Semiannual Report  |  July 31, 2021
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, 2021      
  Beginning
Account Value
1/31/2021
Ending
Account Value
7/31/2021
Expenses
Paid During
Period
Based on Actual Fund Return      
Real Estate Index Fund      
Investor Shares $1,000.00 $1,266.60 $1.46
ETF Shares 1,000.00 1,267.50 0.67
AdmiralTM Shares 1,000.00 1,267.70 0.67
Institutional Shares 1,000.00 1,267.50 0.56
Real Estate II Index Fund $1,000.00 $1,268.10 $0.45
Based on Hypothetical 5% Yearly Return      
Real Estate Index Fund      
Investor Shares $1,000.00 $1,023.51 $1.30
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, 0.26% 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, 2021
Diversified Real Estate Activities 0.2%
Diversified REITs 3.9
Health Care REITs 8.4
Hotel & Resort REITs 2.9
Industrial REITs 11.0
Office REITs 7.1
Real Estate Development 0.3
Real Estate Operating Companies 0.2
Real Estate Services 4.0
Residential REITs 14.9
Retail REITs 9.6
Specialized REITs 37.5
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, 2021
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) (95.7%)
Diversified REITs (3.5%)
WP Carey Inc.   8,210,363    662,494
VEREIT Inc.  10,720,525    524,984
STORE Capital Corp.  11,058,719    400,215
1 Broadstone Net Lease Inc.   6,822,411    177,519
* DigitalBridge Group Inc.  22,629,209    157,499
Essential Properties Realty Trust Inc.   5,005,265    149,157
PS Business Parks Inc.     964,737    148,251
Washington REIT   3,960,011     96,189
American Assets Trust Inc.   2,406,260     88,863
iStar Inc.   3,455,277     83,721
Empire State Realty Trust Inc. Class A   6,787,213     77,578
Global Net Lease Inc.   4,199,319     77,562
Alexander & Baldwin Inc.   3,386,473     67,797
Gladstone Commercial Corp.   1,673,233     38,786
Armada Hoffler Properties Inc.   2,776,600     36,096
One Liberty Properties Inc.     770,908     23,582
                     2,810,293
Health Care REITs (7.4%)
Welltower Inc.  19,535,126  1,696,821
Ventas Inc.  17,535,850  1,048,293
Healthpeak Properties Inc.  25,213,767    932,153
Medical Properties Trust Inc.  27,066,393    569,206
Omega Healthcare Investors Inc.  10,845,142    393,462
Healthcare Trust of America Inc. Class A  10,236,927    292,674
Healthcare Realty Trust Inc.   6,538,819    208,458
Physicians Realty Trust   9,742,356    184,618
          Shares Market
Value

($000)
Sabra Health Care REIT Inc.   9,858,942    183,278
National Health Investors Inc.   2,009,200    137,088
CareTrust REIT Inc.   4,488,365    108,259
LTC Properties Inc.   1,835,295     69,466
Community Healthcare Trust Inc.   1,067,342     53,186
Diversified Healthcare Trust  11,151,607     43,491
Global Medical REIT Inc.   2,654,079     41,297
Universal Health Realty Income Trust     644,718     38,522
New Senior Investment Group Inc.   3,886,921     35,837
                     6,036,109
Hotel & Resort REITs (2.5%)
* Host Hotels & Resorts Inc.  33,015,350    525,934
MGM Growth Properties LLC Class A   7,041,108    266,154
* Park Hotels & Resorts Inc.  11,038,955    204,221
* Ryman Hospitality Properties Inc.   2,444,054    187,459
Apple Hospitality REIT Inc.   9,923,012    148,349
Pebblebrook Hotel Trust   6,146,331    138,231
* Sunstone Hotel Investors Inc.  10,088,813    116,425
RLJ Lodging Trust   7,722,510    110,818
* Xenia Hotels & Resorts Inc.   5,323,447     94,119
Service Properties Trust   7,715,008     85,868
* DiamondRock Hospitality Co.   9,833,336     84,665
* Summit Hotel Properties Inc.   4,947,303     44,575
* Chatham Lodging Trust   2,203,409     27,058
* CorePoint Lodging Inc.   1,902,982     25,576
                     2,059,452
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Table of Contents
Real Estate Index Fund
          Shares Market
Value

($000)
Industrial REITs (9.7%)
Prologis Inc.  34,610,944  4,431,585
Duke Realty Corp.  17,494,406    890,115
Americold Realty Trust  11,189,412    434,709
Rexford Industrial Realty Inc.   6,149,818    378,337
First Industrial Realty Trust Inc.   6,045,084    331,150
EastGroup Properties Inc.   1,856,362    327,128
STAG Industrial Inc.   7,412,921    306,302
Innovative Industrial Properties Inc.   1,119,672    240,718
Terreno Realty Corp.   3,212,156    219,583
Lexington Realty Trust  12,984,889    170,751
Monmouth Real Estate Investment Corp.   4,371,974     83,243
Industrial Logistics Properties Trust   3,057,562     82,860
                     7,896,481
Office REITs (6.3%)
Alexandria Real Estate Equities Inc.   6,077,965  1,223,738
Boston Properties Inc.   6,924,108    812,752
Kilroy Realty Corp.   4,902,544    339,599
Vornado Realty Trust   7,613,573    331,190
Cousins Properties Inc.   6,952,604    276,158
Douglas Emmett Inc.   8,211,398    274,261
SL Green Realty Corp.   3,299,428    245,675
Highwoods Properties Inc.   4,862,797    231,907
Hudson Pacific Properties Inc.   7,063,233    192,544
JBG SMITH Properties   5,541,438    180,817
Corporate Office Properties Trust   5,247,829    154,496
Equity Commonwealth   5,694,419    149,706
Brandywine Realty Trust   7,988,111    111,514
Piedmont Office Realty Trust Inc. Class A   5,798,534    110,288
Columbia Property Trust Inc.   5,377,096     89,636
Easterly Government Properties Inc.   3,844,972     87,281
Paramount Group Inc.   8,204,241     80,073
Office Properties Income Trust   2,260,131     65,499
* Mack-Cali Realty Corp.   3,395,772     61,124
City Office REIT Inc.   2,026,906     26,086
Franklin Street Properties Corp.   4,762,661     24,861
*,2 New York REIT Liquidating LLC       1,208         14
                     5,069,219
          Shares Market
Value

($000)
Other (11.6%)3
4,5 Vanguard Real Estate II Index Fund 365,543,416  9,381,743
Residential REITs (13.1%)
AvalonBay Communities Inc.   6,530,461  1,487,835
Equity Residential  16,270,206  1,368,812
Invitation Homes Inc.  26,549,005  1,080,014
Mid-America Apartment Communities Inc.   5,353,841  1,033,827
Essex Property Trust Inc.   3,042,077    998,105
Sun Communities Inc.   5,036,946    987,795
UDR Inc.  13,892,993    763,976
Camden Property Trust   4,566,362    682,169
Equity LifeStyle Properties Inc.   8,106,126    679,293
American Homes 4 Rent Class A  13,296,086    558,436
Apartment Income REIT Corp.   6,967,372    366,762
American Campus Communities Inc.   6,442,397    324,117
1 Independence Realty Trust Inc.   4,768,181     91,931
NexPoint Residential Trust Inc.   1,055,507     62,222
Centerspace     610,875     54,979
Apartment Investment & Management Co. Class A   6,966,556     48,487
UMH Properties Inc.   1,952,395     45,452
Preferred Apartment Communities Inc.   2,337,413     24,636
                    10,658,848
Retail REITs (8.5%)
Simon Property Group Inc.  14,974,760  1,894,607
Realty Income Corp.  17,476,799  1,228,444
Regency Centers Corp.   7,154,591    467,982
Kimco Realty Corp.  20,235,224    431,617
National Retail Properties Inc.   8,201,387    400,802
Federal Realty Investment Trust   3,232,059    379,864
Brixmor Property Group Inc.  13,892,236    319,799
Spirit Realty Capital Inc.   5,375,263    269,946
Agree Realty Corp.   2,970,101    223,203
Weingarten Realty Investors   5,696,024    183,355
Retail Properties of America Inc. Class A  10,044,821    126,665
SITE Centers Corp.   7,241,006    114,842
Macerich Co.   6,881,058    112,161
 
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Table of Contents
Real Estate Index Fund
          Shares Market
Value

($000)
Urban Edge Properties   5,477,395    104,071
Retail Opportunity Investments Corp.   5,529,547     97,707
Acadia Realty Trust   4,039,047     86,435
Kite Realty Group Trust   3,946,270     79,557
1 Tanger Factory Outlet Centers Inc.   4,380,634     75,216
Getty Realty Corp.   1,739,990     54,966
RPT Realty   3,800,917     48,424
NETSTREIT Corp.   1,841,928     47,798
American Finance Trust Inc. Class A   5,094,920     43,154
Saul Centers Inc.     660,711     30,128
Alexander's Inc.     107,705     30,033
Urstadt Biddle Properties Inc. Class A   1,392,787     26,560
* Seritage Growth Properties Class A   1,234,161     19,586
*,2 Spirit MTA REIT   2,071,263        554
Urstadt Biddle Properties Inc.      16,032        269
                     6,897,745
Specialized REITs (33.1%)
American Tower Corp.  20,798,560  5,881,834
Crown Castle International Corp.  19,936,706  3,849,579
Equinix Inc.   4,153,976  3,407,963
Public Storage   7,367,643  2,302,241
Digital Realty Trust Inc.  12,862,730  1,982,918
SBA Communications Corp.   5,116,738  1,744,757
Weyerhaeuser Co.  34,999,235  1,180,524
Extra Space Storage Inc.   6,147,960  1,070,606
VICI Properties Inc.  25,119,360    783,473
Iron Mountain Inc.  13,499,464    590,737
Gaming & Leisure Properties Inc.  10,351,165    490,024
CubeSmart   9,137,443    453,765
Lamar Advertising Co. Class A   4,044,278    431,120
Life Storage Inc.   3,531,109    414,411
CyrusOne Inc.   5,636,715    401,729
CoreSite Realty Corp.   2,001,479    276,624
Rayonier Inc.   6,449,681    243,218
QTS Realty Trust Inc. Class A   3,022,152    234,851
National Storage Affiliates Trust   3,878,252    210,085
EPR Properties   3,498,410    175,970
PotlatchDeltic Corp.   3,130,960    162,622
* Outfront Media Inc.   6,757,354    161,433
Uniti Group Inc.  10,893,693    127,565
Four Corners Property Trust Inc.   3,562,459    102,278
Safehold Inc.     747,350     67,501
          Shares Market
Value

($000)
1 GEO Group Inc.   5,678,620     39,296
1 Gladstone Land Corp.   1,225,730     28,584
CatchMark Timber Trust Inc. Class A   2,277,340     26,622
                    26,842,330
Total Equity Real Estate Investment Trusts (REITs) (Cost $58,991,878) 77,652,220
Real Estate Management & Development (4.0%)
Diversified Real Estate Activities (0.1%)
St. Joe Co.   1,514,673     68,569
RMR Group Inc. Class A     721,618     28,316
* Five Point Holdings LLC Class A   2,748,239     23,003
                       119,888
Real Estate Development (0.2%)
* Howard Hughes Corp.   1,933,947    179,296
* Forestar Group Inc.     785,190     16,073
                       195,369
Real Estate Operating Companies (0.2%)
Kennedy-Wilson Holdings Inc.   5,953,712    120,206
* FRP Holdings Inc.     285,914     17,192
                       137,398
Real Estate Services (3.5%)
* CBRE Group Inc. Class A  15,707,267  1,515,123
* Jones Lang LaSalle Inc.   2,392,261    532,446
* Redfin Corp.   3,996,752    234,090
* Cushman & Wakefield plc   6,234,303    116,394
* eXp World Holdings Inc.   2,946,549    105,840
Newmark Group Inc. Class A   7,447,584     95,925
* Realogy Holdings Corp.   5,405,790     95,791
* Opendoor Technologies Inc.   5,404,078     80,088
* Marcus & Millichap Inc.   1,106,666     44,034
RE/MAX Holdings Inc. Class A     870,505     29,858
                     2,849,589
Total Real Estate Management & Development (Cost $2,377,448) 3,302,244
 
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Table of Contents
Real Estate Index Fund
          Shares Market
Value

($000)
Temporary Cash Investments (0.5%)
Money Market Fund (0.5%)
6,7 Vanguard Market Liquidity Fund, 0.064%
(Cost $372,969)
  3,730,140           373,013
Total Investments (100.2%)
(Cost $61,742,295)
  81,327,477
Other Assets and Liabilities—Net (-0.2%)   (167,955)
Net Assets (100%)   81,159,522
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 $157,112,000.
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 $167,448,000 was received for securities on loan.
  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)
Crown Castle International Corp. 1/31/22 GSI 50,543 (0.139) (2,272)
Digital Realty Trust Inc. 1/31/22 GSI 39,273 (0.139) (734)
Equinix Inc. 1/31/22 GSI 20,851 (0.139) (342)
Equity Residential 1/31/22 GSI 24,966 (0.139) 272
Redfin Corp. 1/31/22 GSI 19,390 (0.089) 1,109
Seritage Growth Properties Class A 1/31/22 GSI 6,486 (0.089) (202)
Simon Property Group Inc. 1/31/22 GSI 50,616 (0.139) 550
          1,931 (3,550)
1 Based on 1M USD London Interbank Offered Rate (LIBOR) as of the most recent payment date. Floating interest payment received/paid monthly.
  1M—1-month.
  GSI—Goldman Sachs International.
  
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, 2021
($000s, except shares and per-share amounts) Amount
Assets  
Investments in Securities, at Value  
Unaffiliated Issuers (Cost $54,361,781) 71,572,721
Affiliated Issuers (Cost $372,969) 373,013
Vanguard Real Estate II Index Fund (Cost $7,007,545) 9,381,743
Total Investments in Securities 81,327,477
Investment in Vanguard 2,339
Cash 8,339
Cash Collateral Pledged—Over-the-Counter Swap Contracts 3,380
Receivables for Accrued Income 33,806
Receivables for Capital Shares Issued 18,405
Unrealized Appreciation—Over-the-Counter Swap Contracts 1,931
Total Assets 81,395,677
Liabilities  
Payables for Investment Securities Purchased 39,670
Collateral for Securities on Loan 167,448
Payables for Capital Shares Redeemed 21,518
Payables to Vanguard 3,969
Unrealized Depreciation—Over-the-Counter Swap Contracts 3,550
Total Liabilities 236,155
Net Assets 81,159,522
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Statement of Assets and Liabilities (continued)


At July 31, 2021, net assets consisted of:

($000s, except shares and per-share amounts) Amount
Paid-in Capital 63,378,439
Total Distributable Earnings (Loss) 17,781,083
Net Assets 81,159,522
 
Investor Shares—Net Assets  
Applicable to 6,051,720 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
213,767
Net Asset Value Per Share—Investor Shares $35.32
 
ETF Shares—Net Assets  
Applicable to 412,146,444 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
43,816,072
Net Asset Value Per Share—ETF Shares $106.31
 
Admiral Shares—Net Assets  
Applicable to 167,483,061 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
25,234,941
Net Asset Value Per Share—Admiral Shares $150.67
 
Institutional Shares—Net Assets  
Applicable to 510,061,733 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
11,894,742
Net Asset Value Per Share—Institutional Shares $23.32
See accompanying Notes, which are an integral part of the Financial Statements.
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Statement of Operations
  Six Months Ended
July 31, 2021
  ($000)
Investment Income  
Income  
Dividends—Unaffiliated Issuers 807,193
Dividends—Vanguard Real Estate II Index Fund 106,864
Interest—Affiliated Issuers 34
Securities Lending—Net 1,127
Total Income 915,218
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 1,325
Management and Administrative—Investor Shares 232
Management and Administrative—ETF Shares 20,016
Management and Administrative—Admiral Shares 11,880
Management and Administrative—Institutional Shares 4,739
Marketing and Distribution—Investor Shares 14
Marketing and Distribution—ETF Shares 711
Marketing and Distribution—Admiral Shares 540
Marketing and Distribution—Institutional Shares 136
Custodian Fees 103
Shareholders’ Reports—Investor Shares 1
Shareholders’ Reports—ETF Shares 587
Shareholders’ Reports—Admiral Shares 154
Shareholders’ Reports—Institutional Shares 45
Trustees’ Fees and Expenses 20
Total Expenses 40,503
Net Investment Income 874,715
Realized Net Gain (Loss)  
Capital Gain Distributions Received—Unaffiliated Issuers 28,694
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund
Investment Securities Sold—Unaffiliated Issuers1 743,283
Investment Securities Sold—Affiliated Issuers1 30
Investment Securities Sold—Vanguard Real Estate II Index Fund
Swap Contracts 25,929
Realized Net Gain (Loss) 797,936
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Statement of Operations (continued)
  Six Months Ended
July 31, 2021
  ($000)
Change in Unrealized Appreciation (Depreciation)  
Investment Securities—Unaffiliated Issuers 13,214,089
Investment Securities—Affiliated Issuers (31)
Investment Securities—Vanguard Real Estate II Index Fund 1,877,266
Swap Contracts (1,619)
Change in Unrealized Appreciation (Depreciation) 15,089,705
Net Increase (Decrease) in Net Assets Resulting from Operations 16,762,356
1 Includes $1,014,170,000 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,
2021
  Year Ended
January 31,
2021
  ($000)   ($000)
Increase (Decrease) in Net Assets      
Operations      
Net Investment Income 874,715   1,355,272
Realized Net Gain (Loss) 797,936   1,060,800
Change in Unrealized Appreciation (Depreciation) 15,089,705   (7,797,964)
Net Increase (Decrease) in Net Assets Resulting from Operations 16,762,356   (5,381,892)
Distributions      
Investor Shares (2,460)   (4,393)
ETF Shares (502,309)   (714,428)
Admiral Shares (293,799)   (458,678)
Institutional Shares (140,314)   (213,294)
Return of Capital      
Investor Shares   (3,129)
ETF Shares   (508,885)
Admiral Shares   (326,715)
Institutional Shares   (151,929)
Total Distributions (938,882)   (2,381,451)
Capital Share Transactions      
Investor Shares (17,279)   (29,761)
ETF Shares 3,351,265   (1,176,383)
Admiral Shares 538,926   (1,182,290)
Institutional Shares 31,963   356,671
Net Increase (Decrease) from Capital Share Transactions 3,904,875   (2,031,763)
Total Increase (Decrease) 19,728,349   (9,795,106)
Net Assets      
Beginning of Period 61,431,173   71,226,279
End of Period 81,159,522   61,431,173
See accompanying Notes, which are an integral part of the Financial Statements.
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Financial Highlights
Investor Shares            
For a Share Outstanding
Throughout Each Period
Six Months
Ended
July 31,
2021
Year Ended January 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $28.23 $31.21 $27.69 $26.40 $27.38 $25.59
Investment Operations            
Net Investment Income .3741 .5861 .7191 .7871 .7611 .746
Net Realized and Unrealized Gain (Loss) on Investments 7.111 (2.498) 3.801 1.639 (.614) 2.324
Total from Investment Operations 7.485 (1.912) 4.520 2.426 .147 3.070
Distributions            
Dividends from Net Investment Income (.395) (.624) (.752) (.851) (.788) (.752)
Distributions from Realized Capital Gains (.011) (.187)
Return of Capital (.444) (.248) (.285) (.328) (.341)
Total Distributions (.395) (1.068) (1.000) (1.136) (1.127) (1.280)
Net Asset Value, End of Period $35.32 $28.23 $31.21 $27.69 $26.40 $27.38
Total Return2 26.66% -5.88% 16.59% 9.53% 0.45% 12.07%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $214 $188 $243 $1,871 $2,143 $2,603
Ratio of Total Expenses to Average Net Assets 0.26% 0.26% 0.26% 0.25% 0.26% 0.26%
Ratio of Net Investment Income to Average Net Assets 2.35% 2.18% 2.48% 3.02% 2.87% 2.60%
Portfolio Turnover Rate3 3% 8% 6% 24% 6% 7%
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 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,
2021
Year Ended January 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $84.96 $93.93 $83.36 $79.47 $82.43 $77.05
Investment Operations            
Net Investment Income 1.1791 1.8891 2.3351 2.4871 2.4991 2.334
Net Realized and Unrealized Gain (Loss) on Investments 21.427 (7.525) 11.379 4.934 (1.945) 7.022
Total from Investment Operations 22.606 (5.636) 13.714 7.421 .554 9.356
Distributions            
Dividends from Net Investment Income (1.256) (1.947) (2.364) (2.646) (2.458) (2.353)
Distributions from Realized Capital Gains (.034) (.563)
Return of Capital (1.387) (.780) (.885) (1.022) (1.060)
Total Distributions (1.256) (3.334) (3.144) (3.531) (3.514) (3.976)
Net Asset Value, End of Period $106.31 $84.96 $93.93 $83.36 $79.47 $82.43
Total Return 26.75% -5.80% 16.70% 9.70% 0.59% 12.25%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $43,816 $32,064 $37,682 $30,857 $32,377 $33,527
Ratio of Total Expenses to Average Net Assets 0.12% 0.12% 0.12% 0.12% 0.12% 0.12%
Ratio of Net Investment Income to Average Net Assets 2.45% 2.33% 2.60% 3.15% 3.01% 2.74%
Portfolio Turnover Rate2 3% 8% 6% 24% 6% 7%
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 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,
2021
Year Ended January 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $120.40 $133.12 $118.14 $112.63 $116.83 $109.19
Investment Operations            
Net Investment Income 1.6631 2.6771 3.3151 3.5071 3.5381 3.306
Net Realized and Unrealized Gain (Loss) on Investments 30.385 (10.672) 16.121 7.008 (2.761) 9.966
Total from Investment Operations 32.048 (7.995) 19.436 10.515 .777 13.272
Distributions            
Dividends from Net Investment Income (1.778) (2.759) (3.350) (3.751) (3.483) (3.333)
Distributions from Realized Capital Gains (.048) (.798)
Return of Capital (1.966) (1.106) (1.254) (1.447) (1.501)
Total Distributions (1.778) (4.725) (4.456) (5.005) (4.978) (5.632)
Net Asset Value, End of Period $150.67 $120.40 $133.12 $118.14 $112.63 $116.83
Total Return2 26.77% -5.74% 16.73% 9.69% 0.58% 12.23%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $25,235 $19,702 $23,274 $18,223 $17,757 $18,337
Ratio of Total Expenses to Average Net Assets 0.12% 0.12% 0.12% 0.11% 0.12% 0.12%
Ratio of Net Investment Income to Average Net Assets 2.44% 2.33% 2.60% 3.16% 3.01% 2.74%
Portfolio Turnover Rate3 3% 8% 6% 24% 6% 7%
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 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,
2021
Year Ended January 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $18.64 $20.60 $18.28 $17.43 $18.08 $16.90
Investment Operations            
Net Investment Income .2591 .4211 .5181 .5431 .5681 .515
Net Realized and Unrealized Gain (Loss) on Investments 4.698 (1.646) 2.496 1.085 (.444) 1.540
Total from Investment Operations 4.957 (1.225) 3.014 1.628 .124 2.055
Distributions            
Dividends from Net Investment Income (.277) (.429) (.522) (.583) (.542) (.519)
Distributions from Realized Capital Gains (.007) (.123)
Return of Capital (.306) (.172) (.195) (.225) (.233)
Total Distributions (.277) (.735) (.694) (.778) (.774) (.875)
Net Asset Value, End of Period $23.32 $18.64 $20.60 $18.28 $17.43 $18.08
Total Return 26.75% -5.68% 16.77% 9.70% 0.60% 12.23%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $11,895 $9,478 $10,027 $8,206 $8,176 $7,799
Ratio of Total Expenses to Average Net Assets 0.10% 0.10% 0.10% 0.09% 0.10% 0.10%
Ratio of Net Investment Income to Average Net Assets 2.46% 2.37% 2.63% 3.18% 3.03% 2.76%
Portfolio Turnover Rate2 3% 8% 6% 24% 6% 7%
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 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.
Market disruptions associated with the COVID-19 pandemic have had a global impact, and uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of the fund and thus 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 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
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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, 2021, 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. 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
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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 $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes, 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; 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 either facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread, except that borrowings under the uncommitted credit facility may bear interest based upon an alternative 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, 2021, 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, 2021, the fund had contributed to Vanguard capital in the amount of $2,339,000, representing less than 0.01% of the fund’s net assets and 0.94% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund's investments and derivatives as of July 31, 2021, based on the inputs used to value them:
  Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
Investments        
Assets        
Common Stocks 80,953,896 568 80,954,464
Temporary Cash Investments 373,013 373,013
Total 81,326,909 568 81,327,477
Derivative Financial Instruments        
Assets        
Swap Contracts 1,931 1,931
Liabilities        
Swap Contracts 3,550 3,550
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D. As of July 31, 2021, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
  Amount
($000)
Tax Cost 61,909,529
Gross Unrealized Appreciation 22,534,033
Gross Unrealized Depreciation (3,117,704)
Net Unrealized Appreciation (Depreciation) 19,416,329
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, 2021, the fund had available capital losses totaling $2,472,556,000 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, 2022; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
E. During the six months ended July 31, 2021, the fund purchased $8,361,766,000 of investment securities and sold $4,572,194,000 of investment securities, other than temporary cash investments. Purchases and sales include $5,772,757,000 and $2,536,331,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
F. Capital share transactions for each class of shares were:
    
  Six Months Ended
July 31, 2021
  Year Ended
January 31, 2021
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
Investor Shares          
Issued 26,465 794   16,000 586
Issued in Lieu of Cash Distributions 2,460 77   7,522 282
Redeemed (46,204) (1,468)   (53,283) (2,013)
Net Increase (Decrease)—Investor Shares (17,279) (597)   (29,761) (1,145)
ETF Shares          
Issued 5,888,466 60,628   8,299,471 100,643
Issued in Lieu of Cash Distributions  
Redeemed (2,537,201) (25,900)   (9,475,854) (124,400)
Net Increase (Decrease)—ETF Shares 3,351,265 34,728   (1,176,383) (23,757)
Admiral Shares          
Issued 2,100,630 15,314   3,229,939 28,465
Issued in Lieu of Cash Distributions 257,944 1,879   688,666 6,053
Redeemed (1,819,648) (13,341)   (5,100,895) (45,719)
Net Increase (Decrease)—Admiral Shares 538,926 3,852   (1,182,290) (11,201)
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  Six Months Ended
July 31, 2021
  Year Ended
January 31, 2021
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
Institutional Shares          
Issued 991,262 46,898   1,959,562 112,493
Issued in Lieu of Cash Distributions 130,864 6,163   343,567 19,520
Redeemed (1,090,163) (51,579)   (1,946,458) (110,090)
Net Increase (Decrease)—Institutional Shares 31,963 1,482   356,671 21,923
G. 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, 2021
Market Value
($000)
Purchases
at Cost
($000)
Proceeds
from
Securities
Sold
($000)
Realized
Net Gain
(Loss)
($000)
Change in
Unrealized
App. (Dep.)
($000)
Income
($000)
Capital Gain
Distributions
Received
($000)
Jul. 31, 2021
Market Value
($000)
Vanguard Market Liquidity Fund 353,714 NA1 NA1 30 (31) 34 373,013
Vanguard Real Estate II Index Fund 7,399,530 106,864 1,877,266 106,864 9,381,743
Total 7,753,244 106,864 30 1,877,235 106,898 9,754,756
1 Not applicable—purchases and sales are for temporary cash investment purposes.
H. Management has determined that no events or transactions occurred subsequent to July 31, 2021, that would require recognition or disclosure in these financial statements.
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Real Estate II Index Fund
Fund Allocation
As of July 31, 2021
Diversified Real Estate Activities 0.2%
Diversified REITs 3.9
Health Care REITs 8.4
Hotel & Resort REITs 2.8
Industrial REITs 10.9
Office REITs 7.1
Real Estate Development 0.3
Real Estate Operating Companies 0.2
Real Estate Services 4.0
Residential REITs 14.9
Retail REITs 9.7
Specialized REITs 37.6
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 II Index Fund
Financial Statements (unaudited)
Schedule of Investments
As of July 31, 2021
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 (3.9%)
WP Carey Inc. 1,072,485    86,539
VEREIT Inc. 1,400,486    68,582
STORE Capital Corp. 1,445,182    52,301
Broadstone Net Lease Inc.   891,407    23,194
* DigitalBridge Group Inc. 2,954,710    20,565
Essential Properties Realty Trust Inc.   653,727    19,481
PS Business Parks Inc.   126,032    19,367
Washington REIT   517,115    12,561
American Assets Trust Inc.   314,509    11,615
iStar Inc.   451,960    10,951
Empire State Realty Trust Inc. Class A   887,311    10,142
Global Net Lease Inc.   547,851    10,119
Alexander & Baldwin Inc.   443,112     8,871
Gladstone Commercial Corp.   218,687     5,069
Armada Hoffler Properties Inc.   363,020     4,719
One Liberty Properties Inc.   100,808     3,084
                    367,160
Health Care REITs (8.4%)
Welltower Inc. 2,552,155   221,680
Ventas Inc. 2,290,892   136,950
Healthpeak Properties Inc. 3,293,823   121,773
Medical Properties Trust Inc. 3,535,545    74,352
Omega Healthcare Investors Inc. 1,417,123    51,413
Healthcare Trust of America Inc. Class A 1,337,288    38,233
Healthcare Realty Trust Inc.   854,236    27,233
Physicians Realty Trust 1,272,786    24,119
Sabra Health Care REIT Inc. 1,289,067    23,964
National Health Investors Inc.   262,363    17,901
CareTrust REIT Inc.   586,480    14,146
LTC Properties Inc.   240,108     9,088
          Shares Market
Value

($000)
Community Healthcare Trust Inc.   139,442     6,948
Diversified Healthcare Trust 1,454,880     5,674
Global Medical REIT Inc.   346,790     5,396
Universal Health Realty Income Trust    84,255     5,034
New Senior Investment Group Inc.   507,008     4,675
                    788,579
Hotel & Resort REITs (2.8%)
* Host Hotels & Resorts Inc. 4,313,225    68,710
MGM Growth Properties LLC Class A   920,288    34,787
* Ryman Hospitality Properties Inc.   319,298    24,490
Apple Hospitality REIT Inc. 1,296,196    19,378
* Park Hotels & Resorts Inc. 1,043,149    19,298
Pebblebrook Hotel Trust   802,691    18,053
* Sunstone Hotel Investors Inc. 1,318,373    15,214
RLJ Lodging Trust 1,008,669    14,474
* Xenia Hotels & Resorts Inc.   695,249    12,292
Service Properties Trust 1,007,519    11,214
* DiamondRock Hospitality Co. 1,284,136    11,056
* Summit Hotel Properties Inc.   647,542     5,834
* Chatham Lodging Trust   287,710     3,533
* CorePoint Lodging Inc.   248,278     3,337
                    261,670
Industrial REITs (10.9%)
Prologis Inc. 4,521,778   578,968
Duke Realty Corp. 2,285,495   116,286
Rexford Industrial Realty Inc.   803,576    49,436
Americold Realty Trust 1,212,141    47,092
First Industrial Realty Trust Inc.   789,612    43,255
EastGroup Properties Inc.   242,462    42,727
STAG Industrial Inc.   968,337    40,012
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Real Estate II Index Fund