Contents

About Your Fund’s Expenses	1
Financial Statements	4
Trustees Approve Advisory Arrangement	32
Liquidity Risk Management	34

About Your Fund’s Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

•

Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“

•

Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

1

Six Months Ended April 30, 2022
	Beginning Account Value 10/31/2021	Ending Account Value 4/30/2022	Expenses Paid During Period
Based on Actual Fund Return
Global ex-U.S. Real Estate Index Fund
ETF Shares	$1,000.00	$899.50	$0.57
Admiral™ Shares	1,000.00	899.90	0.57
Institutional Shares	1,000.00	900.00	0.52
Based on Hypothetical 5% Yearly Return
Global ex-U.S. Real Estate Index Fund
ETF Shares	$1,000.00	$1,024.20	$0.60
Admiral Shares	1,000.00	1,024.20	0.60
Institutional Shares	1,000.00	1,024.25	0.55

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.12% for ETF Shares, 0.12% for Admiral Shares and 0.11% for Institutional Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

2

Global ex-U.S. Real Estate Index Fund

Fund Allocation

As of April 30, 2022

Japan	20.8%
Australia	10.6
Hong Kong	9.0
United Kingdom	8.6
China	8.4
Singapore	6.5
Germany	5.0
Sweden	3.6
Canada	3.3
France	2.6
Israel	2.2
Belgium	2.2
Switzerland	1.8
India	1.6
United Arab Emirates	1.4
South Africa	1.4
Philippines	1.4
Thailand	1.1
Taiwan	1.1
Other	7.4

The table reflects the fund’s investments, except for short-term investments and derivatives.

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

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Global ex-U.S. Real Estate Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of April 30, 2022

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

		Shares	Market Value• ($000)
Common Stocks (98.6%)
Australia (10.4%)
	Goodman Group	8,120,331	135,154
	Scentre Group	24,793,796	51,658
	Dexus (XASX)	5,138,932	40,179
	Stockland	11,391,165	32,971
	GPT Group	9,140,752	32,494
	Mirvac Group	18,836,756	31,836
	Lendlease Corp. Ltd.	3,292,342	28,203
	Vicinity Centres	18,490,006	24,126
	Charter Hall Group	2,223,847	23,901
	Shopping Centres Australasia Property Group	5,306,285	11,357
	Charter Hall Long Wale REIT	2,894,320	10,863
	National Storage REIT	5,144,555	9,318
	Charter Hall Retail REIT	2,493,579	7,789
	Centuria Industrial REIT	2,577,444	7,183
	HomeCo Daily Needs REIT	6,948,286	6,982
	BWP Trust	2,309,528	6,713
	Waypoint REIT Ltd.	3,465,129	6,532
	Centuria Capital Group	3,007,853	5,842
	Ingenia Communities Group	1,740,421	5,730
	Arena REIT	1,644,853	5,566
	Lifestyle Communities Ltd.	452,721	4,771
	Charter Hall Social Infrastructure REIT	1,576,577	4,463
	Growthpoint Properties Australia Ltd.	1,395,799	4,293
	Abacus Property Group	1,821,109	4,179
	Home Consortium Ltd.	869,960	4,102
	Cromwell Property Group	6,711,184	4,028
	Rural Funds Group	1,814,003	3,900
	Irongate Group	2,486,859	3,363
	Centuria Office REIT	2,101,461	3,240
	Hotel Property Investments	916,440	2,622
	Dexus Industria REIT	1,062,991	2,543
	GDI Property Group	2,410,897	1,917
	HealthCo REIT	925,729	1,287

		Shares	Market Value• ($000)
	Cedar Woods Properties Ltd.	310,885	1,018
	Ram Essential Services Prope	1,245,625	848
			530,971
Austria (0.4%)
	IMMOFINANZ AG	347,656	8,411
	CA Immobilien Anlagen AG	223,034	6,299
	S IMMO AG	201,566	4,838
			19,548
Belgium (2.2%)
	Warehouses De Pauw CVA	670,658	25,800
	Aedifica SA	173,317	20,544
	Cofinimmo SA	140,518	18,870
	VGP NV	42,794	11,131
	Shurgard Self Storage SA	118,741	6,871
	Montea NV	48,602	5,803
	Befimmo SA	116,240	5,802
	Xior Student Housing NV	91,046	4,863
	Retail Estates NV	54,108	4,121
	Intervest Offices & Warehouses NV	112,573	3,346
	Care Property Invest NV	122,756	3,122
1	Immobel SA	19,501	1,407
			111,680
Brazil (0.5%)
*	BR Malls Participacoes SA	4,020,653	7,718
	Multiplan Empreendimentos Imobiliarios SA	1,267,210	6,318
*	Iguatemi SA (BVMF)	782,421	3,322
	Aliansce Sonae Shopping Centers SA	630,037	2,689
	JHSF Participacoes SA	1,434,596	1,904
	BR Properties SA	890,371	1,608
	LOG Commercial Properties e Participacoes SA	198,714	962

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Global ex-U.S. Real Estate Index Fund

5

Global ex-U.S. Real Estate Index Fund

6

Global ex-U.S. Real Estate Index Fund

7

Global ex-U.S. Real Estate Index Fund

8

Global ex-U.S. Real Estate Index Fund

9

Global ex-U.S. Real Estate Index Fund

10

Global ex-U.S. Real Estate Index Fund

11

Global ex-U.S. Real Estate Index Fund

12

Global ex-U.S. Real Estate Index Fund

13

Global ex-U.S. Real Estate Index Fund

14

Global ex-U.S. Real Estate Index Fund

		Shares	Market Value• ($000)
Temporary Cash Investments (4.4%)
Money Market Fund (4.4%)
6,7	Vanguard Market Liquidity Fund, 0.409% (Cost $224,075)	2,241,013	224,079
Total Investments (103.0%) (Cost $5,729,866)			5,237,527
Other Assets and Liabilities—Net (-3.0%)			(153,977)
Net Assets (100%)			5,083,550
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 $150,270,000.
2	Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2022, the aggregate value was $127,710,000, representing 2.5% of net assets.
3	Security value determined using significant unobservable inputs.
4	“Other” represents securities that are not classified by the fund’s benchmark index.
5	Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
6	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
7	Collateral of $207,047,000 was received for securities on loan, of which $204,946,000 is held in Vanguard Market Liquidity Fund and $2,101,000 is held in cash.

GDR—Global Depositary Receipt.

NVDR—Non-Voting Depository Receipt.

REIT—Real Estate Investment Trust.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
			($000)
	Expiration	Number of Long (Short) Contracts	Notional Amount	Value and Unrealized Appreciation (Depreciation)
Long Futures Contracts
E-mini S&P 500 Index	June 2022	69	14,240	(1,030)
MSCI Emerging Markets Index	June 2022	780	41,239	141
Topix Index	June 2022	128	18,769	946
				57

    

15

Global ex-U.S. Real Estate Index Fund

Forward Currency Contracts
	Contract Settlement Date	Contract Amount (000)				Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
Counterparty		Receive		Deliver
Royal Bank of Canada	6/15/22	AUD	8,397	USD	6,314	—	(376)
Toronto-Dominion Bank	6/15/22	CAD	5,323	USD	4,266	—	(123)
State Street Bank & Trust Co.	6/15/22	EUR	9,101	USD	9,996	—	(374)
JPMorgan Chase Bank, N.A.	6/15/22	EUR	2,679	USD	2,959	—	(126)
Standard Chartered Bank	6/15/22	GBP	4,877	USD	6,389	—	(256)
Royal Bank of Canada	6/15/22	HKD	41,808	USD	5,347	—	(14)
JPMorgan Chase Bank, N.A.	6/15/22	HKD	10,407	USD	1,332	—	(4)
Bank of America, N.A.	6/15/22	JPY	808,710	USD	7,009	—	(767)
JPMorgan Chase Bank, N.A.	6/15/22	JPY	379,903	USD	3,122	—	(190)
JPMorgan Chase Bank, N.A.	6/2/22	JPY	399,630	USD	3,051	32	—
Deutsche Bank AG	6/15/22	JPY	313,760	USD	2,558	—	(137)
State Street Bank & Trust Co.	6/2/22	JPY	243,425	USD	1,903	—	(26)
Royal Bank of Canada	6/2/22	SGD	4,245	USD	3,112	—	(42)
State Street Bank & Trust Co.	6/15/22	USD	6,020	AUD	8,194	226	—
Royal Bank of Canada	6/15/22	USD	1,316	AUD	1,791	50	—
Royal Bank of Canada	6/15/22	USD	4,813	CAD	6,152	25	—
Bank of America, N.A.	6/2/22	USD	2,802	CHF	2,610	114	—
JPMorgan Chase Bank, N.A.	6/15/22	USD	564	CHF	516	33	—
State Street Bank & Trust Co.	6/15/22	USD	16,932	EUR	15,468	579	—
Royal Bank of Canada	6/2/22	USD	6,063	EUR	5,742	—	(3)
Deutsche Bank AG	6/15/22	USD	127	EUR	116	4	—
Deutsche Bank AG	6/15/22	USD	8,772	GBP	6,626	440	—
Bank of America, N.A.	6/2/22	USD	6,820	HKD	53,482	—	(1)
Royal Bank of Canada	6/15/22	USD	3,839	HKD	29,990	13	—
UBS AG	6/15/22	USD	6,367	JPY	775,387	382	—
Bank of America, N.A.	6/2/22	USD	3,826	JPY	480,633	119	—
Royal Bank of Canada	6/15/22	USD	3,763	JPY	457,939	229	—
State Street Bank & Trust Co.	5/9/22	USD	111	KWD	34	—	—
State Street Bank & Trust Co.	5/5/22	USD	—	MYR	1	—	—
JPMorgan Chase Bank, N.A.	6/15/22	USD	3,158	SGD	4,296	51	—
Barclays Bank plc	6/15/22	USD	3,243	ZAR	47,694	238	—
						2,535	(2,439)

AUD—Australian dollar.

CAD—Canadian dollar.

CHF—Swiss franc.

EUR—euro.

GBP—British pound.

HKD—Hong Kong dollar.

JPY—Japanese yen.

KWD—Kuwaiti Dinar

MYR—Malaysian ringgit.

SGD—Singapore dollar.

USD—U.S. dollar.

ZAR—South African rand.

At April 30, 2022, the counterparties had deposited in segregated accounts securities with a value of $445,000 in connection with open forward currency contracts.

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

16

Global ex-U.S. Real Estate Index Fund

Statement of Assets and Liabilities

As of April 30, 2022

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $5,484,670)	4,987,410
Affiliated Issuers (Cost $245,196)	250,117
Total Investments in Securities	5,237,527
Investment in Vanguard	181
Cash	2,101
Cash Collateral Pledged—Futures Contracts	4,017
Cash Collateral Pledged—Forward Currency Contracts	570
Foreign Currency, at Value (Cost $22,832)	22,100
Receivables for Investment Securities Sold	1,540
Receivables for Accrued Income	27,133
Receivables for Capital Shares Issued	68
Unrealized Appreciation—Forward Currency Contracts	2,535
Total Assets	5,297,772
Liabilities
Due to Custodian	1,383
Payables for Investment Securities Purchased	854
Collateral for Securities on Loan	207,047
Payables for Capital Shares Redeemed	164
Payables to Vanguard	256
Variation Margin Payable—Futures Contracts	67
Unrealized Depreciation—Forward Currency Contracts	2,439
Deferred Foreign Capital Gains Taxes	2,012
Total Liabilities	214,222
Net Assets	5,083,550
1 Includes $150,270 of securities on loan.

17

Global ex-U.S. Real Estate Index Fund

Statement of Assets and Liabilities (continued)
At April 30, 2022, net assets consisted of:
($000s, except shares and per-share amounts)	Amount
Paid-in Capital	6,423,283
Total Distributable Earnings (Loss)	(1,339,733)
Net Assets	5,083,550
ETF Shares—Net Assets
Applicable to 91,172,420 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,461,185
Net Asset Value Per Share—ETF Shares	$48.93
Admiral Shares—Net Assets
Applicable to 14,807,402 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	439,402
Net Asset Value Per Share—Admiral Shares	$29.67
Institutional Shares—Net Assets
Applicable to 1,852,025 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	182,963
Net Asset Value Per Share—Institutional Shares	$98.79

  

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

18

Global ex-U.S. Real Estate Index Fund

Statement of Operations

	Six Months Ended April 30, 2022
	($000)
Investment Income
Income
Dividends—Unaffiliated Issuers1	74,895
Dividends—Affiliated Issuers	386
Interest—Affiliated Issuers	14
Securities Lending—Net	1,770
Total Income	77,065
Expenses
The Vanguard Group—Note B
Investment Advisory Services	274
Management and Administrative—ETF Shares	2,167
Management and Administrative—Admiral Shares	212
Management and Administrative—Institutional Shares	85
Marketing and Distribution—ETF Shares	46
Marketing and Distribution—Admiral Shares	13
Marketing and Distribution—Institutional Shares	3
Custodian Fees	284
Shareholders’ Reports—ETF Shares	120
Shareholders’ Reports—Admiral Shares	7
Shareholders’ Reports—Institutional Shares	—
Trustees’ Fees and Expenses	1
Other Expenses	23
Total Expenses	3,235
Net Investment Income	73,830
Realized Net Gain (Loss)
Capital Gains Distributions Received – Affiliated Issuers	—
Investment Securities Sold—Unaffiliated Issuers2,3	(102,329)
Investment Securities Sold—Affiliated Issuers	514
Futures Contracts	(7,824)
Forward Currency Contracts	748
Foreign Currencies	(975)
Realized Net Gain (Loss)	(109,866)

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Global ex-U.S. Real Estate Index Fund

Statement of Operations (continued)
	Six Months Ended April 30, 2022
	($000)
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers4	(532,621)
Investment Securities—Affiliated Issuers	(1,654)
Futures Contracts	911
Forward Currency Contracts	248
Foreign Currencies	(2,188)
Change in Unrealized Appreciation (Depreciation)	(535,304)
Net Increase (Decrease) in Net Assets Resulting from Operations	(571,340)

1	Dividends are net of foreign withholding taxes of $8,725,000.
2	Realized gain (loss) is net of foreign capital gain taxes of $83,000 .
3	Includes $3,598,000 of net gain (loss) resulting from in-kind redemptions.
4	The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($417,000).

  

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

20

Global ex-U.S. Real Estate Index Fund

Statement of Changes in Net Assets

	Six Months Ended April 30, 2022		Year Ended October 31, 2021
	($000)		($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	73,830		220,531
Realized Net Gain (Loss)	(109,866)		79,646
Change in Unrealized Appreciation (Depreciation)	(535,304)		874,972
Net Increase (Decrease) in Net Assets Resulting from Operations	(571,340)		1,175,149
Distributions
ETF Shares	(254,915)		(99,846)
Admiral Shares	(25,162)		(9,656)
Institutional Shares	(10,731)		(5,091)
Total Distributions	(290,808)		(114,593)
Capital Share Transactions
ETF Shares	146,916		(70,397)
Admiral Shares	14,339		(13,827)
Institutional Shares	1,736		(38,740)
Net Increase (Decrease) from Capital Share Transactions	162,991		(122,964)
Total Increase (Decrease)	(699,157)		937,592
Net Assets
Beginning of Period	5,782,707		4,845,115
End of Period	5,083,550		5,782,707

  

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

21

Global ex-U.S. Real Estate Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2022	Year Ended October 31,
		2021	2020	2019	2018	2017
Net Asset Value, Beginning of Period	$57.39	$47.04	$60.79	$52.99	$59.49	$53.35
Investment Operations
Net Investment Income1	.721	2.145	1.761	2.033	2.672	1.900
Net Realized and Unrealized Gain (Loss) on Investments	(6.286)	9.312	(11.864)	7.969	(6.240)	6.325
Total from Investment Operations	(5.565)	11.457	(10.103)	10.002	(3.568)	8.225
Distributions
Dividends from Net Investment Income	(2.895)	(1.107)	(3.647)	2.202	(2.932)	(2.085)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(2.895)	(1.107)	(3.647)	2.202	(2.932)	(2.085)
Net Asset Value, End of Period	$48.93	$57.39	$47.04	$60.79	$52.99	$59.49
Total Return	-10.05%	24.47%	-17.71%	19.47%	-6.42%	16.13%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,461	$5,071	$4,219	$5,945	$5,270	$5,122
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%	0.12%	0.12%	0.14%
Ratio of Net Investment Income to Average Net Assets	2.71%	3.80%	3.44%	3.54%	4.51%	3.44%
Portfolio Turnover Rate2	4%	7%	11%	7%	7%	6%
The expense ratio and net investment income ratio for the current period have been annualized.

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

  

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

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Global ex-U.S. Real Estate Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2022	Year Ended October 31,
		2021	2020	2019	2018	2017
Net Asset Value, Beginning of Period	$34.80	$28.51	$36.84	$32.11	$36.05	$32.33
Investment Operations
Net Investment Income1	.436	1.302	1.079	1.236	1.620	1.141
Net Realized and Unrealized Gain (Loss) on Investments	(3.811)	5.656	(7.199)	4.828	(3.784)	3.844
Total from Investment Operations	(3.375)	6.958	(6.120)	6.064	(2.164)	4.985
Distributions
Dividends from Net Investment Income	(1.755)	(.668)	(2.210)	1.334	(1.776)	(1.265)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.755)	(.668)	(2.210)	1.334	(1.776)	(1.265)
Net Asset Value, End of Period	$29.67	$34.80	$28.51	$36.84	$32.11	$36.05
Total Return2	-10.01%	24.48%	-17.71%	19.46%	-6.43%	16.15%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$439	$499	$421	$617	$475	$453
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%	0.12%	0.12%	0.14%
Ratio of Net Investment Income to Average Net Assets	2.71%	3.80%	3.49%	3.55%	4.51%	3.44%
Portfolio Turnover Rate3	4%	7%	11%	7%	7%	6%
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 transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

  

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

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Global ex-U.S. Real Estate Index Fund

Financial Highlights

Institutional Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2022	Year Ended October 31,
		2021	2020	2019	2018	2017
Net Asset Value, Beginning of Period	$115.86	$94.98	$122.73	$106.98	$120.11	$107.71
Investment Operations
Net Investment Income1	1.458	4.376	3.646	4.143	5.543	3.889
Net Realized and Unrealized Gain (Loss) on Investments	(12.682)	18.763	(24.030)	16.064	(12.740)	12.741
Total from Investment Operations	(11.224)	23.139	(20.384)	20.207	(7.197)	16.630
Distributions
Dividends from Net Investment Income	(5.846)	(2.259)	(7.366)	4.457	(5.933)	(4.230)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(5.846)	(2.259)	(7.366)	4.457	(5.933)	(4.230)
Net Asset Value, End of Period	$98.79	$115.86	$94.98	$122.73	$106.98	$120.11
Total Return2	-10.00%	24.44%	-17.71%	19.46%	-6.42%	16.17%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$183	$213	$205	$232	$115	$156
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%	0.11%	0.11%	0.11%	0.12%
Ratio of Net Investment Income to Average Net Assets	2.72%	3.84%	3.55%	3.57%	4.52%	3.46%
Portfolio Turnover Rate3	4%	7%	11%	7%	7%	6%
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 transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
3	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

  

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

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Global ex-U.S. Real Estate Index Fund

Notes to Financial Statements

Vanguard Global ex-U.S. Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers three classes of shares: ETF Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on Nasdaq; 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 at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.

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

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. 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

25

Global ex-U.S. Real Estate Index Fund

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 April 30, 2022, the fund’s average investments in long and short futures contracts represented 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on forward currency contracts.

During the six months ended April 30, 2022, the fund’s average investment in forward currency contracts represented 2% of net assets, based on the average of the notional amounts at each quarter-end during the period.

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute 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.

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Global ex-U.S. Real Estate Index Fund

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

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

8. 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 April 30, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.

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Global ex-U.S. Real Estate Index Fund

9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on capital share transactions are credited to paid-in capital.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Such tax reclaims received and related professional fees incurred during the year, if any, are included in dividend income and other expenses, respectively. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

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

B.

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

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At April 30, 2022, the fund had contributed to Vanguard capital in the amount of $181,000, representing less than 0.01% of the fund’s net assets and 0.07% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.

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

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

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

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

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Global ex-U.S. Real Estate Index Fund

The following table summarizes the market value of the fund’s investments and derivatives as of April 30, 2022, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks—North and South America	236,413	—	—	236,413
Common Stocks—Other	26,873	4,723,326	26,836	4,777,035
Temporary Cash Investments	224,079	—	—	224,079
Total	487,365	4,723,326	26,836	5,237,527
Derivative Financial Instruments
Assets
Futures Contracts1	1,087	—	—	1,087
Forward Currency Contracts	—	2,535	—	2,535
Total	1,087	2,535	—	3,622
Liabilities
Futures Contracts1	1,030	—	—	1,030
Forward Currency Contracts	—	2,439	—	2,439
Total	1,030	2,439	—	3,469

1	Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

D.	At April 30, 2022, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:

    

Statement of Assets and Liabilities	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Unrealized Appreciation—Futures Contracts1	1,087	—	1,087
Unrealized Appreciation—Forward Currency Contracts	—	2,535	2,535
Total Assets	1,087	2,535	3,622
Unrealized Depreciation—Futures Contracts1	1,030	—	1,030
Unrealized Depreciation—Forward Currency Contracts	—	2,439	2,439
Total Liabilities	1,030	2,439	3,469

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.

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Global ex-U.S. Real Estate Index Fund

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2022, were:

Realized Net Gain (Loss) on Derivatives	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Futures Contracts	(7,824)	—	(7,824)
Forward Currency Contracts	—	748	748
Realized Net Gain (Loss) on Derivatives	(7,824)	748	(7,076)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	911	—	911
Forward Currency Contracts	—	248	248
Change in Unrealized Appreciation (Depreciation) on Derivatives	911	248	1,159

E.	As of April 30, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	5,951,412
Gross Unrealized Appreciation	375,872
Gross Unrealized Depreciation	(1,089,604)
Net Unrealized Appreciation (Depreciation)	(713,732)

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2021, the fund had available capital losses totaling $560,789,000 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 October 31, 2022; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F.	During the six months ended April 30, 2022, the fund purchased $356,543,000 of investment securities and sold $427,993,000 of investment securities, other than temporary cash investments. Purchases and sales include $148,240,000 and $15,394,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
G.	Capital share transactions for each class of shares were:

    

	Six Months Ended April 30, 2022			Year Ended October 31, 2021
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
ETF Shares
Issued1	163,593	3,119		561,742	9,958
Issued in Lieu of Cash Distributions	—	—		—	—
Redeemed2	(16,677)	(300)		(632,139)	(11,300)
Net Increase (Decrease)—ETF Shares	146,916	2,819		(70,397)	(1,342)

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Global ex-U.S. Real Estate Index Fund

	Six Months Ended April 30, 2022			Year Ended October 31, 2021
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
Admiral Shares
Issued1	33,840	1,052		79,528	2,366
Issued in Lieu of Cash Distributions	19,717	624		7,547	223
Redeemed2	(39,218)	(1,221)		(100,902)	(2,990)
Net Increase (Decrease)—Admiral Shares	14,339	455		(13,827)	(401)
Institutional Shares
Issued1	8	—		19,957	186
Issued in Lieu of Cash Distributions	1,728	16		1,747	15
Redeemed2	—	—		(60,444)	(524)
Net Increase (Decrease)—Institutional Shares	1,736	16		(38,740)	(323)

1	Includes purchase fees for fiscal 2022 and 2021 of $85,000 and $253,000, respectively (fund totals).
2	Net of redemption fees for fiscal 2022 and 2021 of $89,000 and $253,000, respectively (fund totals).

H.	Transactions during the period in affiliated underlying Vanguard funds were as follows:

		Current Period Transactions
	Oct. 31, 2021 Market Value ($000)	Purchases at Cost ($000)	Proceeds from Securities Sold ($000)	Realized Net Gain (Loss) ($000)	Change in Unrealized App. (Dep.) ($000)	Income ($000)	Capital Gain Distributions Received ($000)	Apr. 30, 2022 Market Value ($000)
Vanguard Market Liquidity Fund	191,399	NA1	NA1	(10)	(3)	14	—	224,079
Vanguard Real Estate ETF	28,276	10,133	11,244	524	(1,651)	386	—	26,038
Total	219,675	10,133	11,244	514	(1,654)	400	—	250,117

1	Not applicable—purchases and sales are for temporary cash investment purposes.

I.	Management has determined that no events or transactions occurred subsequent to April 30, 2022, that would require recognition or disclosure in these financial statements.

31

Trustees Approve Advisory Arrangement

The board of trustees of Vanguard Global ex-U.S. Real Estate Index Fund has renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity Index Group. The board determined that continuing the fund’s internalized management structure was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of the advisor’s investment staff, portfolio management process, and performance. This evaluation included information provided to the board by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor oversight and product management. The Portfolio Review Department met regularly with the advisor and made monthly presentations to the board during the fiscal year that directed the board’s focus to relevant information and topics.

The board, or an investment committee made up of board members, also received information throughout the year during advisor presentations. For each advisor presentation, the board was provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.

In addition, the board received periodic reports throughout the year, which included information about the fund’s performance relative to its peers and benchmark, as applicable, and updates, as needed, on the Portfolio Review Department’s ongoing assessment of the advisor.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.

Nature, extent, and quality of services

The board reviewed the quality of the fund’s investment management services over both the short and long term and took into account the organizational depth and stability of the advisor. The board considered that Vanguard has been managing investments for more than four decades. The Equity Index Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.

Investment performance

The board considered the short- and long-term performance of the fund, including any periods of outperformance or underperformance compared with its target index and peer group. The board concluded that the performance was such that the advisory arrangement should continue.

Cost

The board concluded that the fund’s expense ratio was below the average expense ratio charged by funds in its peer group and that the fund’s advisory expenses were also below the peer-group average.

32

The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.

The benefit of economies of scale

The board concluded that the fund’s arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

33

Liquidity Risk Management

Vanguard funds (except for the money market funds) have adopted and implemented a written liquidity risk management program (the “Program”) as required by Rule 22e-4 under the Investment Company Act of 1940. Rule 22e-4 requires that each fund adopt a program that is reasonably designed to assess and manage the fund’s liquidity risk, which is the risk that the fund could not meet redemption requests without significant dilution of remaining investors’ interests in the fund.

Assessment and management of a fund’s liquidity risk under the Program take into consideration certain factors, such as the fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flow projections during both normal and reasonably foreseeable stressed conditions, and its cash and cash-equivalent holdings and access to other funding sources. As required by the rule, the Program includes policies and procedures for classification of fund portfolio holdings in four liquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings of illiquid investments.

The board of trustees of Vanguard International Equity Index Funds approved the appointment of liquidity risk management program administrators responsible for administering Vanguard Global ex-U.S. Real Estate Index Fund's Program and for carrying out the specific responsibilities set forth in the Program, including reporting to the board on at least an annual basis regarding the Program’s operation, its adequacy, and the effectiveness of its implementation for the past year (the “Program Administrator Report”). The board has reviewed the Program Administrator Report covering the period from January 1, 2021, through December 31, 2021 (the “Review Period”). The Program Administrator Report stated that during the Review Period the Program operated and was implemented effectively to manage the fund’s liquidity risk.

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Fund Information > 800-662-7447

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This material may be used in conjunction with the offering of shares of any Vanguard fund only if preceded or accompanied by the fund’s current prospectus.

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].

© 2022 The Vanguard Group, Inc.
All rights reserved.
U.S. Patent Nos. 6,879,964.
Vanguard Marketing Corporation, Distributor.

Q7382 062022