Transcript
Vanguard Global ex-U.S. Real Estate
Index Fund
Semiannual Report | April 30, 2017
Contents
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, therisks 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: No matter what language you speak, Vanguard has one consistent message and set of principles. Our primary focus is on you, our clients. We conduct our business with integrity as a faithful steward of your assets. This message is showntranslated into seven languages, reflecting our expanding global presence.
A new format, unwavering commitment
As you begin reading this report, you’ll notice that we’ve made some improvementsto the opening sections—based on feedback from you, our clients.
Page 1 starts with a new ”Your Fund’s Performance at a Glance,” a concise, handysummary of how your fund performed during the period.
In the renamed ”Chairman’s Perspective,” Bill McNabb will focus on enduringprinciples and investment insights.
We’ve modified some tables, and eliminated some redundancy, but we haven’tremoved any information.
At Vanguard, we’re always looking for better ways to communicate and to help youmake sound investment decisions. Thank you for entrusting your assets to us.
Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1
Chairman’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 34
Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . 36
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Your Fund’s Performance at a Glance
1
Total Returns: Six Months Ended April 30, 2017
TotalReturns
Vanguard Global ex-U.S. Real Estate Index Fund
Investor Shares 5.26%
ETF Shares
Market Price 5.35
Net Asset Value 5.36
Admiral™ Shares 5.38
Institutional Shares 5.39
S&P Global ex-U.S. Property Index 5.16
International Real Estate Funds Average 5.72
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 5% for the six
months ended April 30, 2017, ahead of its benchmark but behind the average return of
its peers. The fund’s return diverged from that of its benchmark index in part because
of temporary pricing discrepancies arising from fair-value adjustments. Please see the
Glossary entry for Fair-Value Pricing.
• All of the major regions generated positive results. The developed markets of Europe
and the Pacific region, which together represented more than three-quarters of fund
assets on average during the period, accounted for most of the fund’s return.
• On a country basis, the United Kingdom, which posted strong results despite lingering
concerns about its exit from the European Union, contributed most to performance.
Singapore and Israel also helped returns. Japan, which accounts for about 20% of the
index, was the biggest detractor.
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 0.35% 0.15% 0.15% 0.13% 1.36%
The fund expense ratios shown are from the prospectus dated February 24, 2017, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2017, the fund’s annualized expense ratios were 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15%for Admiral Shares, and 0.13% for Institutional Shares. The peer-group expense ratio is derived from data provided by Lipper, a ThomsonReuters Company, and captures information through year-end 2016.
Peer group: International Real Estate Funds.
Dear Shareholder,
“Buy what you know.”
It’s one of the adages of investing, and it
has plenty of intuitive appeal. After all, the
familiar seems inherently less risky. It’s
no wonder that many investors heavily
tilt their portfolios toward the stocks and
bonds of their home country. This is known
in investing parlance as “home bias.”
U.S. investors sometimes think they
can get all the global diversification they
need by owning shares of U.S.-based
multinational companies. And that may
seem like the best of both worlds:
international diversification without ever
leaving the friendly confines of home.
The potential pitfall is that, as Vanguard
research has suggested, the performance
of a company’s shares tends to be highly
correlated to its domestic market, regardless
of where that company conducts most of
its business.
Americans aren’t alone in being portfolio
homebodies. Vanguard has found that in
a range of developed countries—Australia,
Canada, Japan, and the United Kingdom,
as well as the United States—investors
held a greater percentage of domestic
stocks than would be indicated if they
had taken their cues from a globally
diversified, market-weighted benchmark.
(You can see this tendency in the chart
later in this letter.)
Chairman’s Perspective
Bill McNabbChairman and Chief Executive Officer
3
Why home bias exists Vanguard’s Investment Strategy Group
identified a range of reasons why investors
might not embrace global diversification,
including concerns about currency risk and
an expectation that their home country will
deliver outsized returns.
One factor we identified—preference for
the familiar—seems particularly relevant.
With so much global uncertainty about
geopolitics, monetary policy, and the
economic outlook, it’s understandable
why investors may not want to stray
too far from home.
But in their aversion to the unknown,
investors can end up increasing, rather
than lessening, their risks. That’s
because they’re sacrificing broad global
diversification—one of the best ways
I know of to help control risk.
In many cases, individual country markets
are much less diversified than the global
market in total. Global investing, then, can
be an answer for investors who want to
reduce concentration risk. That can include
overconcentration in a particular country,
region, or industry.
And the good news is that global investing
is easier than ever, thanks to the wide
availability of low-cost, internationally
diversified stock and bond funds. It’s
possible, in a sense, to own the whole
world with just a couple of funds.
Market Barometer Total Returns
Periods Ended April 30, 2017
Six One Five Years
Months Year (Annualized)
Stocks
Russell 1000 Index (Large-caps) 13.46% 18.03% 13.63%
Russell 2000 Index (Small-caps) 18.37 25.63 12.95
Russell 3000 Index (Broad U.S. market) 13.83 18.58 13.57
FTSE All-World ex US Index (International) 10.55 12.98 5.60
Bonds
Bloomberg Barclays U.S. Aggregate Bond Index
(Broad taxable market) -0.67% 0.83% 2.27%
Bloomberg Barclays Municipal Bond Index
(Broad tax-exempt market) -0.34 0.14 3.16
Citigroup Three-Month U.S. Treasury Bill Index 0.23 0.37 0.11
CPI
Consumer Price Index 1.16% 2.20% 1.22%
4
Expanding our opportunitiesA key to overcoming home bias is
reframing the way we look at investing
outside our home countries. Take, for
example, automakers or pharmaceutical
companies. There are well-regarded firms
in both industries located throughout the
world. Over the next five years, nobody
can know for sure whether a Japanese
or U.S. or European company will produce
a popular new sedan that outsells the
competition or come up with new treat-
ments to combat illness. So why not own
them all? And that includes their bonds
along with their stocks.
Full global diversification also allows
you to capitalize on opportunities in both
developed and emerging economies.
Betting on which individual country—let
alone company—will be the next market
darling can be a fool’s errand.
A better choice can be to harness the
potential of all markets. In my personal
investment account, I have an emerging
markets position that complements my
developed-market holdings. Not only can
global diversification help control risk, but
it can also expand our set of opportunities
among stocks and bonds.
Home bias shows investors across the world are fixated on the familiar
Investors often own a greater share of their home country’s stocks than would be indicated
by the allocations of a globally diversified, market-capitalization-weighted index fund.
Weight
Notes: Data as of December 31, 2014 (the latest available from the International Monetary Fund, or IMF), in U.S. dollars. Domestic
investment is calculated by subtracting total foreign investment (as reported by the IMF) in a given country from its market capitalization
in the MSCI All Country World Index. Given that the IMF data are voluntary, there may be some discrepancies between the market values
in the survey and the MSCI ACWI.
Sources: Vanguard, based on data from the IMF’s Coordinated Portfolio Investment Survey (2014), Bloomberg, Thomson Reuters
Datastream, and FactSet.
0
80
70
60
50
40
30
20
10
90%
United States Canada United Kingdom Australia Japan
50.9
79.1
3.4
59
7.2
26.3
2.4
66.5
7.2
55.2
Global index weight
Investor holdings in domestic equities
5
Ultimately, I believe we have the best
chance for investment success by giving
ourselves more opportunities, not fewer.
Own the whole haystack and you never
have to worry about finding the needle.
Thank you for entrusting your assets
to Vanguard.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
May 12, 2017
6
1 The expense ratios shown are from the prospectus dated February 24, 2017, and represent estimated costs for the current fiscal year. For the six months ended April 30, 2017, the annualized expense ratios were 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15% for Admiral Shares, and 0.13% for Institutional Shares.
Fund ProfileAs of April 30, 2017
Volatility Measures
S&P
Global
ex-U.S.
Property
Index
MSCI AC
World
Index
ex USA
R-Squared 0.98 0.74
Beta 0.95 0.84
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Global ex-U.S. Real Estate Index Fund
Share-Class Characteristics
Investor
Shares ETF Shares
Admiral
Shares
Institutional
Shares
Ticker Symbol VGXRX VNQI VGRLX VGRNX
Expense Ratio1 0.35% 0.15% 0.15% 0.13%
7
Portfolio Characteristics
Fund
S&P
Global
ex-U.S.
Property
Index
Number of Stocks 677 648
Median Market Cap $6.1B $6.0B
Price/Earnings Ratio 11.7x 11.7x
Price/Book Ratio 1.1x 1.1x
Return on Equity 10.3% 10.3%
Earnings Growth
Rate 9.6% 9.6%
Dividend Yield 3.5% 3.5%
Turnover Rate
(Annualized) 3% —
Short-Term Reserves -0.3% —
Ten Largest Holdings (% of total net assets)
Mitsubishi Estate Co.
Ltd.
Diversified Real
Estate Activities 2.7%
Unibail-Rodamco SE Retail REITs 2.4
Sun Hung Kai Properties
Ltd.
Diversified Real
Estate Activities 2.4
Mitsui Fudosan Co. Ltd. Diversified Real
Estate Activities 2.2
Daiwa House Industry
Co. Ltd.
Diversified Real
Estate Activities 2.0
Cheung Kong Property
Holdings Ltd.
Real Estate
Development 2.0
Scentre Group Retail REITs 1.7
Vonovia SE Real Estate
Operating
Companies 1.7
Link REIT Retail REITs 1.6
Westfield Corp. Retail REITs 1.3
Top Ten 20.0%
The holdings listed exclude any temporary cash investments andequity index products.
Global ex-U.S. Real Estate Index Fund
8
Allocation by Region (% of equity exposure)
52.0% Pacific
24.9% Europe
19.0% Emerging Markets
2.5% North America
1.0% Middle East
0.6% Other
Market Diversification (% of equity exposure)
Fund
S&PGlobal
ex-U.S.Property
Index
Europe
United Kingdom 7.2% 7.1%
France 5.1 5.0
Germany 4.8 4.8
Sweden 2.0 1.9
Switzerland 1.6 1.5
Spain 1.2 1.2
Other 3.0 2.9
Subtotal 24.9% 24.4%
Pacific
Japan 21.6% 21.6%
Hong Kong 13.3 13.2
Australia 10.2 10.2
Singapore 6.3 6.1
Other 0.6 0.5
Subtotal 52.0% 51.6%
Emerging Markets
China 8.3% 8.0%
South Africa 1.8 1.8
Philippines 1.5 1.5
United ArabEmirates 1.2 1.1
Thailand 1.1 0.9
Mexico 1.1 1.0
Other 4.0 4.0
Subtotal 19.0% 18.3%
North America
Canada 2.5% 2.4%
Middle East
Israel 1.0% 1.0%
Other 0.6% 2.3%
"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 principalvalue 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.
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.
Performance Summary
Global ex-U.S. Real Estate Index Fund
9
Fiscal-Year Total Returns (%): November 1, 2010, Through April 30, 2017
–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
5.26 5.16
2017
Global ex-U.S. Real Estate Index Fund Investor Shares
S&P Global ex-U.S. Property Index
Note: For 2017, performance data reflect the six months ended April 30, 2017.
Average Annual Total Returns: Periods Ended March 31, 2017This 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 3.92% 6.69% 4.81%
Fee-Adjusted Returns 3.41 6.60 4.74
ETF Shares 11/1/2010
Market Price 4.50 6.87 4.92
Net Asset Value 4.17 6.84 4.96
Admiral Shares 2/10/2011 4.17 6.86 5.28
Fee-Adjusted Returns 3.66 6.76 5.20
Institutional Shares 4/19/2011 4.18 6.88 5.05
Fee-Adjusted Returns 3.67 6.78 4.97
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Common Stocks (99.3%)1
Australia (10.1%)
Scentre Group 25,016,031 80,714
Westfield Corp. 8,983,995 61,095
Goodman Group 7,483,842 45,440
Stockland 11,300,992 41,015
Dexus Property Group 4,490,831 34,292
GPT Group 8,435,172 33,134
Vicinity Centres 15,353,665 33,094
LendLease Group 2,711,670 32,555
Mirvac Group 17,348,225 29,466
Investa Office Fund 2,869,013 10,200
Charter Hall Group 1,933,852 8,215
Shopping Centres
Australasia Property
Group 3,386,646 5,859
Charter Hall Retail REIT 1,564,824 5,238
BWP Trust 2,277,473 4,978
Aveo Group 2,011,517 4,744
Cromwell Property Group 6,106,180 4,434
Viva Energy REIT 1,960,696 3,539
Abacus Property Group 1,322,777 3,417
ALE Property Group 845,737 2,995
Growthpoint Properties
Australia Ltd. 1,189,808 2,912
National Storage REIT 2,276,006 2,538
Charter Hall Long Wale
REIT 753,494 2,251
Gateway Lifestyle 1,359,382 2,168
Folkestone Education
Trust 992,378 2,155
GDI Property Group 2,397,874 1,886
Arena REIT 1,051,876 1,677
Ingenia Communities
Group 802,173 1,644
Propertylink Group 2,561,536 1,533
Peet Ltd. 1,642,282 1,525^ Hotel Property
Investments 609,565 1,350
Astro Japan Property
Group 237,527 1,186^ Generation Healthcare
REIT 642,896 1,093
Cedar Woods Properties
Ltd. 239,025 958
Servcorp Ltd. 213,819 943
Industria REIT 551,046 929
Villa World Ltd. 515,027 895
360 Capital Group Ltd. 809,216 576
Sunland Group Ltd. 328,970 425
Aspen Group 450,583 356
Centuria Urban REIT 193,307 329
473,753
Austria (0.7%)
BUWOG AG 329,296 8,893
IMMOFINANZ AG 4,097,407 8,518
CA Immobilien Anlagen
AG 340,553 7,458
S IMMO AG 255,704 3,342
Atrium European Real
Estate Ltd. 792,728 3,338* UBM Development AG 16,427 615
32,164
Belgium (0.8%)
Cofinimmo SA 94,545 11,442* Warehouses De Pauw
CVA 73,831 7,065
Aedifica SA 83,511 6,565
Befimmo SA 107,728 6,287^ Retail Estates NV 29,251 2,390
Intervest Offices
& Warehouses NV 54,250 1,406* Montea SCA 26,838 1,365* Wereldhave Belgium NV 8,750 953
Xior Student Housing NV 15,258 607
38,080
Financial Statements (unaudited)
Statement of Net AssetsAs of April 30, 2017
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)
Brazil (0.7%)
Multiplan
Empreendimentos
Imobiliarios SA 586,011 12,499* BR Malls Participacoes
SA 2,388,914 10,575* Iguatemi Empresa de
Shopping Centers SA 380,486 3,976
Aliansce Shopping
Centers SA 301,637 1,432* BR Properties SA 393,353 1,170* Sonae Sierra Brasil SA 94,865 648
Helbor Empreendimentos
SA 689,900 550
30,850
Canada (2.5%)
RioCan REIT 748,585 14,220
H&R REIT 652,282 11,067
First Capital Realty Inc. 646,592 9,398^ Canadian Apartment
Properties REIT 306,639 7,608^ Smart REIT 296,145 7,020
Canadian REIT 166,695 6,030
Allied Properties REIT 197,143 5,290
Cominar REIT 417,350 4,326^ Tricon Capital Group Inc. 508,075 3,997
Granite REIT 109,896 3,942^ Boardwalk REIT 107,202 3,617^ Dream Office REIT 252,831 3,599
Artis REIT 351,645 3,498
Morguard Corp. 24,292 3,434^ Milestone Apartments
REIT 185,732 3,014
Pure Industrial Real Estate
Trust 589,090 2,818
Dream Global REIT 319,533 2,317^ Crombie REIT 209,355 2,224
Choice Properties REIT 209,274 2,133^ Northview Apartment
REIT 116,144 1,936
Killam Apartment REIT 182,069 1,714
NorthWest Healthcare
Properties REIT 193,737 1,529
CT REIT 141,533 1,519* DREAM Unlimited Corp.
Class A 310,127 1,499
Brookfield Canada Office
Properties 61,849 1,473
Morguard REIT 119,332 1,338
InterRent REIT 179,611 1,036
Slate Retail REIT 83,276 913
Dream Industrial REIT 123,373 763
Morguard North American
Residential REIT 67,742 751
Plaza Retail REIT 200,896 706
* Mainstreet Equity Corp. 19,996 540^ Slate Office REIT 87,715 525
Agellan Commercial REIT 60,146 506
OneREIT 164,483 451
116,751
Chile (0.2%)
Parque Arauco SA 2,809,562 7,354
China (8.2%)
China Overseas Land
& Investment Ltd. 20,135,710 58,405
China Resources Land
Ltd. 12,702,446 35,199
Country Garden Holdings
Co. Ltd. 36,129,163 34,361^,* China Evergrande Group 16,749,921 17,865
China Vanke Co. Ltd. 6,181,854 15,665
Sunac China Holdings
Ltd. 8,528,378 11,107^ Fullshare Holdings Ltd. 32,487,635 10,588
Longfor Properties Co.
Ltd. 5,701,208 9,865
Shimao Property
Holdings Ltd. 5,492,164 8,815
Guangzhou R&F
Properties Co. Ltd. 4,746,209 7,989
Sino-Ocean Group
Holding Ltd. 14,035,329 6,847
Shanghai Lujiazui Finance
& Trade Zone
Development Co. Ltd.
Class B 4,118,778 6,569* Future Land Holdings
Co. Ltd. Class A 2,878,159 6,508
Shenzhen Investment
Ltd. 14,124,201 6,401
China Jinmao Holdings
Group Ltd. 19,652,054 6,356^ Agile Group Holdings Ltd. 7,009,409 6,265^,* Goldin Properties
Holdings Ltd. 5,736,020 6,2282 Red Star Macalline Group
Corp. Ltd. 4,992,800 5,337
Yuexiu Property Co. Ltd. 29,347,094 4,975
KWG Property Holding
Ltd. 6,401,658 4,836
SOHO China Ltd. 8,766,045 4,776
CIFI Holdings Group
Co. Ltd. 12,552,000 4,532^,* Zall Group Ltd. 8,021,574 4,486* Poly Property Group
Co. Ltd. 9,170,048 3,757
Shui On Land Ltd. 16,229,038 3,607
Logan Property Holdings
Co. Ltd. 6,085,984 3,485
11
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
K Wah International
Holdings Ltd. 5,220,338 3,313^,* China Logistics Property
Holdings Co. Ltd. 8,797,000 3,190
Hopson Development
Holdings Ltd. 3,218,710 3,065
Yuexiu REIT 5,138,516 3,024
Powerlong Real Estate
Holdings Ltd. 6,290,139 2,959^ China South City
Holdings Ltd. 15,098,111 2,948^,* Greentown China
Holdings Ltd. 2,869,314 2,757^,* Carnival Group
International Holdings
Ltd. 26,204,514 2,694
China SCE Property
Holdings Ltd. 6,990,766 2,640^ Yuzhou Properties
Co. Ltd. 5,783,000 2,637
Joy City Property Ltd. 16,728,045 2,621
C C Land Holdings Ltd. 8,852,500 2,274^,* China Overseas Grand
Oceans Group Ltd. 4,400,386 2,254^,* China Oceanwide
Holdings Ltd. 22,236,000 2,201^ Future Land Development
Holdings Ltd. 7,382,000 2,179
Beijing Capital Land Ltd. 4,261,034 2,069* Tian An China Investment
Co. Ltd. 2,537,761 2,050^,* Renhe Commercial
Holdings Co. Ltd. 77,904,484 1,991^ China Aoyuan Property
Group Ltd. 5,982,000 1,845
Shanghai Jinqiao Export
Processing Zone
Development Co. Ltd.
Class B 1,180,155 1,724
Times Property Holdings
Ltd. 2,398,000 1,670^ Spring REIT 3,983,000 1,663
Road King Infrastructure
Ltd. 1,074,000 1,593* Glorious Property
Holdings Ltd. 13,325,036 1,558^,2 Redco Properties Group
Ltd. 3,862,000 1,514^,* Beijing Enterprises
Medical & Health Group
Ltd. 19,824,000 1,5022 Sunshine 100 China
Holdings Ltd. 3,820,000 1,482
Shanghai Industrial Urban
Development Group Ltd. 6,718,799 1,449
^ LVGEM China Real Estate
Investment Co. Ltd. 5,260,000 1,351* Gemdale Properties
& Investment Corp. Ltd. 18,654,000 1,317^,* Ronshine China Holdings
Ltd. 1,373,500 1,215^,* Greenland Hong Kong
Holdings Ltd. 3,749,000 1,209
Beijing North Star
Co. Ltd. 3,006,000 1,162
Shanghai Shibei Hi-Tech
Co. Ltd. Class B 1,015,000 1,074
Yida China Holdings Ltd. 4,490,000 1,068
Guorui Properties Ltd. 3,545,000 1,052* Sinolink Worldwide
Holdings Ltd. 9,734,643 1,051* Mingfa Group
International Co. Ltd. 4,231,908 1,028
Fantasia Holdings Group
Co. Ltd. 6,352,443 1,003* China Electronics Optics
Valley Union Holding
Co. Ltd. 10,552,000 989^,* China Merchants Land
Ltd. 5,230,000 974^,* Jiayuan International
Group Ltd. 2,048,000 942
Hydoo International
Holding Ltd. 7,670,000 768
Nam Tai Property Inc. 97,466 7652 China Vast Industrial
Urban Development
Co. Ltd. 2,017,000 747* Wuzhou International
Holdings Ltd. 7,102,000 721
Xinyuan Real Estate
Co. Ltd. ADR 147,478 687
Central China Real Estate
Ltd. 2,792,000 681* EverChina International
Holdings Co. Ltd. 21,539,331 673^,* Crown International Corp.
Ltd. 3,270,000 588* Greattown Holdings Ltd.
Class B 693,993 549^,* China Minsheng Drawin
Technology Group Ltd. 16,500,000 524* SRE Group Ltd. 21,628,000 522^,* Ping An Securities Group
Holdings Ltd. 53,420,000 500* Shanghai Huili Building
Materials Co. Ltd.
Class B 363,700 457* AVIC International
Holding HK Ltd. 7,310,000 408
12
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* China Properties
Investment Holdings
Ltd. 28,404,600 405* Guangdong Land
Holdings Ltd. 1,780,000 403* Beijing Properties
Holdings Ltd. 7,442,000 387* China New City
Commercial
Development Ltd. 2,068,000 383* Shenzhen Wongtee
International Enterprise
Co. Ltd. Class B 654,562 378* Shanghai Zendai
Property Ltd. 21,210,000 321
383,992
Denmark (0.0%) * TK Development A/S 313,572 533
Egypt (0.1%) * Talaat Moustafa Group 4,424,860 1,986* Medinet Nasr Housing 1,033,284 1,200* Palm Hills Developments
SAE 5,065,285 831
Heliopolis Housing 489,096 702* Six of October
Development
& Investment 836,073 631* Emaar Misr for
Development SAE 2,888,419 391
5,741
Finland (0.2%)
Sponda Oyj 985,190 4,346
Citycon Oyj 1,735,418 4,267
Technopolis Oyj 580,784 1,947
10,560
France (5.0%)
Unibail-Rodamco SE 466,667 114,586^,* Klepierre 974,743 38,259
Gecina SA 189,483 26,950
Fonciere Des Regions 249,765 22,291^ ICADE 209,642 15,567
Nexity SA 176,915 9,619^ Mercialys SA 259,563 5,057* Altarea SCA 12,077 2,435
234,764
Germany (4.8%)
Vonovia SE 2,188,787 79,243
Deutsche Wohnen AG 1,656,405 56,638
LEG Immobilien AG 294,962 25,341
TAG Immobilien AG 681,609 9,705
Grand City Properties SA 487,775 9,265
Deutsche EuroShop AG 227,758 9,247
alstria office REIT-AG 482,781 6,385
TLG Immobilien AG 306,980 6,2122 ADO Properties SA 141,265 5,171* Hamborner REIT AG 377,909 3,967* PATRIZIA Immobilien AG 189,960 3,748
VIB Vermoegen AG 127,172 3,044
DIC Asset AG 230,388 2,364* WCM Beteiligungs
& Grundbesitz-AG 523,913 1,828^,* ADLER Real Estate AG 99,289 1,558
223,716
Greece (0.1%)
Grivalia Properties
REIC AE 164,879 1,533* LAMDA Development SA 194,763 985
2,518
Hong Kong (13.3%)
Sun Hung Kai Properties
Ltd. 7,492,441 112,274
Cheung Kong Property
Holdings Ltd. 12,875,375 92,177
Link REIT 10,413,089 74,849
Wharf Holdings Ltd. 5,712,000 48,701
Hongkong Land Holdings
Ltd. 5,529,312 42,614
Henderson Land
Development Co. Ltd. 5,801,320 36,725
New World Development
Co. Ltd. 25,927,000 32,240
Wheelock & Co. Ltd. 3,715,652 28,943
Hang Lung Properties
Ltd. 9,664,932 25,324
Sino Land Co. Ltd. 14,458,605 24,468
Hang Lung Group Ltd. 4,065,103 16,951
Swire Properties Ltd. 4,948,600 16,590
Hysan Development
Co. Ltd. 2,925,655 13,798
Kerry Properties Ltd. 2,834,332 10,596
Champion REIT 9,993,512 6,498
Great Eagle Holdings Ltd. 1,188,697 5,895* Wang On Properties Ltd. 17,440,000 3,782^ Chinese Estates Holdings
Ltd. 2,281,452 3,505
Sunlight REIT 4,788,400 2,972
SEA Holdings Ltd. 1,066,000 2,677
Far East Consortium
International Ltd. 4,875,000 2,324
Prosperity REIT 5,606,649 2,277
Kowloon Development
Co. Ltd. 1,744,414 1,930* HKR International Ltd. 3,322,882 1,793^ Langham Hospitality
Investments and
Langham Hospitality
Investments Ltd. 4,012,500 1,660
13
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Lai Sun Development
Co. Ltd. 56,115,453 1,579
Liu Chong Hing
Investment Ltd. 932,000 1,471
Emperor International
Holdings Ltd. 4,309,832 1,330
Regal REIT 4,100,815 1,201
CSI Properties Ltd. 21,998,348 1,159
Soundwill Holdings Ltd. 381,500 943
Chuang’s Consortium
International Ltd. 4,120,000 852
Wang On Group Ltd. 32,000,000 288^,* Man Sang International
Ltd. 4,616,000 279* Dan Form Holdings
Co. Ltd. 329,908 33
620,698
India (0.4%) * DLF Ltd. 1,922,515 5,561* Indiabulls Real Estate Ltd. 1,145,340 2,665* Oberoi Realty Ltd. 346,292 2,138* Prestige Estates Projects
Ltd. 505,152 1,854* Godrej Properties Ltd. 247,380 1,786* Housing Development
& Infrastructure Ltd. 1,230,332 1,736
Phoenix Mills Ltd. 246,536 1,588
Sobha Ltd. 160,061 921* Unitech Ltd. 8,622,320 756
Mahindra Lifespace
Developers Ltd. 105,318 724
Omaxe Ltd. 193,009 578
20,307
Indonesia (0.8%)
Bumi Serpong Damai
Tbk PT 43,266,427 5,796
Ciputra Development
Tbk PT 59,563,191 5,712* Lippo Karawaci Tbk PT 85,471,400 5,062
Pakuwon Jati Tbk PT 107,874,528 5,045
Summarecon Agung
Tbk PT 41,795,800 4,254* Hanson International
Tbk PT 261,619,500 2,724
PP Properti Tbk PT 101,647,807 2,011* Kawasan Industri
Jababeka Tbk PT 79,016,483 1,954* Alam Sutera Realty
Tbk PT 51,492,397 1,341
Intiland Development
Tbk PT 29,107,051 960* Modernland Realty
Tbk PT 37,306,000 788
Puradelta Lestari Tbk PT 30,354,200 546
* Lippo Cikarang Tbk PT 1,583,900 532* Sentul City Tbk PT 76,351,300 504
Bekasi Fajar Industrial
Estate Tbk PT 18,193,882 403* Agung Podomoro Land
Tbk PT 22,535,400 355
37,987
Ireland (0.2%)
Green REIT plc 3,267,572 4,858
Hibernia REIT plc 3,199,460 4,442
Irish Residential
Properties REIT plc 1,662,750 2,372
11,672
Israel (1.0%) * Azrieli Group Ltd. 170,041 9,045
Gazit-Globe Ltd. 446,766 4,524
Melisron Ltd. 82,556 4,496
Alony Hetz Properties
& Investments Ltd. 460,862 4,268* Airport City Ltd. 274,983 3,639
Reit 1 Ltd. 789,013 2,669
Amot Investments Ltd. 559,717 2,666* Brack Capital Properties
NV 22,224 2,110* Jerusalem Economy Ltd. 697,934 1,714
Norstar Holdings Inc. 77,682 1,594* Summit Real Estate
Holdings Ltd. 163,929 1,219
Big Shopping Centers
Ltd. 16,035 1,159* Africa Israel Properties
Ltd. 55,034 1,108
Blue Square Real Estate
Ltd. 22,519 1,058
Sella Capital Real Estate
Ltd. 571,398 1,055* Alrov Properties and
Lodgings Ltd. 36,740 1,006* Property & Building Corp.
Ltd. 9,286 901* ADO Group Ltd. 64,164 802* Africa Israel Investments
Ltd. —
45,033
Italy (0.1%)
Beni Stabili SpA SIIQ 4,777,843 3,033
Immobiliare Grande
Distribuzione SIIQ SPA 1,366,479 1,223
4,256
Japan (21.5%)
Mitsubishi Estate Co. Ltd. 6,533,645 125,105
Mitsui Fudosan Co. Ltd. 4,647,457 102,255
Daiwa House Industry
Co. Ltd. 3,132,174 93,116
14
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Sumitomo Realty
& Development Co. Ltd. 2,236,167 60,411
Daito Trust Construction
Co. Ltd. 365,900 53,843
Nippon Building Fund Inc. 6,644 35,334
Japan Real Estate
Investment Corp. 5,859 30,853
Nomura Real Estate
Master Fund Inc. 19,571 28,208
Japan Retail Fund
Investment Corp. 11,950 23,345
United Urban Investment
Corp. 14,364 21,702
Hulic Co. Ltd. 2,275,044 21,455
Orix JREIT Inc. 12,572 19,937
Nippon Prologis REIT Inc. 8,938 18,887^ Daiwa House REIT
Investment Corp. 6,976 17,637
Advance Residence
Investment Corp. 6,309 16,608
Japan Prime Realty
Investment Corp. 4,334 16,272
GLP J-Reit 13,346 15,041
Activia Properties Inc. 3,120 14,865
Tokyo Tatemono Co. Ltd. 1,011,283 13,816
Tokyu Fudosan Holdings
Corp. 2,392,356 13,065
Japan Hotel REIT
Investment Corp. 17,486 11,918
Kenedix Office
Investment Corp. 1,912 10,833
Nomura Real Estate
Holdings Inc. 590,129 9,982
Nippon Accommodations
Fund Inc. 2,275 9,772
Frontier Real Estate
Investment Corp. 2,210 9,646
Aeon Mall Co. Ltd. 533,983 9,081
Japan Logistics Fund Inc. 4,197 8,955
Mori Hills REIT
Investment Corp. 6,537 8,494^ Industrial & Infrastructure
Fund Investment Corp. 1,831 8,080^ Daiwa Office Investment
Corp. 1,537 7,489
Japan Excellent Inc. 6,152 7,200
Hulic Reit Inc. 4,402 7,069
AEON REIT Investment
Corp. 6,438 7,039^ Mori Trust Sogo Reit Inc. 4,484 7,004
Leopalace21 Corp. 1,251,150 6,650
Invincible Investment
Corp. 15,922 6,099
Tokyu REIT Inc. 4,582 5,684
Premier Investment Corp. 5,259 5,656
Fukuoka REIT Corp. 3,544 5,594^ Japan Rental Housing
Investments Inc. 7,743 5,565^ Sekisui House SI
Residential Investment
Corp. 5,186 5,469
Comforia Residential
REIT Inc. 2,431 5,384
Kenedix Retail REIT Corp. 2,337 5,090
Sekisui House Reit Inc. 3,921 5,004
LaSalle Logiport REIT 5,205 4,944
NIPPON REIT Investment
Corp. 1,836 4,715
NTT Urban Development
Corp. 510,500 4,607
Kenedix Residential
Investment Corp. 1,644 4,222
Ichigo Office REIT
Investment 7,160 4,053^ Hoshino Resorts REIT Inc. 774 3,930
MCUBS MidCity
Investment Corp. 1,315 3,927
TOC Co. Ltd. 424,229 3,862
Hankyu Reit Inc. 2,827 3,720
Heiwa Real Estate REIT
Inc. 4,824 3,653
Global One Real Estate
Investment Corp. 1,033 3,559
Invesco Office J-Reit Inc. 3,848 3,390
Daikyo Inc. 1,429,050 2,976
Heiwa Real Estate
Co. Ltd. 160,332 2,557
Daibiru Corp. 272,057 2,511
Mitsui Fudosan Logistics
Park Inc. 855 2,497^ Unizo Holdings Co. Ltd. 85,200 2,174^,* Mirai Corp. 1,422 1,915
Takara Leben Co. Ltd. 399,352 1,877^ SIA Reit Inc. 836 1,435^ Starts Proceed
Investment Corp. 1,078 1,378
Goldcrest Co. Ltd. 77,340 1,375
Star Asia Investment
Corp. 1,392 1,222
Keihanshin Building
Co. Ltd. 202,300 1,158^ Ichigo Hotel REIT
Investment Corp. 1,049 1,023
Sakura Sogo REIT
Investment Corp. 1,415 991^ Shinoken Group Co. Ltd. 49,900 930
Tosei Corp. 129,500 916^ Samty Residential
Investment Corp. 1,249 912
15
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Sun Frontier Fudousan
Co. Ltd. 94,000 822* Mori Trust Hotel Reit Inc. 587 800^,* Ardepro Co. Ltd. 604,600 743^ Tosei Reit Investment
Corp. 796 731^ Health Care & Medical
Investment Corp. 776 673^ Nippon Commercial
Development Co. Ltd. 38,800 655
Tokyo Rakutenchi Co. Ltd. 135,000 634^ Japan Property
Management Center
Co. Ltd. 51,800 611^ SAMTY Co. Ltd. 61,000 606
Ooedo Onsen Reit
Investment Corp. 748 594
Airport Facilities Co. Ltd. 110,700 580^ Arealink Co. Ltd. 41,500 567^ Nippon Healthcare
Investment Corp. 330 487^ Tokyo Theatres Co. Inc. 354,017 473^ Japan Senior Living
Investment Corp. 360 428
1,006,345
Malaysia (0.6%)
IOI Properties Group
Bhd. 8,427,500 4,018
Sunway Bhd. 3,557,204 2,844
KLCCP Stapled Group 1,392,370 2,511
IGB REIT 5,812,100 2,275
SP Setia Bhd Group 2,262,860 1,906
Sunway REIT 4,857,934 1,902
Mah Sing Group Bhd. 5,274,525 1,810
UEM Sunrise Bhd. 5,241,565 1,496
Eastern & Oriental Bhd. 3,284,656 1,437* Eco World Development
Group Bhd. 3,767,300 1,318
Capitaland Malaysia Mall
Trust 3,713,700 1,275
UOA Development Bhd. 1,722,700 1,065
Pavilion REIT 2,632,700 1,056
Matrix Concepts Holdings
Bhd. 1,695,483 1,012
Axis REIT 2,406,100 910* YNH Property Bhd. 1,724,359 608
LBS Bina Group Bhd. 1,158,900 558* KSL Holdings Bhd. 1,802,900 506* KIP REIT 2,237,500 497
Tropicana Corp. Bhd. 1,730,667 393* Eco World Development
Group Bhd Warrants
Exp. 03/26/2022 450,320 51
* Eastern & Oriental Bhd
Warrants Exp.
07/21/2019 438,840 23* Matrix Concepts Holdings
Bhd. Warrants Exp.
07/20/2020 133,683 14* Mah Sing Group Warrants
Exp. 01/15/2026 264,345 9* Mah Sing Group Bhd.
Warrants Exp.
03/18/2018 156,256 6
29,500
Mexico (1.1%)
Fibra Uno Administracion
SA de CV 12,439,212 21,726
Concentradora Fibra
Danhos SA de CV 4,456,425 7,689
PLA Administradora
Industrial S de RL
de CV 2,827,341 4,770
Macquarie Mexico Real
Estate Management
SA de CV 3,855,946 4,226
Corp Inmobiliaria Vesta
SAB de CV 2,537,200 3,576
Prologis Property Mexico
SA de CV 1,608,900 2,732* Grupo GICSA SA de CV 2,209,703 1,427
Fibra Shop Portafolios
Inmobiliarios SAPI
de CV 1,649,918 1,202
Concentradora Fibra
Hotelera Mexicana SA
de CV 1,413,175 1,157
Asesor de Activos Prisma
SAPI de CV 1,520,700 913
49,418
Netherlands (0.5%)
Eurocommercial
Properties NV 230,072 8,939^ Wereldhave NV 187,361 8,627
Vastned Retail NV 90,592 3,384
NSI NV 677,464 2,860
Echo Polska Properties
NV 942,041 1,361
25,171
New Zealand (0.5%)
Kiwi Property Group Ltd. 6,090,468 5,960
Goodman Property Trust 4,728,796 3,964
Precinct Properties New
Zealand Ltd. 4,706,400 3,891
Argosy Property Ltd. 3,912,437 2,714
16
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^ Vital Healthcare Property
Trust 1,550,788 2,343
Property for Industry Ltd. 2,032,995 2,277
Stride Property Group 1,706,769 2,054^ Investore Property Ltd. 924,437 837
24,040
Norway (0.2%) 2 Entra ASA 373,030 4,279
Olav Thon
Eiendomsselskap ASA 143,852 2,823
Norwegian Property ASA 1,073,969 1,266
Selvaag Bolig ASA 181,004 749
9,117
Other (0.5%) 3 Vanguard REIT ETF 269,000 22,271
Philippines (1.5%) * SM Prime Holdings Inc. 54,284,905 32,380
Ayala Land Inc. 27,671,800 19,555
Megaworld Corp. 58,859,000 4,784
Robinsons Land Corp. 7,477,550 3,842* DoubleDragon Properties
Corp. 2,775,460 2,889
Vista Land & Lifescapes
Inc. 19,964,278 2,114
Filinvest Land Inc. 45,005,000 1,561
Belle Corp. 17,410,800 1,430
68,555
Poland (0.0%) * Globe Trade Centre SA 895,884 2,124
Qatar (0.2%)
United Development Co.
QSC 779,066 4,102
Barwa Real Estate Co. 436,815 4,083* Mazaya Qatar Real Estate
Development QSC 249,413 866
9,051
Russia (0.1%) * LSR Group PJSC GDR 930,546 3,086
Etalon Group Ltd. GDR 370,031 1,424
4,510
Singapore (6.3%) * CapitaLand Ltd. 12,172,738 32,707
Global Logistic Properties
Ltd. 13,870,631 28,576
City Developments Ltd. 2,895,390 22,343
Ascendas REIT 11,387,961 20,872
CapitaLand Mall Trust 12,585,334 17,747
Suntec REIT 11,970,627 15,159
UOL Group Ltd. 2,766,678 14,330
CapitaLand Commercial
Trust 9,902,582 11,509
Mapletree Commercial
Trust 8,359,533 9,545
Fortune REIT 6,344,861 7,371^ Mapletree Industrial Trust 5,507,234 7,055
Mapletree Greater China
Commercial Trust 8,618,480 6,598
Keppel REIT 8,340,615 6,327
Mapletree Logistics Trust 7,110,429 5,752
Ascott Residence Trust 5,560,486 4,358
Yanlord Land Group Ltd. 3,125,604 4,172
Frasers Centrepoint Trust 2,666,141 4,029
CapitaLand Retail China
Trust 3,250,786 3,699
CDL Hospitality Trusts 3,219,102 3,573
Frasers Logistics
& Industrial Trust 4,943,600 3,571
Starhill Global REIT 6,334,468 3,490
Parkway Life REIT 1,853,755 3,399
Keppel DC REIT 3,721,013 3,298
OUE Hospitality Trust 5,518,600 2,843
Lippo Malls Indonesia
Retail Trust 8,952,106 2,724
Ascendas India Trust 3,236,166 2,667^ AIMS AMP Capital
Industrial REIT 2,659,076 2,655
Wing Tai Holdings Ltd. 1,962,010 2,653
Frasers Commercial Trust 2,753,567 2,642
Croesus Retail Trust 3,561,100 2,484
SPH REIT 3,508,000 2,474
Cache Logistics Trust 3,974,205 2,460
First REIT 2,396,854 2,314
Manulife US REIT 2,732,500 2,296
Cambridge Industrial
Trust 5,274,409 2,213
Ascendas Hospitality
Trust 3,950,400 2,202
Frasers Centrepoint Ltd. 1,614,300 2,194^ Yoma Strategic Holdings
Ltd. 5,135,018 2,129^,* United Industrial Corp.
Ltd. 931,788 2,107^ Sinarmas Land Ltd. 5,968,800 1,943
Wheelock Properties
Singapore Ltd. 1,339,669 1,787^ GuocoLand Ltd. 1,264,377 1,652
Far East Hospitality Trust 3,781,592 1,625^ Ho Bee Land Ltd. 893,403 1,559^ Soilbuild Business Space
REIT 2,899,660 1,379
Sabana Shari’ah
Compliant Industrial
REIT 4,113,872 1,339
OUE Commercial REIT 2,610,700 1,309
17
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^ Perennial Real Estate
Holdings Ltd. 1,903,578 1,206* Ying Li International Real
Estate Ltd. 5,403,400 541
292,877
South Africa (1.8%)
Growthpoint Properties
Ltd. 10,862,148 20,817
Redefine Properties Ltd. 23,425,323 19,281
Resilient REIT Ltd. 1,565,909 13,643
Hyprop Investments Ltd. 1,005,776 9,287* Attacq Ltd. 3,250,564 4,137
Vukile Property Fund Ltd. 2,740,770 3,891
SA Corporate Real Estate
Ltd. 8,529,715 3,506
Arrowhead Properties
Ltd. 4,213,123 2,783
Emira Property Fund Ltd. 2,145,869 2,248
Rebosis Property Fund
Ltd. 2,206,141 2,012
Octodec Investments Ltd. 853,909 1,525
Delta Property Fund Ltd. 2,142,622 1,406
Balwin Properties Ltd. 955,253 522
Hospitality Property Fund
Ltd. Class B 24,739 26
85,084
South Korea (0.0%) ^ SK D&D Co. Ltd. 31,967 775
Dongwon Development
Co. Ltd. 154,521 622
1,397
Spain (1.1%)
Merlin Properties Socimi
SA 2,209,021 26,123* Inmobiliaria Colonial SA 1,393,561 10,806
Hispania Activos
Inmobiliarios SOCIMI SA 504,618 7,619
Axiare Patrimonio
SOCIMI SA 300,651 4,986* Lar Espana Real Estate
Socimi SA 414,794 3,429^,* Realia Business SA 1,008,016 1,068
54,031
Sweden (2.0%)
Castellum AB 1,284,043 17,585
Fabege AB 653,724 11,257* Fastighets AB Balder
Class B 444,750 9,930^,* Wallenstam AB 1,025,733 8,740
Hufvudstaden AB Class A 549,703 8,612
Hemfosa Fastigheter AB 739,853 6,855^,* Wihlborgs Fastigheter AB 324,018 6,312^,* Kungsleden AB 881,393 4,935* Atrium Ljungberg AB 227,246 3,759
Sagax AB Class B 340,825 3,541* Klovern AB 2,180,835 2,297* Dios Fastigheter AB 396,589 2,033* D Carnegie & Co. AB
Class B 161,901 1,965* Victoria Park AB Class B 560,737 1,563
NP3 Fastigheter AB 213,932 1,193* Catena AB 78,874 1,162* Platzer Fastigheter
Holding AB Class B 214,916 1,067^,* Magnolia Bostad AB 69,451 584* Tribona AB 129,122 —
93,390
Switzerland (1.5%) * Swiss Prime Site AG 335,930 29,123* PSP Swiss Property AG 189,377 16,979* Allreal Holding AG 66,690 11,475
Mobimo Holding AG 28,963 7,787* Intershop Holding AG 6,501 3,131* Zug Estates Holding AG
Class B 1,148 2,019* Hiag Immobilien Holding
AG 12,238 1,511* Investis Holding SA 12,083 735
72,760
Taiwan (0.7%)
Highwealth Construction
Corp. 4,033,544 6,799* Ruentex Development
Co. Ltd. 4,129,729 5,040
Huaku Development
Co. Ltd. 997,854 2,288
Prince Housing
& Development Corp. 5,201,478 2,060* Shin Kong No.1 REIT 4,353,000 2,033
Chong Hong Construction
Co. Ltd. 855,297 1,994
Farglory Land
Development Co. Ltd. 1,094,631 1,484
Cathay Real Estate
Development Co. Ltd. 2,018,100 1,355* Radium Life Tech
Co. Ltd. 2,857,947 1,345
Hung Sheng
Construction Ltd. 1,711,000 1,094
Taiwan Land
Development Corp. 2,777,450 1,040
Kindom Construction
Corp. 1,584,000 999
Huang Hsiang
Construction Corp. 579,000 842
Kuoyang Construction
Co. Ltd. 1,689,665 772
Hong Pu Real Estate
Development Co. Ltd. 784,194 637
18
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
KEE TAI Properties
Co. Ltd. 1,695,869 623* Shining Building Business
Co. Ltd. 1,642,971 577
30,982
Thailand (1.1%) * Central Pattana PCL 6,301,700 10,920* Land & Houses PCL
(Local) 16,474,700 4,902
CPN Retail Growth
Leasehold Property
Fund 7,683,810 4,154
Tesco Lotus Retail
Growth Freehold
& Leasehold Property
Fund 8,169,212 3,969* WHA Corp. PCL (Local) 24,816,930 2,252* Supalai PCL 3,068,605 2,181* Bangkok Land PCL
(Local) 39,759,700 2,149
Samui Airport Property
Fund Leasehold 3,155,875 2,053* Pruksa Real Estate PCL 3,024,500 1,771* IMPACT Growth REIT 3,617,900 1,516* Quality Houses PCL 20,461,000 1,512* Amata Corp. PCL 2,347,600 1,167* Golden Ventures
Leasehold REIT 2,744,000 1,039
TICON Property Fund 3,216,000 948* Ananda Development
PCL 6,594,800 941* U City PCL 1,059,490,500 919
Sansiri PCL 14,694,200 891* Singha Estate PCL
(Local) 5,832,336 842* LPN Development PCL 2,447,500 827* Platinum Group PCL 3,319,400 681* Siam Future
Development PCL 3,772,367 676^ TICON Industrial
Connection PCL NVDR 1,597,580 645
CP Tower Growth
Leasehold Property
Fund 1,573,200 550* AP Thailand PCL 2,348,150 539* Sansiri PCL (Local) 7,873,000 478* Country Group
Development PCL 15,806,100 452^,* WHA Corp. PCL (Foreign) 4,759,678 432* Thailand Prime Property
Freehold and Leasehold
REIT 1,140,000 395* TICON Industrial
Connection PCL (Local) 861,000 348
Asian Property
Development PCL
(Foreign) 1,513,270 347* Property Perfect PCL
(Local) 12,008,800 319
Univentures PCL
(Foreign) 1,577,100 316* SC Asset Corp. PCL
(Local) 3,071,925 312^,* Rojana Industrial Park
PCL NVDR 1,541,382 265* SC Asset Corp. PCL
(Foreign) 2,526,712 257
Sansiri PCL (Foreign) 4,060,798 246
Bangkok Land PCL
(Foreign) 4,269,495 231* Univentures PCL (Local) 1,067,500 214^ Land & Houses PCL
(Foreign) 481,300 145* Pruksa Holding PCL 186,200 121* Rojana Industrial Park PCL 495,412 85^,* SC Asset Corp.
PCL NVDR 831,300 84* Rojana Industrial Park PCL
(Foreign) 481,328 83
Property Perfect PCL
(Foreign) 2,742,000 73
Singha Estate PCL
(Foreign) 253,164 37* WHA Corp. PCL Warrants
Exp. 12/31/2019 108,341 23
TICON Industrial
Connection PCL
(Foreign) 50,093 20* Sansiri PLC Foreign
Warrants Exp.
11/24/2017 3,159,666 7* Sansiri PLC NVDR
Warrants Exp.
11/24/2017 2,936,700 7* Raimon Land PCL
Warrants Exp.
06/14/2018 1,271,475 5
53,346
Turkey (0.2%)
Emlak Konut Gayrimenkul
Yatirim Ortakligi AS 9,066,182 7,527
Is Gayrimenkul Yatirim
Ortakligi AS 2,203,314 862* AKIS Gayrimenkul
Yatirimi AS 773,131 627
Torunlar Gayrimenkul
Yatirim Ortakligi AS 336,025 491
9,507
19
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
United Arab Emirates (1.1%) * Emaar Properties PJSC 15,752,989 30,763
Aldar Properties PJSC 14,122,044 8,221* Emaar Malls PJSC 8,765,603 6,135* DAMAC Properties Dubai
Co. PJSC 7,606,470 5,301* Eshraq Properties Co.
PJSC 4,843,428 1,543* Deyaar Development
PJSC 6,299,477 926
RAK Properties PJSC 3,737,594 621
53,510
United Kingdom (7.5%)
Land Securities Group plc 3,716,932 53,233
British Land Co. plc 4,805,347 40,861
Segro plc 4,668,269 29,363
Hammerson plc 3,724,246 28,336
Derwent London plc 520,657 19,847
Shaftesbury plc 1,303,802 15,736
Intu Properties plc 4,229,924 15,108
Great Portland Estates plc 1,599,041 14,328^ Capital & Counties
Properties plc 3,502,785 14,325^ Tritax Big Box REIT plc 5,132,092 9,307
UNITE Group plc 1,032,623 8,655
F&C Commercial Property
Trust Ltd. 3,711,620 7,293
LondonMetric Property
plc 3,234,464 7,055
Big Yellow Group plc 690,906 6,927
Grainger plc 1,932,102 6,250
Workspace Group plc 550,094 6,161
Assura plc 7,614,052 6,044
Hansteen Holdings plc 3,445,936 5,528
Safestore Holdings plc 968,098 5,082
NewRiver REIT plc 1,083,192 4,884
St. Modwen Properties
plc 899,268 4,258^ Primary Health Properties
plc 2,811,955 4,124
Daejan Holdings plc 42,307 3,718
UK Commercial Property
Trust Ltd. 3,089,609 3,550
Empiric Student Property
plc 2,189,305 3,106
Redefine International
PLC 5,865,014 2,906
Picton Property Income
Ltd. 2,496,443 2,725
Helical plc 510,292 2,188
Schroder REIT Ltd. 2,460,218 2,088
MAS Real Estate Inc. 1,148,043 1,924
CLS Holdings plc 73,538 1,847
* Raven Russia Ltd. 2,855,867 1,823
Urban & Civic plc 502,245 1,730
Mucklow A & J Group plc 273,739 1,701
Capital & Regional plc 2,060,422 1,6082 Regional REIT Ltd. 1,083,776 1,502
U & I Group plc 592,542 1,459
McKay Securities plc 466,693 1,414* Civitas Social Housing plc 800,868 1,141* Tritax Big Box Rights
Exp. 05/10/2017 459,216 24
349,159
Total Common Stocks
(Cost $4,737,723) 4,646,874
Temporary Cash Investments (3.2%)1
Money Market Fund (3.2%)4,5 Vanguard Market Liquidity
Fund, 1.034% 1,477,249 147,754
Face
Amount
($000)
U.S. Government and Agency Obligations (0.0%) 6 United States Treasury Bill,
0.540%, 5/18/17 300 3006 United States Treasury Bill,
0.521%, 6/1/17 500 5006 United States Treasury Bill,
0.551%–0.729%, 6/8/17 500 5006 United States Treasury Bill,
0.602%, 7/13/17 300 2996 United States Treasury Bill,
0.647%, 8/10/17 300 299
1,898
Total Temporary Cash Investments
(Cost $149,636) 149,652
Total Investments (102.5%)
(Cost $4,887,359) 4,796,526
20
Global ex-U.S. Real Estate Index Fund
Amount
($000)
Amount
($000)
Other Assets and Liabilities (-2.5%)
Other Assets
Investment in Vanguard 299
Receivables for Investment Securities Sold 77
Receivables for Accrued Income 18,369
Receivables for Capital Shares Issued 218
Other Assets 4,167
Total Other Assets 23,130
Liabilities
Payables for Investment Securities
Purchased (10,481)
Collateral for Securities on Loan (127,799)
Payables for Capital Shares Redeemed (222)
Payables to Vanguard (1,426)
Other Liabilities (517)
Total Liabilities (140,445)
Net Assets (100%) 4,679,211
At April 30, 2017, net assets consisted of:
Amount
($000)
Paid-in Capital 4,889,010
Overdistributed Net Investment Income (20,883)
Accumulated Net Realized Losses (98,482)
Unrealized Appreciation (Depreciation)
Investment Securities (90,833)
Futures Contracts 507
Foreign Currencies (108)
Net Assets 4,679,211
Investor Shares—Net Assets
Applicable to 2,819,692 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 61,355
Net Asset Value Per Share—
Investor Shares $21.76
ETF Shares—Net Assets
Applicable to 74,177,514 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 4,035,618
Net Asset Value Per Share—
ETF Shares $54.40
Admiral Shares—Net Assets
Applicable to 12,212,962 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 402,670
Net Asset Value Per Share—
Admiral Shares $32.97
Institutional Shares—Net Assets
Applicable to 1,634,802 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 179,568
Net Asset Value Per Share—
Institutional Shares $109.84
• 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 $119,025,000.
* 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 100.1% and 2.4%, 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, 2017, the aggregate value of these securities was $20,032,000, representing 0.4% of net assets.
3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
5 Includes $127,799,000 of collateral received for securities on loan.
6 Securities with a value of $1,698,000 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.
See accompanying Notes, which are an integral part of the Financial Statements.
21
Six Months Ended
April 30, 2017
($000)
Investment Income
Income
Dividends1,2 63,341
Interest2 50
Securities Lending—Net 1,444
Total Income 64,835
Expenses
The Vanguard Group—Note B
Investment Advisory Services 421
Management and Administrative—Investor Shares 81
Management and Administrative—ETF Shares 1,424
Management and Administrative—Admiral Shares 163
Management and Administrative—Institutional Shares 62
Marketing and Distribution—Investor Shares 6
Marketing and Distribution—ETF Shares 127
Marketing and Distribution—Admiral Shares 17
Marketing and Distribution—Institutional Shares 2
Custodian Fees 617
Shareholders’ Reports—Investor Shares 3
Shareholders’ Reports—ETF Shares 181
Shareholders’ Reports—Admiral Shares 4
Shareholders’ Reports—Institutional Shares —
Trustees’ Fees and Expenses 1
Total Expenses 3,109
Net Investment Income 61,726
Realized Net Gain (Loss)
Investment Securities Sold2 40,625
Futures Contracts 1,932
Foreign Currencies (765)
Realized Net Gain (Loss) 41,792
Change in Unrealized Appreciation (Depreciation)
Investment Securities 99,248
Futures Contracts 616
Foreign Currencies 327
Change in Unrealized Appreciation (Depreciation) 100,191
Net Increase (Decrease) in Net Assets Resulting from Operations 203,709
1 Dividends are net of foreign withholding taxes of $5,985,000.
2 Dividend income, interest income, and realized net gain (loss) from affiliated companies of the fund were $100,000, $46,000, and $3,000, respectively.
Statement of Operations
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
22
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,
2017 2016
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 61,726 129,127
Realized Net Gain (Loss) 41,792 (31,723)
Change in Unrealized Appreciation (Depreciation) 100,191 3,273
Net Increase (Decrease) in Net Assets Resulting from Operations 203,709 100,677
Distributions
Net Investment Income
Investor Shares (1,752) (1,787)
ETF Shares (106,954) (110,683)
Admiral Shares (11,402) (11,538)
Institutional Shares (5,051) (5,506)
Realized Capital Gain
Investor Shares — —
ETF Shares — —
Admiral Shares — —
Institutional Shares — —
Total Distributions (125,159) (129,514)
Capital Share Transactions
Investor Shares 1,026 1,259
ETF Shares 355,078 531,472
Admiral Shares 20,801 25,946
Institutional Shares 11,053 (2,165)
Net Increase (Decrease) from Capital Share Transactions 387,958 556,512
Total Increase (Decrease) 466,508 527,675
Net Assets
Beginning of Period 4,212,703 3,685,028
End of Period1 4,679,211 4,212,703
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($20,883,000) and $20,409,000.
23
Investor Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2017 2016 2015 2014 2013 2012
Net Asset Value, Beginning of Period $21.35 $21.44 $22.63 $23.06 $21.04 $18.14
Investment Operations
Net Investment Income .328 .6551 .683 .944 .6851 .7001
Net Realized and Unrealized Gain (Loss)
on Investments2 .723 (.088) (1.103) (.443) 2.321 2.995
Total from Investment Operations 1.051 .567 (.420) .501 3.006 3.695
Distributions
Dividends from Net Investment Income (.641) (.657) (.770) (.931) (.986) (.795)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (.641) (.657) (.770) (.931) (.986) (.795)
Net Asset Value, End of Period $21.76 $21.35 $21.44 $22.63 $23.06 $21.04
Total Return3 5.26% 2.72% -1.82% 2.41% 14.69% 21.31%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $61 $59 $58 $51 $156 $84
Ratio of Total Expenses to
Average Net Assets 0.36% 0.35% 0.36% 0.37% 0.40% 0.45%
Ratio of Net Investment Income to
Average Net Assets 2.65% 3.10% 2.97% 4.10% 2.95% 3.74%
Portfolio Turnover Rate4 3% 7% 12% 8% 8% 10%
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, $.02, 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
24
ETF Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2017 2016 2015 2014 2013 2012
Net Asset Value, Beginning of Period $53.35 $53.58 $56.54 $57.64 $52.60 $45.39
Investment Operations
Net Investment Income .872 1.7521 1.802 2.437 1.7131 1.8201
Net Realized and Unrealized Gain (Loss)
on Investments2 1.809 (.241) (2.747) (1.120) 5.869 7.460
Total from Investment Operations 2.681 1.511 (.945) 1.317 7.582 9.280
Distributions
Dividends from Net Investment Income (1.631) (1.741) (2.015) (2.417) (2.542) (2.070)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (1.631) (1.741) (2.015) (2.417) (2.542) (2.070)
Net Asset Value, End of Period $54.40 $53.35 $53.58 $56.54 $57.64 $52.60
Total Return 5.36% 2.92% -1.66% 2.51% 14.77% 21.44%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $4,036 $3,616 $3,111 $2,203 $1,306 $381
Ratio of Total Expenses to
Average Net Assets 0.15% 0.15% 0.18% 0.24% 0.27% 0.32%
Ratio of Net Investment Income to
Average Net Assets 2.86% 3.30% 3.15% 4.23% 3.08% 3.87%
Portfolio Turnover Rate3 3% 7% 12% 8% 8% 10%
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, $.02, and $.03.
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
25
Admiral Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2017 2016 2015 2014 2013 2012
Net Asset Value, Beginning of Period $32.33 $32.47 $34.27 $34.92 $31.87 $27.51
Investment Operations
Net Investment Income .528 1.0581 1.090 1.466 1.0121 1.0931
Net Realized and Unrealized Gain (Loss)
on Investments2 1.101 (.139) (1.673) (.661) 3.580 4.528
Total from Investment Operations 1.629 .919 (.583) .805 4.592 5.621
Distributions
Dividends from Net Investment Income (.989) (1.059) (1.217) (1.455) (1.542) (1.261)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (.989) (1.059) (1.217) (1.455) (1.542) (1.261)
Net Asset Value, End of Period $32.97 $32.33 $32.47 $34.27 $34.92 $31.87
Total Return3 5.38% 2.91% -1.66% 2.55% 14.83% 21.43%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $403 $373 $349 $296 $117 $43
Ratio of Total Expenses to
Average Net Assets 0.15% 0.15% 0.18% 0.24% 0.27% 0.32%
Ratio of Net Investment Income to
Average Net Assets 2.86% 3.30% 3.15% 4.23% 3.08% 3.87%
Portfolio Turnover Rate4 3% 7% 12% 8% 8% 10%
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
Signal Shares were renamed Admiral Shares in October 2013. Prior periods’ Financial Highlights are for the Signal class.
1 Calculated based on average shares outstanding.
2 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.01, 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
26
Institutional Shares
Six Months
Ended
For a Share Outstanding April 30, Year Ended October 31,
Throughout Each Period 2017 2016 2015 2014 2013 2012
Net Asset Value, Beginning of Period $107.71 $108.17 $114.14 $116.37 $106.19 $91.68
Investment Operations
Net Investment Income 1.772 3.5591 3.657 4.954 3.4071 3.6581
Net Realized and Unrealized Gain (Loss)
on Investments2 3.660 (.483) (5.541) (2.273) 11.930 15.107
Total from Investment Operations 5.432 3.076 (1.884) 2.681 15.337 18.765
Distributions
Dividends from Net Investment Income (3.302) (3.536) (4.086) (4.911) (5.157) (4.255)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (3.302) (3.536) (4.086) (4.911) (5.157) (4.255)
Net Asset Value, End of Period $109.84 $107.71 $108.17 $114.14 $116.37 $106.19
Total Return3 5.39% 2.93% -1.61% 2.55% 14.87% 21.48%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $180 $165 $167 $176 $92 $61
Ratio of Total Expenses to
Average Net Assets 0.13% 0.13% 0.16% 0.22% 0.24% 0.29%
Ratio of Net Investment Income to
Average Net Assets 2.88% 3.32% 3.17% 4.25% 3.11% 3.90%
Portfolio Turnover Rate4 3% 7% 12% 8% 8% 10%
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, $.01, $.00, $.00, $.07, and $.06.
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
27
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 Contracts: The fund uses index futures contracts to a limited extent, with the objectives of
maintaining full exposure to the stock market, enhancing returns, 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 fund may seek to enhance
returns by using futures contracts instead of the underlying securities when futures are believed to
28
Global ex-U.S. Real Estate Index Fund
be priced more attractively than the underlying securities. The primary risks associated with the use
of futures contracts are imperfect correlation between changes in market values of stocks held by
the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty
risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead
of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on
an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has
entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin
requirements to secure the fund’s performance and requires daily settlement of variation margin
representing changes in the market value of each contract.
Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values
of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the
contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of
Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are
recorded as realized futures gains (losses).
During the six months ended April 30, 2017, 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
aggregate settlement values 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, 2013–2016), and for the period ended April 30, 2017, 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.
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 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.
29
Global ex-U.S. Real Estate Index Fund
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, 2017, 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) and shareholder reporting. Marketing and distribution
expenses are allocated to each class of shares based on a method approved by the board of trustees.
Income, other non-class-specific expenses, and gains and losses on investments are allocated to
each class of shares based on its relative net assets.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and
the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative,
marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These
costs of operations are allocated to the fund based on methods and guidelines approved by the board
of trustees. Vanguard does not require reimbursement in the current period for certain costs of
operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability
for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in
Vanguard. At April 30, 2017, the fund had contributed to Vanguard capital in the amount of $299,000,
representing 0.01% of the fund’s net assets and 0.12% of Vanguard’s capitalization. The fund’s
trustees and officers are also directors and employees, respectively, of Vanguard.
30
Global ex-U.S. Real Estate Index Fund
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).
The following table summarizes the market value of the fund’s investments as of April 30, 2017,
based on the inputs used to value them:
Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 228,096 4,407,162 11,616
Temporary Cash Investments 147,754 1,898 —
Futures Contracts—Liabilities1 (85) — —
Total 375,765 4,409,060 11,616
1 Represents variation margin on the last day of the reporting period.
D. At April 30, 2017, the aggregate settlement value of open futures contracts and the related
unrealized appreciation (depreciation) were:
($000)
Aggregate
Number of Settlement Unrealized
Long (Short) Value Appreciation
Futures Contracts Expiration Contracts Long (Short) (Depreciation)
E-mini S&P 500 Index June 2017 304 36,184 507
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized
gain (loss) for tax purposes.
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.
31
Global ex-U.S. Real Estate Index Fund
During the six months ended April 30, 2017, the fund realized net foreign currency losses of
$765,000, which decreased distributable net income for tax purposes; accordingly, such losses have
been reclassified from accumulated net realized losses to overdistributed net investment income.
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, 2017,
the fund realized gains on the sale of passive foreign investment companies of $22,906,000, 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 $62,162,000 at April 30, 2017.
During the six months ended April 30, 2017, the fund realized $30,175,000 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, 2016, the fund had available capital losses totaling $88,065,000 to offset
future net capital gains. Of this amount, $1,948,000 is subject to expiration on October 31, 2019.
Capital losses of $86,117,000 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, 2017; should the fund realize net capital losses for
the year, the losses will be added to the loss carryforward balance above.
At April 30, 2017, the cost of investment securities for tax purposes was $4,949,521,000. Net
unrealized depreciation of investment securities for tax purposes was $152,995,000, consisting
of unrealized gains of $238,019,000 on securities that had risen in value since their purchase and
$391,014,000 in unrealized losses on securities that had fallen in value since their purchase.
F. During the six months ended April 30, 2017, the fund purchased $913,672,000 of investment
securities and sold $592,112,000 of investment securities, other than temporary cash investments.
Purchases and sales include $740,730,000 and $524,230,000, respectively, in connection with
in-kind purchases and redemptions of the fund’s capital shares.
32
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, 2017 October 31, 2016
Amount Shares Amount Shares
($000) (000) ($000) (000)
Investor Shares
Issued1 4,684 226 9,439 444
Issued in Lieu of Cash Distributions 1,513 77 1,605 76
Redeemed2 (5,171) (249) (9,785) (462)
Net Increase (Decrease)—Investor Shares 1,026 54 1,259 58
ETF Shares
Issued1 903,973 17,302 623,142 11,610
Issued in Lieu of Cash Distributions — — — —
Redeemed2 (548,895) (10,900) (91,670) (1,900)
Net Increase (Decrease)—ETF Shares 355,078 6,402 531,472 9,710
Admiral Shares
Issued1 40,467 1,293 69,738 2,160
Issued in Lieu of Cash Distributions 9,818 331 9,885 310
Redeemed2 (29,484) (944) (53,677) (1,680)
Net Increase (Decrease)—Admiral Shares 20,801 680 25,946 790
Institutional Shares
Issued1 7,772 72 8,742 83
Issued in Lieu of Cash Distributions 3,281 33 3,610 34
Redeemed2 — — (14,517) (132)
Net Increase (Decrease)—Institutional Shares 11,053 105 (2,165) (15)
1 Includes purchase fees for fiscal 2017 and 2016 of $3,000 and $266,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2017 and 2016 of $78,000 and $170,000, respectively (fund totals).
At April 30, 2017, 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.
H. Management has determined that no material events or transactions occurred subsequent to
April 30, 2017, that would require recognition or disclosure in these financial statements.
33
About Your Fund’s Expenses
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 selling securities.Further, the expenses do not include any purchase, redemption, or account service fees described inthe fund prospectus. If such fees were applied to your account, your costs would be higher. Yourfund 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.
34
35
Six Months Ended April 30, 2017
Global ex-U.S. Real Estate Index Fund
Beginning
Account Value
10/31/2016
Ending
Account Value
4/30/2017
Expenses
Paid During
Period
Based on Actual Fund Return
Investor Shares $1,000.00 $1,052.59 $1.83
ETF Shares 1,000.00 1,053.61 0.76
Admiral Shares 1,000.00 1,053.82 0.76
Institutional Shares 1,000.00 1,053.88 0.66
Based on Hypothetical 5% Yearly Return
Investor Shares $1,000.00 $1,023.01 $1.81
ETF Shares 1,000.00 1,024.05 0.75
Admiral Shares 1,000.00 1,024.05 0.75
Institutional Shares 1,000.00 1,024.15 0.65
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for thatperiod are 0.36% for Investor Shares, 0.15% for ETF Shares, 0.15% for Admiral Shares, and 0.13% 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-month period(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 courses 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
outperformance 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.
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 its
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.
Trustees Approve Advisory Arrangement
36
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.
37
Glossary
38
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.
39
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 197 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. 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 Trustee1
F. William McNabb III
Born 1957. Trustee Since July 2009. Chairman of
the Board. Principal Occupation(s) During the Past
Five Years and Other Experience: Chairman of the
Board of The Vanguard Group, Inc., and of each of the
investment companies served by The Vanguard Group,
since January 2010; Director of The Vanguard Group
since 2008; Chief Executive Officer and President of
The Vanguard Group, and of each of the investment
companies served by The Vanguard Group, since 2008;
Director of Vanguard Marketing Corporation; Managing
Director of The Vanguard Group (1995–2008).
Independent Trustees
Emerson U. Fullwood
Born 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 manage-
ment products and services); 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 United Way of Rochester, the
University of Rochester Medical Center, Monroe
Community College Foundation, North Carolina
A&T University, and Roberts Wesleyan College.
Rajiv L. Gupta
Born 1945. Trustee Since December 2001.2 Principal
Occupation(s) During the Past Five Years and Other
Experience: Chairman and Chief Executive Officer
(retired 2009) and President (2006–2008) of Rohm
and Haas Co. (chemicals); Director of Arconic Inc.
(diversified manufacturer), HP Inc. (printer and personal
computer manufacturing), and Delphi Automotive plc
(automotive components); Senior Advisor at New
Mountain Capital.
Amy Gutmann
Born 1949. Trustee Since June 2006. Principal
Occupation(s) During the Past Five Years and Other
Experience: President 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; Chair of the Presidential
Commission for the Study of Bioethical Issues.
JoAnn Heffernan Heisen
Born 1950. Trustee Since July 1998. Principal
Occupation(s) During the Past Five Years and Other
Experience: Corporate Vice President and Member of
the Executive Committee (1997–2008), Chief Global
Diversity Officer (retired 2008), Vice President and
Chief Information Officer (1997–2005), Controller
(1995–1997), Treasurer (1991–1995), and Assistant
Treasurer (1989–1991) of Johnson & Johnson
(pharmaceuticals/medical devices/consumer products);
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 1949. Trustee Since October 2009. Principal
Occupation(s) During the Past Five Years and Other
Experience: President and Chief Operating Officer
(retired 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 SKF AB
(industrial machinery), Hyster-Yale Materials Handling,
Inc. (forklift trucks), and 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 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) at IBM (information technology
services); Fiduciary Member of IBM’s Retirement Plan
Committee (2004–2013); Director of the Dow Chemical
Company; Member of the Council on Chicago Booth.
Scott C. Malpass
Born 1962. Trustee Since March 2012. Principal
Occupation(s) During the Past Five Years and Other
Experience: Chief Investment Officer and Vice
President at the University of Notre Dame; Assistant
Professor of Finance at the Mendoza College of
Business at Notre Dame; Member of the Notre Dame
403(b) Investment Committee, the Board of Advisors
for Spruceview Capital Partners, and the Investment
Advisory Committee of Major League Baseball; Board
Member of TIFF Advisory Services, Inc., and Catholic
Investment Services, Inc. (investment advisors);
Member of the Board of Superintendence of the
Institute for the Works of Religion.
André F. Perold
Born 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.
Peter F. Volanakis
Born 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); 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 1967. Investment Stewardship Officer Since
February 2017. Principal Occupation(s) During the
Past Five Years and Other Experience: Principal of
The Vanguard Group, Inc.; Treasurer (2015–2017),
Controller (2010–2015), and Assistant Controller
(2001–2010) of each of the investment companies
served by The Vanguard Group.
Thomas J. Higgins
Born 1957. Chief Financial Officer Since September
2008. Principal Occupation(s) During the Past Five
Years and Other Experience: Principal of The Vanguard
Group, Inc.; Chief Financial Officer of each of the
investment companies served by The Vanguard Group;
Treasurer of each of the investment companies served
by The Vanguard Group (1998–2008).
Peter Mahoney
Born 1974. Controller Since May 2015. Principal
Occupation(s) During the Past Five Years and Other
Experience: Principal of The Vanguard Group, Inc.;
Controller of each of the investment companies served
by The Vanguard Group; Head of International Fund
Services at The Vanguard Group (2008–2014).
Anne E. Robinson
Born 1970. Secretary Since September 2016. Principal
Occupation(s) During the Past Five Years and Other
Experience: Managing Director of The Vanguard Group,
Inc.; General Counsel of The Vanguard Group; Secretary
of The Vanguard Group and of each of the investment
companies served by The Vanguard Group; Director
and Senior Vice President of Vanguard Marketing
Corporation; Managing Director and General Counsel
of Global Cards and Consumer Services at Citigroup
(2014–2016); Counsel at American Express
(2003–2014).
Michael Rollings
Born 1963. Treasurer Since February 2017. Principal
Occupation(s) During the Past Five Years and Other
Experience: Managing Director of The Vanguard Group,
Inc.; Treasurer of each of the investment companies
served by The Vanguard Group; Executive Vice
President and Chief Financial Officer of MassMutual
Financial Group (2006–2016).
Vanguard Senior Management Team
Mortimer J. Buckley James M. Norris
John James Thomas M. Rampulla
Martha G. King Glenn W. Reed
John T. Marcante Karin A. Risi
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
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
P.O. Box 2600
Valley Forge, PA 19482-2600
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447
Direct Investor Account Services > 800-662-2739
Institutional Investor Services > 800-523-1036
Text Telephone for PeopleWho Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.
All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.
You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.
You can review and copy information about your fund atthe SEC’s Public Reference Room in Washington, D.C. Tofind out more about this public service, call the SEC at202-551-8090. Information about your fund is alsoavailable on the SEC’s website, and you can receivecopies of this information, for a fee, by sending arequest in either of two ways: via email addressed topublicinfo@sec.gov or via regular mail addressed to thePublic Reference Section, Securities and ExchangeCommission, Washington, DC 20549-1520.
The index is a product of S&P Dow Jones Indices LLC(“SPDJI”), and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registeredtrademarks of Standard & Poor’s Financial Services LLC(“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); S&P®and S&P 500® are trademarks of S&P; and thesetrademarks have been licensed for use by SPDJI andsublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, soldor promoted by SPDJI, Dow Jones, S&P, or theirrespective affiliates and none of such parties make anyrepresentation regarding the advisability of investing insuch product(s) nor do they have any liability for anyerrors, omissions, or interruptions of the index.
© 2017 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.
Q7382 062017
top related