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: 811-02968-99
Name of Registrant: | Vanguard Trustees’ Equity Fund |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2021—April 30, 2022
Item 1: Reports to Shareholders
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2022 | |||
International Value Fund | Beginning Account Value 10/31/2021 | Ending Account Value 4/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $889.90 | $1.73 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.96 | 1.86 |
United Kingdom | 15.0% |
France | 10.0 |
Japan | 9.9 |
Switzerland | 7.0 |
China | 6.6 |
Germany | 6.0 |
India | 5.3 |
South Korea | 5.2 |
Netherlands | 4.7 |
Hong Kong | 4.4 |
United States | 4.3 |
Brazil | 3.3 |
Indonesia | 2.7 |
Singapore | 2.6 |
Canada | 2.1 |
Italy | 1.6 |
Ireland | 1.2 |
Finland | 1.2 |
Norway | 1.1 |
Australia | 1.1 |
Other | 4.7 |
Shares | Market Value• ($000) | |||||
Common Stocks (94.6%) | ||||||
Australia (1.0%) | ||||||
National Australia Bank Ltd. | 2,238,230 | 51,096 | ||||
QBE Insurance Group Ltd. | 4,298,322 | 37,083 | ||||
BHP Group Ltd. | 820,280 | 27,489 | ||||
Adbri Ltd. | 9,598,354 | 19,589 | ||||
135,257 | ||||||
Brazil (3.1%) | ||||||
1 | Banco Bradesco SA ADR | 43,461,859 | 156,463 | |||
Ambev SA ADR | 35,243,600 | 102,559 | ||||
Petroleo Brasileiro SA ADR | 3,893,780 | 52,839 | ||||
* | Cia de Saneamento Basico do Estado de Sao Paulo | 4,678,400 | 42,138 | |||
Banco do Brasil SA | 5,775,000 | 38,804 | ||||
Petroleo Brasileiro SA Preference Shares | 4,004,400 | 24,525 | ||||
* | Lojas Renner SA | 465,383 | 2,236 | |||
419,564 | ||||||
Canada (2.0%) | ||||||
Suncor Energy Inc. | 3,379,220 | 121,474 | ||||
Bank of Nova Scotia | 790,651 | 50,068 | ||||
Saputo Inc. | 1,720,249 | 36,771 | ||||
Alimentation Couche-Tard Inc. | 793,900 | 35,343 | ||||
Stella-Jones Inc. | 915,400 | 25,296 | ||||
268,952 | ||||||
China (6.3%) | ||||||
* | Alibaba Group Holding Ltd. | 16,688,600 | 203,562 | |||
* | Baidu Inc. ADR | 1,184,023 | 147,020 | |||
Tencent Holdings Ltd. | 2,907,500 | 137,016 | ||||
China Longyuan Power Group Corp. Ltd. Class H | 41,240,000 | 79,544 | ||||
ENN Energy Holdings Ltd. | 5,130,400 | 68,722 |
Shares | Market Value• ($000) | |||||
* | Alibaba Group Holding Ltd. ADR | 511,364 | 49,648 | |||
* | Trip.com Group Ltd. ADR | 2,010,104 | 47,539 | |||
Hengan International Group Co. Ltd. | 7,215,500 | 34,099 | ||||
Autohome Inc. ADR | 1,154,035 | 33,548 | ||||
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 22,100,800 | 23,545 | ||||
Sungrow Power Supply Co. Ltd. Class A | 2,470,560 | 23,370 | ||||
847,613 | ||||||
Denmark (0.8%) | ||||||
Carlsberg A/S Class B | 517,549 | 65,746 | ||||
Vestas Wind Systems A/S | 1,494,988 | 38,124 | ||||
103,870 | ||||||
Egypt (0.2%) | ||||||
Commercial International Bank Egypt SAE (Registered) GDR | 14,884,552 | 33,460 | ||||
Finland (1.1%) | ||||||
Sampo OYJ Class A | 1,630,627 | 79,179 | ||||
Nokian Renkaat OYJ | 2,855,350 | 38,343 | ||||
* | Nokia OYJ | 6,980,867 | 35,394 | |||
152,916 | ||||||
France (9.5%) | ||||||
TotalEnergies SE | 3,873,199 | 190,185 | ||||
Sanofi | 1,482,868 | 156,732 | ||||
Air Liquide SA | 842,605 | 145,778 | ||||
Airbus SE | 1,027,555 | 112,488 | ||||
Engie SA | 8,727,837 | 102,993 | ||||
Vinci SA | 1,026,137 | 99,570 | ||||
Societe Generale SA | 3,519,077 | 84,578 | ||||
Safran SA | 761,212 | 81,753 | ||||
Thales SA | 534,690 | 68,454 | ||||
Pernod Ricard SA | 318,424 | 65,718 | ||||
Legrand SA | 725,854 | 64,321 | ||||
Bureau Veritas SA | 1,770,805 | 50,869 |
Shares | Market Value• ($000) | |||||
* | Accor SA | 1,309,358 | 43,017 | |||
* | Technip Energies NV | 1,188,167 | 14,438 | |||
1,280,894 | ||||||
Germany (5.6%) | ||||||
Fresenius Medical Care AG & Co. KGaA | 1,686,636 | 104,887 | ||||
Merck KGaA | 467,276 | 86,692 | ||||
Bayerische Motoren Werke AG | 894,840 | 73,078 | ||||
* | BASF SE | 1,377,320 | 72,534 | |||
* | MTU Aero Engines AG | 353,171 | 71,222 | |||
Henkel AG & Co. KGaA | 975,920 | 61,933 | ||||
Volkswagen AG Preference Shares | 362,393 | 56,122 | ||||
Infineon Technologies AG | 1,439,441 | 40,856 | ||||
Jungheinrich AG Preference Shares | 1,566,012 | 38,302 | ||||
FUCHS PETROLUB SE Preference Shares | 1,093,420 | 34,488 | ||||
* | Vonovia SE | 830,682 | 33,095 | |||
*,1 | Continental AG | 452,749 | 31,032 | |||
Henkel AG & Co. KGaA Preference Shares | 473,564 | 30,408 | ||||
SAP SE | 230,770 | 23,388 | ||||
Fresenius SE & Co. KGaA | 182,788 | 6,461 | ||||
764,498 | ||||||
Hong Kong (4.2%) | ||||||
AIA Group Ltd. | 14,418,600 | 141,645 | ||||
* | Sands China Ltd. | 40,843,200 | 90,026 | |||
Jardine Matheson Holdings Ltd. | 1,173,100 | 62,138 | ||||
*,2 | ESR Cayman Ltd. | 19,978,800 | 60,648 | |||
* | Melco Resorts & Entertainment Ltd. ADR | 10,563,690 | 60,424 | |||
Galaxy Entertainment Group Ltd. | 6,785,000 | 38,716 | ||||
* | Yue Yuen Industrial Holdings Ltd. | 18,050,500 | 26,550 | |||
Hongkong Land Holdings Ltd. | 5,587,400 | 26,065 | ||||
CK Asset Holdings Ltd. | 3,466,500 | 23,500 | ||||
Xinyi Glass Holdings Ltd. | 10,396,000 | 23,004 | ||||
2 | WH Group Ltd. | 16,951,243 | 11,707 | |||
564,423 | ||||||
India (5.0%) | ||||||
ICICI Bank Ltd. ADR | 6,324,951 | 120,427 | ||||
Reliance Industries Ltd. | 2,895,947 | 104,927 | ||||
Zee Entertainment Enterprises Ltd. | 32,485,283 | 104,298 | ||||
Adani Ports & Special Economic Zone Ltd. | 9,272,597 | 103,012 | ||||
Housing Development Finance Corp. Ltd. | 3,254,020 | 93,885 | ||||
UPL Ltd. | 5,608,124 | 59,878 |
Shares | Market Value• ($000) | |||||
Ambuja Cements Ltd. | 10,257,579 | 49,632 | ||||
GAIL India Ltd. | 21,280,716 | 43,994 | ||||
680,053 | ||||||
Indonesia (2.6%) | ||||||
Bank Mandiri Persero Tbk. PT | 233,091,500 | 143,126 | ||||
Astra International Tbk. PT | 221,207,900 | 115,502 | ||||
Telkom Indonesia Persero Tbk. PT ADR | 1,626,306 | 51,749 | ||||
Telkom Indonesia Persero Tbk. PT | 77,847,500 | 24,784 | ||||
Selamat Sempurna Tbk. PT | 164,317,700 | 17,710 | ||||
352,871 | ||||||
Ireland (1.2%) | ||||||
* | Ryanair Holdings plc ADR | 1,044,211 | 91,180 | |||
CRH plc | 1,732,400 | 68,473 | ||||
159,653 | ||||||
Israel (0.1%) | ||||||
* | Check Point Software Technologies Ltd. | 94,500 | 11,934 | |||
Italy (1.5%) | ||||||
UniCredit SpA | 9,241,425 | 85,530 | ||||
Enel SpA | 11,046,888 | 71,837 | ||||
Brembo SpA | 5,007,777 | 50,122 | ||||
207,489 | ||||||
Japan (9.4%) | ||||||
Toyota Motor Corp. | 5,618,600 | 96,267 | ||||
Olympus Corp. | 4,683,500 | 82,435 | ||||
Denso Corp. | 1,317,000 | 80,265 | ||||
ITOCHU Corp. | 2,644,600 | 79,817 | ||||
Bandai Namco Holdings Inc. | 1,061,400 | 71,860 | ||||
Makita Corp. | 2,384,300 | 70,472 | ||||
Nitto Denko Corp. | 989,700 | 66,430 | ||||
Mitsubishi Electric Corp. | 5,823,700 | 60,999 | ||||
Shimano Inc. | 337,200 | 59,747 | ||||
Daiwa Securities Group Inc. | 11,814,800 | 57,906 | ||||
Fujitsu Ltd. | 380,700 | 57,542 | ||||
Kubota Corp. | 3,152,300 | 53,553 | ||||
Disco Corp. | 208,800 | 51,104 | ||||
Koito Manufacturing Co. Ltd. | 1,311,600 | 48,129 | ||||
Nihon Kohden Corp. | 1,916,100 | 45,998 | ||||
Ain Holdings Inc. | 939,600 | 42,145 | ||||
Daito Trust Construction Co. Ltd. | 400,000 | 38,525 | ||||
Komatsu Ltd. | 1,510,000 | 33,985 | ||||
Daikin Industries Ltd. | 220,800 | 33,742 | ||||
Suzuki Motor Corp. | 1,104,000 | 33,280 | ||||
Subaru Corp. | 1,996,600 | 30,298 | ||||
Nomura Holdings Inc. | 7,414,800 | 28,550 |
Shares | Market Value• ($000) | |||||
Taiheiyo Cement Corp. | 1,542,500 | 24,957 | ||||
FANUC Corp. | 86,100 | 13,193 | ||||
Omron Corp. | 169,400 | 9,987 | ||||
1,271,186 | ||||||
Mexico (0.6%) | ||||||
Grupo Financiero Banorte SAB de CV | 11,580,600 | 76,447 | ||||
Netherlands (4.5%) | ||||||
Akzo Nobel NV | 1,053,135 | 91,356 | ||||
1 | Aegon NV | 17,321,382 | 89,806 | |||
Koninklijke DSM NV | 493,255 | 82,921 | ||||
Wolters Kluwer NV | 757,049 | 76,449 | ||||
Universal Music Group NV | 3,051,187 | 70,807 | ||||
1,2 | ABN AMRO Bank NV | 4,225,815 | 52,532 | |||
SBM Offshore NV | 3,117,520 | 45,176 | ||||
Boskalis Westminster | 1,132,746 | 39,340 | ||||
1 | Koninklijke Vopak NV | 1,229,500 | 33,061 | |||
* | AerCap Holdings NV | 563,815 | 26,336 | |||
607,784 | ||||||
Norway (1.0%) | ||||||
Telenor ASA | 3,885,014 | 54,792 | ||||
Equinor ASA | 1,561,271 | 52,771 | ||||
* | Bakkafrost P/F | 360,700 | 24,765 | |||
Yara International ASA | 166,260 | 8,454 | ||||
140,782 | ||||||
Panama (0.6%) | ||||||
* | Copa Holdings SA Class A | 1,053,300 | 79,387 | |||
Philippines (0.2%) | ||||||
Puregold Price Club Inc. | 38,294,400 | 24,128 | ||||
Singapore (2.4%) | ||||||
United Overseas Bank Ltd. | 4,188,200 | 89,654 | ||||
DBS Group Holdings Ltd. | 2,968,700 | 72,023 | ||||
Singapore Telecommunications Ltd. | 30,004,200 | 59,882 | ||||
Sembcorp Industries Ltd. | 20,857,200 | 44,172 | ||||
Venture Corp. Ltd. | 3,018,200 | 37,051 | ||||
* | SATS Ltd. | 7,625,700 | 24,898 | |||
327,680 | ||||||
South Africa (0.6%) | ||||||
Mr Price Group Ltd. | 3,580,795 | 48,535 | ||||
Tiger Brands Ltd. | 3,864,914 | 37,983 | ||||
86,518 | ||||||
South Korea (4.9%) | ||||||
POSCO Holdings Inc. | 654,918 | 149,535 | ||||
SK Hynix Inc. | 1,652,216 | 144,781 | ||||
Samsung Electronics Co. Ltd. | 2,498,844 | 133,172 | ||||
2 | Samsung Electronics Co. Ltd. GDR | 82,440 | 107,688 |
Shares | Market Value• ($000) | |||||
1 | KB Financial Group Inc. | 1,741,411 | 81,018 | |||
LG Household & Health Care Ltd. | 44,174 | 31,637 | ||||
* | SK Square Co. Ltd. | 309,162 | 12,770 | |||
660,601 | ||||||
Spain (0.2%) | ||||||
Industria de Diseno Textil SA | 1,577,858 | 33,083 | ||||
Switzerland (6.6%) | ||||||
* | Holcim AG | 3,916,413 | 191,495 | |||
Cie Financiere Richemont SA (Registered) | 1,058,136 | 122,945 | ||||
UBS Group AG (Registered) | 6,098,067 | 103,525 | ||||
ABB Ltd. (Registered) | 3,366,005 | 100,987 | ||||
Roche Holding AG | 271,627 | 100,723 | ||||
Adecco Group AG (Registered) | 2,351,023 | 90,726 | ||||
Novartis AG (Registered) | 849,470 | 75,067 | ||||
* | ams-OSRAM AG | 3,610,895 | 44,173 | |||
Swatch Group AG | 160,460 | 41,181 | ||||
Credit Suisse Group AG (Registered) | 3,708,173 | 25,168 | ||||
895,990 | ||||||
Taiwan (0.8%) | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,910,000 | 106,869 | ||||
United Kingdom (14.2%) | ||||||
Compass Group plc | 8,997,967 | 189,874 | ||||
RELX plc | 5,481,700 | 163,302 | ||||
BP plc | 33,371,933 | 161,113 | ||||
Anglo American plc | 2,967,575 | 131,437 | ||||
Shell plc | 4,642,433 | 124,630 | ||||
HSBC Holdings plc (XHKG) | 15,383,600 | 96,503 | ||||
* | HSBC Holdings plc | 14,415,035 | 90,081 | |||
Smiths Group plc | 4,902,910 | 89,720 | ||||
Lloyds Banking Group plc | 131,819,542 | 74,869 | ||||
* | Berkeley Group Holdings plc | 1,421,896 | 72,114 | |||
Unilever plc | 1,544,510 | 71,804 | ||||
IMI plc | 3,808,170 | 64,110 | ||||
NatWest Group plc | 22,422,365 | 60,154 | ||||
Travis Perkins plc | 3,765,953 | 57,440 | ||||
Ferguson plc | 444,448 | 55,756 | ||||
Victrex plc | 2,339,306 | 53,344 | ||||
Weir Group plc | 2,721,260 | 52,315 | ||||
Spectris plc | 1,221,820 | 44,687 | ||||
Barclays plc | 23,820,791 | 43,786 | ||||
* | easyJet plc | 6,237,379 | 43,222 | |||
Prudential plc | 2,563,114 | 31,907 | ||||
Taylor Wimpey plc | 20,089,325 | 31,596 | ||||
* | Carnival plc | 1,789,830 | 28,061 | |||
Electrocomponents plc | 1,847,810 | 24,118 |
Shares | Market Value• ($000) | |||||
* | Whitbread plc | 653,543 | 22,813 | |||
Direct Line Insurance Group plc | 5,893,481 | 18,705 | ||||
Smith & Nephew plc | 1,023,363 | 16,587 | ||||
Renishaw plc | 85,312 | 4,508 | ||||
1,918,556 | ||||||
United States (4.1%) | ||||||
Aon plc Class A | 431,918 | 124,388 | ||||
Medtronic plc | 972,114 | 101,450 | ||||
Accenture plc Class A | 246,529 | 74,047 | ||||
1 | Linde plc | 196,315 | 61,572 | |||
* | Capri Holdings Ltd. | 1,282,834 | 61,191 | |||
* | Clarivate plc | 3,320,869 | 52,071 | |||
* | TechnipFMC plc | 5,940,838 | 41,111 | |||
RenaissanceRe Holdings Ltd. | 260,654 | 37,409 | ||||
553,239 | ||||||
Vietnam (0.3%) | ||||||
Vietnam Dairy Products JSC | 12,928,900 | 41,684 | ||||
Total Common Stocks (Cost $12,405,888) | 12,807,381 | |||||
Temporary Cash Investments (5.6%) | ||||||
Money Market Fund (5.6%) | ||||||
3,4 | Vanguard Market Liquidity Fund, 0.409% (Cost $754,133) | 7,542,785 | 754,203 | |||
Total Investments (100.2%) (Cost $13,160,021) | 13,561,584 | |||||
Other Assets and Liabilities—Net (-0.2%) | (33,465) | |||||
Net Assets (100%) | 13,528,119 |
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 $109,963,000. |
2 | 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 April 30, 2022, the aggregate value was $232,575,000, representing 1.7% of net assets. |
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 $134,158,000 was received for securities on loan, of which $95,816,000 is held in Vanguard Market Liquidity Fund and $38,342,000 is held in cash. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI EAFE Index | June 2022 | 1,626 | 162,324 | (2,788) |
MSCI Emerging Market Index | June 2022 | 1,388 | 73,383 | 809 |
(1,979) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $12,405,888) | 12,807,381 |
Affiliated Issuers (Cost $754,133) | 754,203 |
Total Investments in Securities | 13,561,584 |
Investment in Vanguard | 482 |
Cash | 38,342 |
Foreign Currency, at Value (Cost $11,138) | 11,140 |
Cash Collateral Pledged—Futures Contracts | 12,432 |
Receivables for Investment Securities Sold | 44,251 |
Receivables for Accrued Income | 77,670 |
Receivables for Capital Shares Issued | 9,240 |
Total Assets | 13,755,141 |
Liabilities | |
Due to Custodian | 25,993 |
Payables for Investment Securities Purchased | 30,488 |
Collateral for Securities on Loan | 134,158 |
Payables for Capital Shares Redeemed | 8,399 |
Payables to Investment Advisor | 5,718 |
Payables to Vanguard | 1,194 |
Variation Margin Payable—Futures Contracts | 1,880 |
Deferred Foreign Capital Gains Taxes | 19,192 |
Total Liabilities | 227,022 |
Net Assets | 13,528,119 |
1 Includes $109,963 of securities on loan. | |
At April 30, 2022, net assets consisted of: | |
Paid-in Capital | 13,006,063 |
Total Distributable Earnings (Loss) | 522,056 |
Net Assets | 13,528,119 |
Net Assets | |
Applicable to 363,046,250 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,528,119 |
Net Asset Value Per Share | $37.26 |
Six Months Ended April 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 179,191 |
Non-Cash Dividends | 23,691 |
Interest2 | 596 |
Securities Lending—Net | 273 |
Total Income | 203,751 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 11,882 |
Performance Adjustment | 37 |
The Vanguard Group—Note C | |
Management and Administrative | 14,051 |
Marketing and Distribution | 782 |
Custodian Fees | 316 |
Shareholders’ Reports | 117 |
Trustees’ Fees and Expenses | 4 |
Other Expenses | 107 |
Total Expenses | 27,296 |
Net Investment Income | 176,455 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 83,362 |
Futures Contracts | (41,504) |
Forward Currency Contracts | (12) |
Foreign Currencies | (3,021) |
Realized Net Gain (Loss) | 38,825 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | (1,886,127) |
Futures Contracts | 675 |
Foreign Currencies | (3,404) |
Change in Unrealized Appreciation (Depreciation) | (1,888,856) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,673,576) |
1 | Dividends are net of foreign withholding taxes of $17,812,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $596,000, ($99,000), $19,000, and $17,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized gain (loss) is net of foreign capital gains taxes of $1,194,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($2,298,000). |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 176,455 | 351,127 | |
Realized Net Gain (Loss) | 38,825 | 897,431 | |
Change in Unrealized Appreciation (Depreciation) | (1,888,856) | 2,275,436 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,673,576) | 3,523,994 | |
Distributions | |||
Total Distributions | (633,591) | (189,189) | |
Capital Share Transactions | |||
Issued | 1,425,721 | 4,442,988 | |
Issued in Lieu of Cash Distributions | 576,930 | 173,403 | |
Redeemed | (1,386,536) | (2,140,447) | |
Net Increase (Decrease) from Capital Share Transactions | 616,115 | 2,475,944 | |
Total Increase (Decrease) | (1,691,052) | 5,810,749 | |
Net Assets | |||
Beginning of Period | 15,219,171 | 9,408,422 | |
End of Period | 13,528,119 | 15,219,171 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2022 | Year Ended October 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $43.76 | $32.48 | $36.63 | $35.86 | $39.26 | $32.30 |
Investment Operations | ||||||
Net Investment Income1 | .490 | 1.091 | .684 | 1.104 | .950 | .781 |
Net Realized and Unrealized Gain (Loss) on Investments | (5.182) | 10.824 | (3.723) | 1.669 | (3.607) | 6.905 |
Total from Investment Operations | (4.692) | 11.915 | (3.039) | 2.773 | (2.657) | 7.686 |
Distributions | ||||||
Dividends from Net Investment Income | (1.087) | (.635) | (1.111) | (.943) | (.743) | (.726) |
Distributions from Realized Capital Gains | (.721) | — | — | (1.060) | — | — |
Total Distributions | (1.808) | (.635) | (1.111) | (2.003) | (.743) | (.726) |
Net Asset Value, End of Period | $37.26 | $43.76 | $32.48 | $36.63 | $35.86 | $39.26 |
Total Return2 | -11.01% | 36.91% | -8.69% | 8.48% | -6.95% | 24.33% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,528 | $15,219 | $9,408 | $10,360 | $9,524 | $9,964 |
Ratio of Total Expenses to Average Net Assets3 | 0.37% | 0.36% | 0.35% | 0.37% | 0.38% | 0.40% |
Ratio of Net Investment Income to Average Net Assets | 2.39% | 2.56% | 2.05% | 3.15% | 2.41% | 2.21% |
Portfolio Turnover Rate | 19% | 33% | 72% | 38% | 28% | 34% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.00%, (0.01%), (0.02%), (0.01%), (0.01%), and 0.00%. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 1,336,018 | 61,572 | — | 1,397,590 |
Common Stocks—Other | 639,805 | 10,769,986 | — | 11,409,791 |
Temporary Cash Investments | 754,203 | — | — | 754,203 |
Total | 2,730,026 | 10,831,558 | — | 13,561,584 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 809 | — | — | 809 |
Liabilities | ||||
Futures Contracts1 | 2,788 | — | — | 2,788 |
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. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | (41,504) | — | (41,504) |
Forward Currency Contracts | — | (12) | (12) |
Realized Net Gain (Loss) on Derivatives | (41,504) | (12) | (41,516) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 675 | — | 675 |
Forward Currency Contracts | — | — | — |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 675 | — | 675 |
Amount ($000) | |
Tax Cost | 13,177,240 |
Gross Unrealized Appreciation | 1,910,164 |
Gross Unrealized Depreciation | (1,527,799) |
Net Unrealized Appreciation (Depreciation) | 382,365 |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 34,690 | 104,505 | |
Issued in Lieu of Cash Distributions | 14,416 | 4,428 | |
Redeemed | (33,878) | (50,767) | |
Net Increase (Decrease) in Shares Outstanding | 15,228 | 58,166 |
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• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2022 | |||
Diversified Equity Fund | Beginning Account Value 10/31/2021 | Ending Account Value 4/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $836.50 | $1.64 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.01 | 1.81 |
Vanguard U.S. Growth Fund Investor Shares | 28.7% |
Vanguard WindsorTM Fund Investor Shares | 20.6 |
Vanguard Growth and Income Fund Investor Shares | 20.5 |
Vanguard Windsor II Fund Investor Shares | 15.6 |
Vanguard ExplorerTM Fund Investor Shares | 10.0 |
Vanguard Mid-Cap Growth Fund | 4.6 |
Shares | Market Value• ($000) | |||||
Investment Companies (100.0%) | ||||||
U.S. Stock Funds (100.0%) | ||||||
Vanguard U.S. Growth Fund Investor Shares | 14,718,083 | 685,274 | ||||
Vanguard Windsor Fund Investor Shares | 21,203,878 | 493,202 | ||||
Vanguard Growth and Income Fund Investor Shares | 8,698,421 | 490,765 | ||||
Vanguard Windsor II Fund Investor Shares | 9,025,657 | 373,030 | ||||
Vanguard Explorer Fund Investor Shares | 2,269,951 | 238,481 | ||||
Vanguard Mid-Cap Growth Fund | 5,330,436 | 111,033 | ||||
Total Investments (100.0%) (Cost $1,733,848) | 2,391,785 | |||||
Other Assets and Liabilities—Net (0.0%) | 1,090 | |||||
Net Assets (100%) | 2,392,875 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $1,733,848) | 2,391,785 |
Receivables for Investment Securities Sold | 565 |
Receivables for Capital Shares Issued | 1,708 |
Total Assets | 2,394,058 |
Liabilities | |
Due to Custodian | 163 |
Payables for Capital Shares Redeemed | 1,020 |
Total Liabilities | 1,183 |
Net Assets | 2,392,875 |
At April 30, 2022, net assets consisted of: | |
Paid-in Capital | 1,478,807 |
Total Distributable Earnings (Loss) | 914,068 |
Net Assets | 2,392,875 |
Net Assets | |
Applicable to 54,325,522 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,392,875 |
Net Asset Value Per Share | $44.05 |
Six Months Ended April 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 10,700 |
Net Investment Income—Note B | 10,700 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 331,854 |
Affiliated Funds Sold | 2,659 |
Realized Net Gain (Loss) | 334,513 |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | (820,470) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (475,257) |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 10,700 | 19,851 | |
Realized Net Gain (Loss) | 334,513 | 126,784 | |
Change in Unrealized Appreciation (Depreciation) | (820,470) | 757,953 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (475,257) | 904,588 | |
Distributions | |||
Total Distributions | (196,729) | (129,748) | |
Capital Share Transactions | |||
Issued | 192,456 | 591,473 | |
Issued in Lieu of Cash Distributions | 182,595 | 121,380 | |
Redeemed | (275,559) | (441,166) | |
Net Increase (Decrease) from Capital Share Transactions | 99,492 | 271,687 | |
Total Increase (Decrease) | (572,494) | 1,046,527 | |
Net Assets | |||
Beginning of Period | 2,965,369 | 1,918,842 | |
End of Period | 2,392,875 | 2,965,369 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2022 | Year Ended October 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $56.40 | $40.98 | $37.95 | $35.88 | $35.57 | $30.76 |
Investment Operations | ||||||
Net Investment Income1 | .197 | .385 | .452 | .455 | .395 | .428 |
Capital Gain Distributions Received1 | 6.125 | 2.294 | 1.866 | 3.087 | 1.686 | 1.064 |
Net Realized and Unrealized Gain (Loss) on Investments | (14.919) | 15.438 | 3.447 | .575 | .206 | 5.627 |
Total from Investment Operations | (8.597) | 18.117 | 5.765 | 4.117 | 2.287 | 7.119 |
Distributions | ||||||
Dividends from Net Investment Income | (.317) | (.346) | (.369) | (.383) | (.358) | (.414) |
Distributions from Realized Capital Gains | (3.436) | (2.351) | (2.366) | (1.664) | (1.619) | (1.895) |
Total Distributions | (3.753) | (2.697) | (2.735) | (2.047) | (1.977) | (2.309) |
Net Asset Value, End of Period | $44.05 | $56.40 | $40.98 | $37.95 | $35.88 | $35.57 |
Total Return2 | -16.35% | 45.67% | 15.73% | 12.82% | 6.55% | 24.47% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $2,393 | $2,965 | $1,919 | $1,789 | $1,709 | $1,439 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.36% | 0.35% | 0.35% | 0.35% | 0.36% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 0.78% | 0.76% | 1.19% | 1.27% | 1.07% | 1.31% |
Portfolio Turnover Rate | 7% | 6% | 14% | 9% | 8% | 5% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. |
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. |
Amount ($000) | |
Tax Cost | 1,734,433 |
Gross Unrealized Appreciation | 761,454 |
Gross Unrealized Depreciation | (104,102) |
Net Unrealized Appreciation (Depreciation) | 657,352 |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 3,765 | 11,844 | |
Issued in Lieu of Cash Distributions | 3,454 | 2,628 | |
Redeemed | (5,467) | (8,723) | |
Net Increase (Decrease) in Shares Outstanding | 1,752 | 5,749 |
Current Period Transactions | ||||||||
Oct. 31, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2022 Market Value ($000) | |
Vanguard Explorer Fund | 295,430 | 39,796 | 1,191 | 46 | (95,600) | 540 | 39,256 | 238,481 |
Vanguard Growth and Income Fund | 596,559 | 77,422 | 62,242 | 1,318 | (122,292) | 3,468 | 73,955 | 490,765 |
Vanguard Market Liquidity Fund | 145 | NA1 | NA1 | — | — | — | — | — |
Vanguard Mid-Cap Growth Fund | 147,655 | 38,973 | — | — | (75,595) | 18 | 35,761 | 111,033 |
Vanguard U.S. Growth Fund | 893,949 | 192,512 | 3,707 | (538) | (396,942) | 15 | 100,709 | 685,274 |
Vanguard Windsor Fund | 587,802 | 62,877 | 94,401 | 2,172 | (65,248) | 4,024 | 54,102 | 493,202 |
Vanguard Windsor II Fund | 442,795 | 31,224 | 35,857 | (339) | (64,793) | 2,635 | 28,071 | 373,030 |
Total | 2,964,335 | 442,804 | 197,398 | 2,659 | (820,470) | 10,700 | 331,854 | 2,391,785 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
Who Are Deaf or Hard of Hearing > 800-749-7273
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 21 |
Liquidity Risk Management | 23 |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2022 | |||
Emerging Markets Select Stock Fund | Beginning Account Value 10/31/2021 | Ending Account Value 4/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $835.40 | $3.64 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,020.83 | 4.01 |
China | 27.4% |
Taiwan | 11.8 |
India | 11.6 |
Brazil | 11.4 |
South Korea | 7.8 |
Hong Kong | 5.6 |
United States | 3.8 |
Indonesia | 3.5 |
South Africa | 3.0 |
Thailand | 2.2 |
United Kingdom | 1.9 |
Mexico | 1.7 |
Canada | 1.5 |
Other | 6.8 |
Shares | Market Value• ($000) | ||
Common Stocks (94.4%) | |||
Brazil (10.7%) | |||
Petroleo Brasileiro SA ADR (XNYS) | 1,203,199 | 16,327 | |
Vale SA Class B ADR | 796,866 | 13,459 | |
Cia Energetica de Minas Gerais Preference Shares | 2,773,281 | 8,229 | |
Ambev SA | 2,273,066 | 6,676 | |
Raizen SA Preference Shares | 4,009,735 | 5,596 | |
Banco Bradesco SA ADR | 1,332,641 | 4,798 | |
Itau Unibanco Holding SA ADR | 869,703 | 4,166 | |
Itau Unibanco Holding SA Preference Shares | 763,200 | 3,685 | |
B3 SA - Brasil Bolsa Balcao | 1,214,700 | 3,268 | |
Banco Bradesco SA Preference Shares | 701,400 | 2,551 | |
Petroleo Brasileiro SA | 357,173 | 2,416 | |
Petroleo Brasileiro SA ADR | 187,465 | 2,300 | |
* | Azul SA ADR | 158,231 | 2,117 |
Light SA | 887,000 | 1,602 | |
Telefonica Brasil SA | 137,000 | 1,474 | |
Cia de Saneamento Basico do Estado de Sao Paulo | 146,347 | 1,318 | |
Banco Do Brasil SA | 161,400 | 1,084 | |
Magazine Luiza SA | 618,620 | 611 | |
Gerdau SA Preference Shares | 96,600 | 547 | |
Caixa Seguridade Participacoes SA | 321,236 | 509 | |
Raia Drogasil SA | 94,070 | 398 | |
1 | Hapvida Participacoes e Investimentos SA | 178,162 | 316 |
Hypera SA | 39,024 | 295 | |
Totvs SA | 35,700 | 231 | |
83,973 | |||
Canada (1.4%) | |||
First Quantum Minerals Ltd. | 210,316 | 6,030 | |
Lundin Mining Corp. | 340,666 | 3,111 | |
Parex Resources Inc. | 90,005 | 1,754 | |
* | Valeura Energy Inc. | 264,800 | 103 |
10,998 |
Shares | Market Value• ($000) | ||
Chile (0.2%) | |||
2 | Sociedad Quimica y Minera de Chile SA ADR | 20,616 | 1,521 |
China (25.9%) | |||
Tencent Holdings Ltd. | 610,412 | 28,766 | |
* | Alibaba Group Holding Ltd. | 1,740,579 | 21,231 |
China Merchants Bank Co. Ltd. Class H | 1,289,368 | 7,771 | |
*,1 | Meituan Class B | 309,392 | 6,629 |
Ping An Insurance Group Co. of China Ltd. Class H | 959,527 | 6,065 | |
* | Trip.com Group Ltd. ADR | 254,340 | 6,015 |
Zijin Mining Group Co. Ltd. Class H | 3,794,446 | 5,525 | |
China Overseas Land & Investment Ltd. | 1,692,575 | 5,229 | |
China Construction Bank Corp. Class H | 7,163,694 | 5,103 | |
Anhui Conch Cement Co. Ltd. Class H | 839,391 | 4,561 | |
* | Aluminum Corp. of China Ltd. Class H | 9,023,233 | 4,138 |
Baoshan Iron & Steel Co. Ltd. Class A | 3,834,068 | 3,731 | |
* | Baidu Inc. ADR | 27,944 | 3,470 |
Ping An Bank Co. Ltd. Class A | 1,438,474 | 3,325 | |
* | Shanghai International Airport Co. Ltd. Class A | 439,807 | 3,274 |
* | JD.com Inc. Class A | 104,820 | 3,268 |
1 | Ganfeng Lithium Co. Ltd. Class H | 271,780 | 3,253 |
Geely Automobile Holdings Ltd. | 2,090,301 | 3,232 | |
Contemporary Amperex Technology Co. Ltd. Class A (XSHE) | 49,100 | 3,002 | |
Li Ning Co. Ltd. | 381,268 | 2,972 | |
1 | WuXi AppTec Co. Ltd. Class H | 209,976 | 2,856 |
* | Brilliance China Automotive Holdings Ltd. | 3,486,000 | 2,604 |
Contemporary Amperex Technology Co. Ltd. Class A | 40,800 | 2,494 |
Shares | Market Value• ($000) | ||
Industrial & Commercial Bank of China Ltd. Class H | 3,869,666 | 2,333 | |
* | Baidu Inc. Class A | 131,586 | 2,098 |
Nine Dragons Paper Holdings Ltd. | 2,355,888 | 2,081 | |
* | Dongfeng Motor Group Co. Ltd. Class H | 2,838,000 | 2,070 |
China Longyuan Power Group Corp. Ltd. Class H | 1,013,350 | 1,955 | |
Haier Smart Home Co. Ltd. Class H | 544,600 | 1,924 | |
Muyuan Foods Co. Ltd.Class A | 241,670 | 1,896 | |
* | KE Holdings Inc. ADR | 133,284 | 1,890 |
China Tourism Group Duty Free Corp. Ltd. Class A | 69,296 | 1,886 | |
* | Air China Ltd. Class H | 2,693,020 | 1,815 |
Weichai Power Co. Ltd. Class H | 1,214,408 | 1,696 | |
ENN Energy Holdings Ltd. | 111,241 | 1,490 | |
1 | Pharmaron Beijing Co. Ltd. Class H | 118,086 | 1,483 |
Midea Group Co. Ltd. Class A | 159,986 | 1,373 | |
Shenzhou International Group Holdings Ltd. | 93,700 | 1,271 | |
Lufax Holding Ltd. ADR | 227,315 | 1,262 | |
Yunnan Energy New Material Co. Ltd. Class A | 41,300 | 1,258 | |
* | XPeng Inc. Class A ADR | 50,426 | 1,241 |
Suofeiya Home Collection Co. Ltd. Class A | 354,790 | 1,093 | |
Riyue Heavy Industry Co. Ltd. Class A (XSHG) | 432,854 | 1,061 | |
China National Building Material Co. Ltd. Class H | 748,093 | 996 | |
* | Yihai International Holding Ltd. | 343,690 | 968 |
1 | CSC Financial Co. Ltd. Class H | 1,043,657 | 961 |
NetEase Inc. | 49,711 | 952 | |
* | Kingdee International Software Group Co. Ltd. | 462,075 | 943 |
China Oilfield Services Ltd. Class H | 900,508 | 922 | |
Proya Cosmetics Co. Ltd. Class A | 29,920 | 913 | |
China Yangtze Power Co. Ltd. Class A | 263,500 | 906 | |
*,1 | Kuaishou Technology | 95,900 | 783 |
China Gas Holdings Ltd. | 641,547 | 782 | |
Sinoma Science & Technology Co. Ltd. Class A | 239,600 | 730 | |
Guangzhou Tinci Materials Technology Co. Ltd. Class A | 64,700 | 726 | |
1 | Longfor Group Holdings Ltd. | 143,257 | 710 |
Shares | Market Value• ($000) | ||
Shanghai Putailai New Energy Technology Co. Ltd. Class A | 39,560 | 702 | |
Zhongsheng Group Holdings Ltd. | 103,811 | 686 | |
CIFI Holdings Group Co. Ltd. | 1,395,602 | 671 | |
* | Trip.com Group Ltd. | 27,928 | 660 |
Xtep International Holdings Ltd. | 434,773 | 633 | |
1 | Haidilao International Holding Ltd. | 325,000 | 631 |
China Pacific Insurance Group Co. Ltd. Class H | 280,722 | 622 | |
Anker Innovations Technology Co. Ltd. Class A | 72,400 | 620 | |
* | Zai Lab Ltd. ADR | 15,440 | 617 |
ANTA Sports Products Ltd. | 51,613 | 593 | |
*,1 | China Youran Dairy Group Ltd. | 1,444,041 | 585 |
China Vanke Co. Ltd. Class H | 242,800 | 573 | |
Suofeiya Home Collection Co. Ltd. Class A (XSHE) | 184,830 | 569 | |
Yunnan Botanee Bio-Technology Group Co. Ltd.Class A | 17,600 | 525 | |
* | Tencent Music Entertainment Group ADR | 120,430 | 512 |
China Railway Group Ltd. Class A | 462,000 | 495 | |
Zoomlion Heavy Industry Science and Technology Co. Ltd. Class A | 550,100 | 481 | |
* | Grand Baoxin Auto Group Ltd. | 6,482,000 | 466 |
* | JD.com Inc. ADR | 7,525 | 464 |
CSPC Pharmaceutical Group Ltd. | 441,199 | 451 | |
Sany Heavy Industry Co. Ltd. Class A | 175,300 | 436 | |
Country Garden Services Holdings Co. Ltd. | 93,740 | 395 | |
* | XPeng Inc. Class A | 31,278 | 389 |
* | Alibaba Group Holding Ltd. ADR | 3,968 | 385 |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A | 8,100 | 383 | |
* | Qinghai Salt Lake Industry Co. Ltd. Class A | 82,300 | 358 |
Ping An Bank Co. Ltd. Class A (XSHE) | 149,300 | 345 | |
Metallurgical Corp of China Ltd. Class A | 651,900 | 344 | |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 293,518 | 313 | |
* | Dada Nexus Ltd. ADR | 39,391 | 301 |
Angang Steel Co. Ltd.Class A | 558,400 | 292 | |
NetEase Inc. ADR | 3,049 | 291 |
Shares | Market Value• ($000) | ||
Yifeng Pharmacy Chain Co. Ltd. Class A | 51,200 | 284 | |
Glodon Co. Ltd. Class A (XSHE) | 40,600 | 282 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 42,600 | 281 | |
Citic Pacific Ltd. | 259,357 | 268 | |
* | Burning Rock Biotech Ltd. ADR | 44,762 | 247 |
Zhejiang HangKe Technology Inc. Co Class A | 32,552 | 214 | |
* | Yatsen Holding Ltd. ADR | 346,427 | 213 |
* | GDS Holdings Ltd. ADR | 6,103 | 192 |
*,1 | Asymchem Laboratories Tianjin Co. Ltd. Class H | 8,208 | 177 |
* | Vnet Group Inc. ADR | 27,415 | 164 |
Amoy Diagnostics Co. Ltd. Class A | 22,808 | 157 | |
* | Nayuki Holdings Ltd. | 260,130 | 154 |
1 | Hangzhou Tigermed Consulting Co. Ltd. Class H | 15,616 | 151 |
Yifeng Pharmacy Chain Co. Ltd. Class A (XSHG) | 27,170 | 151 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. Class A (XSHE) | 2,300 | 109 | |
Jinyu Bio-Technology Co. Ltd. Class A | 76,200 | 96 | |
*,1 | Akeso Inc. | 50,766 | 95 |
*,1 | Remegen Co. Ltd. Class H | 22,359 | 93 |
*,1 | Venus MedTech Hangzhou Inc. Class H | 48,977 | 90 |
*,1 | Wuxi Biologics Cayman Inc. | 11,134 | 82 |
* | New Oriental Educatio Sp ADR | 6,089 | 76 |
Guangzhou Wondfo Biotech Co. Ltd. | 11,400 | 75 | |
* | TAL Education Group ADR | 16,002 | 54 |
Angang Steel Co. Ltd. Class H | 103,662 | 45 | |
Amoy Diagnostics Co. Ltd. Class A (XSHE) | 6,500 | 45 | |
*,3 | Tianhe Chemicals Group Ltd. | 4,142,000 | — |
202,565 | |||
Czech Republic (0.8%) | |||
CEZ A/S | 98,525 | 4,223 | |
Komercni banka A/S | 55,233 | 1,814 | |
6,037 | |||
Egypt (0.0%) | |||
Commercial International Bank Egypt SAE GDR (Registered) | 1 | — |
Shares | Market Value• ($000) | ||
Greece (0.5%) | |||
* | Alpha Services and Holdings SA | 2,944,249 | 3,314 |
Hellenic Telecommunications Organization SA | 46,235 | 890 | |
4,204 | |||
Hong Kong (5.3%) | |||
Galaxy Entertainment Group Ltd. | 1,838,094 | 10,489 | |
Pacific Basin Shipping Ltd. | 14,857,308 | 6,817 | |
Orient Overseas International Ltd. | 166,618 | 4,598 | |
Lenovo Group Ltd. | 4,226,000 | 4,103 | |
* | Yue Yuen Industrial Holdings Ltd. | 2,572,000 | 3,783 |
AIA Group Ltd. | 226,037 | 2,221 | |
* | Cathay Pacific Airways Ltd. | 2,116,640 | 2,115 |
VTech Holdings Ltd. | 289,500 | 2,048 | |
* | Sands China Ltd. | 920,259 | 2,028 |
Minth Group Ltd. | 424,000 | ��� 999 | |
* | Melco Resorts & Entertainment Ltd. ADR | 115,612 | 661 |
*,1 | ESR Cayman Ltd. | 157,806 | 479 |
* | BeiGene Ltd. | 30,875 | 387 |
* | BeiGene Ltd. ADR | 2,375 | 380 |
Microport Scientific Corp. | 56,646 | 111 | |
41,219 | |||
Hungary (0.9%) | |||
* | OTP Bank Nyrt | 224,399 | 6,694 |
MOL Hungarian Oil & Gas plc | 40,321 | 342 | |
7,036 | |||
India (11.0%) | |||
Reliance Industries Ltd. | 617,300 | 22,366 | |
Housing Development Finance Corp. Ltd. | 188,539 | 5,440 | |
Shriram Transport Finance Co. Ltd. | 340,868 | 5,295 | |
Larsen & Toubro Ltd. | 225,500 | 4,956 | |
* | Axis Bank Ltd. | 519,826 | 4,900 |
ICICI Bank Ltd. ADR | 254,336 | 4,843 | |
Aurobindo Pharma Ltd. | 524,778 | 4,291 | |
UltraTech Cement Ltd. | 44,846 | 3,862 | |
* | Bharti Airtel Ltd (XNSE) | 397,215 | 3,812 |
Tata Consultancy Services Ltd. | 78,989 | 3,640 | |
Tech Mahindra Ltd. | 186,475 | 3,045 | |
State Bank of India | 377,274 | 2,423 | |
Infosys Ltd. ADR | 117,447 | 2,334 | |
1 | HDFC Life Insurance Co. Ltd. | 306,217 | 2,322 |
Kotak Mahindra Bank Ltd. | 97,534 | 2,262 | |
Piramal Enterprises Ltd. | 61,771 | 1,730 | |
Mahindra & Mahindra Ltd. | 124,024 | 1,486 | |
Power Grid Corp. of India Ltd. | 385,039 | 1,141 | |
1 | ICICI Lombard General Insurance Co. Ltd. | 52,443 | 872 |
Dabur India Ltd. | 82,937 | 600 | |
Apollo Hospitals Enterprise Ltd. | 10,204 | 591 |
Shares | Market Value• ($000) | ||
ICICI Bank Ltd. | 55,389 | 532 | |
1 | SBI Life Insurance Co. Ltd. | 35,719 | 513 |
Bharat Electronics Ltd. | 162,091 | 502 | |
UPL Ltd. | 46,489 | 496 | |
Tata Steel Ltd. | 29,118 | 478 | |
Glenmark Life Sciences Ltd. | 68,860 | 425 | |
* | Fortis Healthcare Ltd. | 94,250 | 327 |
PI Industries Ltd. | 6,534 | 242 | |
* | Bharti Airtel Ltd. | 31,104 | 138 |
85,864 | |||
Indonesia (3.3%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 39,645,266 | 13,209 | |
Bank Mandiri Persero Tbk PT | 8,686,000 | 5,334 | |
Telkom Indonesia Persero Tbk PT | 8,820,437 | 2,808 | |
Semen Indonesia Persero Tbk PT | 4,366,400 | 1,927 | |
Bank Central Asia Tbk PT | 2,989,755 | 1,677 | |
* | Mitra Adiperkasa Tbk PT | 5,998,102 | 373 |
Aneka Tambang Tbk | 1,231,000 | 220 | |
25,548 | |||
Japan (0.1%) | |||
* | Universal Entertainment Corp. | 40,900 | 732 |
Kenya (0.1%) | |||
* | Equity Group Holdings plc | 2,706,614 | 1,120 |
Mexico (1.6%) | |||
Grupo Financiero Banorte SAB de CV Class O | 883,460 | 5,832 | |
* | Cemex SAB de CV ADR | 979,519 | 4,310 |
Wal-Mart de Mexico SAB de CV | 490,227 | 1,734 | |
Grupo Mexico SAB de CV Series B | 125,863 | 589 | |
Qualitas Controladora SAB de CV | 83,544 | 450 | |
12,915 | |||
Netherlands (0.1%) | |||
ASML Holding NV | 2,148 | 1,219 | |
Other (0.7%) | |||
4 | Vanguard FTSE Emerging Markets ETF | 121,881 | 5,294 |
Philippines (0.3%) | |||
Bdo Unibank Inc. | 901,347 | 2,227 | |
Ayala Land Inc. | 832,200 | 508 | |
2,735 | |||
Poland (0.2%) | |||
KGHM Polska Miedz SA | 30,774 | 995 | |
*,1 | Allegro.eu SA | 133,365 | 686 |
1,681 | |||
Romania (0.3%) | |||
Banca Transilvania SA | 4,352,156 | 2,198 | |
Russia (0.0%) | |||
3 | MMC Norilsk Nickel PJSC ADR | 200,203 | — |
3 | Sberbank of Russia PJSC | 341,441 | — |
Shares | Market Value• ($000) | ||
3 | Mobile TeleSystems PJSC ADR | 93,946 | — |
*,3 | Moscow Exchange MICEX-RTS PJSC | 536,630 | — |
3 | Magnit PJSC GDR (Registered) | 62,637 | — |
3 | MMC Norilsk Nickel PJSC | 1,247 | — |
3 | Sberbank of Russia PJSC ADR | 759,162 | — |
3 | LUKOIL PJSC ADR | 102,385 | — |
3 | Gazprom PJSC ADR | 463,423 | — |
3 | Novatek PJSC GDR (Registered) | 6,724 | — |
*,2,3 | Ozon Holdings plc ADR | 37,493 | — |
— | |||
Saudi Arabia (0.1%) | |||
Saudi Basic Industries Corp. | 11,897 | 412 | |
SABIC Agri-Nutrients Co. | 5,433 | 234 | |
646 | |||
Singapore (0.7%) | |||
Wilmar International Ltd. | 1,612,000 | 5,139 | |
* | Ezion Holdings Ltd. Warrants Exp. 4/16/23 | 2,242,476 | — |
5,139 | |||
South Africa (2.8%) | |||
* | Sasol Ltd. | 220,687 | 5,406 |
AngloGold Ashanti Ltd. ADR | 263,313 | 5,377 | |
FirstRand Ltd. | 892,467 | 3,844 | |
Impala Platinum Holdings Ltd. | 188,855 | 2,443 | |
Gold Fields Ltd. | 111,984 | 1,517 | |
Reunert Ltd. | 404,483 | 1,128 | |
Sibanye Stillwater Ltd. | 209,645 | 725 | |
Old Mutual Ltd. (XZIM) | 728,169 | 584 | |
Rand Merchant Investment Holdings Ltd. | 272,093 | 468 | |
Harmony Gold Mining Co. Ltd. | 109,898 | 448 | |
* | Discovery Ltd. | 5,313 | 51 |
21,991 | |||
South Korea (7.3%) | |||
Samsung Electronics Co. Ltd. | 288,099 | 15,354 | |
SK Hynix Inc. | 70,635 | 6,190 | |
LG Chem Ltd. | 11,873 | 4,863 | |
Hyundai Motor Co. | 30,927 | 4,487 | |
POSCO Holdings Inc. | 16,576 | 3,785 | |
DB Insurance Co. Ltd. | 67,580 | 3,609 | |
Hankook Tire & Technology Co. Ltd. | 128,630 | 3,531 | |
Samsung Electronics Co. Ltd. Preference Shares | 65,745 | 3,082 | |
Samsung SDI Co. Ltd. | 6,371 | 3,035 | |
Shinhan Financial Group Co. Ltd. | 66,550 | 2,211 | |
Hana Financial Group Inc. | 59,426 | 2,206 | |
KB Financial Group Inc. | 32,680 | 1,520 | |
* | Korea Shipbuilding & Offshore Engineering Co. Ltd. | 21,091 | 1,517 |
Doosan Bobcat Inc. | 33,254 | 1,081 |
Shares | Market Value• ($000) | ||
NAVER Corp. | 4,167 | 928 | |
57,399 | |||
Taiwan (11.1%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,631,650 | 47,587 | |
MediaTek Inc. | 326,756 | 9,008 | |
Hon Hai Precision Industry Co. Ltd. | 2,349,685 | 8,050 | |
Lite-On Technology Corp. | 2,052,000 | 4,496 | |
* | Yageo Corp. | 232,655 | 3,140 |
Compal Electronics Inc. | 3,564,000 | 2,674 | |
Elite Material Co. Ltd. | 347,000 | 2,566 | |
United Integrated Services Co. Ltd. | 388,000 | 2,346 | |
Realtek Semiconductor Corp. | 104,638 | 1,420 | |
Parade Technologies Ltd. | 25,938 | 1,234 | |
ASE Technology Holding Co. Ltd. | 270,678 | 864 | |
Airtac International Group | 23,883 | 648 | |
ASPEED Technology Inc. | 7,158 | 629 | |
China Steel Corp. | 490,872 | 595 | |
Nan Ya Printed Circuit Board Corp. | 37,603 | 499 | |
Globalwafers Co. Ltd. | 28,456 | 496 | |
ASMedia Technology Inc. | 8,790 | 414 | |
Feng TAY Enterprise Co. Ltd. | 36,000 | 232 | |
86,898 | |||
Thailand (2.1%) | |||
* | SCB X PCL NVDR | 1,466,800 | 4,925 |
Charoen Pokphand Foods PCL | 5,736,000 | 4,029 | |
Kasikornbank PCL NVDR | 534,579 | 2,366 | |
Bangkok Bank PCL NVDR | 469,100 | 1,769 | |
Kasikornbank PCL | 191,064 | 846 | |
CP ALL PCL | 442,345 | 834 | |
Bangkok Bank PCL (Registered) | 215,800 | 814 | |
PTT Exploration & Production PCL | 110,200 | 482 | |
Central Pattana PCL | 145,170 | 255 | |
Bangkok Dusit Medical Services PCL Class F | 332,200 | 249 | |
16,569 | |||
Turkey (0.7%) | |||
Akbank TAS | 4,650,486 | 2,787 | |
Tofas Turk Otomobil Fabrikasi A/S | 471,180 | 2,495 | |
5,282 | |||
United Arab Emirates (0.7%) | |||
Abu Dhabi Commercial Bank PJSC | 1,886,050 | 5,214 | |
Emaar Properties PJSC | 110,997 | 191 | |
5,405 | |||
United Kingdom (1.8%) | |||
Standard Chartered plc | 1,136,622 | 7,770 | |
Antofagasta plc | 122,965 | 2,354 | |
Fresnillo plc | 237,806 | 2,301 | |
Anglo American plc | 21,347 | 946 |
Shares | Market Value• ($000) | ||
Polymetal International plc | 121,016 | 372 | |
* | Bank of Cyprus Holdings plc | 161,536 | 179 |
Hikma Pharmaceuticals plc | 7,047 | 166 | |
14,088 | |||
United States (3.6%) | |||
Credicorp Ltd. | 35,936 | 4,991 | |
Freeport-McMoRan Inc. | 118,857 | 4,820 | |
Cognizant Technology Solutions Corp. Class A | 57,337 | 4,638 | |
* | Flex Ltd. | 241,216 | 3,978 |
* | MercadoLibre Inc. | 3,262 | 3,176 |
* | Copa Holdings SA Class A | 23,156 | 1,745 |
* | Coupang Inc. | 112,515 | 1,448 |
* | Afya Ltd. Class A | 89,425 | 1,351 |
* | Sea Ltd. ADR | 15,193 | 1,257 |
Yum China Holdings Inc. | 7,793 | 326 | |
Patria Investments Ltd. Class A | 16,100 | 263 | |
* | StoneCo. Ltd. Class A | 18,159 | 171 |
*,3 | Yandex NV Class A | 11,746 | — |
28,164 | |||
Vietnam (0.1%) | |||
1 | Vinhomes JSC | 181,402 | 512 |
Total Common Stocks (Cost $726,928) | 738,952 | ||
Temporary Cash Investments (5.1%) | |||
Money Market Fund (5.1%) | |||
5,6 | Vanguard Market Liquidity Fund, 0.409% (Cost $40,306) | 403,143 | 40,310 |
Total Investments (99.5%) (Cost $767,234) | 779,262 | ||
Other Assets and Liabilities—Net (0.5%) | 3,839 | ||
Net Assets (100%) | 783,101 | ||
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 April 30, 2022, the aggregate value was $24,279,000, representing 3.1% of net assets. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $1,402,000. |
3 | Security value determined using significant unobservable inputs. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
5 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
6 | Collateral of $1,969,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. | |
NVDR—Non-Voting Depository Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI Emerging Markets Index | June 2022 | 497 | 26,276 | (356) |
Forward Currency Contracts | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
State Street Bank & Trust Co. | 5/9/22 | IDR | 719,813 | USD | 50 | — | — |
State Street Bank & Trust Co. | 5/9/22 | USD | 4 | SAR | 15 | — | — |
— | — |
IDR—Indonesian rupiah. |
SAR—Saudi Arabia Riyal. |
USD—U.S. dollar. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $721,452) | 733,658 |
Affiliated Issuers (Cost $45,782) | 45,604 |
Total Investments in Securities | 779,262 |
Investment in Vanguard | 29 |
Cash | 2,695 |
Cash Collateral Pledged—Futures Contracts | 1,657 |
Foreign Currency, at Value (Cost $1,332) | 1,334 |
Receivables for Investment Securities Sold | 3,715 |
Receivables for Accrued Income | 4,703 |
Receivables for Capital Shares Issued | 305 |
Variation Margin Receivable—Futures Contracts | 110 |
Unrealized Appreciation—Forward Currency Contracts | — |
Total Assets | 793,810 |
Liabilities | |
Payables for Investment Securities Purchased | 3,564 |
Collateral for Securities on Loan | 1,969 |
Payables to Investment Advisor | 993 |
Payables for Capital Shares Redeemed | 2,113 |
Payables to Vanguard | 99 |
Unrealized Depreciation—Forward Currency Contracts | — |
Foreign Capital Gain Taxes Payable | 4 |
Deferred Foreign Capital Gains Taxes | 1,967 |
Total Liabilities | 10,709 |
Net Assets | 783,101 |
1 Includes $1,402 of securities on loan. | |
At April 30, 2022, net assets consisted of: | |
Paid-in Capital | 806,413 |
Total Distributable Earnings (Loss) | (23,312) |
Net Assets | 783,101 |
Net Assets | |
Applicable to 37,040,915 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 783,101 |
Net Asset Value Per Share | $21.14 |
Six Months Ended April 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 13,264 |
Dividends—Affiliated Issuers | 27 |
Interest—Unaffiliated Issuers | 1 |
Interest—Affiliated Issuers | 37 |
Securities Lending—Net | 16 |
Total Income | 13,345 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 2,332 |
Performance Adjustment | (96) |
The Vanguard Group—Note C | |
Management and Administrative | 1,166 |
Marketing and Distribution | 48 |
Custodian Fees | 97 |
Shareholders’ Reports | 22 |
Trustees’ Fees and Expenses | — |
Other Expenses | 8 |
Total Expenses | 3,577 |
Net Investment Income | 9,768 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | 1 |
Investment Securities Sold—Unaffiliated Issuers2 | (26,406) |
Investment Securities Sold—Affiliated Issuers | (239) |
Futures Contracts | (7,589) |
Forward Currency Contracts | 1 |
Foreign Currencies | (332) |
Realized Net Gain (Loss) | (34,564) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers3 | (133,656) |
Investment Securities—Affiliated Issuers | (197) |
Futures Contracts | (117) |
Forward Currency Contracts | — |
Foreign Currencies | 31 |
Change in Unrealized Appreciation (Depreciation) | (133,939) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (158,735) |
1 | Dividends are net of foreign withholding taxes of $1,532,000. |
2 | Realized gain (loss) is net of foreign capital gain taxes of ($36,000) . |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($1,191,000). |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 9,768 | 15,932 | |
Realized Net Gain (Loss) | (34,564) | 57,460 | |
Change in Unrealized Appreciation (Depreciation) | (133,939) | 77,997 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (158,735) | 151,389 | |
Distributions | |||
Total Distributions | (59,107) | (8,567) | |
Capital Share Transactions | |||
Issued | 99,369 | 384,600 | |
Issued in Lieu of Cash Distributions | 50,609 | 7,584 | |
Redeemed | (123,444) | (230,893) | |
Net Increase (Decrease) from Capital Share Transactions | 26,534 | 161,291 | |
Total Increase (Decrease) | (191,308) | 304,113 | |
Net Assets | |||
Beginning of Period | 974,409 | 670,296 | |
End of Period | 783,101 | 974,409 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2022 | Year Ended October 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $27.09 | $22.18 | $21.87 | $19.68 | $22.56 | $18.27 |
Investment Operations | ||||||
Net Investment Income1 | .263 | .457 | .298 | .4742 | .414 | .413 |
Net Realized and Unrealized Gain (Loss) on Investments | (4.552) | 4.729 | .483 | 2.208 | (2.943) | 4.129 |
Total from Investment Operations | (4.289) | 5.186 | .781 | 2.682 | (2.529) | 4.542 |
Distributions | ||||||
Dividends from Net Investment Income | (.486) | (.276) | (.471) | (.492) | (.351) | (.252) |
Distributions from Realized Capital Gains | (1.175) | — | — | — | — | — |
Total Distributions | (1.661) | (.276) | (.471) | (.492) | (.351) | (.252) |
Net Asset Value, End of Period | $21.14 | $27.09 | $22.18 | $21.87 | $19.68 | $22.56 |
Total Return3 | -16.46% | 23.44% | 3.51% | 13.96% | -11.39% | 25.28% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $783 | $974 | $670 | $702 | $564 | $646 |
Ratio of Total Expenses to Average Net Assets4 | 0.80% | 0.84% | 0.85% | 0.93% | 0.94% | 0.92% |
Ratio of Net Investment Income to Average Net Assets | 2.17% | 1.65% | 1.43% | 2.25%2 | 1.85% | 2.04% |
Portfolio Turnover Rate | 20% | 48% | 52% | 46% | 76% | 44% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $0.071 and 0.34%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Includes performance-based investment advisory fee increases (decreases) of (0.02%), 0.02%, (0.01%), 0.07%, 0.05%, and (0.01%). |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | The investment advisory firms Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Capital Management, L.P., and Pzena Investment Management, LLC, 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 fees of Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Capital Management, L.P., and Pzena Investment Management, LLC are subject to quarterly adjustments based on performance relative to the FTSE Emerging Index for the preceding three years. |
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. |
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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 137,571 | — | — | 137,571 |
Common Stocks—Other | 36,283 | 565,098 | — | 601,381 |
Temporary Cash Investments | 40,310 | — | — | 40,310 |
Total | 214,164 | 565,098 | — | 779,262 |
Derivative Financial Instruments | ||||
Assets | ||||
Forward Currency Contracts | — | — | — | — |
Liabilities | ||||
Futures Contracts1 | 356 | — | — | 356 |
Forward Currency Contracts | — | — | — | — |
Total | 356 | — | — | 356 |
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 April 30, 2022, 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 | — | — | — |
Statement of Assets and Liabilities | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Depreciation—Futures Contracts1 | 356 | — | 356 |
Unrealized Depreciation—Forward Currency Contracts | — | — | — |
Total Liabilities | 356 | — | 356 |
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. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | (7,589) | — | (7,589) |
Forward Currency Contracts | — | 1 | 1 |
Realized Net Gain (Loss) on Derivatives | (7,589) | 1 | (7,588) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | (117) | — | (117) |
Forward Currency Contracts | — | — | — |
Change in Unrealized Appreciation (Depreciation) on Derivatives | (117) | — | (117) |
F. | As of April 30, 2022, 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 | 777,305 |
Gross Unrealized Appreciation | 128,685 |
Gross Unrealized Depreciation | (127,084) |
Net Unrealized Appreciation (Depreciation) | 1,601 |
G. | During the six months ended April 30, 2022, the fund purchased $168,837,000 of investment securities and sold $185,800,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 4,074 | 13,807 | |
Issued in Lieu of Cash Distributions | 2,150 | 294 | |
Redeemed | (5,148) | (8,359) | |
Net Increase (Decrease) in Shares Outstanding | 1,076 | 5,742 |
I. | Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows: |
Current Period Transactions | ||||||||
Oct. 31, 2021 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2022 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 1,764 | 9,747 | 5,788 | (233) | (196) | 27 | — | 5,294 |
Vanguard Market Liquidity Fund | 59,595 | NA1 | NA1 | (6) | (1) | 37 | 1 | 40,310 |
Total | 61,359 | 9,747 | 5,788 | (239) | (197) | 64 | 1 | 45,604 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Management has determined that no events or transactions occurred subsequent to April 30, 2022, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 23 |
Liquidity Risk Management | 25 |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2022 | |||
Alternative Strategies Fund | Beginning Account Value 10/31/2021 | Ending Account Value 4/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,016.10 | $3.60 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,021.22 | 3.61 |
Long Portfolio1 | Short Portfolio2 | |
Communication Services | 2.5% | 4.0% |
Consumer Discretionary | 6.8 | 14.9 |
Consumer Staples | 10.7 | 1.5 |
Energy | 2.0 | 7.0 |
Financials | 5.5 | — |
Health Care | 17.1 | 20.7 |
Industrials | 9.0 | 9.1 |
Information Technology | 29.2 | 33.4 |
Materials | 4.4 | 6.0 |
Real Estate | 6.8 | 3.4 |
Utilities | 6.0 | — |
1 | Percentage of investments in long portfolio. |
2 | Percentage of investments in short portfolio. |
Shares | Market Value• ($000) | ||
Common Stocks—Long Positions (29.3%) | |||
Communication Services (0.8%) | |||
1 | Electronic Arts Inc. | 906 | 107 |
1 | Verizon Communications Inc. | 2,155 | 100 |
*,1 | Alphabet Inc. Class A | 43 | 98 |
1 | Comcast Corp. Class A | 2,319 | ��92 |
*,1 | Walt Disney Co. | 786 | 88 |
1 | AT&T Inc. | 4,660 | 88 |
*,1 | Liberty Broadband Corp. Class C | 777 | 87 |
*,1 | Charter Communications Inc. Class A | 183 | 78 |
*,1 | T-Mobile US Inc. | 507 | 62 |
*,1 | Madison Square Garden Sports Corp. | 209 | 34 |
834 | |||
Consumer Discretionary (2.0%) | |||
1 | Dollar General Corp. | 476 | 113 |
1 | Genuine Parts Co. | 867 | 113 |
1 | McDonald's Corp. | 452 | 113 |
1 | Gentex Corp. | 3,825 | 112 |
1 | Service Corp. International | 1,656 | 109 |
1 | TJX Cos. Inc. | 1,787 | 109 |
1 | Yum! Brands Inc. | 929 | 109 |
1 | NIKE Inc. Class B | 824 | 103 |
*,1 | AutoZone Inc. | 52 | 102 |
Leggett & Platt Inc. | 2,865 | 102 | |
1 | Tractor Supply Co. | 506 | 102 |
*,1 | O'Reilly Automotive Inc. | 166 | 101 |
1 | Wendy's Co. | 5,108 | 101 |
Lowe's Cos. Inc. | 499 | 99 | |
1 | Columbia Sportswear Co. | 1,200 | 98 |
1 | Home Depot Inc. | 326 | 98 |
1 | Pool Corp. | 237 | 96 |
1 | Garmin Ltd. | 855 | 94 |
1 | VF Corp. | 1,750 | 91 |
1 | Starbucks Corp. | 1,208 | 90 |
*,1 | Amazon.com Inc. | 36 | 89 |
1 | Yum China Holdings Inc. | 1,415 | 59 |
2,203 | |||
Consumer Staples (3.1%) | |||
Sanderson Farms Inc. | 7,630 | 1,445 | |
1 | Kimberly-Clark Corp. | 891 | 124 |
1 | Mondelez International Inc. Class A | 1,883 | 121 |
1 | Altria Group Inc. | 2,162 | 120 |
Hershey Co. | 530 | 120 | |
1 | Flowers Foods Inc. | 4,495 | 119 |
Shares | Market Value• ($000) | ||
1 | Brown-Forman Corp. Class B | 1,740 | 117 |
1 | PepsiCo Inc. | 683 | 117 |
1 | Procter & Gamble Co. | 726 | 117 |
1 | J M Smucker Co. | 856 | 117 |
1 | McCormick & Co. Inc. | 1,153 | 116 |
1 | Archer-Daniels-Midland Co. | 1,268 | 114 |
1 | Coca-Cola Co. | 1,762 | 114 |
General Mills Inc. | 1,569 | 111 | |
1 | Colgate-Palmolive Co. | 1,400 | 108 |
1 | Costco Wholesale Corp. | 190 | 101 |
1 | Philip Morris International Inc. | 982 | 98 |
*,1 | Post Holdings Inc. | 1,200 | 89 |
Casey's General Stores Inc. | 292 | 59 | |
1 | Church & Dwight Co. Inc. | 447 | 44 |
3,471 | |||
Energy (0.6%) | |||
* | Renewable Energy Group Inc. | 3,710 | 227 |
1 | Kinder Morgan Inc. | 6,191 | 112 |
1 | Williams Cos. Inc. | 3,226 | 111 |
1 | Chevron Corp. | 676 | 106 |
1 | Cheniere Energy Inc. | 641 | 87 |
643 | |||
Financials (1.6%) | |||
1 | CNA Financial Corp. | 2,472 | 117 |
1 | Hanover Insurance Group Inc. | 764 | 112 |
1 | W R Berkley Corp. | 1,675 | 111 |
*,1 | Berkshire Hathaway Inc. Class B | 345 | 111 |
1 | Arthur J Gallagher & Co. | 654 | 110 |
1 | Marsh & McLennan Cos. Inc. | 672 | 109 |
Travelers Cos. Inc. | 635 | 109 | |
1 | Allstate Corp. | 818 | 104 |
Moody's Corp. | 327 | 103 | |
Aflac Inc. | 1,802 | 103 | |
1 | Brown & Brown Inc. | 1,606 | 100 |
1 | TFS Financial Corp. | 6,660 | 100 |
Nasdaq Inc. | 628 | 99 | |
1 | Annaly Capital Management Inc. | 15,312 | 98 |
1 | Intercontinental Exchange Inc. | 836 | 97 |
*,1 | Markel Corp. | 72 | 97 |
1 | AGNC Investment Corp. | 7,713 | 85 |
1 | White Mountains Insurance Group Ltd. | 19 | 20 |
1,785 |
Shares | Market Value• ($000) | ||
Health Care (5.0%) | |||
* | Intersect ENT Inc. | 72,500 | 1,984 |
Cerner Corp. | 11,500 | 1,077 | |
1 | Merck & Co. Inc. | 1,303 | 116 |
1 | Bristol-Myers Squibb Co. | 1,500 | 113 |
1 | Johnson & Johnson | 623 | 112 |
1 | Thermo Fisher Scientific Inc. | 200 | 111 |
1 | UnitedHealth Group Inc. | 216 | 110 |
1 | AmerisourceBergen Corp. Class A | 720 | 109 |
1 | Becton Dickinson and Co. | 436 | 108 |
1 | Quest Diagnostics Inc. | 798 | 107 |
*,1 | Henry Schein Inc. | 1,310 | 106 |
1 | STERIS plc | 471 | 106 |
1 | Medtronic plc | 1,010 | 105 |
1 | Abbott Laboratories | 918 | 104 |
1 | Amgen Inc. | 447 | 104 |
1 | Baxter International Inc. | 1,462 | 104 |
1 | CVS Health Corp. | 1,076 | 103 |
Gilead Sciences Inc. | 1,735 | 103 | |
*,1 | Mettler-Toledo International Inc. | 81 | 103 |
*,1 | QIAGEN NV | 2,272 | 103 |
1 | Danaher Corp. | 395 | 99 |
1 | Cooper Cos. Inc. | 262 | 95 |
Laboratory Corp. of America Holdings | 396 | 95 | |
* | Enovis Corp. | 1,464 | 95 |
1 | Agilent Technologies Inc. | 785 | 94 |
1 | Zoetis Inc. | 525 | 93 |
5,559 | |||
Industrials (2.6%) | |||
* | Meritor Inc. | 8,090 | 290 |
1 | Carlisle Cos. Inc. | 470 | 122 |
1 | Republic Services Inc. Class A | 898 | 121 |
1 | Waste Management Inc. | 715 | 118 |
1 | General Dynamics Corp. | 493 | 117 |
1 | Hubbell Inc. Class B | 599 | 117 |
1 | Fastenal Co. | 2,040 | 113 |
1 | Allegion plc | 992 | 113 |
1 | Honeywell International Inc. | 578 | 112 |
1 | Norfolk Southern Corp. | 425 | 110 |
1 | Expeditors International of Washington Inc. | 1,104 | 109 |
1 | AMETEK Inc. | 846 | 107 |
1 | Illinois Tool Works Inc. | 544 | 107 |
1 | PACCAR Inc. | 1,287 | 107 |
1 | Verisk Analytics Inc. Class A | 523 | 107 |
1 | Lockheed Martin Corp. | 246 | 106 |
1 | IDEX Corp. | 549 | 104 |
3M Co. | 722 | 104 | |
Eaton Corp. plc | 691 | 100 | |
1 | Ingersoll Rand Inc. | 2,250 | 99 |
Union Pacific Corp. | 419 | 98 | |
1 | AMERCO | 179 | 96 |
1 | BWX Technologies Inc. | 1,854 | 96 |
1 | Cummins Inc. | 481 | 91 |
Johnson Controls International plc | 898 | 54 | |
MSC Industrial Direct Co. Inc. Class A | 596 | 49 | |
1 | Schneider National Inc. Class B | 1,475 | 35 |
1 | Lennox International Inc. | 134 | 28 |
2,930 |
Shares | Market Value• ($000) | ||
Information Technology (8.6%) | |||
* | NeoPhotonics Corp. | 88,462 | 1,339 |
* | Vonage Holdings Corp. | 58,200 | 1,162 |
* | Bottomline Technologies DE Inc. | 20,342 | 1,152 |
* | Anaplan Inc. | 16,668 | 1,083 |
* | Mimecast Ltd. | 12,839 | 1,023 |
Citrix Systems Inc. | 6,500 | 651 | |
1 | Roper Technologies Inc. | 252 | 118 |
*,1 | Akamai Technologies Inc. | 1,004 | 113 |
1 | International Business Machines Corp. | 856 | 113 |
*,1 | Fiserv Inc. | 1,141 | 112 |
1 | Jack Henry & Associates Inc. | 590 | 112 |
1 | Texas Instruments Inc. | 656 | 112 |
1 | Automatic Data Processing Inc. | 510 | 111 |
1 | Amdocs Ltd. | 1,399 | 111 |
1 | Visa Inc. Class A | 518 | 110 |
1 | Broadridge Financial Solutions Inc. | 754 | 109 |
1 | Apple Inc. | 683 | 108 |
1 | Broadcom Inc. | 195 | 108 |
1 | Dolby Laboratories Inc. Class A | 1,398 | 108 |
1 | Paychex Inc. | 843 | 107 |
1 | Accenture plc Class A | 357 | 107 |
1 | Analog Devices Inc. | 689 | 106 |
1 | Amphenol Corp. Class A | 1,471 | 105 |
1 | Juniper Networks Inc. | 3,344 | 105 |
1 | Microsoft Corp. | 373 | 104 |
1 | Motorola Solutions Inc. | 486 | 104 |
1 | CDW Corp. | 613 | 100 |
Cisco Systems Inc. | 1,989 | 97 | |
*,1 | Keysight Technologies Inc. | 691 | 97 |
NetApp Inc. | 1,326 | 97 | |
1 | SS&C Technologies Holdings Inc. | 1,478 | 96 |
*,1 | VeriSign Inc. | 530 | 95 |
1 | Western Union Co. | 5,678 | 95 |
* | Teledyne Technologies Inc. | 213 | 92 |
1 | Intuit Inc. | 215 | 90 |
Cognizant Technology Solutions Corp. Class A | 518 | 42 | |
9,494 | |||
Materials (1.3%) | |||
1 | Packaging Corp. of America | 755 | 122 |
1 | Sherwin-Williams Co. | 432 | 119 |
International Paper Co. | 2,536 | 117 | |
1 | Sonoco Products Co. | 1,862 | 115 |
Amcor plc | 9,649 | 114 | |
1 | RPM International Inc. | 1,352 | 112 |
1 | Avery Dennison Corp. | 611 | 110 |
1 | Air Products and Chemicals Inc. | 466 | 109 |
1 | Ecolab Inc. | 618 | 105 |
1 | Ball Corp. | 1,254 | 102 |
AptarGroup Inc. | 869 | 100 | |
Silgan Holdings Inc. | 2,247 | 100 | |
International Flavors & Fragrances Inc. | 803 | 97 | |
1,422 | |||
Real Estate (2.0%) | |||
WP Carey Inc. | 1,436 | 116 | |
1 | Invitation Homes Inc. | 2,826 | 113 |
1 | Mid-America Apartment Communities Inc. | 558 | 110 |
Shares | Market Value• ($000) | ||
1 | AvalonBay Communities Inc. | 478 | 109 |
1 | Camden Property Trust | 697 | 109 |
1 | Alexandria Real Estate Equities Inc. | 592 | 108 |
1 | American Homes 4 Rent Class A | 2,726 | 108 |
1 | Duke Realty Corp. | 1,967 | 108 |
1 | Public Storage | 291 | 108 |
1 | Sun Communities Inc. | 616 | 108 |
1 | Equity Residential | 1,317 | 107 |
Gaming and Leisure Properties Inc. | 2,418 | 107 | |
1 | Life Storage Inc. | 807 | 107 |
First Industrial Realty Trust Inc. | 1,808 | 105 | |
1 | UDR Inc. | 1,979 | 105 |
1 | CubeSmart | 2,172 | 103 |
1 | Extra Space Storage Inc. | 529 | 101 |
Spirit Realty Capital Inc. | 2,297 | 100 | |
Realty Income Corp. | 1,420 | 98 | |
Healthpeak Properties Inc. | 2,919 | 96 | |
1 | Equinix Inc. | 75 | 54 |
STORE Capital Corp. | 989 | 28 | |
2,208 | |||
Utilities (1.7%) | |||
1 | Southern Co. | 1,607 | 118 |
1 | Ameren Corp. | 1,237 | 115 |
1 | CMS Energy Corp. | 1,671 | 115 |
1 | DTE Energy Co. | 876 | 115 |
1 | Consolidated Edison Inc. | 1,220 | 113 |
PPL Corp. | 3,994 | 113 | |
Public Service Enterprise Group Inc. | 1,631 | 113 | |
1 | Duke Energy Corp. | 1,020 | 112 |
1 | OGE Energy Corp. | 2,886 | 112 |
1 | American Electric Power Co. Inc. | 1,118 | 111 |
1 | Exelon Corp. | 2,367 | 111 |
1 | Dominion Energy Inc. | 1,352 | 110 |
1 | Atmos Energy Corp. | 954 | 108 |
1 | Alliant Energy Corp. | 1,811 | 106 |
1 | IDACORP Inc. | 1,006 | 106 |
1 | Avangrid Inc. | 2,317 | 103 |
1 | NextEra Energy Inc. | 1,433 | 102 |
Xcel Energy Inc. | 766 | 56 | |
1,939 | |||
Total Common Stocks—Long Positions (Cost $27,297) | 32,488 | ||
Temporary Cash Investments (16.9%) | |||
Money Market Fund (16.9%) | |||
2 | Vanguard Market Liquidity Fund, 0.409% (Cost $18,659) | 186,634 | 18,661 |
Common Stocks Sold Short (-7.5%) | |||
Communication Services (-0.3%) | |||
Paramount Global Class B | (3,183) | (93) | |
* | Vimeo Inc. | (8,213) | (84) |
* | Pinterest Inc. Class A | (4,070) | (83) |
* | Roku Inc. | (838) | (78) |
(338) | |||
Consumer Discretionary (-1.1%) | |||
* | Norwegian Cruise Line Holdings Ltd. | (5,354) | (107) |
* | Nordstrom Inc. | (3,931) | (101) |
Shares | Market Value• ($000) | ||
* | Victoria's Secret & Co. | (2,144) | (101) |
* | Carnival Corp. | (5,626) | (97) |
* | Penn National Gaming Inc. | (2,492) | (91) |
* | Tesla Inc. | (99) | (86) |
* | Capri Holdings Ltd. | (1,750) | (83) |
* | Royal Caribbean Cruises Ltd. | (1,007) | (78) |
* | Peloton Interactive Inc. Class A | (4,368) | (77) |
* | DraftKings Inc. Class A | (5,447) | (75) |
* | DoorDash Inc. Class A | (903) | (74) |
* | Chegg Inc. | (2,960) | (73) |
* | Etsy Inc. | (670) | (62) |
* | Vroom Inc. | (36,992) | (58) |
* | Carvana Co. Class A | (804) | (47) |
* | Wayfair Inc. Class A | (504) | (39) |
(1,249) | |||
Consumer Staples (-0.1%) | |||
* | Coty Inc. Class A | (13,012) | (105) |
* | Freshpet Inc. | (212) | (20) |
(125) | |||
Energy (-0.5%) | |||
NOV Inc. | (6,057) | (110) | |
Occidental Petroleum Corp. | (1,943) | (107) | |
APA Corp. | (2,554) | (105) | |
Texas Pacific Land Corp. | (74) | (101) | |
New Fortress Energy Inc. Class A | (2,351) | (91) | |
Marathon Oil Corp. | (2,934) | (73) | |
(587) | |||
Health Care (-1.6%) | |||
* | Biogen Inc. | (541) | (112) |
* | Quidel Corp. | (1,030) | (104) |
* | Definitive Healthcare Corp. Class A | (4,379) | (104) |
* | Sarepta Therapeutics Inc. | (1,393) | (101) |
* | Iovance Biotherapeutics Inc. | (6,564) | (99) |
* | Novocure Ltd. | (1,253) | (96) |
* | Guardant Health Inc. | (1,508) | (93) |
* | Signify Health Inc. Class A | (6,636) | (92) |
* | Sage Therapeutics Inc. | (2,894) | (91) |
* | Moderna Inc. | (660) | (89) |
* | Certara Inc. | (4,740) | (87) |
* | Natera Inc. | (2,461) | (86) |
* | agilon health Inc. | (4,843) | (86) |
* | Oak Street Health Inc. | (4,618) | (84) |
* | Maravai LifeSciences Holdings Inc. Class A | (2,742) | (84) |
* | Exact Sciences Corp. | (1,261) | (69) |
* | Nektar Therapeutics Class A | (16,611) | (69) |
* | 10X Genomics Inc. Class A | (1,447) | (69) |
* | Adaptive Biotechnologies Corp. | (8,125) | (67) |
* | Novavax Inc. | (917) | (41) |
* | Teladoc Health Inc. | (250) | (8) |
(1,731) | |||
Industrials (-0.7%) | |||
* | United Airlines Holdings Inc. | (2,472) | (125) |
* | American Airlines Group Inc. | (6,088) | (114) |
Spirit AeroSystems Holdings Inc. Class A | (2,378) | (100) | |
Ingersoll Rand Inc. | (2,250) | (99) | |
* | Lyft Inc. Class A | (2,688) | (88) |
* | Plug Power Inc. | (3,806) | (80) |
* | Sunrun Inc. | (3,927) | (78) |
Shares | Market Value• ($000) | ||
* | Shoals Technologies Group Inc. Class A | (7,586) | (76) |
(760) | |||
Information Technology (-2.5%) | |||
* | Sabre Corp. | (10,649) | (111) |
* | EPAM Systems Inc. | (387) | (103) |
* | Jamf Holding Corp. | (3,302) | (102) |
* | Everbridge Inc. | (2,352) | (101) |
* | Crowdstrike Holdings Inc. Class A | (505) | (100) |
* | New Relic Inc. | (1,547) | (98) |
* | Teradata Corp. | (2,359) | (98) |
* | Shift4 Payments Inc. Class A | (1,830) | (96) |
* | Fastly Inc. Class A | (5,951) | (95) |
* | Pure Storage Inc. Class A | (3,195) | (94) |
* | Datadog Inc. Class A | (782) | (94) |
* | Wolfspeed Inc. | (1,012) | (93) |
* | Palantir Technologies Inc. Class A | (8,776) | (91) |
* | MongoDB Inc. Class A | (253) | (90) |
* | StoneCo Ltd. Class A | (9,570) | (90) |
* | DoubleVerify Holdings Inc. | (4,134) | (90) |
* | Enphase Energy Inc. | (548) | (88) |
* | Paysafe Ltd. | (31,535) | (88) |
* | Zscaler Inc. | (417) | (85) |
* | Coupa Software Inc. | (973) | (84) |
* | ViaSat Inc. | (2,296) | (84) |
* | Bill.com Holdings Inc. | (493) | (84) |
* | Block Inc. (XNYS) | (839) | (83) |
* | Wix.com Ltd. | (1,076) | (81) |
* | Trade Desk Inc. Class A | (1,304) | (77) |
* | Cloudflare Inc. Class A | (877) | (76) |
* | Unity Software Inc. | (1,144) | (76) |
* | Snowflake Inc. Class A | (398) | (68) |
* | Elastic NV | (809) | (62) |
* | Twilio Inc. Class A | (410) | (46) |
* | Informatica Inc. Class A | (2,219) | (43) |
* | CommScope Holding Co. Inc. | (6,891) | (42) |
Shares | Market Value• ($000) | ||
* | nCino Inc. | (1,097) | (41) |
* | DocuSign Inc. Class A | (436) | (35) |
(2,789) | |||
Materials (-0.5%) | |||
* | Sylvamo Corp. | (3,134) | (140) |
Freeport-McMoRan Inc. | (2,438) | (99) | |
* | Cleveland-Cliffs Inc. | (3,686) | (94) |
United States Steel Corp. | (3,057) | (93) | |
Alcoa Corp. | (1,156) | (78) | |
(504) | |||
Real Estate (-0.2%) | |||
Orion Office REIT Inc. | (7,519) | (101) | |
* | Opendoor Technologies Inc. | (13,712) | (96) |
* | Zillow Group Inc. Class C | (1,190) | �� (47) |
* | Zillow Group Inc. Class A | (971) | (38) |
(282) | |||
Total Common Stocks Sold Short (Proceeds $11,623) | (8,365) | ||
Other Assets and Other Liabilities—Net (61.3%) | 68,080 | ||
Net Assets (100%) | 110,864 | ||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
* | Non-income-producing security. |
1 | Long security positions with a value of $17,457,000 are held in a segregated account at the fund's custodian bank and pledged to a broker-dealer as collateral for the fund's obligation to return borrowed securities. For so long as such obligations continue, the fund’s access to these assets is subject to authorization from the broker-dealer. |
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. |
REIT—Real Estate Investment Trust. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
2-Year U.S. Treasury Note | June 2022 | 441 | 92,968 | (1,633) |
5-Year U.S. Treasury Note | June 2022 | 190 | 21,408 | (925) |
10-Year U.S. Treasury Note | June 2022 | 115 | 13,703 | (832) |
AEX Index | May 2022 | 30 | 4,472 | (52) |
CAC 40 Index | May 2022 | 68 | 4,646 | 49 |
Coffee1 | July 2022 | 7 | 583 | (5) |
Cotton1 | July 2022 | 21 | 1,529 | 36 |
FTSE MIB Index | June 2022 | 35 | 4,416 | 200 |
FTSE Taiwan Index | May 2022 | 82 | 4,780 | 24 |
IBEX 35 Index | May 2022 | 51 | 4,611 | 26 |
LME Aluminum1 | May 2022 | 11 | 835 | (56) |
LME Lead1 | June 2022 | 24 | 1,356 | (116) |
LME Tin1 | May 2022 | 6 | 1,218 | (84) |
LME Zinc1 | May 2022 | 6 | 621 | (46) |
LME Zinc1 | June 2022 | 5 | 516 | (38) |
Low Sulphur Gasoil1 | June 2022 | 14 | 1,633 | 154 |
NY Harbor ULSD1 | May 2022 | 10 | 1,687 | 204 |
OMX Stockholm 30 Index | May 2022 | 211 | 4,419 | (117) |
Soybean1 | July 2022 | 11 | 927 | 12 |
Soybean Meal1 | July 2022 | 32 | 1,383 | (67) |
Soybean Oil1 | July 2022 | 7 | 354 | 35 |
Sugar #111 | June 2022 | 40 | 858 | (45) |
(3,276) |
Futures Contracts (continued) | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Short Futures Contracts | ||||
Cattle1 | May 2022 | (4) | (313) | 11 |
Cocoa1 | July 2022 | (56) | (1,438) | 34 |
Copper1 | July 2022 | (13) | (1,433) | 99 |
Corn1 | July 2022 | (38) | (1,546) | (64) |
DAX 30 Index | June 2022 | (12) | (4,459) | (49) |
E-Mini S&P 500 Index | June 2022 | (21) | (4,334) | 69 |
KC HRW Wheat1 | July 2022 | (15) | (829) | 53 |
KOSPI 200 Index | June 2022 | (63) | (4,459) | (15) |
Lean Hogs1 | June 2022 | (32) | (1,362) | 131 |
Live Cattle1 | June 2022 | (27) | (1,433) | 42 |
LME Aluminum1 | June 2022 | (11) | (837) | 57 |
LME Aluminum1 | May 2022 | (11) | (835) | 57 |
LME Copper1 | June 2022 | (2) | (488) | 26 |
LME Tin1 | May 2022 | (6) | (1,218) | 47 |
LME Tin1 | June 2022 | (3) | (607) | 41 |
LME Zinc1 | May 2022 | (6) | (621) | (59) |
MSCI Singapore Index | May 2022 | (211) | (4,788) | (93) |
S&P ASX 200 Index | June 2022 | (34) | (4,450) | 38 |
Topix Index | June 2022 | (30) | (4,399) | (207) |
218 | ||||
(3,058) |
1 | Security is owned by the Vanguard ASF Portfolio, which is a wholly owned subsidiary of the Alternative Strategies Fund. |
Forward Currency Contracts | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
Morgan Stanley Capital Services Inc. | 5/11/22 | BRL | 12,382 | USD | 2,608 | — | (112) |
Morgan Stanley Capital Services Inc. | 5/11/22 | CAD | 8,299 | USD | 6,642 | — | (182) |
Royal Bank of Canada | 5/11/22 | CAD | 70 | USD | 56 | — | (1) |
Bank of America, N.A. | 5/11/22 | CLP | 2,050,523 | USD | 2,605 | — | (206) |
Bank of America, N.A. | 5/11/22 | GBP | 4,877 | USD | 6,395 | — | (263) |
Royal Bank of Canada | 5/11/22 | GBP | 212 | USD | 278 | — | (11) |
Bank of America, N.A. | 5/11/22 | MXN | 51,963 | USD | 2,611 | — | (71) |
Bank of America, N.A. | 5/11/22 | NOK | 58,588 | USD | 6,693 | — | (447) |
Standard Chartered Bank | 5/11/22 | TRY | 38,221 | USD | 2,528 | 28 | — |
Standard Chartered Bank | 5/11/22 | USD | 6,497 | CHF | 6,003 | 323 | — |
Morgan Stanley Capital Services Inc. | 5/11/22 | USD | 176 | CHF | 163 | 9 | — |
State Street Bank & Trust Co. | 5/11/22 | USD | 6,444 | EUR | 5,826 | 296 | — |
Standard Chartered Bank | 5/11/22 | USD | 217 | EUR | 196 | 10 | — |
Bank of America, N.A. | 5/11/22 | USD | 6,635 | JPY | 813,299 | 366 | — |
Forward Currency Contracts (continued) | |||||||
Contract Settlement Date | Contract Amount (000) | Unrealized Appreciation ($000) | Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
Royal Bank of Canada | 5/11/22 | USD | 2,584 | KRW | 3,146,975 | 79 | — |
Standard Chartered Bank | 5/11/22 | USD | 9 | KRW | 11,294 | — | — |
Bank of America, N.A. | 5/11/22 | USD | 2,600 | SGD | 3,526 | 51 | — |
Standard Chartered Bank | 5/11/22 | USD | 2,593 | THB | 86,640 | 64 | — |
Royal Bank of Canada | 5/11/22 | USD | 2,563 | TWD | 73,378 | 73 | — |
Morgan Stanley Capital Services Inc. | 5/11/22 | USD | 45 | TWD | 1,280 | 1 | — |
1,300 | (1,293) |
BRL—Brazilian real. |
CAD—Canadian dollar. |
CHF—Swiss franc. |
CLP—Chilean peso. |
EUR—euro. |
GBP—British pound. |
JPY—Japanese yen. |
KRW—Korean won. |
MXN—Mexican peso. |
NOK—Norwegian krone. |
SGD—Singapore dollar. |
THB—Thai baht. |
TRY—Turkish lira. |
TWD—Taiwanese dollar. |
USD—U.S. dollar. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $27,297) | 32,488 |
Affiliated Issuers (Cost $18,659) | 18,661 |
Total Investments in Securities | 51,149 |
Investment in Vanguard | 6 |
Cash | 14,248 |
Cash Segregated for Short Positions | 47,578 |
Cash Collateral Pledged—Futures Contracts | 6,070 |
Cash Collateral Pledged—Forward Currency Contracts | 590 |
Receivables for Accrued Income | 152 |
Receivables for Capital Shares Issued | 173 |
Unrealized Appreciation—Forward Currency Contracts | 1,300 |
Other Assets | 2,933 |
Total Assets | 124,199 |
Liabilities | |
Securities Sold Short, at Value (Proceeds $11,623) | 8,365 |
Payables for Investment Securities Purchased | 728 |
Payables to Vanguard | 51 |
Variation Margin Payable—Futures Contracts | 2,897 |
Unrealized Depreciation—Forward Currency Contracts | 1,293 |
Accrued Dividend Expense on Securities Sold Short | 1 |
Total Liabilities | 13,335 |
Net Assets | 110,864 |
At April 30, 2022, net assets consisted of: | |
Paid-in Capital | 145,521 |
Total Distributable Earnings (Loss) | (34,657) |
Net Assets | 110,864 |
Net Assets | |
Applicable to 6,524,637 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 110,864 |
Net Asset Value Per Share | $16.99 |
Six Months Ended April 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 210 |
Interest2 | 27 |
Total Income | 237 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 54 |
Management and Administrative | 113 |
Marketing and Distribution | 8 |
Custodian Fees | 17 |
Shareholders’ Reports | 13 |
Trustees’ Fees and Expenses—Note B | 6 |
Dividend Expense on Securities Sold Short | 41 |
Borrowing Expense on Securities Sold Short | 187 |
Other Expenses | 9 |
Total Expenses | 448 |
Net Investment Income (Loss) | (211) |
Payment from Affiliate - Note B | 637 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Long Positions2 | 2,246 |
Investment Securities Sold—Short Positions | (666) |
Futures Contracts | 553 |
Forward Currency Contracts | 53 |
Foreign Currencies | 16 |
Realized Net Gain (Loss) | 2,202 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Long Positions2 | (3,589) |
Investment Securities—Short Positions | 5,377 |
Futures Contracts | (2,560) |
Forward Currency Contracts | 261 |
Foreign Currencies | (196) |
Change in Unrealized Appreciation (Depreciation) | (707) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,921 |
1 | Dividends are net of foreign withholding taxes of $5,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $13,000, ($1,000), $2,000, and ($4,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | (211) | (439) | |
Payment from Affiliate - Note B | 637 | — | |
Realized Net Gain (Loss) | 2,202 | 7,084 | |
Change in Unrealized Appreciation (Depreciation) | (707) | (8,835) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,921 | (2,190) | |
Distributions | |||
Total Distributions | (2,262) | (2,074) | |
Capital Share Transactions | |||
Issued | 9,474 | 31,827 | |
Issued in Lieu of Cash Distributions | 2,197 | 2,047 | |
Redeemed | (37,603) | (198,840) | |
Net Increase (Decrease) from Capital Share Transactions | (25,932) | (164,966) | |
Total Increase (Decrease) | (26,273) | (169,230) | |
Net Assets | |||
Beginning of Period | 137,137 | 306,367 | |
End of Period | 110,864 | 137,137 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2022 | Year Ended October 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $17.00 | $17.15 | $22.23 | $20.41 | $20.46 | $21.28 |
Investment Operations | ||||||
Net Investment Income (Loss)1 | (.028) | (.042) | .023 | .252 | .197 | .153 |
Payment from Affiliate | .086 | — | — | — | — | — |
Net Realized and Unrealized Gain (Loss) on Investments | .210 | .020 | (3.835) | 1.828 | (.143) | (.139) |
Total from Investment Operations | .268 | (.022) | (3.812) | 2.080 | .054 | .014 |
Distributions | ||||||
Dividends from Net Investment Income | (.278) | (.128) | (.385) | (.260) | (.104) | (.093) |
Distributions from Realized Capital Gains | — | — | (.883) | — | — | (.741) |
Total Distributions | (.278) | (.128) | (1.268) | (.260) | (.104) | (.834) |
Net Asset Value, End of Period | $16.99 | $17.00 | $17.15 | $22.23 | $20.41 | $20.46 |
Total Return2 | 1.61%3 | -0.12% | -18.17% | 10.30% | 0.27% | 0.11% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $111 | $137 | $306 | $297 | $320 | $292 |
Ratio of Total Expenses to Average Net Assets | ||||||
Based on Total Expenses4,5 | 0.72% | 1.28% | 0.78% | 0.79%6 | 0.66%6 | 0.79% |
Net of Dividend and Borrowing Expense on Securities Sold Short | 0.35% | 0.35% | 0.34% | 0.38%6 | 0.33%6 | 0.35% |
Ratio of Net Investment Income (Loss) to Average Net Assets | (0.33)% | (0.25)% | 0.12% | 1.18% | 0.93% | 0.75% |
Portfolio Turnover Rate | 47% | 166% | 173% | 157% | 131% | 125% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 | Payment received from an affiliate increased the fund's total return by 0.60%. See Note B in the Notes to Financial Statements. |
4 | Includes dividend expense on securities sold short of 0.07%, 0.37%, 0.44%, 0.41%, 0.33%, and 0.44%, respectively. |
5 | Includes borrowing expense on securities sold short of 0.30%, 0.56%, 0.00%, 0.00%, 0.00%, and 0.00%, respectively. |
6 | The ratio of total expenses to average net assets for the periods ended 2019 and 2018, net of reduction from custody fee offset arrangement for total expenses and net of dividend and borrowing expense on securities sold short, was 0.74% and 0.33%, and 0.65% and 0.32%, respectively. |
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. |
Assets Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Liabilities Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Net Amount Receivable (Payable) ($000) | Amounts Not Offset in the Consolidated Statement of Assets and Liabilities | Net Exposure3 (Not Less Than $0) ($000) | ||
Collateral Pledged2 ($000) | Collateral Received2 ($000) | |||||
Derivatives Subject to Offsetting Arrangements, by Counterparty | ||||||
Bank of America, N.A. | 417 | (987) | (570) | 540 | — | — |
Morgan Stanley Capital Services Inc. | 10 | (294) | (284) | 50 | — | — |
Royal Bank of Canada | 152 | (12) | 140 | — | — | 140 |
Standard Chartered Bank | 425 | — | 425 | — | — | 425 |
State Street Bank & Trust Co. | 296 | — | 296 | — | — | 296 |
Exchange-Traded Futures Contracts | — | (2,897) | (2,897) | 6,070 | — | — |
Total | 1,300 | (4,190) | (2,890) | 6,660 | — | 861 |
B. | 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. |
C. | 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 32,488 | — | — | 32,488 |
Temporary Cash Investments | 18,661 | — | — | 18,661 |
Total | 51,149 | — | — | 51,149 |
Liabilities | ||||
Common Stocks | 8,365 | — | — | 8,365 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 1,445 | — | — | 1,445 |
Forward Currency Contracts | — | 1,300 | — | 1,300 |
Total | 1,445 | 1,300 | — | 2,745 |
Liabilities | ||||
Futures Contracts1 | 4,503 | — | — | 4,503 |
Forward Currency Contracts | — | 1,293 | — | 1,293 |
Total | 4,503 | 1,293 | — | 5,796 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities. |
D. | At April 30, 2022, the fair values of derivatives were reflected in the Consolidated Schedule of Investments and Consolidated Statement of Assets and Liabilities as follows: |
Consolidated Statement of Assets and Liabilities Caption | Equity Contracts ($000) | Commodity Contracts ($000) | Interest Rate Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Appreciation—Futures Contracts1 | 406 | 1,039 | — | — | 1,445 |
Unrealized Appreciation—Forward Currency Contracts | — | — | — | 1,300 | 1,300 |
Total Assets | 406 | 1,039 | — | 1,300 | 2,745 |
Unrealized Depreciation—Futures Contracts1 | 533 | 580 | 3,390 | — | 4,503 |
Unrealized Depreciation—Forward Currency Contracts | — | — | — | 1,293 | 1,293 |
Total Liabilities | 533 | 580 | 3,390 | 1,293 | 5,796 |
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 Consolidated Statement of Assets and Liabilities. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Commodity Contracts ($000) | Interest Rate Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | 4,365 | 150 | (3,962) | — | 553 |
Forward Currency Contracts | — | — | — | 53 | 53 |
Realized Net Gain (Loss) on Derivatives | 4,365 | 150 | (3,962) | 53 | 606 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||||
Futures Contracts | (894) | 491 | (2,157) | — | (2,560) |
Forward Currency Contracts | — | — | — | 261 | 261 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | (894) | 491 | (2,157) | 261 | (2,299) |
E. | As of April 30, 2022, 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 | 46,197 |
Gross Unrealized Appreciation | 12,692 |
Gross Unrealized Depreciation | (7,533) |
Net Unrealized Appreciation (Depreciation) | 5,159 |
F. | During the six months ended April 30, 2022, the fund purchased $20,697,000 of investment securities and sold $48,460,000 of investment securities, other than temporary cash investments. The proceeds of short sales and the cost of purchases to cover short sales were $6,320,000 and $6,756,000, respectively. |
G. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 560 | 1,865 | |
Issued in Lieu of Cash Distributions | 132 | 122 | |
Redeemed | (2,233) | (11,786) | |
Net Increase (Decrease) in Shares Outstanding | (1,541) | (9,799) |
H. | Management has determined that no material events or transactions occurred subsequent to April 30, 2022, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 17 |
Liquidity Risk Management | 19 |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended April 30, 2022 | |||
Commodity Strategy Fund | Beginning Account Value 10/31/2021 | Ending Account Value 4/30/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,265.70 | $1.18 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.75 | 1.05 |
U.S. Government Securities | 100.0% |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (70.7%) | ||||||
U.S. Government Securities (70.7%) | ||||||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/22 | 99,299 | 101,053 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 1/15/23 | 121,591 | 124,972 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 4/15/23 | 103,781 | 107,235 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/23 | 116,734 | 121,184 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/24 | 111,143 | 115,901 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 4/15/24 | 62,402 | 65,045 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/24 | 100,908 | 104,944 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/24 | 90,004 | 93,294 | ||
United States Treasury Inflation Indexed Bonds | 0.250% | 1/15/25 | 92,271 | 95,818 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/25 | 62,878 | 68,989 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/25 | 73,732 | 76,197 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/25 | 101,179 | 105,748 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/25 | 89,715 | 92,799 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/26 | 85,202 | 89,556 | ||
United States Treasury Inflation Indexed Bonds | 2.000% | 1/15/26 | 40,596 | 44,769 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/26 | 69,321 | 71,369 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/26 | 84,927 | 87,767 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/26 | 95,897 | 98,849 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 1/15/27 | 79,078 | 82,204 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/27 | 39,253 | 44,607 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/27 | 51,604 | 52,967 | ||
Total U.S. Government and Agency Obligations (Cost $1,866,386) | 1,845,267 | |||||
Shares | ||||||
Temporary Cash Investments (31.1%) | ||||||
Money Market Fund (14.0%) | ||||||
1 | Vanguard Market Liquidity Fund | 0.409% | 3,652,555 | 365,219 | ||
Maturity Date | Face Amount ($000) | |||||
U.S. Government and Agency Obligations (17.1%) | ||||||
2 | United States Treasury Bill | 0.279% | 5/19/22 | 31,950 | 31,947 | |
2 | United States Treasury Bill | 0.305% | 5/26/22 | 40,200 | 40,191 | |
2 | United States Treasury Bill | 0.412% | 6/9/22 | 56,400 | 56,373 |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
2 | United States Treasury Bill | 0.815% | 7/28/22 | 62,800 | 62,674 | |
2 | United States Treasury Bill | 0.890% | 9/8/22 | 41,000 | 40,844 | |
2 | United States Treasury Bill | 0.916% | 9/15/22 | 41,000 | 40,829 | |
2 | United States Treasury Bill | 0.957% | 9/22/22 | 41,000 | 40,818 | |
2 | United States Treasury Bill | 1.116% | 10/6/22 | 17,000 | 16,913 | |
2 | United States Treasury Bill | 1.212% | 10/13/22 | 54,400 | 54,085 | |
2 | United States Treasury Bill | 1.266% | 10/20/22 | 61,850 | 61,474 | |
446,148 | ||||||
Total Temporary Cash Investments (Cost $811,459) | 811,367 | |||||
Total Investments (101.8%) (Cost $2,677,845) | 2,656,634 | |||||
Other Assets and Liabilities—Net (-1.8%) | (46,889) | |||||
Net Assets (100%) | 2,609,745 | |||||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
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. |
2 | Security is owned by the Vanguard CSF Portfolio, which is a wholly owned subsidiary of the Commodity Strategy Fund. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Bloomberg Commodity Index2 | 5/10/22 | MLI | 450,000 | (0.060) | 12,642 | — |
Bloomberg Commodity Index2 | 5/25/22 | BARC | 50,000 | (0.100) | 1,068 | — |
Bloomberg Commodity Index 2 Month Forward2 | 5/25/22 | BARC | 235,000 | (0.110) | 3,713 | — |
Bloomberg Commodity Index 3 Month Forward2 | 5/25/22 | GSI | 60,000 | (0.120) | 719 | (38) |
BofA Merrill Lynch Commodity MLBXAKSV Excess Return Strategy2,3 | 5/10/22 | MLI | 180,000 | (0.170) | 3,478 | — |
BofA Merrill Lynch Commodity MLBXSTGV Excess Return Strategy2,3 | 5/10/22 | MLI | 420,000 | (0.110) | 6,927 | — |
BofA Merrill Lynch Commodity MLCILP3E Excess Return Strategy2,3 | 5/10/22 | MLI | 100,000 | (0.140) | 667 | (1,236) |
CIBC Commodity CIBZC51EC Excess Return Strategy2,3 | 5/10/22 | CIBC | 50 | (0.160) | — | (1) |
Credit Suisse Custom 34 - 01E Forward Excess Return2,3 | 5/25/22 | CSFBI | 630,000 | (0.160) | 10,546 | — |
Over-the-Counter Total Return Swaps (continued) | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Goldman Sachs Commodity i-Select Strategy 11292,3 | 5/25/22 | GSI | 410,000 | (0.120) | 6,618 | — |
Modified Strategy DBS18 on the Bloomberg Commodity Index2,3 | 5/25/22 | GSI | 40,000 | (0.120) | 735 | — |
47,113 | (1,275) |
1 | Fixed interest payment received/paid monthly. |
2 | Security is owned by the subsidiary. |
3 | Information on the components of the reference entity is available on www.vanguard.com. |
1M—1-month. | |
BARC—Barclays Bank plc. | |
CIBC—Canadian Imperial Bank of Commerce. | |
CSFBI—Credit Suisse. | |
GSI—Goldman Sachs International. | |
MLI—Merrill Lynch International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $2,312,643) | 2,291,415 |
Affiliated Issuers (Cost $365,202) | 365,219 |
Total Investments in Securities | 2,656,634 |
Investment in Vanguard | 79 |
Cash | 2,523 |
Receivables for Accrued Income | 2,017 |
Receivables for Capital Shares Issued | 6,862 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 47,113 |
Total Assets | 2,715,228 |
Liabilities | |
Payables for Investment Securities Purchased | 101,523 |
Payables for Capital Shares Redeemed | 2,447 |
Payables to Vanguard | 238 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 1,275 |
Total Liabilities | 105,483 |
Net Assets | 2,609,745 |
At April 30, 2022, net assets consisted of: | |
Paid-in Capital | 2,153,086 |
Total Distributable Earnings (Loss) | 456,659 |
Net Assets | 2,609,745 |
Net Assets | |
Applicable to 73,772,400 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,609,745 |
Net Asset Value Per Share | $35.38 |
Six Months Ended April 30, 2022 | |
($000) | |
Investment Income | |
Income | |
Interest1 | 34,840 |
Total Income | 34,840 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 60 |
Management and Administrative | 1,804 |
Marketing and Distribution | 52 |
Custodian Fees | 7 |
Shareholders’ Reports | 22 |
Trustees’ Fees and Expenses—Note B | 7 |
Other Expenses | 8 |
Total Expenses | 1,960 |
Net Investment Income | 32,880 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | (612) |
Swap Contracts | 388,556 |
Realized Net Gain (Loss) | 387,944 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (36,188) |
Swap Contracts | 65,655 |
Change in Unrealized Appreciation (Depreciation) | 29,467 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 450,291 |
1 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $226,000, ($15,000), $4,000, and $7,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 32,880 | 28,926 | |
Realized Net Gain (Loss) | 387,944 | 364,225 | |
Change in Unrealized Appreciation (Depreciation) | 29,467 | (672) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 450,291 | 392,479 | |
Distributions | |||
Total Distributions | (390,042) | (2,526) | |
Capital Share Transactions | |||
Issued | 1,196,733 | 1,233,852 | |
Issued in Lieu of Cash Distributions | 271,967 | 2,099 | |
Redeemed | (604,730) | (313,092) | |
Net Increase (Decrease) from Capital Share Transactions | 863,970 | 922,859 | |
Total Increase (Decrease) | 924,219 | 1,312,812 | |
Net Assets | |||
Beginning of Period | 1,685,526 | 372,714 | |
End of Period | 2,609,745 | 1,685,526 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2022 | Year Ended October 31, | June 25, 20191 to October 31, 2019 | |
2021 | 2020 | |||
Net Asset Value, Beginning of Period | $36.85 | $24.32 | $24.83 | $25.00 |
Investment Operations | ||||
Net Investment Income2 | .560 | .890 | .265 | .143 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.355 | 11.774 | (.620) | (.313) |
Total from Investment Operations | 6.915 | 12.664 | (.355) | (.170) |
Distributions | ||||
Dividends from Net Investment Income | (8.385) | (.134) | (.155) | — |
Distributions from Realized Capital Gains | — | — | — | — |
Total Distributions | (8.385) | (.134) | (.155) | — |
Net Asset Value, End of Period | $35.38 | $36.85 | $24.32 | $24.83 |
Total Return3 | 26.57% | 52.30% | -1.45% | -0.68% |
Ratios/Supplemental Data | ||||
Net Assets, End of Period (Millions) | $2,610 | $1,686 | $373 | $207 |
Ratio of Total Expenses to Average Net Assets | 0.21% | 0.20% | 0.20% | 0.20%4 |
Ratio of Net Investment Income to Average Net Assets | 3.44% | 2.79% | 1.15% | 1.65%4 |
Portfolio Turnover Rate | 14% | 15% | 38% | 7% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Inception. |
2 | Calculated based on average shares outstanding. |
3 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
4 | Annualized. |
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. |
Assets Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Liabilities Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Net Amount Receivable (Payable) ($000) | Amounts Not Offset in the Consolidated Statement of Assets and Liabilities | Net Exposure3 (Not Less Than $0) ($000) | ||
Collateral Pledged2 ($000) | Collateral Received2 ($000) | |||||
Derivatives Subject to Offsetting Arrangements, by Counterparty | ||||||
Barclays Bank plc | 4,781 | — | 4,781 | — | 4,384 | 397 |
Canadian Imperial Bank of Commerce | — | (1) | (1) | — | — | — |
Credit Suisse | 10,546 | — | 10,546 | — | 9,840 | 706 |
Goldman Sachs International | 8,072 | (38) | 8,034 | — | 7,659 | 375 |
Merrill Lynch International | 23,714 | (1,236) | 22,478 | — | 20,678 | 1,800 |
Total | 47,113 | (1,275) | 45,838 | — | 42,561 | 3,278 |
B. | 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. |
C. | 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
U.S. Government and Agency Obligations | — | 1,845,267 | — | 1,845,267 |
Temporary Cash Investments | 365,219 | 446,148 | — | 811,367 |
Total | 365,219 | 2,291,415 | — | 2,656,634 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 47,113 | — | 47,113 |
Liabilities | ||||
Swap Contracts | — | 1,275 | — | 1,275 |
D. | As of April 30, 2022, 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 | 2,678,240 |
Gross Unrealized Appreciation | 2,986 |
Gross Unrealized Depreciation | (24,592) |
Net Unrealized Appreciation (Depreciation) | (21,606) |
E. | During the six months ended April 30, 2022, the fund purchased $842,268,000 of investment securities and sold $175,918,000 of investment securities, other than temporary cash investments. |
F. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2022 | Year Ended October 31, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 36,853 | 40,091 | |
Issued in Lieu of Cash Distributions | 10,325 | 81 | |
Redeemed | (19,150) | (9,752) | |
Net Increase (Decrease) in Shares Outstanding | 28,028 | 30,420 |
G. | Management has determined that no events or transactions occurred subsequent to April 30, 2022, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in the Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | 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 TRUSTEES’ EQUITY fund | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 17, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD trustees’ equity fund | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 17, 2022
VANGUARD trustees’ equity fund | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: June 17, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on November 29, 2021 (see File Number 33-64845), a Power of Attorney filed on October 12, 2021 (see File Number 33-23444), and a Power of Attorney filed on August 26, 2021 (see file Number 811-02652), Incorporated by Reference.