Vanguard Real Estate Index Fund |
Vanguard Real Estate II Index Fund |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund’s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended July 31, 2022 | |||
Beginning
Account Value 1/31/2022 |
Ending
Account Value 7/31/2022 |
Expenses
Paid During Period | |
Based on Actual Fund Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $ 939.70 | $1.20 |
ETF Shares | 1,000.00 | 940.50 | 0.58 |
Admiral™ Shares | 1,000.00 | 940.60 | 0.58 |
Institutional Shares | 1,000.00 | 940.50 | 0.48 |
Real Estate II Index Fund | $1,000.00 | $ 940.70 | $0.38 |
Based on Hypothetical 5% Yearly Return | |||
Real Estate Index Fund | |||
Investor Shares | $1,000.00 | $1,023.56 | $1.25 |
ETF Shares | 1,000.00 | 1,024.20 | 0.60 |
Admiral Shares | 1,000.00 | 1,024.20 | 0.60 |
Institutional Shares | 1,000.00 | 1,024.30 | 0.50 |
Real Estate II Index Fund | $1,000.00 | $1,024.40 | $0.40 |
Diversified Real Estate Activities | 0.1% |
Diversified REITs | 2.7 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.6 |
Industrial REITs | 11.8 |
Office REITs | 5.9 |
Real Estate Development | 0.2 |
Real Estate Operating Companies | 0.5 |
Real Estate Services | 4.0 |
Residential REITs | 15.1 |
Retail REITs | 11.3 |
Specialized REITs | 37.7 |
Shares | Market
Value• ($000) | |||||
Temporary Cash Investments (0.6%) | ||||||
Money Market Fund (0.6%) | ||||||
6,7 | Vanguard Market Liquidity Fund, 1.903% (Cost $482,230) |
4,824,316 | 482,239 | |||
Total Investments (100.0%) (Cost $66,280,672) |
76,718,222 | |||||
Other Assets and Liabilities—Net (0.0%) | (9,314) | |||||
Net Assets (100%) | 76,708,908 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $84,190,000. |
2 | Security value determined using significant unobservable inputs. |
3 | “Other” represents securities that are not classified by the fund’s benchmark index. |
4 | Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group. |
5 | Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments. |
6 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
7 | Collateral of $88,289,000 was received for securities on loan, of which $84,183,000 is held in Vanguard Market Liquidity Fund and $4,106,000 is held in cash. |
REIT—Real Estate Investment Trust. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination
Date |
Counterparty | Notional
Amount ($000) |
Floating
Interest Rate Received (Paid)1 (%) |
Value
and Unrealized Appreciation ($000) |
Value
and Unrealized (Depreciation) ($000) |
American Homes 4 Rent Class A | 8/31/22 | BANA | 37,212 | (1.809) | 2,511 | — |
Digital Realty Trust Inc. | 1/31/23 | GSI | 30,245 | (2.153) | 2,853 | — |
Digital Realty Trust Inc. | 8/31/22 | BANA | 48,687 | (1.797) | 915 | — |
Equity Residential | 8/31/22 | BANA | 14,444 | (1.836) | 1,339 | — |
Equity Residential | 8/31/22 | BANA | 28,888 | (1.813) | 2,678 | — |
Redfin Corp. | 1/31/23 | GSI | 3,059 | (2.144) | — | (15) |
Seritage Growth Properties Class A | 1/31/23 | GSI | 4,312 | (2.129) | 446 | — |
Simon Property Group Inc. | 1/31/23 | GSI | 38,544 | (2.165) | 4,894 | — |
VICI Properties Inc. | 8/31/22 | BANA | 160,866 | (2.234) | 25,436 | — |
Welltower Inc. | 8/31/22 | BANA | 61,764 | (1.804) | 2,910 | — |
43,982 | (15) |
1 | Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
BANA—Bank of America, N.A. | |
GSI—Goldman Sachs International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $58,590,407) | 67,257,782 |
Affiliated Issuers (Cost $482,230) | 482,239 |
Vanguard Real Estate II Index Fund (Cost $7,208,035) | 8,978,201 |
Total Investments in Securities | 76,718,222 |
Investment in Vanguard | 2,409 |
Cash | 4,106 |
Receivables for Investment Securities Sold | 20,197 |
Receivables for Accrued Income | 128,280 |
Receivables for Capital Shares Issued | 18,678 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 43,982 |
Total Assets | 76,935,874 |
Liabilities | |
Due to Custodian | 9,652 |
Payables for Investment Securities Purchased | 102,763 |
Collateral for Securities on Loan | 88,289 |
Payables for Capital Shares Redeemed | 22,634 |
Payables to Vanguard | 3,613 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 15 |
Total Liabilities | 226,966 |
Net Assets | 76,708,908 |
1 Includes $84,190 of securities on loan. |
Statement of Assets and Liabilities (continued)
| |
At July 31, 2022, net assets consisted of: |
|
($000s, except shares and per-share amounts) | Amount |
Paid-in Capital | 66,875,970 |
Total Distributable Earnings (Loss) | 9,832,938 |
Net Assets | 76,708,908 |
Investor Shares—Net Assets | |
Applicable
to 4,475,070 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
147,117 |
Net Asset Value Per Share—Investor Shares | $32.87 |
ETF Shares—Net Assets | |
Applicable
to 413,914,080 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
40,954,284 |
Net Asset Value Per Share—ETF Shares | $98.94 |
Admiral Shares—Net Assets | |
Applicable
to 170,284,766 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
23,878,936 |
Net Asset Value Per Share—Admiral Shares | $140.23 |
Institutional Shares—Net Assets | |
Applicable
to 540,393,314 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
11,728,571 |
Net Asset Value Per Share—Institutional Shares | $21.70 |
Six
Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers | 1,063,139 |
Dividends—Affiliated Issuers | 30,576 |
Dividends—Vanguard Real Estate II Index Fund | 117,477 |
Interest—Affiliated Issuers | 645 |
Securities Lending—Net | 660 |
Total Income | 1,212,497 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 887 |
Management and Administrative—Investor Shares | 213 |
Management and Administrative—ETF Shares | 22,748 |
Management and Administrative—Admiral Shares | 12,902 |
Management and Administrative—Institutional Shares | 5,143 |
Marketing and Distribution—Investor Shares | 6 |
Marketing and Distribution—ETF Shares | 722 |
Marketing and Distribution—Admiral Shares | 459 |
Marketing and Distribution—Institutional Shares | 186 |
Custodian Fees | 98 |
Shareholders’ Reports—Investor Shares | 1 |
Shareholders’ Reports—ETF Shares | 675 |
Shareholders’ Reports—Admiral Shares | 173 |
Shareholders’ Reports—Institutional Shares | 64 |
Trustees’ Fees and Expenses | 20 |
Other Expenses | 6 |
Total Expenses | 44,303 |
Expenses Paid Indirectly | (23) |
Net Expenses | 44,280 |
Net Investment Income | 1,168,217 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received—Unaffiliated Issuers | 45,697 |
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund | — |
Investment Securities Sold—Unaffiliated Issuers1 | 1,688,874 |
Investment Securities Sold—Affiliated Issuers2 | 21,399 |
Investment Securities Sold—Vanguard Real Estate II Index Fund | — |
Swap Contracts | (39,546) |
Realized Net Gain (Loss) | 1,716,424 |
Statement of Operations (continued) | |
Six
Months Ended July 31, 2022 | |
($000) | |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (7,655,293) |
Investment Securities—Affiliated Issuers | 204,832 |
Investment Securities—Vanguard Real Estate II Index Fund | (683,638) |
Swap Contracts | 43,967 |
Change in Unrealized Appreciation (Depreciation) | (8,090,132) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,205,491) |
1 | Includes $1,805,234,000 of net gain (loss) resulting from in-kind redemptions. |
2 | Includes $32,314,000 of net gain (loss) resulting from in-kind redemptions. |
Six
Months Ended July 31, 2022 |
Year
Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 1,168,217 | 1,487,532 | |
Realized Net Gain (Loss) | 1,716,424 | 2,507,302 | |
Change in Unrealized Appreciation (Depreciation) | (8,090,132) | 14,077,791 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,205,491) | 18,072,625 | |
Distributions | |||
Investor Shares | (1,879) | (3,637) | |
ETF Shares | (490,481) | (811,715) | |
Admiral Shares | (276,428) | (463,925) | |
Institutional Shares | (135,640) | (220,900) | |
Return of Capital | |||
Investor Shares | — | (1,874) | |
ETF Shares | — | (418,428) | |
Admiral Shares | — | (239,147) | |
Institutional Shares | — | (113,871) | |
Total Distributions | (904,428) | (2,273,497) | |
Capital Share Transactions | |||
Investor Shares | (33,562) | (35,113) | |
ETF Shares | (2,289,715) | 6,252,486 | |
Admiral Shares | (70,519) | 1,052,588 | |
Institutional Shares | 490,722 | 221,639 | |
Net Increase (Decrease) from Capital Share Transactions | (1,903,074) | 7,491,600 | |
Total Increase (Decrease) | (8,012,993) | 23,290,728 | |
Net Assets | |||
Beginning of Period | 84,721,901 | 61,431,173 | |
End of Period | 76,708,908 | 84,721,901 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period |
Six Months Ended July 31, 2022 |
Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $35.37 | $28.23 | $31.21 | $27.69 | $26.40 | $27.38 |
Investment Operations | ||||||
Net Investment Income1 | .459 | .602 | .586 | .719 | .787 | .761 |
Net Realized and Unrealized Gain (Loss) on Investments | (2.600) | 7.475 | (2.498) | 3.801 | 1.639 | (.614) |
Total from Investment Operations | (2.141) | 8.077 | (1.912) | 4.520 | 2.426 | .147 |
Distributions | ||||||
Dividends from Net Investment Income | (.359) | (.620) | (.624) | (.752) | (.851) | (.788) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.011) |
Return of Capital | — | (.317) | (.444) | (.248) | (.285) | (.328) |
Total Distributions | (.359) | (.937) | (1.068) | (1.000) | (1.136) | (1.127) |
Net Asset Value, End of Period | $32.87 | $35.37 | $28.23 | $31.21 | $27.69 | $26.40 |
Total Return2 | -6.03% | 28.73% | -5.88% | 16.59% | 9.53% | 0.45% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $147 | $196 | $188 | $243 | $1,871 | $2,143 |
Ratio of Total Expenses to Average Net Assets | 0.25% 3 | 0.26% | 0.26% | 0.26% | 0.25% | 0.26% |
Ratio of Net Investment Income to Average Net Assets | 2.58% | 1.77% | 2.18% | 2.48% | 3.02% | 2.87% |
Portfolio Turnover Rate4 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.25%. |
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. |
ETF Shares | ||||||
For a Share Outstanding Throughout Each Period |
Six Months Ended July 31, 2022 |
Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $106.44 | $84.96 | $93.93 | $83.36 | $79.47 | $82.43 |
Investment Operations | ||||||
Net Investment Income1 | 1.470 | 1.960 | 1.889 | 2.335 | 2.487 | 2.499 |
Net Realized and Unrealized Gain (Loss) on Investments | (7.824) | 22.486 | (7.525) | 11.379 | 4.934 | (1.945) |
Total from Investment Operations | (6.354) | 24.446 | (5.636) | 13.714 | 7.421 | .554 |
Distributions | ||||||
Dividends from Net Investment Income | (1.146) | (1.943) | (1.947) | (2.364) | (2.646) | (2.458) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.034) |
Return of Capital | — | (1.023) | (1.387) | (.780) | (.885) | (1.022) |
Total Distributions | (1.146) | (2.966) | (3.334) | (3.144) | (3.531) | (3.514) |
Net Asset Value, End of Period | $98.94 | $106.44 | $84.96 | $93.93 | $83.36 | $79.47 |
Total Return | -5.95% | 28.88% | -5.80% | 16.70% | 9.70% | 0.59% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $40,954 | $46,673 | $32,064 | $37,682 | $30,857 | $32,377 |
Ratio of Total Expenses to Average Net Assets | 0.12% 2 | 0.12% | 0.12% | 0.12% | 0.12% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.76% | 1.90% | 2.33% | 2.60% | 3.15% | 3.01% |
Portfolio Turnover Rate3 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
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. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period |
Six Months Ended July 31, 2022 |
Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $150.85 | $120.40 | $133.12 | $118.14 | $112.63 | $116.83 |
Investment Operations | ||||||
Net Investment Income1 | 2.096 | 2.761 | 2.677 | 3.315 | 3.507 | 3.538 |
Net Realized and Unrealized Gain (Loss) on Investments | (11.091) | 31.890 | (10.672) | 16.121 | 7.008 | (2.761) |
Total from Investment Operations | (8.995) | 34.651 | (7.995) | 19.436 | 10.515 | .777 |
Distributions | ||||||
Dividends from Net Investment Income | (1.625) | (2.770) | (2.759) | (3.350) | (3.751) | (3.483) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.048) |
Return of Capital | — | (1.431) | (1.966) | (1.106) | (1.254) | (1.447) |
Total Distributions | (1.625) | (4.201) | (4.725) | (4.456) | (5.005) | (4.978) |
Net Asset Value, End of Period | $140.23 | $150.85 | $120.40 | $133.12 | $118.14 | $112.63 |
Total Return2 | -5.94% | 28.91% | -5.74% | 16.73% | 9.69% | 0.58% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $23,879 | $25,764 | $19,702 | $23,274 | $18,223 | $17,757 |
Ratio of Total Expenses to Average Net Assets | 0.12% 3 | 0.12% | 0.12% | 0.12% | 0.11% | 0.12% |
Ratio of Net Investment Income to Average Net Assets | 2.78% | 1.90% | 2.33% | 2.60% | 3.16% | 3.01% |
Portfolio Turnover Rate4 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%. |
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. |
Institutional Shares | ||||||
For a Share Outstanding Throughout Each Period |
Six Months Ended July 31, 2022 |
Year Ended January 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $23.35 | $18.64 | $20.60 | $18.28 | $17.43 | $18.08 |
Investment Operations | ||||||
Net Investment Income1 | .328 | .432 | .421 | .518 | .543 | .568 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.724) | 4.933 | (1.646) | 2.496 | 1.085 | (.444) |
Total from Investment Operations | (1.396) | 5.365 | (1.225) | 3.014 | 1.628 | .124 |
Distributions | ||||||
Dividends from Net Investment Income | (.254) | (.432) | (.429) | (.522) | (.583) | (.542) |
Distributions from Realized Capital Gains | — | — | — | — | — | (.007) |
Return of Capital | — | (.223) | (.306) | (.172) | (.195) | (.225) |
Total Distributions | (.254) | (.655) | (.735) | (.694) | (.778) | (.774) |
Net Asset Value, End of Period | $21.70 | $23.35 | $18.64 | $20.60 | $18.28 | $17.43 |
Total Return | -5.95% | 28.91% | -5.68% | 16.77% | 9.70% | 0.60% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $11,729 | $12,089 | $9,478 | $10,027 | $8,206 | $8,176 |
Ratio of Total Expenses to Average Net Assets | 0.10% 2 | 0.10% | 0.10% | 0.10% | 0.09% | 0.10% |
Ratio of Net Investment Income to Average Net Assets | 2.81% | 1.92% | 2.37% | 2.63% | 3.18% | 3.03% |
Portfolio Turnover Rate3 | 4% | 7% | 8% | 6% | 24% | 6% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%. |
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. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $23,000 (an annual rate of less than 0.01% of average net assets). |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level
1 ($000) |
Level
2 ($000) |
Level
3 ($000) |
Total
($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 76,235,969 | — | 14 | 76,235,983 |
Temporary Cash Investments | 482,239 | — | — | 482,239 |
Total | 76,718,208 | — | 14 | 76,718,222 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 43,982 | — | 43,982 |
Liabilities | ||||
Swap Contracts | — | 15 | — | 15 |
E. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount
($000) | |
Tax Cost | 66,532,469 |
Gross Unrealized Appreciation | 16,444,842 |
Gross Unrealized Depreciation | (6,215,122) |
Net Unrealized Appreciation (Depreciation) | 10,229,720 |
F. | During the six months ended July 31, 2022, the fund purchased $6,666,599,000 of investment securities and sold $8,517,790,000 of investment securities, other than temporary cash investments. Purchases and sales include $2,716,008,000 and $5,022,320,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended July 31, 2022 |
Year Ended January 31, 2022 | ||||
Amount
($000) |
Shares
(000) |
Amount
($000) |
Shares
(000) | ||
Investor Shares | |||||
Issued | 8,183 | 239 | 40,853 | 1,192 | |
Issued in Lieu of Cash Distributions | 1,879 | 58 | 5,511 | 161 | |
Redeemed | (43,624) | (1,361) | (81,477) | (2,463) | |
Net Increase (Decrease)—Investor Shares | (33,562) | (1,064) | (35,113) | (1,110) | |
ETF Shares | |||||
Issued | 2,739,304 | 26,810 | 12,323,320 | 119,786 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed | (5,029,019) | (51,400) | (6,070,834) | (58,700) | |
Net Increase (Decrease)—ETF Shares | (2,289,715) | (24,590) | 6,252,486 | 61,086 | |
Admiral Shares | |||||
Issued | 1,491,343 | 10,427 | 4,265,102 | 29,377 | |
Issued in Lieu of Cash Distributions | 242,660 | 1,768 | 616,726 | 4,188 | |
Redeemed | (1,804,522) | (12,701) | (3,829,240) | (26,405) | |
Net Increase (Decrease)—Admiral Shares | (70,519) | (506) | 1,052,588 | 7,160 | |
Institutional Shares | |||||
Issued | 1,257,128 | 57,103 | 2,230,405 | 98,845 | |
Issued in Lieu of Cash Distributions | 125,971 | 5,933 | 311,998 | 13,695 | |
Redeemed | (892,377) | (40,438) | (2,320,764) | (103,325) | |
Net Increase (Decrease)—Institutional Shares | 490,722 | 22,598 | 221,639 | 9,215 |
Current Period Transactions | ||||||||
Jan.
31, 2022 Market Value ($000) |
Purchases
at Cost ($000) |
Proceeds
from Securities Sold1 ($000) |
Realized
Net Gain (Loss) ($000) |
Change
in Unrealized App. (Dep.) ($000) |
Income
($000) |
Capital
Gain Distributions Received ($000) |
Jul.
31, 2022 Market Value ($000) | |
Easterly Government Properties Inc. | 90,343 | 5,544 | 16,623 | (251) | (2,921) | 2,164 | — | NA 2 |
Equity Commonwealth | NA 3 | 10,687 | 27,803 | (1,498) | 12,511 | — | — | NA 2 |
Hudson Pacific Properties Inc. | NA 3 | 11,338 | 17,834 | (4,079) | (57,207) | 3,572 | — | NA 2 |
Vanguard Market Liquidity Fund | 147,613 | NA 4 | NA 4 | (50) | (14) | 645 | — | 482,239 |
Vanguard Real Estate II Index Fund | 9,542,041 | 117,477 | — | — | (683,638) | 117,477 | — | 8,978,201 |
VICI Properties Inc. | NA 3,5 | 488,161 | 282,110 | 27,277 | 252,463 | 24,840 | — | NA 2 |
Total | 9,779,997 | 633,207 | 344,370 | 21,399 | (478,806) | 148,698 | — | 9,460,440 |
1 | Does not include adjustments related to return of capital. |
2 | Not applicable—at July 31, 2022, the security was still held, but the issuer was no longer an affiliated company of the fund. |
3 | Not applicable—at January 31, 2022, the issuer was not an affiliated company of the fund. |
4 | Not applicable—purchases and sales are for temporary cash investment purposes. |
5 | Not applicable—in April 2022, VICI Properties Inc. acquired MGM Growth Properties LLC. |
I. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |
Diversified Real Estate Activities | 0.1% |
Diversified REITs | 2.7 |
Health Care REITs | 8.1 |
Hotel & Resort REITs | 2.5 |
Industrial REITs | 11.6 |
Office REITs | 5.9 |
Real Estate Development | 0.2 |
Real Estate Operating Companies | 0.5 |
Real Estate Services | 4.0 |
Residential REITs | 15.2 |
Retail REITs | 11.3 |
Specialized REITs | 37.9 |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination
Date |
Counterparty | Notional
Amount ($000) |
Floating
Interest Rate Received (Paid)1 (%) |
Value
and Unrealized Appreciation ($000) |
Value
and Unrealized (Depreciation) ($000) |
Americold Realty Trust Inc. | 1/31/23 | GSI | 7,788 | (2.093) | 396 | — |
Park Hotels & Resorts Inc. | 1/31/23 | GSI | 5,544 | (2.110) | 690 | — |
1,086 | — |
1 | Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly. |
GSI—Goldman Sachs International. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $7,229,000) | 8,963,469 |
Affiliated Issuers (Cost $26,840) | 26,840 |
Total Investments in Securities | 8,990,309 |
Investment in Vanguard | 316 |
Receivables for Investment Securities Sold | 1,218 |
Receivables for Accrued Income | 16,915 |
Unrealized Appreciation—Over-the-Counter Swap Contracts | 1,086 |
Total Assets | 9,009,844 |
Liabilities | |
Due to Custodian | 1,218 |
Payables for Investment Securities Purchased | 15,788 |
Collateral for Securities on Loan | 14,336 |
Payables to Vanguard | 301 |
Total Liabilities | 31,643 |
Net Assets | 8,978,201 |
1 Includes $13,847 of securities on loan. | |
At July 31, 2022, net assets consisted of: |
|
Paid-in Capital | 7,206,235 |
Total Distributable Earnings (Loss) | 1,771,966 |
Net Assets | 8,978,201 |
Net Assets | |
Applicable
to 376,527,417 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
8,978,201 |
Net Asset Value Per Share | $23.84 |
Six
Months Ended July 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends | 142,749 |
Interest 1 | 17 |
Securities Lending—Net | 70 |
Total Income | 142,836 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 618 |
Management and Administrative | 2,872 |
Marketing and Distribution | 79 |
Custodian Fees | 13 |
Shareholders’ Reports | — |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 6 |
Total Expenses | 3,590 |
Expenses Paid Indirectly | (1) |
Net Expenses | 3,589 |
Net Investment Income | 139,247 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received | 5,521 |
Investment Securities Sold1 | 14,480 |
Swap Contracts | (1,523) |
Realized Net Gain (Loss) | 18,478 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | (722,651) |
Swap Contracts | 1,086 |
Change in Unrealized Appreciation (Depreciation) | (721,565) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (563,840) |
1 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $17,000, ($6,000), and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six
Months Ended July 31, 2022 |
Year
Ended January 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 139,247 | 176,897 | |
Realized Net Gain (Loss) | 18,478 | 53,384 | |
Change in Unrealized Appreciation (Depreciation) | (721,565) | 1,912,230 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (563,840) | 2,142,511 | |
Distributions | |||
Net Investment Income and/or Realized Capital Gains | (117,477) | (186,333) | |
Return of Capital | — | (76,790) | |
Total Distributions | (117,477) | (263,123) | |
Capital Share Transactions | |||
Issued | — | — | |
Issued in Lieu of Cash Distributions | 117,477 | 263,123 | |
Redeemed | — | — | |
Net Increase (Decrease) from Capital Share Transactions | 117,477 | 263,123 | |
Total Increase (Decrease) | (563,840) | 2,142,511 | |
Net Assets | |||
Beginning of Period | 9,542,041 | 7,399,530 | |
End of Period | 8,978,201 | 9,542,041 |
For a Share Outstanding Throughout Each Period |
Six Months Ended July 31, 2022 |
Year Ended January 31, | September 26, 20171 to January 31, 2018 | |||
2022 | 2021 | 2020 | 2019 | |||
Net Asset Value, Beginning of Period | $25.69 | $20.50 | $22.64 | $20.10 | $19.17 | $20.00 |
Investment Operations | ||||||
Net Investment Income2 | .373 | .484 | .471 | .571 | .611 | .268 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.908) | 5.427 | (1.808) | 2.752 | 1.176 | (.834) |
Total from Investment Operations | (1.535) | 5.911 | (1.337) | 3.323 | 1.787 | (.566) |
Distributions | ||||||
Dividends from Net Investment Income | (.315) | (.477) | (.465) | (.590) | (.626) | (.225) |
Distributions from Realized Capital Gains | — | (.034) | — | — | — | (.030) |
Return of Capital | — | (.210) | (.338) | (.193) | (.231) | (.009) |
Total Distributions | (.315) | (.721) | (.803) | (.783) | (.857) | (.264) |
Net Asset Value, End of Period | $23.84 | $25.69 | $20.50 | $22.64 | $20.10 | $19.17 |
Total Return | -5.93% | 28.96% | -5.70% | 16.78% | 9.68% | -2.89% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $8,978 | $9,542 | $7,400 | $7,848 | $6,719 | $6,126 |
Ratio of Total Expenses to Average Net Assets | 0.08% 3 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 4 |
Ratio of Net Investment Income to Average Net Assets | 2.90% | 1.95% | 2.41% | 2.63% | 3.22% | 3.84% 4 |
Portfolio Turnover Rate | 3% | 6% | 4% | 3% | 23% | 1% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Inception. |
2 | Calculated based on average shares outstanding. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%. |
4 | Annualized. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended July 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $1,000 (an annual rate of less than 0.01% of average net assets). |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level
1 ($000) |
Level
2 ($000) |
Level
3 ($000) |
Total
($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 8,963,469 | — | — | 8,963,469 |
Temporary Cash Investments | 26,840 | — | — | 26,840 |
Total | 8,990,309 | — | — | 8,990,309 |
Derivative Financial Instruments | ||||
Assets | ||||
Swap Contracts | — | 1,086 | — | 1,086 |
E. | As of July 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount
($000) | |
Tax Cost | 7,288,336 |
Gross Unrealized Appreciation | 2,502,589 |
Gross Unrealized Depreciation | (799,530) |
Net Unrealized Appreciation (Depreciation) | 1,703,059 |
F. | During the six months ended July 31, 2022, the fund purchased $461,971,000 of investment securities and sold $306,012,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six
Months Ended July 31, 2022 |
Year
Ended January 31, 2022 | ||
Shares
(000) |
Shares
(000) | ||
Issued | — | — | |
Issued in Lieu of Cash Distributions | 5,076 | 10,506 | |
Redeemed | — | — | |
Net Increase (Decrease) in Shares Outstanding | 5,076 | 10,506 |
H. | Management has determined that no events or transactions occurred subsequent to July 31, 2022, that would require recognition or disclosure in these financial statements. |