Semiannual Report   |   February 28, 2021
Vanguard Russell 1000 Index Funds
Vanguard Russell 1000 Index Fund
Vanguard Russell 1000 Value Index Fund
Vanguard Russell 1000 Growth Index Fund

Contents
About Your Fund’s Expenses

1
Russell 1000 Index Fund

3
Russell 1000 Value Index Fund

17
Russell 1000 Growth Index Fund

32

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.
1

Six Months Ended February 28, 2021      
  Beginning
Account Value
8/31/2020
Ending
Account Value
2/28/2021
Expenses
Paid During
Period
Based on Actual Fund Return      
Russell 1000 Index Fund      
ETF Shares $1,000.00 $1,117.60 $0.42
Institutional Shares 1,000.00 1,117.60 0.37
Russell 1000 Value Index Fund      
ETF Shares $1,000.00 $1,190.90 $0.43
Institutional Shares 1,000.00 1,191.10 0.38
Russell 1000 Growth Index Fund      
ETF Shares $1,000.00 $1,053.00 $0.41
Institutional Shares 1,000.00 1,053.10 0.36
Based on Hypothetical 5% Yearly Return      
Russell 1000 Index Fund      
ETF Shares $1,000.00 $1,024.40 $0.40
Institutional Shares 1,000.00 1,024.45 0.35
Russell 1000 Value Index Fund      
ETF Shares $1,000.00 $1,024.40 $0.40
Institutional Shares 1,000.00 1,024.45 0.35
Russell 1000 Growth Index Fund      
ETF Shares $1,000.00 $1,024.40 $0.40
Institutional Shares 1,000.00 1,024.45 0.35
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 Russell 1000 Index Fund, 0.08% for ETF Shares and 0.07% for Institutional Shares; for the Russell 1000 Value Index Fund, 0.08% for ETF Shares and 0.07% for Institutional Shares; and for the Russell 1000 Growth Index Fund, 0.08% for ETF Shares and 0.07% for Institutional Shares. 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).
2

Russell 1000 Index Fund
Fund Allocation
As of February 28, 2021
Basic Materials 1.9%
Consumer Discretionary 16.6
Consumer Staples 4.9
Energy 2.7
Financials 10.9
Health Care 12.7
Industrials 13.8
Oil & Gas 0.0
Real Estate 3.2
Technology 27.3
Telecommunications 3.4
Utilities 2.6
The table reflects the fund’s investments, except short-term investments and derivatives. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB 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.
3

Russell 1000 Index Fund
Financial Statements (unaudited)
Schedule of Investments—Investments Summary
As of February 28, 2021
This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) four times in each fiscal year. For the second and fourth quarters the complete list of the fund’s holdings is available on vanguard.com and on Form N-CSR, or you can have it mailed to you without charge by calling 800-662-7447. For the first and third quarters of each fiscal year, the complete list of the fund’s holdings is available as an exhibit to its reports on Form N-PORT. The fund’s Form N-CSR and Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value
($000)
Percentage
of Net
Assets
Common Stocks
Basic Materials*          87,311       1.9%
Consumer Discretionary                 
  Amazon.com Inc. *    54,118   167,383   3.6%
  Tesla Inc. *    96,509    65,192   1.4%
  Walt Disney Co. *   230,667    43,605   1.0%
  Home Depot Inc.   137,081    35,414   0.8%
  Netflix Inc. *    54,274    29,246   0.6%
  Walmart Inc.   177,922    23,116   0.5%
  NIKE Inc. Class B   156,442    21,085   0.5%
  McDonald's Corp.    95,014    19,586   0.4%
  Costco Wholesale Corp.    56,341    18,649   0.4%
Consumer Discretionary—Other *             341,235   7.3%
        764,511 16.5%
Consumer Staples                 
  Procter & Gamble Co.   311,070    38,427   0.8%
  Coca-Cola Co.   493,457    24,174   0.5%
  PepsiCo Inc.   177,187    22,891   0.5%
Consumer Staples—Other *,1             142,491   3.1%
        227,983 4.9%
Energy                 
  Exxon Mobil Corp.   540,223    29,372   0.6%
  Chevron Corp.   245,835    24,584   0.5%
Energy—Other *              72,803   1.6%
        126,759 2.7%
Financials                 
  Berkshire Hathaway Inc. Class B *   240,089    57,744   1.3%
  JPMorgan Chase & Co.   386,595    56,895   1.2%
4

Russell 1000 Index Fund
    Shares Market
Value

($000)
Percentage
of Net
Assets
  Bank of America Corp.   987,186    34,265   0.8%
Financials—Other *,1             353,502   7.6%
        502,406 10.9%
Health Care                 
  Johnson & Johnson   336,580    53,334   1.2%
  UnitedHealth Group Inc.   120,495    40,031   0.9%
  Abbott Laboratories   220,605    26,424   0.6%
  AbbVie Inc.   224,858    24,226   0.5%
  Pfizer Inc.   709,804    23,771   0.5%
  Merck & Co. Inc.   322,480    23,418   0.5%
  Thermo Fisher Scientific Inc.    50,415    22,691   0.5%
  Eli Lilly and Co.   107,510    22,028   0.5%
  Medtronic plc   171,203    20,026   0.4%
  Bristol-Myers Squibb Co.   288,998    17,724   0.4%
Health Care—Other *             313,630   6.7%
        587,303 12.7%
Industrials                 
  Visa Inc. Class A   215,507    45,772   1.0%
  Mastercard Inc. Class A   112,599    39,843   0.9%
  PayPal Holdings Inc. *   149,882    38,947   0.9%
  Accenture plc Class A    81,352    20,411   0.5%
  Honeywell International Inc.    89,616    18,134   0.4%
  Union Pacific Corp.    86,650    17,846   0.4%
Industrials—Other *             457,215   9.7%
        638,168 13.8%
Oil & Gas*          949       0.0%
Real Estate*          147,235       3.2%
Technology                 
  Apple Inc. 2,059,832   249,775   5.4%
  Microsoft Corp.   955,806   222,110   4.8%
  Facebook Inc. Class A *   306,491    78,958   1.7%
  Alphabet Inc. Class A *    38,323    77,486   1.7%
  Alphabet Inc. Class C *    37,104    75,576   1.6%
  NVIDIA Corp.    75,341    41,331   0.9%
  Intel Corp.   523,664    31,828   0.7%
  Adobe Inc. *    61,405    28,226   0.6%
  salesforce.com Inc. *   111,905    24,227   0.5%
  Broadcom Inc.    50,399    23,681   0.5%
  Texas Instruments Inc.   117,164    20,184   0.4%
  QUALCOMM Inc.   143,625    19,560   0.4%
Technology—Other *             366,367   8.1%
      1,259,309 27.3%
Telecommunications                 
  Comcast Corp. Class A   578,375    30,492   0.7%
  Verizon Communications Inc.   528,909    29,249   0.6%
  AT&T Inc.   910,248    25,387   0.6%
  Cisco Systems Inc.   542,021    24,320   0.5%
Telecommunications—Other *              47,013   1.0%
        156,461 3.4%
Utilities                 
  NextEra Energy Inc.   249,795    18,355   0.4%
5

Russell 1000 Index Fund
    Shares Market
Value

($000)
Percentage
of Net
Assets
Utilities—Other *             101,759   2.2%
        120,114 2.6%
Total Common Stocks (Cost $2,963,035) 4,618,509 99.9%
Temporary Cash Investments
Money Market Fund
  Vanguard Market Liquidity Fund, 0.099% (Cost $368)2,3     3,683          368      0.0%
Total Investments (Cost $2,963,403) 4,618,877 99.9%
Other Assets and Liabilities—Net 2,665 0.1%
Net Assets 4,621,542 100.0%
Cost is in $000.
See Note A in Notes to Financial Statements.
Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
* Non-income-producing security.
1 Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $372,000.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Collateral of $365,000 was received for securities on loan.
  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
      ($000)
  Expiration Number of
Long (Short)
Contracts
Notional
Amount
Value and
Unrealized
Appreciation
(Depreciation)
Long Futures Contracts        
E-mini S&P 500 Index March 2021 17 3,238 (51)
  
See accompanying Notes, which are an integral part of the Financial Statements.
6

Russell 1000 Index Fund
Statement of Assets and Liabilities
As of February 28, 2021
($000s, except shares and per-share amounts) Amount
Assets  
Investments in Securities, at Value  
Unaffiliated Issuers (Cost $2,963,035) 4,618,509
Affiliated Issuers (Cost $368) 368
Total Investments in Securities 4,618,877
Investment in Vanguard 168
Cash Collateral Pledged—Futures Contracts 190
Receivables for Accrued Income 6,127
Receivables for Capital Shares Issued 31,291
Total Assets 4,656,653
Liabilities  
Due to Custodian 2,577
Payables for Investment Securities Purchased 31,612
Collateral for Securities on Loan 365
Payables for Capital Shares Redeemed 376
Payables to Vanguard 165
Variation Margin Payable—Futures Contracts 16
Total Liabilities 35,111
Net Assets 4,621,542
At February 28, 2021, net assets consisted of:  
   
Paid-in Capital 2,809,295
Total Distributable Earnings (Loss) 1,812,247
Net Assets 4,621,542
 
ETF Shares—Net Assets  
Applicable to 12,700,000 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
2,272,029
Net Asset Value Per Share—ETF Shares $178.90
 
Institutional Shares—Net Assets  
Applicable to 6,779,489 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
2,349,513
Net Asset Value Per Share—Institutional Shares $346.56
  
See accompanying Notes, which are an integral part of the Financial Statements.
7

Russell 1000 Index Fund
Statement of Operations
  Six Months Ended
February 28, 2021
  ($000)
Investment Income  
Income  
Dividends 30,939
Interest1 2
Securities Lending—Net 41
Total Income 30,982
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 314
Management and Administrative—ETF Shares 502
Management and Administrative—Institutional Shares 527
Marketing and Distribution—ETF Shares 46
Marketing and Distribution—Institutional Shares 29
Custodian Fees 118
Shareholders’ Reports—ETF Shares 8
Shareholders’ Reports—Institutional Shares
Trustees’ Fees and Expenses
Total Expenses 1,544
Net Investment Income 29,438
Realized Net Gain (Loss)  
Investment Securities Sold1,2 236,304
Futures Contracts 1,418
Realized Net Gain (Loss) 237,722
Change in Unrealized Appreciation (Depreciation)  
Investment Securities1 192,315
Futures Contracts (758)
Change in Unrealized Appreciation (Depreciation) 191,557
Net Increase (Decrease) in Net Assets Resulting from Operations 458,717
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $2,000, $0, and $0, respectively. Purchases and sales are for temporary cash investment purposes.
2 Includes $242,342,000 of net gain (loss) resulting from in-kind redemptions.
  
See accompanying Notes, which are an integral part of the Financial Statements.
8

Russell 1000 Index Fund
Statement of Changes in Net Assets
  Six Months Ended
February 28,
2021
  Year Ended
August 31,
2020
  ($000)   ($000)
Increase (Decrease) in Net Assets      
Operations      
Net Investment Income 29,438   67,097
Realized Net Gain (Loss) 237,722   84,160
Change in Unrealized Appreciation (Depreciation) 191,557   625,102
Net Increase (Decrease) in Net Assets Resulting from Operations 458,717   776,359
Distributions      
ETF Shares (14,432)   (23,937)
Institutional Shares (18,514)   (43,999)
Total Distributions (32,946)   (67,936)
Capital Share Transactions      
ETF Shares 393,526   210,407
Institutional Shares (399,305)   (236,257)
Net Increase (Decrease) from Capital Share Transactions (5,779)   (25,850)
Total Increase (Decrease) 419,992   682,573
Net Assets      
Beginning of Period 4,201,550   3,518,977
End of Period 4,621,542   4,201,550
  
See accompanying Notes, which are an integral part of the Financial Statements.
9

Russell 1000 Index Fund
Financial Highlights
ETF Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
February 28,
2021
Year Ended August 31,
2020 2019 2018 2017 2016
Net Asset Value, Beginning of Period $161.36 $134.37 $133.57 $113.60 $99.81 $91.37
Investment Operations            
Net Investment Income 1.1731 2.5251 2.3951 2.2091 2.0541 1.892
Net Realized and Unrealized Gain (Loss) on Investments 17.683 27.028 .759 19.896 13.753 8.383
Total from Investment Operations 18.856 29.553 3.154 22.105 15.807 10.275
Distributions            
Dividends from Net Investment Income (1.316) (2.563) (2.354) (2.135) (2.017) (1.835)
Distributions from Realized Capital Gains
Total Distributions (1.316) (2.563) (2.354) (2.135) (2.017) (1.835)
Net Asset Value, End of Period $178.90 $161.36 $134.37 $133.57 $113.60 $99.81
Total Return 11.76% 22.39% 2.45% 19.68% 16.02% 11.41%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $2,272 $1,678 $1,196 $1,008 $724 $679
Ratio of Total Expenses to Average Net Assets 0.08% 0.08% 0.08% 0.12% 0.12% 0.12%
Ratio of Net Investment Income to Average Net Assets 1.42% 1.79% 1.85% 1.78% 1.94% 2.05%
Portfolio Turnover Rate2 3% 9% 6% 9% 11% 9%
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.
10

Russell 1000 Index Fund
Financial Highlights
Institutional Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
February 28,
2021
Year Ended August 31,
2020 2019 2018 2017 2016
Net Asset Value, Beginning of Period $312.59 $260.26 $258.75 $220.06 $193.36 $176.99
Investment Operations            
Net Investment Income 2.3081 4.9271 4.6451 4.3451 4.0801 3.732
Net Realized and Unrealized Gain (Loss) on Investments 34.222 52.362 1.483 38.573 26.609 16.259
Total from Investment Operations 36.530 57.289 6.128 42.918 30.689 19.991
Distributions            
Dividends from Net Investment Income (2.560) (4.959) (4.618) (4.228) (3.989) (3.621)
Distributions from Realized Capital Gains
Total Distributions (2.560) (4.959) (4.618) (4.228) (3.989) (3.621)
Net Asset Value, End of Period $346.56 $312.59 $260.26 $258.75 $220.06 $193.36
Total Return 11.76% 22.45% 2.45% 19.72% 16.06% 11.47%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $2,350 $2,523 $2,323 $2,134 $2,014 $1,549
Ratio of Total Expenses to Average Net Assets 0.07% 0.07% 0.07% 0.08% 0.08% 0.08%
Ratio of Net Investment Income to Average Net Assets 1.45% 1.81% 1.86% 1.82% 1.98% 2.09%
Portfolio Turnover Rate2 3% 9% 6% 9% 11% 9%
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.
11

Russell 1000 Index Fund
Notes to Financial Statements
Vanguard Russell 1000 Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF 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 Nasdaq; they can be purchased and sold through a broker.
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 Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
12

Russell 1000 Index Fund
During the six months ended February 28, 2021, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the 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. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
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
13

Russell 1000 Index Fund
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 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 February 28, 2021, the fund did not utilize the credit facilities or the Interfund Lending Program.
7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) 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 February 28, 2021, the fund had contributed to Vanguard capital in the amount of $168,000, representing less than 0.01% of the fund’s net assets and 0.07% 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.).
14

Russell 1000 Index Fund
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.
At February 28, 2021, 100% of the market value of the fund’s investments and derivatives was determined based on Level 1 inputs.
D. As of February 28, 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 2,968,110
Gross Unrealized Appreciation 1,780,801
Gross Unrealized Depreciation (130,085)
Net Unrealized Appreciation (Depreciation) 1,650,716
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2020, the fund had available capital losses totaling $88,954,000 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 August 31, 2021; 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 February 28, 2021, the fund purchased $585,728,000 of investment securities and sold $585,040,000 of investment securities, other than temporary cash investments. Purchases and sales include $423,000,000 and $447,769,000, 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
February 28, 2021
  Year Ended
August 31, 2020
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
ETF Shares          
Issued 848,150 5,050   484,207 3,500
Issued in Lieu of Cash Distributions  
Redeemed (454,624) (2,750)   (273,800) (2,000)
Net Increase (Decrease)—ETF Shares 393,526 2,300   210,407 1,500
Institutional Shares          
Issued 202,399 585   264,170 1,009
Issued in Lieu of Cash Distributions 17,602 56   42,228 165
Redeemed (619,306) (1,934)   (542,655) (2,028)
Net Increase (Decrease)—Institutional Shares (399,305) (1,293)   (236,257) (854)
15

Russell 1000 Index Fund
G. Management has determined that no events or transactions occurred subsequent to February 28, 2021, that would require recognition or disclosure in these financial statements.
16

Russell 1000 Value Index Fund
Fund Allocation
As of February 28, 2021
Basic Materials 3.5%
Consumer Discretionary 12.9
Consumer Staples 6.5
Energy 5.3
Financials 19.9
Health Care 12.1
Industrials 15.4
Oil & Gas 0.0
Real Estate 4.6
Technology 8.6
Telecommunications 6.0
Utilities 5.2
The table reflects the fund’s investments, except short-term investments and derivatives. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB 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.
17

Russell 1000 Value Index Fund
Financial Statements (unaudited)
Schedule of Investments—Investments Summary
As of February 28, 2021
This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) four times in each fiscal year. For the second and fourth quarters the complete list of the fund’s holdings is available on vanguard.com and on Form N-CSR, or you can have it mailed to you without charge by calling 800-662-7447. For the first and third quarters of each fiscal year, the complete list of the fund’s holdings is available as an exhibit to its reports on Form N-PORT. The fund’s Form N-CSR and Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value
($000)
Percentage
of Net
Assets
Common Stocks
Basic Materials                 
  Linde plc   149,064    36,412   0.7%
Basic Materials—Other *             139,398   2.7%
        175,810 3.4%
Consumer Discretionary                 
  Walt Disney Co. *   512,985    96,975   1.9%
  Walmart Inc.   350,389    45,523   0.9%
  Home Depot Inc.   152,540    39,407   0.8%
  McDonald's Corp.   181,072    37,326   0.7%
  Target Corp.   141,651    25,984   0.5%
Consumer Discretionary—Other *             412,715   8.1%
        657,930 12.9%
Consumer Staples                 
  Procter & Gamble Co.   381,826    47,167   0.9%
  Philip Morris International Inc.   441,787    37,119   0.7%
  CVS Health Corp.   371,184    25,289   0.5%
  Coca-Cola Co.   453,564    22,220   0.4%
  Mondelez International Inc. Class A   400,909    21,312   0.4%
Consumer Staples—Other *,1             180,139   3.6%
        333,246 6.5%
Energy                 
  Exxon Mobil Corp. 1,201,537    65,328   1.3%
  Chevron Corp.   546,666    54,667   1.1%
Energy—Other *             147,942   2.9%
        267,937 5.3%
18

Russell 1000 Value Index Fund
    Shares Market
Value

($000)
Percentage
of Net
Assets
Financials                 
  Berkshire Hathaway Inc. Class B *   533,445   128,299   2.5%
  JPMorgan Chase & Co.   859,361   126,472   2.5%
  Bank of America Corp. 2,195,027    76,189   1.5%
  Citigroup Inc.   591,212    38,949   0.8%
  Wells Fargo & Co. 1,065,869    38,553   0.8%
  Goldman Sachs Group Inc.    94,103    30,064   0.6%
  BlackRock Inc.    41,800    29,030   0.6%
  Morgan Stanley   377,471    29,016   0.6%
  Charles Schwab Corp.   390,267    24,087   0.5%
  Truist Financial Corp.   381,756    21,745   0.4%
Financials—Other *,1             467,645   9.0%
      1,010,049 19.8%
Health Care                 
  Johnson & Johnson   647,813   102,652   2.0%
  Pfizer Inc. 1,578,375    52,860   1.0%
  Medtronic plc   380,577    44,516   0.9%
  Danaher Corp.   177,604    39,014   0.8%
  Abbott Laboratories   302,112    36,187   0.7%
  Bristol-Myers Squibb Co.   408,946    25,081   0.5%
  Gilead Sciences Inc.   356,034    21,860   0.4%
  Thermo Fisher Scientific Inc.    46,311    20,844   0.4%
  Viatris Inc. *   351,036     5,213   0.1%
Health Care—Other *             267,280   5.3%
        615,507 12.1%
Industrials                 
  Honeywell International Inc.   199,258    40,320   0.8%
  Caterpillar Inc.   153,663    33,173   0.7%
  Boeing Co.   151,617    32,144   0.6%
  General Electric Co. 2,468,331    30,953   0.6%
  Raytheon Technologies Corp.   404,584    29,126   0.6%
  Deere & Co.    80,021    27,937   0.6%
  American Express Co.   185,757    25,126   0.5%
  Fidelity National Information Services Inc.   175,383    24,203   0.5%
Industrials—Other *             541,390  10.5%
        784,372 15.4%
Oil & Gas*          2,115       0.0%
Real Estate*          231,742       4.5%
Technology                 
  Intel Corp. 1,164,133    70,756   1.4%
  Alphabet Inc. Class A *    19,055    38,528   0.8%
  Alphabet Inc. Class C *    18,510    37,702   0.7%
  International Business Machines Corp.   252,327    30,009   0.6%
  Micron Technology Inc. *   315,743    28,900   0.6%
  Texas Instruments Inc.   130,865    22,544   0.4%
Technology—Other *             211,373   4.1%
        439,812 8.6%
Telecommunications                 
  Comcast Corp. Class A 1,286,140    67,805   1.3%
  Verizon Communications Inc. 1,174,913    64,973   1.3%
  AT&T Inc. 2,023,872    56,446   1.1%
  Cisco Systems Inc. 1,205,185    54,077   1.1%
19

Russell 1000 Value Index Fund
    Shares Market
Value

($000)
Percentage
of Net
Assets
Telecommunications—Other *              62,143   1.2%
        305,444 6.0%
Utilities                 
  NextEra Energy Inc.   555,541    40,821   0.8%
Utilities—Other *             223,581   4.4%
        264,402 5.2%
Total Common Stocks (Cost $4,211,860) 5,088,366 99.7%
Temporary Cash Investments
Money Market Fund
  Vanguard Market Liquidity Fund, 0.099% (Cost $7,365)2,3    73,651          7,365      0.1%
Total Investments (Cost $4,219,225) 5,095,731 99.8%
Other Assets and Liabilities—Net 9,561 0.2%
Net Assets 5,105,292 100.0%
Cost is in $000.
See Note A in Notes to Financial Statements.
Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
* Non-income-producing security.
1 Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $539,000.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Collateral of $532,000 was received for securities on loan, of which $531,000 is held in Vanguard Market Liquidity Fund and $1,000 is held in cash.
  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
      ($000)
  Expiration Number of
Long (Short)
Contracts
Notional
Amount
Value and
Unrealized
Appreciation
(Depreciation)
Long Futures Contracts        
E-mini S&P 500 Index March 2021 62 11,809 (83)
    
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)
Walmart Inc. 8/31/21 BOANA 5,846 (0.120) (1)
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.
  BOANA—Bank of America, N.A.
  
See accompanying Notes, which are an integral part of the Financial Statements.
20

Russell 1000 Value Index Fund
Statement of Assets and Liabilities
As of February 28, 2021
($000s, except shares and per-share amounts) Amount
Assets  
Investments in Securities, at Value  
Unaffiliated Issuers (Cost $4,211,860) 5,088,366
Affiliated Issuers (Cost $7,365) 7,365
Total Investments in Securities 5,095,731
Investment in Vanguard 180
Cash 1
Cash Collateral Pledged—Futures Contracts 514
Receivables for Investment Securities Sold 379
Receivables for Accrued Income 9,934
Receivables for Capital Shares Issued 1,274
Total Assets 5,108,013
Liabilities  
Due to Custodian 991
Payables for Investment Securities Purchased 724
Collateral for Securities on Loan 532
Payables for Capital Shares Redeemed 249
Payables to Vanguard 183
Variation Margin Payable—Futures Contracts 41
Unrealized Depreciation—Over-the-Counter Swap Contracts 1
Total Liabilities 2,721
Net Assets 5,105,292
At February 28, 2021, net assets consisted of:  
   
Paid-in Capital 4,551,456
Total Distributable Earnings (Loss) 553,836
Net Assets 5,105,292
 
ETF Shares—Net Assets  
Applicable to 29,725,000 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
3,744,219
Net Asset Value Per Share—ETF Shares $125.96
 
Institutional Shares—Net Assets  
Applicable to 5,533,180 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
1,361,073
Net Asset Value Per Share—Institutional Shares $245.98
  
See accompanying Notes, which are an integral part of the Financial Statements.
21

Russell 1000 Value Index Fund
Statement of Operations
  Six Months Ended
February 28, 2021
  ($000)
Investment Income  
Income  
Dividends 47,279
Interest1 3
Securities Lending—Net 57
Total Income 47,339
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 329
Management and Administrative—ETF Shares 775
Management and Administrative—Institutional Shares 262
Marketing and Distribution—ETF Shares 75
Marketing and Distribution—Institutional Shares 21
Custodian Fees 199
Shareholders’ Reports—ETF Shares 17
Shareholders’ Reports—Institutional Shares
Trustees’ Fees and Expenses
Total Expenses 1,678
Net Investment Income 45,661
Realized Net Gain (Loss)  
Investment Securities Sold1,2 64,802
Futures Contracts 494
Swap Contracts 68
Realized Net Gain (Loss) 65,364
Change in Unrealized Appreciation (Depreciation)  
Investment Securities1 665,400
Futures Contracts (87)
Swap Contracts (450)
Change in Unrealized Appreciation (Depreciation) 664,863
Net Increase (Decrease) in Net Assets Resulting from Operations 775,888
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,000, $0, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes.
2 Includes $79,715,000 of net gain (loss) resulting from in-kind redemptions.
  
See accompanying Notes, which are an integral part of the Financial Statements.
22

Russell 1000 Value Index Fund
Statement of Changes in Net Assets
  Six Months Ended
February 28,
2021
  Year Ended
August 31,
2020
  ($000)   ($000)
Increase (Decrease) in Net Assets      
Operations      
Net Investment Income 45,661   100,739
Realized Net Gain (Loss) 65,364   (100,042)
Change in Unrealized Appreciation (Depreciation) 664,863   59,529
Net Increase (Decrease) in Net Assets Resulting from Operations 775,888   60,226
Distributions      
ETF Shares (35,969)   (60,505)
Institutional Shares (14,726)   (42,607)
Total Distributions (50,695)   (103,112)
Capital Share Transactions      
ETF Shares 577,058   674,867
Institutional Shares (49,787)   (582,146)
Net Increase (Decrease) from Capital Share Transactions 527,271   92,721
Total Increase (Decrease) 1,252,464   49,835
Net Assets      
Beginning of Period 3,852,828   3,802,993
End of Period 5,105,292   3,852,828
  
See accompanying Notes, which are an integral part of the Financial Statements.
23

Russell 1000 Value Index Fund
Financial Highlights
ETF Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
February 28,
2021
Year Ended August 31,
2020 2019 2018 2017 2016
Net Asset Value, Beginning of Period $107.03 $109.22 $111.20 $101.32 $93.14 $84.77
Investment Operations            
Net Investment Income 1.1951 2.8151 2.7131 2.5221 2.4371 2.205
Net Realized and Unrealized Gain (Loss) on Investments 19.074 (2.121) (2.107) 9.836 8.109 8.312
Total from Investment Operations 20.269 .694 .606 12.358 10.546 10.517
Distributions            
Dividends from Net Investment Income (1.339) (2.884) (2.586) (2.478) (2.366) (2.147)
Distributions from Realized Capital Gains
Total Distributions (1.339) (2.884) (2.586) (2.478) (2.366) (2.147)
Net Asset Value, End of Period $125.96 $107.03 $109.22 $111.20 $101.32 $93.14
Total Return 19.09% 0.75% 0.60% 12.36% 11.45% 12.65%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $3,744 $2,646 $1,914 $1,487 $1,153 $668
Ratio of Total Expenses to Average Net Assets 0.08% 0.08% 0.08% 0.12% 0.12% 0.12%
Ratio of Net Investment Income to Average Net Assets 2.16% 2.65% 2.51% 2.35% 2.48% 2.58%
Portfolio Turnover Rate2 2% 24% 17% 16% 22% 18%
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.
24

Russell 1000 Value Index Fund
Financial Highlights
Institutional Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
February 28,
2021
Year Ended August 31,
2020 2019 2018 2017 2016
Net Asset Value, Beginning of Period $209.00 $213.25 $217.14 $197.85 $181.86 $165.50
Investment Operations            
Net Investment Income 2.3571 5.5941 5.2941 4.9781 4.8501 4.359
Net Realized and Unrealized Gain (Loss) on Investments 37.245 (4.226) (4.087) 19.227 15.821 16.249
Total from Investment Operations 39.602 1.368 1.207 24.205 20.671 20.608
Distributions            
Dividends from Net Investment Income (2.622) (5.618) (5.097) (4.915) (4.681) (4.248)
Distributions from Realized Capital Gains
Total Distributions (2.622) (5.618) (5.097) (4.915) (4.681) (4.248)
Net Asset Value, End of Period $245.98 $209.00 $213.25 $217.14 $197.85 $181.86
Total Return 19.11% 0.81% 0.61% 12.39% 11.49% 12.72%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $1,361 $1,207 $1,889 $1,603 $1,541 $1,485
Ratio of Total Expenses to Average Net Assets 0.07% 0.07% 0.07% 0.08% 0.08% 0.08%
Ratio of Net Investment Income to Average Net Assets 2.19% 2.64% 2.52% 2.39% 2.52% 2.62%
Portfolio Turnover Rate2 2% 24% 17% 16% 22% 18%
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.
25

Russell 1000 Value Index Fund
Notes to Financial Statements
Vanguard Russell 1000 Value Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF 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 Nasdaq; they can be purchased and sold through a broker. In March 2021, the board of trustees authorized a two-for-one share split of the fund’s ETF share class, which is expected to occur after the close of trading on April 19, 2021. Each ETF shareholder who owns shares as of the close of trading on that date will receive one additional share for every share held. The share split will have no effect on fund net assets, but it will decrease the net asset value per share. Additionally, the share split will have no effect on total return.
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 Vanguard Market Liquidity Fund are valued at that fund's net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in
26

Russell 1000 Value Index Fund
the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the six months ended February 28, 2021, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
3.  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 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 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 February 28, 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.
27

Russell 1000 Value Index Fund
4. 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.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. 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.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
7. 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 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
28

Russell 1000 Value Index Fund
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 February 28, 2021, the fund did not utilize the credit facilities or the Interfund Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) 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 February 28, 2021, the fund had contributed to Vanguard capital in the amount of $180,000, representing less than 0.01% of the fund’s net assets and 0.07% 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.
29

Russell 1000 Value Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2021, based on the inputs used to value them:
  Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
Investments        
Assets        
Common Stocks 5,088,366 5,088,366
Temporary Cash Investments 7,365 7,365
Total 5,095,731 5,095,731
Derivative Financial Instruments        
Liabilities        
Futures Contracts1 83 83
Swap Contracts 1 1
Total 83 1 84
1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
D. As of February 28, 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 4,227,257
Gross Unrealized Appreciation 1,017,400
Gross Unrealized Depreciation (149,008)
Net Unrealized Appreciation (Depreciation) 868,392
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2020, the fund had available capital losses totaling $401,214,000 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 August 31, 2021; 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 February 28, 2021, the fund purchased $857,706,000 of investment securities and sold $343,226,000 of investment securities, other than temporary cash investments. Purchases and sales include $741,097,000 and $248,623,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
30

Russell 1000 Value Index Fund
F. Capital share transactions for each class of shares were:
    
  Six Months Ended
February 28, 2021
  Year Ended
August 31, 2020
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
ETF Shares          
Issued 826,926 7,200   1,468,858 14,775
Issued in Lieu of Cash Distributions  
Redeemed (249,868) (2,200)   (793,991) (7,575)
Net Increase (Decrease)—ETF Shares 577,058 5,000   674,867 7,200
Institutional Shares          
Issued 142,011 608   342,811 1,698
Issued in Lieu of Cash Distributions 13,022 60   38,347 191
Redeemed (204,820) (908)   (963,304) (4,974)
Net Increase (Decrease)—Institutional Shares (49,787) (240)   (582,146) (3,085)
G. Management has determined that no events or transactions occurred subsequent to February 28, 2021, that would require recognition or disclosure in these financial statements.
31

Russell 1000 Growth Index Fund
Fund Allocation
As of February 28, 2021
Basic Materials 0.4%
Consumer Discretionary 20.0
Consumer Staples 3.4
Energy 0.3
Financials 2.1
Health Care 13.3
Industrials 12.3
Real Estate 1.8
Technology 45.6
Telecommunications 0.8
Utilities 0.0
The table reflects the fund’s investments, except short-term investments and derivatives. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB 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.
32

Russell 1000 Growth Index Fund
Financial Statements (unaudited)
Statement of Net Assets-Investment Summary
As of February 28, 2021
This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) four times in each fiscal year. For the second and fourth quarters the complete list of the fund’s holdings is available on vanguard.com and on Form N-CSR, or you can have it mailed to you without charge by calling 800-662-7447. For the first and third quarters of each fiscal year, the complete list of the fund’s holdings is available as an exhibit to its reports on Form N-PORT. The fund’s Form N-CSR and Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value
($000)
Percentage
of Net
Assets
Common Stocks
Basic Materials          30,501       0.4%
Consumer Discretionary                 
  Amazon.com Inc. *   201,938   624,580   7.2%
  Tesla Inc. *   360,123   243,263   2.8%
  Netflix Inc. *   202,533   109,135   1.3%
  NIKE Inc. Class B   583,704    78,672   0.9%
  Home Depot Inc.   255,773    66,076   0.8%
  Costco Wholesale Corp.   185,496    61,399   0.7%
  Lowe's Cos. Inc.   359,974    57,506   0.7%
  Booking Holdings Inc. *    19,457    45,306   0.5%
  Starbucks Corp.   321,016    34,679   0.4%
Consumer Discretionary—Other *             417,536   4.7%
      1,738,152 20.0%
Consumer Staples                 
  Procter & Gamble Co.   518,695    64,074   0.7%
  PepsiCo Inc.   484,948    62,650   0.7%
  Coca-Cola Co. 1,080,216    52,920   0.6%
Consumer Staples—Other *,1             111,695   1.4%
        291,339 3.4%
Energy*          23,338       0.3%
Financials*,1          179,232       2.1%
Health Care                 
  UnitedHealth Group Inc.   373,905   124,219   1.4%
  AbbVie Inc.   788,542    84,958   1.0%
  Eli Lilly and Co.   401,113    82,184   0.9%
  Merck & Co. Inc. 1,051,104    76,331   0.9%
33

Russell 1000 Growth Index Fund
    Shares Market
Value

($000)
Percentage
of Net
Assets
  Amgen Inc.   277,363    62,385   0.7%
  Thermo Fisher Scientific Inc.   110,399    49,688   0.6%
  Intuitive Surgical Inc. *    55,098    40,596   0.5%
  Abbott Laboratories   315,958    37,845   0.4%
  Zoetis Inc.   204,729    31,782   0.4%
  Illumina Inc. *    69,843    30,690   0.4%
Health Care—Other *             538,012   6.1%
      1,158,690 13.3%
Industrials                 
  Visa Inc. Class A   804,084   170,779   2.0%
  Mastercard Inc. Class A   420,145   148,668   1.7%
  PayPal Holdings Inc. *   559,327   145,341   1.7%
  Accenture plc Class A   303,542    76,159   0.9%
  Square Inc. Class A *   175,925    40,468   0.5%
  Lockheed Martin Corp.   117,782    38,898   0.5%
  United Parcel Service Inc. Class B   225,139    35,534   0.4%
  Union Pacific Corp.   164,846    33,952   0.4%
  3M Co.   176,561    30,909   0.4%
Industrials—Other *             344,304   3.8%
      1,065,012 12.3%
Real Estate                 
  American Tower Corp.   210,063    45,401   0.5%
Real Estate—Other *             115,067   1.3%
        160,468 1.8%
Technology                 
  Apple Inc. 7,685,725   931,971  10.7%
  Microsoft Corp. 3,566,326   828,743   9.5%
  Facebook Inc. Class A * 1,143,605   294,616   3.4%
  Alphabet Inc. Class A *   110,952   224,335   2.6%
  Alphabet Inc. Class C *   107,447   218,855   2.5%
  NVIDIA Corp.   281,148   154,232   1.8%
  Adobe Inc. *   229,131   105,325   1.2%
  salesforce.com Inc. *   387,118    83,811   1.0%
  Broadcom Inc.   178,290    83,773   1.0%
  QUALCOMM Inc.   535,984    72,996   0.8%
  Applied Materials Inc.   436,250