. |
180 |
6 | |
|
Iida Group Holdings Co. Ltd. |
379 |
6 | |
|
Hakuhodo DY Holdings Inc. |
652 |
6 | |
|
MatsukiyoCocokara & Co. |
392 |
6 | |
|
Japan Airlines Co. Ltd. |
325 |
6 | |
|
Advance Residence Investment Corp. |
7 |
6 | |
|
USS Co. Ltd. |
376 |
5 | |
|
Canon Marketing Japan Inc. |
216 |
5 | |
|
Square Enix Holdings Co. Ltd. |
294 |
5 | |
|
Kyowa Kirin Co. Ltd. |
290 |
5 | |
|
Nissin Foods Holdings Co. Ltd. |
252 |
5 | |
|
Odakyu Electric Railway Co. Ltd. |
461 |
5 | |
|
Santen Pharmaceutical Co. Ltd. |
398 |
5 | |
|
Stanley Electric Co. Ltd. |
233 |
5 | |
|
Persol Holdings Co. Ltd. |
2,496 |
5 | |
|
Trend Micro Inc. |
110 |
4 | |
|
Hamamatsu Photonics KK |
286 |
4 | |
|
Mitsubishi Motors Corp. |
1,555 |
4 | |
|
Sapporo Breweries Ltd. |
323 |
4 | |
|
Shimamura Co. Ltd. |
178 |
4 | |
|
Sundrug Co. Ltd. |
153 |
4 | |
|
Sysmex Corp. |
338 |
4 | |
|
Azbil Corp. |
437 |
4 | |
|
TISI Inc. |
150 |
4 | |
|
Hoshizaki Corp. |
104 |
4 | |
|
Skylark Holdings Co. Ltd. |
186 |
4 | |
|
Fuji Media Holdings Inc. |
99 |
3 | |
|
Acom Co. Ltd. |
1,092 |
3 | |
|
Japan Steel Works Ltd. |
76 |
3 | |
|
Keio Corp. |
685 |
3 | |
|
NOF Corp. |
188 |
3 | |
|
* |
Sharp Corp. |
633 |
3 |
|
TBS Holdings Inc. |
76 |
3 | |
|
Kadokawa Corp. |
149 |
3 | |
|
McDonald's Holdings Co. Japan Ltd. |
68 |
3 | |
|
Tokyo Metro Co. Ltd. |
341 |
3 |
8
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Sugi Holdings Co. Ltd. |
228 |
2 | |
|
ABC-Mart Inc. |
107 |
2 | |
|
NS Solutions Corp. |
66 |
2 | |
|
BIPROGY Inc. |
77 |
2 | |
|
Nippon Television Holdings Inc. |
118 |
2 | |
|
Sega Sammy Holdings Inc. |
109 |
2 | |
|
* |
Metaplanet Inc. |
992 |
2 |
|
OBIC Business Consultants Co. Ltd. |
26 |
1 | |
|
Cosmos Pharmaceutical Corp. |
36 |
1 | |
|
7,185 | |||
|
Netherlands (2.5%) | |||
|
ING Groep NV |
6,259 |
222 | |
|
ArcelorMittal SA |
971 |
72 | |
|
Koninklijke Ahold Delhaize NV |
2,023 |
72 | |
|
DSM-Firmenich AG |
570 |
63 | |
|
ABN AMRO Bank NV |
1,286 |
62 | |
|
NN Group NV |
599 |
54 | |
|
Heineken NV |
631 |
53 | |
|
Koninklijke Philips NV |
1,780 |
48 | |
|
Koninklijke KPN NV |
8,733 |
42 | |
|
*,1 |
Adyen NV |
23 |
28 |
|
Heineken Holding NV |
254 |
20 | |
|
EXOR NV |
212 |
18 | |
|
Wolters Kluwer NV |
173 |
14 | |
|
Universal Music Group NV |
645 |
11 | |
|
779 | |||
|
New Zealand (0.1%) | |||
|
Meridian Energy Ltd. |
2,939 |
10 | |
|
Fisher & Paykel Healthcare Corp. Ltd. Class C |
330 |
9 | |
|
Auckland International Airport Ltd. |
1,553 |
8 | |
|
Contact Energy Ltd. |
1,078 |
6 | |
|
Mercury NZ Ltd. |
1,579 |
6 | |
|
Spark New Zealand Ltd. |
4,269 |
5 | |
|
EBOS Group Ltd. |
194 |
2 | |
|
46 | |||
|
Norway (0.9%) | |||
|
Equinor ASA |
1,928 |
83 | |
|
Norsk Hydro ASA |
2,985 |
30 | |
|
Aker BP ASA |
689 |
27 | |
|
Storebrand ASA |
987 |
22 | |
|
Telenor ASA |
1,444 |
21 | |
|
Yara International ASA |
370 |
18 | |
|
Orkla ASA |
1,744 |
18 | |
|
Frontline plc |
322 |
14 | |
|
Gjensidige Forsikring ASA |
430 |
13 | |
|
Mowi ASA |
519 |
11 | |
|
SpareBank 1 Sor-Norge ASA |
468 |
11 | |
|
Aker ASA Class A |
54 |
9 | |
|
Salmar ASA |
64 |
4 | |
|
Wallenius Wilhelmsen ASA |
231 |
4 | |
|
Leroy Seafood Group ASA |
633 |
3 | |
|
Vend Marketplaces ASA |
117 |
3 | |
|
* |
Nordic Semiconductor ASA |
149 |
3 |
|
Hafnia Ltd. |
382 |
3 | |
|
TOMRA Systems ASA |
185 |
2 | |
|
299 | |||
|
Portugal (0.2%) | |||
|
EDP SA |
6,883 |
37 | |
|
EDP Renewables SA |
697 |
11 | |
|
Banco Comercial Portugues SA Class R |
7,893 |
10 | |
|
Jeronimo Martins SGPS SA |
222 |
5 | |
|
63 | |||
|
Singapore (1.3%) | |||
|
Oversea-Chinese Banking Corp. Ltd. |
8,732 |
216 | |
|
Singapore Telecommunications Ltd. |
7,700 |
27 | |
|
CapitaLand Integrated Commercial Trust |
13,800 |
26 | |
|
CapitaLand Ascendas REIT |
9,600 |
18 | |
|
Singapore Airlines Ltd. |
3,300 |
18 | |
9
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Wilmar International Ltd. |
6,000 |
18 | |
|
Keppel Ltd. |
1,318 |
12 | |
|
CapitaLand Investment Ltd. |
5,200 |
11 | |
|
Seatrium Ltd. |
5,100 |
9 | |
|
UOL Group Ltd. |
1,100 |
8 | |
|
Singapore Technologies Engineering Ltd. |
800 |
7 | |
|
Mapletree Industrial Trust |
4,800 |
7 | |
|
Mapletree Logistics Trust |
7,900 |
7 | |
|
Genting Singapore Ltd. |
12,900 |
6 | |
|
Mapletree Pan Asia Commercial Trust |
5,200 |
5 | |
|
Jardine Cycle & Carriage Ltd. |
135 |
3 | |
|
398 | |||
|
South Korea (7.0%) | |||
|
Samsung Electronics Co. Ltd. (XKRX) |
5,195 |
981 | |
|
SK Square Co. Ltd. |
202 |
151 | |
|
Hyundai Motor Co. |
308 |
91 | |
|
Shinhan Financial Group Co. Ltd. |
1,030 |
82 | |
|
Samsung Electro-Mechanics Co. Ltd. |
53 |
56 | |
|
Samsung Life Insurance Co. Ltd. |
242 |
54 | |
|
Kia Corp. |
553 |
53 | |
|
KB Financial Group Inc. |
385 |
48 | |
|
Hyundai Mobis Co. Ltd. |
135 |
45 | |
|
Hana Financial Group Inc. |
437 |
43 | |
|
POSCO Holdings Inc. |
169 |
42 | |
|
Woori Financial Group Inc. |
1,547 |
38 | |
|
LG Electronics Inc. (XKRX) |
238 |
37 | |
|
* |
Doosan Enerbility Co. Ltd. |
601 |
36 |
|
Samsung Fire & Marine Insurance Co. Ltd. |
73 |
35 | |
|
SK Inc. |
83 |
33 | |
|
KT&G Corp. |
222 |
29 | |
|
* |
Samsung Heavy Industries Co. Ltd. |
1,649 |
25 |
|
Samsung C&T Corp. |
89 |
24 | |
|
LG Corp. |
201 |
18 | |
|
SK Telecom Co. Ltd. |
240 |
16 | |
|
* |
SK Innovation Co. Ltd. |
163 |
15 |
|
Korea Electric Power Corp. |
587 |
14 | |
|
Doosan Co. Ltd. |
15 |
14 | |
|
DB Insurance Co. Ltd. |
93 |
12 | |
|
* |
Hanwha Ocean Co. Ltd. |
184 |
12 |
|
LG Chem Ltd. (XKRX) |
55 |
11 | |
|
HMM Co. Ltd. |
705 |
11 | |
|
LG Innotek Co. Ltd. |
21 |
10 | |
|
Industrial Bank of Korea |
617 |
9 | |
|
Korean Air Lines Co. Ltd. |
425 |
9 | |
|
GS Holdings Corp. |
101 |
9 | |
|
* |
Hanwha Solutions Corp. (XKRX) |
310 |
8 |
|
Hankook Tire & Technology Co. Ltd. |
167 |
8 | |
|
Hyundai Glovis Co. Ltd. |
55 |
8 | |
|
Korea Zinc Co. Ltd. |
8 |
7 | |
|
NH Investment & Securities Co. Ltd. Class C |
343 |
7 | |
|
Amorepacific Corp. |
65 |
7 | |
|
Samsung SDS Co. Ltd. |
38 |
7 | |
|
Hyundai Engineering & Construction Co. Ltd. |
71 |
6 | |
|
Kakao Corp. |
176 |
5 | |
|
NC Corp. |
32 |
5 | |
|
LG Uplus Corp. |
477 |
5 | |
|
S-Oil Corp. |
43 |
5 | |
|
Samsung Securities Co. Ltd. |
77 |
5 | |
|
* |
LG Display Co. Ltd. |
721 |
5 |
|
Posco International Corp. |
106 |
4 | |
|
LG H&H Co. Ltd. (XKRX) |
19 |
4 | |
|
POSCO Future M Co. Ltd. |
25 |
4 | |
|
Hyundai Steel Co. |
196 |
4 | |
|
Hanwha Corp. (XKRX) |
43 |
4 | |
|
Korea Aerospace Industries Ltd. |
44 |
4 | |
|
* |
Peptron Inc. |
27 |
4 |
|
CJ Corp. |
28 |
3 | |
|
* |
HLB Co. Ltd. |
132 |
3 |
|
Yuhan Corp. |
44 |
3 | |
10
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
* |
SKC Co. Ltd. |
32 |
2 |
|
Korea Gas Corp. |
71 |
2 | |
|
Samsung Card Co. Ltd. |
55 |
2 | |
|
CJ CheilJedang Corp. (XKRX) |
17 |
2 | |
|
* |
LigaChem Biosciences Inc. |
25 |
2 |
|
* |
SK Biopharmaceuticals Co. Ltd. |
28 |
2 |
|
1 |
Netmarble Corp. |
43 |
1 |
|
* |
SK Bioscience Co. Ltd. |
22 |
1 |
|
* |
Rainbow Robotics |
4 |
1 |
|
* |
Ecopro Materials Co. Ltd. |
36 |
1 |
|
* |
Doosan Robotics Inc. |
23 |
1 |
|
* |
Hanwha Machinery & Service Holdings Co. Ltd. |
69 |
— |
|
2,205 | |||
|
Spain (2.5%) | |||
|
Banco Santander SA |
21,423 |
314 | |
|
Iberdrola SA |
5,441 |
127 | |
|
Repsol SA |
2,521 |
80 | |
|
Industria de Diseno Textil SA |
846 |
57 | |
|
ACS Actividades de Construccion y Servicios SA (SGMU) |
481 |
57 | |
|
Banco de Sabadell SA |
11,469 |
48 | |
|
Naturgy Energy Group SA |
1,108 |
38 | |
|
Telefonica SA |
9,060 |
38 | |
|
Endesa SA |
711 |
35 | |
|
1 |
Aena SME SA |
369 |
11 |
|
805 | |||
|
Sweden (2.6%) | |||
|
Volvo AB Class B |
3,632 |
131 | |
|
Swedbank AB Class A |
2,065 |
81 | |
|
Investor AB Class B |
1,635 |
70 | |
|
Telefonaktiebolaget LM Ericsson Class B |
6,668 |
67 | |
|
Sandvik AB |
1,055 |
42 | |
|
Essity AB Class B |
1,323 |
39 | |
|
Svenska Handelsbanken AB Class A |
2,015 |
31 | |
|
Assa Abloy AB Class B |
673 |
25 | |
|
Boliden AB |
419 |
25 | |
|
Telia Co. AB |
5,316 |
24 | |
|
Skanska AB Class B |
808 |
23 | |
|
Tele2 AB Class B |
1,272 |
23 | |
|
SKF AB Class B |
764 |
22 | |
|
H & M Hennes & Mauritz AB Class B |
1,086 |
20 | |
|
Hexagon AB Class B |
1,815 |
19 | |
|
Securitas AB Class B |
1,139 |
18 | |
|
Svenska Cellulosa AB SCA Class B |
1,337 |
16 | |
|
Volvo AB Class A |
432 |
16 | |
|
SSAB AB Class B |
1,377 |
15 | |
|
Getinge AB Class B |
494 |
13 | |
|
Alfa Laval AB |
204 |
12 | |
|
Castellum AB |
808 |
11 | |
|
L E Lundbergforetagen AB Class B |
166 |
10 | |
|
* |
Fastighets AB Balder Class B |
1,577 |
9 |
|
Trelleborg AB Class B |
171 |
8 | |
|
Industrivarden AB Class A |
136 |
8 | |
|
Industrivarden AB Class C |
117 |
7 | |
|
Holmen AB Class B |
207 |
7 | |
|
Axfood AB |
250 |
6 | |
|
SSAB AB Class A |
486 |
5 | |
|
Nibe Industrier AB Class B |
1,116 |
5 | |
|
* |
Verisure plc |
515 |
5 |
|
* |
Volvo Car AB Class B |
1,419 |
3 |
|
Sweco AB Class B |
181 |
2 | |
|
Sagax AB Class B |
146 |
2 | |
|
Sagax AB Class D |
269 |
1 | |
|
821 | |||
|
Switzerland (6.0%) | |||
|
Nestle SA (Registered) |
5,874 |
571 | |
|
Roche Holding AG |
699 |
305 | |
|
Novartis AG (Registered) |
1,925 |
293 | |
|
Zurich Insurance Group AG |
350 |
256 | |
|
Holcim AG |
1,151 |
101 | |
11
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Swiss Life Holding AG (Registered) |
65 |
74 | |
|
Cie Financiere Richemont SA Class A (Registered) |
275 |
65 | |
|
Swiss Re AG |
360 |
62 | |
|
Swisscom AG (Registered) |
57 |
44 | |
|
Sandoz Group AG |
515 |
43 | |
|
Chocoladefabriken Lindt & Spruengli AG |
3 |
33 | |
|
Roche Holding AG Class BR |
24 |
11 | |
|
Schindler Holding AG (XSWX) |
28 |
9 | |
|
EMS-Chemie Holding AG (Registered) |
5 |
5 | |
|
Schindler Holding AG (Registered) |
15 |
5 | |
|
1,877 | |||
|
United Kingdom (12.2%) | |||
|
Shell plc (XLON) |
12,764 |
585 | |
|
HSBC Holdings plc |
23,050 |
472 | |
|
BP plc |
35,812 |
256 | |
|
British American Tobacco plc |
4,526 |
251 | |
|
Rio Tinto plc |
2,431 |
249 | |
|
AstraZeneca plc |
1,202 |
194 | |
|
National Grid plc |
11,344 |
179 | |
|
Glencore plc |
21,739 |
173 | |
|
Anglo American plc |
2,687 |
152 | |
|
Diageo plc |
5,078 |
117 | |
|
Lloyds Banking Group plc |
78,027 |
115 | |
|
Barclays plc |
16,999 |
113 | |
|
GSK plc |
3,849 |
97 | |
|
Tesco plc |
14,546 |
90 | |
|
Prudential plc (XLON) |
5,767 |
78 | |
|
Vodafone Group plc |
44,007 |
71 | |
|
Standard Chartered plc |
2,427 |
70 | |
|
Aviva plc |
6,866 |
67 | |
|
Imperial Brands plc |
1,664 |
57 | |
|
Legal & General Group plc |
12,772 |
50 | |
|
SSE plc |
1,424 |
47 | |
|
Antofagasta plc |
787 |
42 | |
|
Segro plc |
3,097 |
40 | |
|
BT Group plc |
12,983 |
36 | |
|
Haleon plc |
6,196 |
31 | |
|
Standard Life plc |
1,824 |
23 | |
|
Associated British Foods plc |
643 |
18 | |
|
Fresnillo plc |
418 |
18 | |
|
J Sainsbury plc |
3,871 |
17 | |
|
International Consolidated Airlines Group SA Class DI |
2,934 |
17 | |
|
Schroders plc |
2,003 |
16 | |
|
United Utilities Group plc |
771 |
15 | |
|
Bunzl plc |
359 |
14 | |
|
Diploma plc |
128 |
13 | |
|
Smith & Nephew plc |
882 |
13 | |
|
Marks & Spencer Group plc |
1,930 |
10 | |
|
Severn Trent plc |
242 |
10 | |
|
Melrose Industries plc (XLON) |
1,527 |
10 | |
|
Pearson plc |
526 |
9 | |
|
1 |
Airtel Africa plc |
627 |
3 |
|
3,838 | |||
|
United States (0.7%) | |||
|
* |
Spotify Technology SA |
155 |
84 |
|
AerCap Holdings NV |
360 |
53 | |
|
* |
Sea Ltd. ADR |
310 |
35 |
|
Golar LNG Ltd. |
232 |
12 | |
|
* |
Ascendis Pharma A/S |
46 |
12 |
|
ZIM Integrated Shipping Services Ltd. |
274 |
7 | |
|
* |
Wix.com Ltd. |
68 |
6 |
|
* |
Grab Holdings Ltd. Class A |
1,474 |
5 |
|
* |
Innio NV |
137 |
3 |
|
* |
Pagaya Technologies Ltd. Class A |
74 |
2 |
|
219 | |||
|
Total Common Stocks (Cost $29,698) |
31,034 | ||
12
Developed Markets ex-US Value Index ETF
|
Shares |
Market Value• ($000) | ||
|
Preferred Stocks (1.2%) | |||
|
Samsung Electronics Co. Ltd. Preference Shares |
1,830 |
248 | |
|
Volkswagen AG Preference Shares |
470 |
42 | |
|
Henkel AG & Co. KGaA Preference Shares |
371 |
33 | |
|
Dr. Ing hc F Porsche AG Preference Shares |
252 |
13 | |
|
Hyundai Motor Co. Preference Shares (XKRK) |
77 |
11 | |
|
Hyundai Motor Co. Preference Shares (XKRX) |
46 |
6 | |
|
Doosan Co. Ltd. Preference Shares |
8 |
3 | |
|
Samsung Electro-Mechanics Co. Ltd. Preference Shares |
7 |
3 | |
|
Samsung Fire & Marine Insurance Co. Ltd. Preference Shares (XKRX) |
6 |
2 | |
|
LG Chem Ltd. Preference Shares |
18 |
2 | |
|
LG Electronics Inc. Preference Shares |
40 |
2 | |
|
Mirae Asset Securities Co. Ltd. Preference Shares (XKRX) |
178 |
1 | |
|
CJ Corp. Preference Shares |
7 |
1 | |
|
Amorepacific Corp. Preference Shares (XKRX) |
23 |
1 | |
|
Hanwha Corp. Preference Shares |
36 |
1 | |
|
Korea Investment Holdings Co. Ltd. Preference Shares |
14 |
1 | |
|
Hyundai Motor Co. Preference Shares |
11 |
1 | |
|
CJ Corp. Preference Shares (XKRX) |
13 |
1 | |
|
NH Investment & Securities Co. Ltd. Preference Shares Class C |
41 |
1 | |
|
LG Corp. Preference Shares |
15 |
1 | |
|
Samsung C&T Corp. Preference Shares |
4 |
1 | |
|
LG H&H Co. Ltd. Preference Shares |
7 |
— | |
|
CJ CheilJedang Corp. Preference Shares |
2 |
— | |
|
* |
Samsung SDI Co. Ltd. Preference Shares |
2 |
— |
|
S-Oil Corp. Preference Shares |
4 |
— | |
|
* |
Hanwha Machinery & Service Holdings Co. Ltd. Preference Shares |
58 |
— |
|
Total Preferred Stocks (Cost $327) |
375 | ||
|
Temporary Cash Investments (0.0%) | |||
|
Money Market Fund (0.0%) | |||
|
2 |
Vanguard Market Liquidity Fund, 3.731% (Cost $7) |
66 |
7 |
|
Total Investments (99.7%) (Cost $30,032) |
31,416 | ||
|
Other Assets and Liabilities—Net (0.3%) |
92 | ||
|
Net Assets (100%) |
31,508 | ||
|
Cost is in $000. | |||
|
• |
See Note A in Notes to Financial Statements. |
|
* |
Non-income-producing security. |
|
1 |
Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2026, the aggregate value was $110, representing 0.3% of net assets. |
|
2 |
Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
|
ADR—American Depositary Receipt. | |
|
REIT—Real Estate Investment Trust. |
Derivative Financial Instruments Outstanding as of Period End
|
Forward Currency Contracts | |||||||
|
Counterparty |
Settlement
Date |
Contract Amount (000) |
Appreciation
($000) |
Depreciation
($000) | |||
|
Receive |
Deliver | ||||||
|
State Street Bank & Trust Co. |
9/16/2026 |
JPY |
2,242 |
USD |
14 |
— |
— |
|
State Street Bank & Trust Co. |
9/16/2026 |
USD |
2 |
EUR |
1 |
— |
— |
|
State Street Bank & Trust Co. |
9/16/2026 |
USD |
20 |
JPY |
3,245 |
— |
— |
|
— |
— | ||||||
|
EUR—euro. |
|
JPY—Japanese yen. |
|
USD—U.S. dollar. |
See accompanying Notes, which are an integral part of the Financial Statements.
13
Developed Markets ex-US Value Index ETF
Statement of Assets and Liabilities
As of August 31, 2026
|
($000s, except shares and per-share amounts) |
Amount |
|
Assets |
|
|
Investments in Securities, at Value |
|
|
Unaffiliated Issuers (Cost $30,025) |
31,409 |
|
Affiliated Issuers (Cost $7) |
7 |
|
Total Investments in Securities |
31,416 |
|
Investment in Vanguard |
1 |
|
Foreign Currency, at Value (Cost $22) |
22 |
|
Receivables for Accrued Income |
70 |
|
Unrealized Appreciation—Forward Currency Contracts |
— |
|
Total Assets |
31,509 |
|
Liabilities |
|
|
Payables to Vanguard |
1 |
|
Unrealized Depreciation—Forward Currency Contracts |
— |
|
Total Liabilities |
1 |
|
Net Assets |
31,508 |
|
At August 31, 2026, net assets consisted of: |
|
|
Paid-in Capital |
30,038 |
|
Total Distributable Earnings (Loss) |
1,470 |
|
Net Assets |
31,508 |
|
Net Assets |
|
|
Applicable to 400,000 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) |
31,508 |
|
Net Asset Value Per Share |
$78.77 |
See accompanying Notes, which are an integral part of the Financial Statements.
14
Developed Markets ex-US Value Index ETF
Statement of Operations
|
April 14, 20261 to
August 31, 2026 | |
|
($000) | |
|
Investment Income |
|
|
Income |
|
|
Dividends2 |
292 |
|
Interest3 |
— |
|
Total Income |
292 |
|
Expenses |
|
|
The Vanguard Group—Note C |
|
|
Management and Administrative |
— |
|
Auditing Fees |
51 |
|
Accounting Fees |
18 |
|
Shareholders’ Reports |
1 |
|
Trustees’ Fees and Expenses |
— |
|
Professional Services |
4 |
|
Total Expenses |
74 |
|
Expense Reduction—Note C |
(66 ) |
|
Net Expenses |
8 |
|
Net Investment Income |
284 |
|
Realized Net Gain (Loss) |
|
|
Investment Securities Sold3 |
(5 ) |
|
Futures Contracts |
1 |
|
Forward Currency Contracts |
— |
|
Foreign Currencies |
(11 ) |
|
Realized Net Gain (Loss) |
(15 ) |
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities3 |
1,384 |
|
Forward Currency Contracts |
— |
|
Foreign Currencies |
— |
|
Change in Unrealized Appreciation (Depreciation) of Investment Securities |
1,384 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,653 |
|
1 |
Inception. |
|
2 |
Dividends are net of foreign withholding taxes of $44. |
|
3 |
Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were each less than $1. Purchases and sales are for temporary cash investment purposes. |
See accompanying Notes, which are an integral part of the Financial Statements.
15
Developed Markets ex-US Value Index ETF
Statement of Changes in Net Assets
|
April 14, 20261 to
August 31, 2026 | |
|
($000) | |
|
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net Investment Income |
284 |
|
Realized Net Gain (Loss) |
(15 ) |
|
Change in Unrealized Appreciation (Depreciation) |
1,384 |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
1,653 |
|
Distributions |
|
|
Total Distributions |
(183 ) |
|
Capital Share Transactions |
|
|
Issued |
30,039 |
|
Issued in Lieu of Cash Distributions |
— |
|
Redeemed |
(1 ) |
|
Net Increase (Decrease) from Capital Share Transactions |
30,038 |
|
Total Increase (Decrease) |
31,508 |
|
Net Assets |
|
|
Beginning of Period |
— |
|
End of Period |
31,508 |
|
1 |
Inception. |
See accompanying Notes, which are an integral part of the Financial Statements.
16
Developed Markets ex-US Value Index ETF
Financial Highlights
|
For a Share Outstanding
Throughout the Period |
April 14, 20261 to
August 31, 2026 |
|
Net Asset Value, Beginning of Period |
$75.00 |
|
Investment Operations |
|
|
Net Investment Income2 |
.823 |
|
Net Realized and Unrealized Gain (Loss) on Investments |
3.558 |
|
Total from Investment Operations |
4.381 |
|
Distributions |
|
|
Dividends from Net Investment Income |
(.611) |
|
Distributions from Realized Capital Gains |
— |
|
Total Distributions |
(.611) |
|
Net Asset Value, End of Period |
$78.77 |
|
Total Return |
5.86% |
|
Ratios/Supplemental Data |
|
|
Net Assets, End of Period (Millions) |
$32 |
|
Ratio of Total Expenses to Average Net Assets |
0.08%3,4 |
|
Ratio of Net Investment Income to Average Net Assets |
2.82%3 |
|
Portfolio Turnover Rate5 |
1% |
|
1 |
Inception. |
|
2 |
Calculated based on average shares outstanding. |
|
3 |
Annualized. |
|
4 |
Vanguard and the board of trustees have agreed to temporarily assume certain expenses (representing an annual rate of 0.34% of the fund's average net assets) to maintain a total expense ratio of 0.08%. The fund will not be required to reimburse Vanguard for these amounts. |
|
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, including ETF Creation Units. |
See accompanying Notes, which are an integral part of the Financial Statements.
17
Developed Markets ex-US Value Index ETF
Notes to Financial Statements
Vanguard Developed Markets ex-US Value Index ETF is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. ETF Shares are listed for trading on Cboe BZX Exchange, Inc.; they can be purchased and sold through a broker.
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.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the period ended August 31, 2026, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, based on the average of the notional amounts at each quarter-end during the period. The fund had no open futures contracts at August 31, 2026.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. Risks associated with these types of forward currency contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on forward currency contracts.
During the period ended August 31, 2026, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
18
Developed Markets ex-US Value Index ETF
5. Federal Income Taxes: The fund intends to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the tax year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
7. Credit Facility and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in an uncommitted credit facility provided by Vanguard, which may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. Any borrowings under the facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate, or based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the period ended August 31, 2026, the fund did not utilize the credit facility or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B.
Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Capital Management, LLC.
C.
In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund
investment advisory, 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.
From time to time, Vanguard and/or a fund's board of trustees may adjust a fund's fees and expenses and/or reduce, refund, reimburse, waive, or otherwise return to the fund and its shareholders a portion of prior fees and expenses (collectively, “expense adjustments”). The fund is not obligated to repay these amounts, and Vanguard is not obligated to continue or otherwise repeat these voluntary expense adjustments. Expense adjustments are generally calculated at, and returned to, each share class, as applicable.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At August 31, 2026, the fund had contributed to Vanguard capital in the amount of $1,000, representing less than 0.01% of the fund’s net assets and less than 0.01% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Vanguard and the board of trustees have agreed to temporarily assume certain expenses to maintain a total annual expense ratio of 0.08%. For the period ended August 31, 2026, the fund’s expenses were reduced by $66,000 (an effective annual rate of 0.34% of the fund’s average net assets).
D.
Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
19
Developed Markets ex-US Value Index ETF
The following table summarizes the market value of the fund’s investments and derivatives as of August 31, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total
($000) | |
|
Investments |
||||
|
Assets |
||||
|
Common Stocks—North and South America |
3,556 |
— |
— |
3,556 |
|
Common Stocks—Other |
96 |
27,382 |
— |
27,478 |
|
Preferred Stocks |
— |
375 |
— |
375 |
|
Temporary Cash Investments |
7 |
— |
— |
7 |
|
Total |
3,659 |
27,757 |
— |
31,416 |
|
Derivative Financial Instruments |
||||
|
Assets |
||||
|
Forward Currency Contracts |
— |
— |
— |
— |
|
Liabilities |
||||
|
Forward Currency Contracts |
— |
— |
— |
— |
E.
At August 31, 2026, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
|
Statement of Assets and Liabilities |
Equity
Contracts
($000) |
Foreign
Exchange
Contracts
($000) |
Total
($000) |
|
Unrealized Appreciation—Forward Currency Contracts |
— |
— |
— |
|
Total Assets |
— |
— |
— |
|
Unrealized Depreciation—Forward Currency Contracts |
— |
— |
— |
|
Total Liabilities |
— |
— |
— |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the period ended August 31, 2026, were:
|
Realized Net Gain (Loss) on Derivatives |
Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
|
Futures Contracts |
1 |
— |
1 |
|
Forward Currency Contracts |
— |
— |
— |
|
Realized Net Gain (Loss) on Derivatives |
1 |
— |
1 |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|||
|
Forward Currency Contracts |
— |
— |
— |
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
— |
— |
— |
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. Examples of permanent
differences include, but are not limited to, the accounting for passive foreign investment companies, in-kind redemptions, swap agreements, and
distributions in connection with fund share redemptions.
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Examples of temporary differences include, but are not limited to, capital loss carryforwards, the deferral of losses from wash sales, the recognition of unrealized gains or losses from certain derivative contracts, and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
|
Amount
($000) | |
|
Undistributed Ordinary Income |
231 |
|
Undistributed Long-Term Gains |
— |
|
Net Unrealized Gains (Losses) |
1,254 |
|
Capital Loss Carryforwards |
(4) |
|
Qualified Late-Year Losses |
— |
|
Other Temporary Differences |
(11) |
|
Total |
1,470 |
20
Developed Markets ex-US Value Index ETF
The tax character of distributions paid was as follows:
|
Period Ended August 31, | |
|
2026
Amount
($000) | |
|
Ordinary Income* |
183 |
|
Long-Term Capital Gains |
— |
|
Total |
183 |
|
* |
Includes short-term capital gains, if any. |
As of August 31, 2026, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
|
Amount
($000) | |
|
Tax Cost |
30,162 |
|
Gross Unrealized Appreciation |
2,128 |
|
Gross Unrealized Depreciation |
(874) |
|
Net Unrealized Appreciation (Depreciation) |
1,254 |
G.
During the period ended August 31, 2026, the fund purchased $2,673,000 of investment securities and sold $284,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $27,639,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
H.
Capital shares issued and redeemed were:
|
April 14, 20261 to
August 31, 2026 | |
|
Shares
(000) | |
|
Issued |
400 |
|
Issued in Lieu of Cash Distributions |
— |
|
Redeemed |
— |
|
Net Increase (Decrease) in Shares Outstanding |
400 |
|
1 |
Inception. |
I.
Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory
conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse
impact on the value of the fund’s investments and fund performance.
To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.
J.
Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their
operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief
executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer
collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s
daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its
prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment
resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the
information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying
financial statements.
K.
Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would
require recognition or disclosure in these financial statements.
21
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard Developed Markets ex-US Value Index ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard Developed Markets ex-US Value Index ETF (one of the funds constituting Vanguard World Fund, referred to hereafter as the "Fund") as of August 31, 2026, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period April 14, 2026 (inception) through August 31, 2026 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2026, and the results of its operations, changes in its net assets, and the financial highlights for the period April 14, 2026 (inception) through August 31, 2026 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2026 by correspondence with the custodian, transfer agent, and brokers. We believe that our audit provides a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 21, 2026
We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.
22
The fund designates to shareholders foreign source income of $319,000 and foreign taxes paid of $28,000, or if subsequently determined to be different, the maximum amounts allowable by law. Form 1099-DIV reports calendar-year amounts that can be included on the income tax return of shareholders.
QV0700 102026
23
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
At a special meeting of shareholders on November 4, 2025, shareholders of Vanguard Financials Index Fund (the “Fund”) approved the proposal to change the diversification status of the Fund from diversified to non-diversified and eliminate the related fundamental restrictions. Each vote reported below represents one dollar of the total combined net asset value of the Fund’s shares held on the record date of August 26, 2025.
| Votes For | Votes Against | Abstained | Broker Non-Votes | |||
| 7,171,927,825 | 138,912,318 | 271,434,060 | N/A |
At a special meeting of shareholders on January 6, 2026, shareholders of Vanguard Health Care Index Fund (the “Fund”) approved the proposal to change the diversification status of the Fund from diversified to non-diversified and eliminate the related fundamental restrictions. Each vote reported below represents one dollar of the total combined net asset value of the Fund’s shares held on the record date of August 26, 2025.
| Votes For | Votes Against | Abstained | Broker Non-Votes | |||
| 7,799,136,167 | 729,677,195 | 379,107,973 | N/A |
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable. The Trustees’ Fees and Expenses are included in the financial statements filed under Item 7 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contracts.
Trustees Approve Advisory Arrangement - FTSE Social Index Fund
A majority of independent trustees of the board of Vanguard FTSE Social Index Fund (Trustees) have renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), which provides investment advisory services to the fund through its subsidiary, Vanguard Portfolio Management LLC (VPM). The trustees determined that continuing the advisory arrangement was in the best interests of the fund and its shareholders.
The Trustees based their decisions upon an evaluation of VPM’s investment staff, portfolio management process, and performance. This evaluation included information provided by Vanguard’s Oversight and Manager Search team, which is responsible for fund and advisor oversight and product management.
The Oversight and Manager Search team met regularly with the advisor and made presentations to the Trustees during the fiscal year that directed the Trustees’ focus to relevant information and topics.
The board, or an investment committee made up of Trustees, also received information throughout the year during advisor presentations conducted by the Oversight and Manager Search team. For each advisor presentation, the Trustees were provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.
In addition, the Trustees received periodic reports throughout the year, which included information about the fund’s performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Oversight and Manager Search team’s ongoing assessment of the advisor.
Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. The Trustees considered the factors discussed below, among others. However, no single factor determined whether to approve the arrangement. Rather, it was the totality of the circumstances that drove the Trustee’s decisions.
Nature, extent, and quality of services
The Trustees considered the quality of the fund’s investment management services over both the short and long term and took into account the organizational depth and stability of Vanguard and VPM. The Trustees considered that Vanguard has been managing investments for more than four decades. The Strategic Equity Index Management team (SE), now within VPM, adheres to the same sound, disciplined investment management process and has considerable experience, stability and depth. In its management of other Vanguard passive and active equity funds and portfolios, the team has a track record of consistent performance as a result of its disciplined investment processes. SE has specific expertise and experience managing U.S. style-box, sector, and smart-beta index strategies, effectively navigating index reconstitutions and mitigating transactions costs to deliver tight tracking error while opportunistically seeking to add excess returns through sophisticated trading strategies and superior access to corporate actions.
The Trustees concluded that VPM’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.
Investment performance
The Trustees considered the fund’s short- and long-term performance, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The Trustees concluded the performance was such that the advisory arrangement should continue.
Cost
The Trustees concluded that the fund’s expense ratio was below the average expense ratio charged by funds in its peer group and that the fund’s advisory expenses were also below the peer-group average.
The Trustees do not conduct a profitability analysis of Vanguard in providing investment advisory services through VPM because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The Trustees concluded that the fund’s arrangement with Vanguard, and services rendered through VPM, ensure that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The Trustees will consider whether to renew the advisory arrangement again within a one-year period.
Trustees Approve Advisory Arrangements - Morningstar Mega Cap Index Funds
A majority of independent trustees of the board of Vanguard Morningstar Mega Cap Index Fund and Vanguard Morningstar Mega Cap Value Index Fund (Trustees) have renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), which provides investment advisory services to each fund through its subsidiary, Vanguard Portfolio Management LLC (VPM). The trustees determined that continuing the advisory arrangements was in the best interests of each fund and its shareholders.
The Trustees based their decisions upon an evaluation of VPM’s investment staff, portfolio management process, and performance. This evaluation included information provided by Vanguard’s Oversight and Manager Search team, which is responsible for fund and advisor oversight and product management.
The Oversight and Manager Search team met regularly with the advisor and made presentations to the Trustees during the fiscal year that directed the Trustees’ focus to relevant information and topics.
The board, or an investment committee made up of Trustees, also received information throughout the year during advisor presentations conducted by the Oversight and Manager Search team. For each advisor presentation, the Trustees were provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.
In addition, the Trustees received periodic reports throughout the year, which included information about the fund’s performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Oversight and Manager Search team’s ongoing assessment of the advisor.
Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. The Trustees considered the factors discussed below, among others. However, no single factor determined whether to approve the arrangements. Rather, it was the totality of the circumstances that drove the Trustee’s decisions.
Nature, extent, and quality of services
The Trustees considered the quality of each fund’s investment management services over both the short and long term and took into account the organizational depth and stability of Vanguard and VPM. The Trustees considered that Vanguard has been managing investments for more than four decades. The Strategic Equity Index Management team (SE), now within VPM, adheres to the same sound, disciplined investment management process and has considerable experience, stability and depth. In its management of other Vanguard passive and active equity funds and portfolios, the team has a track record of consistent performance as a result of its disciplined investment processes. SE has specific expertise and experience managing U.S. style-box, sector, and smart-beta index strategies, effectively navigating index reconstitutions and mitigating transactions costs to deliver tight tracking error while opportunistically seeking to add excess returns through sophisticated trading strategies and superior access to corporate actions.
The Trustees concluded that VPM’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.
Investment performance
The Trustees considered each fund’s short- and long-term performance, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The Trustees concluded the performance was such that the advisory arrangements should continue.
Cost
The Trustees concluded that each fund’s expense ratio was below the average expense ratio charged by funds in its peer group and that each fund’s advisory expenses were also below the peer-group average.
The Trustees do not conduct a profitability analysis of Vanguard in providing investment advisory services through VPM because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The Trustees concluded that each fund’s arrangement with Vanguard, and services rendered through VPM, ensure that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The Trustees will consider whether to renew the advisory arrangements again within a one-year period.
Trustees Approve Advisory Arrangements - U.S. Stock Index Funds
A majority of independent trustees of the board of Vanguard Communication Services Index Fund, Vanguard Consumer Discretionary Index Fund, Vanguard Consumer Staples Index Fund, Vanguard Energy Index Fund, Vanguard Financials Index Fund, Vanguard Health Care Index Fund, Vanguard Industrials Index Fund, Vanguard Information Technology Index Fund, Vanguard Materials Index Fund, and Vanguard Utilities Index Fund (Trustees) have renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), which provides investment advisory services to each fund through its subsidiary, Vanguard Portfolio Management LLC (VPM). The trustees determined that continuing the advisory arrangements was in the best interests of each fund and its shareholders.
The Trustees based their decisions upon an evaluation of VPM’s investment staff, portfolio management process, and performance. This evaluation included information provided by Vanguard’s Oversight and Manager Search team, which is responsible for fund and advisor oversight and product management.
The Oversight and Manager Search team met regularly with the advisor and made presentations to the Trustees during the fiscal year that directed the Trustees’ focus to relevant information and topics.
The board, or an investment committee made up of Trustees, also received information throughout the year during advisor presentations conducted by the Oversight and Manager Search team. For each advisor presentation, the Trustees were provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.
In addition, the Trustees received periodic reports throughout the year, which included information about the fund’s performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Oversight and Manager Search team’s ongoing assessment of the advisor.
Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. The Trustees considered the factors discussed below, among others. However, no single factor determined whether to approve the arrangements. Rather, it was the totality of the circumstances that drove the Trustee’s decisions.
Nature, extent, and quality of services
The Trustees considered the quality of each fund’s investment management services over both the short and long term and took into account the organizational depth and stability of Vanguard and VPM. The Trustees considered that Vanguard has been managing investments for more than four decades. The Strategic Equity Index Management team (SE), now within VPM, adheres to the same sound, disciplined investment management process and has considerable experience, stability and depth. In its management of other Vanguard passive and active equity funds and portfolios, the team has a track record of consistent performance as a result of its disciplined investment processes. SE has specific expertise and experience managing U.S. style-box, sector, and smart-beta index strategies, effectively navigating index reconstitutions and mitigating transactions costs to deliver tight tracking error while opportunistically seeking to add excess returns through sophisticated trading strategies and superior access to corporate actions.
The Trustees concluded that VPM’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.
Investment performance
The Trustees considered each fund’s short- and long-term performance, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The Trustees concluded the performance was such that the advisory arrangements should continue.
Cost
The Trustees concluded that each fund’s expense ratio was below the average expense ratio charged by funds in its peer group and that each fund’s advisory expenses were also below the peer-group average.
The Trustees do not conduct a profitability analysis of Vanguard in providing investment advisory services through VPM because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The Trustees concluded that each fund’s arrangement with Vanguard, and services rendered through VPM, ensure that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The Trustees will consider whether to renew the advisory arrangements again within a one-year period.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: 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 changes in the Registrant’s Internal Control Over Financial Reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19: 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 WORLD FUND | ||
| BY: | /s/ SALIM RAMJI* | |
| SALIM RAMJI | ||
| CHIEF EXECUTIVE OFFICER |
Date: October 23, 2026
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 WORLD FUND | ||
| BY: | /s/ SALIM RAMJI* | |
| SALIM RAMJI | ||
| CHIEF EXECUTIVE OFFICER |
Date: October 23, 2026
| VANGUARD WORLD FUND | ||
| BY: | /s/ CHRISTINE BUCHANAN* | |
| CHRISTINE BUCHANAN | ||
| CHIEF FINANCIAL OFFICER |
Date: October 23, 2026
| * By: | /s/ Natalie Lamarque |
Natalie Lamarque, pursuant to a Power of Attorney filed on December 19, 2025 (see File Number 33-49023), and to a Power of Attorney filed on February 27, 2026 (see File Number 333-177613), Incorporated by Reference.
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