Semiannual Report  |  July 31, 2022
Vanguard Real Estate Index Funds
Vanguard Real Estate Index Fund
Vanguard Real Estate II Index Fund

Contents

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Table of Contents
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 ongoing costs 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 in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
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Table of Contents
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
The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the Real Estate Index Fund, 0.25% for Investor Shares, 0.12% for ETF Shares, 0.12% for Admiral Shares, and 0.10% for Institutional Shares; and for the Real Estate II Index Fund, 0.08%. The dollar amounts 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).
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Table of Contents
Real Estate Index Fund
Fund Allocation
As of July 31, 2022
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
The table reflects the fund’s investments, except for short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.
The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
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Table of Contents
Real Estate Index Fund
Financial Statements (unaudited)
Schedule of Investments
As of July 31, 2022
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
          Shares Market
Value

($000)
Equity Real Estate Investment Trusts (REITs) (95.2%)
Diversified REITs (2.4%)
WP Carey Inc.   8,743,103    780,759
STORE Capital Corp.  11,303,279    328,021
Broadstone Net Lease Inc.   7,497,078    169,959
Essential Properties Realty Trust Inc.   5,761,575    138,969
Global Net Lease Inc.   4,765,303     71,908
American Assets Trust Inc.   2,359,709     71,334
Alexander & Baldwin Inc.   3,326,594     66,233
Empire State Realty Trust Inc. Class A   6,595,841     56,263
iStar Inc.   3,167,456     52,928
Armada Hoffler Properties Inc.   3,084,492     43,738
Gladstone Commercial Corp.   1,731,930     36,284
One Liberty Properties Inc.     768,149     21,316
                     1,837,712
Health Care REITs (7.1%)
Welltower Inc.  19,766,417  1,706,632
Ventas Inc.  18,324,532    985,493
Healthpeak Properties Inc.  24,737,357    683,493
Medical Properties Trust Inc.  27,375,325    471,951
1 Healthcare Realty Trust Inc. Class A  17,462,874    458,400
Omega Healthcare Investors Inc.  10,967,903    340,005
Physicians Realty Trust  10,318,085    183,352
Sabra Health Care REIT Inc.  10,591,234    162,999
National Health Investors Inc.   2,103,159    136,369
CareTrust REIT Inc.   4,451,645     91,927
LTC Properties Inc.   1,811,743     75,912
Community Healthcare Trust Inc.   1,091,309     42,507
          Shares Market
Value

($000)
Global Medical REIT Inc.   2,797,902     34,079
Universal Health Realty Income Trust     599,909     32,335
Diversified Healthcare Trust  10,977,598     18,991
                     5,424,445
Hotel & Resort REITs (2.3%)
Host Hotels & Resorts Inc.  32,757,517    583,411
* Ryman Hospitality Properties Inc.   2,399,581    212,459
Park Hotels & Resorts Inc.  10,846,779    169,101
Apple Hospitality REIT Inc.   9,946,332    165,905
Pebblebrook Hotel Trust   6,031,229    117,971
* Sunstone Hotel Investors Inc.  10,060,581    113,986
RLJ Lodging Trust   7,640,761     95,433
* DiamondRock Hospitality Co.   9,666,781     89,708
* Xenia Hotels & Resorts Inc.   5,238,792     86,021
Service Properties Trust   7,578,116     49,561
* Summit Hotel Properties Inc.   4,873,237     38,255
* Chatham Lodging Trust   2,123,237     25,819
                     1,747,630
Industrial REITs (10.3%)
Prologis Inc.  33,943,300  4,499,524
Duke Realty Corp.  17,557,346  1,098,387
Rexford Industrial Realty Inc.   7,363,812    481,667
Americold Realty Trust Inc.  12,305,953    403,020
EastGroup Properties Inc.   1,892,111    322,680
First Industrial Realty Trust Inc.   6,044,767    314,026
STAG Industrial Inc.   8,162,623    267,571
Terreno Realty Corp.   3,462,935    216,953
LXP Industrial Trust  13,102,576    143,735
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Table of Contents
Real Estate Index Fund
          Shares Market
Value

($000)
Innovative Industrial Properties Inc.   1,175,398    113,320
Plymouth Industrial REIT Inc.   1,675,476     32,270
Industrial Logistics Properties Trust   2,996,099     30,051
                     7,923,204
Office REITs (5.2%)
Alexandria Real Estate Equities Inc.   6,969,646  1,155,428
Boston Properties Inc.   6,827,275    622,374
Kilroy Realty Corp.   4,818,279    261,054
Vornado Realty Trust   7,474,866    227,161
Cousins Properties Inc.   6,820,035    210,398
Douglas Emmett Inc.   8,060,010    190,539
Highwoods Properties Inc.   4,811,285    171,137
1 SL Green Realty Corp.   2,970,817    147,501
* Equity Commonwealth   5,187,537    145,510
Corporate Office Properties Trust   5,152,111    145,032
JBG SMITH Properties   5,265,596    133,957
Hudson Pacific Properties Inc.   6,934,801    104,299
Piedmont Office Realty Trust Inc. Class A   5,655,355     77,818
Easterly Government Properties Inc. Class A   3,753,923     76,092
Brandywine Realty Trust   7,852,004     73,416
Paramount Group Inc.   8,039,427     63,110
* Veris Residential Inc.   3,547,059     49,481
Office Properties Income Trust   2,223,013     46,194
Orion Office REIT Inc.   2,596,389     28,405
City Office REIT Inc.   1,998,229     28,175
Franklin Street Properties Corp.   4,764,019     18,056
*,2 New York REIT Liquidating LLC       1,208         14
                     3,975,151
Other (11.7%)3
4,5 Vanguard Real Estate II Index Fund 376,527,417  8,978,201
Residential REITs (13.3%)
AvalonBay Communities Inc.   6,410,351  1,371,430
Equity Residential  15,780,906  1,237,065
Invitation Homes Inc.  27,872,753  1,087,874
Mid-America Apartment Communities Inc.   5,290,637    982,630
Sun Communities Inc.   5,319,124    872,124
Essex Property Trust Inc.   2,994,301    857,957
UDR Inc.  14,598,581    706,571
Camden Property Trust   4,507,068    635,947
Equity LifeStyle Properties Inc.   8,102,334    595,684
          Shares Market
Value

($000)
American Homes 4 Rent Class A  13,300,847    503,836
American Campus Communities Inc.   6,457,763    421,821
Apartment Income REIT Corp. Class A   7,200,784    326,484
Independence Realty Trust Inc.  10,136,076    225,021
1 Washington REIT   4,009,715     88,895
NexPoint Residential Trust Inc.   1,054,907     70,193
Centerspace     689,948     59,260
* Apartment Investment & Management Co. Class A   6,986,166     58,125
UMH Properties Inc.   2,269,252     48,358
Bluerock Residential Growth REIT Inc. Class A   1,341,420     35,239
                    10,184,514
Retail REITs (9.9%)
Realty Income Corp.  27,123,565  2,006,873
Simon Property Group Inc.  14,672,055  1,593,972
Kimco Realty Corp.  28,285,568    625,394
Regency Centers Corp.   7,074,635    455,819
National Retail Properties Inc.   8,056,224    383,557
Federal Realty OP LP   3,245,463    342,753
Brixmor Property Group Inc.  13,661,702    316,678
Agree Realty Corp.   3,269,938    260,254
Spirit Realty Capital Inc.   5,859,542    259,812
Kite Realty Group Trust  10,042,773    199,751
1 Phillips Edison & Co. Inc.   5,201,736    177,067
SITE Centers Corp.   8,720,282    127,403
Macerich Co.   9,771,519    103,676
Retail Opportunity Investments Corp.   5,632,905     98,351
InvenTrust Properties Corp.   3,089,122     88,565
Urban Edge Properties   5,384,974     88,475
Tanger Factory Outlet Centers Inc.   4,776,117     77,707
Acadia Realty Trust   4,095,949     70,164
Getty Realty Corp.   1,821,938     53,456
Necessity Retail REIT Inc. Class A   5,959,018     46,421
RPT Realty   3,894,414     42,332
NETSTREIT Corp.   2,027,187     41,557
Saul Centers Inc.     653,078     34,143
Alexander's Inc.     105,398     25,665
Urstadt Biddle Properties Inc. Class A   1,368,442     25,179
1 CBL & Associates Properties Inc.     582,322     17,930
 
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Table of Contents
Real Estate Index Fund
          Shares Market
Value

($000)
Urstadt Biddle Properties Inc.      16,032        299
*,2 Spirit MTA REIT   2,071,263         —
                     7,563,253
Specialized REITs (33.0%)
American Tower Corp.  20,911,134  5,663,362
Crown Castle International Corp.  19,825,397  3,581,656
Equinix Inc.   4,161,311  2,928,481
Public Storage   7,229,976  2,359,936
SBA Communications Corp.   4,989,735  1,675,503
Digital Realty Trust Inc.  12,423,409  1,645,481
VICI Properties Inc.  38,751,120  1,324,901
Weyerhaeuser Co.  34,233,746  1,243,370
Extra Space Storage Inc.   6,141,538  1,163,944
Iron Mountain Inc.  13,294,309    644,641
Gaming & Leisure Properties Inc.  10,786,938    560,813
Life Storage Inc.   3,838,780    483,264
CubeSmart  10,274,900    471,310
Lamar Advertising Co. Class A   3,983,867    402,610
Rayonier Inc.   6,668,165    251,723
National Storage Affiliates Trust   3,974,179    217,944
EPR Properties   3,438,679    185,035
PotlatchDeltic Corp.   3,168,838    155,368
Uniti Group Inc.  10,828,607    107,961
Four Corners Property Trust Inc.   3,686,411    107,754
Outfront Media Inc.   5,701,780    105,255
Gladstone Land Corp.   1,489,480     40,380
Safehold Inc.     778,981     33,216
                    25,353,908
Total Equity Real Estate Investment Trusts (REITs) (Cost $61,679,101) 72,988,018
Real Estate Management & Development (4.2%)
Diversified Real Estate Activities (0.1%)
St. Joe Co.   1,485,517     62,422
RMR Group Inc. Class A     710,180     20,531
                        82,953
Real Estate Development (0.2%)
* Howard Hughes Corp.   1,896,475    134,441
* Forestar Group Inc.     908,355     12,572
                       147,013
Real Estate Operating Companies (0.4%)
* DigitalBridge Group Inc.  26,096,211    143,007
Kennedy-Wilson Holdings Inc.   5,691,636    117,589
*,1 WeWork Inc.   8,090,688     38,593
          Shares Market
Value

($000)
* FRP Holdings Inc.     281,101     16,585
*,1 Seritage Growth Properties Class A   1,208,337     14,524
                       330,298
Real Estate Services (3.5%)
* CBRE Group Inc. Class A  15,350,876  1,314,342
* Jones Lang LaSalle Inc.   2,288,175    436,286
* Zillow Group Inc. Class C   7,545,311    263,180
* Cushman & Wakefield plc   6,662,632    111,932
Newmark Group Inc. Class A   8,772,362    100,005
* Zillow Group Inc. Class A   2,828,387     98,994
*,1 Opendoor Technologies Inc.  18,585,684     91,256
* Anywhere Real Estate Inc.   5,348,291     53,109
Marcus & Millichap Inc.   1,184,121     48,454
1 eXp World Holdings Inc.   3,074,010     45,680
*,1 Compass Inc. Class A  10,313,029     39,396
* Redfin Corp.   4,032,926     35,086
RE/MAX Holdings Inc. Class A     861,455     21,829
Douglas Elliman Inc.   3,211,035     19,266
*,1 Offerpad Solutions Inc.   2,638,342      5,567
*,1 Doma Holdings Inc.   4,472,970      3,319
                     2,687,701
Total Real Estate Management & Development (Cost $4,119,341) 3,247,965
 
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Table of Contents
Real Estate Index Fund
          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.
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Table of Contents
Real Estate Index Fund

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity Termination
Date
Counterparty Notional
Amount
($000)
Floating
Interest
Rate
Received
(Paid)1
(%)
Value and
Unrealized
Appreciation
($000)
Value and
Unrealized
(Depreciation)
($000)
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.
At July 31, 2022, the counterparties had deposited in segregated accounts securities with a value of $17,357,000 in connection with open over-the-counter swap contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
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Table of Contents
Real Estate Index Fund
Statement of Assets and Liabilities
As of July 31, 2022
($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.  
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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
See accompanying Notes, which are an integral part of the Financial Statements.
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Real Estate Index Fund
Statement of Operations
  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
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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.
See accompanying Notes, which are an integral part of the Financial Statements.
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Statement of Changes in Net Assets
  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
See accompanying Notes, which are an integral part of the Financial Statements.
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Real Estate Index Fund
Financial Highlights
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.
See accompanying Notes, which are an integral part of the Financial Statements.
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Financial Highlights
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.
See accompanying Notes, which are an integral part of the Financial Statements.
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Financial Highlights
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.
See accompanying Notes, which are an integral part of the Financial Statements.
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Financial Highlights
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.
See accompanying Notes, which are an integral part of the Financial Statements.
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Notes to Financial Statements
Vanguard Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
As a part of its principal investment strategy, the fund attempts to replicate its benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through a wholly owned subsidiary—in the stocks that make up the index. Vanguard Real Estate II Index Fund is the wholly owned subsidiary in which the fund has invested a portion of its assets. For additional financial information about the Real Estate II Index Fund, refer to the accompanying financial statements.
Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund investments and fund performance.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in affiliated Vanguard funds are valued at that fund's net asset value.
2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.
A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their
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performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
During the six months ended July 31, 2022, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings.
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While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the six months ended July 31, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the investment securities, and management’s estimates of such amounts for investment security distributions for which actual information has not been reported. Income, capital gain, and return of capital distributions received from affiliated Vanguard funds are recorded on ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
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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 and are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2022, the fund had contributed to Vanguard capital in the amount of $2,409,000, representing less than 0.01% of the fund’s net assets and 0.96% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
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The following table summarizes the market value of the fund's investments and derivatives as of July 31, 2022, based on the inputs used to value them:
  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
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2022, the fund had available capital losses totaling $2,552,105,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
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.
The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2022, such purchases were $11,282,000 and sales were $2,771,000, resulting in net realized loss of $235,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.
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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
23

Table of Contents
Real Estate Index Fund
H.Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:
    Current Period Transactions  
  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.
24

Table of Contents
Real Estate II Index Fund
Fund Allocation
As of July 31, 2022
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
The table reflects the fund’s investments, except for short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.
The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
25

Table of Contents
Real Estate II Index Fund
Financial Statements (unaudited)
Schedule of Investments
As of July 31, 2022
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
          Shares Market
Value

($000)
Equity Real Estate Investment Trusts (REITs) (95.0%)
Diversified REITs (2.7%)
WP Carey Inc. 1,158,931   103,493
STORE Capital Corp. 1,498,233    43,479
Broadstone Net Lease Inc.   993,672    22,527
Essential Properties Realty Trust Inc.   763,637    18,419
Global Net Lease Inc.   631,098     9,523
American Assets Trust Inc.   312,892     9,459
Alexander & Baldwin Inc.   440,954     8,779
Empire State Realty Trust Inc. Class A   874,766     7,462
iStar Inc.   420,079     7,019
Armada Hoffler Properties Inc.   409,794     5,811
Gladstone Commercial Corp.   229,328     4,804
One Liberty Properties Inc.   101,863     2,827
                    243,602
Health Care REITs (8.1%)
Welltower Inc. 2,719,606   234,811
Ventas Inc. 2,429,055   130,635
Healthpeak Properties Inc. 3,279,150    90,603
Medical Properties Trust Inc. 3,628,739    62,559
Healthcare Realty Trust Inc. Class A 2,314,798    60,763
Omega Healthcare Investors Inc. 1,453,889    45,071
Physicians Realty Trust 1,367,537    24,301
Sabra Health Care REIT Inc. 1,403,911    21,606
National Health Investors Inc.   278,772    18,076
CareTrust REIT Inc.   590,124    12,186
LTC Properties Inc.   240,295    10,068
Community Healthcare Trust Inc.   144,816     5,641
Global Medical REIT Inc.   371,042     4,519
          Shares Market
Value

($000)
Universal Health Realty Income Trust    79,609     4,291
Diversified Healthcare Trust 1,449,979     2,508
                    727,638
Hotel & Resort REITs (2.5%)
Host Hotels & Resorts Inc. 4,342,314    77,337
* Ryman Hospitality Properties Inc.   318,097    28,164
Apple Hospitality REIT Inc. 1,318,391    21,991
Park Hotels & Resorts Inc. 1,037,833    16,180
Pebblebrook Hotel Trust   799,484    15,638
* Sunstone Hotel Investors Inc. 1,333,564    15,109
RLJ Lodging Trust 1,012,853    12,650
* DiamondRock Hospitality Co. 1,281,877    11,896
* Xenia Hotels & Resorts Inc.   694,712    11,407
Service Properties Trust 1,004,752     6,571
* Summit Hotel Properties Inc.   647,605     5,084
* Chatham Lodging Trust   280,859     3,415
                    225,442
Industrial REITs (11.6%)
Prologis Inc. 4,499,479   596,451
Duke Realty Corp. 2,327,380   145,601
Rexford Industrial Realty Inc.   976,154    63,850
Americold Realty Trust Inc. 1,381,262    45,236
EastGroup Properties Inc.   250,819