Semiannual Report | April 30, 2021

Vanguard FTSE International Index Funds

Vanguard FTSE All-World ex-US Index Fund

Vanguard FTSE All-World ex-US Small-Cap Index Fund

Contents

About Your Fund’s Expenses	1
FTSE All-World ex-US Index Fund	3
FTSE All-World ex-US Small-Cap Index Fund	28
Trustees Approve Advisory Arrangements	50
Liquidity Risk Management	52

About Your Fund’s Expenses

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

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

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

•

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

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

•

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

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

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

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

Six Months Ended April 30, 2021
	Beginning Account Value 10/31/2020	Ending Account Value 4/30/2021	Expenses Paid During Period
Based on Actual Fund Return
FTSE All-World ex-US Index Fund
ETF Shares	$1,000.00	$1,273.00	$0.45
Admiral™ Shares	1,000.00	1,272.70	0.62
Institutional Shares	1,000.00	1,273.00	0.45
Institutional Plus Shares	1,000.00	1,273.10	0.34
FTSE All-World ex-US Small-Cap Index Fund
ETF Shares	$1,000.00	$1,323.50	$0.63
Admiral Shares	1,000.00	1,322.70	0.92
Institutional Shares	1,000.00	1,323.30	0.63
Based on Hypothetical 5% Yearly Return
FTSE All-World ex-US Index Fund
ETF Shares	$1,000.00	$1,024.40	$0.40
Admiral Shares	1,000.00	1,024.25	0.55
Institutional Shares	1,000.00	1,024.40	0.40
Institutional Plus Shares	1,000.00	1,024.50	0.30
FTSE All-World ex-US Small-Cap Index Fund
ETF Shares	$1,000.00	$1,024.25	$0.55
Admiral Shares	1,000.00	1,024.00	0.80
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 funds' annualized six-month expense ratios for that period are: for the FTSE All-World ex-US Index Fund, 0.08% for ETF Shares, 0.11% for Admiral Shares, 0.08% for Institutional Shares and 0.06% for Institutional Plus Shares; and for the FTSE All-World ex-US Small-Cap Index Fund, 0.11% for ETF Shares, 0.16% 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).

FTSE All-World ex-US Index Fund

Fund Allocation

As of April 30, 2021

Basic Materials	7.2%
Consumer Discretionary	14.9
Consumer Staples	7.5
Energy	4.7
Financials	18.9
Health Care	9.0
Industrials	13.6
Real Estate	3.0
Technology	14.6
Telecommunications	3.5
Utilities	3.1
Other	0.0

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

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

The Industry Classification Benchmark (“ICB”) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB.

FTSE All-World ex-US Index Fund

Financial Statements (unaudited)

Schedule of Investments—Investments Summary

As of April 30, 2021

This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) four times in each fiscal year. For the second and fourth quarters the complete list of the fund’s holdings is available on vanguard.com and on Form N-CSR, or you can have it mailed to you without charge by calling 800-662-7447. For the first and third quarters of each fiscal year, the complete list of the fund’s holdings is available as an exhibit to its reports on Form N-PORT. The fund’s Form N-CSR and Form N-PORT reports are available on the SEC’s website at www.sec.gov.

		Shares	Market Value• ($000)	Percentage of Net Assets
Common Stocks
Australia
	Commonwealth Bank of Australia	3,289,752	225,205	0.4%
	BHP Group Ltd.	5,476,783	199,332	0.4%
	CSL Ltd.	841,686	175,824	0.4%
	Westpac Banking Corp.	6,813,392	131,299	0.3%
^†	Australia—Other^*,1,2		1,755,248	3.3%
			2,486,908	4.8%
†Austria^*			66,083	0.1%
†Belgium^*,1			332,254	0.6%
Brazil
	CPFL Energia SA	369,600	1,997	0.0%
^†	Brazil—Other^*,1,3		756,122	1.5%
			758,119	1.5%
Canada
	Royal Bank of Canada	2,643,537	252,299	0.5%
	Shopify Inc. Class A^*	201,449	237,792	0.5%
	Toronto-Dominion Bank	3,355,013	230,646	0.4%
	Enbridge Inc.	3,719,615	143,471	0.3%
	Bank of Nova Scotia	2,244,631	142,934	0.3%
	Canadian National Railway Co.	1,319,404	142,047	0.3%
	Canada—Other^*,1,3		1,845,796	3.5%
			2,994,985	5.8%
†Chile^*,1			88,832	0.2%

FTSE All-World ex-US Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
China
	Tencent Holdings Ltd.	10,983,904	876,208	1.7%
	Alibaba Group Holding Ltd.^*	26,180,540	756,820	1.5%
	Meituan Class B^*,3	7,073,918	270,749	0.5%
	China Construction Bank Corp. Class H	166,760,517	131,631	0.3%
	Industrial & Commercial Bank of China Ltd. Class H	148,179,655	96,153	0.2%
	Bank of China Ltd. Class H	145,401,284	57,688	0.1%
	China Life Insurance Co. Ltd. Class H	14,169,183	28,723	0.1%
	Alibaba Health Information Technology Ltd.^*	8,806,719	26,806	0.1%
	China Petroleum and Chemical Corp. (Sinopec) Class H	48,892,731	24,114	0.1%
	China Resources Beer Holdings Co. Ltd.	2,983,630	24,035	0.1%
	China Resources Land Ltd.	5,125,316	23,997	0.1%
	Agricultural Bank of China Class H	59,872,835	23,196	0.1%
	China Overseas Land & Investment Ltd.	7,214,629	18,259	0.1%
	China Shenhua Energy Co. Ltd. Class H	6,899,360	14,371	0.1%
	PetroChina Co. Ltd. Class H	37,988,969	13,743	0.1%
	PICC Property & Casualty Co. Ltd. Class H	12,608,470	12,344	0.0%
	China Tourism Group Duty Free Corp. Ltd. Class A^*	250,262	12,010	0.0%
	Postal Savings Bank of China Co. Ltd. Class H³	17,351,637	11,254	0.0%
	Citic Pacific Ltd.	9,005,697	9,458	0.0%
	China CITIC Bank Corp. Ltd. Class H	18,043,749	9,420	0.0%
	China Longyuan Power Group Corp. Ltd. Class H	6,304,086	9,270	0.0%
	China Resources Gas Group Ltd.	1,620,189	8,766	0.0%
	Agricultural Bank of China Ltd. Class A^*	15,450,000	7,634	0.0%
	Sinopharm Group Co. Ltd. Class H	2,438,106	7,520	0.0%
	China Construction Bank Corp. Class A^*	6,760,900	7,025	0.0%
	Industrial & Commercial Bank of China Ltd. Class A^*	8,191,400	6,489	0.0%
	Kunlun Energy Co. Ltd.	5,461,356	5,839	0.0%
	China Yangtze Power Co. Ltd. Class A^*	1,856,179	5,721	0.0%
	People's Insurance Co. Group of China Ltd. Class H	15,044,882	5,143	0.0%
	China Insurance International Holdings Co. Ltd.	2,768,872	5,125	0.0%
	China Resources Power Holdings Co. Ltd.	3,857,843	5,068	0.0%
	CGN Power Co. Ltd. Class H³	21,074,536	4,848	0.0%
	Dongfeng Motor Group Co. Ltd. Class H	5,198,643	4,518	0.0%
	China Resources Cement Holdings Ltd.	3,971,958	4,327	0.0%
	China Galaxy Securities Co. Ltd. Class H^*	6,990,117	4,154	0.0%
	China State Construction Engineering Corp. Ltd. Class A^*	5,392,929	4,112	0.0%
	China Literature Ltd.^*,3	392,388	4,087	0.0%
	China Merchants Port Holdings Co. Ltd.	2,464,229	3,942	0.0%
	Zhuzhou CRRC Times Electric Co. Ltd. Class H^*	949,225	3,769	0.0%
	Alibaba Pictures Group Ltd.^*	23,752,294	3,451	0.0%
	Baoshan Iron & Steel Co. Ltd. Class A^*	2,389,600	3,176	0.0%
	China Cinda Asset Management Co. Ltd. Class H^*	15,961,916	3,138	0.0%
	China Oilfield Services Ltd. Class H	3,398,706	3,105	0.0%
	Bank of China Ltd. Class A^*	6,171,723	3,098	0.0%
	AviChina Industry & Technology Co. Ltd. Class H	4,437,567	2,848	0.0%
	Air China Ltd. Class H^*	3,476,019	2,748	0.0%
	Shanghai Baosight Software Co. Ltd. Class B^*	692,745	2,606	0.0%
	China Life Insurance Co. Ltd. Class A^*	507,500	2,584	0.0%
	Citic Pacific Special Steel Group Co. Ltd. Class A	644,353	2,571	0.0%
	China Huarong Asset Management Co. Ltd. Class H^2,3	19,420,157	2,550	0.0%
	Beijing Capital International Airport Co. Ltd. Class H^*	3,385,292	2,457	0.0%
	China Coal Energy Co. Ltd. Class H	4,530,041	2,450	0.0%
	China Southern Airlines Co. Ltd. Class H^*	3,501,237	2,371	0.0%
	China State Construction International Holdings Ltd.	3,209,767	2,248	0.0%

FTSE All-World ex-US Index Fund

	Shares	Market Value• ($000)	Percentage of Net Assets
China Petroleum & Chemical Corp. Class A^*	3,191,100	2,104	0.0%
Daqin Railway Co. Ltd. Class A^*	1,894,066	2,012	0.0%
China Resources Pharmaceutical Group Ltd.³	2,881,732	1,941	0.0%
China Communications Services Corp. Ltd. Class H	4,417,205	1,910	0.0%
Angang Steel Co. Ltd. Class H¹	2,650,568	1,822	0.0%
Sinopec Shanghai Petrochemical Co. Ltd. Class H	7,260,940	1,795	0.0%
China Power International Development Ltd.	7,750,326	1,776	0.0%
Sinotrans Ltd. Class H^*	3,824,064	1,746	0.0%
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Class A^*	933,396	1,673	0.0%
AVIC Shenyang Aircraft Co. Ltd. Class A^*	180,200	1,606	0.0%
Sinopec Engineering Group Co. Ltd. Class H	2,545,188	1,571	0.0%
China Shenhua Energy Co. Ltd. Class A^*	523,056	1,549	0.0%
China National Nuclear Power Co. Ltd. Class A^*	1,886,600	1,519	0.0%
AVIC Xi'an Aircraft Industry Group Co. Ltd. Class A^*	358,700	1,330	0.0%
Maanshan Iron & Steel Co. Ltd. Class A^*	1,869,100	1,221	0.0%
China Reinsurance Group Corp. Class H^*	11,496,206	1,197	0.0%
China Railway Signal & Communication Corp. Ltd. Class H^*,3	2,781,353	1,104	0.0%
China CITIC Bank Corp. Ltd. Class A^*	1,129,935	904	0.0%
China Southern Airlines Co. Ltd. Class A^*	906,697	888	0.0%
China Railway Signal & Communication Corp. Ltd. Class A^*	1,025,723	888	0.0%
Zhongjin Gold Corp. Ltd. Class A^*	619,850	816	0.0%
Power Construction Corp. of China Ltd. Class A^*	1,375,200	810	0.0%
China National Accord Medicines Corp. Ltd. Class B^*	246,585	718	0.0%
China Merchants Energy Shipping Co. Ltd. Class A^*	873,064	661	0.0%
Air China Ltd. Class A^*	479,226	605	0.0%
AVICOPTER plc Class A^*	76,800	603	0.0%
China CSSC Holdings Ltd. Class A^*	236,500	570	0.0%
China National Medicines Corp. Ltd. Class A^*	100,300	570	0.0%
Dongxing Securities Co. Ltd. Class A^*	356,192	566	0.0%
Angang Steel Co. Ltd. Class A^*	719,300	540	0.0%
Heilongjiang Agriculture Co. Ltd. Class A^*	231,300	540	0.0%
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd. Class A^*	132,100	510	0.0%
FAW Jiefang Group Co. Ltd. Class A^*	292,500	499	0.0%
China Oilfield Services Ltd. Class A^*	236,889	481	0.0%
Sinopec Oilfield Service Corp. Class H^*	5,410,803	479	0.0%
China Merchants Property Operation & Service Co. Ltd. Class A^*	141,100	459	0.0%
China Satellite Communications Co. Ltd. Class A^*	183,900	443	0.0%
China Coal Energy Co. Ltd. Class A^*	378,138	408	0.0%
CSSC Offshore and Marine Engineering Group Co. Ltd. Class H^*	408,399	397	0.0%
Offshore Oil Engineering Co. Ltd. Class A^*	576,900	387	0.0%
Sinotrans Ltd. Class A^*	502,200	378	0.0%
Shanghai Electric Power Co. Ltd. Class A^*	323,400	351	0.0%
CSSC Offshore and Marine Engineering Group Co. Ltd. Class A^*	105,100	345	0.0%
Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia Class A^*	211,700	337	0.0%
Glarun Technology Co. Ltd. Class A^*	158,900	337	0.0%
China Merchants Expressway Network & Technology Holdings Co. Ltd. Class A^*	275,373	330	0.0%
CNOOC Energy Technology & Services Ltd. Class A^*	872,200	327	0.0%

FTSE All-World ex-US Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
	Inner Mongolia MengDian HuaNeng Thermal Power Corp. Ltd. Class A^*	851,600	309	0.0%
	Guangxi Guiguan Electric Power Co. Ltd. Class A^*	376,900	301	0.0%
	Tian Di Science & Technology Co. Ltd. Class A^*	529,200	297	0.0%
	China Galaxy Securities Co. Ltd. Class A^*	184,700	284	0.0%
	COFCO Sugar Holding Co. Ltd. Class A^*	185,600	270	0.0%
	Shennan Circuits Co. Ltd. Class A^*	21,938	268	0.0%
	Grandjoy Holdings Group Co. Ltd. Class A^*	456,788	257	0.0%
	Bluestar Adisseo Co. Class A^*	133,700	249	0.0%
	Cinda Real Estate Co. Ltd. Class A^*	377,000	211	0.0%
	Sinopec Shanghai Petrochemical Co. Ltd. Class A^*	338,000	191	0.0%
	ADAMA Ltd. Class A^*	134,900	184	0.0%
	Sinopec Oilfield Service Corp. Class A^*	543,200	163	0.0%
	Maanshan Iron & Steel Co. Ltd. Class H^*	296,000	141	0.0%
	CGN Power Co. Ltd. Class A^*	294,300	123	0.0%
	China West Construction Group Co. Ltd. Class A^*	50,600	65	0.0%
^†	China—Other^*,1,2,3		2,995,371	5.6%
			5,632,444	10.8%
†Colombia^*			29,918	0.1%
†Czech Republic^*,3			17,244	0.0%
Denmark
	Novo Nordisk A/S Class B	2,996,442	221,040	0.4%
^†	Denmark—Other^*,3		539,567	1.1%
			760,607	1.5%
†Egypt^*			13,781	0.0%
†Finland^*			432,431	0.8%
France
	LVMH Moet Hennessy Louis Vuitton SE	462,554	348,465	0.7%
	Sanofi	2,022,880	212,084	0.4%
	TOTAL SE	4,497,682	198,788	0.4%
	Schneider Electric SE	976,355	155,783	0.3%
^†	France—Other^*,1,3		2,552,451	4.9%
			3,467,571	6.7%
Germany
	SAP SE	2,083,931	291,793	0.6%
	Siemens AG (Registered)	1,396,196	232,934	0.5%
	Allianz SE (Registered)	761,993	197,826	0.4%
	BASF SE	1,699,335	136,952	0.3%
	Daimler AG (Registered)	1,524,501	135,679	0.3%
^†	Germany—Other^*,1,3		2,024,331	3.7%
			3,019,515	5.8%
†Greece^*,2			37,950	0.1%
Hong Kong
	AIA Group Ltd.	22,467,611	285,172	0.6%
	Hong Kong Exchanges & Clearing Ltd.	2,359,455	142,301	0.3%
	BOC Hong Kong Holdings Ltd.	6,671,530	23,459	0.1%
	BOC Aviation Ltd.³	380,126	3,422	0.0%
	Sun Art Retail Group Ltd.^*	2,977,000	2,740	0.0%

FTSE All-World ex-US Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
	MMG Ltd.^*	4,207,627	2,718	0.0%
	Nexteer Automotive Group Ltd.	1,494,541	1,676	0.0%
	China Travel International Investment Hong Kong Ltd.^*	4,636,794	804	0.0%
^†	Hong Kong—Other^*,1,2,3		725,853	1.3%
			1,188,145	2.3%
†Hungary^*			32,475	0.1%
India
	Nestle India Ltd.	60,024	13,201	0.1%
^†	India—Other^*,3		1,533,114	2.9%
			1,546,315	3.0%
†Indonesia^*			182,855	0.4%
†Ireland^*,2			97,128	0.2%
†Israel^*			179,157	0.3%
Italy
	Enel SPA	14,415,605	143,137	0.3%
^†	Italy—Other^*,3		616,336	1.2%
			759,473	1.5%
Japan
	Toyota Motor Corp.	4,566,207	341,663	0.7%
	SoftBank Group Corp.	2,583,207	232,774	0.5%
	Sony Group Corp.	2,288,684	228,820	0.5%
	Keyence Corp.	333,974	160,325	0.3%
^†	Japan—Other^*,1		7,195,092	13.7%
			8,158,674	15.7%
†Kuwait^*			87,997	0.2%
Malaysia
	Nestle Malaysia Bhd.	111,300	3,686	0.0%
^†	Malaysia—Other^*		247,241	0.5%
			250,927	0.5%
†Mexico^*			286,411	0.5%
Netherlands
	ASML Holding NV	741,422	481,288	0.9%
^†	Netherlands—Other^*,3		920,340	1.8%
			1,401,628	2.7%
†New Zealand^*			107,154	0.2%
†Norway^*,3			230,433	0.4%
†Pakistan			3,223	0.0%
†Philippines^*			110,017	0.2%
†Poland^*,1,3			92,244	0.2%
†Portugal^*			58,293	0.1%

FTSE All-World ex-US Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
†Qatar^*			115,451	0.2%
†Romania			5,069	0.0%
†Russia^*			395,809	0.8%
†Saudi Arabia^*,3			463,014	0.9%
†Singapore^*			407,445	0.8%
South Africa
	Naspers Ltd. Class N	784,568	178,552	0.4%
^†	South Africa—Other^*,1,3		439,240	0.8%
			617,792	1.2%
South Korea
	Samsung Electronics Co. Ltd.	4,398,690	320,601	0.6%
	Samsung Electronics Co. Ltd. GDR (Registered)	173,495	316,120	0.6%
	Samsung Electronics Co. Ltd. Preference Shares	1,423,189	93,439	0.2%
^†	South Korea—Other^*,1,2,3		1,342,641	2.6%
			2,072,801	4.0%
Spain
	Iberdrola SA (XMAD)^*	10,924,545	147,634	0.3%
^†	Spain—Other^*,1,3		647,350	1.2%
			794,984	1.5%
†Sweden^*,1,3			1,204,296	2.3%
Switzerland
	Nestle SA (Registered)	5,176,381	617,701	1.2%
	Roche Holding AG	1,285,996	419,435	0.8%
	Novartis AG (Registered)	3,935,957	335,880	0.7%
^†	Switzerland—Other^*,1,2,3		1,518,786	2.9%
			2,891,802	5.6%
Taiwan
	Taiwan Semiconductor Manufacturing Co. Ltd.	23,580,873	496,604	1.0%
	Taiwan Semiconductor Manufacturing Co. Ltd. ADR	4,128,037	481,907	0.9%
^†	Taiwan—Other^*,1		1,331,258	2.5%
			2,309,769	4.4%
†Thailand^*,1,3			313,794	0.6%
†Turkey^*,3			55,968	0.1%
†United Arab Emirates^*			103,517	0.2%
United Kingdom
	AstraZeneca plc	2,438,880	259,604	0.5%
	HSBC Holdings plc^*	37,846,715	236,304	0.5%
	Diageo plc	4,253,844	190,961	0.4%
	GlaxoSmithKline plc	9,155,268	169,187	0.3%
	Rio Tinto plc	2,017,040	168,942	0.3%
	British American Tobacco plc	4,230,089	156,950	0.3%
	BP plc	36,819,353	154,139	0.3%
	Unilever plc	2,597,169	151,652	0.3%
	Royal Dutch Shell plc Class A	7,486,349	140,865	0.3%

FTSE All-World ex-US Index Fund

			Shares	Market Value• ($000)	Percentage of Net Assets
^†	United Kingdom—Other^*,1,2,3			3,215,172	6.1%
				4,843,776	9.3%
Total Common Stocks (Cost $37,573,538)				51,506,478	99.2%
		Coupon
Temporary Cash Investments
Money Market Fund
	Vanguard Market Liquidity Fund (Cost $639,345)^4,5	0.068%	6,393,586	639,358	1.3%
Total Investments (Cost $38,212,883)				52,145,836	100.5%
Other Assets and Liabilities—Net				(237,486)	(0.5%)
Net Assets				51,908,350	100.0%
Cost is in $000.

•	See Note A in Notes to Financial Statements.
†	Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $517,727,000.
2	Certain securities are valued using significant unobservable inputs.
3	Certain securities are 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, 2021, the aggregate value was $1,608,364,000, representing 3.1% of net assets.
4	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
5	Collateral of $563,301,000 was received for securities on loan, of which $556,457,000 is held in Vanguard Market Liquidity Fund and $6,844,000 is held in cash.
	ADR—American Depositary Receipt.
	GDR—Global Depositary Receipt.

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
Euro Stoxx 50 Index	June 2021	1,413	66,932	2,633
FTSE 100 Index	June 2021	311	29,797	1,061
MSCI EAFE Index	June 2021	1,030	116,251	1,655
MSCI Emerging Markets Index	June 2021	1,783	119,158	290
S&P ASX 200 Index	June 2021	146	19,688	790
Topix Index	June 2021	235	40,887	385
				6,814

FTSE All-World ex-US Index Fund

Forward Currency Contracts
	Contract Settlement Date	Contract Amount (000)				Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
Counterparty	Contract Settlement Date	Receive		Deliver		Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
Bank of America, N.A.	6/16/21	AUD	22,081	USD	16,881	133	—
BNP Paribas	6/16/21	CAD	4,560	USD	3,609	101	—
Royal Bank of Canada	6/16/21	EUR	49,619	USD	58,776	937	—
Bank of America, N.A.	6/16/21	GBP	20,779	USD	28,745	—	(44)
BNP Paribas	6/16/21	JPY	3,610,756	USD	32,749	302	—
BNP Paribas	6/16/21	USD	51,174	CHF	47,881	—	(1,322)
HSBC Bank plc	6/16/21	USD	23,658	CHF	21,618	—	(44)
Goldman Sachs International	6/16/21	USD	24,083	GBP	17,217	303	—
UBS AG	6/16/21	USD	3,468	HKD	26,935	—	—
Citibank, N.A.	6/16/21	USD	47,716	JPY	5,159,220	491	—
Toronto-Dominion Bank	6/16/21	USD	8,039	KRW	9,136,189	—	(174)
UBS AG	6/17/21	USD	4,029	ZAR	60,955	—	(146)
						2,267	(1,730)

AUD—Australian dollar.

CAD—Canadian dollar.

CHF—Swiss franc.

EUR—euro.

GBP—British pound.

HKD—Hong Kong dollar.

JPY—Japanese yen.

KRW—Korean won.

USD—U.S. dollar.

ZAR—South African rand.

At April 30, 2021, the counterparties had deposited in segregated accounts securities with a value of $598,000 and cash of $1,530,000 in connection with open forward currency contracts.

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

FTSE All-World ex-US Index Fund

Statement of Assets and Liabilities

As of April 30, 2021


($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value
Unaffiliated Issuers (Cost $37,573,538)	51,506,478
Affiliated Issuers (Cost $639,345)	639,358
Total Investments in Securities	52,145,836
Investment in Vanguard	1,837
Cash	6,844
Cash Collateral Pledged—Futures Contracts	26,067
Cash Collateral Pledged—Forward Currency Contracts	940
Foreign Currency, at Value (Cost $60,131)	60,360
Receivables for Investment Securities Sold	74,837
Receivables for Accrued Income	263,653
Receivables for Capital Shares Issued	6,864
Unrealized Appreciation—Forward Currency Contracts	2,267
Total Assets	52,589,505
Liabilities
Due to Custodian	52,633
Payables for Investment Securities Purchased	18,310
Collateral for Securities on Loan	563,301
Payables for Capital Shares Redeemed	6,122
Payables to Vanguard	1,793
Variation Margin Payable—Futures Contracts	6,772
Unrealized Depreciation—Forward Currency Contracts	1,730
Deferred Foreign Capital Gains Taxes	30,494
Total Liabilities	681,155
Net Assets	51,908,350

FTSE All-World ex-US Index Fund

Statement of Assets and Liabilities (continued)
At April 30, 2021, net assets consisted of:
($000s, except shares and per-share amounts)	Amount
Paid-in Capital	40,566,003
Total Distributable Earnings (Loss)	11,342,347
Net Assets	51,908,350

ETF Shares—Net Assets
Applicable to 539,203,540 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	33,503,626
Net Asset Value Per Share—ETF Shares	$62.14

Admiral Shares—Net Assets
Applicable to 221,963,195 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	8,572,903
Net Asset Value Per Share—Admiral Shares	$38.62

Institutional Shares—Net Assets
Applicable to 47,762,898 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	5,848,149
Net Asset Value Per Share—Institutional Shares	$122.44

Institutional Plus Shares—Net Assets
Applicable to 30,723,365 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	3,983,672
Net Asset Value Per Share—Institutional Plus Shares	$129.66

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

FTSE All-World ex-US Index Fund

Statement of Operations


	Six Months Ended April 30, 2021
	($000)
Investment Income
Income
Dividends¹	557,132
Interest²	344
Securities Lending—Net	3,510
Total Income	560,986
Expenses
The Vanguard Group—Note B
Investment Advisory Services	1,328
Management and Administrative—ETF Shares	9,356
Management and Administrative—Admiral Shares	3,622
Management and Administrative—Institutional Shares	1,737
Management and Administrative—Institutional Plus Shares	822
Marketing and Distribution—ETF Shares	397
Marketing and Distribution—Admiral Shares	173
Marketing and Distribution—Institutional Shares	77
Marketing and Distribution—Institutional Plus Shares	24
Custodian Fees	2,417
Shareholders’ Reports—ETF Shares	50
Shareholders’ Reports—Admiral Shares	17
Shareholders’ Reports—Institutional Shares	5
Shareholders’ Reports—Institutional Plus Shares	—
Trustees’ Fees and Expenses	4
Total Expenses	20,029
Net Investment Income	540,957
Realized Net Gain (Loss)
Investment Securities Sold^2,3	45,499
Futures Contracts	75,945
Forward Currency Contracts	2,296
Foreign Currencies	5,496
Realized Net Gain (Loss)	129,236

FTSE All-World ex-US Index Fund

Statement of Operations (continued)
	Six Months Ended April 30, 2021
	($000)
Change in Unrealized Appreciation (Depreciation)
Investment Securities^2,4	10,063,340
Futures Contracts	21,537
Forward Currency Contracts	3,407
Foreign Currencies	904
Change in Unrealized Appreciation (Depreciation)	10,089,188
Net Increase (Decrease) in Net Assets Resulting from Operations	10,759,381

1	Dividends are net of foreign withholding taxes of $58,427,000.
2	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $84,000, ($43,000), and $42,000, respectively. Purchases and sales are for temporary cash investment purposes.
3	Includes $165,661,000 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 $29,467,000.

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

FTSE All-World ex-US Index Fund

Statement of Changes in Net Assets


	Six Months Ended April 30, 2021	Year Ended October 31, 2020
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	540,957	950,291
Realized Net Gain (Loss)	129,236	(501,488)
Change in Unrealized Appreciation (Depreciation)	10,089,188	(1,048,715)
Net Increase (Decrease) in Net Assets Resulting from Operations	10,759,381	(599,912)
Distributions
Investor Shares	—	—
ETF Shares	(315,066)	(632,805)
Admiral Shares	(82,828)	(174,884)
Institutional Shares	(58,660)	(124,922)
Institutional Plus Shares	(41,903)	(75,483)
Total Distributions	(498,457)	(1,008,094)
Capital Share Transactions
Investor Shares	—	(1,784)
ETF Shares	2,779,242	824,768
Admiral Shares	(121,348)	343,960
Institutional Shares	(30,102)	(135,008)
Institutional Plus Shares	(175,908)	618,168
Net Increase (Decrease) from Capital Share Transactions	2,451,884	1,650,104
Total Increase (Decrease)	12,712,808	42,098
Net Assets
Beginning of Period	39,195,542	39,153,444
End of Period	51,908,350	39,195,542

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

FTSE All-World ex-US Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$49.33	$51.58	$47.79	$53.65	$44.60	$45.41
Investment Operations
Net Investment Income	.668¹	1.211¹	1.629¹	1.557¹	1.379¹	1.304
Net Realized and Unrealized Gain (Loss) on Investments	12.758	(2.166)	3.692	(5.911)	9.038	(.846)
Total from Investment Operations	13.426	(.955)	5.321	(4.354)	10.417	.458
Distributions
Dividends from Net Investment Income	(.616)	(1.295)	(1.531)	(1.506)	(1.367)	(1.268)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.616)	(1.295)	(1.531)	(1.506)	(1.367)	(1.268)
Net Asset Value, End of Period	$62.14	$49.33	$51.58	$47.79	$53.65	$44.60
Total Return	27.30%	-1.83%	11.42%	-8.37%	23.73%	1.17%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$33,504	$24,308	$24,652	$21,348	$21,640	$13,983
Ratio of Total Expenses to Average Net Assets	0.08%	0.08%	0.08%	0.09%	0.11%	0.11%
Ratio of Net Investment Income to Average Net Assets	2.22%	2.46%	3.30%	2.91%	2.82%	3.01%
Portfolio Turnover Rate²	2%	4%	4%	6%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	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.

FTSE All-World ex-US Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$30.66	$32.06	$29.70	$33.35	$27.72	$28.23
Investment Operations
Net Investment Income	.404¹	.750¹	1.010¹	.969¹	.855¹	.811
Net Realized and Unrealized Gain (Loss) on Investments	7.933	(1.355)	2.289	(3.682)	5.625	(.532)
Total from Investment Operations	8.337	(.605)	3.299	(2.713)	6.480	.279
Distributions
Dividends from Net Investment Income	(.377)	(.795)	(.939)	(.937)	(.850)	(.789)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(.377)	(.795)	(.939)	(.937)	(.850)	(.789)
Net Asset Value, End of Period	$38.62	$30.66	$32.06	$29.70	$33.35	$27.72
Total Return²	27.27%	-1.89%	11.38%	-8.37%	23.75%	1.13%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$8,573	$6,919	$6,717	$5,458	$5,304	$3,635
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%	0.11%	0.11%	0.11%	0.11%
Ratio of Net Investment Income to Average Net Assets	2.16%	2.46%	3.29%	2.89%	2.82%	3.01%
Portfolio Turnover Rate³	2%	4%	4%	6%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3	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.

FTSE All-World ex-US Index Fund

Financial Highlights

Institutional Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$97.19	$101.64	$94.16	$105.72	$87.88	$89.48
Investment Operations
Net Investment Income	1.298¹	2.380¹	3.224¹	3.046¹	2.703¹	2.577
Net Realized and Unrealized Gain (Loss) on Investments	25.165	(4.281)	7.271	(11.621)	17.838	(1.669)
Total from Investment Operations	26.463	(1.901)	10.495	(8.575)	20.541	.908
Distributions
Dividends from Net Investment Income	(1.213)	(2.549)	(3.015)	(2.985)	(2.701)	(2.508)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.213)	(2.549)	(3.015)	(2.985)	(2.701)	(2.508)
Net Asset Value, End of Period	$122.44	$97.19	$101.64	$94.16	$105.72	$87.88
Total Return	27.30%	-1.87%	11.42%	-8.35%	23.74%	1.15%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,848	$4,658	$4,991	$4,719	$5,532	$4,424
Ratio of Total Expenses to Average Net Assets	0.08%	0.08%	0.08%	0.08%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.19%	2.45%	3.31%	2.92%	2.83%	3.02%
Portfolio Turnover Rate²	2%	4%	4%	6%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	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.

FTSE All-World ex-US Index Fund

Financial Highlights

Institutional Plus Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$102.93	$107.63	$99.71	$111.96	$93.06	$94.75
Investment Operations
Net Investment Income	1.373¹	2.548¹	3.403¹	3.336¹	2.863¹	2.754
Net Realized and Unrealized Gain (Loss) on Investments	26.654	(4.528)	7.725	(12.397)	18.928	(1.767)
Total from Investment Operations	28.027	(1.980)	11.128	(9.061)	21.791	.987
Distributions
Dividends from Net Investment Income	(1.297)	(2.720)	(3.208)	(3.189)	(2.891)	(2.677)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.297)	(2.720)	(3.208)	(3.189)	(2.891)	(2.677)
Net Asset Value, End of Period	$129.66	$102.93	$107.63	$99.71	$111.96	$93.06
Total Return	27.31%	-1.83%	11.43%	-8.33%	23.79%	1.18%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$3,984	$3,311	$2,793	$2,588	$2,731	$2,222
Ratio of Total Expenses to Average Net Assets	0.06%	0.06%	0.06%	0.06%	0.07%	0.07%
Ratio of Net Investment Income to Average Net Assets	2.19%	2.48%	3.30%	2.94%	2.86%	3.05%
Portfolio Turnover Rate²	2%	4%	4%	6%	4%	5%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	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.

FTSE All-World ex-US Index Fund

Notes to Financial Statements

Vanguard FTSE All-World ex-US Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: ETF Shares, Admiral Shares, Institutional Shares, and Institutional Plus Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker. Prior to November 7, 2019, the fund offered Investor Shares. Effective at the close of business on November 7, 2019, the remaining Investor Shares were converted to Admiral Shares.

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. Market disruptions associated with the COVID-19 pandemic have had a global impact, and uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of the fund and thus 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.

Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

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).

FTSE All-World ex-US Index Fund

with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.

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

During the six months ended April 30, 2021, 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.

FTSE All-World ex-US Index Fund

During the six months ended April 30, 2021, 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 all of its taxable income. The fund’s tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund’s tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund’s financial statements.

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

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

8. 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, 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; these fees 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 a rate based upon the higher of the one-month London Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal funds

FTSE All-World ex-US Index Fund

effective rate, or overnight bank funding rate plus an agreed-upon spread, except that 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, 2021, 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. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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 during the year, if any, are included in dividend income. 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.

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.

FTSE All-World ex-US Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At April 30, 2021, the fund had contributed to Vanguard capital in the amount of $1,837,000, representing less than 0.01% of the fund’s net assets and 0.73% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of April 30, 2021, 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	4,136,380	21,885	—	4,158,265
Common Stocks—Other	1,578,803	45,741,014	28,396	47,348,213
Temporary Cash Investments	639,358	—	—	639,358
Total	6,354,541	45,762,899	28,396	52,145,836
Derivative Financial Instruments
Assets
Futures Contracts¹	6,814	—	—	6,814
Forward Currency Contracts	—	2,267	—	2,267
Total	6,814	2,267	—	9,081
Liabilities
Forward Currency Contracts	—	1,730	—	1,730

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, 2021, 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	6,814	—	6,814

FTSE All-World ex-US Index Fund

Statement of Assets and Liabilities	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Unrealized Appreciation—Forward Currency Contracts	—	2,267	2,267
Total Assets	6,814	2,267	9,081

Unrealized Depreciation—Forward Currency Contracts	—	1,730	1,730
Total Liabilities	—	1,730	1,730

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

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2021, were:

Realized Net Gain (Loss) on Derivatives	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Futures Contracts	75,945	—	75,945
Forward Currency Contracts	—	2,296	2,296
Realized Net Gain (Loss) on Derivatives	75,945	2,296	78,241
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	21,537	—	21,537
Forward Currency Contracts	—	3,407	3,407
Change in Unrealized Appreciation (Depreciation) on Derivatives	21,537	3,407	24,944

E.	As of April 30, 2021, 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	38,384,946
Gross Unrealized Appreciation	17,393,745
Gross Unrealized Depreciation	(3,625,504)
Net Unrealized Appreciation (Depreciation)	13,768,241

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, 2020, the fund had available capital losses totaling $2,888,169,000 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, 2021; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

FTSE All-World ex-US Index Fund

F.	During the six months ended April 30, 2021, the fund purchased $3,901,781,000 of investment securities and sold $1,321,979,000 of investment securities, other than temporary cash investments. Purchases and sales include $1,911,510,000 and $298,660,000, 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, 2021		Year Ended October 31, 2020
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
Investor Shares
Issued	—	—	5	—
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed¹	—	—	(1,789)	(86)
Net Increase (Decrease)—Investor Shares	—	—	(1,784)	(86)
ETF Shares
Issued	2,779,242	46,422	1,452,678	28,381
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	—	—	(627,910)	(13,500)
Net Increase (Decrease)—ETF Shares	2,779,242	46,422	824,768	14,881
Admiral Shares
Issued¹	710,709	19,167	3,262,290	120,061
Issued in Lieu of Cash Distributions	63,824	1,750	136,906	4,436
Redeemed	(895,881)	(24,632)	(3,055,236)	(108,328)
Net Increase (Decrease)—Admiral Shares	(121,348)	(3,715)	343,960	16,169
Institutional Shares
Issued	659,153	5,615	1,200,708	13,238
Issued in Lieu of Cash Distributions	50,155	434	109,841	1,122
Redeemed	(739,410)	(6,213)	(1,445,557)	(15,536)
Net Increase (Decrease)—Institutional Shares	(30,102)	(164)	(135,008)	(1,176)
Institutional Plus Shares
Issued	780,850	6,372	743,171	7,460
Issued in Lieu of Cash Distributions	40,782	333	73,092	705
Redeemed	(997,540)	(8,150)	(198,095)	(1,944)
Net Increase (Decrease)—Institutional Plus Shares	(175,908)	(1,445)	618,168	6,221

In November 2018, the fund announced changes to the availability and minimum investment criteria of the Investor and Admiral share classes. As a result, all of the outstanding Investor Shares automatically converted to Admiral Shares beginning in April 2019. Investor Shares—Redeemed and Admiral Shares—Issued include 1,046 and 664 shares, respectively, in the amount of $22,000 from the conversion during the year ended October 31, 2020.

H.	Management has determined that no events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements.

FTSE All-World ex-US Small-Cap Index Fund

Fund Allocation

As of April 30, 2021

Basic Materials	11.0%
Consumer Discretionary	14.7
Consumer Staples	5.0
Energy	3.8
Financials	10.0
Health Care	7.1
Industrials	20.1
Real Estate	10.7
Technology	12.2
Telecommunications	1.7
Utilities	3.7
Other	0.0

The Industry Classification Benchmark (“ICB”) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB.

FTSE All-World ex-US Small-Cap Index Fund

Financial Statements (unaudited)

Schedule of Investments—Investments Summary

As of April 30, 2021

		Shares	Market Value• ($000)	Percentage of Net Assets
Common Stocks
†Australia^*,1,2,3			549,013	4.9%
Austria
	Wienerberger AG	423,354	16,597	0.2%
^†	Austria—Other^*,1,2		73,213	0.6%
			89,810	0.8%
†Belgium^*,1			126,735	1.1%
†Brazil^*,2			100,772	0.9%
Canada
	First Quantum Minerals Ltd.	2,000,423	46,107	0.4%
	Open Text Corp.	925,062	43,561	0.4%
	WSP Global Inc.	395,548	41,072	0.4%
	Emera Inc.¹	827,182	37,599	0.3%
	Kirkland Lake Gold Ltd.	975,377	36,241	0.3%
	Algonquin Power & Utilities Corp.	2,060,362	33,240	0.3%
	Kinross Gold Corp.	4,433,564	31,201	0.3%
	CAE Inc.^*	970,983	30,414	0.3%
	CCL Industries Inc. Class B	510,215	28,961	0.3%
	Lundin Mining Corp.	2,340,974	28,282	0.3%
	TFI International Inc.	312,856	27,413	0.2%
	Canadian Apartment Properties REIT¹	589,727	26,215	0.2%
	Ritchie Bros Auctioneers Inc.	381,439	24,264	0.2%
	Gildan Activewear Inc.^*	687,914	23,875	0.2%
	Northland Power Inc.	689,554	23,753	0.2%
	Pan American Silver Corp.	743,859	23,650	0.2%
	Cameco Corp.	1,403,116	23,584	0.2%
	West Fraser Timber Co. Ltd.	290,924	22,462	0.2%

FTSE All-World ex-US Small-Cap Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
	Inter Pipeline Ltd.	1,521,301	22,179	0.2%
	Toromont Industries Ltd.	273,171	21,780	0.2%
	FirstService Corp.	129,604	21,053	0.2%
	iA Financial Corp. Inc.	365,529	20,585	0.2%
	TMX Group Ltd.	182,181	20,076	0.2%
	Tourmaline Oil Corp.	906,820	19,565	0.2%
	Descartes Systems Group Inc.^*	301,304	19,275	0.2%
	RioCan REIT¹	1,117,366	19,108	0.2%
	Element Fleet Management Corp.	1,558,349	19,081	0.2%
	Ballard Power Systems Inc.^*,1	854,280	18,654	0.2%
	Keyera Corp.¹	802,966	18,363	0.2%
	Stantec Inc.	386,599	18,101	0.2%
	B2Gold Corp.	3,688,439	17,765	0.2%
	Empire Co. Ltd. Class A	563,453	17,722	0.2%
	AltaGas Ltd.	943,159	17,625	0.2%
	Parkland Corp.	530,012	17,024	0.2%
	Onex Corp.	248,439	16,633	0.1%
^†	Canada—Other^*,1		775,414	6.5%
			1,651,897	14.7%
†Chile^*			10,776	0.1%
†China^*,1,2,3			681,080	6.1%
†Colombia			2,409	0.0%
†Czech Republic			787	0.0%
Denmark
	Royal Unibrew A/S	173,697	21,217	0.2%
^†	Denmark—Other^*,2		130,622	1.1%
			151,839	1.3%
†Egypt^*			7,288	0.1%
Finland
	Valmet Oyj	474,861	19,834	0.2%
^†	Finland—Other^*,1,2		101,157	0.9%
			120,991	1.1%
†France^*,1,2,3			235,596	2.1%
Germany
	Dialog Semiconductor plc^*	257,002	20,134	0.2%
^†	Germany—Other^*,1,2		385,284	3.4%
			405,418	3.6%
†Greece^*			13,402	0.1%
†Hong Kong^*,1,2,3			95,835	0.9%
†Hungary^*,1			544	0.0%
†India^*,1,2,3			380,207	3.4%
†Indonesia^*,3			56,855	0.5%

FTSE All-World ex-US Small-Cap Index Fund

		Shares	Market Value• ($000)	Percentage of Net Assets
Ireland
	Bank of Ireland Group plc^*	3,197,705	18,738	0.2%
^†	Ireland—Other^*		15,047	0.1%
			33,785	0.3%
†Israel^*			63,810	0.6%
†Italy^*,1,2			237,176	2.1%
†Japan^*,1			1,502,925	13.4%
†Kuwait^*			12,585	0.1%
†Malaysia^*,2			88,728	0.8%
†Mexico^*,2			50,264	0.4%
Netherlands
	BE Semiconductor Industries NV	244,461	19,744	0.2%
^†	Netherlands—Other^*,2,3		130,929	1.1%
			150,673	1.3%
†New Zealand^*			73,252	0.7%
†Norway^*,2			167,936	1.5%
†Pakistan^*			19,277	0.2%
†Philippines^*,2			19,645	0.2%
†Poland^*,1,3			47,399	0.4%
†Portugal^*			24,861	0.2%
†Qatar^*			4,054	0.0%
†Romania			972	0.0%
†Russia^*,2			10,173	0.1%
†Saudi Arabia^*			47,547	0.4%
†Singapore^*,1,3			81,504	0.7%
†South Africa^*,1,3			66,928	0.6%
†South Korea^*,3			542,190	4.8%
†Spain^*,1,2,3			141,574	1.3%
Sweden
	Thule Group AB^*,1,2	389,362	17,661	0.2%
	Dometic Group AB²	1,083,131	17,045	0.2%
^†	Sweden—Other^*,1,2,3		442,054	3.8%
			476,760	4.2%
†Switzerland^*,1,2,3			313,504	2.8%
†Taiwan^*,1,3			874,811	7.8%

FTSE All-World ex-US Small-Cap Index Fund

			Shares	Market Value• ($000)	Percentage of Net Assets
†Thailand^*,1,3				160,897	1.4%
†Turkey^*,2,3				40,422	0.4%
†United Arab Emirates^*,3				2,840	0.0%
United Kingdom
	Electrocomponents plc		1,601,871	23,577	0.2%
	Royal Mail plc		3,280,012	22,472	0.2%
	Dechra Pharmaceuticals plc		376,073	20,948	0.2%
	Spectris plc		414,401	18,615	0.2%
	UNITE Group plc		1,139,598	18,334	0.2%
	Games Workshop Group plc		116,676	17,483	0.2%
	Diploma plc		434,347	17,195	0.2%
^†	United Kingdom—Other^*,1,2,3			1,060,248	9.3%
				1,198,872	10.7%
Total Common Stocks (Cost $9,589,393)				11,136,618	99.1%
		Coupon
Temporary Cash Investments
Money Market Fund
	Vanguard Market Liquidity Fund (Cost $468,055)^4,5	0.068%	4,680,736	468,074	4.2%
Total Investments (Cost $10,057,448)				11,604,692	103.3%
Other Assets and Liabilities—Net				(365,719)	(3.3%)
Net Assets				11,238,973	100.0%
Cost is in $000.

•	See Note A in Notes to Financial Statements.
†	Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $401,427,000.
2	Certain securities are 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, 2021, the aggregate value was $516,206,000, representing 4.6% of net assets.
3	Certain securities are valued using significant unobservable inputs.
4	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
5	Collateral of $439,682,000 was received for securities on loan.
	REIT—Real Estate Investment Trust.

FTSE All-World ex-US Small-Cap Index Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
			($000)
	Expiration	Number of Long (Short) Contracts	Notional Amount	Value and Unrealized Appreciation (Depreciation)
Long Futures Contracts
E-mini Russell 2000 Index	June 2021	187	21,145	(519)
MSCI EAFE Index	June 2021	220	24,830	592
MSCI Emerging Markets Index	June 2021	680	45,445	(51)
S&P TSX 60 Index	June 2021	31	5,727	111
				133

Forward Currency Contracts
	Contract Settlement Date	Contract Amount (000)				Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
Counterparty	Contract Settlement Date	Receive		Deliver		Unrealized Appreciation ($000)	Unrealized Depreciation ($000)
BNP Paribas	6/16/21	CAD	2,639	USD	2,088	59	—
BNP Paribas	6/16/21	USD	1,246	CHF	1,166	—	(32)
Royal Bank of Canada	6/16/21	USD	513	EUR	433	—	(8)
UBS AG	6/16/21	USD	514	GBP	375	—	(4)
BNP Paribas	6/16/21	USD	8,470	JPY	933,315	—	(73)
Morgan Stanley Capital Services Inc.	6/16/21	USD	5,619	JPY	619,805	—	(54)
						59	(171)

CAD—Canadian dollar.

CHF—Swiss franc.

EUR—euro.

GBP—British pound.

JPY—Japanese yen.

USD—U.S. dollar.

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

FTSE All-World ex-US Small-Cap Index Fund

Statement of Assets and Liabilities

As of April 30, 2021


($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value
Unaffiliated Issuers (Cost $9,589,393)	11,136,618
Affiliated Issuers (Cost $468,055)	468,074
Total Investments in Securities	11,604,692
Investment in Vanguard	381
Cash	9,426
Cash Collateral Pledged—Futures Contracts	6,123
Foreign Currency, at Value (Cost $39,121)	38,843
Receivables for Investment Securities Sold	3,997
Receivables for Accrued Income	41,297
Receivables for Capital Shares Issued	7,247
Unrealized Appreciation—Forward Currency Contracts	59
Total Assets	11,712,065
Liabilities
Payables for Investment Securities Purchased	20,703
Collateral for Securities on Loan	439,682
Payables for Capital Shares Redeemed	5,815
Payables to Vanguard	535
Variation Margin Payable—Futures Contracts	1,465
Unrealized Depreciation—Forward Currency Contracts	171
Deferred Foreign Capital Gains Taxes	4,721
Total Liabilities	473,092
Net Assets	11,238,973

FTSE All-World ex-US Small-Cap Index Fund

Statement of Assets and Liabilities (continued)
At April 30, 2021, net assets consisted of:
($000s, except shares and per-share amounts)	Amount
Paid-in Capital	9,890,985
Total Distributable Earnings (Loss)	1,347,988
Net Assets	11,238,973

ETF Shares—Net Assets
Applicable to 69,705,411 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	9,324,071
Net Asset Value Per Share—ETF Shares	$133.76

Admiral Shares—Net Assets
Applicable to 45,989,984 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	1,518,795
Net Asset Value Per Share—Admiral Shares	$33.02

Institutional Shares—Net Assets
Applicable to 1,549,574 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	396,107
Net Asset Value Per Share—Institutional Shares	$255.62

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

FTSE All-World ex-US Small-Cap Index Fund

Statement of Operations


	Six Months Ended April 30, 2021
	($000)
Investment Income
Income
Dividends¹	81,067
Interest²	21
Securities Lending—Net	4,178
Total Income	85,266
Expenses
The Vanguard Group—Note B
Investment Advisory Services	613
Management and Administrative—ETF Shares	2,575
Management and Administrative—Admiral Shares	841
Management and Administrative—Institutional Shares	153
Marketing and Distribution—ETF Shares	116
Marketing and Distribution—Admiral Shares	30
Marketing and Distribution—Institutional Shares	5
Custodian Fees	586
Shareholders’ Reports—ETF Shares	—
Shareholders’ Reports—Admiral Shares	10
Shareholders’ Reports—Institutional Shares	—
Trustees’ Fees and Expenses	1
Total Expenses	4,930
Net Investment Income	80,336
Realized Net Gain (Loss)
Investment Securities Sold^2,3	140,471
Futures Contracts	17,018
Swap Contracts	154
Forward Currency Contracts	546
Foreign Currencies	478
Realized Net Gain (Loss)	158,667

FTSE All-World ex-US Small-Cap Index Fund

Statement of Operations (continued)
	Six Months Ended April 30, 2021
	($000)
Change in Unrealized Appreciation (Depreciation)
Investment Securities^2,4	1,886,139
Futures Contracts	1,760
Swap Contracts	(31)
Forward Currency Contracts	(163)
Foreign Currencies	(207)
Change in Unrealized Appreciation (Depreciation)	1,887,498
Net Increase (Decrease) in Net Assets Resulting from Operations	2,126,501

1	Dividends are net of foreign withholding taxes of $10,249,000.
2	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $21,000, $0, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
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 $4,721,000.

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

FTSE All-World ex-US Small-Cap Index Fund

Statement of Changes in Net Assets


	Six Months Ended April 30, 2021	Year Ended October 31, 2020
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	80,336	137,446
Realized Net Gain (Loss)	158,667	(4,013)
Change in Unrealized Appreciation (Depreciation)	1,887,498	(143,826)
Net Increase (Decrease) in Net Assets Resulting from Operations	2,126,501	(10,393)
Distributions
Investor Shares	—	—
ETF Shares	(92,406)	(126,897)
Admiral Shares	(21,282)	(23,238)
Institutional Shares	(5,747)	(5,704)
Total Distributions	(119,435)	(155,839)
Capital Share Transactions
Investor Shares	—	(1,182)
ETF Shares	2,927,560	(454,913)
Admiral Shares	68,114	160,273
Institutional Shares	54,412	19,153
Net Increase (Decrease) from Capital Share Transactions	3,050,086	(276,669)
Total Increase (Decrease)	5,057,152	(442,901)
Net Assets
Beginning of Period	6,181,821	6,624,722
End of Period	11,238,973	6,181,821

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

FTSE All-World ex-US Small-Cap Index Fund

Financial Highlights

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$102.74	$105.96	$100.93	$116.30	$96.34	$95.09
Investment Operations
Net Investment Income	1.212¹	2.177¹	2.871¹	3.019¹	2.650¹	2.574
Net Realized and Unrealized Gain (Loss) on Investments	31.775	(2.905)	5.156	(15.269)	20.140	1.216
Total from Investment Operations	32.987	(.728)	8.027	(12.250)	22.790	3.790
Distributions
Dividends from Net Investment Income	(1.967)	(2.492)	(2.997)	(3.120)	(2.830)	(2.540)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.967)	(2.492)	(2.997)	(3.120)	(2.830)	(2.540)
Net Asset Value, End of Period	$133.76	$102.74	$105.96	$100.93	$116.30	$96.34
Total Return	32.35%	-0.81%	8.28%	-10.87%	24.16%	4.11%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$9,324	$4,814	$5,400	$5,009	$4,568	$2,652
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%	0.11%	0.12%	0.13%	0.13%
Ratio of Net Investment Income to Average Net Assets	1.93%	2.17%	2.80%	2.60%	2.52%	2.77%
Portfolio Turnover Rate²	9%	22%	17%	15%	14%	14%
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.

FTSE All-World ex-US Small-Cap Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,	February 7, 2019¹ to October 31, 2019
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	February 7, 2019¹ to October 31, 2019
Net Asset Value, Beginning of Period	$25.37	$26.16	$25.00
Investment Operations
Net Investment Income²	.270	.524	.572
Net Realized and Unrealized Gain (Loss) on Investments	7.862	(.711)	.935
Total from Investment Operations	8.132	(.187)	1.507
Distributions
Dividends from Net Investment Income	(.482)	(.603)	(.347)
Distributions from Realized Capital Gains	—	—	—
Total Distributions	(.482)	(.603)	(.347)
Net Asset Value, End of Period	$33.02	$25.37	$26.16
Total Return³	32.27%	-0.84%	6.08%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$1,519	$1,110	$981
Ratio of Total Expenses to Average Net Assets	0.16%	0.16%	0.16%⁴
Ratio of Net Investment Income to Average Net Assets	1.75%	2.12%	3.07%⁴
Portfolio Turnover Rate⁵	9%	22%	17%⁶
The expense ratio and net investment income ratio for the current period have been annualized.

1	Inception.
2	Calculated based on average shares outstanding.
3	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
4	Annualized.
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.
6	Reflects the fund’s portfolio turnover for the fiscal year ended October 31, 2019.

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

FTSE All-World ex-US Small-Cap Index Fund

Financial Highlights

Institutional Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	Year Ended October 31,
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$196.33	$202.46	$192.87	$222.24	$184.07	$181.69
Investment Operations
Net Investment Income	2.166¹	4.111¹	5.500¹	5.748¹	5.044¹	4.937
Net Realized and Unrealized Gain (Loss) on Investments	60.887	(5.479)	9.824	(29.138)	38.536	2.326
Total from Investment Operations	63.053	(1.368)	15.324	(23.390)	43.580	7.263
Distributions
Dividends from Net Investment Income	(3.763)	(4.762)	(5.734)	(5.980)	(5.410)	(4.883)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(3.763)	(4.762)	(5.734)	(5.980)	(5.410)	(4.883)
Net Asset Value, End of Period	$255.62	$196.33	$202.46	$192.87	$222.24	$184.07
Total Return	32.33%	-0.81%	8.26%	-10.85%	24.18%	4.11%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$396	$258	$242	$203	$226	$175
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%	0.11%	0.11%	0.12%	0.12%
Ratio of Net Investment Income to Average Net Assets	1.81%	2.13%	2.81%	2.61%	2.53%	2.78%
Portfolio Turnover Rate²	9%	22%	17%	15%	14%	14%
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.

FTSE All-World ex-US Small-Cap Index Fund

Notes to Financial Statements

Vanguard FTSE All-World ex-US Small-Cap Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. 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 NYSE Arca; they can be purchased and sold through a broker. Prior to November 7, 2019, the fund offered Investor Shares. Effective at the close of business on November 7, 2019, the remaining Investor Shares were converted to Admiral Shares.

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.

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

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

FTSE All-World ex-US Small-Cap Index Fund

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.

During the six months ended April 30, 2021, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.

FTSE All-World ex-US Small-Cap Index Fund

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

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

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

During the six months ended April 30, 2021, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period. The fund had no open swap contracts at April 30, 2021.

6. 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.

7. 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.

FTSE All-World ex-US Small-Cap Index Fund

8. 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.

9. 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, 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; these fees 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 a rate based upon the higher of the one-month London Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread, except that borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

For the six months ended April 30, 2021, the fund did not utilize the credit facilities or the Interfund Lending Program.

FTSE All-World ex-US Small-Cap Index Fund

10. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At April 30, 2021, the fund had contributed to Vanguard capital in the amount of $381,000, representing less than 0.01% of the fund’s net assets and 0.15% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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.).

FTSE All-World ex-US Small-Cap Index Fund

The following table summarizes the market value of the fund’s investments and derivatives as of April 30, 2021, 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	1,816,118	—	—	1,816,118
Common Stocks—Other	82,019	9,200,879	37,602	9,320,500
Temporary Cash Investments	468,074	—	—	468,074
Total	2,366,211	9,200,879	37,602	11,604,692
Derivative Financial Instruments
Assets
Futures Contracts¹	703	—	—	703
Forward Currency Contracts	—	59	—	59
Total	703	59	—	762
Liabilities
Futures Contracts¹	570	—	—	570
Forward Currency Contracts	—	171	—	171
Total	570	171	—	741

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, 2021, 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	703	—	703
Unrealized Appreciation—Forward Currency Contracts	—	59	59
Total Assets	703	59	762

Unrealized Depreciation—Futures Contracts¹	570	—	570
Unrealized Depreciation—Forward Currency Contracts	—	171	171
Total Liabilities	570	171	741

FTSE All-World ex-US Small-Cap Index Fund

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2021, were:

Realized Net Gain (Loss) on Derivatives	Equity Contracts ($000)	Foreign Exchange Contracts ($000)	Total ($000)
Futures Contracts	17,018	—	17,018
Swap Contracts	154	—	154
Forward Currency Contracts	—	546	546
Realized Net Gain (Loss) on Derivatives	17,172	546	17,718
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	1,760	—	1,760
Swap Contracts	(31)	—	(31)
Forward Currency Contracts	—	(163)	(163)
Change in Unrealized Appreciation (Depreciation) on Derivatives	1,729	(163)	1,566

E.	As of April 30, 2021, 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	10,118,403
Gross Unrealized Appreciation	2,252,960
Gross Unrealized Depreciation	(766,650)
Net Unrealized Appreciation (Depreciation)	1,486,310

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, 2020, the fund had available capital losses totaling $357,302,000 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, 2021; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

During the six months ended April 30, 2021, the fund purchased $3,753,003,000 of investment securities and sold $744,539,000 of investment securities, other than temporary cash investments. Purchases and sales include $2,311,613,000 and $17,765,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

FTSE All-World ex-US Small-Cap Index Fund

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

	Six Months Ended April 30, 2021		Year Ended October 31, 2020
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
Investor Shares
Issued	—	—	32	1
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed¹	—	—	(1,214)	(30)
Net Increase (Decrease)—Investor Shares	—	—	(1,182)	(29)
ETF Shares
Issued	2,950,018	23,049	244,640	2,889
Issued in Lieu of Cash Distributions	—	—	—	—
Redeemed	(22,458)	(200)	(699,553)	(7,000)
Net Increase (Decrease)—ETF Shares	2,927,560	22,849	(454,913)	(4,111)
Admiral Shares
Issued¹	190,373	6,198	470,074	19,863
Issued in Lieu of Cash Distributions	17,984	607	19,873	738
Redeemed	(140,243)	(4,560)	(329,674)	(14,370)
Net Increase (Decrease)—Admiral Shares	68,114	2,245	160,273	6,231
Institutional Shares
Issued	112,169	471	91,432	518
Issued in Lieu of Cash Distributions	5,631	24	5,560	27
Redeemed	(63,388)	(259)	(77,839)	(426)
Net Increase (Decrease)—Institutional Shares	54,412	236	19,153	119

In November 2018, the fund announced changes to the availability and minimum investment criteria of the Investor and Admiral share classes. As a result, all of the outstanding Investor Shares automatically converted to Admiral Shares beginning in April 2019. Investor Shares—Redeemed and Admiral Shares—Issued include 283 shares and 437 shares, respectively, in the amount of $12,000 from the conversion during the year ended October 31, 2020.

At April 30, 2021, one shareholder was a record or beneficial owner of 26% of the fund’s net assets. If this shareholder were to redeem its investment in the fund, the redemption might result in an increase in the fund’s expense ratio, cause the fund to incur higher transaction costs, or lead to the realization of taxable capital gains.

H.	Management has determined that no events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements.

Trustees Approve Advisory Arrangements

The board of trustees of Vanguard FTSE All-World ex-US Index Fund and Vanguard FTSE All-World ex-US Small-Cap Index Fund has renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity Index Group. The board determined that continuing each fund’s internalized management structure was in the best interests of the fund and its shareholders.

The board based its decisions 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

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 arrangements. Rather, it was the totality of the circumstances that drove the board’s decisions.

Nature, extent, and quality of services

The board reviewed the quality of the funds’ 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 arrangements.

Investment performance

The board considered the short- and long-term performance of the funds, 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 arrangements should continue.

Cost

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

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 funds’ arrangements with Vanguard ensure that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.

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

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 the Program for Vanguard FTSE All-World ex-US Index Fund and Vanguard FTSE All-World ex-US Small-Cap Index Fund, 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, 2020, through December 31, 2020 (the “Review Period”). The Program Administrator Report stated that during the Review Period the Program operated and was implemented effectively to manage the funds' liquidity risk.

London Stock Exchange Group companies include FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc. (“FTSE TMX”). All rights reserved. “FTSE^®”, “Russell^®”, “MTS^®”, “FTSE TMX^®” and “FTSE Russell” and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Indices or the fitness or suitability of the Indices for any particular purpose to which they might be put. The London Stock Exchange Group companies do not provide investment advice and nothing in this document should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the London Stock Exchange Group companies. Distribution of the London Stock Exchange Group companies’ index values and the use of their indexes to create financial products require a license with FTSE, FTSE TMX, MTS and/or Russell and/or its licensors.

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

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

Q7702 062021