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.

Six Months Ended February 28, 2023
	Beginning Account Value 8/31/2022	Ending Account Value 2/28/2023	Expenses Paid During Period
Based on Hypothetical 5% Yearly Return
Communication Services Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Consumer Discretionary Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Consumer Staples Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Energy Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Financials Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Health Care Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Industrials Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Information Technology Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Materials Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50
Utilities Index Fund
ETF Shares	$1,000.00	$1,024.30	$0.50
Admiral Shares	1,000.00	1,024.30	0.50

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 Communication Services Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Consumer Discretionary Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Consumer Staples Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Energy Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Financials Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Health Care Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Industrials Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Information Technology Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; for the Materials Index Fund, 0.10% for ETF Shares and 0.10% for Admiral Shares; and for the Utilities Index Fund, 0.10% for ETF Shares and 0.10% 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 (181/365).

Communication Services Index Fund

Fund Allocation

As of February 28, 2023

Diversified Telecommunication Services	13.0%
Entertainment	23.5
Interactive Media & Services	41.0
Media	18.5
Wireless Telecommunication Services	4.0

The table reflects the fund’s investments, except short-term investments and derivatives. Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.

Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Communication Services Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

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 (99.6%)
Diversified Telecommunication Services (13.0%)
	Verizon Communications Inc.	3,174,206	123,191
	AT&T Inc.	6,450,135	121,972
^*	Iridium Communications Inc.	303,179	18,606
^*	Liberty Global plc Class C	793,179	16,855
^*	Frontier Communications Parent Inc.	583,507	15,965
^*	Liberty Global plc Class A	583,573	11,957
	Cogent Communications Holdings Inc.	158,865	10,285
	Lumen Technologies Inc.	2,006,703	6,823
^*	Liberty Latin America Ltd. Class C	553,811	4,862
^*	Radius Global Infrastructure Inc. Class A (XNMS)	302,351	4,121
^*	Globalstar Inc.	2,679,358	3,430
^*	EchoStar Corp. Class A	125,972	2,514
^*	IDT Corp. Class B	73,249	2,228
	ATN International Inc.	41,380	1,740
^*	Anterix Inc.	49,306	1,489
^*	Bandwidth Inc. Class A	87,519	1,392
^*	Liberty Latin America Ltd. Class A	143,555	1,266
^*	Consolidated Communications Holdings Inc.	280,690	851
^*	Charge Enterprises Inc.	430,363	486
			350,033
Entertainment (23.2%)
^*	Walt Disney Co.	1,677,262	167,072
^*	Netflix Inc.	360,398	116,095
	Activision Blizzard Inc.	882,627	67,300
^*	Warner Bros Discovery Inc.	2,964,420	46,304
	Electronic Arts Inc.	356,827	39,586
^*	Take-Two Interactive Software Inc.	246,210	26,972
^*	Liberty Media Corp.-Liberty Formula One Class C	354,302	24,047
^*	Live Nation Entertainment Inc.	283,953	20,462
^*	Roblox Corp. Class A	486,039	17,809
	Warner Music Group Corp. Class A	452,570	14,283
	World Wrestling Entertainment Inc. Class A	161,111	13,533
^*	Roku Inc.	202,562	13,104
^*,1	AMC Entertainment Holdings Inc. Class A	1,703,635	12,164
	Madison Square Garden Sports Corp.	54,403	10,399
^*	Endeavor Group Holdings Inc. Class A	317,352	7,080
^*	Madison Square Garden Entertainment Corp.	91,666	5,549

		Shares	Market Value• ($000)
^*	Cinemark Holdings Inc.	403,721	5,495
^*	Liberty Media Corp.- Liberty Braves Class C	146,998	4,920
^*	Lions Gate Entertainment Corp. Class B	398,352	3,964
^*	Imax Corp.	167,431	3,087
^*	Lions Gate Entertainment Corp. Class A	276,950	2,938
^*	Playtika Holding Corp.	150,240	1,442
	Marcus Corp.	82,477	1,327
^*	Liberty Media Corp.- Liberty Braves Class A	29,009	994
^*	Skillz Inc. Class A	924,684	578
^*,1	Vivid Seats Inc. Class A	70,298	539
			627,043
Interactive Media & Services (40.9%)
^*	Meta Platforms Inc. Class A	2,109,957	369,116
^*	Alphabet Inc. Class A	3,539,743	318,789
^*	Alphabet Inc. Class C	3,071,533	277,360
^*	Pinterest Inc. Class A	845,039	21,219
^*	Snap Inc. Class A	1,613,070	16,373
^*	Match Group Inc.	374,957	15,531
^*	Ziff Davis Inc.	157,298	12,423
^*	ZoomInfo Technologies Inc. Class A	389,037	9,403
^*	IAC Inc.	180,886	9,395
^*	TripAdvisor Inc.	372,522	8,035
^*	Yelp Inc. Class A	262,828	7,890
	Shutterstock Inc.	94,165	7,083
^*	Bumble Inc. Class A	265,329	6,416
^*	Cargurus Inc.	324,108	5,526
^*	Cars.com Inc.	241,083	4,629
^*	QuinStreet Inc.	189,294	3,212
^*	Eventbrite Inc. Class A	300,642	2,634
^*	ZipRecruiter Inc. Class A	137,363	2,343
^*	Vimeo Inc.	556,938	2,133
^*	Mediaalpha Inc. Class A	87,061	1,318
^*,1	fuboTV Inc.	660,674	1,262
^*	Nextdoor Holdings Inc.	347,197	715
^*	Angi Inc. Class A	274,588	703
^*,1	System1 Inc.	87,075	383
^*	Outbrain Inc.	41,257	182
			1,104,073
Media (18.5%)
	Comcast Corp. Class A	3,184,950	118,385
^*	Charter Communications Inc. Class A	133,130	48,940
	Omnicom Group Inc.	319,042	28,896
^*	Trade Desk Inc. Class A	467,373	26,154
	Interpublic Group of Cos. Inc.	682,778	24,266
	Fox Corp. Class A	604,428	21,167
^*	Liberty Broadband Corp. Class C	220,272	19,091
	Nexstar Media Group Inc. Class A	94,235	17,518

		Shares	Market Value• ($000)
	New York Times Co. Class A	450,071	17,328
¹	Paramount Global Inc. Class B	804,773	17,238
	News Corp. Class A	966,905	16,582
	Fox Corp. Class B	480,238	15,488
^*	Liberty Media Corp.- Liberty SiriusXM Class C	426,877	13,754
	TEGNA Inc.	729,773	12,698
	Cable One Inc.	12,946	8,941
^*	Liberty Media Corp.- Liberty SiriusXM Class A	275,319	8,918
¹	Sirius XM Holdings Inc.	2,015,250	8,847
	News Corp. Class B	474,227	8,185
	John Wiley & Sons Inc. Class A	165,146	7,347
^*	DISH Network Corp. Class A	635,704	7,253
^*	Liberty Broadband Corp. Class A	72,281	6,269
	Scholastic Corp.	109,339	4,987
^*	Magnite Inc.	442,008	4,920
^*	TechTarget Inc.	104,443	3,941
	Gray Television Inc.	287,641	3,365
^*	Altice USA Inc. Class A	807,585	3,198
^*	iHeartMedia Inc. Class A	431,550	3,133
	Sinclair Broadcast Group Inc. Class A	163,263	2,656
^*	EW Scripps Co. Class A	201,009	2,537
^*	AMC Networks Inc. Class A	106,092	2,372
^*	PubMatic Inc. Class A	151,233	2,296
^*	Clear Channel Outdoor Holdings Inc.	1,249,748	2,212
^*	WideOpenWest Inc.	197,369	2,157
^*	Thryv Holdings Inc.	77,348	1,844
^*	Boston Omaha Corp. Class A	75,192	1,811
^*	Gannett Co. Inc.	520,841	1,578
^*	Quotient Technology Inc.	195,110	738
^*	Cardlytics Inc.	123,785	675
^*	Advantage Solutions Inc.	299,771	659
			498,344
Wireless Telecommunication Services (4.0%)
^*	T-Mobile US Inc.	666,772	94,802
	Telephone and Data Systems Inc.	378,267	4,800
^*	Gogo Inc.	216,374	3,562
	Shenandoah Telecommunications Co.	177,582	3,466

Communication Services Index Fund

		Shares	Market Value• ($000)
^*	United States Cellular Corp.	58,897	1,421
			108,051
Total Common Stocks (Cost $3,614,877)			2,687,544
Preferred Stock (0.2%)
Entertainment (0.2%)
²	AMC Entertainment Holdings Inc. Class A, 0.000% (Cost $10,007)	1,931,010	3,997
Temporary Cash Investments (1.2%)
Money Market Fund (1.2%)
^3,4	Vanguard Market Liquidity Fund, 4.640% (Cost $33,815)	338,234	33,820
Total Investments (101.0%) (Cost $3,658,699)			2,725,361
Other Assets and Liabilities—Net (-1.0%)			(28,049)
Net Assets (100.0%)			2,697,312
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 $25,159,000.
2	Perpetual security with no stated maturity date.
3	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
4	Collateral of $28,190,000 was received for securities on loan, of which $28,133,000 is held in Vanguard Market Liquidity Fund and $57,000 is held in cash.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Paramount Global	8/31/23	BANA	3,534	(4.569)	—	(14)
Sirius XM Holdings Inc.	1/31/24	GSI	3,049	(4.573)	—	(184)
					—	(198)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.
	GSI—Goldman Sachs International.

See accompanying Notes, which are an integral part of the Financial Statements.

Communication Services Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $3,624,884)	2,691,541
Affiliated Issuers (Cost $33,815)	33,820
Total Investments in Securities	2,725,361
Investment in Vanguard	100
Cash	57
Cash Collateral Pledged—Over-the-Counter Swap Contracts	50
Receivables for Investment Securities Sold	133,947
Receivables for Accrued Income	755
Receivables for Capital Shares Issued	10
Total Assets	2,860,280
Liabilities
Due to Custodian	2,023
Payables for Investment Securities Purchased	41,692
Collateral for Securities on Loan	28,190
Payables for Capital Shares Redeemed	90,764
Payables to Vanguard	101
Unrealized Depreciation—Over-the-Counter Swap Contracts	198
Total Liabilities	162,968
Net Assets	2,697,312
1 Includes $25,159,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	4,127,533
Total Distributable Earnings (Loss)	(1,430,221)
Net Assets	2,697,312

ETF Shares—Net Assets
Applicable to 28,820,890 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	2,618,910
Net Asset Value Per Share—ETF Shares	$90.87

Admiral Shares—Net Assets
Applicable to 1,693,092 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	78,402
Net Asset Value Per Share—Admiral Shares	$46.31

See accompanying Notes, which are an integral part of the Financial Statements.

Communication Services Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	15,260
Interest¹	115
Securities Lending—Net	1,684
Total Income	17,059
Expenses
The Vanguard Group—Note B
Investment Advisory Services	31
Management and Administrative— ETF Shares	1,090
Management and Administrative— Admiral Shares	29
Marketing and Distribution— ETF Shares	73
Marketing and Distribution— Admiral Shares	2
Shareholders’ Reports—ETF Shares	64
Shareholders’ Reports—Admiral Shares	1
Trustees’ Fees and Expenses	1
Other Expenses	6
Total Expenses	1,297
Net Investment Income	15,762
Realized Net Gain (Loss)
Investment Securities Sold^1,2	(42,679)
Swap Contracts	(1,692)
Realized Net Gain (Loss)	(44,371)
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	(65,270)
Swap Contracts	234
Change in Unrealized Appreciation (Depreciation)	(65,036)
Net Increase (Decrease) in Net Assets Resulting from Operations	(93,645)

1	Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $115,000, $3,000, less than $1,000, and $2,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $56,464,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	15,762	35,113
Realized Net Gain (Loss)	(44,371)	301,906
Change in Unrealized Appreciation (Depreciation)	(65,036)	(2,110,443)
Net Increase (Decrease) in Net Assets Resulting from Operations	(93,645)	(1,773,424)
Distributions
ETF Shares	(11,174)	(36,456)
Admiral Shares	(285)	(937)
Total Distributions	(11,459)	(37,393)
Capital Share Transactions
ETF Shares	3,833	(303,025)
Admiral Shares	11,166	(10,410)
Net Increase (Decrease) from Capital Share Transactions	14,999	(313,435)
Total Increase (Decrease)	(90,105)	(2,124,252)
Net Assets
Beginning of Period	2,787,417	4,911,669
End of Period	2,697,312	2,787,417

See accompanying Notes, which are an integral part of the Financial Statements.

Communication Services Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$94.12	$149.87	$108.04	$87.24	$86.83	$93.54
Investment Operations
Net Investment Income¹	.529	1.110	1.018	1.005	.917	3.067
Net Realized and Unrealized Gain (Loss) on Investments	(3.394)	(55.695)	41.708	20.743	.316	(6.297)
Total from Investment Operations	(2.865)	(54.585)	42.726	21.748	1.233	(3.230)
Distributions
Dividends from Net Investment Income	(.385)	(1.165)	(.896)	(.948)	(.823)	(3.480)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.385)	(1.165)	(.896)	(.948)	(.823)	(3.480)
Net Asset Value, End of Period	$90.87	$94.12	$149.87	$108.04	$87.24	$86.83
Total Return	-3.01%	-36.61%	39.75%	25.15%	1.47%	-3.50%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$2,619	$2,717	$4,787	$2,914	$2,016	$1,015
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.20%	0.92%	0.80%	1.09%	1.09%	3.48%
Portfolio Turnover Rate²	10%	16%	15%	15%	33%	84%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$47.97	$76.38	$55.06	$44.46	$44.25	$47.67
Investment Operations
Net Investment Income¹	.271	.572	.519	.512	.470	1.554
Net Realized and Unrealized Gain (Loss) on Investments	(1.735)	(28.388)	21.259	10.571	.157	(3.199)
Total from Investment Operations	(1.464)	(27.816)	21.778	11.083	.627	(1.645)
Distributions
Dividends from Net Investment Income	(.196)	(.594)	(.458)	(.483)	(.417)	(1.775)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.196)	(.594)	(.458)	(.483)	(.417)	(1.775)
Net Asset Value, End of Period	$46.31	$47.97	$76.38	$55.06	$44.46	$44.25
Total Return²	-3.02%	-36.61%	39.76%	25.16%	1.46%	-3.48%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$78	$70	$124	$67	$50	$46
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.20%	0.93%	0.79%	1.10%	1.09%	3.48%
Portfolio Turnover Rate³	10%	16%	15%	15%	33%	84%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Communication Services Index Fund

Notes to Financial Statements

Vanguard Communication Services 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 NYSE Arca; they can be purchased and sold through a broker.

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. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The notional amounts of swap contracts are not recorded in the Statement of Assets and Liabilities. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.

During the six months ended February 28, 2023, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

Communication Services Index Fund

3. 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.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

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

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in 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.

Communication Services Index Fund

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $100,000, representing less than 0.01% of the fund’s net assets and 0.04% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	2,687,544	—	—	2,687,544
Preferred Stock	3,997	—	—	3,997
Temporary Cash Investments	33,820	—	—	33,820
Total	2,725,361	—	—	2,725,361
Derivative Financial Instruments
Liabilities
Swap Contracts	—	198	—	198

D.	As of February 28, 2023, 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	3,694,712
Gross Unrealized Appreciation	28,406
Gross Unrealized Depreciation	(997,757)
Net Unrealized Appreciation (Depreciation)	(969,351)

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $450,224,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

Communication Services Index Fund

During the six months ended February 28, 2023, the fund purchased $851,307,000 of investment securities and sold $833,713,000 of investment securities, other than temporary cash investments. Purchases and sales include $572,498,000 and $586,579,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $4,017,000 and sales were $589,000, resulting in net realized loss of $245,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	592,154	6,725	1,584,130	13,653
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(588,321)	(6,775)	(1,887,155)	(16,725)
Net Increase (Decrease)—ETF Shares	3,833	(50)	(303,025)	(3,072)
Admiral Shares
Issued	26,620	578	39,208	630
Issued in Lieu of Cash Distributions	238	6	787	12
Redeemed	(15,692)	(350)	(50,405)	(809)
Net Increase (Decrease)—Admiral Shares	11,166	234	(10,410)	(167)

G.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Consumer Discretionary Index Fund

Fund Allocation

As of February 28, 2023

Auto Components	2.4%
Automobiles	15.8
Distributors	1.3
Diversified Consumer Services	1.1
Hotels, Restaurants & Leisure	20.6
Household Durables	4.2
Internet & Direct Marketing Retail	22.6
Leisure Products	1.0
Multiline Retail	4.1
Specialty Retail	20.7
Textiles, Apparel & Luxury Goods	6.2

Consumer Discretionary Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.8%)
Auto Components (2.4%)
^*	Aptiv plc	289,885	33,708
	BorgWarner Inc. (XNYS)	250,438	12,592
	Lear Corp.	63,210	8,827
	Autoliv Inc.	88,143	8,160
	Gentex Corp.	250,745	7,159
^*	Fox Factory Holding Corp.	45,343	5,328
^*	Visteon Corp.	30,035	5,017
^*	Adient plc	101,258	4,326
^*	Goodyear Tire & Rubber Co.	302,168	3,433
	LCI Industries	27,154	3,063
^*,1	QuantumScape Corp. Class A	286,380	2,741
^*	Dorman Products Inc.	28,528	2,654
^*	Gentherm Inc.	35,649	2,264
	Dana Inc.	137,426	2,177
^*,1	Luminar Technologies Inc. Class A	227,635	2,037
	Patrick Industries Inc.	23,204	1,690
^*	XPEL Inc.	20,652	1,380
^*	American Axle & Manufacturing Holdings Inc.	122,283	1,076
	Standard Motor Products Inc.	20,566	801
^*	Stoneridge Inc.	29,177	695
^*,1	Solid Power Inc.	111,933	378
^*	Holley Inc.	50,393	110
			109,616
Automobiles (15.7%)
^*	Tesla Inc.	2,871,307	590,657
	General Motors Co.	1,519,784	58,876
	Ford Motor Co.	4,225,354	51,000
	Harley-Davidson Inc.	148,590	7,065
^*	Rivian Automotive Inc. Class A	342,247	6,605
	Thor Industries Inc.	57,424	5,225
^*,1	Lucid Group Inc.	449,769	4,106
	Winnebago Industries Inc.	31,022	1,972
^*,1	Fisker Inc.	193,067	1,435
^*	Workhorse Group Inc.	174,902	360
^*,1	Canoo Inc.	325,047	243
^*,1	Lordstown Motors Corp. Class A	175,671	183
^*,1	Faraday Future Intelligent Electric Inc.	269,821	144
			727,871
Distributors (1.2%)
	Genuine Parts Co.	151,060	26,716
	LKQ Corp.	271,461	15,552
	Pool Corp.	41,781	14,910
^*	Funko Inc. Class A	37,454	405
			57,583
Diversified Consumer Services (1.1%)
	Service Corp. International	164,620	11,117
	H&R Block Inc.	166,335	6,121

		Shares	Market Value• ($000)
^*	Bright Horizons Family Solutions Inc.	61,893	4,880
^*	Grand Canyon Education Inc.	33,262	3,768
	Graham Holdings Co. Class B	4,123	2,584
^*	frontdoor Inc.	87,026	2,459
^*	Chegg Inc.	134,507	2,137
	Strategic Education Inc.	24,709	2,106
^*	Adtalem Global Education Inc.	48,284	1,889
^*	Stride Inc.	43,825	1,861
^*	Duolingo Inc.	20,114	1,826
	Laureate Education Inc.	150,624	1,786
	ADT Inc.	184,982	1,395
^*	Perdoceo Education Corp.	72,345	997
^*	OneSpaWorld Holdings Ltd.	71,403	828
^*,1	Mister Car Wash Inc.	81,352	751
^*	2U Inc.	82,837	742
^*	Coursera Inc.	62,387	703
	European Wax Center Inc. Class A	31,674	585
^*	Vivint Smart Home Inc.	45,523	512
	Carriage Services Inc. Class A	14,102	478
^*	Rover Group Inc. Class A	78,212	327
^*	WW International Inc.	53,564	196
^*,1	Beachbody Co. Inc.	116,708	75
			50,123
Hotels, Restaurants & Leisure (20.6%)
	McDonald's Corp.	783,477	206,767
	Starbucks Corp.	1,227,812	125,347
^*	Booking Holdings Inc.	41,492	104,726
^*	Airbnb Inc. Class A	404,811	49,905
	Marriott International Inc. Class A	287,799	48,707
^*	Chipotle Mexican Grill Inc. Class A	29,653	44,215
	Hilton Worldwide Holdings Inc.	289,311	41,808
	Yum! Brands Inc.	301,307	38,314
^*	Las Vegas Sands Corp.	367,856	21,141
	Darden Restaurants Inc.	130,981	18,729
^*	Expedia Group Inc.	161,075	17,552
^*	Royal Caribbean Cruises Ltd.	245,696	17,356
	MGM Resorts International	328,371	14,123
^*	Wynn Resorts Ltd.	115,272	12,492
^*	Caesars Entertainment Inc.	229,556	11,652
^*	Carnival Corp.	1,071,672	11,381
	Domino's Pizza Inc.	37,869	11,134
	Vail Resorts Inc.	43,137	10,072
	Aramark	249,040	9,165
	Churchill Downs Inc.	35,998	8,848
^*	DraftKings Inc. Class A	408,218	7,699
	Wyndham Hotels & Resorts Inc.	94,500	7,278
^*	Planet Fitness Inc. Class A	89,239	7,233

		Shares	Market Value• ($000)
	Texas Roadhouse Inc. Class A	67,993	6,904
^*	Norwegian Cruise Line Holdings Ltd.	451,023	6,684
^*	Hyatt Hotels Corp. Class A	51,342	5,968
^*	Light & Wonder Inc.	95,203	5,961
	Marriott Vacations Worldwide Corp.	38,929	5,956
	Wingstop Inc.	32,074	5,464
	Boyd Gaming Corp.	83,710	5,452
^*	Penn Entertainment Inc.	165,962	5,067
^*	Hilton Grand Vacations Inc.	92,317	4,407
	Choice Hotels International Inc.	37,070	4,388
	Wendy's Co.	193,237	4,243
	Travel + Leisure Co.	86,990	3,649
	Papa John's International Inc.	35,875	3,012
^*	SeaWorld Entertainment Inc.	44,514	2,876
	Cracker Barrel Old Country Store Inc.	22,558	2,458
	Red Rock Resorts Inc. Class A	56,001	2,446
	Bloomin' Brands Inc.	89,651	2,340
^*	Shake Shack Inc. Class A	39,781	2,219
^*	Six Flags Entertainment Corp.	79,837	2,108
	Cheesecake Factory Inc.	49,535	1,855
^*	Everi Holdings Inc.	95,599	1,815
^*	Brinker International Inc.	46,890	1,782
	Jack in the Box Inc.	22,168	1,738
^*	Dave & Buster's Entertainment Inc.	41,182	1,648
^*,1	Dutch Bros Inc. Class A	39,031	1,302
^*	Playa Hotels & Resorts NV	138,814	1,238
	Dine Brands Global Inc.	15,901	1,219
	Monarch Casino & Resort Inc.	15,351	1,130
^*	Portillo's Inc. Class A	43,623	991
¹	Krispy Kreme Inc.	71,605	932
^*	Golden Entertainment Inc.	19,789	813
^*	BJ's Restaurants Inc.	25,011	800
	RCI Hospitality Holdings Inc.	8,888	745
^*	Denny's Corp.	61,750	721
^*	Chuy's Holdings Inc.	19,324	691
^*,1	Bally's Corp.	33,234	656
^*	Bowlero Corp.	41,563	639
	Ruth's Hospitality Group Inc.	34,196	638
^*	Life Time Group Holdings Inc.	31,083	562
^*	Accel Entertainment Inc. Class A	59,772	547
^*	Target Hospitality Corp.	31,172	462
^*	Sweetgreen Inc. Class A	51,719	451
^*	Lindblad Expeditions Holdings Inc.	36,788	316

Consumer Discretionary Index Fund

		Shares	Market Value• ($000)
^*	Kura Sushi USA Inc. Class A	4,627	290
^*	First Watch Restaurant Group Inc.	18,937	289
^*,1	Membership Collective Group Inc.	30,084	201
^*	Sonder Holdings Inc.	164,993	170
^*,1	Vacasa Inc.	115,183	167
^*	F45 Training Holdings Inc.	36,598	76
			952,130
Household Durables (4.2%)
	DR Horton Inc.	349,920	32,361
	Lennar Corp. Class A	272,529	26,364
^*	NVR Inc.	3,248	16,804
	Garmin Ltd.	164,073	16,100
	PulteGroup Inc.	243,626	13,319
	Whirlpool Corp.	58,341	8,050
	Tempur Sealy International Inc.	173,767	7,427
^*	TopBuild Corp.	34,217	7,103
	Toll Brothers Inc.	115,120	6,900
	Newell Brands Inc.	420,575	6,178
^*	Mohawk Industries Inc.	54,492	5,605
	Leggett & Platt Inc.	141,627	4,885
^*	Meritage Homes Corp.	39,018	4,262
^*	Skyline Champion Corp.	57,936	3,963
^*	Taylor Morrison Home Corp. Class A	110,396	3,955
	Installed Building Products Inc.	26,062	3,007
	KB Home	82,448	2,908
^*	Helen of Troy Ltd.	25,587	2,883
^*	Sonos Inc.	135,940	2,641
^*	Tri Pointe Homes Inc.	108,337	2,583
^*	Cavco Industries Inc.	9,017	2,570
^*	LGI Homes Inc.	22,347	2,331
	MDC Holdings Inc.	60,723	2,247
	Century Communities Inc.	30,558	1,828
^*	M/I Homes Inc.	29,188	1,688
	La-Z-Boy Inc.	45,894	1,486
^*	iRobot Corp.	29,084	1,195
^*	Green Brick Partners Inc.	32,007	999
	Ethan Allen Interiors Inc.	24,421	722
^*	GoPro Inc. Class A	138,236	717
^*	Beazer Homes USA Inc.	31,426	469
^*	Lovesac Co.	14,518	418
¹	Cricut Inc. Class A	28,288	302
^*,1	Dream Finders Homes Inc. Class A	21,271	256
^*	Traeger Inc.	56,805	226
^*	Snap One Holdings Corp.	15,940	186
^*	Tupperware Brands Corp.	45,032	185
			195,123
Internet & Direct Marketing Retail (22.6%)
^*	Amazon.com Inc.	9,821,797	925,508
^*	MercadoLibre Inc.	41,622	50,779
	eBay Inc.	580,604	26,650
^*	Etsy Inc.	134,465	16,325
^*	DoorDash Inc. Class A	250,422	13,688
^*,1	Chewy Inc. Class A	101,437	4,113
^*,1	Wayfair Inc. Class A	78,439	3,176
^*	Revolve Group Inc.	43,519	1,179
^*	Overstock.com Inc.	48,845	946
^*	Qurate Retail Inc. Series A	379,278	800
^*,1	Xometry Inc. Class A	14,300	435
^*	Stitch Fix Inc. Class A	92,512	431
¹	PetMed Express Inc.	21,274	400
^*	ContextLogic Inc. Class A	586,396	285

		Shares	Market Value• ($000)
^*	1-800-Flowers.com Inc. Class A	21,810	216
^*,1	Groupon Inc. Class A	17,718	133
^*	BARK Inc.	86,808	117
^*	ThredUP Inc. Class A	71,502	114
^*	Lands' End Inc.	14,201	108
			1,045,403
Leisure Products (1.0%)
	Hasbro Inc.	140,429	7,725
^*	Mattel Inc.	379,200	6,822
	Brunswick Corp.	77,557	6,780
	Polaris Inc.	58,898	6,700
^*	Peloton Interactive Inc. Class A	318,839	4,119
^*	YETI Holdings Inc.	92,104	3,590
^*	Topgolf Callaway Brands Corp.	148,088	3,433
	Acushnet Holdings Corp.	37,824	1,825
^*	Vista Outdoor Inc.	60,356	1,724
^*	Malibu Boats Inc. Class A	21,890	1,308
	Sturm Ruger & Co. Inc.	18,860	1,099
	Smith & Wesson Brands Inc.	48,731	533
	Johnson Outdoors Inc. Class A	6,192	402
	Clarus Corp.	26,016	257
^*,1	AMMO Inc.	96,937	189
^*	Latham Group Inc.	48,391	154
			46,660
Multiline Retail (4.1%)
	Target Corp.	492,427	82,974
	Dollar General Corp.	241,309	52,195
^*	Dollar Tree Inc.	236,620	34,376
	Macy's Inc.	290,090	5,935
	Kohl's Corp.	124,836	3,500
^*	Ollie's Bargain Outlet Holdings Inc.	60,094	3,458
	Nordstrom Inc.	119,373	2,325
¹	Dillard's Inc. Class A	5,624	2,005
	Franchise Group Inc.	28,687	798
	Big Lots Inc.	29,305	421
			187,987
Specialty Retail (20.7%)
	Home Depot Inc.	1,090,241	323,300
	Lowe's Cos. Inc.	646,853	133,090
	TJX Cos. Inc.	1,241,990	95,136
^*	O'Reilly Automotive Inc.	66,940	55,567
^*	AutoZone Inc.	20,305	50,489
	Ross Stores Inc.	371,265	41,040
^*	Ulta Beauty Inc.	54,792	28,426
	Tractor Supply Co.	118,121	27,553
	Best Buy Co. Inc.	216,785	18,017
^*	Burlington Stores Inc.	69,739	14,942
^*	Five Below Inc.	59,382	12,132
^*	CarMax Inc.	169,072	11,673
^*	Floor & Decor Holdings Inc. Class A	113,538	10,424
	Bath & Body Works Inc.	244,324	9,986
	Advance Auto Parts Inc.	63,405	9,191
	Williams-Sonoma Inc.	71,207	8,895
	Dick's Sporting Goods Inc.	64,022	8,235
	Lithia Motors Inc. Class A	29,247	7,463
^*	RH	20,309	6,073
	Murphy USA Inc.	22,957	5,856
^*,1	GameStop Corp. Class A	277,290	5,332
^*	Asbury Automotive Group Inc.	22,439	5,096

		Shares	Market Value• ($000)
	Academy Sports & Outdoors Inc.	81,141	4,800
^*	AutoNation Inc.	34,521	4,713
	Penske Automotive Group Inc.	30,576	4,408
	Foot Locker Inc.	89,851	3,928
	Signet Jewelers Ltd.	49,328	3,533
^*	Victoria's Secret & Co.	86,938	3,446
	Group 1 Automotive Inc.	14,861	3,285
^*	National Vision Holdings Inc.	84,267	3,148
	Gap Inc.	215,637	2,806
	American Eagle Outfitters Inc.	190,651	2,740
^*	Boot Barn Holdings Inc.	31,759	2,460
^*	Leslie's Inc.	165,910	2,092
^*	ODP Corp.	44,144	1,999
^*	Sally Beauty Holdings Inc.	114,211	1,838
^*	Urban Outfitters Inc.	63,947	1,723
	Monro Inc.	33,712	1,700
^*	Abercrombie & Fitch Co. Class A	52,832	1,554
	Upbound Group Inc.	56,661	1,521
	Buckle Inc.	31,974	1,304
	Sonic Automotive Inc. Class A	19,843	1,129
	Caleres Inc.	39,321	1,027
^*	Petco Health & Wellness Co. Inc. Class A	97,306	1,002
¹	Camping World Holdings Inc. Class A	42,391	968
	Hibbett Inc.	13,165	947
^*	Sleep Number Corp.	23,440	934
^*	Warby Parker Inc. Class A	71,663	932
	Winmark Corp.	3,141	917
^*,1	Carvana Co. Class A	95,982	904
^*	MarineMax Inc.	22,934	770
¹	Guess? Inc.	35,035	737
^*	Genesco Inc.	13,320	599
	Haverty Furniture Cos. Inc.	15,235	575
	Designer Brands Inc. Class A	57,624	564
^*	America's Car-Mart Inc.	6,598	561
^*	Children's Place Inc.	13,168	551
	Shoe Carnival Inc.	19,026	501
	Aaron's Co. Inc.	32,701	469
^*,1	EVgo Inc.	70,050	415
	Arko Corp.	51,239	411
^*	Zumiez Inc.	17,537	408
^*	Sportsman's Warehouse Holdings Inc.	41,877	377
^*	OneWater Marine Inc. Class A	11,295	314
^*	Conn's Inc.	18,893	162
^*,1	Bed Bath & Beyond Inc.	72,479	102
			957,190
Textiles, Apparel & Luxury Goods (6.2%)
	NIKE Inc. Class B	1,347,511	160,071
^*	Lululemon Athletica Inc.	124,292	38,431
^*	Deckers Outdoor Corp.	28,308	11,786
	Tapestry Inc.	257,487	11,203
	VF Corp.	353,609	8,777
^*	Crocs Inc.	66,040	8,038
^*	Capri Holdings Ltd.	137,717	6,827
^*	Skechers USA Inc. Class A	143,745	6,398
	PVH Corp.	69,758	5,597
	Ralph Lauren Corp. Class A	43,949	5,194
	Columbia Sportswear Co.	36,500	3,183

Consumer Discretionary Index Fund

		Shares	Market Value• ($000)
	Carter's Inc.	40,867	3,081
	Steven Madden Ltd.	79,232	2,876
	Kontoor Brands Inc.	53,196	2,774
	Hanesbrands Inc.	372,198	2,114
^*	Under Armour Inc. Class C	226,606	1,994
	Oxford Industries Inc.	16,143	1,899
^*	Under Armour Inc. Class A	187,226	1,859
	Levi Strauss & Co. Class A	98,369	1,765
	Wolverine World Wide Inc.	84,063	1,408
^*	G-III Apparel Group Ltd.	46,301	769
	Movado Group Inc.	16,930	586
^*	Allbirds Inc. Class A	102,360	293
^*	Fossil Group Inc.	49,638	215
^*,1	PLBY Group Inc.	34,112	73
			287,211
Total Common Stocks (Cost $4,901,445)			4,616,897

		Shares	Market Value• ($000)
Temporary Cash Investments (0.7%)
Money Market Fund (0.7%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $32,049)	320,587	32,055
Total Investments (100.5%) (Cost $4,933,494)			4,648,952
Other Assets and Liabilities—Net (-0.5%)			(21,261)
Net Assets (100.0%)			4,627,691
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 $25,246,000.
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 $26,704,000 was received for securities on loan.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
MercadoLibre Inc.	8/31/23	BANA	8,296	(4.569)	—	(29)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Discretionary Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $4,901,445)	4,616,897
Affiliated Issuers (Cost $32,049)	32,055
Total Investments in Securities	4,648,952
Investment in Vanguard	166
Cash	3,230
Cash Collateral Pledged—Over-the-Counter Swap Contracts	20
Receivables for Investment Securities Sold	37,413
Receivables for Accrued Income	6,465
Receivables for Capital Shares Issued	1,043
Total Assets	4,697,289
Liabilities
Payables for Investment Securities Purchased	19,579
Collateral for Securities on Loan	26,704
Payables for Capital Shares Redeemed	23,119
Payables to Vanguard	167
Unrealized Depreciation—Over-the-Counter Swap Contracts	29
Total Liabilities	69,598
Net Assets	4,627,691
1 Includes $25,246,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	5,174,385
Total Distributable Earnings (Loss)	(546,694)
Net Assets	4,627,691

ETF Shares—Net Assets
Applicable to 16,702,230 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,131,792
Net Asset Value Per Share—ETF Shares	$247.38

Admiral Shares—Net Assets
Applicable to 3,872,806 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	495,899
Net Asset Value Per Share—Admiral Shares	$128.05

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Discretionary Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	24,033
Interest¹	76
Securities Lending—Net	1,027
Total Income	25,136
Expenses
The Vanguard Group—Note B
Investment Advisory Services	55
Management and Administrative— ETF Shares	1,811
Management and Administrative— Admiral Shares	218
Marketing and Distribution— ETF Shares	113
Marketing and Distribution— Admiral Shares	13
Custodian Fees	11
Shareholders’ Reports—ETF Shares	77
Shareholders’ Reports—Admiral Shares	3
Trustees’ Fees and Expenses	1
Other Expenses	7
Total Expenses	2,309
Net Investment Income	22,827
Realized Net Gain (Loss)
Investment Securities Sold^1,2	78,710
Swap Contracts	2,379
Realized Net Gain (Loss)	81,089
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	(304,578)
Swap Contracts	(29)
Change in Unrealized Appreciation (Depreciation)	(304,607)
Net Increase (Decrease) in Net Assets Resulting from Operations	(200,691)

1	Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $76,000, $2,000, less than $1,000, and $4,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $157,595,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	22,827	52,090
Realized Net Gain (Loss)	81,089	927,803
Change in Unrealized Appreciation (Depreciation)	(304,607)	(2,398,610)
Net Increase (Decrease) in Net Assets Resulting from Operations	(200,691)	(1,418,717)
Distributions
ETF Shares	(21,656)	(64,707)
Admiral Shares	(2,458)	(7,212)
Total Distributions	(24,114)	(71,919)
Capital Share Transactions
ETF Shares	(301,951)	(678,371)
Admiral Shares	(6,694)	(80,670)
Net Increase (Decrease) from Capital Share Transactions	(308,645)	(759,041)
Total Increase (Decrease)	(533,450)	(2,249,677)
Net Assets
Beginning of Period	5,161,141	7,410,818
End of Period	4,627,691	5,161,141

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Discretionary Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$256.97	$320.99	$246.86	$178.51	$180.85	$141.74
Investment Operations
Net Investment Income¹	1.182	2.329	1.724	1.998	2.052	2.066
Net Realized and Unrealized Gain (Loss) on Investments	(9.546)	(63.227)	76.697	68.603	(2.391)	39.031
Total from Investment Operations	(8.364)	(60.898)	78.421	70.601	(.339)	41.097
Distributions
Dividends from Net Investment Income	(1.226)	(3.122)	(4.291)	(2.251)	(2.001)	(1.987)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.226)	(3.122)	(4.291)	(2.251)	(2.001)	(1.987)
Net Asset Value, End of Period	$247.38	$256.97	$320.99	$246.86	$178.51	$180.85
Total Return	-3.23%	-19.11%	32.39%	39.98%	-0.14%	29.22%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,132	$4,638	$6,658	$4,026	$3,049	$3,199
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	0.91%	0.78%	0.60%	1.06%	1.20%	1.28%
Portfolio Turnover Rate²	4%	9%	8%	10%	9%	28%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$133.01	$166.15	$127.78	$92.40	$93.61	$73.36
Investment Operations
Net Investment Income¹	.612	1.211	.889	1.033	1.058	1.073
Net Realized and Unrealized Gain (Loss) on Investments	(4.937)	(32.737)	39.704	35.512	(1.232)	20.205
Total from Investment Operations	(4.325)	(31.526)	40.593	36.545	(.174)	21.278
Distributions
Dividends from Net Investment Income	(.635)	(1.614)	(2.223)	(1.165)	(1.036)	(1.028)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.635)	(1.614)	(2.223)	(1.165)	(1.036)	(1.028)
Net Asset Value, End of Period	$128.05	$133.01	$166.15	$127.78	$92.40	$93.61
Total Return²	-3.23%	-19.11%	32.39%	40.01%	-0.14%	29.24%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$496	$523	$753	$437	$321	$328
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	0.91%	0.79%	0.60%	1.06%	1.20%	1.28%
Portfolio Turnover Rate³	4%	9%	8%	10%	9%	28%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Discretionary Index Fund

Notes to Financial Statements

Vanguard Consumer Discretionary 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Consumer Discretionary Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Consumer Discretionary Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $166,000, representing less than 0.01% of the fund’s net assets and 0.07% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	4,616,897	—	—	4,616,897
Temporary Cash Investments	32,055	—	—	32,055
Total	4,648,952	—	—	4,648,952
Derivative Financial Instruments
Liabilities
Swap Contracts	—	29	—	29

D.	As of February 28, 2023, 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	4,945,402
Gross Unrealized Appreciation	464,456
Gross Unrealized Depreciation	(760,906)
Net Unrealized Appreciation (Depreciation)	(296,450)

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $343,689,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

Consumer Discretionary Index Fund

During the six months ended February 28, 2023, the fund purchased $410,425,000 of investment securities and sold $722,226,000 of investment securities, other than temporary cash investments. Purchases and sales include $215,281,000 and $511,785,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $242,000 and sales were $3,397,000, resulting in net realized loss of $630,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	216,440	879	1,566,104	5,181
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(518,391)	(2,225)	(2,244,475)	(7,875)
Net Increase (Decrease)—ETF Shares	(301,951)	(1,346)	(678,371)	(2,694)
Admiral Shares
Issued	54,691	433	200,157	1,252
Issued in Lieu of Cash Distributions	2,102	17	6,292	40
Redeemed	(63,487)	(513)	(287,119)	(1,886)
Net Increase (Decrease)—Admiral Shares	(6,694)	(63)	(80,670)	(594)

G.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Consumer Staples Index Fund

Fund Allocation

As of February 28, 2023

Beverages	24.6%
Food & Staples Retailing	22.7
Food Products	21.0
Household Products	19.2
Personal Products	4.2
Tobacco	8.3

Consumer Staples Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.8%)
Beverages (24.5%)
	Coca-Cola Co.	11,599,441	690,283
	PepsiCo Inc.	3,886,751	674,468
^*	Monster Beverage Corp.	1,320,297	134,353
	Constellation Brands Inc. Class A	551,742	123,425
	Keurig Dr Pepper Inc.	2,632,303	90,946
	Brown-Forman Corp. Class B	1,069,505	69,379
	Molson Coors Beverage Co. Class B	715,281	38,046
^*	Celsius Holdings Inc.	204,608	18,578
	Coca-Cola Consolidated Inc.	30,432	16,946
^*	Boston Beer Co. Inc. Class A	48,172	15,598
	MGP Ingredients Inc.	118,970	12,068
^*	National Beverage Corp.	209,262	9,762
^*	Duckhorn Portfolio Inc.	477,351	7,280
^*	Vita Coco Co. Inc.	176,094	2,978
^*,1	Vintage Wine Estates Inc.	394,385	603
			1,904,713
Food & Staples Retailing (22.7%)
	Costco Wholesale Corp.	1,235,002	597,963
	Walmart Inc.	4,144,048	588,993
	Sysco Corp.	1,700,000	126,769
	Kroger Co.	2,340,266	100,959
	Walgreens Boots Alliance Inc.	2,504,319	88,978
^*	BJ's Wholesale Club Holdings Inc.	528,443	37,942
^*	Performance Food Group Co.	622,193	35,210
^*	US Foods Holding Corp.	838,144	31,455
	Casey's General Stores Inc.	149,395	31,067
^*	Sprouts Farmers Market Inc.	566,093	17,147
^*	United Natural Foods Inc.	365,674	14,894
^*	Grocery Outlet Holding Corp.	490,236	13,261
	Andersons Inc.	269,478	12,296
	PriceSmart Inc.	175,125	12,210
	Albertsons Cos. Inc. Class A	598,121	11,891
	Ingles Markets Inc. Class A	123,252	11,019
	Weis Markets Inc.	142,132	10,865
^*	Chefs' Warehouse Inc.	299,179	9,738
	SpartanNash Co.	334,924	8,963
			1,761,620
Food Products (20.9%)
	Mondelez International Inc. Class A	4,469,993	291,354
	General Mills Inc.	1,993,126	158,474

		Shares	Market Value• ($000)
	Archer-Daniels-Midland Co.	1,844,371	146,812
	Hershey Co.	496,934	118,429
	Kraft Heinz Co.	2,123,085	82,673
	McCormick & Co. Inc.	862,661	64,113
	Conagra Brands Inc.	1,730,437	63,005
	Tyson Foods Inc. Class A	1,005,333	59,556
	Kellogg Co.	901,935	59,474
	J M Smucker Co.	389,695	57,632
	Lamb Weston Holdings Inc.	533,885	53,730
	Bunge Ltd.	544,884	52,036
	Hormel Foods Corp.	1,075,358	47,724
	Campbell Soup Co.	794,249	41,714
^*	Darling Ingredients Inc.	604,651	38,256
	Ingredion Inc.	278,033	27,637
	Flowers Foods Inc.	864,745	24,109
^*	Post Holdings Inc.	245,399	22,076
	Lancaster Colony Corp.	100,221	19,241
^*	Hostess Brands Inc. Class A	747,264	18,457
^*	Simply Good Foods Co.	465,971	17,842
^*	Freshpet Inc.	268,363	16,687
^*	TreeHouse Foods Inc.	315,941	15,415
	Cal-Maine Foods Inc.	248,243	14,100
	J & J Snack Foods Corp.	92,968	13,128
	Fresh Del Monte Produce Inc.	343,025	10,730
^*,1	Beyond Meat Inc.	579,302	10,335
	John B Sanfilippo & Son Inc.	110,552	9,924
^*	Hain Celestial Group Inc.	546,049	9,736
	Utz Brands Inc.	586,083	9,612
	Tootsie Roll Industries Inc.	205,023	9,027
^*	Pilgrim's Pride Corp.	364,305	8,521
	B&G Foods Inc.	639,291	8,100
	Calavo Growers Inc.	200,135	6,458
^*	Mission Produce Inc.	522,394	6,018
^*	Sovos Brands Inc.	385,182	5,034
^*	Vital Farms Inc.	257,542	4,162
^*	Benson Hill Inc.	1,439,433	3,210
^*,1	Tattooed Chef Inc.	626,788	790
			1,625,331
Household Products (19.1%)
	Procter & Gamble Co.	6,908,665	950,356
	Colgate-Palmolive Co.	2,627,070	192,564
	Kimberly-Clark Corp.	1,124,256	140,588
	Church & Dwight Co. Inc.	851,483	71,337
	Clorox Co.	373,073	57,990
	Spectrum Brands Holdings Inc.	241,368	15,452
	Energizer Holdings Inc.	417,769	15,136
	WD-40 Co.	74,523	12,925
^*	Central Garden & Pet Co. Class A	302,650	11,631
	Reynolds Consumer Products Inc.	421,897	11,577

		Shares	Market Value• ($000)
^*	Central Garden & Pet Co.	126,395	5,119
			1,484,675
Personal Products (4.3%)
	Estee Lauder Cos. Inc. Class A	757,816	184,187
^*	BellRing Brands Inc.	674,418	20,826
^*	Coty Inc. Class A	1,753,536	19,815
^*	elf Beauty Inc.	261,900	19,577
	Inter Parfums Inc.	126,135	15,188
	Edgewell Personal Care Co.	321,145	13,713
^*	Herbalife Nutrition Ltd.	637,414	12,334
	Nu Skin Enterprises Inc. Class A	300,167	11,959
^*	Beauty Health Co.	826,344	10,420
	Medifast Inc.	84,127	9,433
^*	USANA Health Sciences Inc.	137,561	8,361
^*,1	Veru Inc.	813,329	3,217
			329,030
Tobacco (8.3%)
	Philip Morris International Inc.	3,526,218	343,101
	Altria Group Inc.	5,874,611	272,758
	Vector Group Ltd.	949,581	12,601
	Universal Corp.	199,521	10,094
	Turning Point Brands Inc.	190,460	4,552
			643,106
Total Common Stocks (Cost $7,179,517)			7,748,475
Temporary Cash Investments (0.4%)
Money Market Fund (0.4%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $31,537)	315,446	31,542
Total Investments (100.2%) (Cost $7,211,054)			7,780,017
Other Assets and Liabilities—Net (-0.2%)			(12,917)
Net Assets (100.0%)			7,767,100
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 $12,753,000.
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 $14,943,000 was received for securities on loan, of which $14,939,000 is held in Vanguard Market Liquidity Fund and $4,000 is held in cash.

Consumer Staples Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $7,179,517)	7,748,475
Affiliated Issuers (Cost $31,537)	31,542
Total Investments in Securities	7,780,017
Investment in Vanguard	284
Cash	4
Receivables for Investment Securities Sold	100,619
Receivables for Accrued Income	6,795
Receivables for Capital Shares Issued	486
Unrealized Appreciation—Over-the-Counter Swap Contracts	40
Total Assets	7,888,245
Liabilities
Due to Custodian	1,085
Payables for Investment Securities Purchased	51,890
Collateral for Securities on Loan	14,943
Payables for Capital Shares Redeemed	52,892
Payables to Vanguard	282
Unrealized Depreciation—Over-the-Counter Swap Contracts	53
Total Liabilities	121,145
Net Assets	7,767,100
1 Includes $12,753,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	7,271,216
Total Distributable Earnings (Loss)	495,884
Net Assets	7,767,100

ETF Shares—Net Assets
Applicable to 35,035,407 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	6,554,820
Net Asset Value Per Share—ETF Shares	$187.09

Admiral Shares—Net Assets
Applicable to 13,141,427 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,212,280
Net Asset Value Per Share—Admiral Shares	$92.25

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Staples Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	97,583
Interest¹	136
Securities Lending—Net	2,252
Total Income	99,971
Expenses
The Vanguard Group—Note B
Investment Advisory Services	94
Management and Administrative— ETF Shares	2,835
Management and Administrative— Admiral Shares	537
Marketing and Distribution— ETF Shares	147
Marketing and Distribution— Admiral Shares	33
Custodian Fees	73
Shareholders’ Reports—ETF Shares	146
Shareholders’ Reports—Admiral Shares	11
Trustees’ Fees and Expenses	2
Other Expenses	6
Total Expenses	3,884
Expenses Paid Indirectly	(1)
Net Expenses	3,883
Net Investment Income	96,088
Realized Net Gain (Loss)
Investment Securities Sold^1,2	125,914
Swap Contracts	(149)
Realized Net Gain (Loss)	125,765
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	(199,466)
Swap Contracts	(84)
Change in Unrealized Appreciation (Depreciation)	(199,550)
Net Increase (Decrease) in Net Assets Resulting from Operations	22,303

1	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $135,000, $2,000, and $3,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $155,839,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	96,088	171,173
Realized Net Gain (Loss)	125,765	423,016
Change in Unrealized Appreciation (Depreciation)	(199,550)	(412,612)
Net Increase (Decrease) in Net Assets Resulting from Operations	22,303	181,577
Distributions
ETF Shares	(91,110)	(141,845)
Admiral Shares	(16,673)	(22,409)
Total Distributions	(107,783)	(164,254)
Capital Share Transactions
ETF Shares	(117,219)	813,055
Admiral Shares	(2,567)	387,987
Net Increase (Decrease) from Capital Share Transactions	(119,786)	1,201,042
Total Increase (Decrease)	(205,266)	1,218,365
Net Assets
Beginning of Period	7,972,366	6,754,001
End of Period	7,767,100	7,972,366

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Staples Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$188.63	$187.61	$167.31	$154.72	$140.13	$140.15
Investment Operations
Net Investment Income¹	2.310	4.356	4.385	3.992	3.896	3.603
Net Realized and Unrealized Gain (Loss) on Investments	(1.260)	.907	20.341	12.658	14.346	(.033)
Total from Investment Operations	1.050	5.263	24.726	16.650	18.242	3.570
Distributions
Dividends from Net Investment Income	(2.590)	(4.243)	(4.427)	(4.060)	(3.652)	(3.590)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(2.590)	(4.243)	(4.427)	(4.060)	(3.652)	(3.590)
Net Asset Value, End of Period	$187.09	$188.63	$187.61	$167.31	$154.72	$140.13
Total Return	0.57%	2.83%	15.01%	11.01%	13.24%	2.60%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$6,555	$6,747	$5,908	$5,712	$5,296	$3,983
Ratio of Total Expenses to Average Net Assets	0.10%²	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.43%	2.27%	2.50%	2.58%	2.71%	2.60%
Portfolio Turnover Rate³	3%	5%	8%	3%	6%	8%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$93.01	$92.51	$82.50	$76.29	$69.09	$69.10
Investment Operations
Net Investment Income¹	1.136	2.147	2.160	1.973	1.923	1.776
Net Realized and Unrealized Gain (Loss) on Investments	(.619)	.448	10.032	6.239	7.076	(.018)
Total from Investment Operations	.517	2.595	12.192	8.212	8.999	1.758
Distributions
Dividends from Net Investment Income	(1.277)	(2.095)	(2.183)	(2.002)	(1.799)	(1.768)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.277)	(2.095)	(2.183)	(2.002)	(1.799)	(1.768)
Net Asset Value, End of Period	$92.25	$93.01	$92.51	$82.50	$76.29	$69.09
Total Return²	0.57%	2.85%	15.04%	11.03%	13.24%	2.59%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$1,212	$1,225	$846	$791	$710	$587
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.42%	2.27%	2.50%	2.59%	2.71%	2.60%
Portfolio Turnover Rate⁴	3%	5%	8%	3%	6%	8%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Consumer Staples Index Fund

Notes to Financial Statements

Vanguard Consumer Staples 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Consumer Staples Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Consumer Staples Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $284,000, representing less than 0.01% of the fund’s net assets and 0.11% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended February 28, 2023, custodian fee offset arrangements reduced the fund’s expenses by $1,000 (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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	7,748,475	—	—	7,748,475
Temporary Cash Investments	31,542	—	—	31,542
Total	7,780,017	—	—	7,780,017
Derivative Financial Instruments
Assets
Swap Contracts	—	40	—	40
Liabilities
Swap Contracts	—	53	—	53

E.	As of February 28, 2023, 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	7,224,685
Gross Unrealized Appreciation	944,913
Gross Unrealized Depreciation	(389,581)
Net Unrealized Appreciation (Depreciation)	555,332

Consumer Staples Index Fund

losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended February 28, 2023, the fund purchased $587,571,000 of investment securities and sold $730,077,000 of investment securities, other than temporary cash investments. Purchases and sales include $383,566,000 and $531,965,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $457,000 and sales were $880,000, resulting in net realized loss of $9,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	419,101	2,218	2,200,339	11,477
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(536,320)	(2,950)	(1,387,284)	(7,200)
Net Increase (Decrease)—ETF Shares	(117,219)	(732)	813,055	4,277
Admiral Shares
Issued	177,420	1,914	636,063	6,644
Issued in Lieu of Cash Distributions	14,761	161	18,698	204
Redeemed	(194,748)	(2,110)	(266,774)	(2,818)
Net Increase (Decrease)—Admiral Shares	(2,567)	(35)	387,987	4,030

H.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Energy Index Fund

Fund Allocation

As of February 28, 2023

Coal & Consumable Fuels	0.7%
Integrated Oil & Gas	41.0
Oil & Gas Drilling	1.2
Oil & Gas Equipment & Services	10.2
Oil & Gas Exploration & Production	27.2
Oil & Gas Refining & Marketing	10.4
Oil & Gas Storage & Transportation	9.3

Energy Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.7%)
Coal & Consumable Fuels (0.7%)
^*	Peabody Energy Corp.	663,127	18,103
¹	Arch Resources Inc.	104,058	16,374
	CONSOL Energy Inc.	197,804	10,826
¹	Enviva Inc.	207,427	9,035
^*,1	Uranium Energy Corp.	2,205,538	8,160
^*	Centrus Energy Corp. Class A	110,367	4,946
			67,444
Integrated Oil & Gas (40.8%)
	Exxon Mobil Corp.	20,343,900	2,235,998
	Chevron Corp.	9,782,641	1,572,755
	Occidental Petroleum Corp.	4,826,028	282,613
			4,091,366
Oil & Gas Drilling (1.2%)
^*	Transocean Ltd. (XNYS)	3,884,166	27,150
	Helmerich & Payne Inc.	588,479	24,763
^*	Noble Corp. plc	573,028	23,890
	Patterson-UTI Energy Inc.	1,240,607	16,996
^*	Valaris Ltd.	143,982	9,683
^*	Nabors Industries Ltd. (XNYS)	57,820	8,691
^*	Diamond Offshore Drilling Inc.	701,589	8,335
			119,508
Oil & Gas Equipment & Services (10.2%)
	Schlumberger Ltd.	7,477,012	397,852
	Halliburton Co.	4,817,101	174,524
	Baker Hughes Co. Class A	5,383,260	164,728
	NOV Inc.	2,148,430	47,008
^*	TechnipFMC plc	2,400,655	36,706
	ChampionX Corp.	1,127,035	34,453
^*	Weatherford International plc	348,709	23,231
	Cactus Inc. Class A	352,452	16,195
^*	Tidewater Inc.	281,139	13,731
^*	Oceaneering International Inc.	624,196	13,039
	Liberty Energy Inc. Class A	794,730	12,120
^*	NexTier Oilfield Solutions Inc.	1,206,078	11,011
^*	Expro Group Holdings NV	469,244	10,666
	Archrock Inc.	929,648	10,291
^*	Dril-Quip Inc.	243,598	8,343
^*	Helix Energy Solutions Group Inc.	985,335	8,159
	Core Laboratories NV	329,241	7,859
^*	US Silica Holdings Inc.	532,085	6,460
^*	DMC Global Inc.	194,006	5,194
	RPC Inc.	588,738	5,163
^*	ProPetro Holding Corp.	574,382	5,060
^*	Bristow Group Inc.	139,556	3,801

		Shares	Market Value• ($000)
^*,1	ProFrac Holding Corp. Class A	152,188	2,911
			1,018,505
Oil & Gas Exploration & Production (27.2%)
	ConocoPhillips	6,574,413	679,466
	EOG Resources Inc.	3,097,772	350,110
	Pioneer Natural Resources Co.	1,201,420	240,777
	Devon Energy Corp.	3,301,209	178,001
	Hess Corp.	1,278,598	172,227
	Diamondback Energy Inc.	901,590	126,745
	Coterra Energy Inc.	4,253,828	106,218
	Marathon Oil Corp.	3,698,883	93,027
	APA Corp.	1,767,843	67,850
	Texas Pacific Land Corp.	33,199	59,100
	Ovintiv Inc. (XNYS)	1,370,627	58,622
	EQT Corp.	1,498,994	49,737
	Chesapeake Energy Corp.	598,643	48,376
^*	Antero Resources Corp.	1,499,547	39,288
	Range Resources Corp.	1,447,171	38,987
	PDC Energy Inc.	532,827	35,758
	Matador Resources Co.	650,965	35,015
	Murphy Oil Corp.	815,801	31,833
	Chord Energy Corp.	219,494	29,548
^*	Southwestern Energy Co.	4,966,305	26,321
^*	Denbury Inc.	280,895	23,418
	Civitas Resources Inc.	319,511	22,420
	Magnolia Oil & Gas Corp. Class A	964,882	21,083
^*	Kosmos Energy Ltd.	2,663,276	20,960
	SM Energy Co.	692,636	20,440
^*	CNX Resources Corp.	1,093,885	16,791
	California Resources Corp.	316,185	13,343
	Permian resources Corp. Class A	1,226,837	13,262
	Northern Oil and Gas Inc.	405,528	12,588
^*	Callon Petroleum Co.	305,631	11,846
	Viper Energy Partners LP	368,765	10,558
¹	Sitio Royalties Corp. Class A	443,022	10,415
	Comstock Resources Inc.	606,242	7,360
^*	Talos Energy Inc.	389,096	6,930
	Ranger Oil Corp. Class A	144,915	6,014
¹	Kimbell Royalty Partners LP	383,273	5,914
^*	Gulfport Energy Corp.	84,804	5,607
^*	Tellurian Inc.	3,471,140	5,172
^*	Earthstone Energy Inc. Class A	366,015	5,106
	Berry Corp.	500,601	4,721
^*	W&T Offshore Inc.	817,569	4,587
¹	Crescent Energy Inc. Class A	333,347	3,847

		Shares	Market Value• ($000)
^*	Vitesse Energy Inc.	103,651	1,802
			2,721,190
Oil & Gas Refining & Marketing (10.3%)
	Marathon Petroleum Corp.	2,788,732	344,687
	Valero Energy Corp.	2,132,992	280,979
	Phillips 66	2,548,408	261,365
	HF Sinclair Corp.	889,113	44,207
	PBF Energy Inc. Class A	553,901	24,211
^*	Green Plains Inc.	365,777	12,681
	World Fuel Services Corp.	387,159	10,627
	Delek US Holdings Inc.	397,445	10,004
^*	Par Pacific Holdings Inc.	327,642	9,102
	New Fortress Energy Inc. Class A	258,788	8,537
^*	Clean Energy Fuels Corp.	1,265,814	7,089
	CVR Energy Inc.	212,149	6,731
^*,1	Vertex Energy Inc.	585,834	5,548
^*	REX American Resources Corp.	140,191	4,628
^*	Gevo Inc.	2,203,088	4,076
			1,034,472
Oil & Gas Storage & Transportation (9.3%)
	Williams Cos. Inc.	6,464,848	194,592
	Cheniere Energy Inc.	1,195,482	188,097
	Kinder Morgan Inc.	10,816,092	184,522
	ONEOK Inc.	2,377,779	155,626
	Targa Resources Corp.	1,155,738	85,640
	DTE Midstream LLC	539,310	27,073
	Antero Midstream Corp.	1,790,092	18,868
	EnLink Midstream LLC	1,523,978	17,160
¹	Plains GP Holdings LP Class A	1,157,015	16,094
	Equitrans Midstream Corp.	2,412,413	14,547
	International Seaways Inc.	240,057	12,349
¹	Hess Midstream LP Class A	287,979	7,896
¹	Kinetik Holdings Inc. Class A	145,973	4,343
^*	NextDecade Corp.	605,515	4,275
	Excelerate Energy Inc. Class A	160,385	3,466
			934,548
Total Common Stocks (Cost $8,647,338)			9,987,033

Energy Index Fund

		Shares	Market Value• ($000)
Temporary Cash Investments (0.2%)
Money Market Fund (0.2%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $22,737)	227,408	22,738
Total Investments (99.9%) (Cost $8,670,075)			10,009,771
Other Assets and Liabilities—Net (0.1%)			11,867
Net Assets (100.0%)			10,021,638
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 $21,942,000.
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 $22,689,000 was received for securities on loan.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
EQT Corp.	8/31/23	BANA	9,954	(4.569)	10	—
Hess Corp.	1/31/24	GSI	29,202	(4.573)	—	(2,310)
					10	(2,310)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.
	GSI—Goldman Sachs International.

At February 28, 2023, the counterparties had deposited in segregated accounts securities with a value of $670,000 in connection with open over-the-counter swap contracts.

See accompanying Notes, which are an integral part of the Financial Statements.

Energy Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $8,647,338)	9,987,033
Affiliated Issuers (Cost $22,737)	22,738
Total Investments in Securities	10,009,771
Investment in Vanguard	384
Cash Collateral Pledged—Over-the-Counter Swap Contracts	1,450
Receivables for Investment Securities Sold	292,987
Receivables for Accrued Income	47,929
Receivables for Capital Shares Issued	1,203
Unrealized Appreciation—Over-the-Counter Swap Contracts	10
Total Assets	10,353,734
Liabilities
Due to Custodian	6,258
Payables for Investment Securities Purchased	89,805
Collateral for Securities on Loan	22,689
Payables for Capital Shares Redeemed	210,672
Payables to Vanguard	362
Unrealized Depreciation—Over-the-Counter Swap Contracts	2,310
Total Liabilities	332,096
Net Assets	10,021,638
1 Includes $21,942,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	9,484,627
Total Distributable Earnings (Loss)	537,011
Net Assets	10,021,638

ETF Shares—Net Assets
Applicable to 68,843,479 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	8,029,952
Net Asset Value Per Share—ETF Shares	$116.64

Admiral Shares—Net Assets
Applicable to 34,181,376 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,991,686
Net Asset Value Per Share—Admiral Shares	$58.27

See accompanying Notes, which are an integral part of the Financial Statements.

Energy Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends¹	195,967
Interest²	597
Securities Lending—Net	140
Total Income	196,704
Expenses
The Vanguard Group—Note B
Investment Advisory Services	125
Management and Administrative— ETF Shares	3,629
Management and Administrative— Admiral Shares	950
Marketing and Distribution— ETF Shares	208
Marketing and Distribution— Admiral Shares	57
Custodian Fees	18
Shareholders’ Reports—ETF Shares	170
Shareholders’ Reports—Admiral Shares	10
Trustees’ Fees and Expenses	2
Other Expenses	6
Total Expenses	5,175
Expenses Paid Indirectly	(18)
Net Expenses	5,157
Net Investment Income	191,547
Realized Net Gain (Loss)
Investment Securities Sold^2,3	490,962
Swap Contracts	6,341
Realized Net Gain (Loss)	497,303
Change in Unrealized Appreciation (Depreciation)
Investment Securities²	(169,436)
Swap Contracts	(5,108)
Change in Unrealized Appreciation (Depreciation)	(174,544)
Net Increase (Decrease) in Net Assets Resulting from Operations	514,306

1	Dividends are net of foreign withholding taxes of $1,000.
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 $597,000, $5,000, less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	Includes $500,101,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	191,547	329,927
Realized Net Gain (Loss)	497,303	1,348,925
Change in Unrealized Appreciation (Depreciation)	(174,544)	2,695,802
Net Increase (Decrease) in Net Assets Resulting from Operations	514,306	4,374,654
Distributions
ETF Shares	(180,591)	(276,138)
Admiral Shares	(45,251)	(61,049)
Total Distributions	(225,842)	(337,187)
Capital Share Transactions
ETF Shares	(57,481)	(248,367)
Admiral Shares	(15,603)	111,245
Net Increase (Decrease) from Capital Share Transactions	(73,084)	(137,122)
Total Increase (Decrease)	215,380	3,900,345
Net Assets
Beginning of Period	9,806,258	5,905,913
End of Period	10,021,638	9,806,258

See accompanying Notes, which are an integral part of the Financial Statements.

Energy Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$113.45	$67.99	$47.90	$75.75	$103.13	$85.71
Investment Operations
Net Investment Income¹	2.203	3.625	2.802	2.957	2.769	2.519
Net Realized and Unrealized Gain (Loss) on Investments	3.585	45.526	19.789	(28.064)	(27.449)	17.837
Total from Investment Operations	5.788	49.151	22.591	(25.107)	(24.680)	20.356
Distributions
Dividends from Net Investment Income	(2.598)	(3.691)	(2.501)	(2.743)	(2.700)	(2.936)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(2.598)	(3.691)	(2.501)	(2.743)	(2.700)	(2.936)
Net Asset Value, End of Period	$116.64	$113.45	$67.99	$47.90	$75.75	$103.13
Total Return	5.26%	74.07%	48.07%	-33.87%	-24.34%	24.06%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$8,030	$7,862	$4,806	$2,720	$3,029	$4,288
Ratio of Total Expenses to Average Net Assets	0.10%²	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	3.40%	3.80%	4.54%	4.91%	3.15%	2.56%
Portfolio Turnover Rate³	3%	6%	5%	8%	7%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$56.67	$33.97	$23.93	$37.84	$51.52	$42.82
Investment Operations
Net Investment Income¹	1.097	1.829	1.435	1.461	1.388	1.249
Net Realized and Unrealized Gain (Loss) on Investments	1.801	22.715	9.855	(14.001)	(13.720)	8.916
Total from Investment Operations	2.898	24.544	11.290	(12.540)	(12.332)	10.165
Distributions
Dividends from Net Investment Income	(1.298)	(1.844)	(1.250)	(1.370)	(1.348)	(1.465)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.298)	(1.844)	(1.250)	(1.370)	(1.348)	(1.465)
Net Asset Value, End of Period	$58.27	$56.67	$33.97	$23.93	$37.84	$51.52
Total Return²	5.32%	73.97%	48.18%	-33.82%	-24.33%	24.06%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$1,992	$1,944	$1,100	$407	$468	$642
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	3.38%	3.83%	4.52%	4.84%	3.15%	2.56%
Portfolio Turnover Rate⁴	3%	6%	5%	8%	7%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Energy Index Fund

Notes to Financial Statements

Vanguard Energy 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Energy Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Energy Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $384,000, representing less than 0.01% of the fund’s net assets and 0.15% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended February 28, 2023, custodian fee offset arrangements reduced the fund’s expenses by $18,000 (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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	9,987,033	—	—	9,987,033
Temporary Cash Investments	22,738	—	—	22,738
Total	10,009,771	—	—	10,009,771
Derivative Financial Instruments
Assets
Swap Contracts	—	10	—	10
Liabilities
Swap Contracts	—	2,310	—	2,310

E.	As of February 28, 2023, 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	8,710,504
Gross Unrealized Appreciation	1,691,955
Gross Unrealized Depreciation	(392,688)
Net Unrealized Appreciation (Depreciation)	1,299,267

Energy Index Fund

During the six months ended February 28, 2023, the fund purchased $1,423,568,000 of investment securities and sold $1,518,840,000 of investment securities, other than temporary cash investments. Purchases and sales include $848,751,000 and $1,184,403,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $4,795,000 and sales were $2,241,000, resulting in net realized loss of $330,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	1,131,893	9,616	3,288,003	35,250
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(1,189,374)	(10,075)	(3,536,370)	(36,625)
Net Increase (Decrease)—ETF Shares	(57,481)	(459)	(248,367)	(1,375)
Admiral Shares
Issued	491,030	8,249	1,232,945	24,911
Issued in Lieu of Cash Distributions	40,481	753	54,811	1,248
Redeemed	(547,114)	(9,126)	(1,176,511)	(24,249)
Net Increase (Decrease)—Admiral Shares	(15,603)	(124)	111,245	1,910

H.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Financials Index Fund

Fund Allocation

As of February 28, 2023

Banks	35.5%
Capital Markets	27.3
Consumer Finance	5.2
Diversified Financial Services	9.6
Insurance	20.4
Mortgage Real Estate Investment Trusts (REITs)	1.1
Thrifts & Mortgage Finance	0.9

Financials Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.8%)
Banks (35.4%)
	JPMorgan Chase & Co.	6,052,338	867,603
	Bank of America Corp.	14,898,206	511,008
	Wells Fargo & Co.	7,862,602	367,734
	Citigroup Inc.	3,996,725	202,594
	US Bancorp	2,912,717	139,024
	PNC Financial Services Group Inc.	832,269	131,432
	Truist Financial Corp.	2,737,969	128,548
	M&T Bank Corp.	356,234	55,320
	Fifth Third Bancorp	1,416,679	51,425
	First Republic Bank	377,475	46,433
	Huntington Bancshares Inc.	2,977,764	45,619
	Regions Financial Corp.	1,928,496	44,973
	Citizens Financial Group Inc.	1,015,305	42,399
	KeyCorp	1,925,790	35,223
^*	SVB Financial Group	121,966	35,140
	First Horizon Corp.	1,107,687	27,437
	East West Bancorp Inc.	291,498	22,215
	Webster Financial Corp.	359,167	19,079
	Comerica Inc.	270,749	18,980
	Western Alliance Bancorp	224,784	16,688
	Cullen/Frost Bankers Inc.	126,258	16,643
	First Citizens BancShares Inc. Class A	22,283	16,350
	Zions Bancorp NA	308,909	15,637
	Commerce Bancshares Inc.	233,414	15,440
	Signature Bank	130,140	14,973
	Prosperity Bancshares Inc.	188,479	13,851
	SouthState Corp.	156,628	12,637
	Synovus Financial Corp.	300,298	12,555
	Pinnacle Financial Partners Inc.	157,882	11,697
	Wintrust Financial Corp.	125,039	11,520
	United Bankshares Inc.	278,046	11,336
	Glacier Bancorp Inc.	228,011	10,803
	Popular Inc.	150,164	10,722
	Old National Bancorp	601,711	10,632
	Bank OZK	230,568	10,613
	FNB Corp.	726,816	10,372
	Valley National Bancorp	889,428	10,300
	First Financial Bankshares Inc.	278,363	10,210
	Cadence Bank	374,878	9,957
	Home BancShares Inc.	400,218	9,645
	Hancock Whitney Corp.	177,008	8,695
	UMB Financial Corp.	94,260	8,546
	Umpqua Holdings Corp.	449,676	7,941
	Independent Bank Corp. (XNGS)	94,364	7,519
	ServisFirst Bancshares Inc.	101,070	7,474
	United Community Banks Inc.	219,994	7,284

		Shares	Market Value• ($000)
	Associated Banc-Corp.	310,403	7,186
	First Hawaiian Inc.	261,994	7,166
	CVB Financial Corp.	287,773	6,886
^*	Texas Capital Bancshares Inc.	102,835	6,811
	Community Bank System Inc.	111,357	6,798
	PacWest Bancorp	242,293	6,724
	BOK Financial Corp.	62,355	6,527
	First Interstate BancSystem Inc. Class A	183,503	6,522
	Ameris Bancorp	135,235	6,474
	Pacific Premier Bancorp Inc.	195,594	6,341
	Cathay General Bancorp	146,962	6,308
	Bank of Hawaii Corp.	82,232	6,156
	Fulton Financial Corp.	346,638	5,962
	Simmons First National Corp. Class A	260,136	5,783
	Atlantic Union Bankshares Corp.	154,003	5,769
	BankUnited Inc.	160,697	5,692
	International Bancshares Corp.	114,691	5,566
	First BanCorp (XNYS)	380,797	5,525
	Eastern Bankshares Inc.	330,261	5,178
	First Merchants Corp.	123,271	5,044
	First Financial Bancorp	197,075	4,856
	Columbia Banking System Inc.	161,011	4,787
	Washington Federal Inc.	133,777	4,692
	Seacoast Banking Corp. of Florida	151,144	4,611
	Independent Bank Group Inc.	76,857	4,524
	Banner Corp.	70,789	4,458
	WesBanco Inc.	122,587	4,432
	Towne Bank	141,058	4,278
	Heartland Financial USA Inc.	86,507	4,277
	Park National Corp.	33,231	4,246
	Renasant Corp.	114,137	4,107
	Enterprise Financial Services Corp.	72,924	3,971
	Lakeland Financial Corp.	52,343	3,749
	NBT Bancorp Inc.	88,435	3,590
	Hilltop Holdings Inc.	108,022	3,583
^*	Bancorp Inc.	103,339	3,575
	Trustmark Corp.	119,324	3,508
	Stock Yards Bancorp Inc.	59,681	3,493
	Northwest Bancshares Inc.	246,832	3,411
	First Commonwealth Financial Corp.	211,287	3,383
	BancFirst Corp.	36,879	3,328
	Hope Bancorp Inc.	246,864	3,162
	TriCo Bancshares	61,320	3,097
	Westamerica BanCorp	55,953	3,084
	Pathward Financial Inc.	59,746	3,048
	City Holding Co.	30,967	3,041

		Shares	Market Value• ($000)
	Sandy Spring Bancorp Inc.	92,151	3,036
	First Bancorp (XNGS)	73,071	3,032
	S&T Bancorp Inc.	80,124	2,985
	OFG Bancorp	98,060	2,983
^*	Triumph Financial Inc.	48,442	2,948
	Veritex Holdings Inc.	110,570	2,948
	FB Financial Corp.	78,166	2,946
	Eagle Bancorp Inc.	65,923	2,888
	OceanFirst Financial Corp.	120,797	2,865
	Stellar Bancorp Inc.	91,339	2,672
	First Busey Corp.	107,181	2,587
	Berkshire Hills Bancorp Inc.	88,755	2,579
	National Bank Holdings Corp. Class A	62,519	2,531
	Lakeland Bancorp Inc.	125,125	2,409
	Live Oak Bancshares Inc.	69,260	2,394
	Brookline Bancorp Inc.	182,191	2,361
	Southside Bancshares Inc.	61,607	2,353
	Origin Bancorp Inc.	60,478	2,293
	German American Bancorp Inc.	56,869	2,235
	Preferred Bank	30,704	2,162
^*	Nicolet Bankshares Inc.	28,925	2,154
	Dime Community Bancshares Inc.	66,690	2,043
	Heritage Financial Corp.	73,282	2,042
	Banc of California Inc.	115,008	2,018
	Tompkins Financial Corp.	26,984	2,018
^*	Customers Bancorp Inc.	63,550	1,957
	1st Source Corp.	38,099	1,898
	Premier Financial Corp.	73,403	1,822
	QCR Holdings Inc.	33,811	1,809
	Peoples Bancorp Inc.	57,912	1,802
	ConnectOne Bancorp Inc.	71,994	1,746
	Univest Financial Corp.	61,456	1,733
	First Foundation Inc.	104,193	1,570
	Heritage Commerce Corp.	126,464	1,531
	Washington Trust Bancorp Inc.	35,857	1,506
	Hanmi Financial Corp.	63,621	1,503
	Amerant Bancorp Inc.	52,371	1,487
	First Bancorp Inc. (XNMS)	47,053	1,473
	Community Trust Bancorp Inc.	32,317	1,382
^*	CrossFirst Bankshares Inc.	92,969	1,316
	Cambridge Bancorp	16,222	1,290
	Peapack-Gladstone Financial Corp.	33,819	1,256
	Horizon Bancorp Inc.	81,883	1,246
	Camden National Corp.	30,251	1,245
	Central Pacific Financial Corp.	55,183	1,238
	HarborOne Bancorp Inc.	88,674	1,212

Financials Index Fund

		Shares	Market Value• ($000)
	Great Southern Bancorp Inc.	20,169	1,174
	First Mid Bancshares Inc.	37,650	1,167
	Flushing Financial Corp.	59,527	1,158
^*	Metropolitan Bank Holding Corp.	20,463	1,142
	Midland States Bancorp Inc.	43,169	1,124
	Byline Bancorp Inc.	45,281	1,116
^*	Coastal Financial Corp.	23,219	1,072
	Mercantile Bank Corp.	30,526	1,056
	Arrow Financial Corp.	33,579	1,023
	First Financial Corp.	23,180	1,019
	Bank of Marin Bancorp	34,146	990
	First Community Bankshares Inc.	31,218	975
	HomeStreet Inc.	38,123	962
^*,1	Silvergate Capital Corp. Class A	64,798	901
	Republic Bancorp Inc. Class A	20,095	894
^*	Carter Bankshares Inc.	51,122	888
	SmartFinancial Inc.	29,893	816
	Amalgamated Financial Corp.	32,753	771
	Capstar Financial Holdings Inc.	38,850	672
			3,441,359
Capital Markets (27.3%)
	Morgan Stanley	2,615,437	252,390
	Goldman Sachs Group Inc.	698,723	245,706
	S&P Global Inc.	687,092	234,436
	Charles Schwab Corp.	2,997,415	233,558
	BlackRock Inc.	309,891	213,648
	CME Group Inc.	742,269	137,587
	Blackstone Inc.	1,448,048	131,483
	Intercontinental Exchange Inc.	1,152,508	117,325
	Moody's Corp.	340,196	98,708
	MSCI Inc. Class A	164,977	86,143
	Bank of New York Mellon Corp.	1,584,450	80,617
	Ameriprise Financial Inc.	219,457	75,245
	State Street Corp.	757,131	67,142
	KKR & Co. Inc.	1,154,829	65,075
	T Rowe Price Group Inc.	461,123	51,775
	Raymond James Financial Inc.	399,676	43,349
	LPL Financial Holdings Inc.	164,239	40,987
	Nasdaq Inc.	709,540	39,777
	Northern Trust Corp.	408,584	38,926
	FactSet Research Systems Inc.	78,609	32,587
	Cboe Global Markets Inc.	218,886	27,617
	MarketAxess Holdings Inc.	77,657	26,516
	Ares Management Corp. Class A	321,999	25,963
	Franklin Resources Inc.	619,668	18,262
	Interactive Brokers Group Inc. Class A	201,118	17,318
^*,1	Coinbase Global Inc. Class A	258,331	16,748
	Tradeweb Markets Inc. Class A	229,194	16,247
	Stifel Financial Corp.	219,304	14,656
	SEI Investments Co.	237,176	14,290
	Jefferies Financial Group Inc.	377,940	14,282

		Shares	Market Value• ($000)
	Carlyle Group Inc.	412,698	14,197
	Invesco Ltd.	703,622	12,426
	Affiliated Managers Group Inc.	77,698	12,386
	Morningstar Inc.	52,641	10,914
	Evercore Inc. Class A	75,830	9,947
	Houlihan Lokey Inc. Class A	103,300	9,886
	Janus Henderson Group plc	289,661	7,954
	Federated Hermes Inc.	174,539	6,868
¹	Blue Owl Capital Inc. Class A	542,908	6,699
^*	Focus Financial Partners Inc. Class A	122,334	6,344
	Hamilton Lane Inc. Class A	74,259	5,777
	Moelis & Co. Class A	132,771	5,687
	Piper Sandler Cos.	36,809	5,558
^*	Robinhood Markets Inc. Class A	547,968	5,518
	Artisan Partners Asset Management Inc. Class A	141,458	4,664
	Cohen & Steers Inc.	55,657	4,027
	PJT Partners Inc. Class A	47,865	3,776
^*	StoneX Group Inc.	35,115	3,541
	Virtu Financial Inc. Class A	173,229	3,184
	Virtus Investment Partners Inc.	14,898	3,135
	BGC Partners Inc. Class A	640,489	3,113
	StepStone Group Inc. Class A	102,051	2,919
^*,1	Freedom Holding Corp.	37,440	2,724
	TPG Inc.	81,466	2,690
^*	Avantax Inc.	89,041	2,546
^*	Donnelley Financial Solutions Inc.	52,980	2,242
¹	Cowen Inc. Class A	55,420	2,161
	Brightsphere Investment Group Inc.	69,957	1,754
^*	Open Lending Corp. Class A	218,992	1,550
	WisdomTree Inc.	234,762	1,401
¹	B Riley Financial Inc.	31,986	1,272
	Victory Capital Holdings Inc. Class A	34,687	1,178
	Diamond Hill Investment Group Inc.	6,184	1,080
	Perella Weinberg Partners Class A	87,834	888
	P10 Inc. Class A	81,048	873
	Bridge Investment Group Holdings Inc. Class A	54,530	741
	Associated Capital Group Inc. Class A	6,612	238
			2,650,221
Consumer Finance (5.1%)
	American Express Co.	1,310,703	228,049
	Capital One Financial Corp.	787,579	85,909
	Discover Financial Services	563,700	63,134
	Synchrony Financial	929,553	33,194
	Ally Financial Inc.	616,295	18,520
	OneMain Holdings Inc.	238,990	10,298
^*,1	SoFi Technologies Inc.	1,244,432	8,213
	SLM Corp.	516,863	7,433
	FirstCash Holdings Inc.	81,656	7,206

		Shares	Market Value• ($000)
^*,1	Credit Acceptance Corp.	13,247	5,886
	Navient Corp.	279,462	5,044
	Bread Financial Holdings Inc.	103,795	4,263
^*	PRA Group Inc.	81,071	3,450
^*	Enova International Inc.	65,768	3,206
^*,1	Upstart Holdings Inc.	151,039	2,796
	Nelnet Inc. Class A	29,773	2,795
^*	PROG Holdings Inc.	104,148	2,575
^*	Encore Capital Group Inc.	48,056	2,484
^*	LendingClub Corp.	216,135	2,032
^*	Green Dot Corp. Class A	95,315	1,804
^*	LendingTree Inc.	22,530	742
^*,1	World Acceptance Corp.	7,142	667
^*	NerdWallet Inc. Class A	28,870	596
	Curo Group Holdings Corp.	36,212	106
			500,402
Diversified Financial Services (9.6%)
^*	Berkshire Hathaway Inc. Class B	2,686,490	819,863
	Apollo Global Management Inc.	826,590	58,605
	Equitable Holdings Inc.	763,737	23,996
	Voya Financial Inc.	200,576	14,941
	Jackson Financial Inc. Class A	102,352	4,645
^*	Cannae Holdings Inc.	145,071	3,276
	Compass Diversified Holdings	133,625	2,909
	A-Mark Precious Metals Inc.	37,367	1,095
			929,330
Insurance (20.4%)
	Chubb Ltd.	856,402	180,718
	Progressive Corp.	1,207,160	173,252
	Marsh & McLennan Cos. Inc.	1,023,405	165,935
	Aon plc Class A (XNYS)	426,822	129,775
	MetLife Inc.	1,376,039	98,703
	American International Group Inc.	1,533,100	93,688
	Travelers Cos. Inc.	483,570	89,518
	Aflac Inc.	1,218,761	83,059
	Arthur J Gallagher & Co.	434,989	81,495
	Prudential Financial Inc.	759,387	75,939
	Allstate Corp.	546,997	70,442
	Willis Towers Watson plc	223,321	52,338
	Hartford Financial Services Group Inc.	656,253	51,371
	Principal Financial Group Inc.	504,819	45,212
	Cincinnati Financial Corp	308,138	37,192
^*	Markel Corp.	27,777	36,940
^*	Arch Capital Group Ltd.	488,127	34,169
	Everest Re Group Ltd.	80,716	30,993
	W R Berkley Corp.	438,268	29,009
	Brown & Brown Inc.	496,783	27,855
	Loews Corp.	416,484	25,443
	Globe Life Inc.	190,356	23,164
	Fidelity National Financial Inc.	533,526	21,266
	American Financial Group Inc.	148,975	19,979
	Reinsurance Group of America Inc.	137,850	19,915
	RenaissanceRe Holdings Ltd.	90,415	19,430
	Unum Group	409,528	18,244

Financials Index Fund

		Shares	Market Value• ($000)
	Old Republic International Corp.	596,694	15,735
	Primerica Inc.	76,089	14,605
	Kinsale Capital Group Inc.	45,241	14,418
	Assurant Inc.	108,910	13,874
	Selective Insurance Group Inc.	123,988	12,588
	Erie Indemnity Co. Class A	52,373	12,328
	First American Financial Corp.	213,085	12,099
	RLI Corp.	83,806	11,558
	Lincoln National Corp.	349,275	11,079
	Hanover Insurance Group Inc.	73,583	10,263
	Axis Capital Holdings Ltd.	166,185	10,091
^*	Brighthouse Financial Inc.	142,664	8,250
	Kemper Corp.	132,466	8,160
	White Mountains Insurance Group Ltd.	5,302	7,654
^*	Ryan Specialty Holdings Inc.	174,831	7,364
	Assured Guaranty Ltd.	117,573	7,338
^*	Genworth Financial Inc. Class A	1,030,812	6,422
	American Equity Investment Life Holding Co.	150,343	6,262
	CNO Financial Group Inc.	236,638	6,063
^*	Enstar Group Ltd.	23,170	5,665
^*,1	Trupanion Inc.	72,381	4,298
^*	BRP Group Inc. Class A	128,022	3,679
	Horace Mann Educators Corp.	85,773	3,170
^*	Palomar Holdings Inc.	51,853	3,111
	Safety Insurance Group Inc.	31,037	2,504
	Employers Holdings Inc.	55,950	2,485
	Stewart Information Services Corp.	55,330	2,351
	ProAssurance Corp.	110,409	2,196
	AMERISAFE Inc.	40,172	2,191
	Argo Group International Holdings Ltd.	73,644	2,139
^*	Goosehead Insurance Inc. Class A	41,494	1,936
	Mercury General Corp.	56,583	1,927
	James River Group Holdings Ltd.	78,428	1,890
^*,1	Lemonade Inc.	90,443	1,474
	National Western Life Group Inc. Class A	4,868	1,313
	United Fire Group Inc.	45,841	1,308
^*	MBIA Inc.	92,952	1,282
^*	SiriusPoint Ltd.	178,476	1,267
¹	HCI Group Inc.	15,545	816

		Shares	Market Value• ($000)
	Donegal Group Inc. Class A	34,520	531
^*,1	Hippo Holdings Inc.	29,055	500
^*	Oscar Health Inc. Class A	84,583	469
^*,1	Hagerty Inc. Class A	50,742	456
			1,980,153
Mortgage Real Estate Investment Trusts (REITs) (1.1%)
¹	Annaly Capital Management Inc.	966,198	19,981
	AGNC Investment Corp.	1,180,209	12,829
	Starwood Property Trust Inc.	636,915	12,203
	Rithm Capital Corp.	979,675	8,915
	Blackstone Mortgage Trust Inc. Class A	336,109	7,116
	Hannon Armstrong Sustainable Infrastructure Capital Inc.	183,644	5,768
	Arbor Realty Trust Inc.	316,488	4,773
	Two Harbors Investment Corp.	197,288	3,269
	Apollo Commercial Real Estate Finance Inc.	279,659	3,213
	Chimera Investment Corp.	475,486	3,086
	Ladder Capital Corp. Class A	237,973	2,689
	Franklin BSP Realty Trust Inc. REIT	171,952	2,409
	PennyMac Mortgage Investment Trust	183,099	2,386
	Ready Capital Corp.	205,760	2,317
	Claros Mortgage Trust Inc.	159,424	2,222
	MFA Financial Inc. REIT	190,465	2,040
	New York Mortgage Trust Inc.	754,327	2,014
	Redwood Trust Inc.	235,388	1,791
	Ellington Financial Inc.	119,679	1,540
	KKR Real Estate Finance Trust Inc.	104,265	1,512
	ARMOUR Residential REIT Inc.	274,960	1,493
	Brightspire Capital Inc. Class A	198,137	1,464
	Broadmark Realty Capital Inc.	272,273	1,389
	Dynex Capital Inc.	92,366	1,222
	Ares Commercial Real Estate Corp.	104,850	1,186
	Invesco Mortgage Capital REIT	74,061	928
	TPG RE Finance Trust Inc.	109,118	926
	Orchid Island Capital Inc.	69,561	790
	Granite Point Mortgage Trust Inc.	108,455	650
			112,121

		Shares	Market Value• ($000)
Thrifts & Mortgage Finance (0.9%)
	New York Community Bancorp Inc.	1,407,773	12,501
	Essent Group Ltd.	222,320	9,549
	MGIC Investment Corp.	613,515	8,442
	Radian Group Inc.	324,430	6,927
^*	Mr Cooper Group Inc.	137,850	6,400
	WSFS Financial Corp.	127,148	6,346
	Walker & Dunlop Inc.	64,792	5,652
	PennyMac Financial Services Inc.	87,850	5,312
^*	Axos Financial Inc.	111,495	5,284
^*	NMI Holdings Inc. Class A	163,981	3,827
	Provident Financial Services Inc.	149,232	3,485
	Federal Agricultural Mortgage Corp. Class C	19,084	2,707
	Capitol Federal Financial Inc.	272,453	2,286
¹	Rocket Cos. Inc. Class A	251,633	1,978
^*	Columbia Financial Inc.	80,935	1,708
	TrustCo Bank Corp. NY	38,036	1,425
	Northfield Bancorp Inc.	90,167	1,326
	Kearny Financial Corp.	121,588	1,221
	Merchants Bancorp	35,311	1,068
	Hingham Institution for Savings	2,734	778
	Southern Missouri Bancorp Inc.	16,059	743
			88,965
Total Common Stocks (Cost $9,346,132)			9,702,551
Temporary Cash Investments (0.4%)
Money Market Fund (0.4%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $39,958)	399,684	39,964
Total Investments (100.2%) (Cost $9,386,090)			9,742,515
Other Assets and Liabilities—Net (-0.2%)			(20,659)
Net Assets (100.0%)			9,721,856
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 $31,224,000.
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 $31,931,000 was received for securities on loan.

REIT—Real Estate Investment Trust.

Financials Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $9,346,132)	9,702,551
Affiliated Issuers (Cost $39,958)	39,964
Total Investments in Securities	9,742,515
Investment in Vanguard	358
Cash	1,041
Receivables for Investment Securities Sold	46,022
Receivables for Accrued Income	10,924
Receivables for Capital Shares Issued	406
Total Assets	9,801,266
Liabilities
Payables for Investment Securities Purchased	34,164
Collateral for Securities on Loan	31,931
Payables for Capital Shares Redeemed	12,901
Payables to Vanguard	351
Unrealized Depreciation—Over-the-Counter Swap Contracts	63
Total Liabilities	79,410
Net Assets	9,721,856
1 Includes $31,224,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	9,370,874
Total Distributable Earnings (Loss)	350,982
Net Assets	9,721,856

ETF Shares—Net Assets
Applicable to 102,542,620 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	8,959,469
Net Asset Value Per Share—ETF Shares	$87.37

Admiral Shares—Net Assets
Applicable to 17,410,595 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	762,387
Net Asset Value Per Share—Admiral Shares	$43.79

See accompanying Notes, which are an integral part of the Financial Statements.

Financials Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	111,446
Interest¹	140
Securities Lending—Net	1,056
Total Income	112,642
Expenses
The Vanguard Group—Note B
Investment Advisory Services	116
Management and Administrative— ETF Shares	3,822
Management and Administrative— Admiral Shares	329
Marketing and Distribution— ETF Shares	226
Marketing and Distribution— Admiral Shares	20
Shareholders’ Reports—ETF Shares	202
Shareholders’ Reports—Admiral Shares	7
Trustees’ Fees and Expenses	2
Other Expenses	5
Total Expenses	4,729
Net Investment Income	107,913
Realized Net Gain (Loss)
Investment Securities Sold^1,2	205,520
Swap Contracts	6,424
Realized Net Gain (Loss)	211,944
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	496,919
Swap Contracts	(63)
Change in Unrealized Appreciation (Depreciation)	496,856
Net Increase (Decrease) in Net Assets Resulting from Operations	816,713

1	Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $140,000, $3,000, less than $1,000, and $3,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $231,027,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	107,913	235,116
Realized Net Gain (Loss)	211,944	983,234
Change in Unrealized Appreciation (Depreciation)	496,856	(2,794,528)
Net Increase (Decrease) in Net Assets Resulting from Operations	816,713	(1,576,178)
Distributions
ETF Shares	(114,470)	(223,491)
Admiral Shares	(9,546)	(16,712)
Total Distributions	(124,016)	(240,203)
Capital Share Transactions
ETF Shares	(356,455)	(585,784)
Admiral Shares	(11,921)	31,828
Net Increase (Decrease) from Capital Share Transactions	(368,376)	(553,956)
Total Increase (Decrease)	324,321	(2,370,337)
Net Assets
Beginning of Period	9,397,535	11,767,872
End of Period	9,721,856	9,397,535

See accompanying Notes, which are an integral part of the Financial Statements.

Financials Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$81.31	$94.79	$61.18	$67.31	$71.60	$62.26
Investment Operations
Net Investment Income¹	.948	1.852	1.676	1.652	1.539	1.298
Net Realized and Unrealized Gain (Loss) on Investments	6.200	(13.457)	33.519	(6.081)	(4.338)	9.307
Total from Investment Operations	7.148	(11.605)	35.195	(4.429)	(2.799)	10.605
Distributions
Dividends from Net Investment Income	(1.088)	(1.875)	(1.585)	(1.701)	(1.491)	(1.265)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.088)	(1.875)	(1.585)	(1.701)	(1.491)	(1.265)
Net Asset Value, End of Period	$87.37	$81.31	$94.79	$61.18	$67.31	$71.60
Total Return	8.93%	-12.43%	58.26%	-6.73%	-3.85%	17.15%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$8,959	$8,676	$10,946	$6,140	$7,222	$8,512
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.30%	2.03%	2.09%	2.53%	2.30%	1.87%
Portfolio Turnover Rate²	2%	6%	4%	5%	5%	3%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$40.75	$47.51	$30.66	$33.73	$35.88	$31.20
Investment Operations
Net Investment Income¹	.475	.931	.841	.828	.771	.651
Net Realized and Unrealized Gain (Loss) on Investments	3.110	(6.751)	16.803	(3.046)	(2.174)	4.663
Total from Investment Operations	3.585	(5.820)	17.644	(2.218)	(1.403)	5.314
Distributions
Dividends from Net Investment Income	(.545)	(.940)	(.794)	(.852)	(.747)	(.634)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.545)	(.940)	(.794)	(.852)	(.747)	(.634)
Net Asset Value, End of Period	$43.79	$40.75	$47.51	$30.66	$33.73	$35.88
Total Return²	8.94%	-12.43%	58.32%	-6.70%	-3.87%	17.16%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$762	$721	$822	$432	$490	$690
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.30%	2.05%	2.09%	2.53%	2.30%	1.87%
Portfolio Turnover Rate³	2%	6%	4%	5%	5%	3%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Financials Index Fund

Notes to Financial Statements

Vanguard Financials 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Financials Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Financials Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $358,000, representing less than 0.01% of the fund’s net assets and 0.14% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	9,702,551	—	—	9,702,551
Temporary Cash Investments	39,964	—	—	39,964
Total	9,742,515	—	—	9,742,515
Derivative Financial Instruments
Liabilities
Swap Contracts	—	63	—	63

D.	As of February 28, 2023, 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	9,416,103
Gross Unrealized Appreciation	988,183
Gross Unrealized Depreciation	(661,771)
Net Unrealized Appreciation (Depreciation)	326,412

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $216,981,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

Financials Index Fund

During the six months ended February 28, 2023, the fund purchased $836,545,000 of investment securities and sold $1,212,682,000 of investment securities, other than temporary cash investments. Purchases and sales include $637,086,000 and $1,017,208,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $2,320,000 and sales were $1,016,000, resulting in net realized gain of $125,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	666,240	8,210	2,918,740	30,807
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(1,022,695)	(12,375)	(3,504,524)	(39,575)
Net Increase (Decrease)—ETF Shares	(356,455)	(4,165)	(585,784)	(8,768)
Admiral Shares
Issued	79,008	1,873	407,610	8,635
Issued in Lieu of Cash Distributions	7,855	197	14,052	311
Redeemed	(98,784)	(2,360)	(389,834)	(8,546)
Net Increase (Decrease)—Admiral Shares	(11,921)	(290)	31,828	400

At February 28, 2023, one shareholder was the record or beneficial owner of 26% of the fund’s net assets. If this shareholder were to redeem its investment in the fund, the redemption might result in an increase in the fund’s expense ratio, cause the fund to incur higher transaction costs, or lead to the realization of taxable capital gains.

G.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Health Care Index Fund

Fund Allocation

As of February 28, 2023

Biotechnology	19.1%
Health Care Equipment & Supplies	19.6
Health Care Providers & Services	21.5
Health Care Technology	0.8
Life Sciences Tools & Services	12.3
Other	0.0
Pharmaceuticals	26.7

Health Care Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.9%)
Biotechnology (19.0%)
	AbbVie Inc.	6,173,106	950,041
	Amgen Inc.	1,862,547	431,478
	Gilead Sciences Inc.	4,178,007	336,455
^*	Regeneron Pharmaceuticals Inc.	373,787	284,235
^*	Vertex Pharmaceuticals Inc.	895,989	260,097
^*	Moderna Inc.	1,139,928	158,233
^*	Biogen Inc.	502,646	135,644
^*	Seagen Inc.	486,042	87,337
^*	Horizon Therapeutics plc	751,497	82,281
^*	Alnylam Pharmaceuticals Inc.	404,455	77,433
^*	BioMarin Pharmaceutical Inc.	648,664	64,600
^*	Incyte Corp.	659,848	50,795
^*	United Therapeutics Corp.	159,055	39,134
^*	Exact Sciences Corp.	620,275	38,662
^*	Neurocrine Biosciences Inc.	335,508	34,591
^*	Sarepta Therapeutics Inc.	275,796	33,683
^*	Halozyme Therapeutics Inc.	472,028	22,653
^*	Apellis Pharmaceuticals Inc.	308,793	20,220
^*	Exelixis Inc.	1,125,768	19,228
^*	Karuna Therapeutics Inc.	95,959	19,136
^*	Natera Inc.	361,626	17,557
^*	Ionis Pharmaceuticals Inc.	446,285	16,022
^*	Alkermes plc	573,330	15,331
^*	Cytokinetics Inc.	313,919	13,611
^*,1	CRISPR Therapeutics AG	259,670	12,807
^*	Arrowhead Pharmaceuticals Inc.	351,831	11,364
^*	Madrigal Pharmaceuticals Inc.	41,788	11,325
^*	Ultragenyx Pharmaceutical Inc.	232,538	10,346
^*	Prometheus Biosciences Inc.	81,345	9,956
^*	Intellia Therapeutics Inc.	247,310	9,934
^*	PTC Therapeutics Inc.	225,909	9,865
^*	Amicus Therapeutics Inc.	735,360	9,699
^*	Insmed Inc.	473,100	9,642
^*	Denali Therapeutics Inc.	331,935	9,012
^*	Blueprint Medicines Corp.	208,635	8,840
^*	ACADIA Pharmaceuticals Inc.	424,139	8,775
^*	IVERIC bio Inc.	398,698	8,285
^*	Vaxcyte Inc.	192,925	7,904
^*	Beam Therapeutics Inc.	196,309	7,899
^*	Sage Therapeutics Inc.	186,456	7,764
^*	TG Therapeutics Inc.	481,896	7,720

		Shares	Market Value• ($000)
^*	FibroGen Inc.	310,517	6,893
^*	Prothena Corp. plc	118,241	6,593
^*	Xenon Pharmaceuticals Inc.	163,827	6,465
^*	Mirati Therapeutics Inc.	140,721	6,451
^*	Xencor Inc.	199,175	6,399
^*	Veracyte Inc.	250,466	6,164
^*	Vir Biotechnology Inc.	256,316	5,844
^*	Cerevel Therapeutics Holdings Inc.	218,910	5,843
^*	REVOLUTION Medicines Inc.	216,989	5,807
^*	BioCryst Pharmaceuticals Inc.	651,890	5,769
^*	Celldex Therapeutics Inc.	131,962	5,647
^*	Ironwood Pharmaceuticals Inc. Class A	479,852	5,408
^*	Myriad Genetics Inc.	283,854	5,370
^*	Catalyst Pharmaceuticals Inc.	345,017	5,265
^*	Krystal Biotech Inc.	62,818	5,145
^*	Akero Therapeutics Inc.	106,082	4,828
^*	Syndax Pharmaceuticals Inc.	186,744	4,734
^*	MannKind Corp.	873,580	4,612
^*	Vericel Corp.	148,681	4,521
^*	Relay Therapeutics Inc.	274,440	4,432
^*	Avidity Biosciences Inc.	186,569	4,422
^*	Agios Pharmaceuticals Inc.	173,239	4,385
^*	Dynavax Technologies Corp.	424,129	4,368
^*	Travere Thrapeutics Inc.	189,646	4,203
^*,1	Myovant Sciences Ltd.	152,529	4,112
^*	Rocket Pharmaceuticals Inc.	206,207	3,961
^*	Kymera Therapeutics Inc.	124,567	3,909
^*	Aurinia Pharmaceuticals Inc.	423,053	3,845
^*,1	Rhythm Pharmaceuticals Inc.	157,371	3,826
^*	SpringWorks Therapeutics Inc.	119,758	3,820
^*	Twist Bioscience Corp.	188,148	3,661
^*	Avid Bioservices Inc.	218,563	3,597
^*	Viridian Therapeutics Inc.	105,682	3,462
^*	Enanta Pharmaceuticals Inc.	69,192	3,356
^*	Chinook Therapeutics Inc.	145,010	3,164
^*	Morphic Holding Inc.	74,220	3,156
^*	CareDx Inc.	185,430	3,119
^*	Keros Therapeutics Inc.	57,691	3,070
^*	UniQure NV	145,881	3,058
^*	Zentalis Pharmaceuticals Inc.	159,968	3,028
^*	Iovance Biotherapeutics Inc.	411,926	3,003

		Shares	Market Value• ($000)
^*	Rapt Therapeutics Inc.	101,532	2,990
^*	REGENXBIO Inc.	129,392	2,879
^*	Replimune Group Inc.	126,282	2,766
^*	Arcus Biosciences Inc.	150,897	2,748
^*	ImmunoGen Inc.	693,350	2,690
^*	Bridgebio Pharma Inc.	234,365	2,676
^*	Deciphera Pharmaceuticals Inc.	181,443	2,631
^*,1	Anavex Life Sciences Corp.	273,363	2,602
^*	Crinetics Pharmaceuticals Inc.	131,413	2,581
^*,1	Novavax Inc.	274,184	2,539
^*	Intercept Pharmaceuticals Inc.	122,934	2,481
^*	Nuvalent Inc. Class A	80,103	2,426
^*	Arcutis Biotherapeutics Inc.	149,855	2,425
^*	ADMA Biologics Inc.	681,035	2,418
^*	Kura Oncology Inc.	202,492	2,414
^*	Immunovant Inc.	134,436	2,349
^*,1	Verve Therapeutics Inc.	118,415	2,250
^*	Inhibrx Inc.	91,398	2,199
^*	Editas Medicine Inc. Class A	238,241	2,154
^*	Altimmune Inc.	170,702	2,149
^*	Protagonist Therapeutics Inc.	128,529	2,085
^*,1	Merus NV	103,771	1,979
^*	Agenus Inc.	959,301	1,976
^*	Emergent BioSolutions Inc.	156,534	1,938
^*	Allogene Therapeutics Inc.	298,740	1,897
^*	Seres Therapeutics Inc.	347,000	1,752
^*	2seventy bio Inc.	125,917	1,699
^*	Point Biopharma Global Inc.	224,050	1,678
^*	Fate Therapeutics Inc.	270,478	1,655
^*	Alector Inc.	188,985	1,614
^*	Cogent Biosciences Inc.	121,972	1,614
^*	Recursion Pharmaceuticals Inc. Class A	190,650	1,554
^*	Arcellx Inc.	53,356	1,494
^*	Coherus Biosciences Inc.	220,583	1,493
^*	Sangamo Therapeutics Inc.	487,206	1,486
^*	AnaptysBio Inc.	59,381	1,479
^*	Kiniksa Pharmaceuticals Ltd. Class A	109,998	1,415
^*	Arcturus Therapeutics Holdings Inc.	82,250	1,337
^*	MiMedx Group Inc.	261,614	1,258
^*	Vanda Pharmaceuticals Inc.	193,326	1,245
^*	iTeos Therapeutics Inc.	66,977	1,186
^*	EQRx Inc.	514,548	1,163
^*	Nurix Therapeutics Inc.	122,941	1,159

Health Care Index Fund

		Shares	Market Value• ($000)
^*	Eagle Pharmaceuticals Inc.	41,289	1,156
^*	Atara Biotherapeutics Inc.	282,990	1,146
^*,1	Sana Biotechnology Inc.	300,700	1,104
^*	Inovio Pharmaceuticals Inc.	862,503	1,087
^*	MacroGenics Inc.	171,197	1,043
^*,1	ImmunityBio Inc.	414,456	1,011
^*,1	Heron Therapeutics Inc.	416,314	987
^*	MeiraGTx Holdings plc	118,496	915
^*	Rigel Pharmaceuticals Inc.	589,508	890
^*	Tango Therapeutics Inc.	168,859	883
^*	Erasca Inc.	239,428	862
^*	IGM Biosciences Inc.	36,289	763
^*,1	Ocugen Inc.	742,872	740
^*,1	Aerovate Therapeutics Inc.	29,987	737
^*,1	Janux Therapeutics Inc.	43,660	726
^*,1	Repare Therapeutics Inc.	64,763	664
^*,1	HilleVax Inc.	35,618	600
^*,1	Humacyte Inc.	195,261	597
^*	Cullinan Oncology Inc.	48,976	553
^*	Adicet Bio Inc.	68,526	540
^*	PMV Pharmaceuticals Inc.	70,236	506
^*	Organogenesis Holdings Inc. Class A	199,868	490
^*	Entrada Therapeutics Inc.	38,323	489
^*	Stoke Therapeutics Inc.	54,523	485
^*	Y-mAbs Therapeutics Inc.	113,064	430
^*	ALX Oncology Holdings Inc.	62,471	414
^*,1	Foghorn Therapeutics Inc.	71,665	411
^*,2	PDL BioPharma Inc.	311,327	392
^*,1	Monte Rosa Therapeutics Inc.	64,038	389
^*	Gossamer Bio Inc.	208,937	361
^*	Vaxart Inc.	432,764	337
^*	Century Therapeutics Inc.	72,407	327
^*	Geron Corp. Warrant Exp. 12/31/25	152,449	113
^*,2	Progenics Pharmaceuticals Inc. CVR	215,826	—
^*	Advaxis Inc. Warrants Exp. 9/11/24	7,710	—
^*,2	Prevail Therapeutics Inc. CVR	78	—
			3,666,980
Health Care Equipment & Supplies (19.6%)
	Abbott Laboratories	6,086,141	619,082
	Medtronic plc	4,643,008	384,441
	Stryker Corp.	1,188,882	312,533
^*	Intuitive Surgical Inc.	1,233,579	282,971
^*	Boston Scientific Corp.	4,999,292	233,567
	Becton Dickinson and Co.	989,114	231,997
^*	Edwards Lifesciences Corp.	2,158,075	173,596
^*	DexCom Inc.	1,348,364	149,682
^*	IDEXX Laboratories Inc.	289,102	136,815
	ResMed Inc.	511,289	108,905
^*	GE Healthcare Inc.	1,269,749	96,501
	Zimmer Biomet Holdings Inc.	732,395	90,722

		Shares	Market Value• ($000)
^*	Align Technology Inc.	259,045	80,174
	Baxter International Inc.	1,759,671	70,299
^*	Hologic Inc.	857,999	68,331
^*	Insulet Corp.	242,438	67,000
	STERIS plc	348,410	65,512
	Cooper Cos. Inc.	172,242	56,318
	Teleflex Inc.	163,729	39,005
^*	Penumbra Inc.	125,944	32,744
^*	Masimo Corp.	174,329	29,167
	DENTSPLY SIRONA Inc.	749,899	28,549
^*	Inspire Medical Systems Inc.	100,865	26,218
^*	Novocure Ltd.	329,750	25,381
^*	Shockwave Medical Inc.	126,167	24,002
^*	Envista Holdings Corp.	568,567	21,981
^*	Lantheus Holdings Inc.	240,280	17,771
^*	Globus Medical Inc. Class A	270,119	15,759
^*	QuidelOrtho Corp.	172,925	15,034
^*	Integra LifeSciences Holdings Corp.	262,369	14,593
^*	Merit Medical Systems Inc.	198,542	14,013
^*	Haemonetics Corp.	176,616	13,735
^*	Neogen Corp.	754,845	13,353
^*	iRhythm Technologies Inc.	105,121	12,371
^*	ICU Medical Inc.	71,143	12,140
	CONMED Corp.	106,605	10,254
^*	Enovis Corp.	170,073	9,800
^*	LivaNova plc	186,772	8,838
^*	Integer Holdings Corp.	115,509	8,661
^*	Omnicell Inc.	155,880	8,486
^*	TransMedics Group Inc.	105,885	8,478
^*	Inari Medical Inc.	149,866	8,431
^*	Axonics Inc.	138,317	8,311
^*	Tandem Diabetes Care Inc.	224,941	8,066
^*	STAAR Surgical Co.	142,773	7,908
^*	NuVasive Inc.	182,341	7,883
^*	Glaukos Corp.	166,873	7,881
^*	Silk Road Medical Inc.	133,092	7,053
	Embecta Corp.	201,376	6,434
^*	AtriCure Inc.	153,874	5,924
^*	Establishment Labs Holdings Inc.	68,124	4,882
^*	Avanos Medical Inc.	161,756	4,540
^*	Alphatec Holdings Inc.	255,646	3,786
^*	Nevro Corp.	117,252	3,686
	LeMaitre Vascular Inc.	68,855	3,450
	Mesa Laboratories Inc.	18,750	3,310
^*	Outset Medical Inc.	143,317	3,269
^*	Heska Corp.	35,653	2,903
^*	Cardiovascular Systems Inc.	146,048	2,879
	Atrion Corp.	4,978	2,827
^*	Varex Imaging Corp.	140,844	2,491
^*	OrthoPediatrics Corp.	55,921	2,447
^*	Orthofix Medical Inc.	117,078	2,412
^*	Figs Inc. Class A	252,683	2,327
^*	ViewRay Inc.	474,534	2,050
^*	SI-BONE Inc.	101,088	1,999
^*	Artivion Inc.	139,618	1,849
^*	Cutera Inc.	54,649	1,772
^*	Cerus Corp.	614,263	1,757
^*	AngioDynamics Inc.	138,300	1,712
^*	Paragon 28 Inc.	95,152	1,676
^*,1	Senseonics Holdings Inc.	1,594,417	1,658

		Shares	Market Value• ($000)
^*	OraSure Technologies Inc.	243,265	1,535
^*	PROCEPT BioRobotics Corp.	39,224	1,469
^*	Treace Medical Concepts Inc.	57,577	1,236
^*	Inogen Inc.	76,348	1,196
^*	Pulmonx Corp.	98,180	1,103
^*	Surmodics Inc.	47,885	1,046
^*,1	Butterfly Network Inc.	394,323	970
^*	Zimvie Inc.	72,173	821
			3,775,728
Health Care Providers & Services (21.5%)
	UnitedHealth Group Inc.	3,261,456	1,552,257
	Elevance Health Inc.	833,642	391,537
	CVS Health Corp.	4,586,465	383,153
	Cigna Group	1,067,153	311,715
	Humana Inc.	441,884	218,741
	HCA Healthcare Inc.	740,282	180,222
	McKesson Corp.	494,881	173,114
^*	Centene Corp.	1,976,535	135,195
	AmerisourceBergen Corp.	538,392	83,752
	Laboratory Corp. of America Holdings	309,242	74,020
	Cardinal Health Inc.	914,855	69,264
^*	Molina Healthcare Inc.	203,805	56,114
	Quest Diagnostics Inc.	397,445	54,991
^*	Henry Schein Inc.	473,036	37,043
	Universal Health Services Inc. Class B	224,092	29,932
	Chemed Corp.	51,908	27,074
^*	Acadia Healthcare Co. Inc.	317,505	23,022
^*	Tenet Healthcare Corp.	358,705	20,995
	Encompass Health Corp.	347,892	19,663
^*	HealthEquity Inc.	295,125	19,233
	Ensign Group Inc.	183,932	16,458
^*	Option Care Health Inc.	508,137	15,585
^*	DaVita Inc.	188,792	15,530
^*	agilon health Inc.	719,792	15,267
^*	AMN Healthcare Services Inc.	151,263	13,615
^*	Oak Street Health Inc.	381,629	13,510
	Premier Inc. Class A	413,993	13,326
^*	Guardant Health Inc.	339,800	10,496
^*	Amedisys Inc.	113,387	10,426
	Select Medical Holdings Corp.	376,885	10,248
^*	Progyny Inc.	259,400	9,743
	Patterson Cos. Inc.	304,748	8,082
^*	Surgery Partners Inc.	234,891	7,857
^*	Privia Health Group Inc.	279,112	7,796
^*	R1 RCM Inc.	510,608	7,251
^*	Signify Health Inc. Class A	248,882	7,165
^*	NeoGenomics Inc.	419,648	7,071
^*	Addus HomeCare Corp.	56,259	6,112
^*	CorVel Corp.	33,068	5,962
^*	Apollo Medical Holdings Inc.	138,061	4,818
^*	Hims & Hers Health Inc.	415,931	4,688
	US Physical Therapy Inc.	45,506	4,611
^*	ModivCare Inc.	44,423	4,362
^*	Pediatrix Medical Group Inc.	275,333	4,334
^*	RadNet Inc.	179,937	4,244
^*	Owens & Minor Inc.	252,309	3,868

Health Care Index Fund

		Shares	Market Value• ($000)
^*	AdaptHealth Corp. Class A	234,976	3,757
^*	Cross Country Healthcare Inc.	123,659	3,271
^*	Alignment Healthcare Inc.	294,474	2,927
	National HealthCare Corp.	50,435	2,810
^*	Enhabit Inc.	173,991	2,671
^*	DocGo Inc.	287,064	2,627
^*	Community Health Systems Inc.	427,032	2,588
^*	Accolade Inc.	215,679	2,396
^*	23andMe Holding Co. Class A	951,849	2,389
^*	Agiliti Inc.	116,893	2,228
^*,1	Fulgent Genetics Inc.	66,778	2,190
^*	OPKO Health Inc.	1,748,343	1,993
^*	Castle Biosciences Inc.	77,410	1,949
^*	Brookdale Senior Living Inc.	586,516	1,894
^*,1	Invitae Corp.	807,337	1,736
^*	Clover Health Investments Corp. Class A	1,150,009	1,518
^*	Pennant Group Inc.	98,089	1,473
^*,1	CareMax Inc.	232,381	999
^*,1	Cano Health Inc.	597,893	987
^*	PetIQ Inc. Class A	90,436	843
^*	Joint Corp.	50,276	789
^*	Aveanna Healthcare Holdings Inc.	158,477	193
			4,137,690
Health Care Technology (0.8%)
^*	Veeva Systems Inc. Class A	490,382	81,237
^*	Teladoc Health Inc.	565,290	14,975
^*	Doximity Inc. Class A	336,629	11,321
^*	Evolent Health Inc. Class A	300,016	10,504
^*	Certara Inc.	363,034	6,578
^*	Phreesia Inc.	173,494	6,385
^*	Veradigm Inc.	380,444	6,319
^*	Schrodinger Inc.	205,801	4,472
^*	NextGen Healthcare Inc.	200,064	3,623
^*	Health Catalyst Inc.	172,551	2,409
^*	HealthStream Inc.	84,929	2,178
	Simulations Plus Inc.	57,034	2,170
^*	American Well Corp. Class A	711,136	1,984
^*	Definitive Healthcare Corp. Class A	128,180	1,464
^*	GoodRx Holdings Inc. Class A	244,514	1,293
^*	OptimizeRx Corp.	59,560	1,063
^*	Multiplan Corp.	659,927	666
			158,641
Life Sciences Tools & Services (12.3%)
	Thermo Fisher Scientific Inc.	1,369,011	741,675
	Danaher Corp.	2,413,997	597,537
	Agilent Technologies Inc.	1,029,700	146,187
^*	IQVIA Holdings Inc.	648,394	135,171
^*	Mettler-Toledo International Inc.	77,839	111,599
^*	Illumina Inc.	549,105	109,382
	West Pharmaceutical Services Inc.	258,423	81,928
^*	Waters Corp.	207,367	64,468
^*	Avantor Inc.	2,353,470	57,354

		Shares	Market Value• ($000)
	PerkinElmer Inc.	440,915	54,925
	Bio-Techne Corp.	547,929	39,802
^*	Charles River Laboratories International Inc.	177,610	38,957
^*	Bio-Rad Laboratories Inc. Class A	77,757	37,155
^*	Repligen Corp.	184,150	32,110
	Bruker Corp.	359,395	24,769
^*	Medpace Holdings Inc.	86,851	16,839
^*	Syneos Health Inc.	359,738	14,469
^*	10X Genomics Inc. Class A	267,008	12,688
^*	Azenta Inc.	261,293	11,468
^*	Pacific Biosciences of California Inc.	750,303	6,813
^*	Sotera Health Co.	344,628	5,752
^*	Maravai LifeSciences Holdings Inc. Class A	389,861	5,750
^*	CryoPort Inc.	171,192	3,708
^*	Adaptive Biotechnologies Corp.	352,863	3,017
^*	BioLife Solutions Inc.	112,524	2,617
^*	Cytek Biosciences Inc.	234,645	2,417
^*	NanoString Technologies Inc.	153,590	1,499
^*,1	Bionano Genomics Inc.	1,040,257	1,394
^*	Quanterix Corp.	125,071	1,376
^*	OmniAb Inc. (XNMS)	300,347	1,252
^*	SomaLogic Inc.	491,853	1,249
^*	MaxCyte Inc.	245,171	1,113
^*	Codexis Inc.	202,161	977
^*	Quantum-Si Inc.	336,426	612
^*	Seer Inc. Class A	133,690	547
^*	Akoya Biosciences Inc.	46,415	535
^*	Nautilus Biotechnology Inc.	129,576	275
^*,2	OmniAb Inc. 12.5 Earnout	22,076	—
^*,2	OmniAb Inc. 15 Earnout	22,076	—
			2,369,386
Other (0.0%)
	Scilex Holding Co.	219,844	1,712
Pharmaceuticals (26.7%)
	Johnson & Johnson	9,125,948	1,398,643
	Merck & Co. Inc.	8,849,661	940,188
	Eli Lilly & Co.	2,819,159	877,379
	Pfizer Inc.	19,593,387	794,904
	Bristol-Myers Squibb Co.	7,421,183	511,765
	Zoetis Inc.	1,626,845	271,683
	Viatris Inc.	4,232,181	48,247
	Royalty Pharma plc Class A	1,230,925	44,129
^*	Catalent Inc.	596,788	40,713
^*	Jazz Pharmaceuticals plc	219,673	30,842
	Organon & Co.	888,567	21,761
	Perrigo Co. plc	469,576	17,698
^*	Elanco Animal Health Inc. (XNYS)	1,488,970	17,079
^*	Intra-Cellular Therapies Inc.	297,418	14,582
^*	Prestige Consumer Healthcare Inc.	172,850	10,414
^*	Revance Therapeutics Inc.	287,214	9,966
^*,1	Axsome Therapeutics Inc.	113,667	7,751

		Shares	Market Value• ($000)
^*	Supernus Pharmaceuticals Inc.	188,308	7,079
^*	Corcept Therapeutics Inc.	337,751	7,035
^*	Pacira BioSciences Inc.	160,502	6,833
^*,1	Tilray Brands Inc.	2,134,316	6,040
^*	Arvinas Inc.	157,586	4,830
^*	Pliant Therapeutics Inc.	148,616	4,735
^*	Amphastar Pharmaceuticals Inc.	134,644	4,290
^*	Ligand Pharmaceuticals Inc.	59,099	4,263
^*	Harmony Biosciences Holdings Inc.	82,978	3,654
^*,1	Cassava Sciences Inc.	138,375	3,418
^*	DICE Therapeutics Inc.	108,115	3,226
^*	Collegium Pharmaceutical Inc.	110,958	2,944
^*	Reata Pharmaceuticals Inc. Class A	93,849	2,925
^*	Innoviva Inc.	217,231	2,622
^*	Ventyx Biosciences Inc.	59,539	2,575
^*	Aclaris Therapeutics Inc.	162,398	2,023
^*,1	Theravance Biopharma Inc.	175,498	1,895
^*	Cara Therapeutics Inc.	159,636	1,622
	Phibro Animal Health Corp. Class A	70,305	1,105
	SIGA Technologies Inc.	154,631	1,059
^*	Tarsus Pharmaceuticals Inc.	60,310	934
^*	Atea Pharmaceuticals Inc.	257,588	912
^*	Nektar Therapeutics Class A	656,656	906
^*	Fulcrum Therapeutics Inc.	139,308	841
^*	Nuvation Bio Inc.	412,042	799
^*,1	ATAI Life Sciences NV	445,461	748
^*	Amneal Pharmaceuticals Inc.	333,166	686
^*,1	Phathom Pharmaceuticals Inc.	65,725	563
^*	NGM Biopharmaceuticals Inc.	96,963	460
			5,138,766
Total Common Stocks (Cost $16,364,550)			19,248,903

Health Care Index Fund

		Shares	Market Value• ($000)
Temporary Cash Investments (0.2%)
Money Market Fund (0.2%)
^3,4	Vanguard Market Liquidity Fund, 4.640% (Cost $41,510)	415,230	41,519
Total Investments (100.1%) (Cost $16,406,060)			19,290,422
Other Assets and Liabilities—Net (-0.1%)			(23,583)
Net Assets (100.0%)			19,266,839
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 $37,363,000.
2	Security value determined using significant unobservable inputs.
3	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
4	Collateral of $41,474,000 was received for securities on loan.

CVR—Contingent Value Rights.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Alnylam Pharmaceuticals Inc.	8/31/23	BANA	4,786	(4.569)	—	(20)
Gilead Sciences Inc.	8/31/23	BANA	16,106	(4.569)	—	(60)
					—	(80)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.

See accompanying Notes, which are an integral part of the Financial Statements.

Health Care Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $16,364,550)	19,248,903
Affiliated Issuers (Cost $41,510)	41,519
Total Investments in Securities	19,290,422
Investment in Vanguard	717
Cash Collateral Pledged—Over-the-Counter Swap Contracts	1,640
Receivables for Investment Securities Sold	69,613
Receivables for Accrued Income	30,444
Receivables for Capital Shares Issued	1,952
Total Assets	19,394,788
Liabilities
Due to Custodian	2,941
Payables for Investment Securities Purchased	46,115
Collateral for Securities on Loan	41,474
Payables for Capital Shares Redeemed	36,636
Payables to Vanguard	703
Unrealized Depreciation—Over-the-Counter Swap Contracts	80
Total Liabilities	127,949
Net Assets	19,266,839
1 Includes $37,363,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	16,565,402
Total Distributable Earnings (Loss)	2,701,437
Net Assets	19,266,839

ETF Shares—Net Assets
Applicable to 70,047,333 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	16,461,436
Net Asset Value Per Share—ETF Shares	$235.00

Admiral Shares—Net Assets
Applicable to 23,864,534 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	2,805,403
Net Asset Value Per Share—Admiral Shares	$117.56

See accompanying Notes, which are an integral part of the Financial Statements.

Health Care Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	148,413
Interest¹	175
Securities Lending—Net	905
Total Income	149,493
Expenses
The Vanguard Group—Note B
Investment Advisory Services	237
Management and Administrative— ETF Shares	7,469
Management and Administrative— Admiral Shares	1,303
Marketing and Distribution— ETF Shares	349
Marketing and Distribution— Admiral Shares	63
Custodian Fees	67
Shareholders’ Reports—ETF Shares	228
Shareholders’ Reports—Admiral Shares	15
Trustees’ Fees and Expenses	4
Other Expenses	7
Total Expenses	9,742
Expenses Paid Indirectly	(8)
Net Expenses	9,734
Net Investment Income	139,759
Realized Net Gain (Loss)
Investment Securities Sold^1,2	353,969
Swap Contracts	2,980
Realized Net Gain (Loss)	356,949
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	(78,526)
Swap Contracts	(80)
Change in Unrealized Appreciation (Depreciation)	(78,606)
Net Increase (Decrease) in Net Assets Resulting from Operations	418,102

1	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $175,000, $1,000, and $3,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $366,094,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	139,759	246,701
Realized Net Gain (Loss)	356,949	1,162,200
Change in Unrealized Appreciation (Depreciation)	(78,606)	(3,600,457)
Net Increase (Decrease) in Net Assets Resulting from Operations	418,102	(2,191,556)
Distributions
ETF Shares	(124,506)	(212,391)
Admiral Shares	(21,359)	(36,855)
Total Distributions	(145,865)	(249,246)
Capital Share Transactions
ETF Shares	399,310	1,015,966
Admiral Shares	22,975	131,473
Net Increase (Decrease) from Capital Share Transactions	422,285	1,147,439
Total Increase (Decrease)	694,522	(1,293,363)
Net Assets
Beginning of Period	18,572,317	19,865,680
End of Period	19,266,839	18,572,317

See accompanying Notes, which are an integral part of the Financial Statements.

Health Care Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$231.59	$262.41	$207.65	$169.74	$177.07	$151.13
Investment Operations
Net Investment Income¹	1.720	3.157	2.893	2.702	3.600²	2.194
Net Realized and Unrealized Gain (Loss) on Investments	3.491	(30.771)	54.714	37.758	(7.457)	25.846
Total from Investment Operations	5.211	(27.614)	57.607	40.460	(3.857)	28.040
Distributions
Dividends from Net Investment Income	(1.801)	(3.206)	(2.846)	(2.550)	(3.473)	(2.100)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.801)	(3.206)	(2.846)	(2.550)	(3.473)	(2.100)
Net Asset Value, End of Period	$235.00	$231.59	$262.41	$207.65	$169.74	$177.07
Total Return	2.24%	-10.60%	27.99%	24.05%	-2.22%	18.75%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$16,461	$15,829	$16,894	$11,724	$8,899	$8,594
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.44%	1.27%	1.25%	1.45%	2.12%²	1.38%
Portfolio Turnover Rate⁴	2%	3%	5%	7%	5%	6%
The expense ratio and net investment income ratio for the current period have been annualized.

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 $1.132 and 0.67%, respectively, resulting from a cash payment received in connection with the merger of Cigna Corp. and Express Scripts Holding Co. in December 2018.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
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	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$115.84	$131.26	$103.87	$84.91	$88.57	$75.60
Investment Operations
Net Investment Income¹	.860	1.583	1.450	1.351	1.804²	1.101
Net Realized and Unrealized Gain (Loss) on Investments	1.761	(15.400)	27.365	18.884	(3.727)	12.920
Total from Investment Operations	2.621	(13.817)	28.815	20.235	(1.923)	14.021
Distributions
Dividends from Net Investment Income	(.901)	(1.603)	(1.425)	(1.275)	(1.737)	(1.051)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.901)	(1.603)	(1.425)	(1.275)	(1.737)	(1.051)
Net Asset Value, End of Period	$117.56	$115.84	$131.26	$103.87	$84.91	$88.57
Total Return³	2.25%	-10.59%	28.01%	24.06%	-2.21%	18.74%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$2,805	$2,744	$2,972	$1,676	$1,316	$1,248
Ratio of Total Expenses to Average Net Assets	0.10%⁴	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.44%	1.28%	1.25%	1.45%	2.12%²	1.38%
Portfolio Turnover Rate⁵	2%	3%	5%	7%	5%	6%
The expense ratio and net investment income ratio for the current period have been annualized.

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 $.566 and 0.67%, respectively, resulting from a cash payment received in connection with the merger of Cigna Corp. and Express Scripts Holding Co. in December 2018.
3	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
4	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
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.

Health Care Index Fund

Notes to Financial Statements

Vanguard Health Care 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Health Care Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Health Care Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $717,000, representing less than 0.01% of the fund’s net assets and 0.29% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended February 28, 2023, 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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	19,248,398	113	392	19,248,903
Temporary Cash Investments	41,519	—	—	41,519
Total	19,289,917	113	392	19,290,422
Derivative Financial Instruments
Liabilities
Swap Contracts	—	80	—	80

E.	As of February 28, 2023, 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	16,449,303
Gross Unrealized Appreciation	3,913,970
Gross Unrealized Depreciation	(1,072,851)
Net Unrealized Appreciation (Depreciation)	2,841,119

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $541,854,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023;

Health Care Index Fund

should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended February 28, 2023, the fund purchased $1,439,765,000 of investment securities and sold $1,020,309,000 of investment securities, other than temporary cash investments. Purchases and sales include $995,562,000 and $720,442,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $6,514,000 and sales were $628,000, resulting in net realized gain of $7,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	1,125,896	4,698	3,682,327	14,971
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(726,586)	(3,000)	(2,666,361)	(11,000)
Net Increase (Decrease)—ETF Shares	399,310	1,698	1,015,966	3,971
Admiral Shares
Issued	215,405	1,772	548,361	4,414
Issued in Lieu of Cash Distributions	18,288	153	31,635	257
Redeemed	(210,718)	(1,745)	(448,523)	(3,629)
Net Increase (Decrease)—Admiral Shares	22,975	180	131,473	1,042

H.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Industrials Index Fund

Fund Allocation

As of February 28, 2023

Aerospace & Defense	17.8%
Air Freight & Logistics	5.9
Airlines	2.3
Building Products	6.7
Commercial Services & Supplies	6.9
Construction & Engineering	2.7
Electrical Equipment	7.6
Industrial Conglomerates	7.3
Machinery	21.4
Marine	0.2
Professional Services	5.7
Road & Rail	10.3
Trading Companies & Distributors	5.2

Industrials Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.9%)
Aerospace & Defense (17.8%)
	Raytheon Technologies Corp.	1,554,432	152,474
^*	Boeing Co.	598,794	120,687
	Lockheed Martin Corp.	249,344	118,254
	Northrop Grumman Corp.	154,620	71,761
	General Dynamics Corp.	246,781	56,244
	TransDigm Group Inc.	54,680	40,675
	L3Harris Technologies Inc.	177,432	37,472
	Howmet Aerospace Inc.	393,444	16,595
	Textron Inc.	220,713	16,008
^*	Axon Enterprise Inc.	71,434	14,309
	HEICO Corp. Class A	77,193	10,047
	Huntington Ingalls Industries Inc.	42,172	9,075
	HEICO Corp.	46,747	7,740
	Curtiss-Wright Corp.	40,487	7,077
	Hexcel Corp.	88,934	6,488
	Woodward Inc.	60,033	5,943
	BWX Technologies Inc.	96,398	5,891
^*	Aerojet Rocketdyne Holdings Inc.	76,581	4,315
	Maxar Technologies Inc.	78,773	4,057
	Spirit AeroSystems Holdings Inc. Class A	111,568	3,813
	Moog Inc. Class A	30,295	2,988
^*	Mercury Systems Inc.	54,993	2,878
^*	AeroVironment Inc.	25,211	2,162
^*	AAR Corp.	37,095	2,018
^*	Parsons Corp.	38,238	1,722
^*	Kratos Defense & Security Solutions Inc.	133,050	1,683
^*	Virgin Galactic Holdings Inc.	232,358	1,334
^*	Triumph Group Inc.	68,897	869
	Kaman Corp.	27,033	703
^*	Rocket Lab USA Inc.	151,180	680
^*	Ducommun Inc.	12,229	658
^*	V2X Inc.	12,771	592
	National Presto Industries Inc.	5,557	381
^*	Aersale Corp.	16,176	321
	Cadre Holdings Inc.	13,539	291
^*,1	Astra Space Inc.	121,828	69
			728,274
Air Freight & Logistics (5.9%)
	United Parcel Service Inc. Class B (XNYS)	771,790	140,844
	FedEx Corp.	261,560	53,154
	Expeditors International of Washington Inc.	168,154	17,582
	CH Robinson Worldwide Inc.	124,397	12,435
^*	GXO Logistics Inc.	112,673	5,585
^*	Hub Group Inc. Class A	34,536	3,168
	Forward Air Corp.	28,093	2,899
^*	Atlas Air Worldwide Holdings Inc.	28,470	2,870

		Shares	Market Value• ($000)
^*	Air Transport Services Group Inc.	61,993	1,298
			239,835
Airlines (2.3%)
^*	Delta Air Lines Inc.	679,508	26,052
	Southwest Airlines Co.	627,465	21,070
^*	United Airlines Holdings Inc.	345,417	17,948
^*	American Airlines Group Inc.	686,784	10,975
^*	Alaska Air Group Inc.	134,005	6,410
^*	JetBlue Airways Corp.	342,458	2,842
	Spirit Airlines Inc.	115,360	2,113
^*	Allegiant Travel Co.	16,542	1,696
^*,1	Joby Aviation Inc.	295,972	1,391
^*	SkyWest Inc.	53,828	1,027
^*	Sun Country Airlines Holdings Inc.	36,356	729
^*	Hawaiian Holdings Inc.	54,577	611
^*	Frontier Group Holdings Inc.	45,664	537
^*	Blade Air Mobility Inc.	49,379	230
^*	Wheels Up Experience Inc.	166,511	185
			93,816
Building Products (6.7%)
	Johnson Controls International plc	726,424	45,561
	Trane Technologies plc	243,671	45,072
	Carrier Global Corp.	885,405	39,870
	Carlisle Cos. Inc.	54,642	14,110
^*	Builders FirstSource Inc.	154,514	13,100
	Masco Corp.	238,332	12,496
	Allegion plc	92,803	10,460
	Owens Corning	98,802	9,662
	A O Smith Corp.	134,071	8,799
	Lennox International Inc.	33,694	8,586
	Fortune Brands Innovations Inc.	135,363	8,386
	Advanced Drainage Systems Inc.	70,048	6,215
^*	Trex Co. Inc.	116,118	5,937
	UFP Industries Inc.	65,183	5,575
	Simpson Manufacturing Co. Inc.	45,007	4,855
	Zurn Elkay Water Solutions Corp.	187,657	4,316
	AAON Inc.	44,920	4,086
	Armstrong World Industries Inc.	48,244	3,804
^*	AZEK Co. Inc. Class A	119,262	2,873
^*	Resideo Technologies Inc.	154,256	2,829
	CSW Industrials Inc.	15,537	2,199
^*	Masonite International Corp.	22,465	1,995
^*	Gibraltar Industries Inc.	32,599	1,741
	Griffon Corp.	44,918	1,638
^*	PGT Innovations Inc.	63,955	1,353
	Masterbrand Inc.	137,261	1,337
^*	JELD-WEN Holding Inc.	88,211	1,160

		Shares	Market Value• ($000)
	Apogee Enterprises Inc.	23,687	1,084
	AZZ Inc.	26,302	1,069
^*	Hayward Holdings Inc.	77,127	949
	Quanex Building Products Corp.	35,410	919
^*	American Woodmark Corp.	17,640	899
^*	Janus International Group Inc.	85,933	893
	Insteel Industries Inc.	20,239	602
			274,430
Commercial Services & Supplies (6.9%)
	Waste Management Inc.	433,757	64,959
	Cintas Corp.	96,687	42,394
	Waste Connections Inc. (XTSE)	272,065	36,435
^*	Copart Inc.	453,738	31,970
	Republic Services Inc. Class A	234,056	30,177
	Rollins Inc.	234,395	8,251
	Tetra Tech Inc.	55,944	7,658
^*	Clean Harbors Inc.	54,261	7,166
^*	IAA Inc.	141,351	5,783
	MSA Safety Inc.	39,344	5,286
^*	Stericycle Inc.	97,487	4,648
^*	Casella Waste Systems Inc. Class A	53,708	4,180
	ABM Industries Inc.	69,874	3,383
	Brink's Co.	49,058	3,201
	UniFirst Corp.	15,994	3,137
	Brady Corp. Class A	48,776	2,690
	MillerKnoll Inc.	80,329	1,917
^*	KAR Auction Services Inc.	115,064	1,644
^*	Driven Brands Holdings Inc.	53,308	1,491
^*	ACV Auctions Inc. Class A	118,164	1,446
	HNI Corp.	44,038	1,376
^*	Montrose Environmental Group Inc.	25,070	1,221
^*	CoreCivic Inc.	120,550	1,171
^*	GEO Group Inc.	131,339	1,151
	Matthews International Corp. Class A	28,583	1,091
	Healthcare Services Group Inc.	78,339	1,040
	Deluxe Corp.	45,850	845
	Pitney Bowes Inc.	185,588	805
^*	SP Plus Corp.	21,361	727
	Steelcase Inc. Class A	91,583	721
^*	Harsco Corp.	82,613	699
	VSE Corp.	11,300	649
^*	Cimpress plc	18,274	642
^*	Heritage-Crystal Clean Inc.	16,636	599
	ACCO Brands Corp.	99,898	566
^*	Viad Corp.	21,473	552
^*	Aurora Innovation Inc.	352,601	550
	Interface Inc. Class A	60,931	537
^*	Liquidity Services Inc.	29,960	379

Industrials Index Fund

		Shares	Market Value• ($000)
^*	BrightView Holdings Inc.	33,375	211
			283,348
Construction & Engineering (2.7%)
	Quanta Services Inc.	150,979	24,368
	AECOM	139,606	12,056
^*	WillScot Mobile Mini Holdings Corp.	220,812	11,350
	EMCOR Group Inc.	50,330	8,416
	Valmont Industries Inc.	22,524	7,148
	MDU Resources Group Inc.	214,729	6,839
^*	MasTec Inc.	66,116	6,461
^*	Fluor Corp.	150,110	5,505
	Comfort Systems USA Inc.	37,783	5,495
^*	API Group Corp.	172,829	4,060
	Arcosa Inc.	50,981	3,089
^*	Dycom Industries Inc.	31,289	2,635
^*	MYR Group Inc.	17,615	2,125
	Granite Construction Inc.	46,172	1,995
	Primoris Services Corp.	55,832	1,535
^*	Ameresco Inc. Class A	34,110	1,499
^*	Sterling Infrastructure Inc.	32,116	1,235
^*	Construction Partners Inc. Class A	44,110	1,193
	Argan Inc.	14,879	578
^*	IES Holdings Inc.	9,874	415
^*	Great Lakes Dredge & Dock Corp.	69,892	401
^*	Tutor Perini Corp.	47,586	386
			108,784
Electrical Equipment (7.6%)
	Eaton Corp. plc	420,711	73,595
	Emerson Electric Co.	625,747	51,755
	Rockwell Automation Inc.	121,397	35,804
	AMETEK Inc.	243,061	34,408
	Hubbell Inc. Class B	56,740	14,272
	Regal Rexnord Corp.	69,901	11,019
^*	Plug Power Inc.	554,386	8,244
	Sensata Technologies Holding plc	161,622	8,175
	nVent Electric plc	175,983	8,067
^*	Generac Holdings Inc.	67,053	8,047
	Acuity Brands Inc.	33,981	6,591
^*	Atkore Inc.	41,999	6,133
	Vertiv Holdings Co. Class A	338,929	5,508
^*	Sunrun Inc.	202,661	4,872
^*	Bloom Energy Corp. Class A	189,526	4,111
	EnerSys	43,176	3,916
	Encore Wire Corp.	19,379	3,740
^*	Shoals Technologies Group Inc. Class A	141,576	3,474
^*	Array Technologies Inc.	151,316	2,836
^*,1	ChargePoint Holdings Inc.	233,522	2,653
^*,1	FuelCell Energy Inc.	428,778	1,432
^*,1	SunPower Corp.	92,406	1,388
	GrafTech International Ltd.	217,856	1,231
^*	Vicor Corp.	24,151	1,135
^*,1	FREYR Battery SA	107,199	973
^*	Thermon Group Holdings Inc.	34,971	925
^*,1	Fluence Energy Inc.	42,810	799
^*,1	Enovix Corp.	73,466	677
^*	Stem Inc.	65,467	534
^*	TPI Composites Inc.	44,340	513
^*,1	Blink Charging Co.	53,405	483
^*	SES AI Corp.	111,449	360

		Shares	Market Value• ($000)
^*	Energy Vault Holdings Inc.	71,736	240
^*,1	NuScale Power Corp.	20,425	211
^*,1	ESS Tech Inc.	55,613	101
^*	Heliogen Inc.	108,660	34
			308,256
Industrial Conglomerates (7.3%)
	Honeywell International Inc.	711,022	136,147
	General Electric Co.	1,155,896	97,916
	3M Co.	584,883	63,015
			297,078
Machinery (21.4%)
	Caterpillar Inc.	550,336	131,833
	Deere & Co.	303,205	127,116
	Illinois Tool Works Inc.	324,843	75,740
	Parker-Hannifin Corp.	135,938	47,830
	PACCAR Inc.	551,755	39,837
	Otis Worldwide Corp.	440,678	37,290
	Cummins Inc.	149,170	36,260
	Ingersoll Rand Inc. (XYNS)	427,849	24,845
	Fortive Corp.	355,169	23,676
	Dover Corp.	148,330	22,235
	Xylem Inc.	190,439	19,549
	Westinghouse Air Brake Technologies Corp.	182,551	19,046
	IDEX Corp.	79,697	17,930
	Snap-on Inc.	56,319	14,005
	Stanley Black & Decker Inc.	156,352	13,385
	Graco Inc.	178,267	12,397
	Toro Co.	110,003	12,149
	Nordson Corp.	54,411	11,951
	Lincoln Electric Holdings Inc.	57,942	9,730
	Pentair plc	173,822	9,724
	AGCO Corp.	66,995	9,434
^*	Middleby Corp.	54,091	8,411
	Donaldson Co. Inc.	129,442	8,187
	ITT Inc.	88,288	8,024
^*	RBC Bearings Inc.	30,664	7,047
^*	Evoqua Water Technologies Corp.	128,724	6,251
	Oshkosh Corp.	69,101	6,163
	Crane Holdings Co.	50,418	6,039
^*	Chart Industries Inc.	44,996	6,007
	Timken Co.	69,203	5,913
	Watts Water Technologies Inc. Class A	28,830	5,052
	Flowserve Corp.	138,222	4,795
	Allison Transmission Holdings Inc.	97,808	4,646
	Altra Industrial Motion Corp.	68,896	4,239
	Terex Corp.	71,184	4,215
	Mueller Industries Inc.	53,945	3,990
	Franklin Electric Co. Inc.	41,511	3,967
	John Bean Technologies Corp.	33,572	3,723
	Hillenbrand Inc.	72,795	3,432
	Federal Signal Corp.	64,136	3,384
^*	SPX Technologies Inc.	47,825	3,369
	Albany International Corp. Class A	32,853	3,315
	Esab Corp.	50,903	2,985
	Kadant Inc.	12,328	2,646
	ESCO Technologies Inc.	27,388	2,552
	Helios Technologies Inc.	34,422	2,332
	Kennametal Inc.	80,730	2,287

		Shares	Market Value• ($000)
	Mueller Water Products Inc. Class A	164,167	2,277
	Trinity Industries Inc.	81,470	2,274
	EnPro Industries Inc.	20,934	2,250
	Barnes Group Inc.	50,802	2,141
	Alamo Group Inc.	11,378	2,075
	Lindsay Corp.	11,708	1,762
	Enerpac Tool Group Corp. Class A	59,864	1,612
^*	Gates Industrial Corp. plc	105,270	1,478
	Standex International Corp.	12,647	1,463
	Wabash National Corp.	50,671	1,388
^*	3D Systems Corp.	138,940	1,360
	Tennant Co.	18,761	1,329
^*	Energy Recovery Inc.	52,818	1,166
	Columbus McKinnon Corp.	29,998	1,113
	Greenbrier Cos. Inc.	34,503	1,108
	Astec Industries Inc.	24,151	1,087
^*	Hillman Solutions Corp.	104,036	925
	Shyft Group Inc.	35,432	919
	Douglas Dynamics Inc.	23,989	895
^*	Proto Labs Inc.	28,417	893
^*	Proterra Inc.	192,049	807
^*,1	Nikola Corp.	354,992	788
^*	Manitowoc Co. Inc.	36,870	697
	Gorman-Rupp Co.	21,825	608
^*	CIRCOR International Inc.	20,415	598
	Luxfer Holdings plc	29,352	486
	REV Group Inc.	34,319	401
^*	Blue Bird Corp.	18,564	377
^*,1	Desktop Metal Inc. Class A	242,074	368
	Hyster-Yale Materials Handling Inc.	9,412	366
^*	Hyliion Holdings Corp.	125,665	356
^*,1	Velo3D Inc.	57,391	182
^*,1	Microvast Holdings Inc.	125,465	162
^*	Markforged Holding Corp.	87,849	117
^*,1	Hyzon Motors Inc.	77,597	101
			874,862
Marine (0.2%)
^*	Kirby Corp.	63,225	4,586
	Matson Inc.	39,899	2,654
	Genco Shipping & Trading Ltd.	40,123	764
	Eagle Bulk Shipping Inc.	10,279	671
			8,675
Professional Services (5.6%)
^*	CoStar Group Inc.	430,303	30,405
	Verisk Analytics Inc. Class A	165,550	28,327
	Equifax Inc.	129,382	26,204
	Jacobs Solutions Inc.	133,488	15,952
	TransUnion	203,626	13,323
	Leidos Holdings Inc.	137,195	13,318
	Booz Allen Hamilton Holding Corp. Class A	139,695	13,233
	Robert Half International Inc.	114,643	9,243
	KBR Inc.	145,038	7,993
^*	CACI International Inc. Class A	24,825	7,274
^*	FTI Consulting Inc.	36,440	6,694
	Science Applications International Corp.	58,221	6,209
	Exponent Inc.	53,510	5,506
	Insperity Inc.	38,116	4,730
^*	ASGN Inc.	52,728	4,682

Industrials Index Fund

		Shares	Market Value• ($000)
	ManpowerGroup Inc.	53,394	4,532
^*	TriNet Group Inc.	42,719	3,540
^*	Clarivate plc	320,901	3,251
	Korn Ferry	56,382	3,151
^*	Alight Inc. Class A	271,025	2,602
	Dun & Bradstreet Holdings Inc.	206,424	2,479
^*	CBIZ Inc.	48,406	2,425
	ICF International Inc.	19,921	1,982
^*	Huron Consulting Group Inc.	21,041	1,477
^*	NV5 Global Inc.	14,033	1,477
^*	Upwork Inc.	125,992	1,429
	Kforce Inc.	20,684	1,293
^*	Sterling Check Corp.	87,584	1,114
	CRA International Inc.	7,450	927
^*	First Advantage Corp.	57,019	827
^*	Planet Labs PBC	172,763	796
	Heidrick & Struggles International Inc.	21,204	728
	Barrett Business Services Inc.	7,420	712
^*	TrueBlue Inc.	34,250	640
	Resources Connection Inc.	33,970	613
	Kelly Services Inc. Class A	35,044	586
^*	Forrester Research Inc.	12,395	408
^*	Hireright Holdings Corp.	24,842	274
^*	Skillsoft Corp.	85,719	134
			230,490
Road & Rail (10.3%)
	Union Pacific Corp.	650,145	134,762
	CSX Corp.	2,223,709	67,801
	Norfolk Southern Corp.	244,897	55,058
^*	Uber Technologies Inc.	1,582,373	52,630
	Old Dominion Freight Line Inc.	99,403	33,723
	JB Hunt Transport Services Inc.	87,499	15,819
	Knight-Swift Transportation Holdings Inc.	161,264	9,166

		Shares	Market Value• ($000)
^*	Saia Inc.	27,963	7,574
	Landstar System Inc.	37,971	6,865
^*	Avis Budget Group Inc.	24,110	5,296
	Ryder System Inc.	53,108	5,200
	U-Haul Holding Co.	93,239	5,187
^*	XPO Inc.	109,479	3,652
^*	Lyft Inc. Class A	335,172	3,352
^*	Hertz Global Holdings Inc.	158,851	2,940
	Werner Enterprises Inc.	60,232	2,798
	ArcBest Corp.	25,854	2,487
^*	RXO Inc.	109,547	2,253
	Schneider National Inc. Class B	60,445	1,696
	Marten Transport Ltd.	68,304	1,508
	Heartland Express Inc.	62,956	1,016
^*	Daseke Inc.	42,110	343
^*	TuSimple Holdings Inc. Class A	138,710	266
	Universal Logistics Holdings Inc.	8,418	250
			421,642
Trading Companies & Distributors (5.2%)
	United Rentals Inc.	73,259	34,324
	WW Grainger Inc.	48,109	32,157
	Ferguson plc	219,872	31,684
	Fastenal Co.	606,297	31,261
	Watsco Inc.	35,145	10,709
^*	WESCO International Inc.	48,418	8,017
^*	SiteOne Landscape Supply Inc.	47,632	7,066
^*	Univar Solutions Inc.	172,473	5,993
	Applied Industrial Technologies Inc.	40,733	5,819
	Air Lease Corp. Class A	111,579	4,829
	Triton International Ltd.	62,077	4,280
	MSC Industrial Direct Co. Inc. Class A	49,970	4,223
	GATX Corp.	37,267	4,065
^*	Beacon Roofing Supply Inc.	54,964	3,573
	Herc Holdings Inc.	24,725	3,550

		Shares	Market Value• ($000)
	Boise Cascade Co.	41,659	2,879
	McGrath RentCorp.	25,861	2,659
	Rush Enterprises Inc. Class A	44,756	2,537
^*	GMS Inc.	40,426	2,454
	Veritiv Corp.	13,528	2,049
	H&E Equipment Services Inc.	34,610	1,921
^*	Core & Main Inc. Class A	72,746	1,696
^*	NOW Inc.	115,705	1,487
^*	MRC Global Inc.	88,396	990
^*	Titan Machinery Inc.	21,612	990
	Global Industrial Co.	17,660	497
^*	DXP Enterprises Inc.	16,480	476
			212,185
Total Common Stocks (Cost $3,968,415)			4,081,675
Temporary Cash Investments (0.2%)
Money Market Fund (0.2%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $10,515)	105,178	10,517
Total Investments (100.1%) (Cost $3,978,930)			4,092,192
Other Assets and Liabilities—Net (-0.1%)			(5,525)
Net Assets (100.0%)			4,086,667
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 $9,314,000.
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 $10,405,000 was received for securities on loan.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
L3Harris Technologies Inc.	8/31/23	BANA	5,069	(4.569)	—	(18)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.

See accompanying Notes, which are an integral part of the Financial Statements.

Industrials Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $3,968,415)	4,081,675
Affiliated Issuers (Cost $10,515)	10,517
Total Investments in Securities	4,092,192
Investment in Vanguard	144
Receivables for Investment Securities Sold	21,446
Receivables for Accrued Income	8,603
Receivables for Capital Shares Issued	273
Total Assets	4,122,658
Liabilities
Due to Custodian	204
Payables for Investment Securities Purchased	15,518
Collateral for Securities on Loan	10,405
Payables for Capital Shares Redeemed	9,700
Payables to Vanguard	146
Unrealized Depreciation—Over-the-Counter Swap Contracts	18
Total Liabilities	35,991
Net Assets	4,086,667
1 Includes $9,314,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	4,111,837
Total Distributable Earnings (Loss)	(25,170)
Net Assets	4,086,667

ETF Shares—Net Assets
Applicable to 20,093,424 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	3,853,844
Net Asset Value Per Share—ETF Shares	$191.80

Admiral Shares—Net Assets
Applicable to 2,362,820 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	232,823
Net Asset Value Per Share—Admiral Shares	$98.54

See accompanying Notes, which are an integral part of the Financial Statements.

Industrials Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends¹	29,978
Interest²	67
Securities Lending—Net	324
Total Income	30,369
Expenses
The Vanguard Group—Note B
Investment Advisory Services	46
Management and Administrative— ETF Shares	1,537
Management and Administrative— Admiral Shares	97
Marketing and Distribution— ETF Shares	97
Marketing and Distribution— Admiral Shares	6
Custodian Fees	11
Shareholders’ Reports—ETF Shares	80
Shareholders’ Reports—Admiral Shares	2
Trustees’ Fees and Expenses	1
Other Expenses	6
Total Expenses	1,883
Net Investment Income	28,486
Realized Net Gain (Loss)
Investment Securities Sold^2,3	(4,024)
Swap Contracts	(446)
Realized Net Gain (Loss)	(4,470)
Change in Unrealized Appreciation (Depreciation)
Investment Securities²	339,018
Swap Contracts	(92)
Change in Unrealized Appreciation (Depreciation)	338,926
Net Increase (Decrease) in Net Assets Resulting from Operations	362,942

1	Dividends are net of foreign withholding taxes of $20,000.
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 $67,000, $1,000, less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	Includes $48,959,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	28,486	61,443
Realized Net Gain (Loss)	(4,470)	686,904
Change in Unrealized Appreciation (Depreciation)	338,926	(1,300,943)
Net Increase (Decrease) in Net Assets Resulting from Operations	362,942	(552,596)
Distributions
ETF Shares	(30,723)	(60,577)
Admiral Shares	(1,814)	(3,978)
Total Distributions	(32,537)	(64,555)
Capital Share Transactions
ETF Shares	80,479	(1,397,561)
Admiral Shares	(10,166)	(109,475)
Net Increase (Decrease) from Capital Share Transactions	70,313	(1,507,036)
Total Increase (Decrease)	400,718	(2,124,187)
Net Assets
Beginning of Period	3,685,949	5,810,136
End of Period	4,086,667	3,685,949

See accompanying Notes, which are an integral part of the Financial Statements.

Industrials Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$175.75	$199.27	$146.89	$142.53	$146.12	$128.70
Investment Operations
Net Investment Income¹	1.361	2.432	2.264	2.366	2.597	2.263
Net Realized and Unrealized Gain (Loss) on Investments	16.242	(23.486)	52.318	4.554	(3.754)	17.412
Total from Investment Operations	17.603	(21.054)	54.582	6.920	(1.157)	19.675
Distributions
Dividends from Net Investment Income	(1.553)	(2.466)	(2.202)	(2.560)	(2.433)	(2.255)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.553)	(2.466)	(2.202)	(2.560)	(2.433)	(2.255)
Net Asset Value, End of Period	$191.80	$175.75	$199.27	$146.89	$142.53	$146.12
Total Return	10.12%	-10.62%	37.41%	4.96%	-0.73%	15.41%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$3,854	$3,461	$5,438	$3,090	$3,457	$3,957
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.48%	1.29%	1.25%	1.69%	1.87%	1.62%
Portfolio Turnover Rate²	3%	4%	5%	4%	4%	4%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$90.29	$102.37	$75.46	$73.22	$75.07	$66.12
Investment Operations
Net Investment Income¹	.695	1.240	1.162	1.221	1.340	1.154
Net Realized and Unrealized Gain (Loss) on Investments	8.351	(12.056)	26.880	2.336	(1.941)	8.955
Total from Investment Operations	9.046	(10.816)	28.042	3.557	(.601)	10.109
Distributions
Dividends from Net Investment Income	(.796)	(1.264)	(1.132)	(1.317)	(1.249)	(1.159)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.796)	(1.264)	(1.132)	(1.317)	(1.249)	(1.159)
Net Asset Value, End of Period	$98.54	$90.29	$102.37	$75.46	$73.22	$75.07
Total Return²	10.12%	-10.62%	37.43%	4.98%	-0.75%	15.41%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$233	$225	$372	$210	$202	$213
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.48%	1.27%	1.25%	1.71%	1.87%	1.62%
Portfolio Turnover Rate³	3%	4%	5%	4%	4%	4%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

See accompanying Notes, which are an integral part of the Financial Statements.

Industrials Index Fund

Notes to Financial Statements

Vanguard Industrials 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Industrials Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

Industrials Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, 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.

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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	4,081,675	—	—	4,081,675
Temporary Cash Investments	10,517	—	—	10,517
Total	4,092,192	—	—	4,092,192
Derivative Financial Instruments
Liabilities
Swap Contracts	—	18	—	18

D.	As of February 28, 2023, 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	3,992,117
Gross Unrealized Appreciation	557,973
Gross Unrealized Depreciation	(457,898)
Net Unrealized Appreciation (Depreciation)	100,075

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $133,026,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

Industrials Index Fund

During the six months ended February 28, 2023, the fund purchased $352,132,000 of investment securities and sold $283,799,000 of investment securities, other than temporary cash investments. Purchases and sales include $231,543,000 and $184,825,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $1,733,000 and sales were $23,852,000, resulting in net realized loss of $36,849,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	264,442	1,451	858,213	4,528
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(183,963)	(1,050)	(2,255,774)	(12,125)
Net Increase (Decrease)—ETF Shares	80,479	401	(1,397,561)	(7,597)
Admiral Shares
Issued	34,178	361	89,996	911
Issued in Lieu of Cash Distributions	1,542	17	3,384	35
Redeemed	(45,886)	(508)	(202,855)	(2,091)
Net Increase (Decrease)—Admiral Shares	(10,166)	(130)	(109,475)	(1,145)

At February 28, 2023, one shareholder was a record or beneficial owner of 27% of the fund’s net assets. If this shareholder were to redeem its investment in the fund, the redemption might result in an increase in the fund’s expense ratio, cause the fund to incur higher transaction costs, or lead to the realization of taxable capital gains.

G.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

Information Technology Index Fund

Fund Allocation

As of February 28, 2023

Communications Equipment	3.2%
Electronic Equipment, Instruments & Components	3.6
IT Services	16.4
Semiconductors & Semiconductor Equipment	21.0
Software	32.2
Technology Hardware, Storage & Peripherals	23.6

Information Technology Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.7%)
Communications Equipment (3.2%)
	Cisco Systems Inc.	19,697,965	953,775
	Motorola Solutions Inc.	799,542	210,128
^*	Arista Networks Inc.	1,170,616	162,364
	Juniper Networks Inc.	1,577,976	48,570
^*	F5 Inc.	293,080	41,905
^*	Ciena Corp.	739,520	35,660
^*	Lumentum Holdings Inc.	346,024	18,619
^*	Calix Inc.	301,961	15,445
^*	Viavi Solutions Inc.	1,194,571	13,069
^*	Extreme Networks Inc.	693,890	12,990
^*	NetScout Systems Inc.	382,722	10,885
^*	ViaSat Inc.	306,583	9,737
^*	CommScope Holding Co. Inc.	1,135,944	8,224
^*,1	Infinera Corp.	1,108,766	7,839
^*	Harmonic Inc.	587,854	7,754
	Adtran Holdings Inc.	418,054	7,295
^*	Digi International Inc.	206,405	6,888
^*	NETGEAR Inc.	202,092	3,658
^*	Ribbon Communications Inc.	765,341	3,413
^*	Casa Systems Inc.	580,281	2,101
^*	Clearfield Inc.	3,980	249
			1,580,568
Electronic Equipment, Instruments & Components (3.6%)
	Amphenol Corp. Class A	2,848,195	220,792
	TE Connectivity Ltd.	1,533,354	195,227
^*	Keysight Technologies Inc.	860,931	137,715
	CDW Corp.	650,418	131,658
	Corning Inc.	3,859,299	131,023
^*	Teledyne Technologies Inc.	226,416	97,375
^*	Zebra Technologies Corp. Class A	251,184	75,418
^*	Trimble Inc.	1,203,997	62,680
	Jabil Inc.	670,881	55,703
^*	Flex Ltd.	2,227,721	50,703
	Cognex Corp.	852,092	40,406
^*	Arrow Electronics Inc.	316,776	37,376
	National Instruments Corp.	654,925	33,080
	Littelfuse Inc.	123,563	31,969
^*	Coherent Corp.	652,917	28,160
^*	Novanta Inc.	178,770	28,051
^*	Insight Enterprises Inc.	179,487	24,037
^*	Fabrinet	183,171	22,323
^*	IPG Photonics Corp.	179,346	22,103
	Avnet Inc.	479,998	21,461
	Vontier Corp.	812,813	21,271
	TD SYNNEX Corp.	217,231	20,967
	Belden Inc.	223,891	18,892
	Badger Meter Inc.	150,832	18,344
^*	Sanmina Corp.	296,755	17,942
	Advanced Energy Industries Inc.	192,185	17,889
^*	Rogers Corp.	99,510	14,648

		Shares	Market Value• ($000)
	Vishay Intertechnology Inc.	681,057	14,459
^*	Plexus Corp.	143,570	13,767
^*	Itron Inc.	238,153	13,282
	Methode Electronics Inc.	205,327	10,006
^*	Knowles Corp.	507,652	8,620
^*	OSI Systems Inc.	90,764	8,400
^*	ePlus Inc.	154,120	8,349
	CTS Corp.	179,820	7,788
^*	Mirion Technologies Inc.	791,606	7,188
^*	TTM Technologies Inc.	539,005	7,163
^*	Napco Security Technologies Inc.	192,867	6,095
^*	PAR Technology Corp.	171,461	5,855
^*,1	Ouster Inc.	4,280,000	5,136
	Benchmark Electronics Inc.	212,533	5,056
^*	ScanSource Inc.	159,826	4,983
^*,1	Lightwave Logic Inc.	757,603	4,470
^*	nLight Inc.	326,699	3,692
	PC Connection Inc.	82,349	3,607
^*,1	MicroVision Inc.	1,355,961	3,471
^*	FARO Technologies Inc.	123,761	3,366
^*	Arlo Technologies Inc.	751,648	2,856
^*,1	SmartRent Inc.	1,100,869	2,851
^*	Aeva Technologies Inc.	1,338,489	2,396
^*,1	908 Devices Inc.	233,643	2,103
^*,1	Focus Universal Inc.	309,581	1,563
^*,1	AEye Inc.	1,920,283	1,134
			1,734,869
IT Services (16.3%)
	Visa Inc. Class A	7,278,487	1,600,830
	Mastercard Inc. Class A	4,106,032	1,458,832
	Accenture plc Class A	3,013,530	800,243
	International Business Machines Corp.	4,288,550	554,510
	Automatic Data Processing Inc.	1,983,314	435,972
^*	PayPal Holdings Inc.	5,245,943	386,101
^*	Fiserv Inc.	2,904,390	334,266
^*	Block Inc. (XNYS)	2,522,169	193,526
	Fidelity National Information Services Inc.	2,913,219	184,611
	Paychex Inc.	1,553,019	171,453
^*	Snowflake Inc. Class A	1,069,588	165,123
	Cognizant Technology Solutions Corp. Class A	2,485,677	155,678
	Global Payments Inc.	1,331,468	149,391
^*	Gartner Inc.	380,464	124,720
^*	VeriSign Inc.	465,696	91,663
^*	EPAM Systems Inc.	276,998	85,218
	Broadridge Financial Solutions Inc.	567,757	79,929
^*	Cloudflare Inc. Class A	1,243,414	74,617
^*	FleetCor Technologies Inc.	346,085	74,336
^*	MongoDB Inc. Class A	331,209	69,395

		Shares	Market Value• ($000)
	SS&C Technologies Holdings Inc.	1,116,354	65,530
	Jack Henry & Associates Inc.	354,399	58,206
^*	GoDaddy Inc. Class A	761,293	57,637
^*	Twilio Inc. Class A	850,519	57,163
^*	Akamai Technologies Inc.	771,769	56,030
^*	Okta Inc.	737,465	52,574
^*	WEX Inc.	217,969	42,027
^*	DXC Technology Co.	1,142,226	31,685
	Concentrix Corp.	218,560	29,908
^*	ExlService Holdings Inc.	165,584	27,240
^*	Euronet Worldwide Inc.	247,890	26,983
	Maximus Inc.	305,913	25,109
	Western Union Co.	1,926,901	24,973
^*	Toast Inc. Class A	1,116,109	21,117
^*	Shift4 Payments Inc. Class A	252,449	16,283
^*	Kyndryl Holdings Inc.	971,031	15,235
^*,1	Affirm Holdings Inc.	1,032,381	14,061
^*	Perficient Inc.	182,667	12,933
^*	Verra Mobility Corp. Class A	744,192	12,822
^*	Marqeta Inc. Class A	2,008,429	11,649
	EVERTEC Inc.	307,100	11,304
	CSG Systems International Inc.	175,616	9,870
^*	Fastly Inc. Class A	653,327	9,075
^*	Evo Payments Inc. Class A	266,765	9,030
^*	Sabre Corp.	1,673,530	8,468
^*	DigitalOcean Holdings Inc.	256,427	8,201
^*	Remitly Global Inc.	507,660	7,427
^*	Payoneer Global Inc.	1,210,405	7,020
^*	International Money Express Inc.	206,656	5,280
^*	Flywire Corp.	198,497	4,909
^*	Squarespace Inc. Class A	208,496	4,881
	TTEC Holdings Inc.	116,479	4,689
^*	Repay Holdings Corp. Class A	540,531	4,584
^*	Conduent Inc.	1,102,529	4,388
	Cass Information Systems Inc.	89,396	4,322
^*	BigCommerce Holdings Inc. Series 1	401,698	3,824
^*	I3 Verticals Inc. Class A	150,939	3,715
^*	Grid Dynamics Holdings Inc.	317,135	3,695
^*	AvidXchange Holdings Inc.	358,365	3,566
	Hackett Group Inc.	185,144	3,451
^*	TaskUS Inc. Class A	193,927	3,337
^*	Unisys Corp.	568,749	2,832
^*	Paymentus Holdings Inc. Class A	234,627	2,100
^*,1	Tucows Inc. Class A	86,111	1,991

Information Technology Index Fund

		Shares	Market Value• ($000)
^*	Rackspace Technology Inc.	716,469	1,684
^*,1	Cyxtera Technologies Inc.	71,007	159
^*	Cerberus Cyber Sentinel Corp.	118,717	68
			7,983,449
Semiconductors & Semiconductor Equipment (20.9%)
	NVIDIA Corp.	11,813,404	2,742,600
	Broadcom Inc.	1,923,552	1,143,148
	Texas Instruments Inc.	4,355,505	746,751
	QUALCOMM Inc.	5,335,835	659,136
^*	Advanced Micro Devices Inc.	7,702,357	605,251
	Intel Corp.	19,504,370	486,244
	Applied Materials Inc.	4,106,789	477,003
	Analog Devices Inc.	2,455,751	450,557
	Lam Research Corp.	654,866	318,271
	Micron Technology Inc.	5,273,103	304,891
	KLA Corp.	678,122	257,266
	NXP Semiconductors NV	1,257,812	224,494
	Microchip Technology Inc.	2,648,030	214,570
	Marvell Technology Inc.	4,093,372	184,816
^*	ON Semiconductor Corp.	2,082,953	161,241
^*	Enphase Energy Inc.	650,577	136,966
	Monolithic Power Systems Inc.	215,066	104,154
	Skyworks Solutions Inc.	776,790	86,666
^*	SolarEdge Technologies Inc.	269,388	85,644
^*	First Solar Inc.	464,615	78,585
	Teradyne Inc.	760,397	76,907
	Entegris Inc.	726,841	61,949
^*	Lattice Semiconductor Corp.	672,792	57,160
^*	Qorvo Inc.	504,646	50,914
^*	Wolfspeed Inc.	608,812	45,040
^*	Silicon Laboratories Inc.	172,288	30,759
	Universal Display Corp.	224,144	30,450
^*	Cirrus Logic Inc.	282,142	28,990
	MKS Instruments Inc.	298,012	28,886
^*	Rambus Inc.	557,241	24,647
	Power Integrations Inc.	287,715	23,665
^*	Synaptics Inc.	200,294	23,557
^*	Axcelis Technologies Inc.	170,330	21,894
^*	Diodes Inc.	231,591	21,235
^*	Onto Innovation Inc.	253,844	20,934
^*	Ambarella Inc.	187,745	17,706
^*	MACOM Technology Solutions Holdings Inc. Class H	254,112	17,417
	Kulicke & Soffa Industries Inc.	302,747	16,136
^*	Allegro MicroSystems Inc.	359,834	15,717
^*	Impinj Inc.	113,728	15,083
	Amkor Technology Inc.	569,027	14,658
^*	MaxLinear Inc.	389,940	13,340
^*	FormFactor Inc.	419,325	12,622
^*	Sitime Corp.	88,237	10,955
^*	Semtech Corp.	343,529	10,584
^*	Cohu Inc.	266,292	9,906
^*	Ultra Clean Holdings Inc.	257,019	8,189
^*	PDF Solutions Inc.	183,807	6,882
^*	Veeco Instruments Inc.	310,022	6,594

		Shares	Market Value• ($000)
^*	Photronics Inc.	366,843	6,464
^*	Ichor Holdings Ltd.	178,424	5,879
^*,1	indie Semiconductor Inc.	526,999	5,512
^*	SMART Global Holdings Inc.	304,338	5,082
^*	CEVA Inc.	151,985	4,797
^*	Alpha & Omega Semiconductor Ltd.	153,224	4,093
^*,1	Navitas Semiconductor Corp.	628,188	4,077
^*	ACM Research Inc. Class A	331,651	3,442
^*	Magnachip Semiconductor Corp.	337,168	3,230
^*	Credo Technology Group Holding Ltd.	23,289	247
			10,233,853
Software (32.2%)
	Microsoft Corp.	33,656,109	8,394,507
^*	Salesforce Inc.	4,730,962	774,033
^*	Adobe Inc.	2,231,132	722,775
	Oracle Corp.	7,624,903	666,417
	Intuit Inc.	1,278,138	520,432
^*	ServiceNow Inc.	959,386	414,618
^*	Palo Alto Networks Inc.	1,431,921	269,731
^*	Synopsys Inc.	731,801	266,200
^*	Cadence Design Systems Inc.	1,311,180	252,979
	Roper Technologies Inc.	507,564	218,354
^*	Autodesk Inc.	1,040,922	206,821
^*	Fortinet Inc.	3,217,305	191,237
^*	Workday Inc. Class A	964,664	178,916
^*	ANSYS Inc.	419,873	127,478
^*	Crowdstrike Holdings Inc. Class A	978,323	118,074
^*	VMware Inc. Class A	1,016,054	111,898
^*	Datadog Inc. Class A	1,184,197	90,615
^*	HubSpot Inc.	221,405	85,653
^*	Fair Isaac Corp.	122,304	82,847
^*	Zoom Video Communications Inc. Class A	1,095,035	81,679
^*	Splunk Inc.	789,659	80,940
^*	Paycom Software Inc.	247,427	71,521
^*	PTC Inc.	541,502	67,866
^*	Tyler Technologies Inc.	202,338	65,001
^*	Palantir Technologies Inc. Class A	8,142,331	63,836
^*	DocuSign Inc. Class A	976,432	59,904
	Gen Digital Inc. (XNGS)	2,909,441	56,763
^*	Zscaler Inc.	417,322	54,732
^*	Ceridian HCM Holding Inc.	676,003	49,301
^*	Black Knight Inc.	765,598	45,630
^*	Dynatrace Inc.	1,065,422	45,312
^*	Manhattan Associates Inc.	309,701	44,519
^*	Bill Holdings Inc.	462,770	39,164
	Bentley Systems Inc. Class B	957,011	38,721
^*	Paylocity Holding Corp.	198,606	38,253
^*,1	Unity Software Inc.	1,224,247	37,266
^*	Nutanix Inc. Class A	1,119,026	31,612
^*	Aspen Technology Inc.	142,284	30,166
^*	Guidewire Software Inc.	400,575	28,124
^*	Dropbox Inc. Class A	1,370,727	27,963
^*	SPS Commerce Inc.	180,909	27,252
^*	Smartsheet Inc. Class A	615,811	27,108

		Shares	Market Value• ($000)
	Dolby Laboratories Inc. Class A	309,648	25,478
^*	Tenable Holdings Inc.	564,663	24,975
^*	Box Inc. Class A	727,435	24,260
^*	Five9 Inc.	351,694	23,212
^*	Elastic NV	386,892	22,834
^*	New Relic Inc.	311,007	22,694
^*	Teradata Corp.	528,992	21,562
^*	Workiva Inc. Class A	233,942	20,868
^*	Qualys Inc.	176,602	20,866
^*	Alteryx Inc. Class A	314,805	20,560
^*	Blackline Inc.	289,121	19,764
^*	NCR Corp.	701,590	17,912
^*	Altair Engineering Inc. Class A	273,717	17,534
^*	Varonis Systems Inc. Class B	574,370	15,554
^*	Envestnet Inc.	243,220	15,204
^*	Rapid7 Inc.	317,922	15,038
^*	Sprout Social Inc. Class A	245,161	14,950
^*	ACI Worldwide Inc.	561,078	14,504
^*	Confluent Inc. Class A	593,898	14,485
^*	SentinelOne Inc. Class A	899,941	14,390
^*	RingCentral Inc. Class A	424,491	14,025
^*	Appfolio Inc. Class A	102,643	13,555
	Progress Software Corp.	232,097	13,332
^*,1	MicroStrategy Inc. Class A	50,307	13,194
^*	Blackbaud Inc.	235,980	13,142
^*	Verint Systems Inc.	343,912	12,855
^*	Alarm.com Holdings Inc.	250,431	12,729
^*	PagerDuty Inc.	425,561	12,707
^*	CommVault Systems Inc.	214,673	12,640
	InterDigital Inc.	162,129	11,834
^*	UiPath Inc. Class A	756,143	11,221
^*	Gitlab Inc. Class A	243,601	10,728
^*,1	C3.ai Inc. Class A	474,105	10,705
	Pegasystems Inc.	228,768	10,610
^*,1	Freshworks Inc. Class A	707,149	10,565
^*	Procore Technologies Inc.	155,847	10,440
^*	Agilysys Inc.	129,978	10,387
^*	Q2 Holdings Inc.	315,389	10,181
^*	AppLovin Corp. Class A	682,624	9,215
^*	LiveRamp Holdings Inc.	372,512	8,802
^*	Qualtrics International Inc. Class A	506,631	8,572
^*	nCino Inc.	310,790	8,469
^*	Duck Creek Technologies Inc.	446,081	8,449
^*	Appian Corp. Class A	200,888	8,327
^*	Everbridge Inc.	233,922	7,645
^*,1	Samsara Inc. Class A	450,140	7,499
^*	Zeta Global Holdings Corp. Class A	678,822	7,202
^*	Sumo Logic Inc.	596,727	7,083
^*	HashiCorp Inc. Class A	234,481	6,847
^*	Cerence Inc.	247,848	6,786
^*	JFrog Ltd.	292,291	6,723
^*	E2open Parent Holdings Inc.	1,073,907	6,658
^*	DoubleVerify Holdings Inc.	251,681	6,612
^*	Zuora Inc. Class A	774,705	6,562
^*	PROS Holdings Inc.	248,648	6,487
^*	PowerSchool Holdings Inc. Class A	279,921	6,424

Information Technology Index Fund

		Shares	Market Value• ($000)
	Clear Secure Inc. Class A	206,046	6,334
^*	Asana Inc. Class A	427,460	6,322
^*	Model N Inc.	189,578	6,294
^*	Atlassian Corp Ltd. Class A	37,136	6,103
	Adeia Inc.	618,709	6,100
^*,1	Riot Platforms Inc.	959,434	5,996
	A10 Networks Inc.	392,735	5,977
^*	Digital Turbine Inc.	534,134	5,737
^*	Paycor HCM Inc.	222,893	5,521
^*	Momentive Global Inc.	780,778	5,387
^*	Vertex Inc. Class A	338,718	5,277
^*	Braze Inc. Class A	171,126	5,254
^*	Jamf Holding Corp.	239,246	5,077
^*,1	Marathon Digital Holdings Inc.	704,679	5,003
^*	Yext Inc.	674,411	4,950
^*	Olo Inc. Class A	620,127	4,918
^*	Amplitude Inc. Class A	355,655	4,695
^*	LivePerson Inc.	457,361	4,628
^*	Sprinklr Inc. Class A	416,158	4,515
^*	Matterport Inc.	1,451,350	4,427
^*	Consensus Cloud Solutions Inc.	107,819	4,425
^*	8x8 Inc.	805,775	4,287
^*	Informatica Inc. Class A	247,071	4,262
^*	Intapp Inc.	105,435	4,173
^*	N-Able Inc.	348,411	4,125
^*	Domo Inc. Class B	246,056	3,782
^*	Clearwater Analytics Holdings Inc. Class A	208,132	3,582
	American Software Inc. Class A	263,480	3,567
^*,1	AvePoint Inc.	698,880	3,494
^*	OneSpan Inc.	249,612	3,375
	Ebix Inc.	187,730	3,263
^*	Mitek Systems Inc.	343,526	3,195

		Shares	Market Value• ($000)
^*	SolarWinds Corp.	332,278	2,831
^*	Digimarc Corp.	138,439	2,823
^*	Couchbase Inc.	173,286	2,818
^*,1	MeridianLink Inc.	177,090	2,791
^*,1	SEMrush Holdings Inc. Class A	348,479	2,788
^*	ON24 Inc.	285,095	2,748
^*	Alkami Technology Inc.	174,547	2,681
^*,1	Veritone Inc.	358,925	2,545
^*	Rimini Street Inc.	527,001	2,256
^*	Enfusion Inc. Class A	191,277	2,050
^*	CS Disco Inc.	270,497	1,893
^*	Expensify Inc. Class A	208,451	1,755
^*	Upland Software Inc.	302,265	1,750
^*	SecureWorks Corp. Class A	210,422	1,593
^*	Telos Corp.	395,932	1,532
^*	Latch Inc.	1,904,316	1,504
^*	WM Technology Inc.	1,309,166	1,447
^*,1	Cipher Mining Inc.	928,724	1,412
^*,1	Embark Technology Inc.	155,466	637
^*	Terawulf Inc.	936,344	604
^*	ForgeRock Inc. Class A	11,687	239
^*	Weave Communications Inc.	33,904	175
^*	Porch Group Inc.	55,887	140
			15,737,131
Technology Hardware, Storage & Peripherals (23.5%)
	Apple Inc.	74,235,724	10,943,088
	HP Inc.	4,971,384	146,755
	Hewlett Packard Enterprise Co.	6,269,287	97,864
	NetApp Inc.	1,066,596	68,849
	Seagate Technology Holdings plc	966,831	62,419
^*	Western Digital Corp.	1,532,786	58,982

		Shares	Market Value• ($000)
	Dell Technologies Inc. Class C	1,298,045	52,752
^*	Pure Storage Inc. Class A	1,387,194	39,590
^*	Super Micro Computer Inc.	242,346	23,743
	Xerox Holdings Corp.	634,299	10,460
^*	Avid Technology Inc.	214,291	6,227
^*	Corsair Gaming Inc.	274,145	4,797
^*,1	IonQ Inc.	939,506	4,453
			11,519,979
Total Common Stocks (Cost $39,604,594)			48,789,849
Temporary Cash Investments (0.4%)
Money Market Fund (0.4%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $199,412)	1,994,867	199,467
Total Investments (100.1%) (Cost $39,804,006)			48,989,316
Other Assets and Liabilities—Net (-0.1%)			(25,574)
Net Assets (100.0%)			48,963,742
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 $75,560,000.
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 $81,263,000 was received for securities on loan, of which $81,249,000 is held in Vanguard Market Liquidity Fund and $14,000 is held in cash.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
			($000)
	Expiration	Number of Long (Short) Contracts	Notional Amount	Value and Unrealized Appreciation (Depreciation)
Long Futures Contracts
E-mini NASDAQ 100 Index	March 2023	101	24,386	(463)

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Visa Inc. Class A	8/31/23	BANA	109,970	(4.469)	—	(175)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.

See accompanying Notes, which are an integral part of the Financial Statements.

Information Technology Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $39,604,594)	48,789,849
Affiliated Issuers (Cost $199,412)	199,467
Total Investments in Securities	48,989,316
Investment in Vanguard	1,734
Cash	8,300
Cash Collateral Pledged—Futures Contracts	1,600
Cash Collateral Pledged—Over-the-Counter Swap Contracts	5,420
Receivables for Investment Securities Sold	136,884
Receivables for Accrued Income	50,460
Receivables for Capital Shares Issued	5,892
Total Assets	49,199,606
Liabilities
Payables for Investment Securities Purchased	62,745
Collateral for Securities on Loan	81,263
Payables for Capital Shares Redeemed	89,889
Payables to Vanguard	1,770
Variation Margin Payable—Futures Contracts	22
Unrealized Depreciation—Over-the-Counter Swap Contracts	175
Total Liabilities	235,864
Net Assets	48,963,742
1 Includes $75,560,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	38,891,926
Total Distributable Earnings (Loss)	10,071,816
Net Assets	48,963,742

ETF Shares—Net Assets
Applicable to 121,282,918 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	42,707,048
Net Asset Value Per Share—ETF Shares	$352.13

Admiral Shares—Net Assets
Applicable to 34,700,699 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	6,256,694
Net Asset Value Per Share—Admiral Shares	$180.30

See accompanying Notes, which are an integral part of the Financial Statements.

Information Technology Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends¹	232,414
Interest²	2,469
Securities Lending—Net	2,849
Total Income	237,732
Expenses
The Vanguard Group—Note B
Investment Advisory Services	559
Management and Administrative— ETF Shares	18,382
Management and Administrative— Admiral Shares	2,637
Marketing and Distribution— ETF Shares	919
Marketing and Distribution— Admiral Shares	156
Custodian Fees	68
Shareholders’ Reports—ETF Shares	445
Shareholders’ Reports—Admiral Shares	18
Trustees’ Fees and Expenses	10
Other Expenses	6
Total Expenses	23,200
Expenses Paid Indirectly	(3)
Net Expenses	23,197
Net Investment Income	214,535
Realized Net Gain (Loss)
Investment Securities Sold^2,3	1,910,967
Futures Contracts	(2,705)
Swap Contracts	9,345
Realized Net Gain (Loss)	1,917,607
Change in Unrealized Appreciation (Depreciation)
Investment Securities²	(1,625,703)
Futures Contracts	647
Swap Contracts	(175)
Change in Unrealized Appreciation (Depreciation)	(1,625,231)
Net Increase (Decrease) in Net Assets Resulting from Operations	506,911

1	Dividends are net of foreign withholding taxes of $324,000.
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 $2,418,000, ($2,000), less than $1,000, and $30,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	Includes $2,272,414,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	214,535	419,743
Realized Net Gain (Loss)	1,917,607	6,476,344
Change in Unrealized Appreciation (Depreciation)	(1,625,231)	(17,436,415)
Net Increase (Decrease) in Net Assets Resulting from Operations	506,911	(10,540,328)
Distributions
ETF Shares	(201,056)	(362,859)
Admiral Shares	(28,349)	(51,539)
Total Distributions	(229,405)	(414,398)
Capital Share Transactions
ETF Shares	(1,077,484)	1,913,376
Admiral Shares	211,366	54,602
Net Increase (Decrease) from Capital Share Transactions	(866,118)	1,967,978
Total Increase (Decrease)	(588,612)	(8,986,748)
Net Assets
Beginning of Period	49,552,354	58,539,102
End of Period	48,963,742	49,552,354

See accompanying Notes, which are an integral part of the Financial Statements.

Information Technology Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$349.23	$426.48	$328.54	$213.66	$202.82	$151.19
Investment Operations
Net Investment Income¹	1.532	3.003	2.634	2.926	2.572	1.921
Net Realized and Unrealized Gain (Loss) on Investments	3.004	(77.272)	97.919	114.955	10.792	51.430
Total from Investment Operations	4.536	(74.269)	100.553	117.881	13.364	53.351
Distributions
Dividends from Net Investment Income	(1.636)	(2.981)	(2.613)	(3.001)	(2.524)	(1.721)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.636)	(2.981)	(2.613)	(3.001)	(2.524)	(1.721)
Net Asset Value, End of Period	$352.13	$349.23	$426.48	$328.54	$213.66	$202.82
Total Return	1.34%	-17.50%	30.80%	55.72%	6.70%	35.52%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$42,707	$43,558	$51,238	$38,711	$20,738	$22,595
Ratio of Total Expenses to Average Net Assets	0.10%²	0.10%²	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	0.92%	0.76%	0.73%	1.17%	1.32%	1.10%
Portfolio Turnover Rate³	3%	6%	4%	5%	5%	7%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Information Technology Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$178.82	$218.38	$168.23	$109.40	$103.86	$77.42
Investment Operations
Net Investment Income¹	.788	1.538	1.353	1.504	1.326	1.001
Net Realized and Unrealized Gain (Loss) on Investments	1.531	(39.572)	50.136	58.864	5.509	26.324
Total from Investment Operations	2.319	(38.034)	51.489	60.368	6.835	27.325
Distributions
Dividends from Net Investment Income	(.839)	(1.526)	(1.339)	(1.538)	(1.295)	(.885)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.839)	(1.526)	(1.339)	(1.538)	(1.295)	(.885)
Net Asset Value, End of Period	$180.30	$178.82	$218.38	$168.23	$109.40	$103.86
Total Return²	1.33%	-17.50%	30.81%	55.78%	6.70%	35.54%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$6,257	$5,994	$7,301	$5,149	$2,470	$2,033
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%³	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	0.93%	0.75%	0.73%	1.17%	1.32%	1.10%
Portfolio Turnover Rate⁴	3%	6%	4%	5%	5%	7%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Information Technology Index Fund

Notes to Financial Statements

Vanguard Information Technology 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 NYSE Arca; they can be purchased and sold through a broker.

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.

2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.

During the six months ended February 28, 2023, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

Information Technology Index Fund

entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

4. 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.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

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

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 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

Information Technology Index Fund

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.

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in 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. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. 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.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $1,734,000, representing less than 0.01% of the fund’s net assets and 0.69% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended February 28, 2023, custodian fee offset arrangements reduced the fund’s expenses by $3,000 (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.).

Information Technology Index Fund

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	48,789,849	—	—	48,789,849
Temporary Cash Investments	199,467	—	—	199,467
Total	48,989,316	—	—	48,989,316
Derivative Financial Instruments
Liabilities
Futures Contracts¹	463	—	—	463
Swap Contracts	—	175	—	175
Total	463	175	—	638

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.	As of February 28, 2023, 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	39,930,460
Gross Unrealized Appreciation	11,939,385
Gross Unrealized Depreciation	(2,880,992)
Net Unrealized Appreciation (Depreciation)	9,058,393

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $1,041,103,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended February 28, 2023, the fund purchased $5,160,211,000 of investment securities and sold $6,075,984,000 of investment securities, other than temporary cash investments. Purchases and sales include $3,392,533,000 and $4,542,887,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $2,449,000 and sales were $3,694,000, resulting in net realized loss of $975,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	3,463,005	10,407	12,984,660	32,734
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(4,540,489)	(13,850)	(11,071,284)	(28,150)
Net Increase (Decrease)—ETF Shares	(1,077,484)	(3,443)	1,913,376	4,584

Materials Index Fund

Fund Allocation

As of February 28, 2023

Chemicals	62.6%
Construction Materials	4.6
Containers & Packaging	11.7
Metals & Mining	20.5
Paper & Forest Products	0.6

Materials Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.8%)
Chemicals (62.5%)
	Linde plc	1,673,207	582,895
	Air Products and Chemicals Inc.	751,589	214,939
	Sherwin-Williams Co.	834,024	184,611
	Corteva Inc.	2,420,328	150,762
	Ecolab Inc.	868,504	138,414
	Dow Inc.	2,384,160	136,374
	DuPont de Nemours Inc.	1,683,105	122,917
	PPG Industries Inc.	796,308	105,160
	Albemarle Corp.	396,912	100,939
	LyondellBasell Industries NV Class A	882,528	84,714
	International Flavors & Fragrances Inc.	863,842	80,510
	Mosaic Co.	1,153,526	61,356
	CF Industries Holdings Inc.	664,640	57,086
	FMC Corp.	426,688	55,107
	Celanese Corp. Class A	367,477	42,712
	RPM International Inc.	437,440	38,770
	Eastman Chemical Co.	406,777	34,657
	Olin Corp.	441,096	25,473
^*	Axalta Coating Systems Ltd.	748,079	22,293
	Valvoline Inc.	592,219	20,846
	Ashland Inc.	174,513	17,762
	Chemours Co.	510,839	17,461
	Huntsman Corp.	552,718	16,217
	Element Solutions Inc.	778,392	15,988
	Westlake Corp.	129,697	15,452
	Cabot Corp.	190,660	15,163
^*	Livent Corp.	607,122	14,237
	Balchem Corp.	108,766	14,140
	Avient Corp.	307,800	13,429
	HB Fuller Co.	180,458	12,589
	Scotts Miracle-Gro Co.	140,792	11,615
	Sensient Technologies Corp.	142,289	10,727
^*	Ingevity Corp.	126,496	10,444
	Innospec Inc.	83,829	9,176
	NewMarket Corp.	25,066	8,610
	Quaker Chemical Corp.	42,481	8,317
	Stepan Co.	75,362	7,844
	Minerals Technologies Inc.	109,845	6,673
	Tronox Holdings plc Class A	392,142	6,117
	Orion Engineered Carbons SA	205,850	5,249
	Mativ Holdings Inc.	186,760	4,839
^*,1	Ginkgo Bioworks Holdings Inc.	2,834,127	4,166
^*	Perimeter Solutions SA	478,893	4,099
	AdvanSix Inc.	93,316	3,840
^*	Ecovyst Inc.	269,694	2,708
	Chase Corp.	27,224	2,666
	Hawkins Inc.	64,362	2,618

		Shares	Market Value• ($000)
	Koppers Holdings Inc.	70,759	2,540
^*	LSB Industries Inc.	180,423	2,452
	Trinseo plc	94,615	2,193
^*	Aspen Aerogels Inc.	200,139	2,172
^*,1	PureCycle Technologies Inc.	277,222	1,769
^*	Origin Materials Inc.	364,455	1,749
^*	Diversey Holdings Ltd.	276,986	1,637
^*	Intrepid Potash Inc.	36,332	1,151
^*,1	Amyris Inc.	852,534	1,066
	Kronos Worldwide Inc.	77,045	870
^*,1	Danimer Scientific Inc.	310,068	800
			2,541,080
Construction Materials (4.6%)
	Vulcan Materials Co.	450,299	81,464
	Martin Marietta Materials Inc.	210,407	75,719
	Eagle Materials Inc.	124,707	17,499
^*	Summit Materials Inc. Class A	400,708	11,837
			186,519
Containers & Packaging (11.7%)
	Ball Corp.	1,063,715	59,791
	Amcor plc	5,043,995	56,190
	Avery Dennison Corp.	274,332	49,981
	Packaging Corp. of America	313,506	42,863
	International Paper Co.	1,144,845	41,661
	Crown Holdings Inc.	406,462	35,163
	Westrock Co.	861,313	27,045
	Berry Global Group Inc.	420,694	26,125
	AptarGroup Inc.	221,309	25,831
	Graphic Packaging Holding Co.	1,041,249	24,782
	Sealed Air Corp.	489,631	23,806
	Sonoco Products Co.	330,074	19,494
	Silgan Holdings Inc.	298,072	15,917
^*	O-I Glass Inc.	524,890	11,663
	Greif Inc. Class A	86,678	6,159
	TriMas Corp.	142,259	4,266
	Myers Industries Inc.	104,415	2,698
	Pactiv Evergreen Inc.	149,762	1,619
^*	Ranpak Holdings Corp. Class A	150,452	948
			476,002
Metals & Mining (20.4%)
	Freeport-McMoRan Inc.	4,842,439	198,395
	Nucor Corp.	869,125	145,526
	Newmont Corp.	2,688,887	117,262
	Steel Dynamics Inc.	594,806	75,011
	Reliance Steel & Aluminum Co.	198,825	49,277
^*	Cleveland-Cliffs Inc.	1,746,207	37,247
	Alcoa Corp.	599,758	29,352
	Royal Gold Inc.	222,530	26,434
	Commercial Metals Co.	397,942	20,594
^*	ATI Inc.	438,305	17,817

		Shares	Market Value• ($000)
	US Steel Corp.	580,982	17,796
	Hecla Mining Co.	2,051,884	10,567
^*	MP Materials Corp.	270,396	9,464
^*	Arconic Corp.	343,192	9,074
	Alpha Metallurgical Resources Inc.	51,209	8,590
	Carpenter Technology Corp.	163,962	7,924
	Materion Corp.	69,648	7,778
	Warrior Met Coal Inc.	175,508	6,717
	Worthington Industries Inc.	109,362	6,610
	Compass Minerals International Inc.	117,998	4,546
	Kaiser Aluminum Corp.	53,837	4,270
^*	Piedmont Lithium Inc.	60,950	3,956
^*	Coeur Mining Inc.	957,380	2,987
	Schnitzer Steel Industries Inc. Class A	86,004	2,811
	SunCoke Energy Inc.	282,210	2,684
^*	TimkenSteel Corp.	127,945	2,340
^*	Century Aluminum Co.	171,148	2,066
	Ryerson Holding Corp.	56,341	2,024
^*,1	5e Advanced Materials Inc.	126,200	853
	Ramaco Resources Inc.	73,817	735
			830,707
Paper & Forest Products (0.6%)
	Louisiana-Pacific Corp.	242,609	14,195
	Sylvamo Corp.	134,408	6,630
	Mercer International Inc.	147,040	1,585
			22,410
Total Common Stocks (Cost $3,839,604)			4,056,718
Temporary Cash Investments (0.3%)
Money Market Fund (0.3%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $11,365)	113,673	11,366
Total Investments (100.1%) (Cost $3,850,969)			4,068,084
Other Assets and Liabilities—Net (-0.1%)			(3,321)
Net Assets (100.0%)			4,064,763
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 $4,851,000.
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 $6,106,000 was received for securities on loan.

Materials Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $3,839,604)	4,056,718
Affiliated Issuers (Cost $11,365)	11,366
Total Investments in Securities	4,068,084
Investment in Vanguard	148
Receivables for Investment Securities Sold	27,878
Receivables for Accrued Income	6,549
Receivables for Capital Shares Issued	1,234
Total Assets	4,103,893
Liabilities
Due to Custodian	214
Payables for Investment Securities Purchased	15,284
Collateral for Securities on Loan	6,106
Payables for Capital Shares Redeemed	17,370
Payables to Vanguard	145
Unrealized Depreciation—Over-the-Counter Swap Contracts	11
Total Liabilities	39,130
Net Assets	4,064,763
1 Includes $4,851,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	3,933,733
Total Distributable Earnings (Loss)	131,030
Net Assets	4,064,763

ETF Shares—Net Assets
Applicable to 16,532,096 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	2,998,916
Net Asset Value Per Share—ETF Shares	$181.40

Admiral Shares—Net Assets
Applicable to 11,532,277 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,065,847
Net Asset Value Per Share—Admiral Shares	$92.42

See accompanying Notes, which are an integral part of the Financial Statements.

Materials Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends¹	36,855
Interest²	50
Securities Lending—Net	185
Total Income	37,090
Expenses
The Vanguard Group—Note B
Investment Advisory Services	46
Management and Administrative— ETF Shares	1,184
Management and Administrative— Admiral Shares	445
Marketing and Distribution— ETF Shares	77
Marketing and Distribution— Admiral Shares	27
Custodian Fees	21
Shareholders’ Reports—ETF Shares	101
Shareholders’ Reports—Admiral Shares	8
Trustees’ Fees and Expenses	1
Other Expenses	6
Total Expenses	1,916
Expenses Paid Indirectly	(2)
Net Expenses	1,914
Net Investment Income	35,176
Realized Net Gain (Loss)
Investment Securities Sold^2,3	41,469
Swap Contracts	1,584
Realized Net Gain (Loss)	43,053
Change in Unrealized Appreciation (Depreciation)
Investment Securities²	292,515
Swap Contracts	(11)
Change in Unrealized Appreciation (Depreciation)	292,504
Net Increase (Decrease) in Net Assets Resulting from Operations	370,733

1	Dividends are net of foreign withholding taxes of $1,000.
2	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $49,000, less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	Includes $60,984,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	35,176	84,474
Realized Net Gain (Loss)	43,053	315,519
Change in Unrealized Appreciation (Depreciation)	292,504	(886,777)
Net Increase (Decrease) in Net Assets Resulting from Operations	370,733	(486,784)
Distributions
ETF Shares	(29,163)	(66,907)
Admiral Shares	(10,324)	(19,170)
Total Distributions	(39,487)	(86,077)
Capital Share Transactions
ETF Shares	(132,659)	(590,097)
Admiral Shares	(17,561)	44,413
Net Increase (Decrease) from Capital Share Transactions	(150,220)	(545,684)
Total Increase (Decrease)	181,026	(1,118,545)
Net Assets
Beginning of Period	3,883,737	5,002,282
End of Period	4,064,763	3,883,737

See accompanying Notes, which are an integral part of the Financial Statements.

Materials Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$166.09	$187.02	$134.84	$122.80	$134.33	$124.29
Investment Operations
Net Investment Income¹	1.558	3.213	2.801	2.522	2.501	2.285
Net Realized and Unrealized Gain (Loss) on Investments	15.490	(20.893)	52.014	12.053	(11.541)	9.961
Total from Investment Operations	17.048	(17.680)	54.815	14.575	(9.040)	12.246
Distributions
Dividends from Net Investment Income	(1.738)	(3.250)	(2.635)	(2.535)	(2.490)	(2.206)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.738)	(3.250)	(2.635)	(2.535)	(2.490)	(2.206)
Net Asset Value, End of Period	$181.40	$166.09	$187.02	$134.84	$122.80	$134.33
Total Return	10.39%	-9.55%	41.00%	12.12%	-6.73%	9.91%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$2,999	$2,889	$3,924	$1,676	$1,921	$2,749
Ratio of Total Expenses to Average Net Assets	0.10%²	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.83%	1.76%	1.66%	2.05%	2.04%	1.71%
Portfolio Turnover Rate³	2%	4%	5%	4%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$84.62	$95.29	$68.70	$62.57	$68.45	$63.33
Investment Operations
Net Investment Income¹	.792	1.652	1.424	1.294	1.282	1.159
Net Realized and Unrealized Gain (Loss) on Investments	7.894	(10.665)	26.507	6.130	(5.892)	5.084
Total from Investment Operations	8.686	(9.013)	27.931	7.424	(4.610)	6.243
Distributions
Dividends from Net Investment Income	(.886)	(1.657)	(1.341)	(1.294)	(1.270)	(1.123)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.886)	(1.657)	(1.341)	(1.294)	(1.270)	(1.123)
Net Asset Value, End of Period	$92.42	$84.62	$95.29	$68.70	$62.57	$68.45
Total Return²	10.39%	-9.56%	41.04%	12.14%	-6.74%	9.91%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$1,066	$994	$1,078	$583	$482	$452
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	1.82%	1.78%	1.67%	2.08%	2.04%	1.71%
Portfolio Turnover Rate⁴	2%	4%	5%	4%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

Materials Index Fund

Notes to Financial Statements

Vanguard Materials 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 NYSE Arca; they can be purchased and sold through a broker.

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.

Materials Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

100

Materials Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $148,000, 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 six months ended February 28, 2023, custodian fee offset arrangements reduced the fund’s expenses by $2,000 (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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	4,056,718	—	—	4,056,718
Temporary Cash Investments	11,366	—	—	11,366
Total	4,068,084	—	—	4,068,084
Derivative Financial Instruments
Liabilities
Swap Contracts	—	11	—	11

E.	As of February 28, 2023, 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	3,862,061
Gross Unrealized Appreciation	575,499
Gross Unrealized Depreciation	(369,476)
Net Unrealized Appreciation (Depreciation)	206,023

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $123,718,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023;

101

Materials Index Fund

should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended February 28, 2023, the fund purchased $221,989,000 of investment securities and sold $377,273,000 of investment securities, other than temporary cash investments. Purchases and sales include $127,112,000 and $260,425,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $399,000 and sales were $39,000, resulting in net realized gain of $0; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	129,144	736	524,091	2,812
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(261,803)	(1,600)	(1,114,188)	(6,400)
Net Increase (Decrease)—ETF Shares	(132,659)	(864)	(590,097)	(3,588)
Admiral Shares
Issued	116,118	1,312	305,754	3,264
Issued in Lieu of Cash Distributions	9,159	111	17,067	189
Redeemed	(142,838)	(1,643)	(278,408)	(3,013)
Net Increase (Decrease)—Admiral Shares	(17,561)	(220)	44,413	440

H.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

102

Utilities Index Fund

Fund Allocation

As of February 28, 2023

Electric Utilities	60.6%
Gas Utilities	4.7
Independent Power and Renewable Electricity Producers	3.7
Multi-Utilities	26.6
Water Utilities	4.4

103

Utilities Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of February 28, 2023

		Shares	Market Value• ($000)
Common Stocks (99.6%)
Electric Utilities (60.3%)
	NextEra Energy Inc.	12,763,849	906,616
	Duke Energy Corp.	4,946,214	466,230
	Southern Co.	6,992,602	440,954
	American Electric Power Co. Inc.	3,300,534	290,348
	Exelon Corp.	6,382,763	257,800
	Xcel Energy Inc.	3,514,986	226,963
	Eversource Energy	2,237,155	168,592
	Edison International	2,452,705	162,394
	Constellation Energy Corp.	2,100,403	157,299
	FirstEnergy Corp.	3,488,733	137,945
	Entergy Corp.	1,306,963	134,447
^*	PG&E Corp.	8,475,126	132,381
	PPL Corp.	4,729,322	128,023
	Evergy Inc.	1,474,289	86,703
	Alliant Energy Corp.	1,612,230	82,659
	Pinnacle West Capital Corp.	726,679	53,542
	NRG Energy Inc.	1,479,605	48,516
	OGE Energy Corp.	1,285,898	45,932
	IDACORP Inc.	324,738	33,578
	Hawaiian Electric Industries Inc.	703,083	28,440
	Portland General Electric Co.	573,360	27,407
	PNM Resources Inc.	523,966	25,674
	ALLETE Inc.	367,094	22,462
	Avangrid Inc.	496,604	19,382
	Otter Tail Corp.	240,626	17,058
	MGE Energy Inc.	232,243	16,438
			4,117,783
Gas Utilities (4.7%)
	Atmos Energy Corp.	904,980	102,091
	UGI Corp.	1,347,114	50,153
	National Fuel Gas Co.	558,179	31,972
	New Jersey Resources Corp.	619,370	31,606

		Shares	Market Value• ($000)
	ONE Gas Inc.	347,688	27,871
	Southwest Gas Holdings Inc.	430,753	27,142
	Spire Inc.	337,105	23,732
	Chesapeake Utilities Corp.	113,925	14,593
	Northwest Natural Holding Co.	225,438	10,898
			320,058
Independent Power and Renewable Electricity Producers (3.7%)
	AES Corp.	4,289,725	105,870
	Vistra Corp.	2,299,754	50,572
¹	NextEra Energy Partners LP	555,798	36,827
	Ormat Technologies Inc. (XNYS)	288,152	24,355
	Clearway Energy Inc. Class C	532,003	16,710
^*,1	Sunnova Energy International Inc.	664,749	11,819
	Clearway Energy Inc. Class A	217,732	6,469
^*	Altus Power Inc.	309,687	2,097
			254,719
Multi-Utilities (26.5%)
	Sempra Energy (XNYS)	2,018,941	302,760
	Dominion Energy Inc.	5,352,098	297,684
	Consolidated Edison Inc.	2,279,374	203,662
	Public Service Enterprise Group Inc.	3,204,682	193,659
	WEC Energy Group Inc.	2,026,016	179,627
	DTE Energy Co.	1,244,397	136,523
	Ameren Corp.	1,560,443	129,064
	CenterPoint Energy Inc.	4,043,431	112,488
	CMS Energy Corp.	1,864,243	109,935
	NiSource Inc.	2,608,460	71,550
	Black Hills Corp.	417,978	25,668
	NorthWestern Corp.	371,340	21,456
	Avista Corp.	474,226	19,500

		Shares	Market Value• ($000)
	Unitil Corp.	103,155	5,603
			1,809,179
Water Utilities (4.4%)
	American Water Works Co. Inc.	1,167,834	163,940
	Essential Utilities Inc.	1,600,478	68,468
	American States Water Co.	237,378	21,198
	California Water Service Group	352,320	20,167
	SJW Group	155,691	11,901
	Middlesex Water Co.	113,295	8,667
	York Water Co.	91,666	3,986
			298,327
Total Common Stocks (Cost $6,791,411)			6,800,066
Temporary Cash Investments (0.3%)
Money Market Fund (0.3%)
^2,3	Vanguard Market Liquidity Fund, 4.640% (Cost $18,129)	181,313	18,129
Total Investments (99.9%) (Cost $6,809,540)			6,818,195
Other Assets and Liabilities—Net (0.1%)			7,069
Net Assets (100.0%)			6,825,264
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 $17,255,000.
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 $17,614,000 was received for securities on loan.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)¹ (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Ameren Corp.	1/31/24	GSI	8,583	(4.573)	—	(326)
PG&E Corp.	8/31/23	BANA	17,182	(4.569)	—	(62)
					—	(388)

1	Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	1M—1-month.
	BANA—Bank of America, N.A.
	GSI—Goldman Sachs International.

See accompanying Notes, which are an integral part of the Financial Statements.

104

Utilities Index Fund

Statement of Assets and Liabilities

As of February 28, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value¹
Unaffiliated Issuers (Cost $6,791,411)	6,800,066
Affiliated Issuers (Cost $18,129)	18,129
Total Investments in Securities	6,818,195
Investment in Vanguard	261
Cash Collateral Pledged—Over-the-Counter Swap Contracts	190
Receivables for Investment Securities Sold	58,739
Receivables for Accrued Income	33,274
Receivables for Capital Shares Issued	436
Total Assets	6,911,095
Liabilities
Due to Custodian	10,900
Payables for Investment Securities Purchased	20,107
Collateral for Securities on Loan	17,614
Payables for Capital Shares Redeemed	36,569
Payables to Vanguard	253
Unrealized Depreciation—Over-the-Counter Swap Contracts	388
Total Liabilities	85,831
Net Assets	6,825,264
1 Includes $17,255,000 of securities on loan.
At February 28, 2023, net assets consisted of:

Paid-in Capital	6,891,077
Total Distributable Earnings (Loss)	(65,813)
Net Assets	6,825,264

ETF Shares—Net Assets
Applicable to 36,602,261 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	5,209,962
Net Asset Value Per Share—ETF Shares	$142.34

Admiral Shares—Net Assets
Applicable to 22,619,216 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,615,302
Net Asset Value Per Share—Admiral Shares	$71.41

See accompanying Notes, which are an integral part of the Financial Statements.

105

Utilities Index Fund

Statement of Operations


	Six Months Ended February 28, 2023
	($000)
Investment Income
Income
Dividends	113,675
Interest¹	268
Securities Lending—Net	11
Total Income	113,954
Expenses
The Vanguard Group—Note B
Investment Advisory Services	86
Management and Administrative— ETF Shares	2,429
Management and Administrative— Admiral Shares	790
Marketing and Distribution— ETF Shares	130
Marketing and Distribution— Admiral Shares	43
Custodian Fees	41
Shareholders’ Reports—ETF Shares	120
Shareholders’ Reports—Admiral Shares	9
Trustees’ Fees and Expenses	2
Other Expenses	6
Total Expenses	3,656
Expenses Paid Indirectly	(2)
Net Expenses	3,654
Net Investment Income	110,300
Realized Net Gain (Loss)
Investment Securities Sold^1,2	86,504
Swap Contracts	2,306
Realized Net Gain (Loss)	88,810
Change in Unrealized Appreciation (Depreciation)
Investment Securities¹	(1,025,384)
Swap Contracts	(41)
Change in Unrealized Appreciation (Depreciation)	(1,025,425)
Net Increase (Decrease) in Net Assets Resulting from Operations	(826,315)

1	Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $268,000, less than $1,000, less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $103,099,000 of net gain (loss) resulting from in-kind redemptions.

Statement of Changes in Net Assets


	Six Months Ended February 28, 2023	Year Ended August 31, 2022
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	110,300	209,358
Realized Net Gain (Loss)	88,810	374,119
Change in Unrealized Appreciation (Depreciation)	(1,025,425)	173,877
Net Increase (Decrease) in Net Assets Resulting from Operations	(826,315)	757,354
Distributions
ETF Shares	(92,504)	(157,667)
Admiral Shares	(28,974)	(47,893)
Total Distributions	(121,478)	(205,560)
Capital Share Transactions
ETF Shares	(96,022)	486,753
Admiral Shares	(38,115)	161,161
Net Increase (Decrease) from Capital Share Transactions	(134,137)	647,914
Total Increase (Decrease)	(1,081,930)	1,199,708
Net Assets
Beginning of Period	7,907,194	6,707,486
End of Period	6,825,264	7,907,194

See accompanying Notes, which are an integral part of the Financial Statements.

106

Utilities Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$161.46	$149.52	$129.35	$139.09	$119.32	$120.75
Investment Operations
Net Investment Income¹	2.262	4.393	4.310	4.306	4.087	3.757
Net Realized and Unrealized Gain (Loss) on Investments	(18.904)	11.897	20.048	(9.802)	19.562	(1.434)
Total from Investment Operations	(16.642)	16.290	24.358	(5.496)	23.649	2.323
Distributions
Dividends from Net Investment Income	(2.478)	(4.350)	(4.188)	(4.244)	(3.879)	(3.753)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(2.478)	(4.350)	(4.188)	(4.244)	(3.879)	(3.753)
Net Asset Value, End of Period	$142.34	$161.46	$149.52	$129.35	$139.09	$119.32
Total Return	-10.41%	11.18%	19.19%	-4.08%	20.17%	2.05%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,210	$6,030	$5,126	$4,014	$4,107	$2,809
Ratio of Total Expenses to Average Net Assets	0.10%²	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	3.01%	2.87%	3.09%	3.18%	3.22%	3.25%
Portfolio Turnover Rate³	2%	3%	6%	5%	4%	4%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	Year Ended August 31,
For a Share Outstanding Throughout Each Period	Six Months Ended February 28, 2023	2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$81.00	$75.01	$64.89	$69.78	$59.86	$60.58
Investment Operations
Net Investment Income¹	1.133	2.212	2.166	2.163	2.038	1.883
Net Realized and Unrealized Gain (Loss) on Investments	(9.480)	5.961	10.055	(4.924)	9.828	(.719)
Total from Investment Operations	(8.347)	8.173	12.221	(2.761)	11.866	1.164
Distributions
Dividends from Net Investment Income	(1.243)	(2.183)	(2.101)	(2.129)	(1.946)	(1.884)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.243)	(2.183)	(2.101)	(2.129)	(1.946)	(1.884)
Net Asset Value, End of Period	$71.41	$81.00	$75.01	$64.89	$69.78	$59.86
Total Return²	-10.40%	11.22%	19.22%	-4.05%	20.19%	2.04%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$1,615	$1,877	$1,582	$1,281	$1,266	$868
Ratio of Total Expenses to Average Net Assets	0.10%³	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	3.01%	2.88%	3.10%	3.18%	3.22%	3.25%
Portfolio Turnover Rate⁴	2%	3%	6%	5%	4%	4%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
4	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

See accompanying Notes, which are an integral part of the Financial Statements.

107

Utilities Index Fund

Notes to Financial Statements

Vanguard Utilities 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 NYSE Arca; they can be purchased and sold through a broker.

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.

108

Utilities Index Fund

For the six months ended February 28, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

109

Utilities Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2023, the fund had contributed to Vanguard capital in the amount of $261,000, representing less than 0.01% of the fund’s net assets and 0.10% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.	The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended February 28, 2023, custodian fee offset arrangements reduced the fund’s expenses by $2,000 (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.).

The following table summarizes the market value of the fund’s investments and derivatives as of February 28, 2023, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	6,800,066	—	—	6,800,066
Temporary Cash Investments	18,129	—	—	18,129
Total	6,818,195	—	—	6,818,195
Derivative Financial Instruments
Liabilities
Swap Contracts	—	388	—	388

E.	As of February 28, 2023, 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	6,825,077
Gross Unrealized Appreciation	299,983
Gross Unrealized Depreciation	(306,865)
Net Unrealized Appreciation (Depreciation)	(6,882)

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2022, the fund had available capital losses totaling $182,839,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending August 31, 2023;

110

Utilities Index Fund

should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended February 28, 2023, the fund purchased $543,522,000 of investment securities and sold $687,195,000 of investment securities, other than temporary cash investments. Purchases and sales include $393,110,000 and $488,220,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended February 28, 2023, such purchases were $0 and sales were $805,000, resulting in net realized loss of $46,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

G.	Capital share transactions for each class of shares were:

	Six Months Ended February 28, 2023		Year Ended August 31, 2022
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
ETF Shares
Issued	393,876	2,579	1,904,515	12,392
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(489,898)	(3,325)	(1,417,762)	(9,325)
Net Increase (Decrease)—ETF Shares	(96,022)	(746)	486,753	3,067
Admiral Shares
Issued	185,089	2,414	493,216	6,363
Issued in Lieu of Cash Distributions	22,193	290	35,820	486
Redeemed	(245,397)	(3,259)	(367,875)	(4,761)
Net Increase (Decrease)—Admiral Shares	(38,115)	(555)	161,161	2,088

H.	Management has determined that no events or transactions occurred subsequent to February 28, 2023, that would require recognition or disclosure in these financial statements.

111

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You can obtain a free copy of Vanguard’s proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC’s website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov.

You can review information about your fund on the SEC’s website, and you can receive copies of this information, for a fee, by sending a request via email addressed to [email protected].

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.

Q4832 042023