See the inside front cover for important information about accessto your fund’s annual and semiannual shareholder reports.
Annual Report | December 31, 2018
Vanguard 500 Index Fund
Contents
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promisesor advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of thisreport. Of course, the risks of investing in your fund are spelled out in the prospectus.
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by theSecurities and Exchange Commission, paper copies of your fund’s annual andsemiannual shareholder reports will no longer be sent to you by mail, unless youspecifically request them. Instead, you will be notified by mail each time a reportis posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will notbe affected by this change and do not need to take any action. You may elect toreceive shareholder reports and other communications from the fund electronicallyby contacting your financial intermediary (such as a broker-dealer or bank) or, if youinvest directly with the fund, by calling Vanguard at one of the phone numbers onthe back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports freeof charge. If you invest through a financial intermediary, you can contact theintermediary to request that you continue to receive paper copies. If you investdirectly with the fund, you can call Vanguard at one of the phone numbers on theback cover of this report or log on to vanguard.com. Your election to receive papercopies will apply to all the funds you hold through an intermediary or directly withVanguard.
A Note From Our CEO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 2
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . . 3
Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Dear Shareholder,
Over the years, I’ve found that prudent
investors exhibit a common trait:
discipline. No matter how the markets
move or what new investing fad hits the
headlines, those who stay focused on
their goals and tune out the noise are
set up for long-term success.
The prime gateway to investing is saving,
and you don’t usually become a saver
without a healthy dose of discipline.
Savers make the decision to sock away
part of their income, which means
spending less and delaying gratification,
no matter how difficult that may be.
Of course, disciplined investing extends
beyond diligent saving. The financial
markets, in the short term especially,
are unpredictable; I have yet to meet the
investor who can time them perfectly.
It takes discipline to resist the urge to
go all-in when markets are frothy or to
retreat when things look bleak.
Staying put with your investments is one
strategy for handling volatility. Another,
rebalancing, requires even more discipline
because it means steering your money
away from strong performers and toward
poorer performers.
Patience—a form of discipline—is also
the friend of long-term investors. Higher
returns are the potential reward for
weathering the market’s turbulence
and uncertainty.
It’s important to be prepared for that
turbulence, whenever it appears. Don’t
panic. Don’t chase returns or look for
answers outside the asset classes you
trust. And be sure to rebalance periodically,
even when there’s turmoil.
Whether you’re a master of self-control,
get a boost from technology, or work with
a professional advisor, know that discipline
is necessary to get the most out of your
investment portfolio. And know that
Vanguard is with you for the entire ride.
Thank you for your continued loyalty.
Sincerely,
Mortimer J. Buckley
Chairman and Chief Executive Officer
January 17, 2019
A Note From Our CEO
Tim BuckleyChairman and Chief Executive Officer
1
• For the 12 months ended December 31, 2018, Vanguard 500 Index Fund returned
–4.52% for Investor Shares and –4.43% for Admiral Shares. The fund, which provides
exposure to the stocks of the largest U.S. companies, closely tracked its target index,
the Standard & Poor’s 500 Index, which returned –4.38%.
• The broad U.S. stock market returned about –5%, its first negative calendar-year result
since 2008. Growth stocks outperformed value; large-capitalization stocks bested small-
and mid-caps.
• Among sectors, financials and industrials were the biggest detractors. Health care and
information technology contributed most.
• For the ten years ended December 31, 2018, the 500 Index Fund posted an average
annual return of about 13%, in line with its target index.
• In November, Vanguard lowered the investment minimum for your fund’s Admiral
Shares from $10,000 to $3,000.
Your Fund’s Performance at a Glance
Market Barometer Average Annual Total Returns
Periods Ended December 31, 2018
One Year Three Years Five Years
Stocks
Russell 1000 Index (Large-caps) -4.78% 9.09% 8.21%
Russell 2000 Index (Small-caps) -11.01 7.36 4.41
Russell 3000 Index (Broad U.S. market) -5.24 8.97 7.91
FTSE All-World ex US Index (International) -14.13 4.58 1.05
Bonds
Bloomberg Barclays U.S. Aggregate Bond Index
(Broad taxable market) 0.01% 2.06% 2.52%
Bloomberg Barclays Municipal Bond Index
(Broad tax-exempt market) 1.28 2.30 3.82
FTSE Three-Month U.S. Treasury Bill Index 1.86 0.98 0.59
CPI
Consumer Price Index 1.91% 2.03% 1.51%
2
About Your Fund’s Expenses
3
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• 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.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During 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.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and sellingsecurities. Further, the expenses do not include any purchase, redemption, or account servicefees described in the fund prospectus. If such fees were applied to your account, your costswould be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs mayhave been higher or lower, depending on the amount of your investment and the timing of anypurchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in theFinancial Statements section of this report. For additional information on operating expenses andother shareholder costs, please refer to your fund’s current prospectus.
4
Six Months Ended December 31, 2018
500 Index Fund
BeginningAccount Value
6/30/2018
EndingAccount Value
12/31/2018
ExpensesPaid During
Period
Based on Actual Fund Return
Investor Shares $1,000.00 $930.77 $0.68
ETF Shares 1,000.00 931.45 0.10
Admiral™ Shares 1,000.00 931.25 0.19
Institutional Select Shares 1,000.00 931.42 0.05
Based on Hypothetical 5% Yearly Return
Investor Shares $1,000.00 $1,024.50 $0.71
ETF Shares 1,000.00 1,025.10 0.10
Admiral Shares 1,000.00 1,025.00 0.20
Institutional Select Shares 1,000.00 1,025.16 0.05
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios forthat period are 0.14% for Investor Shares, 0.02% for ETF Shares, 0.04% for Admiral Shares, and 0.01% for Institutional Select Shares. Thedollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over theperiod, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent12-month period (184/365).
1234567
1234567
33,870
$43,000
5,000
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
See Financial Highlights for dividend and capital gains information.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
500 Index Fund
5
Cumulative Performance: December 31, 2008, Through December 31, 2018Initial Investment of $10,000
Average Annual Total ReturnsPeriods Ended December 31, 2018
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
500 Index Fund Investor Shares -4.52% 8.34% 12.97% $33,870
- - - - - - - - - - S&P 500 Index -4.38 8.49 13.12 34,304
Dow Jones U.S. Total Stock MarketFloat Adjusted Index -5.30 7.86 13.22 34,625
OneYear
FiveYears
SinceInception
(9/7/2010)
Final Valueof a $10,000Investment
500 Index FundETF Shares Net Asset Value -4.42% 8.45% 12.81% $27,248
S&P 500 Index -4.38 8.49 12.85 27,325
Dow Jones U.S. Total Stock Market FloatAdjusted Index -5.30 7.86 12.63 26,886
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
500 Index Fund
6
Average Annual Total ReturnsPeriods Ended December 31, 2018
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
500 Index Fund Admiral Shares -4.43% 8.46% 13.10% $34,247
S&P 500 Index -4.38 8.49 13.12 34,304
Dow Jones U.S. Total Stock Market Float Adjusted Index -5.30 7.86 13.22 34,625
OneYear
SinceInception
(6/24/2016)
Final Valueof a $5,000,000,000
Investment
500 Index Fund Institutional Select Shares -4.40% 10.78% $6,471,250,500
S&P 500 Index -4.38 10.79 6,471,833,715
Dow Jones U.S. Total Stock Market FloatAdjusted Index -5.30 10.46 6,423,697,561
"Since Inception" performance is calculated from the Institutional Select Shares’ inception date for both the fund and its comparative standards.
Cumulative Returns of ETF Shares: September 7, 2010, Through December 31, 2018
OneYear
FiveYears
SinceInception
(9/7/2010)
500 Index Fund ETF Shares Market Price -4.47% 50.02% 172.43%
500 Index Fund ETF Shares Net Asset Value -4.42 50.05 172.48
S&P 500 Index -4.38 50.33 173.25
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York StockExchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information abouthow the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select thePrice and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' marketprice was above or below the NAV.
Sector DiversificationAs of December 31, 2018
500 Index Fund
7
Communication Services 10.1%
Consumer Discretionary 9.9
Consumer Staples 7.4
Energy 5.3
Financials 13.4
Health Care 15.6
Industrials 9.2
Information Technology 20.1
Materials 2.7
Real Estate 3.0
Utilities 3.3
The table reflects the fund’s equity exposure, based on itsinvestments in stocks and stock index futures. Any holdings inshort-term reserves are excluded. Sector categories are based onthe Global Industry Classification Standard (“GICS”), except for the“Other” category (if applicable), which includes securities thathave not been provided a GICS classification as of the effectivereporting period.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service markof MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for useby Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classificationmakes any express or implied warranties or representations with respect to such standard or classification (or the resultsto be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy,completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification.Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved inmaking or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive,consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Common Stocks (99.5%)1
Communication Services (10.1%) * Alphabet Inc. Class C 5,829,972 6,037,577* Facebook Inc. Class A 45,525,094 5,967,885* Alphabet Inc. Class A 5,665,331 5,920,044
Verizon
Communications Inc. 78,298,803 4,401,959
AT&T Inc. 137,912,898 3,936,034
Walt Disney Co. 28,209,421 3,093,163
Comcast Corp. Class A 86,031,121 2,929,360* Netflix Inc. 8,263,443 2,211,793
Twenty-First Century
Fox Inc. Class A 20,028,496 963,771* Charter
Communications Inc.
Class A 3,340,064 951,818
Activision Blizzard Inc. 14,459,184 673,364* Electronic Arts Inc. 5,725,288 451,782
Twenty-First Century
Fox Inc. 9,230,177 441,018* Twitter Inc. 13,704,746 393,874
Omnicom Group Inc. 4,248,007 311,124
CBS Corp. Class B 6,379,638 278,918
CenturyLink Inc. 18,027,593 273,118* Take-Two Interactive
Software Inc. 2,159,061 222,254
Viacom Inc. Class B 6,692,871 172,007* Discovery
Communications Inc. 6,819,337 157,390
Interpublic Group of
Cos. Inc. 7,277,853 150,142
News Corp. Class A 9,690,119 109,983* DISH Network Corp.
Class A 4,340,468 108,382* TripAdvisor Inc. 1,938,827 104,580*,^ Discovery
Communications Inc.
Class A 2,982,141 73,778
News Corp. Class B 6,219 72
40,335,190
Consumer Discretionary (9.9%) * Amazon.com Inc. 7,783,149 11,690,056
Home Depot Inc. 21,403,764 3,677,595
McDonald’s Corp. 14,608,127 2,593,965
NIKE Inc. Class B 24,125,282 1,788,648
Starbucks Corp. 23,508,155 1,513,925* Booking Holdings Inc. 877,958 1,512,212
Lowe’s Cos. Inc. 15,215,641 1,405,317
TJX Cos. Inc. 23,450,854 1,049,191
General Motors Co. 24,876,139 832,107
Target Corp. 9,888,774 653,549
Ross Stores Inc. 7,074,761 588,620
Marriott International
Inc. Class A 5,364,662 582,388
Ford Motor Co. 74,038,120 566,392
Yum! Brands Inc. 5,917,251 543,914
Dollar General Corp. 4,981,374 538,387* O’Reilly Automotive Inc. 1,517,671 522,580* eBay Inc. 17,150,081 481,403
VF Corp. 6,166,167 439,894* Dollar Tree Inc. 4,509,590 407,306
Hilton Worldwide
Holdings Inc. 5,619,315 403,467* AutoZone Inc. 477,831 400,585
Carnival Corp. 7,588,411 374,109
Royal Caribbean
Cruises Ltd. 3,248,096 317,631
Aptiv plc 4,993,164 307,429
Genuine Parts Co. 2,782,312 267,158* Ulta Beauty Inc. 1,068,392 261,585
Expedia Group Inc. 2,246,142 253,028
Best Buy Co. Inc. 4,439,195 235,100
Darden Restaurants Inc. 2,353,060 234,977
MGM Resorts
International 9,496,286 230,380
DR Horton Inc. 6,492,484 225,030
Advance Auto Parts Inc. 1,382,224 217,645
Lennar Corp. Class A 5,483,844 214,692
Kohl’s Corp. 3,131,552 207,747* CarMax Inc. 3,311,320 207,719
Financial Statements
Statement of Net AssetsAs of December 31, 2018
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at
the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual
and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with
the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms
N-Q on the SEC’s website at sec.gov.
500 Index Fund
8
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* Chipotle Mexican Grill
Inc. Class A 463,587 200,172
Tractor Supply Co. 2,311,699 192,888
Tapestry Inc. 5,496,446 185,505
Wynn Resorts Ltd. 1,856,047 183,582
Hasbro Inc. 2,203,874 179,065* Norwegian Cruise Line
Holdings Ltd. 4,165,404 176,571
Macy’s Inc. 5,822,145 173,383
Tiffany & Co. 2,056,582 165,575
Newell Brands Inc. 8,132,211 151,178
Garmin Ltd. 2,288,155 144,886* LKQ Corp. 6,025,277 142,980* Mohawk Industries Inc. 1,195,481 139,823
BorgWarner Inc. 3,943,926 137,012
PVH Corp. 1,433,903 133,281
Whirlpool Corp. 1,208,525 129,155
PulteGroup Inc. 4,892,310 127,151
Foot Locker Inc. 2,175,981 115,762
L Brands Inc. 4,324,237 111,003* Michael Kors Holdings
Ltd. 2,844,728 107,872
Ralph Lauren Corp.
Class A 1,032,984 106,873
Harley-Davidson Inc. 3,083,735 105,217
Gap Inc. 4,045,102 104,202
Nordstrom Inc. 2,154,400 100,417
H&R Block Inc. 3,891,806 98,735
Goodyear Tire & Rubber
Co. 4,412,322 90,055
Leggett & Platt Inc. 2,469,041 88,490
Hanesbrands Inc. 6,830,936 85,592*,^ Mattel Inc. 6,535,351 65,288*,^ Under Armour Inc.
Class A 3,552,722 62,777*,^ Under Armour Inc. 3,642,688 58,902
Lennar Corp. Class B 76,975 2,412
Wyndham Hotels &
Resorts Inc. 216 10
39,611,545
Consumer Staples (7.4%)
Procter & Gamble Co. 47,210,675 4,339,605
Coca-Cola Co. 72,594,382 3,437,344
PepsiCo Inc. 26,748,745 2,955,201
Walmart Inc. 26,976,018 2,512,816
Philip Morris
International Inc. 29,457,223 1,966,564
Altria Group Inc. 35,606,812 1,758,620
Costco Wholesale Corp. 8,303,690 1,691,545
Mondelez International
Inc. Class A 27,550,051 1,102,829
Walgreens Boots
Alliance Inc. 15,233,759 1,040,923
Colgate-Palmolive Co. 16,435,661 978,251
Kimberly-Clark Corp. 6,562,385 747,718
Sysco Corp. 9,060,573 567,735
Estee Lauder Cos. Inc.
Class A 4,166,605 542,075
Kraft Heinz Co. 11,783,458 507,160
Constellation Brands
Inc. Class A 3,148,094 506,276
General Mills Inc. 11,297,934 439,942
Archer-Daniels-Midland
Co. 10,623,847 435,259
Kroger Co. 15,121,904 415,852
Clorox Co. 2,419,216 372,898* Monster Beverage Corp. 7,544,980 371,364
McCormick & Co. Inc. 2,308,071 321,376
Church & Dwight Co.
Inc. 4,667,283 306,921
Tyson Foods Inc.
Class A 5,593,626 298,700
Hershey Co. 2,658,362 284,923
Kellogg Co. 4,802,235 273,775^ Hormel Foods Corp. 5,163,036 220,358
Lamb Weston Holdings
Inc. 2,773,254 204,001
JM Smucker Co. 2,154,136 201,390
Molson Coors Brewing
Co. Class B 3,546,671 199,181
Conagra Brands Inc. 9,208,854 196,701
Brown-Forman Corp.
Class B 3,149,087 149,834*,^ Campbell Soup Co. 3,647,856 120,343
Coty Inc. Class A 8,538,203 56,011
29,523,491
Energy (5.3%)
Exxon Mobil Corp. 80,227,601 5,470,720
Chevron Corp. 36,207,844 3,939,051
ConocoPhillips 21,814,925 1,360,161
EOG Resources Inc. 10,988,511 958,308
Schlumberger Ltd. 26,240,368 946,753
Occidental Petroleum
Corp. 14,307,129 878,172
Marathon Petroleum
Corp. 13,091,083 772,505
Phillips 66 8,038,870 692,549
Valero Energy Corp. 8,039,814 602,745
Kinder Morgan Inc. 35,961,578 553,089
Williams Cos. Inc. 22,937,434 505,770
Halliburton Co. 16,601,107 441,257
Pioneer Natural
Resources Co. 3,230,016 424,812
ONEOK Inc. 7,795,538 420,569
Anadarko Petroleum
Corp. 9,555,625 418,919* Concho Resources Inc. 3,794,822 390,070
Diamondback Energy
Inc. 2,923,951 271,050
Marathon Oil Corp. 15,762,200 226,030
9
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Baker Hughes a GE
Co. Class A 9,735,695 209,317
Devon Energy Corp. 8,878,674 200,125
Hess Corp. 4,719,423 191,137
Apache Corp. 7,197,985 188,947
National Oilwell Varco
Inc. 7,259,501 186,569
Cabot Oil & Gas Corp. 8,164,170 182,469
Noble Energy Inc. 9,084,927 170,433
TechnipFMC plc 8,068,418 157,980
HollyFrontier Corp. 3,018,880 154,325
Cimarex Energy Co. 1,810,628 111,625
Helmerich & Payne Inc. 2,064,754 98,984* Newfield Exploration
Co. 3,793,561 55,614
21,180,055
Financials (13.3%) * Berkshire Hathaway
Inc. Class B 35,620,768 7,273,048
JPMorgan Chase & Co. 63,012,774 6,151,307
Bank of America Corp. 172,949,801 4,261,483
Wells Fargo & Co. 80,278,244 3,699,222
Citigroup Inc. 46,275,685 2,409,112
US Bancorp 28,785,034 1,315,476
CME Group Inc. 6,779,749 1,275,406
American Express Co. 13,273,589 1,265,239
Chubb Ltd. 8,732,407 1,128,052
Goldman Sachs Group
Inc. 6,555,332 1,095,068
PNC Financial Services
Group Inc. 8,743,198 1,022,167
Morgan Stanley 24,773,515 982,270
Charles Schwab Corp. 22,775,616 945,871
BlackRock Inc. 2,301,255 903,979
Intercontinental
Exchange Inc. 10,793,314 813,060
Bank of New York
Mellon Corp. 17,238,503 811,416
S&P Global Inc. 4,754,508 807,981
MetLife Inc. 18,700,775 767,854
Marsh & McLennan
Cos. Inc. 9,545,045 761,217
Capital One Financial
Corp. 8,975,495 678,458
Progressive Corp. 11,048,936 666,582
Aon plc 4,563,513 663,352
American International
Group Inc. 16,763,427 660,647
Aflac Inc. 14,425,060 657,206
Prudential Financial Inc. 7,826,355 638,239
BB&T Corp. 14,601,642 632,543
Travelers Cos. Inc. 5,019,120 601,040
Allstate Corp. 6,527,029 539,328
State Street Corp. 7,191,607 453,575
Moody’s Corp. 3,159,022 442,390
SunTrust Banks Inc. 8,512,790 429,385
T. Rowe Price Group Inc. 4,560,379 421,014
M&T Bank Corp. 2,659,308 380,627
Discover Financial
Services 6,367,349 375,546
Willis Towers Watson
plc 2,462,788 373,999
Northern Trust Corp. 4,196,374 350,775
Hartford Financial
Services Group Inc. 6,800,110 302,265
Synchrony Financial 12,534,629 294,062
Fifth Third Bancorp 12,429,791 292,473
KeyCorp 19,611,814 289,863
Ameriprise Financial Inc. 2,641,767 275,721
Citizens Financial Group
Inc. 8,871,096 263,738
Regions Financial Corp. 19,601,153 262,264
Arthur J Gallagher & Co. 3,478,024 256,330* Berkshire Hathaway Inc.
Class A 829 253,674
MSCI Inc. Class A 1,669,070 246,071
Huntington Bancshares
Inc. 20,126,960 239,913
Loews Corp. 5,240,114 238,530
Cincinnati Financial
Corp. 2,866,225 221,903
Principal Financial
Group Inc. 4,989,511 220,387* First Republic Bank 2,493,174 216,657
E*TRADE Financial
Corp. 4,814,558 211,263
Comerica Inc. 3,066,358 210,628
Cboe Global Markets Inc. 2,127,539 208,137
Lincoln National Corp. 4,051,149 207,865* SVB Financial Group 1,009,726 191,767
Raymond James
Financial Inc. 2,441,987 181,708
Nasdaq Inc. 2,173,545 177,296
Everest Re Group Ltd. 770,747 167,838
Franklin Resources Inc. 5,635,744 167,156
Zions Bancorp NA 3,639,463 148,272
Torchmark Corp. 1,943,232 144,829
Invesco Ltd. 7,789,213 130,391
Unum Group 4,142,041 121,693
People’s United
Financial Inc. 7,146,950 103,131
Affiliated Managers
Group Inc. 997,564 97,203
Jefferies Financial
Group Inc. 5,322,804 92,404
Assurant Inc. 987,217 88,297* Brighthouse Financial
Inc. 2,246,095 68,461
53,246,124
10
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Health Care (15.5%)
Johnson & Johnson 50,821,665 6,558,536
Pfizer Inc. 109,536,080 4,781,250
UnitedHealth Group
Inc. 18,229,528 4,541,340
Merck & Co. Inc. 49,275,377 3,765,132
AbbVie Inc. 28,503,743 2,627,760
Abbott Laboratories 33,280,869 2,407,205
Amgen Inc. 12,074,725 2,350,587
Medtronic plc 25,449,683 2,314,903
Eli Lilly & Co. 17,865,346 2,067,378
Thermo Fisher
Scientific Inc. 7,628,314 1,707,140
Bristol-Myers Squibb
Co. 30,929,173 1,607,698
CVS Health Corp. 24,504,922 1,605,563
Gilead Sciences Inc. 24,513,109 1,533,295* Cigna Corp. 7,215,333 1,370,336
Anthem Inc. 4,901,034 1,287,159
Danaher Corp. 11,687,843 1,205,250* Biogen Inc. 3,817,943 1,148,895
Becton Dickinson and
Co. 5,083,179 1,145,342* Intuitive Surgical Inc. 2,163,912 1,036,341* Boston Scientific Corp. 26,221,568 926,670
Stryker Corp. 5,885,193 922,504* Celgene Corp. 13,250,106 849,199* Illumina Inc. 2,785,485 835,451
Allergan plc 6,007,860 803,011* Vertex Pharmaceuticals
Inc. 4,842,540 802,457
Zoetis Inc. 9,104,263 778,779
Humana Inc. 2,599,549 744,719
HCA Healthcare Inc. 5,086,636 633,032
Baxter International Inc. 9,376,999 617,194* Edwards Lifesciences
Corp. 3,960,971 606,702* Regeneron
Pharmaceuticals Inc. 1,470,635 549,282* Centene Corp. 3,890,524 448,577* Alexion
Pharmaceuticals Inc. 4,227,397 411,579
McKesson Corp. 3,702,524 409,018
Agilent Technologies
Inc. 6,040,189 407,471
Zimmer Biomet
Holdings Inc. 3,865,297 400,909* IQVIA Holdings Inc. 3,003,029 348,862* Cerner Corp. 6,244,996 327,488
ResMed Inc. 2,701,120 307,577* IDEXX Laboratories Inc. 1,634,335 304,019* Align Technology Inc. 1,379,864 288,985* ABIOMED Inc. 853,164 277,312* Waters Corp. 1,435,813 270,866
* Mettler-Toledo
International Inc. 474,782 268,527* Mylan NV 9,774,432 267,819
Cardinal Health Inc. 5,677,589 253,220* Laboratory Corp. of
America Holdings 1,912,714 241,691
Cooper Cos. Inc. 930,756 236,877* Henry Schein Inc. 2,888,455 226,802* WellCare Health Plans
Inc. 947,736 223,751
AmerisourceBergen
Corp. Class A 2,973,622 221,237
Quest Diagnostics Inc. 2,578,393 214,703* Incyte Corp. 3,349,492 212,994* Hologic Inc. 5,108,414 209,956* Varian Medical Systems
Inc. 1,727,880 195,786
Universal Health
Services Inc. Class B 1,614,389 188,173
PerkinElmer Inc. 2,106,588 165,473
Dentsply Sirona Inc. 4,213,865 156,798* DaVita Inc. 2,390,362 123,008* Nektar Therapeutics
Class A 3,277,605 107,735
Perrigo Co. plc 2,366,820 91,714
61,939,037
Industrials (9.1%)
Boeing Co. 10,007,835 3,227,527
3M Co. 11,034,372 2,102,489
Union Pacific Corp. 13,961,870 1,929,949
Honeywell
International Inc. 14,029,386 1,853,562
United Technologies
Corp. 15,379,543 1,637,614
Caterpillar Inc. 11,182,475 1,420,957
United Parcel Service
Inc. Class B 13,174,028 1,284,863
General Electric Co. 164,825,076 1,247,726
Lockheed Martin Corp. 4,689,184 1,227,816
CSX Corp. 15,201,433 944,465
Deere & Co. 6,095,837 909,316
General Dynamics Corp. 5,275,452 829,354
Raytheon Co. 5,392,938 827,007
Northrop Grumman
Corp. 3,290,114 805,749* Norfolk Southern Corp. 5,160,816 771,748
FedEx Corp. 4,593,930 741,139
Illinois Tool Works Inc. 5,784,654 732,858
Emerson Electric Co. 11,865,621 708,971
Waste Management Inc. 7,432,697 661,436
Delta Air Lines Inc. 11,820,974 589,867
Eaton Corp. plc 8,212,033 563,838
Roper Technologies Inc. 1,959,866 522,343
Johnson Controls
International plc 17,508,466 519,126
11
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Southwest Airlines Co. 9,589,879 445,738
Ingersoll-Rand plc 4,655,268 424,700
PACCAR Inc. 6,622,700 378,421
Fortive Corp. 5,569,982 376,865
Cummins Inc. 2,799,683 374,150
Parker-Hannifin Corp. 2,508,279 374,085* United Continental
Holdings Inc. 4,337,723 363,197
Rockwell Automation
Inc. 2,287,291 344,191
Stanley Black & Decker
Inc. 2,863,251 342,846* Verisk Analytics Inc.
Class A 3,120,120 340,218* IHS Markit Ltd. 6,799,803 326,187* TransDigm Group Inc. 919,951 312,838
Harris Corp. 2,230,372 300,320
AMETEK Inc. 4,400,303 297,900
Republic Services Inc.
Class A 4,122,571 297,196
Fastenal Co. 5,441,724 284,548
Cintas Corp. 1,641,194 275,704
L3 Technologies Inc. 1,490,454 258,832
American Airlines
Group Inc. 7,771,217 249,534
WW Grainger Inc. 864,058 243,975
Xylem Inc. 3,403,098 227,055
Expeditors International
of Washington Inc. 3,268,322 222,540
CH Robinson
Worldwide Inc. 2,607,146 219,235
Equifax Inc. 2,283,180 212,633
Textron Inc. 4,600,891 211,595
Dover Corp. 2,770,941 196,598* Copart Inc. 3,899,580 186,322
Kansas City Southern 1,927,991 184,027
Masco Corp. 5,794,433 169,429* United Rentals Inc. 1,535,743 157,460
Nielsen Holdings plc 6,730,531 157,023
Huntington Ingalls
Industries Inc. 813,229 154,766
JB Hunt Transport
Services Inc. 1,653,872 153,876
Snap-on Inc. 1,054,445 153,200
Allegion plc 1,799,903 143,470
Alaska Air Group Inc. 2,334,344 142,045
Arconic Inc. 8,144,268 137,312
Jacobs Engineering
Group Inc. 2,263,670 132,334
Robert Half
International Inc. 2,300,450 131,586
AO Smith Corp. 2,724,690 116,344
Pentair plc 3,024,175 114,253
Fortune Brands Home
& Security Inc. 2,679,909 101,810
Rollins Inc. 2,789,287 100,693
Flowserve Corp. 2,477,712 94,203
Fluor Corp. 2,663,869 85,777
Quanta Services Inc. 2,765,158 83,231
36,659,982
Information Technology (20.0%)
Microsoft Corp. 146,457,745 14,875,713
Apple Inc. 85,426,039 13,475,103
Visa Inc. Class A 33,298,615 4,393,419
Intel Corp. 86,484,577 4,058,721
Cisco Systems Inc. 85,196,774 3,691,576
Mastercard Inc.
Class A 17,217,931 3,248,163
Oracle Corp. 48,295,933 2,180,561* Adobe Inc. 9,249,785 2,092,671
Broadcom Inc. 7,834,481 1,992,152* salesforce.com Inc. 14,496,209 1,985,546
International Business
Machines Corp. 17,221,251 1,957,540* PayPal Holdings Inc. 22,329,121 1,877,656
Texas Instruments Inc. 18,201,450 1,720,037
Accenture plc Class A 12,079,529 1,703,334
NVIDIA Corp. 11,558,944 1,543,119
QUALCOMM Inc. 22,969,654 1,307,203
Automatic Data
Processing Inc. 8,295,138 1,087,659
Intuit Inc. 4,918,157 968,139
Cognizant Technology
Solutions Corp.
Class A 10,972,201 696,515* Micron Technology Inc. 21,224,841 673,464
Fidelity National
Information Services
Inc. 6,205,227 636,346
HP Inc. 29,986,763 613,529
Applied Materials Inc. 18,626,443 609,830
Analog Devices Inc. 7,013,798 601,994* Red Hat Inc. 3,349,145 588,244* Fiserv Inc. 7,549,671 554,825* Autodesk Inc. 4,149,645 533,686
TE Connectivity Ltd. 6,499,545 491,561
Amphenol Corp.
Class A 5,709,714 462,601
Corning Inc. 15,163,861 458,100
Xilinx Inc. 4,794,978 408,388
Lam Research Corp. 2,941,010 400,477
Paychex Inc. 6,056,502 394,581
Motorola Solutions Inc. 3,099,001 356,509
Hewlett Packard
Enterprise Co. 26,970,197 356,276^ Microchip Technology
Inc. 4,482,459 322,378* FleetCor Technologies
Inc. 1,680,859 312,169
Global Payments Inc. 2,999,038 309,291
12
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* Advanced Micro
Devices Inc. 16,670,013 307,728* VeriSign Inc. 2,016,603 299,042
NetApp Inc. 4,774,759 284,910
DXC Technology Co. 5,310,304 282,349
Maxim Integrated
Products Inc. 5,252,079 267,068
KLA-Tencor Corp. 2,901,944 259,695
Total System Services
Inc. 3,182,092 258,672
Citrix Systems Inc. 2,424,338 248,398* Synopsys Inc. 2,829,838 238,386* Cadence Design
Systems Inc. 5,342,623 232,297
Symantec Corp. 12,113,840 228,891* ANSYS Inc. 1,584,294 226,459
Skyworks Solutions Inc. 3,361,865 225,312* Keysight Technologies
Inc. 3,554,085 220,638* Gartner Inc. 1,721,042 220,018
Broadridge Financial
Solutions Inc. 2,210,669 212,777* Arista Networks Inc. 985,571 207,660
Western Digital Corp. 5,480,405 202,611* Fortinet Inc. 2,741,908 193,113
Seagate Technology plc 4,931,844 190,320* Akamai Technologies
Inc. 3,084,398 188,395* F5 Networks Inc. 1,149,705 186,287
Jack Henry &
Associates Inc. 1,463,743 185,193
Juniper Networks Inc. 6,535,701 175,876* Qorvo Inc. 2,367,308 143,767
Western Union Co. 8,385,006 143,048
Alliance Data Systems
Corp. 887,010 133,123
FLIR Systems Inc. 2,619,317 114,045
Xerox Corp. 3,924,937 77,557* IPG Photonics Corp. 678,622 76,881
80,169,592
Materials (2.7%)
DowDuPont Inc. 43,477,540 2,325,179
Linde plc 10,442,646 1,629,471
Ecolab Inc. 4,816,379 709,693
Air Products &
Chemicals Inc. 4,159,378 665,708
Sherwin-Williams Co. 1,561,239 614,285
LyondellBasell
Industries NV Class A 5,961,019 495,718
PPG Industries Inc. 4,545,880 464,725
Newmont Mining Corp. 10,095,418 349,806
International Paper Co. 7,677,192 309,851
Nucor Corp. 5,950,270 308,284
Ball Corp. 6,429,896 295,647
Freeport-McMoRan
Inc. 27,445,469 282,963
International Flavors &
Fragrances Inc. 1,920,170 257,821
Vulcan Materials Co. 2,500,645 247,064
Celanese Corp. Class A 2,533,833 227,969
Martin Marietta
Materials Inc. 1,188,887 204,334
Mosaic Co. 6,725,352 196,448
Eastman Chemical Co. 2,651,826 193,875
CF Industries Holdings
Inc. 4,370,049 190,141
FMC Corp. 2,549,777 188,582
Westrock Co. 4,808,191 181,557^ Albemarle Corp. 2,011,100 154,995
Packaging Corp. of
America 1,789,333 149,338
Avery Dennison Corp. 1,641,842 147,487
Sealed Air Corp. 2,971,537 103,528
10,894,469
Real Estate (2.9%)
American Tower Corp. 8,346,720 1,320,368
Simon Property Group
Inc. 5,860,830 984,561
Crown Castle
International Corp. 7,860,938 853,934
Prologis Inc. 11,928,876 700,464
Public Storage 2,841,332 575,114
Equinix Inc. 1,523,189 537,015
Welltower Inc. 7,117,481 494,024
Equity Residential 6,981,353 460,839
AvalonBay
Communities Inc. 2,619,136 455,861
Digital Realty Trust Inc. 3,909,234 416,529
Ventas Inc. 6,755,246 395,790
Realty Income Corp. 5,593,015 352,584* SBA Communications
Corp. Class A 2,147,687 347,689
Boston Properties Inc. 2,927,318 329,470
Weyerhaeuser Co. 14,201,202 310,438
Essex Property Trust
Inc. 1,252,251 307,064
HCP Inc. 9,052,416 252,834* CBRE Group Inc.
Class A 6,010,257 240,651
Alexandria Real Estate
Equities Inc. 2,038,952 234,969
Host Hotels & Resorts
Inc. 14,069,715 234,542
Extra Space Storage Inc. 2,398,782 217,042
UDR Inc. 5,225,309 207,027
Mid-America Apartment
Communities Inc. 2,155,657 206,296
Vornado Realty Trust 3,284,004 203,707
Regency Centers Corp. 3,208,714 188,287
13
500 Index Fund
Market
Value•
Shares ($000)
Face Market
Amount Value•
($000) ($000)
Duke Realty Corp. 6,784,916 175,729
Iron Mountain Inc. 5,419,867 175,658
Federal Realty
Investment Trust 1,398,701 165,103
Apartment Investment
& Management Co. 2,947,391 129,331
SL Green Realty Corp. 1,614,840 127,701
Kimco Realty Corp. 7,979,347 116,897
Macerich Co. 2,003,046 86,692
11,804,210
Utilities (3.3%)
NextEra Energy Inc. 9,055,989 1,574,112
Duke Energy Corp. 13,507,473 1,165,695
Dominion Energy Inc. 12,436,218 888,692
Southern Co. 19,495,839 856,257
Exelon Corp. 18,322,197 826,331
American Electric
Power Co. Inc. 9,342,694 698,273
Sempra Energy 5,185,085 560,974
Public Service
Enterprise Group Inc. 9,577,021 498,484
Xcel Energy Inc. 9,738,524 479,817
Consolidated Edison Inc. 5,901,631 451,239
WEC Energy Group Inc. 5,979,680 414,153
Eversource Energy 6,005,874 390,622
PPL Corp. 13,646,719 386,612
DTE Energy Co. 3,447,503 380,260
Edison International 6,174,898 350,549
FirstEnergy Corp. 9,208,603 345,783
American Water Works
Co. Inc. 3,423,377 310,740
Ameren Corp. 4,630,479 302,046
Entergy Corp. 3,433,879 295,554
Evergy Inc. 4,994,125 283,516
CenterPoint Energy Inc. 9,500,860 268,209
CMS Energy Corp. 5,371,303 266,685* PG&E Corp. 9,833,830 233,553
NRG Energy Inc. 5,490,331 217,417* Alliant Energy Corp. 4,474,811 189,061
AES Corp. 12,540,941 181,342
Pinnacle West Capital
Corp. 2,125,498 181,092
NiSource Inc. 6,879,203 174,388
SCANA Corp. 2,706,750 129,329
13,300,785
Total Common Stocks
(Cost $290,571,598) 398,664,480
Temporary Cash Investments (0.5%)1
Money Market Fund (0.5%)2,3 Vanguard Market
Liquidity Fund,
2.530% 21,319,887 2,131,989
U.S. Government and Agency Obligations (0.0%)
United States
Treasury Bill,
2.280%, 2/7/19 10,000 9,9764 United States
Treasury Bill,
2.314%, 2/28/19 32,000 31,8804 United States
Treasury Bill,
2.365%, 3/21/19 20,000 19,9004 United States
Treasury Bill,
2.474%, 5/9/19 28,000 27,7624 United States
Treasury Bill,
2.497%, 5/23/19 8,000 7,924
97,442
Total Temporary Cash Investments
(Cost $2,229,269) 2,229,431
Total Investments (100.0%)
(Cost $292,800,867) 400,893,911
Amount
($000)
Other Assets and Liabilities (0.0%)
Other Assets
Investment in Vanguard 23,100
Receivables for Investment
Securities Sold 297,942
Receivables for Accrued Income 467,536
Receivables for Capital Shares Issued 796,468
Variation Margin Receivable—
Futures Contracts 14,508
Other Assets 986
Total Other Assets 1,600,540
Liabilities
Payables for Investment Securities
Purchased (444,886)
Collateral for Securities on Loan (540,005)
Payables for Capital Shares Redeemed (688,890)
Payables to Vanguard (113,321)
Total Liabilities (1,787,102)
Net Assets (100%) 400,707,349
14
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
At December 31, 2018, net assets consisted of:
Amount
($000)
Amount
($000)
Paid-in Capital 293,056,767
Total Distributable Earnings (Loss) 107,650,582
Net Assets 400,707,349
Investor Shares—Net Assets
Applicable to 100,077,825 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 23,161,935
Net Asset Value Per Share—
Investor Shares $231.44
ETF Shares—Net Assets
Applicable to 394,632,889 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 90,639,290
Net Asset Value Per Share—
ETF Shares $229.68
Admiral Shares—Net Assets
Applicable to 995,408,131 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 230,375,373
Net Asset Value Per Share—
Admiral Shares $231.44
Institutional Select Shares—Net Assets
Applicable to 460,963,079 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 56,530,751
Net Asset Value Per Share—
Institutional Select Shares $122.64
• See Note A in Notes to Financial Statements.
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $519,980,000.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 0.0%, respectively, of net assets.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Includes $540,005,000 of collateral received for securities on loan.
4 Securities with a value of $87,366,000 have been segregated as initial margin for open futures contracts.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
($000)
Value and
Number of Unrealized
Long (Short) Notional Appreciation
Expiration Contracts Amount (Depreciation)
Long Futures Contracts
E-mini S&P 500 Index March 2019 16,570 2,075,558 (64,847)
15
Year Ended
December 31, 2018
($000)
Investment Income
Income
Dividends 8,795,154
Interest1 31,767
Securities Lending—Net 3,598
Total Income 8,830,519
Expenses
The Vanguard Group—Note B
Investment Advisory Services 15,468
Management and Administrative—Investor Shares 32,487
Management and Administrative—ETF Shares 19,222
Management and Administrative—Admiral Shares 73,345
Management and Administrative—Institutional Select Shares 3,138
Marketing and Distribution—Investor Shares 4,019
Marketing and Distribution—ETF Shares 4,647
Marketing and Distribution—Admiral Shares 13,909
Marketing and Distribution—Institutional Select Shares 2
Custodian Fees 2,346
Auditing Fees 48
Shareholders’ Reports—Investor Shares 373
Shareholders’ Reports—ETF Shares 782
Shareholders’ Reports—Admiral Shares 1,220
Shareholders’ Reports—Institutional Select Shares 14
Trustees’ Fees and Expenses 275
Total Expenses 171,295
Net Investment Income 8,659,224
Realized Net Gain (Loss)
Investment Securities Sold1,2 14,389,018
Futures Contracts (85,932)
Realized Net Gain (Loss) 14,303,086
Change in Unrealized Appreciation (Depreciation)
Investment Securities1 (43,303,022)
Futures Contracts (75,009)
Change in Unrealized Appreciation (Depreciation) (43,378,031)
Net Increase (Decrease) in Net Assets Resulting from Operations (20,415,721)
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $30,057,000, ($358,000), and $33,000, respectively. Purchases and sales are for temporary cash investment purposes.
2 Includes $14,063,188,000 of net gain (loss) resulting from in-kind redemptions; such gain (loss) is not taxable to the fund.
Statement of Operations
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
16
Statement of Changes in Net Assets
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended December 31,
2018 2017
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 8,659,224 6,543,479
Realized Net Gain (Loss) 14,303,086 6,306,381
Change in Unrealized Appreciation (Depreciation) (43,378,031) 52,957,229
Net Increase (Decrease) in Net Assets Resulting from Operations (20,415,721) 65,807,089
Distributions
Net Investment Income
Investor Shares (474,872) (502,714)
ETF Shares (1,812,323) (1,392,614)
Admiral Shares (4,653,557) (4,061,760)
Institutional Select Shares (1,066,831) (593,341)
Realized Capital Gain
Investor Shares — —
ETF Shares — —
Admiral Shares — —
Institutional Select Shares — —
Total Distributions (8,007,583) (6,550,429)
Capital Share Transactions
Investor Shares (3,019,824) (3,875,867)
ETF Shares 14,094,239 14,595,756
Admiral Shares 10,715,967 16,802,846
Institutional Select Shares 15,905,665 22,089,206
Net Increase (Decrease) from Capital Share Transactions 37,696,047 49,611,941
Total Increase (Decrease) 9,272,743 108,868,601
Net Assets
Beginning of Period 391,434,606 282,566,005
End of Period 400,707,349 391,434,606
17
Investor Shares
For a Share Outstanding Year Ended December 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $246.82 $206.57 $188.48 $189.89 $170.36
Investment Operations
Net Investment Income 4.8961 4.2211 3.997 3.775 3.326
Net Realized and Unrealized Gain (Loss)
on Investments (15.776) 40.205 18.069 (1.438) 19.507
Total from Investment Operations (10.880) 44.426 22.066 2.337 22.833
Distributions
Dividends from Net Investment Income (4.500) (4.176) (3.976) (3.747) (3.303)
Distributions from Realized Capital Gains — — — — —
Total Distributions (4.500) (4.176) (3.976) (3.747) (3.303)
Net Asset Value, End of Period $231.44 $246.82 $206.57 $188.48 $189.89
Total Return2 -4.52% 21.67% 11.82% 1.25% 13.51%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $23,162 $27,656 $26,652 $26,092 $28,040
Ratio of Total Expenses to Average Net Assets 0.14% 0.14% 0.14% 0.16% 0.17%
Ratio of Net Investment Income to
Average Net Assets 1.95% 1.87% 2.05% 2.00% 1.88%
Portfolio Turnover Rate3 4% 3% 4% 3% 3%
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
18
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
ETF Shares
For a Share Outstanding Year Ended December 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $244.94 $205.00 $187.05 $188.45 $169.07
Investment Operations
Net Investment Income 5.1961 4.4341 4.155 3.958 3.518
Net Realized and Unrealized Gain (Loss)
on Investments (15.719) 39.874 17.933 (1.427) 19.352
Total from Investment Operations (10.523) 44.308 22.088 2.531 22.870
Distributions
Dividends from Net Investment Income (4.737) (4.368) (4.138) (3.931) (3.490)
Distributions from Realized Capital Gains — — — — —
Total Distributions (4.737) (4.368) (4.138) (3.931) (3.490)
Net Asset Value, End of Period $229.68 $244.94 $205.00 $187.05 $188.45
Total Return -4.42% 21.78% 11.93% 1.35% 13.63%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $90,639 $83,640 $56,648 $40,440 $27,630
Ratio of Total Expenses to Average Net Assets 0.03% 0.04% 0.04% 0.05% 0.05%
Ratio of Net Investment Income to
Average Net Assets 2.06% 1.97% 2.15% 2.11% 2.00%
Portfolio Turnover Rate2 4% 3% 4% 3% 3%
1 Calculated based on average shares outstanding.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
19
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
Admiral Shares
For a Share Outstanding Year Ended December 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $246.82 $206.57 $188.48 $189.89 $170.36
Investment Operations
Net Investment Income 5.1811 4.4581 4.185 3.990 3.544
Net Realized and Unrealized Gain (Loss)
on Investments (15.808) 40.193 18.074 (1.439) 19.503
Total from Investment Operations (10.627) 44.651 22.259 2.551 23.047
Distributions
Dividends from Net Investment Income (4.753) (4.401) (4.169) (3.961) (3.517)
Distributions from Realized Capital Gains — — — — —
Total Distributions (4.753) (4.401) (4.169) (3.961) (3.517)
Net Asset Value, End of Period $231.44 $246.82 $206.57 $188.48 $189.89
Total Return2 -4.43% 21.79% 11.93% 1.36% 13.64%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $230,375 $235,232 $181,513 $152,740 $143,043
Ratio of Total Expenses to Average Net Assets 0.04% 0.04% 0.04% 0.05% 0.05%
Ratio of Net Investment Income to
Average Net Assets 2.05% 1.97% 2.15% 2.11% 2.00%
Portfolio Turnover Rate3 4% 3% 4% 3% 3%
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
20
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
Institutional Select Shares
June 24,
Year Ended 20161 to
Dec. 31, Dec. 31,
For a Share Outstanding Throughout Each Period 2018 2017 2016
Net Asset Value, Beginning of Period $130.79 $109.45 $99.57
Investment Operations
Net Investment Income 2.8082 2.4232 1.200
Net Realized and Unrealized Gain (Loss) on Investments (8.400) 21.283 9.859
Total from Investment Operations (5.592) 23.706 11.059
Distributions
Dividends from Net Investment Income (2.558) (2.366) (1.179)
Distributions from Realized Capital Gains — — —
Total Distributions (2.558) (2.366) (1.179)
Net Asset Value, End of Period $122.64 $130.79 $109.45
Total Return -4.40% 21.83% 11.12%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $56,531 $44,907 $17,753
Ratio of Total Expenses to Average Net Assets 0.01% 0.01% 0.01%3
Ratio of Net Investment Income to Average Net Assets 2.08% 2.00% 2.26%3
Portfolio Turnover Rate4 4% 3% 4%5
1 Inception.
2 Calculated based on average shares outstanding.
3 Annualized.
4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
5 Reflects the fund’s portfolio turnover for the fiscal year ended December 31, 2016.
21
Notes to Financial Statements
500 Index Fund
22
Vanguard 500 Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares, and Institutional Select Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
On November 19, 2018, the fund announced changes to the availability and minimum investment criteria of the Investor and Admiral share classes. It is anticipated that all of the outstanding Investor Shares will be automatically converted to Admiral Shares beginning in April 2019, with the exception of those held by Vanguard funds and certain other institutional investors.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).
500 Index Fund
23
During the year ended December 31, 2018, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2015–2018), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
6. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at December 31, 2018, or at any time during the period then ended.
7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income
500 Index Fund
over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At December 31, 2018, the fund had contributed to Vanguard capital in the amount of $23,100,000, representing 0.01% of the fund’s net assets and 9.24% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities. Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of December 31, 2018, based on the inputs used to value them:
Level 1 Level 2 Level 3 Investments ($000) ($000) ($000)
Common Stocks 398,664,480 — —
Temporary Cash Investments 2,131,989 97,442 —
Futures Contracts—Assets1 14,508 — —
Total 400,810,977 97,442 —
1 Represents variation margin on the last day of the reporting period.
24
500 Index Fund
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share. As of period
end, permanent differences primarily attributable to the accounting for in-kind redemptions were
reclassified between the following accounts:
Amount
($000)
Paid-in Capital 14,063,188
Total Distributable Earnings (Loss) (14,063,188)
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales and the realization
of unrealized gains or losses on certain futures contracts. As of period end, the tax-basis
components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 660,893
Undistributed Long-Term Gains —
Capital Loss Carryforwards (Non-expiring)* (996,573)
Net Unrealized Gains (Losses) 108,093,044
* The fund used capital loss carryforwards of $164,889,000 to offset taxable capital gains realized during the year ended December 31, 2018, reducing the amount of capital gains that would otherwise be available to distribute to shareholders.
As of December 31, 2018, gross unrealized appreciation and depreciation for investments and
derivatives based on cost for U.S. federal income tax purposes were as follows:
E. During the year ended December 31, 2018, the fund purchased $74,314,407,000 of
investment securities and sold $36,727,631,000 of investment securities, other than temporary
cash investments. Purchases and sales include $47,248,097,000 and $21,334,284,000, respectively,
in connection with in-kind purchases and redemptions of the fund’s capital shares.
25
Amount
($000)
Tax Cost 292,800,867
Gross Unrealized Appreciation 134,554,192
Gross Unrealized Depreciation (26,461,148)
Net Unrealized Appreciation (Depreciation) 108,093,044
500 Index Fund
F. Capital share transactions for each class of shares were:
Year Ended December 31,
2018 2017
Amount Shares Amount Shares
($000) (000) ($000) (000)
Investor Shares
Issued 3,739,073 14,707 4,064,839 18,044
Issued in Lieu of Cash Distributions 444,813 1,788 473,688 2,063
Redeemed (7,203,710) (28,466) (8,414,394) (37,077)
Net Increase (Decrease)—Investor Shares (3,019,824) (11,971) (3,875,867) (16,970)
ETF Shares
Issued 33,022,329 130,065 23,401,120 104,080
Issued in Lieu of Cash Distributions — — — —
Redeemed (18,928,090) (76,900) (8,805,364) (38,950)
Net Increase (Decrease)—ETF Shares 14,094,239 53,165 14,595,756 65,130
Admiral Shares
Issued 40,632,052 160,485 38,394,575 170,114
Issued in Lieu of Cash Distributions 4,116,552 16,541 3,598,566 15,616
Redeemed (34,032,637) (134,667) (25,190,295) (111,384)
Net Increase (Decrease)—Admiral Shares 10,715,967 42,359 16,802,846 74,346
Institutional Select Shares
Issued 19,415,700 143,348 22,971,601 188,566
Issued in Lieu of Cash Distributions 1,066,831 8,093 593,340 4,807
Redeemed (4,576,866) (33,838) (1,475,735) (12,216)
Net Increase (Decrease)—
Institutional Select Shares 15,905,665 117,603 22,089,206 181,157
G. Management has determined that no events or transactions occurred subsequent to
December 31, 2018, that would require recognition or disclosure in these financial statements.
26
To the Board of Trustees of Vanguard Index Funds and Shareholders of Vanguard 500 Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of net assets of Vanguard 500 Index Fund (one of the
funds constituting Vanguard Index Funds, referred to hereafter as the “Fund”) as of December 31,
2018, the related statement of operations for the year ended December 31, 2018, the statement of
changes in net assets for each of the two years in the period ended December 31, 2018, including
the related notes, and the financial highlights for each of the periods indicated therein (collectively
referred to as the “financial statements”). In our opinion, the financial statements present fairly, in
all material respects, the financial position of the Fund as of December 31, 2018, the results of its
operations for the year then ended, the changes in its net assets for each of the two years in the
period ended December 31, 2018 and the financial highlights for each of the periods indicated therein
in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility
is to express an opinion on the Fund’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
(“PCAOB”) and are required to be independent with respect to the Fund in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of
the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether
due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. Our procedures included confirmation of securities owned
as of December 31, 2018 by correspondence with the custodians and brokers and by agreement to
the underlying ownership records of the transfer agent; when replies were not received from brokers,
we performed other auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 13, 2019
We have served as the auditor of one or more investment companies in The Vanguard Group of
Funds since 1975.
Report of Independent Registered Public Accounting Firm
27
Special 2018 tax information (unaudited) for Vanguard 500 Index Fund
This information for the fiscal year ended December 31, 2018, is included pursuant to provisions
of the Internal Revenue Code.
The fund distributed $8,007,583,000 of qualified dividend income to shareholders during the
fiscal year.
For corporate shareholders, 94.5% of investment income (dividend income plus short-term gains,
if any) qualifies for the dividends-received deduction.
28
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your
best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also
serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard
funds and provides services to them.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation
with Vanguard or the funds they oversee, apart from the sizable personal investments they have
made as private individuals. The independent board members have distinguished backgrounds
in business, academia, and public service. Each of the trustees and executive officers oversees
212 Vanguard funds.
Information for each trustee and executive officer of the fund appears below. The mailing address
of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the
trustees is in the Statement of Additional Information, which can be obtained, without charge,
by contacting Vanguard at 800-662-7447, or online at vanguard.com.
Interested Trustees1
F. William McNabb III
Born in 1957. Trustee since July 2009. Principal
occupation(s) during the past five years and
other experience: chairman of the board
(January 2010–present) of Vanguard and of each
of the investment companies served by Vanguard,
trustee (2009–present) of each of the investment
companies served by Vanguard, and director
(2008–present) of Vanguard. Chief executive officer
and president (2008–2017) of Vanguard and each
of the investment companies served by Vanguard,
managing director (1995–2008) of Vanguard,
and director (1997–2018) of Vanguard Marketing
Corporation. Director (2018–present) of
UnitedHealth Group.
Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal
occupation(s) during the past five years and
other experience: chief executive officer
(January 2018–present) of Vanguard; chief executive
officer, president, and trustee (January 2018–present)
of each of the investment companies served by
Vanguard; president and director (2017–present) of
Vanguard; and president (February 2018–present) of
Vanguard Marketing Corporation. Chief investment
officer (2013–2017), managing director (2002–2017),
head of the Retail Investor Group (2006–2012), and
chief information officer (2001–2006) of Vanguard.
Chairman of the board (2011–2017) of the Children’s
Hospital of Philadelphia.
Independent Trustees
Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal
occupation(s) during the past five years and other
experience: executive chief staff and marketing officer
for North America and corporate vice president (retired
2008) of Xerox Corporation (document management
products and services). Former president of the
Worldwide Channels Group, Latin America, and
Worldwide Customer Service and executive chief
staff officer of Developing Markets of Xerox. Executive
in residence and 2009–2010 Distinguished Minett
Professor at the Rochester Institute of Technology.
Lead director of SPX FLOW, Inc. (multi-industry
manufacturing). Director of the University of Rochester
Medical Center, the Monroe Community College
Foundation, the United Way of Rochester, North
Carolina A&T University, and Roberts Wesleyan
College. Trustee of the University of Rochester.
Amy Gutmann
Born in 1949. Trustee since June 2006. Principal
occupation(s) during the past five years and other
experience: president (2004–present) of the University
of Pennsylvania. Christopher H. Browne Distinguished
Professor of Political Science, School of Arts and
Sciences, and professor of communication, Annenberg
School for Communication, with secondary faculty
appointments in the Department of Philosophy, School
of Arts and Sciences, and at the Graduate School of
Education, University of Pennsylvania. Trustee of the
National Constitution Center.
1 Mr. McNabb and Mr. Buckley are considered “interested persons,” as defined in the Investment Company Act of 1940, because they are officers of the Vanguard funds.
JoAnn Heffernan Heisen
Born in 1950. Trustee since July 1998. Principal
occupation(s) during the past five years and other
experience: corporate vice president of Johnson &
Johnson (pharmaceuticals/medical devices/consumer
products) and member of its executive committee
(1997–2008). Chief global diversity officer (retired
2008), vice president and chief information officer
(1997–2006), controller (1995–1997), treasurer
(1991–1995), and assistant treasurer (1989–1991)
of Johnson & Johnson. Director of Skytop Lodge
Corporation (hotels) and the Robert Wood Johnson
Foundation. Member of the advisory board of the
Institute for Women’s Leadership at Rutgers University.
F. Joseph Loughrey
Born in 1949. Trustee since October 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2009) and vice chairman of the board
(2008–2009) of Cummins Inc. (industrial machinery).
Chairman of the board of Hillenbrand, Inc. (specialized
consumer services), Oxfam America, and the Lumina
Foundation for Education. Director of the V Foundation
for Cancer Research. Member of the advisory council
for the College of Arts and Letters and chair of the
advisory board to the Kellogg Institute for International
Studies, both at the University of Notre Dame.
Mark Loughridge
Born in 1953. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: senior vice president and chief financial
officer (retired 2013) of IBM (information technology
services). Fiduciary member of IBM’s Retirement
Plan Committee (2004–2013), senior vice president
and general manager (2002–2004) of IBM Global
Financing, vice president and controller (1998–2002)
of IBM, and a variety of other prior management roles
at IBM. Member of the Council on Chicago Booth.
Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: chief investment officer (1989–present)
and vice president (1996–present) of the University
of Notre Dame. Assistant professor of finance at the
Mendoza College of Business, University of Notre
Dame, and member of the Notre Dame 403(b)
Investment Committee. Chairman of the board of
TIFF Advisory Services, Inc. Member of the board
of Catholic Investment Services, Inc. (investment
advisors), the board of advisors for Spruceview
Capital Partners, and the board of superintendence
of the Institute for the Works of Religion.
Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: president (2010–present) and chief
executive officer (2011–present) of The Guardian
Life Insurance Company of America. Chief operating
officer (2010–2011) and executive vice president
(2008–2010) of Individual Life and Disability of
The Guardian Life Insurance Company of America.
Member of the board of The Guardian Life Insurance
Company of America, the American Council of Life
Insurers, the Partnership for New York City (business
leadership), and the Committee Encouraging Corporate
Philanthropy. Trustee of the Economic Club of New
York and the Bruce Museum (arts and science).
Member of the Advisory Council for the Stanford
Graduate School of Business.
André F. Perold
Born in 1952. Trustee since December 2004. Principal
occupation(s) during the past five years and other
experience: George Gund Professor of Finance and
Banking, Emeritus at the Harvard Business School
(retired 2011). Chief investment officer and co-
managing partner of HighVista Strategies LLC
(private investment firm). Overseer of the Museum
of Fine Arts Boston.
Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: deputy secretary (2014–2017) of
the United States Department of the Treasury.
Governor (2010–2014) of the Federal Reserve Board.
Commissioner (2007–2010) of financial regulation
for the State of Maryland. Member of the board of
directors (2012–2014) of Neighborhood Reinvestment
Corporation. Director of i(x) Investments, LLC.
Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2010) of Corning Incorporated (communications
equipment) and director of Corning Incorporated
(2000–2010) and Dow Corning (2001–2010).
Director (2012) of SPX Corporation (multi-industry
manufacturing). Overseer of the Amos Tuck School
of Business Administration, Dartmouth College
(2001–2013). Chairman of the board of trustees of
Colby-Sawyer College. Member of the Board of
Hypertherm Inc. (industrial cutting systems, software,
and consumables).
Executive Officers
Glenn Booraem
Born in 1967. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Investment stewardship officer (2017–present),
treasurer (2015–2017), controller (2010–2015),
and assistant controller (2001–2010) of each of
the investment companies served by Vanguard.
Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past
five years and other experience: principal of Vanguard
and global head of Fund Administration at Vanguard.
Treasurer (2017–present) of each of the investment
companies served by Vanguard. Partner (2005–2017)
at KPMG LLP (audit, tax, and advisory services).
Brian Dvorak
Born in 1973. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Chief compliance officer (2017–present) of Vanguard
and each of the investment companies served by
Vanguard. Assistant vice president (2017–present) of
Vanguard Marketing Corporation. Vice president and
director of Enterprise Risk Management (2011–2013)
at Oppenheimer Funds, Inc.
Thomas J. Higgins
Born in 1957. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Chief financial officer (2008–present) and treasurer
(1998–2008) of each of the investment companies
served by Vanguard.
Peter Mahoney
Born in 1974. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Controller (2015–present) of each of the investment
companies served by Vanguard. Head of International
Fund Services (2008–2014) at Vanguard.
Anne E. Robinson
Born in 1970. Principal occupation(s) during the
past five years and other experience: general
counsel (2016–present) of Vanguard. Secretary
(2016–present) of Vanguard and of each of the
investment companies served by Vanguard.
Managing director (2016–present) of Vanguard.
Director and senior vice president (2016–2018)
of Vanguard Marketing Corporation. Managing
director and general counsel of Global Cards and
Consumer Services (2014–2016) at Citigroup.
Counsel (2003–2014) at American Express.
Michael Rollings
Born in 1963. Principal occupation(s) during the
past five years and other experience: finance
director (2017–present) and treasurer (2017) of each
of the investment companies served by Vanguard.
Managing director (2016–present) of Vanguard. Chief
financial officer (2016–present) of Vanguard. Director
(2016–present) of Vanguard Marketing Corporation.
Executive vice president and chief financial officer
(2006–2016) of MassMutual Financial Group.
Vanguard Senior Management Team
Joseph Brennan Chris D. McIsaac
Mortimer J. Buckley James M. Norris
Gregory Davis Thomas M. Rampulla
John James Karin A. Risi
Martha G. King Anne E. Robinson
John T. Marcante Michael Rollings
Chairman Emeritus and Senior Advisor
John J. Brennan
Chairman, 1996–2009
Chief Executive Officer and President, 1996–2008
Founder
John C. Bogle
Chairman and Chief Executive Officer, 1974–1996
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All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.
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The index is a product of S&P Dow Jones Indices LLC(“SPDJI”), and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registeredtrademarks of Standard & Poor’s Financial Services LLC(“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); S&P®and S&P 500® are trademarks of S&P; and thesetrademarks have been licensed for use by SPDJI andsublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, soldor promoted by SPDJI, Dow Jones, S&P, or theirrespective affiliates and none of such parties make anyrepresentation regarding the advisability of investing insuch product(s) nor do they have any liability for anyerrors, omissions, or interruptions of the index.
Source for Bloomberg Barclays indexes: BloombergIndex Services Limited. Copyright 2019, Bloomberg. Allrights reserved.
© 2019 The Vanguard Group, Inc.All rights reserved.U.S. Patent Nos. 6,879,964; 7,337,138;7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636.Vanguard Marketing Corporation, Distributor.
Q400 022019