Vanguard International Dividend Appreciation Index Fund |
Vanguard International High Dividend Yield Index Fund |
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 |
• | 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. |
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% |
• | Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. |
• | Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. |
Six Months Ended 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 |
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 |
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 |
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 |
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 |
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. |
($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. |
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 |
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) |
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). |
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 |
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. |
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. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the 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 ($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. |
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) |
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) |
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. |
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. |
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 |
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 |
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 |
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 |
Spain | 1.7 |
Saudi Arabia | 1.6 |
Singapore | 1.5 |
Sweden | 1.5 |
Finland | 1.4 |
South Korea | 1.4 |
Netherlands | 1.3 |
South Africa | 1.2 |
Mexico | 1.1 |
Norway | 1.1 |
India | 1.0 |
Other | 6.4 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (4.1%) | |||
Money Market Fund (4.1%) | |||
4,5 | Vanguard Market Liquidity Fund, 3.117% (Cost $186,099) | 1,861,413 | 186,104 |
Total Investments (103.6%) (Cost $5,422,994) | 4,782,083 | ||
Other Assets and Liabilities—Net (-3.6%) | (164,411) | ||
Net Assets (100%) | 4,617,672 | ||
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 $163,968,000. |
2 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2022, the aggregate value was $49,296,000, representing 1.1% of net assets. |
3 | Security value determined using significant unobservable inputs. |
4 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
5 | Collateral of $184,607,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. | |
NVDR—Non-Voting Depository Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number
of Long (Short) Contracts |
Notional Amount |
Value
and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI EAFE Index | December 2022 | 192 | 16,857 | 604 |
MSCI Emerging Markets Index | December 2022 | 118 | 5,036 | (155) |
449 |
Forward Currency Contracts | |||||||
Contract Settlement Date |
Contract Amount (000) | Unrealized Appreciation ($000) |
Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
Royal Bank of Canada | 12/21/22 | AUD | 4,662 | USD | 3,017 | — | (29) |
State Street Bank & Trust Co. | 12/21/22 | AUD | 1,600 | USD | 1,041 | — | (16) |
Royal Bank of Canada | 12/21/22 | GBP | 2,849 | USD | 3,050 | 223 | — |
Bank of Montreal | 12/21/22 | USD | 5,877 | AUD | 8,665 | 325 | — |
Barclays Bank plc | 12/21/22 | USD | 3,057 | BRL | 16,335 | — | (70) |
Bank of America, N.A. | 12/21/22 | USD | 3,218 | CHF | 3,138 | 63 | — |
Royal Bank of Canada | 12/21/22 | USD | 2,127 | EUR | 2,200 | — | (56) |
Forward Currency Contracts (continued) | |||||||
Contract Settlement Date |
Contract Amount (000) | Unrealized Appreciation ($000) |
Unrealized Depreciation ($000) | ||||
Counterparty | Receive | Deliver | |||||
Bank of Montreal | 12/21/22 | USD | 1,055 | EUR | 1,058 | 5 | — |
Bank of America, N.A. | 12/21/22 | USD | 4,693 | GBP | 4,061 | 28 | — |
Standard Chartered Bank | 12/21/22 | USD | 689 | HKD | 5,401 | 1 | — |
State Street Bank & Trust Co. | 12/21/22 | USD | 8,094 | JPY | 1,160,341 | 237 | — |
Bank of Montreal | 12/21/22 | USD | 671 | JPY | 94,581 | 30 | — |
Bank of America, N.A. | 12/21/22 | USD | 1,314 | TWD | 40,457 | 52 | — |
964 | (171) |
AUD—Australian dollar. |
BRL—Brazilian real. |
CHF—Swiss franc. |
EUR—euro. |
GBP—British pound. |
HKD—Hong Kong dollar. |
JPY—Japanese yen. |
TWD—Taiwanese dollar. |
USD—U.S. dollar. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $5,236,895) | 4,595,979 |
Affiliated Issuers (Cost $186,099) | 186,104 |
Total Investments in Securities | 4,782,083 |
Investment in Vanguard | 169 |
Cash | 2,382 |
Cash Collateral Pledged—Futures Contracts | 1,139 |
Foreign Currency, at Value (Cost $3,091) | 2,829 |
Receivables for Investment Securities Sold | 8 |
Receivables for Accrued Income | 19,134 |
Receivables for Capital Shares Issued | 718 |
Unrealized Appreciation—Forward Currency Contracts | 964 |
Total Assets | 4,809,426 |
Liabilities | |
Payables for Investment Securities Purchased | 5,799 |
Collateral for Securities on Loan | 184,607 |
Payables for Capital Shares Redeemed | 121 |
Payables to Vanguard | 533 |
Variation Margin Payable—Futures Contracts | 129 |
Unrealized Depreciation—Forward Currency Contracts | 171 |
Deferred Foreign Capital Gains Taxes | 394 |
Total Liabilities | 191,754 |
Net Assets | 4,617,672 |
1 Includes $163,968 of securities on loan. | |
At October 31, 2022, net assets consisted of: | |
Paid-in Capital | 5,328,633 |
Total Distributable Earnings (Loss) | (710,961) |
Net Assets | 4,617,672 |
ETF Shares—Net Assets | |
Applicable
to 76,783,522 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
4,198,004 |
Net Asset Value Per Share—ETF Shares | $54.67 |
Admiral Shares—Net Assets | |
Applicable
to 15,828,848 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
419,668 |
Net Asset Value Per Share—Admiral Shares | $26.51 |
Year
Ended October 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 224,136 |
Interest2 | 69 |
Securities Lending—Net | 938 |
Total Income | 225,143 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 417 |
Management and Administrative—ETF Shares | 6,717 |
Management and Administrative—Admiral Shares | 757 |
Marketing and Distribution—ETF Shares | 185 |
Marketing and Distribution—Admiral Shares | 18 |
Custodian Fees | 829 |
Auditing Fees | 40 |
Shareholders’ Reports—ETF Shares | 110 |
Shareholders’ Reports—Admiral Shares | 5 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 137 |
Total Expenses | 9,217 |
Expenses Paid Indirectly | (28) |
Net Expenses | 9,189 |
Net Investment Income | 215,954 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3,4 | (12,635) |
Futures Contracts | (8,832) |
Forward Currency Contracts | 2,415 |
Foreign Currencies | (3,716) |
Realized Net Gain (Loss) | (22,768) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,5 | (920,206) |
Futures Contracts | 345 |
Forward Currency Contracts | 650 |
Foreign Currencies | (671) |
Change in Unrealized Appreciation (Depreciation) | (919,882) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (726,696) |
1 | Dividends are net of foreign withholding taxes of $20,072,000. |
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 $57,000, ($3,000), less than $1,000, and $5,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized gain (loss) is net of foreign capital gain taxes of $1,189,000. |
4 | Includes $14,160,000 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 ($993,000). |
Year Ended October 31, | ||
2022 ($000) |
2021 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 215,954 | 114,370 |
Realized Net Gain (Loss) | (22,768) | 57,611 |
Change in Unrealized Appreciation (Depreciation) | (919,882) | 515,631 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (726,696) | 687,612 |
Distributions | ||
ETF Shares | (187,355) | (90,829) |
Admiral Shares | (20,245) | (13,898) |
Total Distributions | (207,600) | (104,727) |
Capital Share Transactions | ||
ETF Shares | 1,981,919 | 1,245,225 |
Admiral Shares | 114,673 | 35,370 |
Net Increase (Decrease) from Capital Share Transactions | 2,096,592 | 1,280,595 |
Total Increase (Decrease) | 1,162,296 | 1,863,480 |
Net Assets | ||
Beginning of Period | 3,455,376 | 1,591,896 |
End of Period | 4,617,672 | 3,455,376 |
ETF Shares | |||||
For a Share Outstanding Throughout Each Period |
Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $67.77 | $50.47 | $61.27 | $58.85 | $65.69 |
Investment Operations | |||||
Net Investment Income1 | 3.259 | 2.824 | 2.076 | 2.746 | 2.639 |
Net Realized and Unrealized Gain (Loss) on Investments2 | (13.260) | 16.986 | (10.944) | 2.302 | (7.097) |
Total from Investment Operations | (10.001) | 19.810 | (8.868) | 5.048 | (4.458) |
Distributions | |||||
Dividends from Net Investment Income | (3.099) | (2.510) | (1.932) | (2.628) | (2.382) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (3.099) | (2.510) | (1.932) | (2.628) | (2.382) |
Net Asset Value, End of Period | $54.67 | $67.77 | $50.47 | $61.27 | $58.85 |
Total Return | -15.16% | 39.55% | -14.55% | 8.87% | -7.03% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $4,198 | $3,061 | $1,325 | $1,264 | $889 |
Ratio of Total Expenses to Average Net Assets | 0.22%3 | 0.22% | 0.28%3 | 0.27% | 0.32% |
Ratio of Net Investment Income to Average Net Assets | 5.24% | 4.29% | 3.81% | 4.59% | 4.06% |
Portfolio Turnover Rate4 | 16% | 18% | 20% | 15% | 10% |
1 | Calculated based on average shares outstanding. |
2 | Includes increases from purchase and redemption fees of $0.01, $.00, $.03, $.01, and $.02. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements were 0.22% and 0.27%, respectively. |
4 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period |
Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Net Asset Value, Beginning of Period | $32.85 | $24.45 | $29.69 | $28.52 | $31.83 |
Investment Operations | |||||
Net Investment Income1 | 1.559 | 1.329 | 1.034 | 1.322 | 1.264 |
Net Realized and Unrealized Gain (Loss) on Investments2 | (6.398) | 8.286 | (5.336) | 1.120 | (3.423) |
Total from Investment Operations | (4.839) | 9.615 | (4.302) | 2.442 | (2.159) |
Distributions | |||||
Dividends from Net Investment Income | (1.501) | (1.215) | (.938) | (1.272) | (1.151) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (1.501) | (1.215) | (.938) | (1.272) | (1.151) |
Net Asset Value, End of Period | $26.51 | $32.85 | $24.45 | $29.69 | $28.52 |
Total Return3 | -15.11% | 39.59% | -14.59% | 8.83% | -7.00% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $420 | $395 | $267 | $199 | $181 |
Ratio of Total Expenses to Average Net Assets | 0.22%4 | 0.22% | 0.28%4 | 0.27% | 0.32% |
Ratio of Net Investment Income to Average Net Assets | 5.15% | 4.19% | 3.99% | 4.57% | 4.06% |
Portfolio Turnover Rate5 | 16% | 18% | 20% | 15% | 10% |
1 | Calculated based on average shares outstanding. |
2 | Includes increases from purchase and redemption fees of $.00, $.00, $0.01, $0.01, and $.01. |
3 | 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. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements were 0.22% and 0.27%, respectively. |
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. |
A. | The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. |
B. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended October 31, 2022, custodian fee offset arrangements reduced the fund’s expenses by $28,000 (an annual rate of less than 0.01% of average net assets). |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level
1 ($000) |
Level
2 ($000) |
Level
3 ($000) |
Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 610,807 | 7,442 | 100 | 618,349 |
Common Stocks—Other | 1,752 | 3,975,289 | 589 | 3,977,630 |
Temporary Cash Investments | 186,104 | — | — | 186,104 |
Total | 798,663 | 3,982,731 | 689 | 4,782,083 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 604 | — | — | 604 |
Forward Currency Contracts | — | 964 | — | 964 |
Total | 604 | 964 | — | 1,568 |
Liabilities | ||||
Futures Contracts1 | 155 | — | — | 155 |
Forward Currency Contracts | — | 171 | — | 171 |
Total | 155 | 171 | — | 326 |
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 | 604 | — | 604 |
Unrealized Appreciation—Forward Currency Contracts | — | 964 | 964 |
Total Assets | 604 | 964 | 1,568 |
Unrealized Depreciation—Futures Contracts1 | 155 | — | 155 |
Unrealized Depreciation—Forward Currency Contracts | — | 171 | 171 |
Total Liabilities | 155 | 171 | 326 |
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. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
Futures Contracts | (8,832) | — | (8,832) |
Forward Currency Contracts | — | 2,415 | 2,415 |
Realized Net Gain (Loss) on Derivatives | (8,832) | 2,415 | (6,417) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 345 | — | 345 |
Forward Currency Contracts | — | 650 | 650 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 345 | 650 | 995 |
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 | 14,159 |
Total Distributable Earnings (Loss) | (14,159) |
Amount ($000) | |
Undistributed Ordinary Income | 31,092 |
Undistributed Long-Term Gains | — |
Capital Loss Carryforwards | (78,299) |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | (664,633) |
Year Ended October 31, | ||
2022 Amount ($000) |
2021 Amount ($000) | |
Ordinary Income* | 207,600 | 104,727 |
Long-Term Capital Gains | — | — |
Total | 207,600 | 104,727 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 5,445,630 |
Gross Unrealized Appreciation | 234,647 |
Gross Unrealized Depreciation | (898,140) |
Net Unrealized Appreciation (Depreciation) | (663,493) |
G. | During the year ended October 31, 2022, the fund purchased $2,794,329,000 of investment securities and sold $696,443,000 of investment securities, other than temporary cash investments. Purchases and sales include $1,555,883,000 and $37,331,000, 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 | 2,022,275 | 32,224 | 1,245,225 | 18,913 | |
Issued in Lieu of Cash Distributions | — | — | — | — | |
Redeemed2 | (40,356) | (600) | — | — | |
Net Increase (Decrease)—ETF Shares | 1,981,919 | 31,624 | 1,245,225 | 18,913 | |
Admiral Shares | |||||
Issued1 | 184,464 | 6,153 | 64,421 | 2,021 | |
Issued in Lieu of Cash Distributions | 11,257 | 386 | 6,979 | 221 | |
Redeemed2 | (81,048) | (2,728) | (36,030) | (1,151) | |
Net Increase (Decrease)—Admiral Shares | 114,673 | 3,811 | 35,370 | 1,091 |
1 | Includes purchase fees for fiscal 2022 and 2021 of $643,000 and $162,000, respectively (fund totals). |
2 | Net of redemption fees for fiscal 2022 and 2021 of $174,000 and $88,000, 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. |