Annual Report   |   October 31, 2022
Vanguard International Dividend Index Funds
Vanguard International Dividend Appreciation Index Fund
Vanguard International High Dividend Yield Index Fund

Contents
Your Fund’s Performance at a Glance

1
About Your Fund’s Expenses

2
International Dividend Appreciation Index Fund

4
International High Dividend Yield Index Fund

27
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

Your Fund’s Performance at a Glance
The 12 months ended October 31, 2022, were a volatile, challenging period for financial markets. Returns for Vanguard International High Dividend Yield Index Fund were –15.52% for Admiral Shares and –15.16% for ETF Shares. Vanguard International Dividend Appreciation Index Fund returned –23.22% for Admiral Shares and –22.90% for ETF Shares. Returns for ETF Shares are based on net asset value.
The economic backdrop deteriorated as inflation soared to multidecade highs, fueled in part by higher energy and food prices in the wake of Russia’s invasion of Ukraine. Then price increases broadened to other categories of goods and services, adding to concerns that inflation would remain stubbornly high. That prompted aggressive tightening by many central banks to bring inflation back in check and increased fears of a recession.
For both funds, all the major regions detracted from the index return for the 12 months. Europe, by far the largest weighting in both indexes at more than 40%, hurt returns the most.
Among sectors, financials detracted most from the index return for the International High Dividend Yield Index Fund, followed by consumer discretionary and industrials. Only energy made a positive contribution. For the International Dividend Appreciation Index Fund, technology and industrials hurt the index return the most. The only sector to make a slightly positive contribution was telecommunications, which had a small weighting in the index.
Market Barometer
  Average Annual Total Returns
Periods Ended October 31, 2022
  One Year Three Years Five Years
Stocks      
Russell 1000 Index (Large-caps) -16.38% 9.99% 10.19%
Russell 2000 Index (Small-caps) -18.54 7.05 5.56
Russell 3000 Index (Broad U.S. market) -16.52 9.79 9.87
FTSE All-World ex US Index (International) -24.20 -1.16 -0.18
Bonds      
Bloomberg U.S. Aggregate Float Adjusted Index
(Broad taxable market)
-15.69% -3.73% -0.50%
Bloomberg Municipal Bond Index
(Broad tax-exempt market)
-11.98 -2.18 0.37
FTSE Three-Month U.S. Treasury Bill Index 0.88 0.59 1.15
CPI      
Consumer Price Index 7.75% 5.01% 3.85%
  
Fund returns are adjusted to reflect the 0.25% fee on purchases of fund shares. The fee does not apply to the ETF Shares.
1

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.
2

Six Months Ended October 31, 2022      
  Beginning
Account Value
4/30/2022
Ending
Account Value
10/31/2022
Expenses
Paid During
Period
Based on Actual Fund Return      
International Dividend Appreciation Index Fund      
ETF Shares $1,000.00 $867.40 $0.75
Admiral™ Shares 1,000.00 867.90 0.80
International High Dividend Yield Index Fund      
ETF Shares $1,000.00 $884.00 $1.09
Admiral Shares 1,000.00 884.40 1.09
Based on Hypothetical 5% Yearly Return      
International Dividend Appreciation Index Fund      
ETF Shares $1,000.00 $1,024.40 $0.82
Admiral Shares 1,000.00 1,024.35 0.87
International High Dividend Yield Index Fund      
ETF Shares $1,000.00 $1,024.05 $1.17
Admiral Shares 1,000.00 1,024.05 1.17
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 International Dividend Appreciation Index Fund, 0.16% for ETF Shares and 0.17% for Admiral Shares; and for the International High Dividend Yield Index Fund, 0.23% for ETF Shares and 0.23% for Admiral 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 (184/365).
3

International Dividend Appreciation Index Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: February 25, 2016, Through October 31, 2022
Initial Investment of $10,000
    Average Annual Total Returns
Periods Ended October 31, 2022
 
    One
Year
Five
Years
Since
Inception
(2/25/2016)
Final Value
of a $10,000
Investment
 International Dividend Appreciation Index Fund ETF Shares Net Asset Value -22.90% 2.82% 6.41% $15,143
  International Dividend Appreciation Index Fund ETF Shares Market Price -22.95 2.80 6.45 15,183
 Spliced S&P Global Ex-U.S. Dividend Growers Index -22.87 3.05 6.71 15,427
“Since Inception” performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standard(s).
Spliced S&P Global Ex-U.S. Dividend Growers Index: NASDAQ International Dividend Achievers Select Index through September 19, 2021; S&P Global Ex-U.S. Dividend Growers Index thereafter.
       
    One
Year
Five
Years
Since
Inception
(3/2/2016)
Final Value
of a $10,000
Investment
International Dividend Appreciation Index Fund Admiral Shares -23.22% 2.74% 5.91% $14,660
Spliced S&P Global Ex-U.S. Dividend Growers Index -22.87 3.05 6.25 14,975
“Since Inception” performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standard(s).
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares.
See Financial Highlights for dividend and capital gains information.
4

International Dividend Appreciation Index Fund
Cumulative Returns of ETF Shares: February 25, 2016, Through October 31, 2022
  One
Year
Five
Years
Since
Inception
(2/25/2016)
International Dividend Appreciation Index Fund ETF Shares Market Price -22.95% 14.82% 51.83%
International Dividend Appreciation Index Fund ETF Shares Net Asset Value -22.90 14.92 51.43
Spliced S&P Global Ex-U.S. Dividend Growers Index -22.87 16.19 54.27
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standard(s).
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and click on Price, and then scroll down to the Premium/Discount Chart. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares.
5

International Dividend Appreciation Index Fund
Fund Allocation
As of October 31, 2022
Canada 17.9%
Switzerland 17.0
Japan 15.2
United Kingdom 7.8
India 7.3
Denmark 6.1
France 5.2
Germany 4.9
Australia 4.0
Hong Kong 3.6
China 3.2
Sweden 2.4
Indonesia 1.0
Other 4.4
The table reflects the fund’s investments, except for short-term investments and derivatives.
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.
6

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

($000)
Common Stocks (99.5%)
Australia (4.0%)
  CSL Ltd.    546,756    97,878
  Sonic Healthcare Ltd.    544,459    11,399
  Computershare Ltd. (XASX)    650,386    10,528
  Northern Star Resources Ltd.  1,322,652     7,382
  carsales.com Ltd.    398,033     5,156
  Washington H Soul Pattinson & Co. Ltd.    278,981     4,993
  Steadfast Group Ltd.  1,110,439     3,598
  Altium Ltd.    139,150     3,142
  Technology One Ltd.    315,427     2,427
  Brickworks Ltd.     98,835     1,399
  AUB Group Ltd.    105,131     1,391
  Collins Foods Ltd.    133,803       803
  Dicker Data Ltd.     66,376       457
        150,553
Belgium (0.4%)
  UCB SA    143,608    10,823
  Sofina SA     18,199     3,549
         14,372
Brazil (0.2%)
  Raia Drogasil SA  1,219,266     6,210
Canada (17.8%)
  Toronto-Dominion Bank  2,051,311   131,283
  Canadian National Railway Co.    698,739    82,781
  Canadian Natural Resources Ltd.  1,275,260    76,487
  Brookfield Asset Management Inc. Class A  1,623,407    64,288
  Alimentation Couche-Tard Inc.    892,795    39,975
  Intact Financial Corp.    198,942    30,229
  Franco-Nevada Corp.    217,168    26,833
  Agnico Eagle Mines Ltd.    517,879    22,782
  Fortis Inc. (XTSE)    543,515    21,204
  Dollarama Inc.    326,457    19,398
  Magna International Inc.    305,684    17,035
  Loblaw Cos. Ltd.    175,161    14,351
  Metro Inc.    270,224    14,156
  Imperial Oil Ltd.    222,124    12,083
  Open Text Corp.    306,319     8,873
  George Weston Ltd.     76,205     8,388
  TFI International Inc.     90,471     8,235
    Shares Market
Value

($000)
  Ritchie Bros Auctioneers Inc.    125,616     8,206
  CCL Industries Inc. Class B    165,007     7,752
  Toromont Industries Ltd.     93,013     7,148
1 Canadian Tire Corp. Ltd. Class A     63,347     7,100
  Saputo Inc.    274,672     6,686
  Stantec Inc.    125,130     6,123
  Empire Co. Ltd. Class A    186,655     4,795
  Finning International Inc.    175,555     3,733
  Parkland Corp.    178,384     3,606
  Boyd Group Services Inc.     24,345     3,464
  Premium Brands Holdings Corp. Class A     42,515     2,508
  Canadian Western Bank    108,609     1,890
  Stella-Jones Inc.     61,758     1,860
  Maple Leaf Foods Inc.     86,105     1,276
  Cogeco Communications Inc.     23,180     1,182
  goeasy Ltd.     14,490     1,176
  Enghouse Systems Ltd.     48,129     1,070
  Savaria Corp.     53,166       507
  Cogeco Inc.     10,831       461
  Hardwoods Distribution Inc.     23,166       426
        669,350
China (3.1%)
  Tencent Holdings Ltd.  3,605,824    94,750
  CSPC Pharmaceutical Group Ltd.  9,504,000     9,762
  Shenzhou International Group Holdings Ltd.    908,900     6,311
  China Tourism Group Duty Free Corp. Ltd. Class A    176,355     3,875
  China Resources Gas Group Ltd.  1,024,700     2,624
  Angel Yeast Co. Ltd. Class A     79,000       393
        117,715
Colombia (0.1%)
  Grupo Nutresa SA    125,365     1,346
  Grupo de Inversiones Suramericana SA    120,084       968
  Grupo Argos SA    387,449       804
  Grupo De Inversiones Suramericana SA Preference Shares     63,046       174
          3,292
7

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
Denmark (6.1%)
  Novo Nordisk A/S Class B  1,685,491   183,266
  DSV A/S    217,931    29,449
  Coloplast A/S Class B    134,783    15,024
        227,739
Finland (0.1%)
  Huhtamaki OYJ    108,928     3,915
  Revenio Group OYJ     31,133     1,158
          5,073
France (5.2%)
  Sanofi  1,309,661   112,707
  Schneider Electric SE    648,431    81,998
  Pharmagest Interactive      5,983       420
        195,125
Germany (4.9%)
  SAP SE  1,241,035   119,453
  Symrise AG Class A    150,927    15,406
  Fresenius SE & Co. KGaA    465,954    10,723
  Brenntag SE    176,270    10,696
  Fresenius Medical Care AG & Co. KGaA    227,582     6,295
  LEG Immobilien SE (XETR)     85,798     5,601
  Bechtle AG     94,677     3,271
  Nemetschek SE     63,617     3,033
  Encavis AG    138,793     2,584
  Gerresheimer AG     31,074     1,780
  FUCHS PETROLUB SE Preference Shares     59,022     1,690
  FUCHS PETROLUB SE     58,752     1,417
  STRATEC SE      8,185       686
  TAG Immobilien AG     96,012       601
  Atoss Software AG      4,745       578
  Cewe Stiftung & Co. KGaA      6,643       520
  MBB SE      2,922       244
        184,578
Hong Kong (3.5%)
  AIA Group Ltd. 13,552,760   102,659
  Techtronic Industries Co. Ltd.  2,085,064    19,743
  Hong Kong & China Gas Co. Ltd. 12,251,145     9,443
  SUNeVision Holdings Ltd.  1,570,000       832
        132,677
India (7.2%)
  Reliance Industries Ltd.  3,900,786   120,366
  Infosys Ltd. ADR  3,210,231    60,128
  Hindustan Unilever Ltd.  1,008,850    31,127
  Asian Paints Ltd.    509,476    19,178
  Infosys Ltd.    920,370    17,154
  Pidilite Industries Ltd.    171,438     5,361
  Tata Elxsi Ltd.     39,514     3,340
  Persistent Systems Ltd.     56,888     2,538
  Astral Ltd. (XNSE)    100,163     2,460
  Sundaram Finance Ltd.     75,959     2,158
  Berger Paints India Ltd.    273,472     1,939
  LIC Housing Finance Ltd.    347,080     1,701
  KEI Industries Ltd.     61,190     1,195
  CRISIL Ltd.     27,224       987
  Relaxo Footwears Ltd.     80,276       938
  KEC International Ltd.    141,401       753
  Balaji Amines Ltd.     11,750       429
  Caplin Point Laboratories Ltd.     26,722       234
    Shares Market
Value

($000)
* Yes Bank Ltd.    545,158       103
        272,089
Indonesia (1.0%)
  Bank Central Asia Tbk PT 62,874,000    35,541
Ireland (0.4%)
  Kerry Group plc Class A    177,065    15,379
Israel (0.0%)
  Matrix IT Ltd.     38,437       829
Italy (0.4%)
  Recordati Industria Chimica e Farmaceutica SpA    114,866     4,316
  DiaSorin SpA     29,825     3,899
  Interpump Group SpA     94,287     3,650
  Reply SpA     25,761     2,802
         14,667
Japan (15.2%)
  Shin-Etsu Chemical Co. Ltd.    472,700    49,128
  Tokio Marine Holdings Inc.  2,314,300    41,901
  Nippon Telegraph & Telephone Corp.  1,354,900    37,369
  Murata Manufacturing Co. Ltd.    726,380    34,386
  Seven & i Holdings Co. Ltd.    905,300    33,793
  Astellas Pharma Inc.  2,078,000    28,673
  Terumo Corp.    860,176    26,105
  Kao Corp.    538,600    20,118
  Aeon Co. Ltd.    987,600    18,419
  Asahi Group Holdings Ltd.    575,743    16,110
  Unicharm Corp.    500,400    15,208
  Shionogi & Co. Ltd.    321,300    14,920
  M3 Inc.    485,400    14,465
  Sekisui House Ltd.    772,600    12,827
  Obic Co. Ltd.     75,500    11,330
  Nomura Research Institute Ltd.    506,300    11,205
  Yakult Honsha Co. Ltd.    181,800    10,072
  Pan Pacific International Holdings Corp.    605,564     9,938
  Nitto Denko Corp.    171,000     9,009
  Nitori Holdings Co. Ltd.     98,801     8,953
  Nissan Chemical Corp.    159,732     7,190
  TIS Inc.    258,300     6,964
  Hulic Co. Ltd.    685,275     4,978
  Chiba Bank Ltd.    836,700     4,584
  Kurita Water Industries Ltd.    121,300     4,440
  MonotaRO Co. Ltd.    277,467     4,212
  Azbil Corp.    146,600     3,984
  Nippon Sanso Holdings Corp.    242,200     3,856
  GMO Payment Gateway Inc.     50,300     3,617
  Kobayashi Pharmaceutical Co. Ltd.     66,900     3,550
  Tokyo Tatemono Co. Ltd.    239,500     3,294
  Nisshin Seifun Group Inc.    297,700     3,217
  Rinnai Corp.     44,884     3,055
  Nomura Real Estate Holdings Inc.    134,980     3,051
  Open House Co. Ltd.     85,400     3,038
 
8

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
  Hitachi Transport System Ltd.     47,100     2,819
  Hikari Tsushin Inc.     23,000     2,778
  Alfresa Holdings Corp.    235,400     2,710
  SCSK Corp.    174,200     2,570
  Itochu Techno-Solutions Corp.    108,203     2,509
  SHO-BOND Holdings Co. Ltd.     56,784     2,456
  Welcia Holdings Co. Ltd.    117,400     2,454
  COMSYS Holdings Corp.    134,900     2,210
  Goldwin Inc.     41,800     2,183
  Zenkoku Hosho Co. Ltd.     61,000     2,013
  Oracle Corp. Japan     36,800     1,960
  Tokyo Century Corp.     54,500     1,859
  Sundrug Co. Ltd.     78,724     1,831
  EXEO Group Inc.    117,000     1,714
  Aica Kogyo Co. Ltd.     79,700     1,713
  Takara Holdings Inc.    230,600     1,604
  Fujitsu General Ltd.     68,500     1,563
  Fuyo General Lease Co. Ltd.     25,600     1,423
  Mani Inc.     95,600     1,393
  NSD Co. Ltd.     79,400     1,357
  TS Tech Co. Ltd.    121,100     1,266
  Yaoko Co. Ltd.     28,100     1,222
  Benefit One Inc.     88,300     1,222
  Nichias Corp.     71,200     1,098
  Maruwa Co. Ltd.      9,200     1,081
  DTS Corp.     45,100     1,072
  PALTAC Corp.     36,254     1,030
  Shoei Co. Ltd.     27,700     1,022
  Japan Material Co. Ltd.     75,800       998
  Funai Soken Holdings Inc.     51,500       918
  TKC Corp.     35,800       914
  Workman Co. Ltd.     26,626       908
  Kissei Pharmaceutical Co. Ltd.     48,400       855
  Takeuchi Manufacturing Co. Ltd.     42,400       855
  Mizuho Leasing Co. Ltd.     39,000       850
  Seria Co. Ltd.     52,012       850
  Information Services International-Dentsu Ltd.     26,700       817
  Raito Kogyo Co. Ltd.     58,700       801
  Tokyo Steel Manufacturing Co. Ltd.     90,000       773
  Nojima Corp.     85,000       708
  Noevir Holdings Co. Ltd.     18,900       699
  Valor Holdings Co. Ltd.     58,812       680
  Riken Keiki Co. Ltd.     24,400       671
  Create SD Holdings Co. Ltd.     31,500       671
  Takara Bio Inc.     56,600       662
  Kohnan Shoji Co. Ltd.     31,400       657
  Ai Holdings Corp.     44,070       652
  eGuarantee Inc.     38,900       628
  Hogy Medical Co. Ltd.     27,400       608
  Future Corp.     52,847       593
  Kameda Seika Co. Ltd.     18,900       584
  Elecom Co. Ltd.     61,432       569
  Eizo Corp.     23,400       569
  JCU Corp.     29,300       554
  Yellow Hat Ltd.     46,000       552
  Sekisui Jushi Corp.     48,100       551
  Okinawa Cellular Telephone Co.     28,000       529
    Shares Market
Value

($000)
  Intage Holdings Inc.     45,600       502
  MCJ Co. Ltd.     76,700       484
  Keihanshin Building Co. Ltd.     54,200       481
  Mitsubishi Research Institute Inc.     13,600       475
  Sanyo Chemical Industries Ltd.     16,600       470
  Tri Chemical Laboratories Inc.     30,900       462
  Aeon Delight Co. Ltd.     22,700       454
  Shizuoka Gas Co. Ltd.     56,900       417
  FULLCAST Holdings Co. Ltd.     20,500       410
  Nippon Parking Development Co. Ltd.    222,200       386
  S Foods Inc.     20,700       379
  Tsurumi Manufacturing Co. Ltd.     25,500       379
  Ricoh Leasing Co. Ltd.     15,500       378
  Retail Partners Co. Ltd.     41,900       345
  Siix Corp.     44,000       339
  Osaka Organic Chemical Industry Ltd.     24,800       331
  Fujicco Co. Ltd.     24,600       315
  Matsuda Sangyo Co. Ltd.     19,600       292
  G-Tekt Corp.     32,000       286
  Mimasu Semiconductor Industry Co. Ltd.     17,900       277
  Elan Corp.     36,100       277
  Fukui Computer Holdings Inc.     11,100       259
  G-7 Holdings Inc.     26,900       258
  Sinko Industries Ltd.     24,000       250
  MarkLines Co. Ltd.     14,100       243
  E-Guardian Inc.     10,400       213
  Value HR Co. Ltd.     17,800       184
  Cresco Ltd.     15,200       177
  Digital Hearts Holdings Co. Ltd.     12,800       175
  WDB Holdings Co. Ltd.     10,000       172
  Creek & River Co. Ltd.     12,200       168
  Members Co. Ltd.      9,100       167
  CTS Co. Ltd.     29,300       158
  Aoyama Zaisan Networks Co. Ltd.     25,300       156
  Densan System Holdings Co. Ltd.      9,100       144
  Furukawa Battery Co. Ltd.     18,100       128
  Japan Best Rescue System Co. Ltd.     18,300        98
  Aval Data Corp.      5,600        92
  Ad-sol Nissin Corp.      7,800        80
  ULS Group Inc.      3,700        78
        569,106
Mexico (0.6%)
  America Movil SAB de CV Series L 21,906,156    20,731
  Grupo Elektra SAB de CV     67,060     3,365
         24,096
Netherlands (0.8%)
  Wolters Kluwer NV    297,589    31,621
New Zealand (0.2%)
  Fisher & Paykel Healthcare Corp. Ltd.    655,968     7,455
 
9

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
Norway (0.2%)
  TOMRA Systems ASA    266,630     4,307
  Borregaard ASA    114,190     1,535
          5,842
South Korea (0.6%)
  NAVER Corp.    169,138    20,063
  LEENO Industrial Inc.     10,042       962
  AfreecaTV Co. Ltd.     10,061       560
  JW Pharmaceutical Corp.     14,764       194
  Interojo Co. Ltd.     11,291       192
  Hanyang Eng Co. Ltd.     16,670       159
         22,130
Sweden (2.4%)
  Hexagon AB Class B  2,421,460    23,938
  Assa Abloy AB Class B  1,128,601    22,789
  Swedish Match AB  1,730,494    17,798
  Nibe Industrier AB Class B  1,746,841    13,934
  Castellum AB    334,609     3,826
  AAK AB    206,130     3,005
  Wihlborgs Fastigheter AB    319,657     2,094
  Fabege AB    198,883     1,444
  Atrium Ljungberg AB Class B     65,726       879
  Svolder AB    123,863       643
         90,350
Switzerland (16.9%)
  Novartis AG (Registered)  2,140,599   173,155
  Nestle SA (Registered)  1,391,208   151,445
  Roche Holding AG    450,667   149,530
  Sika AG (Registered)    174,638    39,377
  Givaudan SA (Registered)      9,023    26,951
  Partners Group Holding AG     25,809    23,166
  Geberit AG (Registered)     40,654    18,072
  Chocoladefabriken Lindt & Spruengli AG Ptg. Ctf.      1,209    11,603
  Chocoladefabriken Lindt & Spruengli AG (Registered)        118    11,468
  Logitech International SA (Registered)    196,638     9,779
  Roche Holding AG (Bearer)     12,965     5,262
  EMS-Chemie Holding AG (Registered)      7,758     4,878
  Temenos AG (Registered)     76,926     4,582
  DKSH Holding AG     40,133     2,895
  Interroll Holding AG (Registered)        841     1,772
  ALSO Holding AG (Registered)      7,113     1,118
  Orior AG      7,786       543
        635,596
Taiwan (0.4%)
  Chailease Holding Co. Ltd.  1,708,582     7,881
  Advantech Co. Ltd.    498,000     4,512
    Shares Market
Value

($000)
  Sinbon Electronics Co. Ltd.    237,000     1,840
  ASPEED Technology Inc.     34,104     1,768
         16,001
United Kingdom (7.8%)
  Diageo plc  2,648,063   108,974
  RELX plc  2,250,139    60,440
  Ashtead Group plc    510,669    26,602
  Croda International plc    162,506    12,589
  Bunzl plc    383,282    12,489
  Halma plc    431,835    10,472
  Sage Group plc  1,250,848    10,426
  Spirax-Sarco Engineering plc     83,830    10,331
  Smurfit Kappa Group plc (XDUB)    296,077     9,801
  DCC plc    116,124     6,445
  Spectris plc    131,294     4,551
  Diploma plc    142,836     4,063
  Dechra Pharmaceuticals plc    131,166     3,943
  B&M European Value Retail SA    980,354     3,623
  Genus plc     75,431     2,205
  Cranswick plc     62,108     2,120
  Sirius Real Estate Ltd.  1,478,552     1,196
  Clarkson plc     32,837     1,039
  Avon Protection plc     36,346       433
        291,742
Total Common Stocks
(Cost $4,187,407)
3,739,128
Temporary Cash Investments (0.2%)
Money Market Fund (0.2%)
2,3 Vanguard Market Liquidity Fund, 3.117% (Cost $9,257)     92,588          9,257
Total Investments (99.7%) (Cost $4,196,664) 3,748,385
Other Assets and Liabilities—Net (0.3%) 9,702
Net Assets (100%) 3,758,087
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 $6,949,000.
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 $7,378,000 was received for securities on loan.
  ADR—American Depositary Receipt.
  Ptg. Ctf.—Participating Certificates.
 
10

International Dividend Appreciation Index Fund

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 December 2022 16 3,106 33
Euro Stoxx 50 Index December 2022 174 6,221 169
MSCI Emerging Markets Index December 2022 110 4,695 (389)
Topix Index December 2022 34 4,404 62
        (125)
    
Forward Currency Contracts
  Contract
Settlement
Date
Contract Amount (000) Unrealized
Appreciation
($000)
Unrealized
Depreciation
($000)
Counterparty Receive Deliver
Bank of America, N.A. 12/21/22 EUR 4,694 USD 4,719 (60)
Bank of America, N.A. 12/21/22 INR 242,527 USD 3,011 (94)
Standard Chartered Bank 12/21/22 JPY 388,888 USD 2,757 (124)
Bank of America, N.A. 12/21/22 USD 9,647 CHF 9,408 191
Bank of America, N.A. 12/21/22 USD 2,134 GBP 1,846 13
State Street Bank & Trust Co. 12/21/22 USD 2,137 JPY 306,329 63
            267 (278)
CHF—Swiss franc.
EUR—euro.
GBP—British pound.
INR—Indian rupee.
JPY—Japanese yen.
USD—U.S. dollar.
  
See accompanying Notes, which are an integral part of the Financial Statements.
11

International Dividend Appreciation Index Fund
Statement of Assets and Liabilities
As of October 31, 2022
($000s, except shares and per-share amounts) Amount
Assets  
Investments in Securities, at Value1  
Unaffiliated Issuers (Cost $4,187,407) 3,739,128
Affiliated Issuers (Cost $9,257) 9,257
Total Investments in Securities 3,748,385
Investment in Vanguard 144
Cash Collateral Pledged—Futures Contracts 1,265
Cash Collateral Pledged—Forward Currency Contracts 10
Cash Collateral Received for ETF Capital Activity 2,701
Foreign Currency, at Value (Cost $2,319) 2,212
Receivables for Accrued Income 14,812
Receivables for Capital Shares Issued 1,620
Variation Margin Receivable—Futures Contracts 514
Unrealized Appreciation—Forward Currency Contracts 267
Total Assets 3,771,930
Liabilities  
Due to Custodian 505
Payables for Investment Securities Purchased 60
Collateral for Securities on Loan 7,378
Collateral for ETF Capital Activity 2,701
Payables for Capital Shares Redeemed 72
Payables to Vanguard 327
Unrealized Depreciation—Forward Currency Contracts 278
Deferred Foreign Capital Gains Taxes 2,522
Total Liabilities 13,843
Net Assets 3,758,087
1 Includes $6,949 of securities on loan.  
12

International Dividend Appreciation Index Fund
Statement of Assets and Liabilities (continued)

At October 31, 2022, net assets consisted of:  
($000s, except shares and per-share amounts) Amount
Paid-in Capital 4,221,762
Total Distributable Earnings (Loss) (463,675)
Net Assets 3,758,087
 
ETF Shares—Net Assets  
Applicable to 54,713,032 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
3,508,348
Net Asset Value Per Share—ETF Shares $64.12
 
Admiral Shares—Net Assets  
Applicable to 7,995,579 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
249,739
Net Asset Value Per Share—Admiral Shares $31.23
  
See accompanying Notes, which are an integral part of the Financial Statements.
13

International Dividend Appreciation Index Fund
Statement of Operations
  Year Ended
October 31, 2022
  ($000)
Investment Income  
Income  
Dividends1 78,128
Non-Cash Dividends 5,109
Interest2 50
Securities Lending—Net 154
Total Income 83,441
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 418
Management and Administrative—ETF Shares 4,690
Management and Administrative—Admiral Shares 387
Marketing and Distribution—ETF Shares 176
Marketing and Distribution—Admiral Shares 13
Custodian Fees 334
Auditing Fees 40
Shareholders’ Reports—ETF Shares 138
Shareholders’ Reports—Admiral Shares 9
Trustees’ Fees and Expenses 2
Other Expenses 112
Total Expenses 6,319
Expenses Paid Indirectly (8)
Net Expenses 6,311
Net Investment Income 77,130
Realized Net Gain (Loss)  
Investment Securities Sold2,3,4 (14,976)
Futures Contracts (4,573)
Forward Currency Contracts (188)
Foreign Currencies (1,432)
Realized Net Gain (Loss) (21,169)
14

International Dividend Appreciation Index Fund
Statement of Operations (continued)
  Year Ended
October 31, 2022
  ($000)
Change in Unrealized Appreciation (Depreciation)  
Investment Securities2,5 (1,129,412)
Futures Contracts (167)
Forward Currency Contracts 315
Foreign Currencies (1,189)
Change in Unrealized Appreciation (Depreciation) (1,130,453)
Net Increase (Decrease) in Net Assets Resulting from Operations (1,074,492)
1 Dividends are net of foreign withholding taxes of $9,927,000.
2 Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $43,000, ($16,000), less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3 Realized gain (loss) is net of foreign capital gain taxes of $1,863,000.
4 Includes $2,826,000 of net gain (loss) resulting from in-kind redemptions.
5 The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($2,118,000).
  
See accompanying Notes, which are an integral part of the Financial Statements.
15

International Dividend Appreciation Index Fund
Statement of Changes in Net Assets
  Year Ended October 31,
  2022
($000)
2021
($000)
     
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 77,130 48,504
Realized Net Gain (Loss) (21,169) 459,247
Change in Unrealized Appreciation (Depreciation) (1,130,453) 351,103
Net Increase (Decrease) in Net Assets Resulting from Operations (1,074,492) 858,854
Distributions    
ETF Shares (304,771) (39,771)
Admiral Shares (23,591) (3,300)
Total Distributions (328,362) (43,071)
Capital Share Transactions    
ETF Shares 662,695 943,215
Admiral Shares 25,028 38,209
Net Increase (Decrease) from Capital Share Transactions 687,723 981,424
Total Increase (Decrease) (715,131) 1,797,207
Net Assets    
Beginning of Period 4,473,218 2,676,011
End of Period 3,758,087 4,473,218
  
See accompanying Notes, which are an integral part of the Financial Statements.
16

International Dividend Appreciation Index Fund
Financial Highlights
ETF Shares          
For a Share Outstanding
Throughout Each Period 
Year Ended October 31,
2022 2021 2020 2019 2018
Net Asset Value, Beginning of Period $89.86 $69.97 $68.72 $58.65 $64.25
Investment Operations          
Net Investment Income1 1.401 1.094 .958 1.4522 1.196
Net Realized and Unrealized Gain (Loss) on Investments3 (20.753) 19.776 1.551 9.578 (5.623)
Total from Investment Operations (19.352) 20.870 2.509 11.030 (4.427)
Distributions          
Dividends from Net Investment Income (1.206) (.980) (1.259) (.960) (1.173)
Distributions from Realized Capital Gains (5.182)
Total Distributions (6.388) (.980) (1.259) (.960) (1.173)
Net Asset Value, End of Period $64.12 $89.86 $69.97 $68.72 $58.65
Total Return -22.90% 29.93% 3.73% 18.96% -7.04%
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $3,508 $4,150 $2,456 $1,305 $861
Ratio of Total Expenses to Average Net Assets 0.15%4 0.15% 0.20% 0.20% 0.25%
Ratio of Net Investment Income to Average Net Assets 1.87% 1.28% 1.40% 2.24%2 1.83%
Portfolio Turnover Rate5 22% 65% 17% 42% 36%
1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $.388 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3 Includes increases from purchase and redemption fees of $.00, $.00, $.01, $.02, and $.02. 
4 The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.15%.
5 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.
17

International Dividend Appreciation Index Fund
Financial Highlights
Admiral Shares          
For a Share Outstanding
Throughout Each Period 
Year Ended October 31,
2022 2021 2020 2019 2018
Net Asset Value, Beginning of Period $43.72 $34.03 $33.42 $28.52 $31.24
Investment Operations          
Net Investment Income1 .675 .518 .453 .6862 .576
Net Realized and Unrealized Gain (Loss) on Investments3 (10.061) 9.645 .765 4.679 (2.727)
Total from Investment Operations (9.386) 10.163 1.218 5.365 (2.151)
Distributions          
Dividends from Net Investment Income (.583) (.473) (.608) (.465) (.569)
Distributions from Realized Capital Gains (2.521)
Total Distributions (3.104) (.473) (.608) (.465) (.569)
Net Asset Value, End of Period $31.23 $43.72 $34.03 $33.42 $28.52
Total Return4 -22.85% 29.96% 3.72% 18.96% -7.03%
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $250 $323 $220 $218 $175
Ratio of Total Expenses to Average Net Assets 0.16%5 0.16% 0.20% 0.20% 0.25%
Ratio of Net Investment Income to Average Net Assets 1.85% 1.25% 1.36% 2.24%2 1.83%
Portfolio Turnover Rate6 22% 65% 17% 42% 36%
1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $.188 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, and $.01.
4 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
5 The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.16%.
6 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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International Dividend Appreciation Index Fund
Notes to Financial Statements
Vanguard International Dividend Appreciation 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 Admiral 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.
The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been 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 valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, 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.
19

International Dividend Appreciation Index Fund
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.
During the year ended October 31, 2022, 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.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts 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. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, 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 forward currency 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 forward currency 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.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. 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 forward currency contracts.
20

International Dividend Appreciation Index Fund
During the year ended October 31, 2022, the fund’s average investment in forward currency contracts represented 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually 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.
6. 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.
7. 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.
8. Collateral for ETF Capital Activity: When an authorized participant fails to deliver one or more of the securities within a designated basket (in the case of a subscription), fails to deliver the fund ETF Shares (in the case of a redemption), or is required by the fund, prior to settlement, to accommodate the trading of foreign securities in local markets (in the case of redemption for an international equity ETF), the fund may require the authorized participant to deliver and maintain cash collateral in accordance with the authorized participant agreement. The fund may invest the collateral in short-term debt instruments or U.S. Treasury securities, or maintain the balance as cash. Daily market fluctuations could cause the value of the missing securities or fund ETF Shares to be more or less than the value of the collateral received; when this occurs the collateral is adjusted. The fund earns interest income from investments and/or custody fee offsets from the cash balance. The fund records an asset (cash or investment, as applicable) and a corresponding liability for the return of the collateral in the Statement of Assets and Liabilities. Interest income and custody fee offsets earned on the investment of collateral are included in the Statement of Operations.
21

International Dividend Appreciation Index Fund
9. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the year ended October 31, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.
10. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in 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. Fees assessed on capital share transactions are credited to paid-in capital.
Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.
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
22

International Dividend Appreciation Index Fund
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 October 31, 2022, the fund had contributed to Vanguard capital in the amount of $144,000, representing less than 0.01% of the fund’s net assets and 0.06% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
C. The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended October 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $8,000 (an annual rate of less than 0.01% of average net assets).
D. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
23

International Dividend Appreciation Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of October 31, 2022, based on the inputs used to value them:
  Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
Investments        
Assets        
Common Stocks—North and South America 702,948 702,948
Common Stocks—Other 60,128 2,976,052 3,036,180
Temporary Cash Investments 9,257 9,257
Total 772,333 2,976,052 3,748,385
Derivative Financial Instruments        
Assets        
Futures Contracts1 264 264
Forward Currency Contracts 267 267
Total 264 267 531
Liabilities        
Futures Contracts1 389 389
Forward Currency Contracts 278 278
Total 389 278 667
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.
E. At October 31, 2022, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
    
Statement of Assets and Liabilities Equity
Contracts
($000)
Foreign
Exchange
Contracts
($000)
Total
($000)
Unrealized Appreciation—Futures Contracts1 264 264
Unrealized Appreciation—Forward Currency Contracts 267 267
Total Assets 264 267 531
       
Unrealized Depreciation—Futures Contracts1 389 389
Unrealized Depreciation—Forward Currency Contracts 278 278
Total Liabilities 389 278 667
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.
24

International Dividend Appreciation Index Fund
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the year ended October 31, 2022, were:
Realized Net Gain (Loss) on Derivatives Equity
Contracts
($000)
Foreign
Exchange
Contracts
($000)
Total
($000)
Futures Contracts (4,573) (4,573)
Forward Currency Contracts (188) (188)
Realized Net Gain (Loss) on Derivatives (4,573) (188) (4,761)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts (167) (167)
Forward Currency Contracts 315 315
Change in Unrealized Appreciation (Depreciation) on Derivatives (167) 315 148
F. Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for applicable in-kind redemptions, foreign currency transactions, passive foreign investment companies, and tax expense on capital gains were reclassified between the following accounts:
  Amount
($000)
Paid-in Capital 2,804
Total Distributable Earnings (Loss) (2,804)
Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales; the recognition of unrealized gains or losses from certain derivative contracts; and the recognition of unrealized gains from passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
  Amount
($000)
Undistributed Ordinary Income 22,886
Undistributed Long-Term Gains
Capital Loss Carryforwards (27,589)
Qualified Late-Year Losses
Net Unrealized Gains (Losses) (459,731)
25

International Dividend Appreciation Index Fund
The tax character of distributions paid was as follows:
  Year Ended October 31,
  2022
Amount
($000)
2021
Amount
($000)
Ordinary Income* 197,526 43,071
Long-Term Capital Gains 130,836
Total 328,362 43,071
* Includes short-term capital gains, if any.
As of October 31, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
  Amount
($000)
Tax Cost 4,204,800
Gross Unrealized Appreciation 274,108
Gross Unrealized Depreciation (730,462)
Net Unrealized Appreciation (Depreciation) (456,354)
G. During the year ended October 31, 2022, the fund purchased $1,461,909,000 of investment securities and sold $1,019,831,000 of investment securities, other than temporary cash investments. Purchases and sales include $564,139,000 and $12,559,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
H. Capital share transactions for each class of shares were:
    
  Year Ended October 31,  
  2022   2021
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
ETF Shares          
Issued1 676,377 8,730   1,155,426 13,632
Issued in Lieu of Cash Distributions  
Redeemed2 (13,682) (200)   (212,211) (2,550)
Net Increase (Decrease)—ETF Shares 662,695 8,530   943,215 11,082
Admiral Shares          
Issued1 65,935 1,814   69,649 1,698
Issued in Lieu of Cash Distributions 20,104 513   2,725 66
Redeemed2 (61,011) (1,723)   (34,165) (833)
Net Increase (Decrease)—Admiral Shares 25,028 604   38,209 931
1 Includes purchase fees for fiscal 2022 and 2021 of $200,000 and $175,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2022 and 2021 of $203,000 and $80,000, respectively (fund totals).
I. Management has determined that no events or transactions occurred subsequent to October 31, 2022, that would require recognition or disclosure in these financial statements.
26

International High Dividend Yield Index Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: February 25, 2016, Through October 31, 2022
Initial Investment of $10,000
    Average Annual Total Returns
Periods Ended October 31, 2022
 
    One
Year
Five
Years
Since
Inception
(2/25/2016)
Final Value
of a $10,000
Investment
 International High Dividend Yield Index Fund ETF Shares Net Asset Value -15.16% 0.48% 5.35% $14,166
  International High Dividend Yield Index Fund ETF Shares Market Price -15.13 0.47 5.40 14,205
 FTSE All-World ex US High Dividend Yield Index -14.91 0.73 5.75 14,526
“Since Inception” performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standard(s).
       
    One
Year
Five
Years
Since
Inception
(3/2/2016)
Final Value
of a $10,000
Investment
International High Dividend Yield Index Fund Admiral Shares -15.52% 0.39% 4.79% $13,657
FTSE All-World ex US High Dividend Yield Index -14.91 0.73 5.22 14,040
“Since Inception” performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standard(s).
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares.
See Financial Highlights for dividend and capital gains information.
27

International High Dividend Yield Index Fund
Cumulative Returns of ETF Shares: February 25, 2016, Through October 31, 2022
  One
Year
Five
Years
Since
Inception
(2/25/2016)
International High Dividend Yield Index Fund ETF Shares Market Price -15.13% 2.39% 42.05%
International High Dividend Yield Index Fund ETF Shares Net Asset Value -15.16 2.40 41.66
FTSE All-World ex US High Dividend Yield Index -14.91 3.69 45.26
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standard(s).
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and click on Price, and then scroll down to the Premium/Discount Chart. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares.
28

International High Dividend Yield Index Fund
Fund Allocation
As of October 31, 2022
United Kingdom 13.4%
Japan 12.8
Canada 8.8
Australia 8.4
Switzerland 7.2
France 6.1
Germany 6.0
China 4.8
Taiwan 4.3
Brazil 3.2
Italy 2.0
Hong Kong 1.8