Vanguard Global ex-U.S. Real Estate
Index Fund
Semiannual Report | April 30, 2018
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.
See the Glossary for definitions of investment terms used in this report.About the cover: Nautical images have been part of Vanguard’s rich heritage since its start in 1975. For anincoming ship, a lighthouse offers a beacon and safe path to shore. You can similarly depend on Vanguard to putyou first––and light the way––as you strive to meet your financial goals. Our client focus and low costs,stemming from our unique ownership structure, assure that your interests are paramount.
Vanguard’s Principles for Investing Success
We want to give you the best chance of investment success. Theseprinciples, grounded in Vanguard’s research and experience, can put you onthe right path.
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds.
Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.
A single theme unites these principles: Focus on the things you can control.We believe there is no wiser course for any investor.
Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1
CEO’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Results of Proxy Voting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 38
Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . 40
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Your Fund’s Performance at a Glance
1
Total Returns: Six Months Ended April 30, 2018
TotalReturns
Vanguard Global ex-U.S. Real Estate Index Fund
Investor Shares 6.23%
ETF Shares
Market Price 6.09
Net Asset Value 6.32
Admiral™ Shares 6.33
Institutional Shares 6.32
S&P Global ex-U.S. Property Index 6.57
International Real Estate Funds Average 7.74
International Real Estate Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. TheVanguard ETF® Shares shown are traded on the Nasdaq exchange and are available only through brokers. The table provides ETF returnsbased on both the Nasdaq market price and the net asset value for a share. U.S. Pat. Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573;8,090,646; and 8,417,623.
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 Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.
• Vanguard Global ex-U.S. Real Estate Index Fund returned more than 6% for the six
months ended April 30, 2018, trailing its benchmark index and the average return of its
international real estate peers. Its return diverged from that of its benchmark in part
because of temporary pricing discrepancies arising from fair-value adjustments.
Please see the Glossary entry for Fair-Value Pricing.
• The global real estate sector benefited from decent economic growth trends in both
developed and emerging markets. Each major region generated positive results, with the
exception of the Middle East. The Pacific region and Europe, which together account for
about three-quarters of the index, were responsible for a large portion of the fund’s return.
• Japan was the main driver of performance in the Pacific region, while the United
Kingdom boosted performance in Europe. Brazil, Indonesia, the Philippines, the United
Arab Emirates, and Israel were among the largest detractors.
2
Expense RatiosYour Fund Compared With Its Peer Group
Investor
Shares
ETF
Shares
Admiral
Shares
Institutional
Shares
Peer Group
Average
Global ex-U.S. Real Estate Index Fund 0.34% 0.14% 0.14% 0.12% 1.36%
The fund expense ratios shown are from the prospectus dated February 23, 2018, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2018, the fund’s annualized expense ratios were 0.34% for Investor Shares, 0.14% for ETF Shares,0.14% for Admiral Shares, and 0.12% for Institutional Shares. The peer-group expense ratio is derived from data provided by Lipper, aThomson Reuters Company, and captures information through year-end 2017.
Peer group: International Real Estate Funds.
Dear Shareholder,
I feel extremely fortunate to have the
chance to lead a company filled with
people who come to work every day
passionate about Vanguard’s core
purpose: to take a stand for all investors,
to treat them fairly, and to give them the
best chance for investment success.
When I joined Vanguard in 1991,
I found a mission-driven team focused
on improving lives—helping people retire
more comfortably, put their children
through college, and achieve financial
security. I also found a company with
purpose in an industry ripe for
improvement.
It was clear, even early in my career,
that the cards were stacked against most
investors. Hidden fees, performance-
chasing, and poor advice were relentlessly
eroding investors’ dreams.
We knew Vanguard could be different
and, as a result, could make a real
difference. We have lowered the costs
of investing for our shareholders
significantly. And we’re proud of the
performance of our funds.
Vanguard is built for Vanguard
investors—we focus solely on you,
our fund shareholders. Everything we
do is designed to give our clients the
best chance for investment success.
In my role as CEO, I’ll keep this priority
CEO’s Perspective
Tim Buckley
President and Chief Executive Officer
3
front and center. We’re proud of what
we’ve achieved, but we’re even more
excited about what’s to come.
Steady, time-tested guidance
Our guidance for investors, as always, is
to stay the course, tune out the hyperbolic
headlines, and focus on your goals and
what you can control, such as costs and
how much you save. This time-tested
advice has served our clients well over
the decades.
Regardless of how the markets perform
in the short term, I’m incredibly optimistic
about the future for our investors. We
have a dedicated team serving you,
and we will never stop striving to make
Vanguard the best place for you to
invest through our high-quality funds
and services, advice and guidance
to help you meet your financial goals,
and an experience that makes you
feel good about entrusting us with
your hard-earned savings.
Thank you for your continued loyalty.
Sincerely,
Mortimer J. Buckley
President and Chief Executive Officer
May 16, 2018
Market Barometer
Total Returns
Periods Ended April 30, 2018
Six One Five Years
Months Year (Annualized)
Stocks
Russell 1000 Index (Large-caps) 3.83% 13.17% 12.84%
Russell 2000 Index (Small-caps) 3.27 11.54 11.74
Russell 3000 Index (Broad U.S. market) 3.79 13.05 12.75
FTSE All-World ex US Index (International) 3.72 15.84 5.85
Bonds
Bloomberg Barclays U.S. Aggregate Bond Index
(Broad taxable market) -1.87% -0.32% 1.47%
Bloomberg Barclays Municipal Bond Index
(Broad tax-exempt market) -0.97 1.56 2.44
Citigroup Three-Month U.S. Treasury Bill Index 0.67 1.16 0.32
CPI
Consumer Price Index 1.57% 2.46% 1.50%
4
Results of Proxy Voting
At a special meeting of shareholders on November 15, 2017, fund shareholders approved the
following proposals:
Proposal 1—Elect trustees for the fund.*
The individuals listed in the table below were elected as trustees for the fund. All trustees with the
exception of Ms. Mulligan, Ms. Raskin, and Mr. Buckley (each of whom already serves as a director
of The Vanguard Group, Inc.) served as trustees to the funds prior to the shareholder meeting.
Percentage
Trustee For Withheld For
Mortimer J. Buckley 2,339,442,601 69,365,078 97.1%
Emerson U. Fullwood 2,338,836,617 69,971,063 97.1%
Amy Gutmann 2,339,842,903 68,964,776 97.1%
JoAnn Heffernan Heisen 2,332,323,293 76,484,386 96.8%
F. Joseph Loughrey 2,331,093,587 77,714,092 96.8%
Mark Loughridge 2,331,742,523 77,065,156 96.8%
Scott C. Malpass 2,339,621,962 69,185,717 97.1%
F. William McNabb III 2,335,834,840 72,972,840 97.0%
Deanna Mulligan 2,342,264,462 66,543,217 97.2%
André F. Perold 2,331,307,170 77,500,510 96.8%
Sarah Bloom Raskin 2,341,521,293 67,286,386 97.2%
Peter F. Volanakis 2,331,354,993 77,452,686 96.8%
* Results are for all funds within the same trust.
Proposal 2—Approve a manager-of-managers arrangement with third-party investment advisors.
This arrangement enables the fund to enter into and materially amend investment advisory
arrangements with third-party investment advisors, subject to the approval of the fund’s board
of trustees and certain conditions imposed by the Securities and Exchange Commission, while
avoiding the costs and delays associated with obtaining future shareholder approval.
Broker Percentage
Vanguard Fund For Abstain Against Non-Votes For
Global ex-U.S. Real Estate
Index Fund 51,721,186 1,716,512 1,333,204 11,540,331 78.0%
5
Proposal 3—Approve a manager-of-managers arrangement with wholly owned subsidiaries
of Vanguard.
This arrangement enables Vanguard or the fund to enter into and materially amend investment
advisory arrangements with wholly owned subsidiaries of Vanguard, subject to the approval of the
fund’s board of trustees and any conditions imposed by the Securities and Exchange Commission
(SEC), while avoiding the costs and delays associated with obtaining future shareholder approval.
The ability of the fund to operate in this manner is contingent upon the SEC’s approval of a pending
application for an order of exemption.
Broker Percentage
Vanguard Fund For Abstain Against Non-Votes For
Global ex-U.S. Real Estate
Index Fund 51,926,154 1,689,680 1,155,067 11,540,331 78.3%
6
Global ex-U.S. Real Estate Index Fund
Fund ProfileAs of April 30, 2018
1 The expense ratios shown are from the prospectus dated February 23, 2018, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2018, the annualized expense ratios were 0.34% for Investor Shares, 0.14% for ETF Shares, 0.14% forAdmiral Shares, and 0.12% for Institutional Shares.
7
Volatility Measures
S&P
Global
ex-U.S.
Property
Index
MSCI AC
World
Index
ex USA
R-Squared 0.98 0.78
Beta 0.95 0.86
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Share-Class Characteristics
Investor
Shares ETF Shares
Admiral
Shares
Institutional
Shares
Ticker Symbol VGXRX VNQI VGRLX VGRNX
Expense Ratio1 0.34% 0.14% 0.14% 0.12%
Portfolio Characteristics
Fund
S&P
Global
ex-U.S.
Property
Index
Number of Stocks 637 608
Median Market Cap $7.1B $7.1B
Price/Earnings Ratio 9.7x 9.7x
Price/Book Ratio 1.1x 1.1x
Return on Equity 11.1% 11.1%
Earnings Growth
Rate 13.2% 13.2%
Dividend Yield 3.4% 3.4%
Turnover Rate
(Annualized) 4% —
Short-Term Reserves -0.5% —
Ten Largest Holdings (% of total net assets)
Sun Hung Kai Properties
Ltd.
Diversified Real
Estate Activities 2.3%
Mitsubishi Estate Co.
Ltd.
Diversified Real
Estate Activities 2.2
Mitsui Fudosan Co. Ltd. Diversified Real
Estate Activities 2.2
Daiwa House Industry
Co. Ltd.
Diversified Real
Estate Activities 2.1
Vonovia SE Real Estate
Operating
Companies 2.1
Unibail-Rodamco SE Retail REITs 2.1
CK Asset Holdings Ltd. Real Estate
Development 2.0
Link REIT Retail REITs 1.7
Sumitomo Realty &
Development Co. Ltd.
Diversified Real
Estate Activities 1.7
Deutsche Wohnen SE Real Estate
Operating
Companies 1.5
Top Ten 19.9%
The holdings listed exclude any temporary cash investments andequity index products.
Global ex-U.S. Real Estate Index Fund
Allocation by Region (% of equity exposure)
48.9% Pacific
25.1% Europe
22.6% Emerging Markets
2.3% North America
0.8% Middle East
0.3% Other
8
Market Diversification (% of equity exposure)
Fund
S&PGlobal
ex-U.S.Property
Index
Europe
United Kingdom 7.0% 7.0%
Germany 5.7 5.7
France 4.9 4.9
Sweden 1.9 1.9
Switzerland 1.3 1.3
Spain 1.3 1.2
Other 3.0 3.0
Subtotal 25.1% 25.0%
Pacific
Japan 21.6% 21.6%
Hong Kong 12.7 12.8
Australia 8.6 8.7
Singapore 5.5 5.5
Other 0.5 0.5
Subtotal 48.9% 49.1%
Emerging Markets
China 11.5% 11.5%
South Africa 2.5 2.5
Philippines 1.4 1.4
Thailand 1.2 1.2
Mexico 1.0 1.0
Other 5.0 4.7
Subtotal 22.6% 22.3%
North America
Canada 2.3% 2.3%
Middle East 0.8% 0.9%
Other 0.3% 0.4%
"Other" represents securities that are not classified by the fund's benchmark index.
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.
Global ex-U.S. Real Estate Index Fund
Performance Summary
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares. TheFiscal-Year Total Returns chart is not adjusted for fees.See Financial Highlights for dividend and capital gains information.
9
Fiscal-Year Total Returns (%): November 1, 2010, Through April 30, 2018
–8.49 –7.48
2011
21.3119.71
2012
14.69 14.79
2013
2.41 1.31
2014
–1.82 –1.10
2015
2.72 2.08
2016
15.88 15.58
2017
6.23 6.57
2018
Global ex-U.S. Real Estate Index Fund Investor Shares
S&P Global ex-U.S. Property Index
Note: For 2018, performance data reflect the six months ended April 30, 2018.
Average Annual Total Returns: Periods Ended March 31, 2018This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.Securities and Exchange Commission rules require that we provide this information.
InceptionDate
OneYear
FiveYears
SinceInception
Investor Shares 11/1/2010 18.68% 5.05% 6.58%
Fee-Adjusted Returns 18.10 4.95 6.52
ETF Shares 11/1/2010
Market Price 19.04 5.16 6.73
Net Asset Value 18.91 5.22 6.74
Admiral Shares 2/10/2011 18.92 5.24 7.09
Fee-Adjusted Returns 18.34 5.14 7.02
Institutional Shares 4/19/2011 18.95 5.26 6.94
Fee-Adjusted Returns 18.36 5.16 6.88
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Common Stocks (99.1%)1
Australia (8.6%)
Scentre Group 32,186,882 97,286
Westfield Corp. 11,557,057 79,862
Goodman Group 9,689,716 65,925
LendLease Group 3,527,550 47,309
Stockland 14,716,562 45,745
Dexus 6,101,535 43,392
GPT Group 10,850,311 39,345
Mirvac Group 22,399,321 37,590
Vicinity Centres 19,424,990 35,567
Charter Hall Group 2,799,652 12,391
Investa Office Fund 3,005,612 9,900
Cromwell Property
Group 9,574,174 7,793
Shopping Centres
Australasia Property
Group 4,329,801 7,733
BWP Trust 2,947,276 6,927
Charter Hall Retail
REIT 1,985,858 5,885
Abacus Property
Group 1,940,011 5,264
Aveo Group 2,551,241 5,010
Viva Energy REIT 2,656,838 4,028
National Storage REIT 3,340,886 4,011
Growthpoint
Properties Australia
Ltd. 1,549,751 4,001
Charter Hall Long
Wale REIT 1,029,265 3,160
Folkestone Education
Trust 1,341,137 2,884
GDI Property Group 3,058,217 2,875
Gateway Lifestyle 1,839,501 2,744
Arena REIT 1,568,548 2,625
Ingenia Communities
Group 1,239,487 2,484
Rural Funds Group 1,544,637 2,471
Hotel Property
Investments 863,061 1,994
Propertylink Group 2,236,388 1,735
Cedar Woods
Properties Ltd. 315,749 1,453
Villa World Ltd. 647,492 1,202
Industria REIT 566,644 1,080
Servcorp Ltd. 277,345 996
592,667
Austria (0.9%) ^ BUWOG AG 678,337 23,798
IMMOFINANZ AG 5,871,300 15,371
CA Immobilien
Anlagen AG 441,928 15,324
S IMMO AG 323,811 6,406
60,899
Belgium (0.8%)
Cofinimmo SA 117,905 15,652
Warehouses De
Pauw CVA 96,896 11,918
Aedifica SA 108,725 9,859
Befimmo SA 139,118 9,034
Retail Estates NV 46,719 4,104
Intervest Offices &
Warehouses NV 99,150 2,848
53,415
Brazil (0.6%)
BR Malls
Participacoes SA 5,158,616 16,080
Multiplan
Empreendimentos
Imobiliarios SA 790,816 15,016
Iguatemi Empresa de
Shopping Centers SA 514,786 5,246
Financial Statements (unaudited)
Statement of Net AssetsAs of April 30, 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. Forms N-Q may also be reviewed and copied at the SEC’s
Public Reference Room (see the back cover of this report for further information).
Global ex-U.S. Real Estate Index Fund
10
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Aliansce Shopping
Centers SA 534,137 2,624
BR Properties SA 737,374 1,873
Sonae Sierra Brasil SA 117,365 751* Helbor
Empreendimentos SA 1,153,309 478
42,068
Canada (2.3%) ^ RioCan REIT 955,112 17,370
First Capital Realty Inc. 990,183 15,478
H&R REIT 859,506 13,803^ Canadian Apartment
Properties REIT 406,825 11,736
Allied Properties REIT 272,448 8,802^ SmartCentres REIT 390,095 8,750^ Canadian REIT 217,352 8,549^ Tricon Capital Group
Inc. 817,075 6,402
Pure Industrial Real
Estate Trust 900,992 5,670
Granite REIT 141,636 5,572
Dream Global REIT 513,237 5,472^ Cominar REIT 544,617 5,315^ Boardwalk REIT 137,008 4,920^ Artis REIT 454,339 4,738
Dream Office REIT 224,074 4,150* DREAM Unlimited
Corp. Class A 428,084 3,191
Northview Apartment
REIT 151,188 3,004
Killam Apartment
REIT 243,078 2,685^ Crombie REIT 268,023 2,595
NorthWest Healthcare
Properties REIT 296,759 2,589^ Choice Properties REIT 290,492 2,586
InterRent REIT 270,030 2,116^ CT REIT 187,742 1,915
Dream Industrial REIT 208,620 1,636
Morguard REIT 130,532 1,353^ Slate Retail REIT 127,011 1,223
Summit Industrial
Income REIT 184,708 1,195^ Slate Office REIT 203,185 1,187
Morguard North
American Residential
REIT 92,815 1,008
Agellan Commercial
REIT 91,794 791
155,801
Chile (0.2%)
Parque Arauco SA 3,737,891 11,580
China (11.4%)
Country Garden
Holdings Co. Ltd. 42,038,163 85,719
China Overseas Land
& Investment Ltd. 23,186,710 77,690* China Evergrande
Group 20,684,921 65,521
China Resources
Land Ltd. 16,330,446 61,333
Sunac China Holdings
Ltd. 13,029,278 55,345
China Vanke Co. Ltd. 7,950,983 32,860
Longfor Properties
Co. Ltd. 8,562,708 25,609^,* Zall Group Ltd. 18,258,574 23,824^ Fullshare Holdings
Ltd. 41,575,135 22,825
Shimao Property
Holdings Ltd. 6,560,664 17,353
Agile Group Holdings
Ltd. 8,737,409 17,235
CIFI Holdings Group
Co. Ltd. 21,148,000 16,653
China Jinmao
Holdings Group Ltd. 27,151,054 15,370
Guangzhou R&F
Properties Co. Ltd. 6,130,609 14,576
Future Land Holdings
Co. Ltd. Class A 2,878,159 14,344
Sino-Ocean Group
Holding Ltd. 18,337,329 12,733^,* Jiayuan International
Group Ltd. 6,594,000 12,235
KWG Property
Holding Ltd. 8,390,158 11,302
Logan Property
Holdings Co. Ltd. 7,615,984 11,166
Yuexiu Property Co.
Ltd. 37,399,094 8,4142 Red Star Macalline
Group Corp. Ltd. 6,038,000 8,108
Future Land
Development
Holdings Ltd. 9,650,000 7,991
Shanghai Lujiazui
Finance & Trade
Zone Development
Co. Ltd. Class B 5,455,978 7,804
Shenzhen Investment
Ltd. 19,096,201 7,718^,* Kaisa Group Holdings
Ltd. 14,226,000 7,599
Yuzhou Properties Co.
Ltd. 9,631,470 7,006
11
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^ China Aoyuan
Property Group Ltd. 7,784,000 6,253
SOHO China Ltd. 11,518,545 5,915
Shui On Land Ltd. 21,124,038 5,688* Poly Property Group
Co. Ltd. 11,684,048 5,431^ Greentown China
Holdings Ltd. 3,940,814 5,193
China SCE Property
Holdings Ltd. 10,048,766 5,043
Times China
Holdings Ltd. 3,410,000 4,954
Yuexiu REIT 6,810,516 4,546
Powerlong Real Estate
Holdings Ltd. 8,487,139 4,376
China South City
Holdings Ltd. 19,962,111 4,340* Ronshine China
Holdings Ltd. 2,915,500 4,325* Zhenro Properties
Group Ltd. 6,882,000 4,286
Hopson Development
Holdings Ltd. 4,010,710 4,267^,* Skyfame Realty
Holdings Ltd. 5,727,004 4,025^,*,2 China Logistics
Property Holdings
Co. Ltd. 11,195,000 3,960^ China Overseas
Grand Oceans
Group Ltd. 8,018,079 3,481
Joy City Property Ltd. 22,015,520 3,454^,2 Redco Group 5,392,000 3,377
Gemdale Properties
& Investment Corp.
Ltd. 27,902,000 3,165
Road King
Infrastructure Ltd. 1,475,000 2,796
Beijing Capital Land
Ltd. 5,213,034 2,776^ LVGEM China Real
Estate Investment
Co. Ltd. 6,056,000 2,482^,* Carnival Group
International
Holdings Ltd. 54,582,799 2,394
Spring REIT 5,697,000 2,366^,* Ground International
Development Ltd. 11,030,000 2,359^,* Zhuguang Holdings
Group Co. Ltd. 11,766,000 2,256* C C Land Holdings Ltd. 9,735,500 2,220
Greenland Hong Kong
Holdings Ltd. 4,754,000 2,190
Shanghai Jinqiao
Export Processing
Zone Development
Co. Ltd. Class B 1,550,210 2,020* Renhe Commercial
Holdings Co. Ltd. 99,237,484 2,001
Nam Tai Property Inc. 148,747 1,807
Shanghai Industrial
Urban Development
Group Ltd. 7,956,799 1,711
Central China Real
Estate Ltd. 3,580,000 1,634
Fantasia Holdings
Group Co. Ltd. 8,101,443 1,593^ China Merchants
Land Ltd. 7,172,000 1,505
Yida China Holdings
Ltd. 4,482,000 1,456
Beijing North Star
Co. Ltd. 3,976,000 1,416
China Electronics
Optics Valley Union
Holding Co. Ltd. 17,200,000 1,416^,* AVIC International
Holding HK Ltd. 32,593,742 1,399
Guorui Properties Ltd. 4,055,000 1,336
Shanghai Shibei
Hi-Tech Co. Ltd.
Class B 2,619,850 1,3072 China Vast Industrial
Urban Development
Co. Ltd. 2,395,000 1,225* Glorious Property
Holdings Ltd. 14,812,036 1,200
Tian An China
Investment Co. Ltd. 1,905,000 1,181*,3 Mingfa Group
International Co. Ltd. 4,231,908 1,019
Xinyuan Real Estate
Co. Ltd. ADR 191,087 961
Greattown Holdings
Ltd. Class B 868,573 583^,* Hydoo International
Holding Ltd. 9,258,000 552* Shanghai Huili
Building Materials
Co. Ltd. Class B 471,800 494* China Minsheng
Drawin Technology
Group Ltd. 16,500,000 396* Wuzhou International
Holdings Ltd. 4,784,000 364
12
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* EverChina International
Holdings Co. Ltd. 14,714,331 331* China New City
Commercial
Development Ltd. 52,000 9
785,167
Denmark (0.0%) * TK Development A/S 449,255 513
Egypt (0.2%)
Talaat Moustafa Group 5,900,770 4,544* Six of October
Development &
Investment 1,490,785 2,281* Palm Hills
Developments SAE 7,501,157 2,215* Medinet Nasr Housing 2,957,104 2,139
Heliopolis Housing 763,610 1,517* Emaar Misr for
Development SAE 3,479,997 899
13,595
Finland (0.1%)
Citycon Oyj 2,232,892 5,107
Technopolis Oyj 723,560 3,384
8,491
France (4.9%)
Unibail-Rodamco SE 600,454 144,152^ Klepierre SA 1,254,331 51,339
Gecina SA 291,090 50,461
Fonciere Des Regions 325,653 36,421^,* ICADE 272,438 27,074
Nexity SA 280,436 17,536^ Mercialys SA 338,831 6,484
Altarea SCA 22,299 5,683
339,150
Germany (5.7%)
Vonovia SE 2,932,643 146,941
Deutsche Wohnen SE 2,144,015 101,187
LEG Immobilien AG 379,423 43,749
TAG Immobilien AG 879,923 18,595
Grand City Properties
SA 636,401 15,332
TLG Immobilien AG 481,190 13,844
alstria office REIT-AG 838,400 12,613
Deutsche EuroShop AG 305,116 10,9662 ADO Properties SA 165,658 9,106
Hamborner REIT AG 484,754 5,439* PATRIZIA Immobilien
AG 269,931 5,389
DIC Asset AG 282,832 3,480* ADLER Real Estate AG 169,821 3,155
WCM Beteiligungs &
Grundbesitz-AG 168,935 841
390,637
Greece (0.1%)
Grivalia Properties
REIC AE 241,493 2,652* LAMDA Development
SA 209,654 1,688
4,340
Hong Kong (12.7%)
Sun Hung Kai
Properties Ltd. 9,983,441 160,778* CK Asset Holdings
Ltd. 15,866,875 136,978
Link REIT 13,115,589 115,917
Wharf Real Estate
Investment Co. Ltd. 7,146,000 53,579
Henderson Land
Development Co. Ltd. 8,217,452 52,103
Hongkong Land
Holdings Ltd. 7,112,312 51,402
New World
Development Co. Ltd. 34,177,000 50,121
Wheelock & Co. Ltd. 4,806,652 35,662
Sino Land Co. Ltd. 18,724,604 32,322
Hang Lung Properties
Ltd. 12,241,932 28,971
Wharf Holdings Ltd. 7,166,000 23,840
Swire Properties Ltd. 6,371,200 22,615
Hysan Development
Co. Ltd. 3,098,655 18,035
Kerry Properties Ltd. 3,589,832 17,161
Hang Lung Group Ltd. 5,187,103 15,668
Champion REIT 12,282,512 8,677
Great Eagle Holdings
Ltd. 1,441,697 7,282
K Wah International
Holdings Ltd. 8,082,338 4,961^ Chinese Estates
Holdings Ltd. 2,873,952 4,275
Sunlight REIT 6,155,400 4,166
Far East Consortium
International Ltd. 6,520,000 3,723^ Wang On Properties
Ltd. 22,828,000 3,591
Prosperity REIT 7,211,649 2,974
HKR International Ltd. 4,486,082 2,730
Kowloon Development
Co. Ltd. 2,051,414 2,314
Lai Sun Development
Co. Ltd. 1,407,609 2,175
CSI Properties Ltd. 32,538,348 2,103
Langham Hospitality
Investments and
Langham Hospitality
Investments Ltd. 4,748,000 1,988
Liu Chong Hing
Investment Ltd. 1,142,000 1,836
13
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Emperor International
Holdings Ltd. 5,169,832 1,568
Asia Standard
International Group
Ltd. 3,814,000 914
Soundwill Holdings
Ltd. 462,000 822* CNQC International
Holdings Ltd. 1,535,000 557* Ping An Securities
Group Holdings Ltd. 50,940,000 504^,* Master Glory Group
Ltd. 37,890,000 361* Man Sang
International Ltd. 2,496,000 145
872,818
India (0.5%)
DLF Ltd. 2,546,746 8,450* Indiabulls Real Estate
Ltd. 1,581,092 5,059
Oberoi Realty Ltd. 565,594 4,638* Godrej Properties Ltd. 309,019 3,716
Phoenix Mills Ltd. 327,761 3,060
Prestige Estates
Projects Ltd. 669,155 3,050
Sobha Ltd. 250,617 2,057
Sunteck Realty Ltd. 202,933 1,303* Unitech Ltd. 12,893,631 1,103
Mahindra Lifespace
Developers Ltd. 140,489 976
Omaxe Ltd. 246,863 823
Brigade Enterprises
Ltd. 194,222 816* Housing Development
& Infrastructure Ltd. 1,562,087 773
Anant Raj Ltd. 662,446 464
36,288
Indonesia (0.6%)
Bumi Serpong Damai
Tbk PT 56,253,327 6,793
Ciputra Development
Tbk PT 71,408,491 5,617
Pakuwon Jati Tbk PT 129,065,628 5,456* Hanson International
Tbk PT 425,654,900 4,295
Summarecon Agung
Tbk PT 55,252,900 3,575* Lippo Karawaci Tbk
PT 108,382,400 3,462
Kawasan Industri
Jababeka Tbk PT 102,000,411 1,801
Alam Sutera Realty
Tbk PT 61,882,597 1,613* Sentul City Tbk PT 117,538,000 1,569
Modernland Realty
Tbk PT 43,511,200 1,108
PP Properti Tbk PT 91,455,907 1,047
Intiland Development
Tbk PT 29,107,051 644
Puradelta Lestari Tbk
PT 44,711,000 540
Bekasi Fajar Industrial
Estate Tbk PT 24,202,082 461* Lippo Cikarang Tbk
PT 2,386,700 395
38,376
Ireland (0.3%)
Green REIT plc 4,194,682 7,686
Hibernia REIT plc 4,211,240 7,541
Irish Residential
Properties REIT plc 2,162,443 3,550
18,777
Israel (0.8%)
Azrieli Group Ltd. 220,932 10,106
Alony Hetz Properties
& Investments Ltd. 667,703 5,923
Gazit-Globe Ltd. 578,568 5,470* Airport City Ltd. 440,182 5,026
Melisron Ltd. 106,401 4,344
Reit 1 Ltd. 1,044,066 4,189
Amot Investments
Ltd. 781,916 3,853* Jerusalem Economy
Ltd. 1,243,575 3,023* Brack Capital
Properties NV 20,728 2,301
Summit Real Estate
Holdings Ltd. 212,687 1,909
Sella Capital Real
Estate Ltd. 999,960 1,842* Africa Israel
Properties Ltd. 74,481 1,717
Norstar Holdings Inc. 94,854 1,673
Big Shopping Centers
Ltd. 26,027 1,669
Alrov Properties and
Lodgings Ltd. 42,102 1,423* ADO Group Ltd. 69,900 1,274
Blue Square Real
Estate Ltd. 29,891 1,070
Property & Building
Corp. Ltd. 12,996 967
57,779
14
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Italy (0.1%)
Beni Stabili SpA SIIQ 6,319,605 5,984* Immobiliare Grande
Distribuzione SIIQ SPA 287,052 2,686
8,670
Japan (21.4%)
Mitsubishi Estate Co.
Ltd. 8,409,645 153,666
Mitsui Fudosan Co.
Ltd. 5,994,257 153,545
Daiwa House Industry
Co. Ltd. 4,027,574 147,253
Sumitomo Realty &
Development Co. Ltd. 2,872,367 114,100
Daito Trust Construction
Co. Ltd. 464,925 77,580
Nippon Building Fund
Inc. 8,549 48,038
Japan Real Estate
Investment Corp. 8,319 43,100
Nomura Real Estate
Master Fund Inc. 25,309 35,378
Hulic Co. Ltd. 2,930,024 31,528
Japan Retail Fund
Investment Corp. 15,819 29,657
United Urban
Investment Corp. 18,427 28,303
Nippon Prologis REIT
Inc. 13,156 27,727
Daiwa House REIT
Investment Corp. 10,388 24,766
Orix JREIT Inc. 16,170 24,648
Tokyu Fudosan
Holdings Corp. 3,094,956 24,356
GLP J-Reit 20,473 22,008
Advance Residence
Investment Corp. 8,163 21,030
Japan Prime Realty
Investment Corp. 5,580 20,237
Tokyo Tatemono Co.
Ltd. 1,312,083 19,982
Nomura Real Estate
Holdings Inc. 767,329 18,989
Activia Properties Inc. 4,239 18,784
Japan Hotel REIT
Investment Corp. 24,134 18,260
Kenedix Office
Investment Corp. 2,449 15,023
Aeon Mall Co. Ltd. 683,983 13,831
Leopalace21 Corp. 1,526,550 13,240
Nippon
Accommodations
Fund Inc. 2,950 13,197
Frontier Real Estate
Investment Corp. 3,018 12,442
Mori Hills REIT
Investment Corp. 9,013 11,589
Industrial &
Infrastructure Fund
Investment Corp. 10,284 11,385
Japan Logistics Fund
Inc. 5,601 11,356
Invincible Investment
Corp. 25,140 11,222^ Daiwa Office
Investment Corp. 1,890 11,184
Japan Excellent Inc. 7,930 10,311
AEON REIT
Investment Corp. 9,054 9,400^ Hulic Reit Inc. 5,972 9,217
Mori Trust Sogo Reit
Inc. 5,860 8,742
Comforia Residential
REIT Inc. 3,542 8,134
Tokyu REIT Inc. 5,992 8,071
Premier Investment
Corp. 8,018 7,850
NTT Urban
Development Corp. 663,500 7,817
Japan Rental Housing
Investments Inc. 9,864 7,673
Sekisui House Reit
Inc. 11,834 7,619
Fukuoka REIT Corp. 4,827 7,482
MCUBS MidCity
Investment Corp. 9,886 7,459
NIPPON REIT
Investment Corp. 2,354 7,148
Kenedix Residential
Next Investment Corp. 4,726 6,974^,3 Sekisui House
Residential Investment
Corp. 6,669 6,909
Ichigo Office REIT
Investment 9,275 6,880
LaSalle Logiport REIT 6,589 6,766
Kenedix Retail REIT
Corp. 3,100 6,562
Hoshino Resorts
REIT Inc. 1,269 6,245
Ichigo Inc. 1,376,000 6,127
Heiwa Real Estate
REIT Inc. 6,093 5,830^ Invesco Office J-Reit
Inc. 44,139 5,577
Global One Real
Estate Investment
Corp. 5,449 5,454
Hankyu Reit Inc. 3,861 4,929
15
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Heiwa Real Estate Co.
Ltd. 206,232 4,831
Mitsui Fudosan
Logistics Park Inc. 1,365 4,396
Daibiru Corp. 347,557 4,144
TOC Co. Ltd. 467,129 4,136
Daikyo Inc. 184,305 4,011
Unizo Holdings Co.
Ltd. 141,100 3,360
Mitsubishi Estate
Logistics REIT
Investment Corp. 1,285 3,101^ Mirai Corp. 1,782 2,999
Mori Trust Hotel Reit
Inc. 2,054 2,715^ One REIT Inc. 1,127 2,570
Keihanshin Building
Co. Ltd. 296,200 2,524
Star Asia Investment
Corp. 2,525 2,433^ Shinoken Group Co.
Ltd. 73,400 2,232
Goldcrest Co. Ltd. 97,340 2,068
Takara Leben Co. Ltd. 487,752 2,066
Starts Proceed
Investment Corp. 1,374 2,023^ Ichigo Hotel REIT
Investment Corp. 1,567 1,925^ SAMTY Co. Ltd. 100,100 1,850
Tosei Corp. 146,900 1,801
Arealink Co. Ltd. 53,000 1,749
Sakura Sogo REIT
Investment Corp. 2,014 1,723
Sun Frontier Fudousan
Co. Ltd. 142,700 1,722^ Samty Residential
Investment Corp. 1,767 1,543
Star Mica Co. Ltd. 70,800 1,530
Tosei Reit Investment
Corp. 1,369 1,407
Nisshin Fudosan Co. 166,000 1,247
Japan Property
Management Center
Co. Ltd. 73,800 1,082^ Ooedo Onsen Reit
Investment Corp. 1,296 1,062^ Health Care & Medical
Investment Corp. 1,085 1,053^ Nippon Commercial
Development Co. Ltd. 58,300 954^,* CRE Logistics REIT Inc. 823 860
Mugen Estate Co. Ltd. 58,100 738^ Tokyo Theatres Co. Inc. 45,701 610^ Ardepro Co. Ltd. 1,045,400 602
1,475,647
Malaysia (0.7%)
Sime Darby Property
Bhd. 15,776,200 5,977
SP Setia Bhd Group 7,161,000 5,798
IOI Properties Group
Bhd. 13,100,300 5,202
Sunway Bhd. 11,433,576 4,386
KLCCP Stapled Group
Bhd. 2,040,270 4,034
IGB REIT 7,941,300 3,221
Sunway REIT 7,357,334 3,016
UOA Development
Bhd. 3,610,400 2,231
Mah Sing Group Bhd. 7,386,025 1,914* Eco World
Development Group
Bhd. 6,147,600 1,796* UEM Sunrise Bhd. 7,338,765 1,719
Eastern & Oriental Bhd. 4,751,656 1,691
Matrix Concepts
Holdings Bhd. 3,104,128 1,593
Pavilion REIT 3,801,900 1,449* Eco World
International Bhd. 5,329,593 1,322
Axis REIT 3,534,300 1,240
Capitaland Malaysia
Mall Trust 4,106,000 1,191
LBS Bina Group Bhd. 3,787,740 925
MKH Bhd. 1,986,600 695* KSL Holdings Bhd. 2,666,900 644
KIP REIT 2,881,900 564
Titijaya Land Bhd. 2,872,500 334* Sunway Bhd.
Warrants Exp.
12/31/2024 1,260,691 127* Eco World
Development Group
Bhd Warrants Exp.
03/26/2022 450,320 33* Matrix Concepts
Holdings Bhd.
Warrants Exp.
07/20/2020 167,103 11* Eastern & Oriental
Bhd Warrants Exp.
07/21/2019 438,840 9* Mah Sing Group
Warrants Exp.
01/15/2026 264,345 5
51,127
16
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Mexico (1.0%)
Fibra Uno
Administracion SA
de CV 19,855,940 32,881
Concentradora Fibra
Danhos SA de CV 4,773,325 8,489
PLA Administradora
Industrial S de RL
de CV 4,809,396 7,669
Macquarie Mexico
Real Estate
Management SA
de CV 4,844,306 5,170
Corp Inmobiliaria
Vesta SAB de CV 3,260,650 4,707
Prologis Property
Mexico SA de CV 2,096,300 3,8942 Concentradora Fibra
Hotelera Mexicana
SA de CV 4,142,948 2,576* Grupo GICSA SA
de CV 2,845,403 1,508
Asesor de Activos
Prisma SAPI de CV 2,053,863 1,411
Fibra Shop Portafolios
Inmobiliarios SAPI
de CV 2,293,018 1,334
69,639
Netherlands (0.5%)
Eurocommercial
Properties NV 299,404 12,549^ Wereldhave NV 243,189 9,772
Vastned Retail NV 97,217 4,861
NSI NV 112,919 4,860* Griffin Premium
RE NV 198,854 288
32,330
New Zealand (0.4%)
Kiwi Property Group
Ltd. 8,586,822 8,257
Goodman Property
Trust 6,255,532 6,002
Precinct Properties
New Zealand Ltd. 5,864,664 5,272
Argosy Property Ltd. 5,112,163 3,647
Vital Healthcare
Property Trust 2,018,518 2,944
Stride Property Group 2,290,076 2,783
Investore Property Ltd. 1,179,227 1,177
30,082
Norway (0.2%) 2 Entra ASA 749,147 10,274
Selvaag Bolig ASA 274,657 1,395
11,669
Other (0.2%)4
^,5 Vanguard Real Estate
ETF 146,614 11,156
Philippines (1.4%)
SM Prime Holdings
Inc. 69,831,695 46,019
Ayala Land Inc. 35,525,800 27,916
Megaworld Corp. 76,780,500 6,663
Robinsons Land Corp. 12,303,372 4,243
Vista Land &
Lifescapes Inc. 30,763,178 3,857* DoubleDragon
Properties Corp. 3,550,260 2,139
Filinvest Land Inc. 57,696,000 1,852
Belle Corp. 24,827,800 1,609* International
Entertainment Corp. 2,554,000 603
Cebu Landmasters Inc. 3,552,644 312
95,213
Poland (0.1%) ^ Echo Polska
Properties NV 2,765,393 4,205
Globe Trade Centre SA 1,121,714 2,948
7,153
Qatar (0.1%)
Barwa Real Estate Co. 580,320 5,625
United Development
Co. QSC 1,031,998 4,128* Mazaya Qatar Real
Estate Development
QSC 323,513 614
10,367
Russia (0.1%)
LSR Group PJSC GDR 1,218,335 3,226
Etalon Group plc GDR 505,571 1,445
4,671
Singapore (5.5%)
CapitaLand Ltd. 15,367,838 43,335
City Developments
Ltd. 3,739,690 35,538
Ascendas REIT 14,511,161 29,111
CapitaLand Mall Trust 16,305,734 25,750
UOL Group Ltd. 3,349,178 22,120
CapitaLand
Commercial Trust 15,735,687 21,498
Suntec REIT 13,502,327 19,847
Mapletree
Commercial Trust 11,492,433 14,009
Mapletree Logistics
Trust 12,402,566 11,848
Mapletree Industrial
Trust 7,404,434 11,301
Keppel REIT 10,809,215 10,091
17
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Fortune REIT 8,324,861 9,858
Mapletree Greater
China Commercial
Trust 10,712,550 9,584
Ascott Residence Trust 7,590,866 6,520
CDL Hospitality Trusts 4,542,446 6,078
Frasers Centrepoint
Trust 3,451,241 5,819
Manulife US REIT 5,805,300 5,513
Frasers Logistics &
Industrial Trust 6,788,400 5,361
Parkway Life REIT 2,342,055 4,917
Yanlord Land Group
Ltd. 3,777,104 4,816
Keppel DC REIT 4,311,013 4,631
Starhill Global REIT 8,244,668 4,470
OUE Hospitality Trust 6,691,100 4,230
CapitaLand Retail
China Trust 3,566,886 4,213
Frasers Commercial
Trust 3,886,467 4,094
Cache Logistics Trust 6,456,042 4,062
AIMS AMP Capital
Industrial REIT 3,641,676 3,897
Wing Tai Holdings Ltd. 2,310,410 3,540
First REIT 3,428,054 3,538
Frasers Property Ltd. 2,288,500 3,495^ ESR-REIT 8,203,435 3,270
Lippo Malls Indonesia
Retail Trust 11,632,906 2,847
SPH REIT 3,807,000 2,842
Ascendas Hospitality
Trust 4,427,300 2,713
GuocoLand Ltd. 1,613,777 2,630
Far East Hospitality
Trust 5,114,392 2,597
Wheelock Properties
Singapore Ltd. 1,806,069 2,470^ Yoma Strategic
Holdings Ltd. 7,378,018 2,377^ OUE Ltd. 1,686,100 2,294* Cromwell European
REIT 2,703,600 1,987^ GSH Corp. Ltd. 5,396,200 1,928
Soilbuild Business
Space REIT 3,600,260 1,804
Sabana Shari’ah
Compliant Industrial
REIT 4,497,972 1,439
Sinarmas Land Ltd. 4,552,000 1,247^,* Ying Li International
Real Estate Ltd. 6,562,600 681* Aspen Group Holdings
Ltd. 4,012,300 645
376,855
South Africa (2.5%)
Growthpoint
Properties Ltd. 17,334,035 40,463
NEPI Rockcastle plc 3,493,429 38,500
Redefine Properties
Ltd. 32,104,648 30,853
Hyprop Investments
Ltd. 1,496,135 13,659^ Resilient REIT Ltd. 2,343,684 12,752
Vukile Property Fund
Ltd. 4,742,171 8,533* Attacq Ltd. 4,574,319 7,055
SA Corporate Real
Estate Ltd. 15,361,914 5,882
Emira Property Fund
Ltd. 3,168,743 4,094
Arrowhead Properties
Ltd. 6,347,321 3,555
Rebosis Property Fund
Ltd. 4,044,060 2,627
Octodec Investments
Ltd. 968,364 1,698
Delta Property Fund
Ltd. 3,120,760 1,637
Balwin Properties Ltd. 1,167,168 553
171,861
South Korea (0.0%) ^ SK D&D Co. Ltd. 45,403 1,253
Dongwon Development
Co. Ltd. 219,593 1,018
2,271
Spain (1.3%)
Merlin Properties
Socimi SA 2,012,008 31,045
Inmobiliaria Colonial
Socimi SA 1,942,248 22,569
Hispania Activos
Inmobiliarios
SOCIMI SA 654,895 13,885
Lar Espana Real
Estate Socimi SA 562,535 6,379*,2 Aedas Homes SAU 140,745 5,032*,2 Metrovacesa SA 233,582 4,197
Axiare Patrimonio
SOCIMI SA 102,132 2,165^,* Realia Business SA 1,046,346 1,387^,* Quabit Inmobiliaria SA 434,127 1,011* Quabit Inmobiliaria
SA Rights Exp.
05/11/2018 434,127 24
87,694
18
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Sweden (1.9%)
Castellum AB 1,651,647 26,699* Fabege AB 1,698,898 19,561* Fastighets AB Balder
Class B 591,814 15,246
Hemfosa Fastigheter
AB 953,560 11,812^ Wallenstam AB 1,289,141 11,549
Hufvudstaden AB
Class A 712,677 10,459
Wihlborgs Fastigheter
AB 419,182 9,715
Kungsleden AB 1,128,937 8,006^,* D Carnegie & Co.
AB Class B 263,753 4,103
Klovern AB 3,281,144 4,094^ Dios Fastigheter AB 530,113 3,363
Victoria Park AB
Class B 646,384 2,654^ Magnolia Bostad AB 97,637 573
127,834
Switzerland (1.3%)
Swiss Prime Site AG 432,071 40,483
PSP Swiss Property AG 244,351 22,831* Allreal Holding AG 86,447 14,213* Mobimo Holding AG 37,072 9,575
Intershop Holding AG 9,103 4,544
91,646
Taiwan (0.6%)
Highwealth
Construction Corp. 5,343,544 8,227* Ruentex Development
Co. Ltd. 6,464,874 7,741
Chong Hong
Construction Co. Ltd. 1,209,297 3,512
Huaku Development
Co. Ltd. 1,382,854 3,193
Hung Sheng
Construction Ltd. 2,618,000 3,075
Shin Kong No.1 REIT 6,049,000 2,977
Prince Housing &
Development Corp. 7,048,478 2,803
Cathay Real Estate
Development Co. Ltd. 3,105,100 1,805
Farglory Land
Development Co. Ltd. 1,622,631 1,778* Radium Life Tech Co.
Ltd. 4,208,947 1,528
Kindom Construction
Corp. 1,983,000 1,293* Taiwan Land
Development Corp. 3,515,450 1,115* Kuoyang Construction
Co. Ltd. 2,042,665 1,018
Hong Pu Real Estate
Development Co. Ltd. 1,273,194 970
Advancetek Enterprise
Co. Ltd. 1,300,000 863* Shining Building
Business Co. Ltd. 2,188,119 853
KEE TAI Properties
Co. Ltd. 2,325,869 851* ZongTai Real Estate
Development Co. Ltd. 1,120,574 807
Huang Hsiang
Construction Corp. 790,000 751
45,160
Thailand (1.2%) * Central Pattana PCL 8,135,200 20,760* Land & Houses PCL 21,297,200 7,413* CPN Retail Growth
Leasehold REIT 9,812,110 7,023
Tesco Lotus Retail
Growth Freehold &
Leasehold Property
Fund 10,654,698 6,168* WHA Corp. PCL-F 37,764,830 4,718* Bangkok Land PCL
ORD 53,815,100 3,189* Quality Houses PCL 26,649,900 2,581
Samui Airport
Property Fund
Leasehold 3,474,875 2,577* Origin Property PCL 4,097,899 2,352* Supalai PCL 3,189,305 2,339* IMPACT Growth REIT 4,143,000 2,333* Amata Corp. PCL 3,186,500 2,055
Platinum Group PCL 6,495,300 1,692* Golden Ventures
Leasehold REIT 3,410,500 1,567* U City PCL 1,546,928,600 1,470* Siam Future
Development PCL 4,866,767 1,393
TICON Industrial
Connection PCL 2,436,280 1,3653 Pruksa Real Estate
PCL 3,024,500 1,286* Sansiri PCL (Local) 20,529,400 1,088* Ananda Development
PCL 8,422,500 1,043* LPN Development
PCL 3,236,600 1,024* AP Thailand PCL 3,794,350 1,008* Singha Estate PCL 8,997,436 984* Gland Office
Leasehold REIT 2,526,803 953* Hemaraj Leasehold
REIT 3,553,300 849
Sansiri PCL 14,694,200 779
19
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* Pruksa Holding PCL 875,600 617^ WHA Corp. PCL 4,759,678 595* Supalai PCL 806,276 591* Univentures PCL 2,078,700 589* TICON Industrial
Connection PCL 861,000 482^ Univentures PCL-
FRGN 1,577,100 447^ Asian Property
Development PCL
(Foreign) 1,513,270 402* Bhiraj Office
Leasehold REIT 959,800 398* SC Asset Corp. ORD 3,071,925 370* SC Asset Corp. NVDR 2,627,700 316* SC Asset Corp.
ORD F 2,526,712 304^,* Bangkok Land PCL
ORD F 4,269,495 253^ Land & Houses PCL-F 481,300 168
TICON Industrial
Connection PCL
(Foreign) 50,093 28^,* Singha Estate PCL-F 253,164 28* WHA Corp. PCL
Warrants Exp.
12/31/2019 108,341 24* Raimon Land PCL
Warrants Exp.
06/14/2018 1,271,475 —
85,621
Turkey (0.1%) * Emlak Konut
Gayrimenkul Yatirim
Ortakligi AS 11,757,351 7,045
Is Gayrimenkul
Yatirim Ortakligi AS 3,230,639 970
AKIS Gayrimenkul
Yatirimi AS 875,671 730
Torunlar Gayrimenkul
Yatirim Ortakligi AS 818,753 564
9,309
United Arab Emirates (0.9%)
Emaar Properties
PJSC 20,741,755 32,600
Aldar Properties PJSC 18,706,923 10,678* DAMAC Properties
Dubai Co. PJSC 10,075,995 7,578* Emaar Malls PJSC 11,611,454 7,015* Eshraq Properties Co.
PJSC 7,035,885 1,359* Deyaar Development
PJSC 8,123,599 1,036
RAK Properties PJSC 5,511,338 990
61,256
United Kingdom (6.9%)
Land Securities
Group plc 4,542,666 61,668
British Land Co. plc 6,006,842 55,473
Segro plc 6,011,823 53,348
Hammerson plc 4,798,605 36,174
Derwent London plc 670,702 29,417
Shaftesbury plc 1,480,734 20,603
UNITE Group plc 1,588,941 18,242
Capital & Counties
Properties plc 4,549,143 18,005
Tritax Big Box REIT
plc 8,418,164 17,348* Great Portland
Estates plc 1,696,524 16,348
Intu Properties plc 5,288,494 14,211
Assura plc 14,363,451 11,777
Big Yellow Group plc 896,633 11,345
Workspace Group plc 717,324 10,956
LondonMetric
Property plc 4,184,682 10,950
Grainger plc 2,509,819 10,809
F&C Commercial
Property Trust Ltd. 4,795,117 9,679
Safestore Holdings plc 1,265,392 9,518
NewRiver REIT plc 1,844,331 7,368
St. Modwen
Properties plc 1,147,843 6,480
Primary Health
Properties plc 3,965,830 6,172
UK Commercial
Property Trust Ltd. 4,069,892 5,000
MAS Real Estate Inc. 2,581,732 4,856
Hansteen Holdings plc 2,495,184 4,554
Picton Property
Income Ltd. 3,293,088 4,077
Empiric Student
Property plc 3,468,559 4,071
Redefine
International plc 7,894,677 4,038
Helical plc 650,070 3,365
Schroder REIT Ltd. 3,142,640 2,6522 Regional REIT Ltd. 1,838,672 2,524
Capital & Regional plc 3,136,500 2,292
LXI REIT plc 1,184,756 1,678
Civitas Social
Housing plc 1,173,413 1,6622 AEW UK Long
Lease Reit plc 485,849 636
477,296
Total Common Stocks
(Cost $6,323,999) 6,826,888
20
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Amount
($000)
Temporary Cash Investments (3.9%)1
Money Market Fund (3.8%)6,7 Vanguard Market
Liquidity Fund,
1.886% 2,636,053 263,605
Face
Amount
($000)
U.S. Government and Agency Obligations (0.1%) 8 United States Treasury Bill,
1.414%, 5/24/18 500 5008 United States Treasury Bill,
1.422%, 5/31/18 1,350 1,3488 United States Treasury Bill,
1.518%, 6/28/18 200 199
United States Treasury Bill,
1.946%, 10/4/18 500 496
2,543
Total Temporary Cash Investments
(Cost $266,131) 266,148
Total Investments (103.0%)
(Cost $6,590,130) 7,093,036
Other Assets and Liabilities (-3.0%)
Other Assets
Investment in Vanguard 365
Receivables for Accrued Income 28,059
Receivables for Capital Shares Issued 5,431
Variation Margin Receivable—
Futures Contracts 1
Unrealized Appreciation—
Forward Currency Contracts 177
Other Assets8 6,194
Total Other Assets 40,227
Liabilities
Payables for Investment Securities
Purchased (1,377)
Collateral for Securities on Loan (242,460)
Payables for Capital Shares Redeemed (246)
Payables to Vanguard (1,528)
Variation Margin Payable—
Futures Contracts (275)
Unrealized Depreciation—
Forward Currency Contracts (596)
Other Liabilities (794)
Total Liabilities (247,276)
Net Assets (100%) 6,885,987
21
Global ex-U.S. Real Estate Index Fund
At April 30, 2018, net assets consisted of:
Amount
($000)
Paid-in Capital 6,488,912
Overdistributed Net Investment Income (10,392)
Accumulated Net Realized Losses (94,751)
Unrealized Appreciation (Depreciation)
Investment Securities 502,906
Futures Contracts 57
Forward Currency Contracts (419)
Foreign Currencies (326)
Net Assets 6,885,987
Investor Shares—Net Assets
Applicable to 2,487,461 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 60,913
Net Asset Value Per Share—
Investor Shares $24.49
ETF Shares—Net Assets
Applicable to 100,088,731 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 6,128,408
Net Asset Value Per Share—
ETF Shares $61.23
Admiral Shares—Net Assets
Applicable to 14,444,993 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 536,004
Net Asset Value Per Share—
Admiral Shares $37.11
Amount
($000)
Institutional Shares—Net Assets
Applicable to 1,299,609 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 160,662
Net Asset Value Per Share—
Institutional Shares $123.62
• See Note A in Notes to Financial Statements.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $230,685,000.
* Non-income-producing security.
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 3.0%, respectively, of net assets.
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, 2018, the aggregate value of these securities was $51,015,000, representing 0.7% of net assets.
3 Security value determined using significant unobservable inputs.
4 “Other” represents securities that are not classified by the fund’s benchmark index.
5 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
6 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
7 Includes $242,460,000 of collateral received for securities on loan.
8 Securities with a value of $2,047,000 and cash value of $187,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
GDR—Global Depositary Receipt.
NVDR—Non-Voting Depository Receipt.
REIT—Real Estate Investment Trust.
22
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
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
MSCI Emerging Market Index June 2018 388 22,353 (952)
Topix Index June 2018 97 15,774 684
E-mini S&P 500 Index June 2018 73 9,662 (26)
FTSE 100 Index June 2018 84 8,631 351
57
Unrealized appreciation (depreciation) on open futures contracts, except for Topix Index, is required
to be treated as realized gain (loss) for tax purposes. Unrealized appreciation (depreciation) for Topix
Index futures contracts is generally treated the same for financial reporting and tax purposes.
Forward Currency Contracts
Unrealized
Contract Appreciation
Settlement Contract Amount (000) (Depreciation)
Counterparty Date Receive Deliver ($000)
Goldman Sachs International 6/12/18 JPY 1,394,017 USD 13,196 (406)
Barclays Bank plc 6/12/18 JPY 137,520 USD 1,287 (25)
JPMorgan Chase Bank, N.A. 6/12/18 JPY 121,100 USD 1,138 (27)
Barclays Bank plc 6/20/18 GBP 4,351 USD 6,089 (84)
JPMorgan Chase Bank, N.A. 6/20/18 GBP 731 USD 1,024 (15)
Deutsche Bank AG 6/20/18 GBP 503 USD 718 (23)
Morgan Stanley Capital Services LLC 6/20/18 GBP 427 USD 605 (16)
Goldman Sachs International 6/12/18 USD 2,435 JPY 258,667 62
Barclays Bank plc 6/12/18 USD 2,431 JPY 258,667 58
Credit Suisse International 6/12/18 USD 2,430 JPY 258,667 57
(419)
GBP—British pound.
JPY—Japanese yen.
USD—U.S. dollar.
23
24
Six Months Ended
April 30, 2018
($000)
Investment Income
Income
Dividends—Unaffiliated Issuers1 146,749
Dividends—Affiliated Issuers 172
Interest—Unaffiliated Issuers 18
Interest—Affiliated Issuers 156
Securities Lending—Net 2,567
Total Income 149,662
Expenses
The Vanguard Group—Note B
Investment Advisory Services 830
Management and Administrative—Investor Shares 77
Management and Administrative—ETF Shares 2,182
Management and Administrative—Admiral Shares 205
Management and Administrative—Institutional Shares 55
Marketing and Distribution—Investor Shares 5
Marketing and Distribution—ETF Shares 169
Marketing and Distribution—Admiral Shares 17
Marketing and Distribution—Institutional Shares 2
Custodian Fees 756
Shareholders’ Reports and Proxy—Investor Shares 2
Shareholders’ Reports and Proxy—ETF Shares 252
Shareholders’ Reports and Proxy—Admiral Shares 2
Shareholders’ Reports and Proxy—Institutional Shares —
Trustees’ Fees and Expenses 2
Total Expenses 4,556
Net Investment Income 145,106
Realized Net Gain (Loss)
Investment Securities Sold—Unaffiliated Issuers 17,954
Investment Securities Sold—Affiliated Issuers 319
Futures Contracts 2,674
Forward Currency Contracts 369
Foreign Currencies 807
Realized Net Gain (Loss) 22,123
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers 205,009
Investment Securities—Affiliated Issuers (343)
Futures Contracts (448)
Forward Currency Contracts (419)
Foreign Currencies (247)
Change in Unrealized Appreciation (Depreciation) 203,552
Net Increase (Decrease) in Net Assets Resulting from Operations 370,781
1 Dividends are net of foreign withholding taxes of $8,900,000.
Statement of Operations
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Statement of Changes in Net Assets
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Six Months Ended Year Ended
April 30, October 31,
2018 2017
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 145,106 161,220
Realized Net Gain (Loss) 22,123 49,701
Change in Unrealized Appreciation (Depreciation) 203,552 489,291
Net Increase (Decrease) in Net Assets Resulting from Operations 370,781 700,212
Distributions
Net Investment Income
Investor Shares (1,745) (2,179)
ETF Shares (183,825) (142,965)
Admiral Shares (15,284) (14,861)
Institutional Shares (5,147) (6,531)
Realized Capital Gain
Investor Shares — —
ETF Shares — —
Admiral Shares — —
Institutional Shares — —
Total Distributions (206,001) (166,536)
Capital Share Transactions
Investor Shares 3,718 (10,258)
ETF Shares 861,082 1,045,850
Admiral Shares 70,299 33,006
Institutional Shares 350 (29,219)
Net Increase (Decrease) from Capital Share Transactions 935,449 1,039,379
Total Increase (Decrease) 1,100,229 1,573,055
Net Assets
Beginning of Period 5,785,758 4,212,703
End of Period1 6,885,987 5,785,758
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($10,392,000) and $45,146,000.
25
26
Investor Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014 2013
Net Asset Value, Beginning of Period $23.79 $21.35 $21.44 $22.63 $23.06 $21.04
Investment Operations
Net Investment Income .5221 .7111 .6551 .683 .944 .6851
Net Realized and Unrealized Gain (Loss)
on Investments2 .937 2.530 (.088) (1.103) (.443) 2.321
Total from Investment Operations 1.459 3.241 .567 (.420) .501 3.006
Distributions
Dividends from Net Investment Income (.759) (.801) (.657) (.770) (.931) (.986)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (.759) (.801) (.657) (.770) (.931) (.986)
Net Asset Value, End of Period $24.49 $23.79 $21.35 $21.44 $22.63 $23.06
Total Return3 6.23% 15.88% 2.72% -1.82% 2.41% 14.69%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $61 $56 $59 $58 $51 $156
Ratio of Total Expenses to
Average Net Assets 0.34% 0.34% 0.35% 0.36% 0.37% 0.40%
Ratio of Net Investment Income to
Average Net Assets 4.06% 3.24% 3.10% 2.97% 4.10% 2.95%
Portfolio Turnover Rate4 4% 6% 7% 12% 8% 8%
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.00, and $.02.
3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
ETF Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014 2013
Net Asset Value, Beginning of Period $59.49 $53.35 $53.58 $56.54 $57.64 $52.60
Investment Operations
Net Investment Income 1.3571 1.9001 1.7521 1.802 2.437 1.7131
Net Realized and Unrealized Gain (Loss)
on Investments2 2.341 6.325 (.241) (2.747) (1.120) 5.869
Total from Investment Operations 3.698 8.225 1.511 (.945) 1.317 7.582
Distributions
Dividends from Net Investment Income (1.958) (2.085) (1.741) (2.015) (2.417) (2.542)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (1.958) (2.085) (1.741) (2.015) (2.417) (2.542)
Net Asset Value, End of Period $61.23 $59.49 $53.35 $53.58 $56.54 $57.64
Total Return 6.32% 16.13% 2.92% -1.66% 2.51% 14.77%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $6,128 $5,122 $3,616 $3,111 $2,203 $1,306
Ratio of Total Expenses to
Average Net Assets 0.14% 0.14% 0.15% 0.18% 0.24% 0.27%
Ratio of Net Investment Income to
Average Net Assets 4.26% 3.44% 3.30% 3.15% 4.23% 3.08%
Portfolio Turnover Rate3 4% 6% 7% 12% 8% 8%
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.00, and $.02.
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.
Global ex-U.S. Real Estate Index Fund
27
Admiral Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014 2013
Net Asset Value, Beginning of Period $36.05 $32.33 $32.47 $34.27 $34.92 $31.87
Investment Operations
Net Investment Income .8221 1.1411 1.0581 1.090 1.466 1.0121
Net Realized and Unrealized Gain (Loss)
on Investments2 1.424 3.844 (.139) (1.673) (.661) 3.580
Total from Investment Operations 2.246 4.985 .919 (.583) .805 4.592
Distributions
Dividends from Net Investment Income (1.186) (1.265) (1.059) (1.217) (1.455) (1.542)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (1.186) (1.265) (1.059) (1.217) (1.455) (1.542)
Net Asset Value, End of Period $37.11 $36.05 $32.33 $32.47 $34.27 $34.92
Total Return3 6.33% 16.15% 2.91% -1.66% 2.55% 14.83%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $536 $453 $373 $349 $296 $117
Ratio of Total Expenses to
Average Net Assets 0.14% 0.14% 0.15% 0.18% 0.24% 0.27%
Ratio of Net Investment Income to
Average Net Assets 4.26% 3.44% 3.30% 3.15% 4.23% 3.08%
Portfolio Turnover Rate4 4% 6% 7% 12% 8% 8%
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.00, and $.01.
3 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
28
Institutional Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014 2013
Net Asset Value, Beginning of Period $120.11 $107.71 $108.17 $114.14 $116.37 $106.19
Investment Operations
Net Investment Income 2.7941 3.8891 3.5591 3.657 4.954 3.4071
Net Realized and Unrealized Gain (Loss)
on Investments2 4.680 12.741 (.483) (5.541) (2.273) 11.930
Total from Investment Operations 7.474 16.630 3.076 (1.884) 2.681 15.337
Distributions
Dividends from Net Investment Income (3.964) (4.230) (3.536) (4.086) (4.911) (5.157)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (3.964) (4.230) (3.536) (4.086) (4.911) (5.157)
Net Asset Value, End of Period $123.62 $120.11 $107.71 $108.17 $114.14 $116.37
Total Return3 6.32% 16.17% 2.93% -1.61% 2.55% 14.87%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $161 $156 $165 $167 $176 $92
Ratio of Total Expenses to
Average Net Assets 0.12% 0.12% 0.13% 0.16% 0.22% 0.24%
Ratio of Net Investment Income to
Average Net Assets 4.28% 3.46% 3.32% 3.17% 4.25% 3.11%
Portfolio Turnover Rate4 4% 6% 7% 12% 8% 8%
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase and redemption fees of $.00, $.00, $.01, $.00, $.00, and $.07.
3 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
29
Notes to Financial Statements
Global ex-U.S. Real Estate Index Fund
Vanguard Global ex-U.S. Real Estate Index Fund is registered under the Investment Company Act
of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign
issuers, which may subject it to investment risks not normally associated with investing in securities
of U.S. corporations. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral
Shares, and Institutional Shares. Investor Shares are available to any investor who meets the fund’s
minimum purchase requirements. ETF Shares are listed for trading on NYSE Arca; they can be
purchased and sold through a broker. Admiral Shares and Institutional Shares are designed for
investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles
for U.S. investment companies. The fund consistently follows such policies in preparing its financial
statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange
(generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted
sales prices or official closing prices taken from the primary market in which each security trades;
such securities not traded on the valuation date are valued at the mean of the latest quoted bid and
asked prices. Securities for which market quotations are not readily available, or whose values have
been affected by events occurring before the fund’s pricing time but after the close of the securities’
primary markets, are valued at their fair values calculated according to procedures adopted by the
board of trustees. These procedures include obtaining quotations from an independent pricing
service, monitoring news to identify significant market- or security-specific events, and evaluating
changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-
traded funds), between the time the foreign markets close and the fund’s pricing time. When
fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset
value may differ from quoted or published prices for the same securities. Investments in Vanguard
Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are
valued using the latest bid prices or using valuations based on a matrix system (which considers
such factors as security prices, yields, maturities, and ratings), both as furnished by independent
pricing services.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies
are translated into U.S. dollars using exchange rates obtained from an independent third party as
of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation
(depreciation) on investment securities include the effects of changes in exchange rates since the
securities were purchased, combined with the effects of changes in security prices. Fluctuations
in the value of other assets and liabilities resulting from changes in exchange rates are recorded as
unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which
time they are recorded as realized foreign currency gains (losses).
3. Futures and Forward Currency 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
30
Global ex-U.S. Real Estate Index Fund
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.
The fund also enters into forward currency contracts to provide the appropriate currency exposure
related to any open futures contracts. The fund’s risks in using these contracts include movement
in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties
to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering
into forward currency contracts only with a diverse group of prequalified counterparties, monitoring
their financial strength, entering into master netting arrangements with its counterparties, and
requiring its counterparties to transfer collateral as security for their performance. In the absence
of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypoth-
ecated. The master netting arrangements provide that, in the event of a counterparty’s default
(including bankruptcy), the fund may terminate the forward currency contracts, determine the net
amount owed by either party in accordance with its master netting arrangements, and sell or retain
any collateral held up to the net amount owed to the fund under the master netting arrangements.
The forward currency contracts contain provisions whereby a counterparty may terminate open
contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if
the fund is in a net liability position at the time of the termination. The payment amount would be
reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts
are noted in the Statement of Net Assets. The value of collateral received or pledged is compared
daily to the value of the forward currency contracts exposure with each counterparty, and any
difference, if in excess of a specified minimum transfer amount, is adjusted and settled within
two business days.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are
valued at their quoted daily prices obtained from an independent third party, adjusted for currency
risk based on the expiration date of each contract. The notional amounts of the contracts are not
recorded in the Statement of 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 gains
(losses) on futures or forward currency contracts.
During the six months ended April 30, 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. The fund’s average
investment in forward currency contracts represented less than 1% of net assets, based on
the average of the notional amounts at each quarter-end during the period.
4. 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 (October 31, 2014–2017), and for the period ended April 30, 2018,
and has concluded that no provision for federal income tax is required in the fund’s financial
statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
31
Global ex-U.S. Real Estate Index Fund
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional
borrowers. Security loans are subject to termination by the fund at any time, and are required to
be secured at all times by collateral in an amount at least equal to the market value of securities
loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than
the value of the collateral received. When this occurs, the collateral is adjusted and settled before
the opening of the market on the next business day. The fund further mitigates its counterparty
risk by entering into securities lending transactions only with a diverse group of prequalified
counterparties, monitoring their financial strength, and entering into master securities lending
agreements with its counterparties. The master securities lending agreements provide that, in
the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans
with that borrower, determine the net amount owed, and sell or retain the collateral up to the
net amount owed to the fund; however, such actions may be subject to legal proceedings. While
collateral mitigates counterparty risk, in the event of a default, the fund may experience delays
and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard
Market Liquidity Fund, and records a liability in the Statement of 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.
7. 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 April 30, 2018, or at any time during the period
then ended.
8. 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
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. Fees assessed on capital share
transactions are credited to paid-in capital.
Each class of shares has equal rights as to assets and earnings, except that each class separately
bears certain class-specific expenses related to maintenance of shareholder accounts (included in
Management and Administrative expenses), shareholder reporting, and the proxy. 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.
32
Global ex-U.S. Real Estate Index Fund
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 April 30, 2018, the fund had contributed to Vanguard capital in the amount of
$365,000, representing 0.01% of the fund’s net assets and 0.15% 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 April 30, 2018,
based on the inputs used to value them:
Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 293,012 6,524,662 9,214
Temporary Cash Investments 263,605 2,543 —
Futures Contract-Assets1 1 — —
Futures Contracts—Liabilities1 (275) — —
Forward Currency Contracts—Assets — 177 —
Forward Currency Contracts—Liabilities — (596) —
Total 556,343 6,526,786 9,214
1 Represents variation margin on the last day of the reporting period.
33
Global ex-U.S. Real Estate Index Fund
D. At April 30, 2018, the fair values of derivatives were reflected in the Statement of Net Assets
as follows:
Foreign
Equity Exchange
Contracts Contracts Total
Statement of Net Assets Caption ($000) ($000) ($000)
Variation Margin Receivable—Futures Contracts 1 — 1
Unrealized Appreciation—Forward Currency Contracts — 177 177
Total Assets 1 177 178
Variation Margin Payable—Futures Contracts (275) — (275)
Unrealized Depreciation—Forward Currency Contracts — (596) (596)
Total Liabilities (275) (596) (871)
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for
the six months ended April 30, 2018, were:
Foreign
Equity Exchange
Contracts Contracts Total
Realized Net Gain (Loss) on Derivatives ($000) ($000) ($000)
Futures Contracts 2,674 — 2,674
Forward Currency Contracts — 369 369
Realized Net Gain (Loss) on Derivatives 2,674 369 3,043
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts (448) — (448)
Forward Currency Contracts — (419) (419)
Change in Unrealized Appreciation (Depreciation) on Derivatives (448) (419) (867)
34
Global ex-U.S. Real Estate Index Fund
E. Distributions are determined on a tax basis and may differ from net investment income and
realized capital gains for financial reporting purposes. Differences may be permanent or temporary.
Permanent differences are reclassified among capital accounts in the financial statements to reflect
their tax character. Temporary differences arise when certain items of income, expense, gain, or
loss are recognized in different periods for financial statement and tax purposes. These differences
will reverse at some time in the future. Differences in classification may also result from the
treatment of short-term gains as ordinary income for tax purposes.
Certain of the fund’s investments are in securities considered to be passive foreign investment
companies, for which any unrealized appreciation and/or realized gains are required to be included
in distributable net investment income for tax purposes. During the six months ended April 30, 2018,
the fund realized gains on the sale of passive foreign investment companies of $4,550,000, which
have been included in current and prior periods’ taxable income; accordingly, such gains have been
reclassified from accumulated net realized losses to overdistributed net investment income.
Passive foreign investment companies had unrealized appreciation of $76,169,000 at April 30, 2018.
During the six months ended April 30, 2018, the fund realized $15,137,000 of net capital gains
resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities
held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not
distributed to shareholders, they have been reclassified from accumulated net realized losses to
paid-in capital.
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For
tax purposes, at October 31, 2017, the fund had available capital losses totaling $98,031,000 to offset
future net capital gains. Of this amount, $1,948,000 is subject to expiration on October 31, 2019.
Capital losses of $96,083,000 realized beginning in fiscal 2012 may be carried forward indefinitely
under the Regulated Investment Company Modernization Act of 2010, but must be used before
any expiring loss carryforwards. The fund will use these capital losses to offset net taxable capital
gains, if any, realized during the year ending October 31, 2018; should the fund realize net capital
losses for the year, the losses will be added to the loss carryforward balance above.
At April 30, 2018, the cost of investment securities for tax purposes was $6,666,299,000. Net
unrealized appreciation of investment securities for tax purposes was $426,737,000, consisting
of unrealized gains of $813,259,000 on securities that had risen in value since their purchase and
$386,522,000 in unrealized losses on securities that had fallen in value since their purchase.
F. During the six months ended April 30, 2018, the fund purchased $1,047,165,000 of investment
securities and sold $199,721,000 of investment securities, other than temporary cash investments.
Purchases and sales include $742,951,000 and $62,628,000, respectively, in connection with in-kind
purchases and redemptions of the fund’s capital shares.
35
Global ex-U.S. Real Estate Index Fund
G. Capital share transactions for each class of shares were:
Six Months Ended Year Ended
April 30, 2018 October 31, 2017
Amount Shares Amount Shares
($000) (000) ($000) (000)
Investor Shares (sample)
Issued1 8,293 340 9,645 443
Issued in Lieu of Cash Distributions 1,524 64 1,894 94
Redeemed2 (6,099) (251) (21,797) (968)
Net Increase (Decrease)—Investor Shares 3,718 153 (10,258) (431)
ETF Shares
Issued1 926,705 15,101 1,594,745 29,212
Issued in Lieu of Cash Distributions — — — —
Redeemed2 (65,623) (1,100) (548,895) (10,900)
Net Increase (Decrease)—ETF Shares 861,082 14,001 1,045,850 18,312
Admiral Shares
Issued1 90,628 2,430 96,042 2,884
Issued in Lieu of Cash Distributions 13,144 364 12,797 417
Redeemed2 (33,473) (911) (75,833) (2,272)
Net Increase (Decrease)—Admiral Shares 70,299 1,883 33,006 1,029
Institutional Shares
Issued1 5,766 48 35,925 321
Issued in Lieu of Cash Distributions 2,788 23 4,242 41
Redeemed2 (8,204) (68) (69,386) (595)
Net Increase (Decrease)—Institutional Shares 350 3 (29,219) (233)
1 Includes purchase fees for fiscal 2018 and 2017 of $242,000 and $495,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2018 and 2017 of $92,000 and $251,000, respectively (fund totals).
At April 30, 2018, one shareholder was the record or beneficial owner of 26% of the fund’s net
assets. If the shareholder were to redeem its investment in the fund, the redemption might result
in an increase in the fund’s expense ratio.
36
Global ex-U.S. Real Estate Index Fund
H. Certain of the fund’s investments are in companies that are considered to be affiliated companies
of the fund because the fund owns more than 5% of the outstanding voting securities of the company
or the issuer is another member of The Vanguard Group. Transactions during the period in securities
of these companies were as follows:
Current Period Transactions
Oct. 31, Proceeds Realized April 30,
2017 from Net Change in Capital Gain 2018
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 147,067 NA1 NA1 (7) 13 156 — 263,605
Vanguard Real
Estate ETF 7,908 31,823 28,545 326 (356) 172 — 11,156
Total 154,975 319 (343) 328 — 274,761
1 Not applicable—purchases and sales are for temporary cash investment purposes.
I. Management has determined that no material events or transactions occurred subsequent
to April 30, 2018, that would require recognition or disclosure in these financial statements.
37
About Your Fund’s Expenses
38
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 ongoingcosts 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 may
have been higher or lower, depending on the amount of your investment and the timing of any
purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the
Financial Statements section of this report. For additional information on operating expenses and
other shareholder costs, please refer to your fund’s current prospectus.
39
Six Months Ended April 30, 2018
Global ex-U.S. Real Estate Index Fund
Beginning
Account Value
10/31/2017
Ending
Account Value
4/30/2018
Expenses
Paid During
Period
Based on Actual Fund Return
Investor Shares $1,000.00 $1,062.25 $1.74
ETF Shares 1,000.00 1,063.19 0.72
Admiral Shares 1,000.00 1,063.28 0.72
Institutional Shares 1,000.00 1,063.19 0.61
Based on Hypothetical 5% Yearly Return
Investor Shares $1,000.00 $1,023.52 $1.71
ETF Shares 1,000.00 1,024.51 0.70
Admiral Shares 1,000.00 1,024.51 0.70
Institutional Shares 1,000.00 1,024.61 0.60
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 0.34% for Investor Shares, 0.14% for ETF Shares, 0.14% for Admiral Shares, and 0.12% for Institutional Shares. The dollaramounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period,multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-monthperiod (181/365).
The board of trustees of Vanguard Global ex-U.S. Real Estate Index Fund has renewed the fund’s
investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity
Index Group. The board determined that continuing the fund’s internalized management structure
was in the best interests of the fund and its shareholders.
The board based its decision upon an evaluation of the advisor’s investment staff, portfolio
management process, and performance. This evaluation included information provided to the
board by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor
oversight and product management. The Portfolio Review Department met regularly with the
advisor and made monthly presentations to the board during the fiscal year that directed the
board’s focus to relevant information and topics.
The board, or an investment committee made up of board members, also received information
throughout the year during advisor presentations. For each advisor presentation, the board was
provided with letters and reports that included information about, among other things, the advisory
firm and the advisor’s assessment of the investment environment, portfolio performance, and
portfolio characteristics.
In addition, the board received monthly reports, which included a Market and Economic Report,
a Fund Dashboard Monthly Summary, and a Fund Performance Report.
Prior to their meeting, the trustees were provided with a memo and materials that summarized the
information they received over the course of the year. They also considered the factors discussed
below, among others. However, no single factor determined whether the board approved the
arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.
Nature, extent, and quality of services
The board reviewed the quality of the investment management services provided to the fund
since its inception in 2010 and took into account the organizational depth and stability of the
advisor. The board considered that Vanguard has been managing investments for more than
three decades. The Equity Index Group adheres to a sound, disciplined investment management
process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’s experience, stability, depth, and performance, among
other factors, warranted continuation of the advisory arrangement.
Investment performance
The board considered the fund’s performance since its inception, including any periods of out-
performance or underperformance compared with its target index and peer group. The board
concluded that the performance was such that the advisory arrangement should continue.
Information about the fund’s most recent performance can be found in the Performance
Summary section of this report.
Trustees Approve Advisory Arrangement
40
Cost
The board concluded that the fund’s expense ratio was well below the average expense ratio
charged by funds in its peer group and that the fund’s advisory expenses were also below the
peer-group average. Information about the fund’s expenses appears in the About Your Fund’s
Expenses section of this report as well as in the Financial Statements section.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique
“at-cost” structure. Unlike most other mutual fund management companies, Vanguard is
owned by the funds it oversees and produces “profits” only in the form of reduced expenses
for fund shareholders.
The benefit of economies of scale
The board concluded that the fund’s at-cost arrangement with Vanguard ensures that the fund will
realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The board will consider whether to renew the advisory arrangement again after a one-year period.
41
Glossary
42
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups
and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given
index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12%
when the index rose or fell by 10%. For this report, beta is based on returns over the past 36
months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction
with its R-squared (see definition). The lower the R-squared, the less correlation there is between
the fund and the index, and the less reliable beta is as an indicator of volatility.
Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregate
market value (or of net asset value, for a fund). The yield is determined by dividing the amount of
the annual dividends by the aggregate value (or net asset value) at the end of the period. For a
fund, the dividend yield is based solely on stock holdings and does not include any income
produced by other investments. This yield may include some payments that represent a return of
capital, capital gains distributions, or both by the underlying stocks.
Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for
the stocks now in a fund.
Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any
holdings in short-term reserves are excluded.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s
average net assets. The expense ratio includes management and administrative expenses, but
does not include the transaction costs of buying and selling portfolio securities.
Fair-Value Pricing. Fair-value adjustments, which are required by the Securities and Exchange
Commission, address pricing discrepancies that may arise because of time-zone differences
among global stock markets. Foreign stocks may trade on exchanges that close many hours
before a fund’s closing share price is calculated in the United States, generally at 4 p.m., Eastern
time. In the hours between the foreign close and the U.S. close, the value of these foreign
securities may change—because of company-specific announcements or market-wide
developments, for example. Such price changes are not immediately reflected in international
index values. Fair-value pricing takes such changes into account in calculating the fund’s daily net
asset value, thus ensuring that the NAV doesn’t include “stale” prices. The result can be a
temporary divergence between the return of the fund and that of its benchmark index—a
difference that usually corrects itself when the foreign markets reopen.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first
invested in accordance with the fund’s investment objective. For funds with a subscription period,
the inception date is the day after that period ends. Investment performance is measured from
the inception date.
Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint
of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the
proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s
assets have market capitalizations above the median, and the rest are below it.
Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share.
For a fund, the weighted average price/book ratio of the stocks it holds.
43
Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past
year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market
expectations about corporate prospects; the higher the P/E, the greater the expectations for a
company’s future growth.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns
from the market in general, as measured by a given index. If a fund’s total returns were precisely
synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no
relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based
on returns over the past 36 months for both the fund and the index.
Return on Equity. The annual average rate of return generated by a company during the past five
years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a
fund, the weighted average return on equity for the companies whose stocks it holds.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities
that can be readily converted to cash.
Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur
higher transaction costs and may be more likely to distribute capital gains (which may be taxable
to investors). The turnover rate excludes in-kind transactions, which have minimal impact on
costs.
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 on an at-cost basis.
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
208 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
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
Chris D. McIsaac
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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