Financial Statements

For the six-months ended July 31, 2025

Vanguard Real Estate Index Funds

Vanguard Real Estate Index Fund

Vanguard Real Estate II Index Fund

Contents

Real Estate Index Fund	1
Real Estate II Index Fund	16

Real Estate Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of July 31, 2025

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

					Shares	Market Value• ($000)
Equity Real Estate Investment Trusts (REITs) (91.7%)
Data Center REITs (7.9%)
	Equinix Inc.				3,634,060	2,853,355
	Digital Realty Trust Inc.				12,510,559	2,207,363
						5,060,718
Diversified REITs (1.7%)
	WP Carey Inc.				8,135,066	521,946
	Essential Properties Realty Trust Inc.				7,281,706	222,019
	Broadstone Net Lease Inc.				7,022,302	114,042
	Global Net Lease Inc.				7,220,319	50,470
	Alexander & Baldwin Inc.				2,701,362	48,571
	American Assets Trust Inc.				1,818,859	34,613
	Gladstone Commercial Corp.				1,704,407	22,413
	Armada Hoffler Properties Inc.				2,970,708	20,290
	CTO Realty Growth Inc.				1,160,710	19,163
	One Liberty Properties Inc.				642,399	14,377
	NexPoint Diversified Real Estate Trust				1,301,241	5,712
						1,073,616
Health Care REITs (11.7%)
	Welltower Inc.				23,589,022	3,893,840
	Ventas Inc.				16,260,783	1,092,399
	Alexandria Real Estate Equities Inc.				5,787,046	442,304
	Healthpeak Properties Inc.				25,952,363	439,633
	Omega Healthcare Investors Inc.				10,469,971	407,282
	American Healthcare REIT Inc.				5,896,025	227,822
	CareTrust REIT Inc.				6,972,761	221,734
	Healthcare Realty Trust Inc. Class A				12,389,409	190,301
	Sabra Health Care REIT Inc.				8,839,545	159,377
	National Health Investors Inc.				1,734,318	121,160
1	Medical Properties Trust Inc.				15,147,455	62,408
	LTC Properties Inc.				1,704,538	58,023
1	Sila Realty Trust Inc.				2,060,943	50,369
	Diversified Healthcare Trust				6,287,209	20,559
	Universal Health Realty Income Trust				488,732	18,958
	Community Healthcare Trust Inc.				1,050,952	16,153
	Global Medical REIT Inc.				2,355,813	15,737
						7,438,059
Hotel & Resort REITs (1.7%)
	Host Hotels & Resorts Inc.				25,752,755	404,833
	Ryman Hospitality Properties Inc.				2,117,864	201,324
	Apple Hospitality REIT Inc.				8,428,809	99,038
	Park Hotels & Resorts Inc.				7,497,460	79,923
	Sunstone Hotel Investors Inc.				7,098,726	62,114
	DiamondRock Hospitality Co.				7,754,643	59,866
	Xenia Hotels & Resorts Inc.				3,768,653	47,900
	Pebblebrook Hotel Trust				4,409,451	44,227
	RLJ Lodging Trust				5,636,570	41,711
	Summit Hotel Properties Inc.				4,130,377	21,561
	Service Properties Trust				5,873,949	15,448
	Chatham Lodging Trust				1,726,264	11,773
						1,089,718
Industrial REITs (8.5%)
	Prologis Inc.				34,438,386	3,677,331
	Rexford Industrial Realty Inc.				8,775,286	320,561
	EastGroup Properties Inc.				1,941,832	316,985
	First Industrial Realty Trust Inc.				4,919,472	239,677
	STAG Industrial Inc.				6,934,292	238,054
	Terreno Realty Corp.				3,827,888	212,409
	Americold Realty Trust Inc.				10,049,645	161,598
1	Lineage Inc.				2,542,461	109,707

1

Real Estate Index Fund

					Shares	Market Value• ($000)
	LXP Industrial Trust				10,994,427	85,317
	Innovative Industrial Properties Inc.				1,052,263	54,402
	Plymouth Industrial REIT Inc.				1,520,424	22,077
						5,438,118
Multi-Family Residential REITs (6.7%)
	AvalonBay Communities Inc.				5,289,125	985,258
	Equity Residential				12,695,815	802,375
	Essex Property Trust Inc.				2,389,723	621,758
	Mid-America Apartment Communities Inc.				4,342,961	618,568
	UDR Inc.				11,688,391	459,237
	Camden Property Trust				3,966,042	433,092
	Independence Realty Trust Inc.				8,586,484	143,995
	Elme Communities				3,270,378	49,317
	Veris Residential Inc.				3,108,023	43,761
	Apartment Investment & Management Co. Class A				5,013,317	42,162
	Centerspace				622,064	33,859
	NexPoint Residential Trust Inc.				855,247	26,667
	BRT Apartments Corp.				422,945	6,154
						4,266,203
Office REITs (2.7%)
	BXP Inc.				5,512,330	360,672
	Vornado Realty Trust				6,062,448	232,919
	Cousins Properties Inc.				6,237,797	169,044
	Kilroy Realty Corp.				4,174,722	153,880
	SL Green Realty Corp.				2,637,955	151,023
	Highwoods Properties Inc.				4,004,524	116,171
	COPT Defense Properties				4,194,276	114,420
	Douglas Emmett Inc.				6,218,324	94,270
	JBG SMITH Properties				3,048,366	64,564
*	Paramount Group Inc.				6,926,154	42,388
	Empire State Realty Trust Inc. Class A				5,255,508	38,050
	Piedmont Realty Trust Inc.				4,627,111	34,981
	Easterly Government Properties Inc. Class A				1,525,819	33,568
*	Hudson Pacific Properties Inc.				12,589,188	30,844
	Brandywine Realty Trust				6,438,193	25,753
	Peakstone Realty Trust				1,363,393	18,542
*	NET Lease Office Properties				522,332	17,336
*,2	New York REIT Liquidating LLC				1,208	3
						1,698,428
Other (14.4%)3
4,5	Vanguard Real Estate II Index Fund				428,915,780	9,195,955
Other Specialized REITs (5.8%)
	VICI Properties Inc. Class A				35,772,341	1,166,178
	Iron Mountain Inc.				10,912,874	1,062,478
	Gaming & Leisure Properties Inc.				10,210,284	465,385
	Lamar Advertising Co. Class A				3,238,121	395,860
	EPR Properties				2,825,875	155,536
	Millrose Properties Inc.				4,583,728	137,466
	Four Corners Property Trust Inc.				3,712,454	93,702
	Outfront Media Inc.				5,271,943	92,417
*	Uniti Group Inc.				9,073,969	48,274
	Safehold Inc.				1,736,776	24,298
	Farmland Partners Inc.				1,622,941	16,992
	Gladstone Land Corp.				1,275,358	11,733
						3,670,319
Retail REITs (11.2%)
	Simon Property Group Inc.				12,120,335	1,985,190
	Realty Income Corp.				33,130,172	1,859,597
	Kimco Realty Corp.				25,244,089	535,932
	Regency Centers Corp.				6,406,397	457,417
	Brixmor Property Group Inc.				11,370,898	297,122
	NNN REIT Inc.				6,986,348	288,257
	Agree Realty Corp.				3,987,815	285,926
	Federal Realty Investment Trust				3,027,564	279,020
	Kite Realty Group Trust				8,167,948	179,531
	Phillips Edison & Co. Inc.				4,658,276	157,403
	Macerich Co.				9,381,572	156,766

2

Real Estate Index Fund

					Shares	Market Value• ($000)
	Tanger Inc.				4,206,302	126,273
	Urban Edge Properties				4,669,686	92,086
	Acadia Realty Trust				4,447,576	83,259
1	InvenTrust Properties Corp.				2,876,121	79,295
	Curbline Properties Corp.				3,516,056	77,705
1	NETSTREIT Corp.				3,035,549	55,338
	Getty Realty Corp.				1,942,034	53,969
	Alexander's Inc.				85,235	21,410
	Whitestone REIT				1,604,980	19,565
	SITE Centers Corp.				1,751,415	18,863
	Saul Centers Inc.				495,739	15,973
	CBL & Associates Properties Inc.				573,745	15,525
*,2	Spirit MTA REIT				2,071,263	186
						7,141,608
Self-Storage REITs (4.8%)
	Public Storage				5,865,271	1,595,002
	Extra Space Storage Inc.				7,884,532	1,059,366
	CubeSmart				8,365,974	325,520
	National Storage Affiliates Trust				2,696,814	79,448
						3,059,336
Single-Family Residential REITs (3.4%)
	Invitation Homes Inc.				21,630,677	662,980
	Sun Communities Inc.				4,740,079	587,912
	American Homes 4 Rent Class A				12,355,108	428,599
	Equity LifeStyle Properties Inc.				6,745,769	404,206
	UMH Properties Inc.				2,914,737	47,452
						2,131,149
Telecom Tower REITs (9.8%)
	American Tower Corp.				17,391,038	3,624,119
	Crown Castle Inc.				16,176,857	1,700,026
	SBA Communications Corp.				4,013,320	901,873
						6,226,018
Timber REITs (1.4%)
	Weyerhaeuser Co.				26,966,550	675,512
	Rayonier Inc.				5,508,441	128,402
	PotlatchDeltic Corp.				2,778,581	113,616
						917,530
Total Equity Real Estate Investment Trusts (REITs) (Cost $56,827,297)						58,406,775
Real Estate Management & Development (7.9%)
Diversified Real Estate Activities (0.1%)
	St. Joe Co.				1,405,569	70,981
*	Tejon Ranch Co.				748,608	13,445
	RMR Group Inc. Class A				587,409	9,434
						93,860
Real Estate Development (0.2%)
*	Howard Hughes Holdings Inc.				1,214,424	83,467
*	Forestar Group Inc.				752,085	18,652
						102,119
Real Estate Operating Companies (0.1%)
1	Landbridge Co. LLC Class A				648,133	36,736
	Kennedy-Wilson Holdings Inc.				4,107,355	30,066
*,1	Seritage Growth Properties Class A				1,248,897	3,984
						70,786
Real Estate Services (7.5%)
*	CBRE Group Inc. Class A				11,140,239	1,734,981
*	CoStar Group Inc.				15,594,163	1,484,408
*	Zillow Group Inc. Class C				6,049,843	481,265
*	Jones Lang LaSalle Inc.				1,765,057	477,201
*	Zillow Group Inc. Class A				2,056,063	157,803
*	Compass Inc. Class A				17,000,525	134,984
*	Cushman & Wakefield plc				8,588,944	104,699
	Newmark Group Inc. Class A				5,320,856	80,718
*,1	Opendoor Technologies Inc.				18,178,271	33,448
	Marcus & Millichap Inc.				948,022	29,540
1	eXp World Holdings Inc.				2,256,805	24,328

3

Real Estate Index Fund

					Shares	Market Value• ($000)
*	Anywhere Real Estate Inc.				3,530,690	16,312
						4,759,687
Total Real Estate Management & Development (Cost $4,115,924)						5,026,452
Temporary Cash Investments (0.6%)
Money Market Fund (0.6%)
6,7	Vanguard Market Liquidity Fund, 4.367% (Cost $413,992)				4,140,612	414,020
Total Investments (100.2%) (Cost $61,357,213)						63,847,247
Other Assets and Liabilities—Net (-0.2%)						(151,157)
Net Assets (100%)						63,696,090

Cost is in $000.

•	See Note A in Notes to Financial Statements.

*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $150,784.
2	Security value determined using significant unobservable inputs.
3	“Other” represents securities that are not classified by the fund’s benchmark index.
4	Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
5	Represents a wholly owned fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments.
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	Collateral of $183,155 was received for securities on loan.

REIT—Real Estate Investment Trust.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)1 (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
BXP Inc.	8/31/26	BANA	5,060	(4.338)	—	(98)
CoStar Group Inc.	8/31/26	BANA	6,030	(4.338)	1,087	—
CubeSmart	1/30/26	GSI	5,775	(4.338)	—	(338)
eXp World Holdings Inc.	1/30/26	GSI	5,704	(4.338)	398	—
Lamar Advertising Co. Class A	1/30/26	GSI	4,324	(4.338)	—	(53)
Medical Properties Trust Inc.	1/30/26	GSI	15,507	(4.338)	162	—
Opendoor Technologies Inc.	1/30/26	GSI	4,834	(4.338)	3,710	—
VICI Properties Inc. Class A	8/29/25	BANA	110,840	(5.088)	1,000	—
VICI Properties Inc. Class A	8/31/26	BANA	2,797	(4.982)	—	(29)
Welltower Inc.	8/29/25	BANA	76,865	(4.488)	5,383	—
					11,740	(518)

1	Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly.
	BANA—Bank of America, N.A.
	GSI—Goldman Sachs International.

At July 31, 2025, the counterparties had deposited in segregated accounts securities with a value of $13,880 in connection with open over-the-counter swap contracts.

See accompanying Notes, which are an integral part of the Financial Statements.

4

Real Estate Index Fund

Statement of Assets and Liabilities

As of July 31, 2025

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $52,887,049)	54,237,272
Affiliated Issuers (Cost $413,992)	414,020
Vanguard Real Estate II Index Fund (Cost $8,056,172)	9,195,955
Total Investments in Securities	63,847,247
Investment in Vanguard	1,365
Receivables for Investment Securities Sold	4,524
Receivables for Accrued Income	12,409
Receivables for Capital Shares Issued	20,104
Unrealized Appreciation—Over-the-Counter Swap Contracts	11,740
Total Assets	63,897,389
Liabilities
Due to Custodian	1,456
Payables for Investment Securities Purchased	501
Collateral for Securities on Loan	183,155
Payables for Capital Shares Redeemed	12,476
Payables to Vanguard	3,193
Unrealized Depreciation—Over-the-Counter Swap Contracts	518
Total Liabilities	201,299
Net Assets	63,696,090
1 Includes $150,784 of securities on loan.
At July 31, 2025, net assets consisted of:
Paid-in Capital	66,085,173
Total Distributable Earnings (Loss)	(2,389,083)
Net Assets	63,696,090
Investor Shares—Net Assets
Applicable to 2,474,271 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	73,301
Net Asset Value Per Share—Investor Shares	$29.63
ETF Shares—Net Assets
Applicable to 375,373,697 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	33,460,133
Net Asset Value Per Share—ETF Shares	$89.14
Admiral™ Shares—Net Assets
Applicable to 159,522,062 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	20,152,826
Net Asset Value Per Share—Admiral Shares	$126.33
Institutional Shares—Net Assets
Applicable to 511,934,964 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	10,009,830
Net Asset Value Per Share—Institutional Shares	$19.55

See accompanying Notes, which are an integral part of the Financial Statements.

5

Real Estate Index Fund

Statement of Operations

	Six Months Ended July 31, 2025
	($000)
Investment Income
Income
Dividends—Unaffiliated Issuers	831,456
Dividends—Vanguard Real Estate II Index Fund	178,728
Interest—Unaffiliated Issuers	101
Interest—Affiliated Issuers	3,814
Securities Lending—Net	638
Total Income	1,014,737
Expenses
The Vanguard Group—Note B
Investment Advisory Services	632
Management and Administrative—Investor Shares	93
Management and Administrative—ETF Shares	17,375
Management and Administrative—Admiral Shares	10,731
Management and Administrative—Institutional Shares	4,269
Marketing and Distribution—Investor Shares	1
Marketing and Distribution—ETF Shares	644
Marketing and Distribution—Admiral Shares	465
Marketing and Distribution—Institutional Shares	149
Custodian Fees	25
Shareholders’ Reports and Proxy Fees—Investor Shares	1
Shareholders’ Reports and Proxy Fees—ETF Shares	979
Shareholders’ Reports and Proxy Fees—Admiral Shares	156
Shareholders’ Reports and Proxy Fees—Institutional Shares	213
Trustees’ Fees and Expenses	18
Other Expenses	29
Total Expenses	35,780
Net Investment Income	978,957
Realized Net Gain (Loss)
Capital Gain Distributions Received—Unaffiliated Issuers	105,030
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund	—
Investment Securities Sold—Unaffiliated Issuers1	271,094
Investment Securities Sold—Affiliated Issuers	5
Investment Securities Sold—Vanguard Real Estate II Index Fund	—
Swap Contracts	17,128
Realized Net Gain (Loss)	393,257
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers	(1,036,835)
Investment Securities—Affiliated Issuers	—
Investment Securities—Vanguard Real Estate II Index Fund	(142,637)
Swap Contracts	6,517
Change in Unrealized Appreciation (Depreciation)	(1,172,955)
Net Increase (Decrease) in Net Assets Resulting from Operations	199,259

1	Includes $1,010,084 of net gain (loss) resulting from in-kind redemptions.

See accompanying Notes, which are an integral part of the Financial Statements.

6

Real Estate Index Fund

Statement of Changes in Net Assets

	Six Months Ended July 31, 2025		Year Ended January 31, 2025
	($000)		($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	978,957		1,819,064
Realized Net Gain (Loss)	393,257		931,611
Change in Unrealized Appreciation (Depreciation)	(1,172,955)		4,771,314
Net Increase (Decrease) in Net Assets Resulting from Operations	199,259		7,521,989
Distributions
Net Investment Income and/or Realized Capital Gains
Investor Shares	(1,455)		(2,305)
ETF Shares	(684,383)		(1,010,254)
Admiral Shares	(405,013)		(601,430)
Institutional Shares	(201,614)		(303,772)
Return of Capital
Investor Shares	—		(723)
ETF Shares	—		(317,245)
Admiral Shares	—		(188,864)
Institutional Shares	—		(95,392)
Total Distributions	(1,292,465)		(2,519,985)
Capital Share Transactions
Investor Shares	(4,909)		(13,347)
ETF Shares	(1,069,919)		217,195
Admiral Shares	(27,843)		(947,161)
Institutional Shares	46,179		(621,858)
Net Increase (Decrease) from Capital Share Transactions	(1,056,492)		(1,365,171)
Total Increase (Decrease)	(2,149,698)		3,636,833
Net Assets
Beginning of Period	65,845,788		62,208,955
End of Period	63,696,090		65,845,788

See accompanying Notes, which are an integral part of the Financial Statements.

7

Real Estate Index Fund

Financial Highlights

Investor Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2025	Year Ended January 31,
		2025	2024	2023	2022	2021
Net Asset Value, Beginning of Period	$30.11	$27.89	$30.26	$35.37	$28.23	$31.21
Investment Operations
Net Investment Income1	.431	.774	.787	.684	.602	.586
Net Realized and Unrealized Gain (Loss) on Investments	(.335)	2.544	(2.036)	(4.766)	7.475	(2.498)
Total from Investment Operations	.096	3.318	(1.249)	(4.082)	8.077	(1.912)
Distributions
Dividends from Net Investment Income	(.576)	(.836)	(.833)	(.686)	(.620)	(.624)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Return of Capital	—	(.262)	(.288)	(.342)	(.317)	(.444)
Total Distributions	(.576)	(1.098)	(1.121)	(1.028)	(.937)	(1.068)
Net Asset Value, End of Period	$29.63	$30.11	$27.89	$30.26	$35.37	$28.23
Total Return2	0.33%	12.07%	-3.91%	-11.39%	28.73%	-5.88%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$73	$79	$86	$127	$196	$188
Ratio of Total Expenses to Average Net Assets	0.26%	0.26%	0.26%	0.26%3	0.26%	0.26%
Acquired Fund Fees and Expenses4	0.01%	0.01%	0.01%	—	—	—
Ratio of Net Investment Income to Average Net Assets	2.88%	2.62%	2.87%	2.18%	1.77%	2.18%
Portfolio Turnover Rate5	4%	7%	9%	7%	7%	8%
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.25%.
4	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
5	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

8

Real Estate Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2025	Year Ended January 31,
		2025	2024	2023	2022	2021
Net Asset Value, Beginning of Period	$90.61	$83.94	$91.06	$106.44	$84.96	$93.93
Investment Operations
Net Investment Income1	1.362	2.473	2.527	2.240	1.960	1.889
Net Realized and Unrealized Gain (Loss) on Investments	(1.032)	7.631	(6.154)	(14.394)	22.486	(7.525)
Total from Investment Operations	.330	10.104	(3.627)	(12.154)	24.446	(5.636)
Distributions
Dividends from Net Investment Income	(1.800)	(2.613)	(2.595)	(2.152)	(1.943)	(1.947)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Return of Capital	—	(.821)	(.898)	(1.074)	(1.023)	(1.387)
Total Distributions	(1.800)	(3.434)	(3.493)	(3.226)	(2.966)	(3.334)
Net Asset Value, End of Period	$89.14	$90.61	$83.94	$91.06	$106.44	$84.96
Total Return	0.38%	12.22%	-3.81%	-11.25%	28.88%	-5.80%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$33,460	$35,127	$32,359	$36,825	$46,673	$32,064
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%	0.12%2	0.12%	0.12%
Acquired Fund Fees and Expenses3	0.01%	0.01%	0.01%	—	—	—
Ratio of Net Investment Income to Average Net Assets	3.03%	2.78%	3.07%	2.38%	1.90%	2.33%
Portfolio Turnover Rate4	4%	7%	9%	7%	7%	8%
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%.
3	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

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Real Estate Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2025	Year Ended January 31,
		2025	2024	2023	2022	2021
Net Asset Value, Beginning of Period	$128.41	$118.96	$129.05	$150.85	$120.40	$133.12
Investment Operations
Net Investment Income1	1.927	3.495	3.613	3.201	2.761	2.677
Net Realized and Unrealized Gain (Loss) on Investments	(1.456)	10.820	(8.752)	(20.428)	31.890	(10.672)
Total from Investment Operations	.471	14.315	(5.139)	(17.227)	34.651	(7.995)
Distributions
Dividends from Net Investment Income	(2.551)	(3.702)	(3.678)	(3.050)	(2.770)	(2.759)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Return of Capital	—	(1.163)	(1.273)	(1.523)	(1.431)	(1.966)
Total Distributions	(2.551)	(4.865)	(4.951)	(4.573)	(4.201)	(4.725)
Net Asset Value, End of Period	$126.33	$128.41	$118.96	$129.05	$150.85	$120.40
Total Return2	0.38%	12.22%	-3.75%	-11.26%	28.91%	-5.74%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$20,153	$20,511	$19,879	$22,110	$25,764	$19,702
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%	0.12%3	0.12%	0.12%
Acquired Fund Fees and Expenses4	0.01%	0.01%	0.01%	—	—	—
Ratio of Net Investment Income to Average Net Assets	3.02%	2.77%	3.10%	2.41%	1.90%	2.33%
Portfolio Turnover Rate5	4%	7%	9%	7%	7%	8%
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%.
4	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
5	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

10

Real Estate Index Fund

Financial Highlights

Institutional Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2025	Year Ended January 31,
		2025	2024	2023	2022	2021
Net Asset Value, Beginning of Period	$19.88	$18.41	$19.97	$23.35	$18.64	$20.60
Investment Operations
Net Investment Income1	.300	.542	.565	.500	.432	.421
Net Realized and Unrealized Gain (Loss) on Investments	(.233)	1.685	(1.355)	(3.168)	4.933	(1.646)
Total from Investment Operations	.067	2.227	(.790)	(2.668)	5.365	(1.225)
Distributions
Dividends from Net Investment Income	(.397)	(.576)	(.572)	(.475)	(.432)	(.429)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Return of Capital	—	(.181)	(.198)	(.237)	(.223)	(.306)
Total Distributions	(.397)	(.757)	(.770)	(.712)	(.655)	(.735)
Net Asset Value, End of Period	$19.55	$19.88	$18.41	$19.97	$23.35	$18.64
Total Return	0.35%	12.28%	-3.73%	-11.27%	28.91%	-5.68%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$10,010	$10,128	$9,885	$10,610	$12,089	$9,478
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%2	0.10%	0.10%
Acquired Fund Fees and Expenses3	0.01%	0.01%	0.01%	—	—	—
Ratio of Net Investment Income to Average Net Assets	3.05%	2.78%	3.13%	2.43%	1.92%	2.37%
Portfolio Turnover Rate4	4%	7%	9%	7%	7%	8%
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

11

Real Estate Index Fund

Notes to Financial Statements

Vanguard Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.

As a part of its principal investment strategy, the fund attempts to replicate its benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through a wholly owned subsidiary—in the stocks that make up the index. Vanguard Real Estate II Index Fund (“the Subsidiary”) is the wholly owned subsidiary in which the fund has invested a portion of its assets. Expenses of the Subsidiary are reflected in the Acquired Fund Fees and Expenses in the Financial Highlights. For additional financial information about the Subsidiary, refer to the accompanying financial statements.

A.  The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.

Investments in affiliated Vanguard funds are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the six months ended July 31, 2025, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the

12

Real Estate Index Fund

securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the six months ended July 31, 2025, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management’s estimates of such amounts for REIT distributions for which actual information has not been reported. Income, capital gain, and return of capital distributions received from affiliated Vanguard funds are recorded on ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses), shareholder reporting, and proxy fees. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B.  In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2025, the fund had contributed to Vanguard capital in the amount of $1,365,000, representing less than 0.01% of the fund’s net assets and 0.55% of Vanguard’s capital received pursuant to the FSA. 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 and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.

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Real Estate Index Fund

The following table summarizes the market value of the fund's investments and derivatives as of July 31, 2025, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	63,433,038	—	189	63,433,227
Temporary Cash Investments	414,020	—	—	414,020
Total	63,847,058	—	189	63,847,247
Derivative Financial Instruments
Assets
Swap Contracts	—	11,740	—	11,740
Liabilities
Swap Contracts	—	(518)	—	(518)

D.  As of July 31, 2025, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	61,734,768
Gross Unrealized Appreciation	9,252,647
Gross Unrealized Depreciation	(7,128,946)
Net Unrealized Appreciation (Depreciation)	2,123,701

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2025, the fund had available capital losses totaling $4,736,972,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2026; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E.  During the six months ended July 31, 2025, the fund purchased $2,260,146,000 of investment securities and sold $2,270,236,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $2,464,170,000 and $3,584,818,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2025, such purchases were $84,879,000 and sales were $2,770,000, resulting in net realized loss of $51,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.  Capital share transactions for each class of shares were:

	Six Months Ended July 31, 2025			Year Ended January 31, 2025
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
Investor Shares
Issued	3,662	123		7,055	239
Issued in Lieu of Cash Distributions	1,455	49		3,028	104
Redeemed	(10,026)	(336)		(23,430)	(805)
Net Increase (Decrease)—Investor Shares	(4,909)	(164)		(13,347)	(462)
ETF Shares
Issued	2,518,451	27,891		6,074,790	68,377
Issued in Lieu of Cash Distributions	—	—		—	—
Redeemed	(3,588,370)	(40,200)		(5,857,595)	(66,200)
Net Increase (Decrease)—ETF Shares	(1,069,919)	(12,309)		217,195	2,177
Admiral Shares
Issued	1,213,504	9,559		2,272,459	18,159
Issued in Lieu of Cash Distributions	357,725	2,836		699,132	5,607
Redeemed	(1,599,072)	(12,599)		(3,918,752)	(31,144)
Net Increase (Decrease)—Admiral Shares	(27,843)	(204)		(947,161)	(7,378)

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Real Estate Index Fund

	Six Months Ended July 31, 2025			Year Ended January 31, 2025
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
Institutional Shares
Issued	796,141	40,410		1,697,501	88,687
Issued in Lieu of Cash Distributions	195,298	10,003		383,313	19,892
Redeemed	(945,260)	(48,073)		(2,702,672)	(135,862)
Net Increase (Decrease)—Institutional Shares	46,179	2,340		(621,858)	(27,283)

G.  Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows:

		Current Period Transactions
	Jan. 31, 2025 Market Value ($000)	Purchases at Cost ($000)	Proceeds from Securities Sold1 ($000)	Realized Net Gain (Loss) ($000)	Change in Unrealized App. (Dep.) ($000)	Income ($000)	Capital Gain Distributions Received ($000)	Jul. 31, 2025 Market Value ($000)
Vanguard Market Liquidity Fund	403,298	NA2	NA2	5	—	3,814	—	414,020
Vanguard Real Estate II Index Fund	9,159,864	178,728	—	—	(142,637)	178,728	—	9,195,955
Total	9,563,162	178,728	—	5	(142,637)	182,542	—	9,609,975

1	Does not include adjustments related to return of capital.
2	Not applicable—purchases and sales are for temporary cash investment purposes.

H.  Significant market disruptions, such as those caused by pandemics, natural or environmental ‎disasters, war, acts of terrorism, political or regulatory conditions, or other events, can adversely affect local and global ‎markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance.

To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.

The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.

I.  Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.

J.  Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would require recognition or disclosure in these financial statements.

15

Real Estate II Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of July 31, 2025

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

					Shares	Market Value• ($000)
Equity Real Estate Investment Trusts (REITs) (90.3%)
Data Center REITs (9.3%)
	Equinix Inc.				633,029	497,036
	Digital Realty Trust Inc.				2,179,285	384,513
						881,549
Diversified REITs (2.0%)
	WP Carey Inc.				1,417,435	90,943
	Essential Properties Realty Trust Inc.				1,267,845	38,657
	Broadstone Net Lease Inc.				1,224,639	19,888
	Global Net Lease Inc.				1,252,383	8,754
	Alexander & Baldwin Inc.				469,132	8,435
	American Assets Trust Inc.				318,094	6,053
	Gladstone Commercial Corp.				296,834	3,903
	Armada Hoffler Properties Inc.				522,387	3,568
	CTO Realty Growth Inc.				202,590	3,345
	One Liberty Properties Inc.				111,637	2,498
	NexPoint Diversified Real Estate Trust				229,324	1,007
						187,051
Health Care REITs (13.8%)
	Welltower Inc.				4,196,381	692,697
	Ventas Inc.				2,832,726	190,303
	Alexandria Real Estate Equities Inc.				1,008,135	77,052
	Healthpeak Properties Inc.				4,519,678	76,563
	Omega Healthcare Investors Inc.				1,823,251	70,924
	American Healthcare REIT Inc.				1,027,192	39,691
	CareTrust REIT Inc.				1,214,048	38,607
	Healthcare Realty Trust Inc. Class A				2,158,322	33,152
	Sabra Health Care REIT Inc.				1,538,687	27,742
	National Health Investors Inc.				302,039	21,100
1	Medical Properties Trust Inc.				3,298,509	13,590
	LTC Properties Inc.				296,742	10,101
1	Sila Realty Trust Inc.				358,138	8,753
	Diversified Healthcare Trust				1,090,016	3,564
	Universal Health Realty Income Trust				84,670	3,284
	Community Healthcare Trust Inc.				184,840	2,841
	Global Medical REIT Inc.				418,351	2,795
						1,312,759
Hotel & Resort REITs (2.0%)
	Host Hotels & Resorts Inc.				4,484,573	70,497
	Ryman Hospitality Properties Inc.				368,689	35,048
	Apple Hospitality REIT Inc.				1,466,232	17,228
	Sunstone Hotel Investors Inc.				1,236,734	10,821
	DiamondRock Hospitality Co.				1,350,694	10,427
	Park Hotels & Resorts Inc.				903,098	9,627
	Xenia Hotels & Resorts Inc.				655,988	8,338
	Pebblebrook Hotel Trust				766,062	7,684
	RLJ Lodging Trust				977,273	7,232
	Summit Hotel Properties Inc.				728,838	3,805
	Service Properties Trust				1,023,869	2,693
	Chatham Lodging Trust				303,144	2,067
						185,467
Industrial REITs (10.0%)
	Prologis Inc.				5,998,903	640,563
	Rexford Industrial Realty Inc.				1,527,595	55,803
	EastGroup Properties Inc.				338,163	55,202
	First Industrial Realty Trust Inc.				856,295	41,719
	STAG Industrial Inc.				1,208,428	41,485
	Terreno Realty Corp.				666,256	36,970
	Americold Realty Trust Inc.				1,749,154	28,126
	Lineage Inc.				442,875	19,110

16

Real Estate II Index Fund

					Shares	Market Value• ($000)
	LXP Industrial Trust				1,920,869	14,906
	Innovative Industrial Properties Inc.				183,134	9,468
	Plymouth Industrial REIT Inc.				268,853	3,904
						947,256
Multi-Family Residential REITs (7.6%)
	AvalonBay Communities Inc.				921,516	171,660
	Equity Residential				2,211,890	139,791
	Essex Property Trust Inc.				416,378	108,333
	Mid-America Apartment Communities Inc.				614,704	87,552
	UDR Inc.				2,035,881	79,990
	Camden Property Trust				690,858	75,442
	Independence Realty Trust Inc.				1,495,108	25,073
	Elme Communities				568,407	8,572
	Veris Residential Inc.				541,156	7,619
	Apartment Investment & Management Co. Class A				870,933	7,325
	Centerspace				107,984	5,878
	NexPoint Residential Trust Inc.				149,420	4,659
	BRT Apartments Corp.				73,017	1,062
						722,956
Office REITs (3.1%)
	BXP Inc.				972,922	63,658
	Vornado Realty Trust				1,055,363	40,547
	Cousins Properties Inc.				1,086,132	29,434
	Kilroy Realty Corp.				726,299	26,771
	SL Green Realty Corp.				459,083	26,283
	Highwoods Properties Inc.				697,341	20,230
	COPT Defense Properties				730,041	19,916
	Douglas Emmett Inc.				1,082,513	16,411
	JBG SMITH Properties				531,213	11,251
*	Paramount Group Inc.				1,205,439	7,377
	Empire State Realty Trust Inc. Class A				914,492	6,621
	Piedmont Realty Trust Inc.				806,943	6,101
	Easterly Government Properties Inc. Class A				267,133	5,877
*	Hudson Pacific Properties Inc.				2,194,890	5,378
	Brandywine Realty Trust				1,136,369	4,545
	Peakstone Realty Trust				239,914	3,263
*	NET Lease Office Properties				90,882	3,016
						296,679
Other Specialized REITs (6.9%)
	VICI Properties Inc. Class A				6,839,033	222,953
	Iron Mountain Inc.				1,900,995	185,081
	Gaming & Leisure Properties Inc.				1,778,301	81,055
	Lamar Advertising Co. Class A				569,994	69,682
	EPR Properties				491,933	27,076
	Millrose Properties Inc.				798,078	23,934
	Four Corners Property Trust Inc.				646,523	16,318
	Outfront Media Inc.				920,978	16,145
*	Uniti Group Inc.				1,578,830	8,399
	Safehold Inc.				300,529	4,204
	Farmland Partners Inc.				282,032	2,953
	Gladstone Land Corp.				224,926	2,069
						659,869
Retail REITs (13.1%)
	Simon Property Group Inc.				2,111,329	345,815
	Realty Income Corp.				5,771,182	323,936
	Kimco Realty Corp.				4,396,541	93,339
	Regency Centers Corp.				1,116,566	79,723
	Brixmor Property Group Inc.				1,979,924	51,735
	NNN REIT Inc.				1,216,446	50,190
	Agree Realty Corp.				694,788	49,816
	Federal Realty Investment Trust				527,666	48,630
	Kite Realty Group Trust				1,421,646	31,248
	Phillips Edison & Co. Inc.				811,027	27,405
	Macerich Co.				1,632,650	27,282
	Tanger Inc.				732,227	21,981
	Urban Edge Properties				812,478	16,022
	Acadia Realty Trust				775,691	14,521
	InvenTrust Properties Corp.				500,452	13,797

17

Real Estate II Index Fund

					Shares	Market Value• ($000)
	Curbline Properties Corp.				612,989	13,547
	NETSTREIT Corp.				527,843	9,623
	Getty Realty Corp.				337,722	9,385
	Alexander's Inc.				14,957	3,757
	Whitestone REIT				279,136	3,403
	SITE Centers Corp.				304,576	3,280
	Saul Centers Inc.				85,257	2,747
	CBL & Associates Properties Inc.				100,069	2,708
*,2	Spirit MTA REIT				257,871	23
						1,243,913
Self-Storage REITs (5.6%)
	Public Storage				1,021,735	277,850
	Extra Space Storage Inc.				1,373,506	184,544
	CubeSmart				1,480,973	57,625
	National Storage Affiliates Trust				469,921	13,844
						533,863
Single-Family Residential REITs (3.8%)
	Invitation Homes Inc.				3,768,509	115,505
	Sun Communities Inc.				750,554	93,091
	American Homes 4 Rent Class A				2,151,851	74,648
	Equity LifeStyle Properties Inc.				1,174,899	70,400
	UMH Properties Inc.				506,016	8,238
						361,882
Telecom Tower REITs (11.4%)
	American Tower Corp.				3,029,316	631,279
	Crown Castle Inc.				2,817,715	296,114
	SBA Communications Corp.				699,174	157,118
						1,084,511
Timber REITs (1.7%)
	Weyerhaeuser Co.				4,697,700	117,677
	Rayonier Inc.				958,436	22,341
	PotlatchDeltic Corp.				483,626	19,776
						159,794
Total Equity Real Estate Investment Trusts (REITs) (Cost $7,410,528)						8,577,549
Real Estate Management & Development (9.3%)
Diversified Real Estate Activities (0.2%)
	St. Joe Co.				244,798	12,362
*	Tejon Ranch Co.				130,198	2,338
	RMR Group Inc. Class A				103,334	1,660
						16,360
Real Estate Development (0.2%)
*	Howard Hughes Holdings Inc.				211,377	14,528
*	Forestar Group Inc.				130,958	3,248
						17,776
Real Estate Operating Companies (0.1%)
1	Landbridge Co. LLC Class A				112,791	6,393
	Kennedy-Wilson Holdings Inc.				716,958	5,248
*	Seritage Growth Properties Class A				219,464	700
						12,341
Real Estate Services (8.8%)
*	CBRE Group Inc. Class A				1,940,566	302,224
*	CoStar Group Inc.				2,729,401	259,812
*	Zillow Group Inc. Class C				1,051,959	83,683
*	Jones Lang LaSalle Inc.				307,542	83,147
*	Zillow Group Inc. Class A				360,374	27,659
*	Compass Inc. Class A				2,961,723	23,516
*	Cushman & Wakefield plc				1,494,638	18,220
	Newmark Group Inc. Class A				927,060	14,063
*,1	Opendoor Technologies Inc.				3,980,699	7,324
	eXp World Holdings Inc.				490,152	5,284
	Marcus & Millichap Inc.				164,817	5,136
*	Anywhere Real Estate Inc.				614,749	2,840
						832,908
Total Real Estate Management & Development (Cost $675,848)						879,385

18

Real Estate II Index Fund

					Shares	Market Value• ($000)
Temporary Cash Investments (0.6%)
Money Market Fund (0.6%)
3,4	Vanguard Market Liquidity Fund, 4.367% (Cost $54,731)				547,387	54,733
Total Investments (100.2%) (Cost $8,141,107)						9,511,667
Other Assets and Liabilities—Net (-0.2%)						(18,816)
Net Assets (100%)						9,492,851

Cost is in $000.

•	See Note A in Notes to Financial Statements.

*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $15,943.
2	Security value determined using significant unobservable inputs.
3	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
4	Collateral of $20,368 was received for securities on loan.

REIT—Real Estate Investment Trust.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)1 (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Mid-America Apartment Communities Inc.	8/29/25	BANA	12,137	(4.338)	—	(377)
Mid-America Apartment Communities Inc.	8/29/25	BANA	8,881	(4.338)	—	(276)
Park Hotels & Resorts Inc.	1/30/26	GSI	4,384	(4.338)	—	(128)
Sun Communities Inc.	8/29/25	BANA	9,487	(4.338)	—	(141)
					—	(922)

1	Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly.
	BANA—Bank of America, N.A.
	GSI—Goldman Sachs International.

See accompanying Notes, which are an integral part of the Financial Statements.

19

Real Estate II Index Fund

Statement of Assets and Liabilities

As of July 31, 2025

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $8,086,376)	9,456,934
Affiliated Issuers (Cost $54,731)	54,733
Total Investments in Securities	9,511,667
Investment in Vanguard	239
Cash	383
Receivables for Accrued Income	2,601
Receivables for Capital Shares Issued	42
Total Assets	9,514,932
Liabilities
Payables for Investment Securities Purchased	452
Collateral for Securities on Loan	20,368
Payables to Vanguard	339
Unrealized Depreciation—Over-the-Counter Swap Contracts	922
Total Liabilities	22,081
Net Assets	9,492,851
1 Includes $15,943 of securities on loan.
At July 31, 2025, net assets consisted of:
Paid-in Capital	8,328,344
Total Distributable Earnings (Loss)	1,164,507
Net Assets	9,492,851
Net Assets
Applicable to 442,766,652 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	9,492,851
Net Asset Value Per Share	$21.44

See accompanying Notes, which are an integral part of the Financial Statements.

20

Real Estate II Index Fund

Statement of Operations

	Six Months Ended July 31, 2025
	($000)
Investment Income
Income
Dividends	141,694
Interest1	376
Securities Lending—Net	82
Total Income	142,152
Expenses
The Vanguard Group—Note B
Investment Advisory Services	79
Management and Administrative	3,539
Marketing and Distribution	67
Custodian Fees	36
Shareholders’ Reports and Proxy Fees	10
Trustees’ Fees and Expenses	3
Other Expenses	8
Total Expenses	3,742
Net Investment Income	138,410
Realized Net Gain (Loss)
Capital Gain Distributions Received	17,754
Investment Securities Sold1	(48,916)
Swap Contracts	(3,512)
Realized Net Gain (Loss)	(34,674)
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	(63,911)
Swap Contracts	(1,313)
Change in Unrealized Appreciation (Depreciation)	(65,224)
Net Increase (Decrease) in Net Assets Resulting from Operations	38,512

1	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $356, $1, and less than $1, respectively. Purchases and sales are for temporary cash investment purposes.

See accompanying Notes, which are an integral part of the Financial Statements.

21

Real Estate II Index Fund

Statement of Changes in Net Assets

	Six Months Ended July 31, 2025		Year Ended January 31, 2025
	($000)		($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	138,410		255,127
Realized Net Gain (Loss)	(34,674)		(27,643)
Change in Unrealized Appreciation (Depreciation)	(65,224)		810,997
Net Increase (Decrease) in Net Assets Resulting from Operations	38,512		1,038,481
Distributions
Net Investment Income and/or Realized Capital Gains	(184,400)		(262,200)
Return of Capital	—		(83,536)
Total Distributions	(184,400)		(345,736)
Capital Share Transactions
Issued	12,227		46,455
Issued in Lieu of Cash Distributions	184,400		345,736
Redeemed	(3,136)		(65,552)
Net Increase (Decrease) from Capital Share Transactions	193,491		326,639
Total Increase (Decrease)	47,603		1,019,384
Net Assets
Beginning of Period	9,445,248		8,425,864
End of Period	9,492,851		9,445,248

See accompanying Notes, which are an integral part of the Financial Statements.

22

Real Estate II Index Fund

Financial Highlights

For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2025	Year Ended January 31,
		2025	2024	2023	2022	2021
Net Asset Value, Beginning of Period	$21.78	$20.16	$21.86	$25.69	$20.50	$22.64
Investment Operations
Net Investment Income1	.316	.599	.620	.558	.484	.471
Net Realized and Unrealized Gain (Loss) on Investments	(.233)	1.836	(1.476)	(3.493)	5.427	(1.808)
Total from Investment Operations	.083	2.435	(.856)	(2.935)	5.911	(1.337)
Distributions
Dividends from Net Investment Income	(.423)	(.618)	(.625)	(.528)	(.477)	(.465)
Distributions from Realized Capital Gains	—	—	—	(.238)	(.034)	—
Return of Capital	—	(.197)	(.219)	(.129)	(.210)	(.338)
Total Distributions	(.423)	(.815)	(.844)	(.895)	(.721)	(.803)
Net Asset Value, End of Period	$21.44	$21.78	$20.16	$21.86	$25.69	$20.50
Total Return	0.39%	12.26%	-3.68%	-11.23%	28.96%	-5.70%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$9,493	$9,445	$8,426	$8,690	$9,542	$7,400
Ratio of Total Expenses to Average Net Assets	0.08%	0.08%	0.08%	0.08%2	0.08%	0.08%
Ratio of Net Investment Income to Average Net Assets	2.92%	2.80%	3.14%	2.47%	1.95%	2.41%
Portfolio Turnover Rate	2%	4%	6%	5%3	6%	4%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

See accompanying Notes, which are an integral part of the Financial Statements.

23

Real Estate II Index Fund

Notes to Financial Statements

Vanguard Real Estate II Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund is a wholly owned subsidiary of Vanguard Real Estate Index Fund (“Real Estate Index Fund”), and at July 31, 2025, the Real Estate Index Fund was the record and beneficial owner of 96.9% of the fund’s net assets. As part of the Real Estate Index Fund’s principal investment strategy, it attempts to replicate the benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through the fund—in the stocks that make up the index.

A.  The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.

Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the six months ended July 31, 2025, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

24

Real Estate II Index Fund

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the six months ended July 31, 2025, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management’s estimates of such amounts for REIT distributions for which actual information has not been reported. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B.  In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2025, the fund had contributed to Vanguard capital in the amount of $239,000, representing less than 0.01% of the fund’s net assets and 0.10% of Vanguard’s capital received pursuant to the FSA. 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 and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.

The following table summarizes the market value of the fund's investments and derivatives as of July 31, 2025, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	9,456,911	—	23	9,456,934
Temporary Cash Investments	54,733	—	—	54,733
Total	9,511,644	—	23	9,511,667
Derivative Financial Instruments
Liabilities
Swap Contracts	—	(922)	—	(922)

25

Real Estate II Index Fund

D.  As of July 31, 2025, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	8,185,470
Gross Unrealized Appreciation	2,275,420
Gross Unrealized Depreciation	(950,145)
Net Unrealized Appreciation (Depreciation)	1,325,275

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2025, the fund had available capital losses totaling $98,660,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2026; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E.  During the six months ended July 31, 2025, the fund purchased $334,841,000 of investment securities and sold $171,674,000 of investment securities, other than temporary cash investments.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2025, such purchases were $14,135,000 and sales were $547,000, resulting in net realized loss of $6,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.  Capital shares issued and redeemed were:

	Six Months Ended July 31, 2025		Year Ended January 31, 2025
	Shares (000)		Shares (000)
Issued	570		2,234
Issued in Lieu of Cash Distributions	8,618		16,360
Redeemed	(145)		(2,889)
Net Increase (Decrease) in Shares Outstanding	9,043		15,705

G.  Significant market disruptions, such as those caused by pandemics, natural or environmental ‎disasters, war, acts of terrorism, political or regulatory conditions, or other events, can adversely affect local and global ‎markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance.

To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.

The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund’s use of derivative(s) and the specific risks associated is described under significant accounting policies.

H.  Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker (“CODM”). The fund is considered a single segment. Vanguard’s chief executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund’s chief financial officer collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund’s daily operations. Through these committees, the CODM manages the fund’s operations to achieve a single investment objective, as detailed in its prospectus, through the execution of the fund’s investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund’s portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund’s financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.

I.  Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would require recognition or disclosure in these financial statements.

Q1232 092025

26

Financial Statements

For the six-months ended July 31, 2025

Vanguard Global Capital Cycles Fund

Contents

Financial Statements	1

Global Capital Cycles Fund

Financial Statements (unaudited)

Schedule of Investments

As of July 31, 2025

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

					Shares	Market Value• ($000)
Common Stocks (95.3%)
Australia (2.4%)
1	BHP Group Ltd. ADR				536,939	27,207
	BHP Group Ltd.				694,144	17,531
						44,738
Brazil (5.2%)
	Lojas Renner SA				16,940,271	49,221
1	Banco Bradesco SA ADR				16,825,119	46,606
						95,827
Canada (19.0%)
	Barrick Mining Corp.				7,078,468	149,497
	Teck Resources Ltd. Class B				1,611,297	52,248
	Nutrien Ltd.				571,941	33,928
*	Foran Mining Corp.				15,030,755	27,879
	Intact Financial Corp.				123,228	25,471
	Lundin Mining Corp.				2,255,840	23,037
	Sandstorm Gold Ltd.				1,755,815	16,435
	Agnico Eagle Mines Ltd.				128,290	15,954
*	Abaxx Technologies Inc.				755,600	6,926
						351,375
China (2.0%)
*	Baidu Inc. Class A				1,845,426	20,191
	Alibaba Group Holding Ltd.				1,082,348	16,273
						36,464
France (4.4%)
	Societe Generale SA				850,121	54,262
	Engie SA				1,242,788	27,936
						82,198
Hong Kong (1.0%)
	ASMPT Ltd.				2,123,364	17,963
Indonesia (0.4%)
	Bank Negara Indonesia Persero Tbk. PT				31,446,431	7,626
Japan (1.3%)
	Mitsubishi Estate Co. Ltd.				660,400	12,365
1	SUMCO Corp.				1,471,100	11,505
						23,870
Mexico (2.9%)
	Cemex SAB de CV ADR				3,062,918	26,647
	America Movil SAB de CV Class B				29,157,763	26,322
						52,969
South Africa (2.3%)
	Valterra Platinum Ltd.				629,276	28,261
*	Valterra Platinum Ltd. (XLON)				336,749	15,032
						43,293
South Korea (3.6%)
	Samsung Electronics Co. Ltd.				1,321,407	67,344
Switzerland (1.7%)
	Swatch Group AG				105,802	18,712
	Adecco Group AG (Registered)				399,849	12,590
						31,302
Taiwan (3.6%)
	Taiwan Semiconductor Manufacturing Co. Ltd. ADR				277,371	67,018
United Kingdom (25.1%)
	Anglo American plc				2,304,943	64,857

1

Global Capital Cycles Fund

					Shares	Market Value• ($000)
	Prudential plc				4,536,061	57,545
	Unilever plc				811,595	47,089
	British American Tobacco plc				775,722	41,561
	Rio Tinto plc ADR				598,154	35,752
	Tate & Lyle plc				4,376,439	30,901
	Haleon plc				6,026,994	28,271
	Babcock International Group plc				1,811,842	24,841
	Hammerson plc				6,298,113	24,611
	Fresnillo plc				1,231,841	22,713
	Serco Group plc				7,350,730	20,255
	Shell plc				520,603	18,707
	Hays plc				11,993,420	10,082
	Reckitt Benckiser Group plc				128,757	9,650
	Travis Perkins plc				1,344,761	9,634
	Rio Tinto plc				159,663	9,509
	Pagegroup plc				2,689,638	9,408
						465,386
United States (20.4%)
	Wells Fargo & Co.				577,387	46,555
*	Antero Resources Corp.				1,017,305	35,535
*	First Solar Inc.				174,603	30,508
	Pfizer Inc.				1,183,962	27,575
	Archer-Daniels-Midland Co.				506,759	27,456
	Expand Energy Corp.				259,332	27,173
	Intel Corp.				1,328,656	26,307
	American Electric Power Co. Inc.				181,851	20,575
*	NEXTracker Inc. Class A				327,621	19,087
	Marvell Technology Inc.				227,789	18,307
*	Shoals Technologies Group Inc. Class A				3,116,917	16,800
	Merck & Co. Inc.				200,276	15,646
	Viper Energy Inc. Class A				371,732	13,999
*	Centene Corp.				497,519	12,970
*	Fluor Corp.				194,676	11,052
	Universal Health Services Inc. Class B				57,668	9,599
	CVS Health Corp.				151,544	9,411
*	Molina Healthcare Inc.				58,633	9,256
						377,811
Total Common Stocks (Cost $1,486,911)						1,765,184
Preferred Stocks (0.8%)
	Raizen SA Preference Shares (Cost $27,648)				55,688,500	14,122
Temporary Cash Investments (5.2%)
Money Market Fund (5.2%)
2,3	Vanguard Market Liquidity Fund, 4.367% (Cost $96,961)				969,716	96,962
Total Investments (101.3%) (Cost $1,611,520)						1,876,268
Other Assets and Liabilities—Net (-1.3%)						(24,487)
Net Assets (100%)						1,851,781

Cost is in $000.

•	See Note A in Notes to Financial Statements.

*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $27,863.
2	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3	Collateral of $28,638 was received for securities on loan.

ADR—American Depositary Receipt.

See accompanying Notes, which are an integral part of the Financial Statements.

2

Global Capital Cycles Fund

Statement of Assets and Liabilities

As of July 31, 2025

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $1,514,559)	1,779,306
Affiliated Issuers (Cost $96,961)	96,962
Total Investments in Securities	1,876,268
Investment in Vanguard	47
Foreign Currency, at Value (Cost $1,570)	1,555
Receivables for Investment Securities Sold	1,246
Receivables for Accrued Income	5,546
Receivables for Capital Shares Issued	1,498
Total Assets	1,886,160
Liabilities
Due to Custodian	1,199
Payables for Investment Securities Purchased	333
Collateral for Securities on Loan	28,638
Payables for Capital Shares Redeemed	3,132
Payables to Investment Advisor	888
Payables to Vanguard	189
Total Liabilities	34,379
Net Assets	1,851,781
1 Includes $27,863 of securities on loan.
At July 31, 2025, net assets consisted of:
Paid-in Capital	3,344,027
Total Distributable Earnings (Loss)	(1,492,246)
Net Assets	1,851,781
Net Assets
Applicable to 118,546,268 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,851,781
Net Asset Value Per Share	$15.62