Contents

About Your Fund’s Expenses	1
International Dividend Appreciation Index Fund	3
International High Dividend Yield Index Fund	22
Trustees Approve Advisory Arrangements	55
Liquidity Risk Management	57

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, 2023
	Beginning Account Value 10/31/2022	Ending Account Value 4/30/2023	Expenses Paid During Period
Based on Actual Fund Return
International Dividend Appreciation Index Fund
ETF Shares	$1,000.00	$1,194.40	$0.82
Admiral™ Shares	1,000.00	1,193.80	0.87
International High Dividend Yield Index Fund
ETF Shares	$1,000.00	$1,188.60	$1.19
Admiral Shares	1,000.00	1,188.20	1.19
Based on Hypothetical 5% Yearly Return
International Dividend Appreciation Index Fund
ETF Shares	$1,000.00	$1,024.05	$0.75
Admiral Shares	1,000.00	1,024.00	0.80
International High Dividend Yield Index Fund
ETF Shares	$1,000.00	$1,023.70	$1.10
Admiral Shares	1,000.00	1,023.70	1.10

The calculations are based on expenses incurred in the most recent six-month period. The funds' annualized six-month expense ratios for that period are: for the International Dividend Appreciation Index Fund, 0.15% for ETF Shares and 0.16% for Admiral Shares; and for the International High Dividend Yield Index Fund, 0.22% for ETF Shares and 0.22% 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).

2

International Dividend Appreciation Index Fund

Fund Allocation

As of April 30, 2023

Switzerland	17.5%
Japan	17.2
Canada	15.6
United Kingdom	10.2
India	6.4
Germany	6.0
Denmark	5.8
France	5.6
Australia	4.0
Hong Kong	3.7
Sweden	2.0
Netherlands	1.1
Other	4.9

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.

3

International Dividend Appreciation Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of April 30, 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 (99.3%)
Australia (3.9%)
	CSL Ltd.	618,874	123,550
	Sonic Healthcare Ltd.	617,853	14,564
	Northern Star Resources Ltd.	1,474,680	13,154
	Computershare Ltd. (XASX)	736,338	10,961
	carsales.com Ltd.	483,256	7,664
	Washington H Soul Pattinson & Co. Ltd.	314,601	6,586
	Steadfast Group Ltd.	1,331,633	5,250
	Cleanaway Waste Management Ltd.	2,861,928	4,609
	Altium Ltd.	157,443	4,013
	Technology One Ltd.	359,551	3,625
	Pro Medicus Ltd.	64,579	2,651
	AUB Group Ltd.	117,819	2,159
	Bapcor Ltd.	433,120	1,890
	Brickworks Ltd.	110,411	1,837
	Collins Foods Ltd.	140,810	812
			203,325
Belgium (0.4%)
	UCB SA	162,213	15,079
	Sofina SA	20,188	4,635
			19,714
Canada (15.5%)
	Toronto-Dominion Bank	2,337,900	141,618
	Canadian National Railway Co.	779,352	92,900
	Canadian Natural Resources Ltd.	1,420,942	86,587
	Brookfield Corp. Class A	1,833,404	59,487
	Alimentation Couche-Tard Inc.	985,488	49,185
	Franco-Nevada Corp.	245,860	37,306
	Agnico Eagle Mines Ltd.	631,370	35,817
	Intact Financial Corp.	224,868	34,014
	Fortis Inc. (XTSE)	616,657	27,077
	Dollarama Inc.	365,151	22,618
	Loblaw Cos. Ltd.	195,493	18,387
	Magna International Inc.	340,995	17,779
	Metro Inc.	301,747	17,198
	Brookfield Asset Management Ltd. Class A	460,384	15,434
	Open Text Corp.	347,480	13,160
	Imperial Oil Ltd.	224,699	11,453

		Shares	Market Value• ($000)
	George Weston Ltd.	83,087	11,156
	TFI International Inc.	99,877	10,764
1	Canadian Tire Corp. Ltd. Class A	69,176	9,068
	CCL Industries Inc. Class B	186,484	8,769
	Stantec Inc.	141,971	8,534
	Toromont Industries Ltd.	105,237	8,504
	Ritchie Bros Auctioneers Inc. (XNYS)	142,624	8,161
	Saputo Inc.	312,425	8,089
	TMX Group Ltd.	71,401	7,232
	Empire Co. Ltd. Class A	204,549	5,493
	Parkland Corp.	224,655	5,298
	Quebecor Inc. Class B	197,192	5,090
	Finning International Inc.	192,424	4,987
	Boyd Group Services Inc.	27,538	4,593
	Premium Brands Holdings Corp. Class A	47,324	3,553
	Stella-Jones Inc.	65,796	2,575
	Maple Leaf Foods Inc.	94,279	1,932
	Enghouse Systems Ltd.	54,544	1,501
	Cogeco Communications Inc.	23,673	1,147
1	goeasy Ltd.	16,205	1,110
	Badger Infrastructure Solutions Ltd.	44,126	967
	Savaria Corp.	63,276	776
	Adentra Inc.	21,628	415
			799,734
China (0.4%)
	CSPC Pharmaceutical Group Ltd.	10,718,000	10,914
	Wuliangye Yibin Co. Ltd. Class A	396,400	9,685
	Jiangsu King's Luck Brewery JSC Ltd. Class A	129,100	1,117
	Angel Yeast Co. Ltd. Class A	85,900	497
	Inner Mongolia Dian Tou Energy Corp. Ltd. Class A	197,600	385
	Suofeiya Home Collection Co. Ltd. Class A	92,300	252
	Valiant Co. Ltd. Class A	94,400	250
*	Shandong Shanda WIT Science & Tech Co. Ltd. Class A	24,100	128

4

International Dividend Appreciation Index Fund

5

International Dividend Appreciation Index Fund

6

International Dividend Appreciation Index Fund

7

International Dividend Appreciation Index Fund

		Shares	Market Value• ($000)
Temporary Cash Investments (0.6%)
Money Market Fund (0.6%)
2,3	Vanguard Market Liquidity Fund, 4.853% (Cost $30,102)	301,053	30,102
Total Investments (99.9%) (Cost $4,806,526)			5,164,889
Other Assets and Liabilities—Net (0.1%)			4,073
Net Assets (100%)			5,168,962
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 $19,542,000.
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 $20,489,000 was received for securities on loan.
	ADR—American Depositary Receipt.
	Ptg. Ctf.—Participating Certificates.

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 2023	1	209	9
Euro Stoxx 50 Index	June 2023	332	15,804	812
MSCI EAFE Index	June 2023	4	430	(1)
MSCI Emerging Markets Index	June 2023	127	6,250	121
Topix Index	June 2023	70	10,574	512
				1,453

8

International Dividend Appreciation Index Fund

Forward Currency Contracts
	Contract Settlement Date	Contract Amount (000)				Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
Counterparty		Receive		Deliver
Bank of America, N.A.	6/21/23	CHF	1,411	USD	1,581	7	—
Bank of America, N.A.	6/21/23	EUR	13,087	USD	14,148	315	—
Bank of America, N.A.	6/21/23	GBP	138	USD	166	7	—
Barclays Bank plc	6/21/23	INR	20,992	USD	254	2	—
Bank of America, N.A.	6/21/23	JPY	1,025,641	USD	7,643	—	(55)
State Street Bank & Trust Co.	6/21/23	USD	14,611	CHF	13,540	—	(629)
State Street Bank & Trust Co.	6/21/23	USD	5,239	JPY	687,461	153	—
						484	(684)

CHF—Swiss franc.

EUR—euro.

GBP—British pound.

INR—Indian rupee.

JPY—Japanese yen.

USD—U.S. dollar.

At April 30, 2023, the counterparties had deposited in segregated accounts cash of $520,000 in connection with open forward currency contracts.

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

9

International Dividend Appreciation Index Fund

Statement of Assets and Liabilities

As of April 30, 2023

($000s, except shares, footnotes, and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $4,776,424)	5,134,787
Affiliated Issuers (Cost $30,102)	30,102
Total Investments in Securities	5,164,889
Investment in Vanguard	176
Cash Collateral Pledged—Futures Contracts	1,915
Cash Collateral Pledged—Forward Currency Contracts	520
Foreign Currency, at Value (Cost $6,235)	5,916
Receivables for Investment Securities Sold	6,663
Receivables for Accrued Income	27,636
Receivables for Capital Shares Issued	2,210
Variation Margin Receivable—Futures Contracts	273
Unrealized Appreciation—Forward Currency Contracts	484
Total Assets	5,210,682
Liabilities
Due to Custodian	5,053
Payables for Investment Securities Purchased	13,882
Collateral for Securities on Loan	20,489
Payables for Capital Shares Redeemed	137
Payables to Vanguard	401
Unrealized Depreciation—Forward Currency Contracts	684
Deferred Foreign Capital Gains Taxes	1,074
Total Liabilities	41,720
Net Assets	5,168,962
1 Includes $19,542,000 of securities on loan.
At April 30, 2023, net assets consisted of:
Paid-in Capital	4,912,906
Total Distributable Earnings (Loss)	256,056
Net Assets	5,168,962
ETF Shares—Net Assets
Applicable to 64,078,917 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,854,083
Net Asset Value Per Share—ETF Shares	$75.75
Admiral Shares—Net Assets
Applicable to 8,538,656 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	314,879
Net Asset Value Per Share—Admiral Shares	$36.88

  

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

10

International Dividend Appreciation Index Fund

Statement of Operations

	Six Months Ended April 30, 2023
	($000)
Investment Income
Income
Dividends1	47,037
Non-Cash Dividends	9,282
Interest2	220
Securities Lending—Net	143
Total Income	56,682
Expenses
The Vanguard Group—Note B
Investment Advisory Services	166
Management and Administrative—ETF Shares	2,825
Management and Administrative—Admiral Shares	210
Marketing and Distribution—ETF Shares	98
Marketing and Distribution—Admiral Shares	7
Custodian Fees	85
Shareholders’ Reports—ETF Shares	87
Shareholders’ Reports—Admiral Shares	3
Trustees’ Fees and Expenses	1
Other Expenses	7
Total Expenses	3,489
Expenses Paid Indirectly	(48)
Net Expenses	3,441
Net Investment Income	53,241
Realized Net Gain (Loss)
Investment Securities Sold2	(97,160)
Futures Contracts	723
Forward Currency Contracts	(414)
Foreign Currencies	1,598
Realized Net Gain (Loss)	(95,253)
Change in Unrealized Appreciation (Depreciation)
Investment Securities2,3	808,090
Futures Contracts	1,578
Forward Currency Contracts	(189)
Foreign Currencies	1,010
Change in Unrealized Appreciation (Depreciation)	810,489
Net Increase (Decrease) in Net Assets Resulting from Operations	768,477

1	Dividends are net of foreign withholding taxes of $6,523,000.
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 $191,000, $4,000, less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($1,448,000).

  

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

11

International Dividend Appreciation Index Fund

Statement of Changes in Net Assets

	Six Months Ended April 30, 2023		Year Ended October 31, 2022
	($000)		($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	53,241		77,130
Realized Net Gain (Loss)	(95,253)		(21,169)
Change in Unrealized Appreciation (Depreciation)	810,489		(1,130,453)
Net Increase (Decrease) in Net Assets Resulting from Operations	768,477		(1,074,492)
Distributions
ETF Shares	(45,676)		(304,771)
Admiral Shares	(3,070)		(23,591)
Total Distributions	(48,746)		(328,362)
Capital Share Transactions
ETF Shares	673,001		662,695
Admiral Shares	18,143		25,028
Net Increase (Decrease) from Capital Share Transactions	691,144		687,723
Total Increase (Decrease)	1,410,875		(715,131)
Net Assets
Beginning of Period	3,758,087		4,473,218
End of Period	5,168,962		3,758,087

  

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

12

International Dividend Appreciation Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2023	Year Ended October 31,
		2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$64.12	$89.86	$69.97	$68.72	$58.65	$64.25
Investment Operations
Net Investment Income1	.831	1.401	1.094	.958	1.4522	1.196
Net Realized and Unrealized Gain (Loss) on Investments3	11.561	(20.753)	19.776	1.551	9.578	(5.623)
Total from Investment Operations	12.392	(19.352)	20.870	2.509	11.030	(4.427)
Distributions
Dividends from Net Investment Income	(.762)	(1.206)	(.980)	(1.259)	(.960)	(1.173)
Distributions from Realized Capital Gains	—	(5.182)	—	—	—	—
Total Distributions	(.762)	(6.388)	(.980)	(1.259)	(.960)	(1.173)
Net Asset Value, End of Period	$75.75	$64.12	$89.86	$69.97	$68.72	$58.65
Total Return	19.44%	-22.90%	29.93%	3.73%	18.96%	-7.04%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,854	$3,508	$4,150	$2,456	$1,305	$861
Ratio of Total Expenses to Average Net Assets	0.15%4	0.15%4	0.15%	0.20%	0.20%	0.25%
Ratio of Net Investment Income to Average Net Assets	2.33%	1.87%	1.28%	1.40%	2.24%2	1.83%
Portfolio Turnover Rate5	13%	22%	65%	17%	42%	36%
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 $0.388 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3	Includes increases from purchase and redemption fees of $0.00, $0.00, $0.00, $0.01, $0.02, and $0.02.
4	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements were 0.15%.
5	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

  

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

13

International Dividend Appreciation Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2023	Year Ended October 31,
		2022	2021	2020	2019	2018
Net Asset Value, Beginning of Period	$31.23	$43.72	$34.03	$33.42	$28.52	$31.24
Investment Operations
Net Investment Income1	.396	.675	.518	.453	.6862	.576
Net Realized and Unrealized Gain (Loss) on Investments3	5.623	(10.061)	9.645	.765	4.679	(2.727)
Total from Investment Operations	6.019	(9.386)	10.163	1.218	5.365	(2.151)
Distributions
Dividends from Net Investment Income	(.369)	(.583)	(.473)	(.608)	(.465)	(.569)
Distributions from Realized Capital Gains	—	(2.521)	—	—	—	—
Total Distributions	(.369)	(3.104)	(.473)	(.608)	(.465)	(.569)
Net Asset Value, End of Period	$36.88	$31.23	$43.72	$34.03	$33.42	$28.52
Total Return4	19.38%	-22.85%	29.96%	3.72%	18.96%	-7.03%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$315	$250	$323	$220	$218	$175
Ratio of Total Expenses to Average Net Assets	0.16%5	0.16%5	0.16%	0.20%	0.20%	0.25%
Ratio of Net Investment Income to Average Net Assets	2.28%	1.85%	1.25%	1.36%	2.24%2	1.83%
Portfolio Turnover Rate6	13%	22%	65%	17%	42%	36%
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 $0.188 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3	Includes increases from purchase and redemption fees of $0.00, $0.00, $0.00, $0.00, $0.00, and $0.01.
4	Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
5	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements were 0.16%.
6	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

  

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

14

International Dividend Appreciation Index Fund

Notes to Financial Statements

Vanguard International Dividend Appreciation Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on Nasdaq; they can be purchased and sold through a broker.

A.	The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

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

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

15

International Dividend Appreciation Index Fund

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, 2023, 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, 2023, the fund’s average investment in forward currency contracts represented 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.

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International Dividend Appreciation 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 $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes 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. 

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International Dividend Appreciation Index Fund

For the six months ended April 30, 2023, the fund did not utilize the credit facilities or the Interfund Lending Program.

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. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of 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, 2023, the fund had contributed to Vanguard capital in the amount of $176,000, 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.	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 April 30, 2023, custodian fee offset arrangements reduced the fund’s expenses by $48,000 (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.

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International Dividend Appreciation Index Fund

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 April 30, 2023, 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	831,828	—	—	831,828
Common Stocks—Other	46,019	4,256,940	—	4,302,959
Temporary Cash Investments	30,102	—	—	30,102
Total	907,949	4,256,940	—	5,164,889
Derivative Financial Instruments
Assets
Futures Contracts1	1,454	—	—	1,454
Forward Currency Contracts	—	484	—	484
Total	1,454	484	—	1,938
Liabilities
Futures Contracts1	1	—	—	1
Forward Currency Contracts	—	684	—	684
Total	1	684	—	685

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

E.	At April 30, 2023, 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	1,454	—	1,454
Unrealized Appreciation—Forward Currency Contracts	—	484	484
Total Assets	1,454	484	1,938
Unrealized Depreciation—Futures Contracts1	1	—	1
Unrealized Depreciation—Forward Currency Contracts	—	684	684
Total Liabilities	1	684	685

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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International Dividend Appreciation Index Fund

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2023, were:

Realized Net Gain (Loss) on Derivatives	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Futures Contracts	723	—	723
Forward Currency Contracts	—	(414)	(414)
Realized Net Gain (Loss) on Derivatives	723	(414)	309
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	1,578	—	1,578
Forward Currency Contracts	—	(189)	(189)
Change in Unrealized Appreciation (Depreciation) on Derivatives	1,578	(189)	1,389

F.	As of April 30, 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	4,814,642
Gross Unrealized Appreciation	545,373
Gross Unrealized Depreciation	(193,873)
Net Unrealized Appreciation (Depreciation)	351,500

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, 2022, the fund had available capital losses totaling $27,589,000 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, 2023; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

G.

During the six months ended April 30, 2023, the fund purchased $1,279,876,000 of investment securities and sold $593,709,000 of investment securities, other than temporary cash investments. Purchases and sales include $582,054,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

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International Dividend Appreciation Index Fund

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

    

	Six Months Ended April 30, 2023			Year Ended October 31, 2022
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
ETF Shares
Issued1	673,001	9,366		676,377	8,730
Issued in Lieu of Cash Distributions	—	—		—	—
Redeemed2	—	—		(13,682)	(200)
Net Increase (Decrease)—ETF Shares	673,001	9,366		662,695	8,530
Admiral Shares
Issued1	33,779	988		65,935	1,814
Issued in Lieu of Cash Distributions	2,565	76		20,104	513
Redeemed2	(18,201)	(521)		(61,011)	(1,723)
Net Increase (Decrease)—Admiral Shares	18,143	543		25,028	604

1	Includes purchase fees for fiscal 2023 and 2022 of $83,000 and $200,000, respectively (fund totals).
2	Net of redemption fees for fiscal 2023 and 2022 of $38,000 and $203,000, respectively (fund totals).

I.

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.

To the extent the fund’s investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.

The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund's use of derivative(s) and the specific risks associated is described under significant accounting policies.

J.	Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements.

21

International High Dividend Yield Index Fund

Fund Allocation

As of April 30, 2023

United Kingdom	13.1%
Japan	12.8
Australia	7.8
Canada	7.7
Germany	6.8
France	6.6
Switzerland	6.0
China	5.6
Taiwan	4.3
Spain	2.7
Italy	2.6
Brazil	2.5
Hong Kong	1.8
South Korea	1.6
Saudi Arabia	1.5
Singapore	1.5
Netherlands	1.4
Sweden	1.4
Finland	1.4
South Africa	1.2
Mexico	1.2
India	1.0
Other	7.5

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.

22

International High Dividend Yield Index Fund

Financial Statements (unaudited)

Schedule of Investments

As of April 30, 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.

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		Shares	Market Value• ($000)
Common Stocks (99.3%)
Australia (7.8%)
	BHP Group Ltd.	2,871,004	85,204
	Commonwealth Bank of Australia	965,130	63,869
	National Australia Bank Ltd.	1,793,526	34,527
	Westpac Banking Corp.	1,987,577	29,752
	ANZ Group Holdings Ltd.	1,706,178	27,705
	Woodside Energy Group Ltd.	1,079,796	24,501
	Macquarie Group Ltd.	197,213	24,058
	Wesfarmers Ltd.	643,333	22,255
	Transurban Group	1,754,569	17,499
	Rio Tinto Ltd.	212,865	15,966
	Fortescue Metals Group Ltd.	909,168	12,721
	Amcor plc GDR	850,284	9,296
	Coles Group Ltd.	727,094	8,783
	QBE Insurance Group Ltd.	845,770	8,649
	Santos Ltd.	1,724,410	8,169
	Brambles Ltd.	784,504	7,432
	South32 Ltd.	2,629,089	7,432
	Telstra Group Ltd.	2,367,921	6,870
	Sonic Healthcare Ltd.	261,494	6,164
	Suncorp Group Ltd.	713,296	5,939