Semiannual Report   |   April 30, 2022
Vanguard International Dividend Index Funds
Vanguard International Dividend Appreciation Index Fund
Vanguard International High Dividend Yield Index Fund

 

Contents
About Your Fund’s Expenses

1
International Dividend Appreciation Index Fund

3
International High Dividend Yield Index Fund

21
Trustees Approve Advisory Arrangements

54
Liquidity Risk Management

56

 

About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“
Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
1

 

Six Months Ended April 30, 2022      
  Beginning
Account Value
10/31/2021
Ending
Account Value
4/30/2022
Expenses
Paid During
Period
Based on Actual Fund Return      
International Dividend Appreciation Index Fund      
ETF Shares $1,000.00 $888.90 $0.70
Admiral™ Shares 1,000.00 888.90 0.75
International High Dividend Yield Index Fund      
ETF Shares $1,000.00 $959.70 $1.07
Admiral Shares 1,000.00 959.90 1.07
Based on Hypothetical 5% Yearly Return      
International Dividend Appreciation Index Fund      
ETF Shares $1,000.00 $1,024.05 $0.75
Admiral Shares 1,000.00 1,024.00 0.80
International High Dividend Yield Index Fund      
ETF Shares $1,000.00 $1,023.70 $1.10
Admiral Shares 1,000.00 1,023.70 1.10
The calculations are based on expenses incurred in the most recent six-month period. The funds' annualized six-month expense ratios for that period are: for the International Dividend Appreciation Index Fund, 0.15% for ETF Shares and 0.16% for Admiral Shares; and for the International High Dividend Yield Index Fund, 0.22% for ETF Shares and 0.22% for Admiral Shares. The dollar amounts shown as “Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).
2

 

International Dividend Appreciation Index Fund
Fund Allocation
As of April 30, 2022
Switzerland 17.1%
Canada 17.0
Japan 14.4
United Kingdom 8.0
India 6.9
Denmark 5.8
France 5.3
Germany 5.0
China 4.7
Hong Kong 4.0
Australia 3.8
Sweden 2.4
Other 5.6
The table reflects the fund’s investments, except for short-term investments and derivatives.
The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.
3

 

International Dividend Appreciation Index Fund
Financial Statements (unaudited)
Schedule of Investments
As of April 30, 2022
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value

($000)
Common Stocks (99.5%)
Australia (3.8%)
  CSL Ltd.    509,843    97,304
  Sonic Healthcare Ltd.    510,791    13,192
  Computershare Ltd. (XASX)    610,154    10,757
  Northern Star Resources Ltd.  1,240,968     8,530
  Washington H Soul Pattinson & Co. Ltd.    262,358     5,112
  carsales.com Ltd.    300,854     4,442
  Steadfast Group Ltd.  1,043,150     3,777
  Domino's Pizza Enterprises Ltd.     67,118     3,518
  Altium Ltd.    129,895     2,926
  Technology One Ltd.    295,518     2,133
  Brickworks Ltd.     88,713     1,473
  AUB Group Ltd.     79,138     1,281
  Collins Foods Ltd.    116,541       835
  Dicker Data Ltd.     60,793       562
        155,842
Belgium (0.5%)
  UCB SA    134,652    15,306
  Sofina SA     16,713     5,122
         20,428
Brazil (0.1%)
  Raia Drogasil SA  1,144,263     4,844
Canada (16.9%)
  Toronto-Dominion Bank  1,942,890   140,335
  Brookfield Asset Management Inc. Class A  1,554,286    77,530
  Canadian Natural Resources Ltd.  1,242,835    76,922
  Canadian National Railway Co.    642,349    75,543
  Alimentation Couche Tard Inc.    885,264    39,410
  Franco-Nevada Corp.    203,911    30,838
  Agnico Eagle Mines Ltd.    484,137    28,182
  Intact Financial Corp.    187,471    26,227
  Fortis Inc. (XTSE)    505,566    24,600
  Magna International Inc.    294,984    17,777
  Dollarama Inc.    296,287    16,472
  Loblaw Cos. Ltd.    174,109    15,926
  Metro Inc.    257,027    14,127
  Imperial Oil Ltd.    231,788    11,670
  Open Text Corp.    288,103    11,538
    Shares Market
Value

($000)
  George Weston Ltd.     75,090     9,342
  Canadian Tire Corp. Ltd. Class A     60,013     8,266
  Toromont Industries Ltd.     87,867     7,735
  TFI International Inc.     86,329     6,944
  CCL Industries Inc. Class B    157,639     6,873
  Ritchie Bros Auctioneers Inc.    117,788     6,488
  Empire Co. Ltd. Class A    176,087     5,816
  Saputo Inc.    256,521     5,483
  Stantec Inc.    118,184     5,425
  Finning International Inc.    167,963     4,725
  Parkland Corp.    165,560     4,703
  Premium Brands Holdings Corp. Class A     38,786     3,167
  Boyd Group Services Inc.     22,795     2,821
  Canadian Western Bank     94,603     2,387
  Stella-Jones Inc.     68,140     1,883
  Cogeco Communications Inc.     21,638     1,777
  Maple Leaf Foods Inc.     79,538     1,752
  Enghouse Systems Ltd.     44,789     1,260
  goeasy Ltd.     13,413     1,204
  Savaria Corp.     51,982       621
  Cogeco Inc.      8,687       517
  Hardwoods Distribution Inc.     19,546       494
        696,780
China (4.6%)
  Tencent Holdings Ltd.  3,374,924   159,043
  Shenzhou International Group Holdings Ltd.    851,700    11,557
  CSPC Pharmaceutical Group Ltd.  9,090,000     9,293
  China Tourism Group Duty Free Corp. Ltd. Class A    166,155     4,522
  China Resources Gas Group Ltd.    977,000     3,671
  Jiangsu Hengrui Medicine Co. Ltd. Class A    540,569     2,408
  Angel Yeast Co. Ltd. Class A     68,000       395
        190,889
Colombia (0.1%)
  Grupo Nutresa SA    117,291     1,441
  Grupo Argos SA    356,186     1,296
  Grupo de Inversiones Suramericana SA    116,147     1,177
4

 

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
  Grupo De Inversiones Suramericana SA Preference Shares    110,332       611
          4,525
Denmark (5.7%)
  Novo Nordisk A/S Class B  1,591,243   181,762
  DSV A/S    227,406    37,283
  Coloplast A/S Class B    126,343    17,022
        236,067
Finland (0.1%)
  Huhtamaki OYJ    102,257     3,865
  Revenio Group OYJ     28,531     1,358
          5,223
France (5.2%)
  Sanofi  1,224,549   129,428
  Schneider Electric SE    605,934    86,933
  Pharmagest Interactive      5,126       412
        216,773
Germany (5.0%)
  SAP SE  1,164,332   118,000
  Symrise AG Class A    141,427    16,829
  Fresenius SE & Co. KGaA    440,244    15,562
  Fresenius Medical Care AG & Co. KGaA    212,214    13,197
  Brenntag SE    164,533    12,696
  LEG Immobilien SE (XETR)     77,654     7,962
  Nemetschek SE     59,005     4,682
  Bechtle AG     86,773     4,010
  TAG Immobilien AG    156,538     3,128
  Encavis AG    124,876     2,726
  FUCHS PETROLUB SE Preference Shares     66,708     2,104
  Gerresheimer AG     30,179     2,096
  FUCHS PETROLUB SE     42,945     1,145
  STRATEC SE      7,588       859
  Atoss Software AG      4,122       599
  Cewe Stiftung & Co. KGaA      5,673       518
  MBB SE      2,275       304
        206,417
Hong Kong (4.0%)
  AIA Group Ltd. 12,879,160   126,522
  Techtronic Industries Co. Ltd.  1,835,484    24,500
  Hong Kong & China Gas Co. Ltd. 11,538,145    12,725
  SUNeVision Holdings Ltd.  1,491,000     1,239
        164,986
India (6.9%)
  Reliance Industries Ltd.  3,673,130   133,086
  Infosys Ltd. ADR  3,245,744    64,493
  Hindustan Unilever Ltd.    948,263    27,551
  Asian Paints Ltd.    478,997    20,191
  Infosys Ltd.    675,548    13,691
  Pidilite Industries Ltd.    161,152     5,094
  Tata Elxsi Ltd.     36,311     3,637
  Persistent Systems Ltd.     53,350     2,990
  Astral Ltd. (XNSE)     93,430     2,612
  Berger Paints India Ltd.    254,068     2,382
  Sundaram Finance Ltd.     71,149     1,864
  LIC Housing Finance Ltd.    317,669     1,557
  CRISIL Ltd.     25,081     1,203
  Relaxo Footwears Ltd.     75,300     1,058
  KEI Industries Ltd.     56,806       889
  KEC International Ltd.    128,840       667
  Balaji Amines Ltd.     10,820       453
    Shares Market
Value

($000)
  Caplin Point Laboratories Ltd.     23,870       219
* Yes Bank Ltd.    545,158        96
        283,733
Indonesia (0.8%)
  Bank Central Asia Tbk PT 58,857,200    33,011
Ireland (0.4%)
  Kerry Group plc Class A    163,805    18,078
Israel (0.0%)
  Matrix IT Ltd.     34,088       859
Italy (0.4%)
  Recordati Industria Chimica e Farmaceutica SpA    107,084     5,160
  Interpump Group SpA     87,913     3,554
  Reply SpA     23,804     3,505
  DiaSorin SpA     20,812     2,726
         14,945
Japan (14.4%)
  Shin-Etsu Chemical Co. Ltd.    421,300    57,901
  Murata Manufacturing Co. Ltd.    683,000    40,712
  Tokio Marine Holdings Inc.    742,400    40,141
  Seven & i Holdings Co. Ltd.    849,200    37,549
  Nippon Telegraph & Telephone Corp.  1,271,900    37,482
  Astellas Pharma Inc.  1,982,500    30,185
  Terumo Corp.    807,976    24,049
  Asahi Group Holdings Ltd.    539,843    20,348
  Kao Corp.    506,600    20,304
  Aeon Co. Ltd.    927,600    17,629
  Shionogi & Co. Ltd.    301,900    16,793
  Unicharm Corp.    476,300    16,571
  M3 Inc.    455,400    14,543
  Nomura Research Institute Ltd.    460,500    13,021
  Sekisui House Ltd.    692,100    12,020
  Nitto Denko Corp.    159,500    10,706
  Obic Co. Ltd.     70,900    10,475
  Nitori Holdings Co. Ltd.     92,601     9,527
  Yakult Honsha Co. Ltd.    171,000     8,854
  Pan Pacific International Holdings Corp.    566,764     8,679
  Nissan Chemical Corp.    151,900     8,024
  Hulic Co. Ltd.    630,775     5,326
  TIS Inc.    231,800     5,206
  Chiba Bank Ltd.    788,800     4,546
  MonotaRO Co. Ltd.    260,867     4,481
  Kobayashi Pharmaceutical Co. Ltd.     62,200     4,242
  Azbil Corp.    138,700     4,211
  Nippon Sanso Holdings Corp.    226,400     4,074
  GMO Payment Gateway Inc.     47,000     3,943
  Kurita Water Industries Ltd.    114,000     3,889
  Nisshin Seifun Group Inc.    278,500     3,713
  Tokyo Tatemono Co. Ltd.    223,200     3,147
  Alfresa Holdings Corp.    226,700     3,083
  Open House Co. Ltd.     79,300     3,068
  Nomura Real Estate Holdings Inc.    124,680     3,038
 
5

 

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
  COMSYS Holdings Corp.    133,100     2,763
  Hitachi Transport System Ltd.     40,200     2,639
  Rinnai Corp.     40,984     2,620
  SCSK Corp.    161,900     2,574
  Hikari Tsushin Inc.     21,200     2,482
  Itochu Techno-Solutions Corp.    101,603     2,379
  Oracle Corp. Japan     35,400     2,275
  Welcia Holdings Co. Ltd.    109,400     2,243
  SHO-BOND Holdings Co. Ltd.     51,384     2,160
  Goldwin Inc.     39,800     1,996
  Zenkoku Hosho Co. Ltd.     55,800     1,958
  EXEO Group Inc.    116,400     1,938
  Takara Holdings Inc.    211,400     1,781
  Sundrug Co. Ltd.     72,424     1,686
  Aica Kogyo Co. Ltd.     72,100     1,669
  Tokyo Century Corp.     51,500     1,586
  Yaoko Co. Ltd.     27,000     1,428
  NSD Co. Ltd.     78,000     1,385
  Fuyo General Lease Co. Ltd.     24,900     1,347
  Benefit One Inc.     81,500     1,236
  PALTAC Corp.     33,554     1,223
  Nichias Corp.     65,400     1,175
  TS Tech Co. Ltd.    111,600     1,165
  Fujitsu General Ltd.     63,200     1,123
  Japan Material Co. Ltd.     70,300     1,062
  Maruwa Co. Ltd.      8,800     1,026
  Shoei Co. Ltd.     27,200     1,009
  Mani Inc.     87,400       998
  Seria Co. Ltd.     48,700       952
  DTS Corp.     42,000       921
  TKC Corp.     34,800       914
  Tokyo Steel Manufacturing Co. Ltd.     85,900       889
  Kissei Pharmaceutical Co. Ltd.     44,400       879
  Mizuho Leasing Co. Ltd.     37,700       874
  Workman Co. Ltd.     25,100       857
  Raito Kogyo Co. Ltd.     55,200       824
  Kohnan Shoji Co. Ltd.     28,300       820
  Takara Bio Inc.     49,900       803
  Valor Holdings Co. Ltd.     49,812       785
  Nojima Corp.     39,000       784
  Funai Soken Holdings Inc.     45,700       766
  Information Services International-Dentsu Ltd.     26,100       750
  Riken Keiki Co. Ltd.     23,800       749
  Noevir Holdings Co. Ltd.     18,900       741
  JCU Corp.     28,200       718
  Takeuchi Manufacturing Co. Ltd.     39,000       715
  Future Corp.     48,647       713
  Hogy Medical Co. Ltd.     26,900       672
  Create SD Holdings Co. Ltd.     28,400       650
  Elecom Co. Ltd.     53,932       647
  eGuarantee Inc.     36,300       603
  Kameda Seika Co. Ltd.     18,500       602
  Sanyo Chemical Industries Ltd.     15,200       581
  Sekisui Jushi Corp.     42,200       577
  Eizo Corp.     21,200       553
  Tri Chemical Laboratories Inc.     28,800       541
    Shares Market
Value

($000)
  Okinawa Cellular Telephone Co.     13,400       516
  Aeon Delight Co. Ltd.     23,600       504
  Ai Holdings Corp.     38,170       501
  Keihanshin Building Co. Ltd.     47,700       496
  Intage Holdings Inc.     40,600       494
  Osaka Organic Chemical Industry Ltd.     22,500       485
  Yellow Hat Ltd.     38,200       477
  S Foods Inc.     19,900       463
  MCJ Co. Ltd.     69,000       451
  Shizuoka Gas Co. Ltd.     60,400       433
  Ricoh Leasing Co. Ltd.     15,500       406
  Mitsubishi Research Institute Inc.     13,200       397
  FULLCAST Holdings Co. Ltd.     19,800       379
  Fujicco Co. Ltd.     24,000       375
  Tsurumi Manufacturing Co. Ltd.     24,000       343
  Retail Partners Co. Ltd.     36,000       314
  Mimasu Semiconductor Industry Co. Ltd.     17,000       305
  Matsuda Sangyo Co. Ltd.     16,800       295
  Siix Corp.     38,200       292
  Sinko Industries Ltd.     23,000       289
  G-7 Holdings Inc.     22,600       284
  Elan Corp.     35,700       279
  G-Tekt Corp.     27,000       260
  Nippon Parking Development Co. Ltd.    211,500       250
  MarkLines Co. Ltd.     11,500       237
  Fukui Computer Holdings Inc.      9,200       230
  E-Guardian Inc.     10,200       230
  Cresco Ltd.     14,900       216
  Aoyama Zaisan Networks Co. Ltd.     22,000       207
  WDB Holdings Co. Ltd.      9,500       200
  Members Co. Ltd.      8,100       193
  Value HR Co. Ltd.     17,800       191
  Creek & River Co. Ltd.     11,400       184
  CTS Co. Ltd.     27,500       183
  Densan System Holdings Co. Ltd.      8,500       172
  Digital Hearts Holdings Co. Ltd.     12,500       163
  Japan Best Rescue System Co. Ltd.     18,500       145
  Furukawa Battery Co. Ltd.     14,900       138
  Aval Data Corp.      5,200       112
  Ad-sol Nissin Corp.      7,700        93
  ULS Group Inc.      2,800        85
        593,553
Mexico (0.7%)
  America Movil SAB de CV Series L 24,043,356    23,400
  Grupo Elektra SAB de CV     61,875     3,710
         27,110
Netherlands (0.7%)
  Wolters Kluwer NV    279,540    28,229
New Zealand (0.2%)
  Fisher & Paykel Healthcare Corp. Ltd.    614,142     8,440
 
6

 

International Dividend Appreciation Index Fund
    Shares Market
Value

($000)
Norway (0.2%)
  TOMRA Systems ASA    124,673     4,903
  Borregaard ASA    108,877     2,077
          6,980
South Korea (0.9%)
  NAVER Corp.    157,134    35,003
  LEENO Industrial Inc.      9,550     1,324
  AfreecaTV Co. Ltd.      8,409       721
  JW Pharmaceutical Corp.     13,889       336
  Interojo Co. Ltd.     10,728       274
  DI Dong Il Corp.     14,020       266
  Hanyang Eng Co. Ltd.     11,473       143
         38,067
Sweden (2.4%)
  Hexagon AB Class B  2,211,035    28,529
  Assa Abloy AB Class B  1,056,256    26,694
  Nibe Industrier AB Class B  1,500,174    14,708
  Swedish Match AB  1,683,798    13,411
  Castellum AB    303,826     6,017
  Fabege AB    289,108     3,509
  AAK AB    190,430     3,304
  Wihlborgs Fastigheter AB    142,147     2,465
  Atrium Ljungberg AB Class B     50,842       831
  Svolder AB    102,903       603
        100,071
Switzerland (17.1%)
  Novartis AG (Registered)  2,035,288   179,857
  Nestle SA (Registered)  1,336,182   172,493
  Roche Holding AG    429,312   159,195
  Sika AG (Registered)    163,083    49,815
  Givaudan SA (Registered)      8,458    33,616
  Partners Group Holding AG     24,168    25,606
  Geberit AG (Registered)     38,216    21,794
  Chocoladefabriken Lindt & Spruengli AG (Registered)        116    13,753
  Chocoladefabriken Lindt & Spruengli AG Ptg. Ctf.      1,136    12,740
  Logitech International SA (Registered)    184,344    11,997
  Temenos AG (Registered)     71,577     7,225
  EMS-Chemie Holding AG (Registered)      7,229     6,449
  DKSH Holding AG     38,270     3,286
  Interroll Holding AG (Registered)        767     2,325
  Roche Holding AG (Bearer)      4,890     1,964
  ALSO Holding AG (Registered)      6,729     1,522
  Orior AG      6,978       645
        704,282
Taiwan (0.5%)
  Chailease Holding Co. Ltd.  1,464,650    11,639
  Advantech Co. Ltd.    461,000     5,731
  ASPEED Technology Inc.     26,459     2,324
  Sinbon Electronics Co. Ltd.    208,000     1,827
         21,521
    Shares Market
Value

($000)
Thailand (0.0%)
  Siam Global House PCL    109,956        70
United Kingdom (7.9%)
  Diageo plc  2,480,463   123,747
  RELX plc  2,111,225    62,894
  Ashtead Group plc    478,196    24,726
  Croda International plc    151,824    14,746
  Bunzl plc    359,190    13,858
  Halma plc    404,260    12,409
  Spirax-Sarco Engineering plc     78,332    11,820
  Smurfit Kappa Group plc (XDUB)    276,022    11,664
  Sage Group plc  1,193,314    10,951
  DCC plc    107,904     8,176
  B&M European Value Retail SA    905,558     5,548
  Dechra Pharmaceuticals plc    115,434     5,231
  Diploma plc    133,136     4,566
  Spectris plc    123,250     4,508
  Ultra Electronics Holdings plc     75,799     3,087
  Cranswick plc     56,394     2,242
  Genus plc     70,126     2,203
  Sirius Real Estate Ltd.  1,250,955     1,902
  Clarkson plc     29,750     1,370
  Hilton Food Group plc     77,809     1,181
  Clipper Logistics plc     91,576       991
  Avon Protection plc     32,852       436
* Cazoo Group Ltd.     93,622       158
        328,414
Total Common Stocks (Cost $3,982,409) 4,110,137
Temporary Cash Investments (0.1%)
Money Market Fund (0.1%)
1 Vanguard Market Liquidity Fund, 0.409% (Cost $3,922)     39,225          3,922
Total Investments (99.6%) (Cost $3,986,331) 4,114,059
Other Assets and Liabilities—Net (0.4%) 15,621
Net Assets (100%) 4,129,680
Cost is in $000.
See Note A in Notes to Financial Statements.
* Non-income-producing security.
1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
  ADR—American Depositary Receipt.
  Ptg. Ctf.—Participating Certificates.
 
7

 

International Dividend Appreciation 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 S&P 500 Index June 2022 23 4,747 (288)
Euro Stoxx 50 Index June 2022 146 5,754 (48)
MSCI Emerging Markets Index June 2022 115 6,080 (214)
Topix Index June 2022 27 3,959 33
        (517)
    
Forward Currency Contracts
  Contract
Settlement
Date
Contract Amount (000) Unrealized
Appreciation
($000)
Unrealized
Depreciation
($000)
Counterparty Receive Deliver
Bank of America, N.A. 6/15/22 EUR 5,240 USD 5,719 (179)
Royal Bank of Canada 6/15/22 EUR 1,145 USD 1,273 (63)
BNP Paribas 6/15/22 INR 416,000 USD 5,370 46
State Street Bank & Trust Co. 6/15/22 JPY 98,050 USD 799 (43)
Bank of America, N.A. 6/15/22 JPY 60,474 USD 524 (57)
State Street Bank & Trust Co. 6/15/22 USD 6,283 CHF 5,748 359
Barclays Bank plc 6/15/22 USD 3,929 CHF 3,659 158
Bank of America, N.A. 6/15/22 USD 2,364 EUR 2,169 72
State Street Bank & Trust Co. 6/15/22 USD 1,324 GBP 1,000 66
BNP Paribas 6/15/22 USD 3,860 INR 300,000 (46)
State Street Bank & Trust Co. 6/15/22 USD 3,819 JPY 465,083 229
            930 (388)
CHF—Swiss franc.
EUR—euro.
GBP—British pound.
INR—Indian rupee.
JPY—Japanese yen.
USD—U.S. dollar.
At April 30, 2022, the counterparties had deposited in segregated accounts securities with a value of $580,000 in connection with open forward currency contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
8

 

International Dividend Appreciation Index Fund
Statement of Assets and Liabilities
As of April 30, 2022
($000s, except shares and per-share amounts) Amount
Assets  
Investments in Securities, at Value  
Unaffiliated Issuers (Cost $3,982,409) 4,110,137
Affiliated Issuers (Cost $3,922) 3,922
Total Investments in Securities 4,114,059
Investment in Vanguard 146
Cash Collateral Pledged—Futures Contracts 1,415
Cash Collateral Pledged—Forward Currency Contracts 10
Foreign Currency, at Value (Cost $2,405) 2,293
Receivables for Investment Securities Sold 2,043
Receivables for Accrued Income 17,378
Receivables for Capital Shares Issued 287
Variation Margin Receivable—Futures Contracts 22
Unrealized Appreciation—Forward Currency Contracts 930
Total Assets 4,138,583
Liabilities  
Due to Custodian 8
Payables for Investment Securities Purchased 3,633
Payables for Capital Shares Redeemed 220
Payables to Vanguard 261
Unrealized Depreciation—Forward Currency Contracts 388
Deferred Foreign Capital Gains Taxes 4,393
Total Liabilities 8,903
Net Assets 4,129,680
At April 30, 2022, net assets consisted of:  
   
Paid-in Capital 3,983,267
Total Distributable Earnings (Loss) 146,413
Net Assets 4,129,680
 
ETF Shares—Net Assets  
Applicable to 51,350,532 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
3,838,858
Net Asset Value Per Share—ETF Shares $74.76
 
Admiral Shares—Net Assets  
Applicable to 7,991,034 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
290,822
Net Asset Value Per Share—Admiral Shares $36.39
  
See accompanying Notes, which are an integral part of the Financial Statements.
9

 

International Dividend Appreciation Index Fund
Statement of Operations
  Six Months Ended
April 30, 2022
  ($000)
Investment Income  
Income  
Dividends1 37,630
Non-Cash Dividends 3,522
Interest2 5
Securities Lending—Net 34
Total Income 41,191
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 210
Management and Administrative—ETF Shares 2,494
Management and Administrative—Admiral Shares 206
Marketing and Distribution—ETF Shares 61
Marketing and Distribution—Admiral Shares 7
Custodian Fees 194
Shareholders’ Reports—ETF Shares 67
Shareholders’ Reports—Admiral Shares 7
Trustees’ Fees and Expenses 1
Other Expenses 14
Total Expenses 3,261
Net Investment Income 37,930
Realized Net Gain (Loss)  
Investment Securities Sold2,3 11,107
Futures Contracts (2,160)
Forward Currency Contracts (660)
Foreign Currencies (264)
Realized Net Gain (Loss) 8,023
Change in Unrealized Appreciation (Depreciation)  
Investment Securities2,4 (555,276)
Futures Contracts (559)
Forward Currency Contracts 868
Foreign Currencies (1,190)
Change in Unrealized Appreciation (Depreciation) (556,157)
Net Increase (Decrease) in Net Assets Resulting from Operations (510,204)
1 Dividends are net of foreign withholding taxes of $5,484,000.
2 Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $5,000, ($2,000), less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
3 Realized gain (loss) is net of foreign capital gain taxes of $2,006,000 .
4 The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($247,000).
  
See accompanying Notes, which are an integral part of the Financial Statements.
10

 

International Dividend Appreciation Index Fund
Statement of Changes in Net Assets
  Six Months Ended
April 30,
2022
  Year Ended
October 31,
2021
  ($000)   ($000)
Increase (Decrease) in Net Assets      
Operations      
Net Investment Income 37,930   48,504
Realized Net Gain (Loss) 8,023   459,247
Change in Unrealized Appreciation (Depreciation) (556,157)   351,103
Net Increase (Decrease) in Net Assets Resulting from Operations (510,204)   858,854
Distributions      
ETF Shares (264,741)   (39,771)
Admiral Shares (20,625)   (3,300)
Total Distributions (285,366)   (43,071)
Capital Share Transactions      
ETF Shares 427,199   943,215
Admiral Shares 24,833   38,209
Net Increase (Decrease) from Capital Share Transactions 452,032   981,424
Total Increase (Decrease) (343,538)   1,797,207
Net Assets      
Beginning of Period 4,473,218   2,676,011
End of Period 4,129,680   4,473,218
  
See accompanying Notes, which are an integral part of the Financial Statements.
11

 

International Dividend Appreciation Index Fund
Financial Highlights
ETF Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
April 30,
2022
Year Ended October 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $89.86 $69.97 $68.72 $58.65 $64.25 $54.43
Investment Operations            
Net Investment Income1 .716 1.094 .958 1.4522 1.196 1.179
Net Realized and Unrealized Gain (Loss) on Investments3 (10.185) 19.776 1.551 9.578 (5.623) 9.715
Total from Investment Operations (9.469) 20.870 2.509 11.030 (4.427) 10.894
Distributions            
Dividends from Net Investment Income (.449) (.980) (1.259) (.960) (1.173) (1.074)
Distributions from Realized Capital Gains (5.182)
Total Distributions (5.631) (.980) (1.259) (.960) (1.173) (1.074)
Net Asset Value, End of Period $74.76 $89.86 $69.97 $68.72 $58.65 $64.25
Total Return -11.11% 29.93% 3.73% 18.96% -7.04% 20.19%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $3,839 $4,150 $2,456 $1,305 $861 $634
Ratio of Total Expenses to Average Net Assets 0.15% 0.15% 0.20% 0.20% 0.25% 0.25%
Ratio of Net Investment Income to Average Net Assets 1.76% 1.28% 1.40% 2.24%2 1.83% 1.96%
Portfolio Turnover Rate4 18% 65% 17% 42% 36% 9%
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $.388 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3 Includes increases from purchase and redemption fees of $.00, $.00, $.01, $.02, $.02, and $.04.
4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
  
See accompanying Notes, which are an integral part of the Financial Statements.
12

 

International Dividend Appreciation Index Fund
Financial Highlights
Admiral Shares            
For a Share Outstanding
Throughout Each Period 
Six Months
Ended
April 30,
2022
Year Ended October 31,
2021 2020 2019 2018 2017
Net Asset Value, Beginning of Period $43.72 $34.03 $33.42 $28.52 $31.24 $26.45
Investment Operations            
Net Investment Income1 .343 .518 .453 .6862 .576 .573
Net Realized and Unrealized Gain (Loss) on Investments3 (4.936) 9.645 .765 4.679 (2.727) 4.720
Total from Investment Operations (4.593) 10.163 1.218 5.365 (2.151) 5.293
Distributions            
Dividends from Net Investment Income (.216) (.473) (.608) (.465) (.569) (.503)
Distributions from Realized Capital Gains (2.521)
Total Distributions (2.737) (.473) (.608) (.465) (.569) (.503)
Net Asset Value, End of Period $36.39 $43.72 $34.03 $33.42 $28.52 $31.24
Total Return4 -11.11% 29.96% 3.72% 18.96% -7.03% 20.18%
Ratios/Supplemental Data            
Net Assets, End of Period (Millions) $291 $323 $220 $218 $175 $152
Ratio of Total Expenses to Average Net Assets 0.16% 0.16% 0.20% 0.20% 0.25% 0.25%
Ratio of Net Investment Income to Average Net Assets 1.73% 1.25% 1.36% 2.24%2 1.83% 1.96%
Portfolio Turnover Rate5 18% 65% 17% 42% 36% 9%
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $.188 and 0.65%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019.
3 Includes increases from purchase and redemption fees of $.00, $.00, $.00, $.00, $.01, and $.02.
4 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
  
See accompanying Notes, which are an integral part of the Financial Statements.
13

 

International Dividend Appreciation Index Fund
Notes to Financial Statements
Vanguard International Dividend Appreciation Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: ETF Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on Nasdaq; they can be purchased and sold through a broker.
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. Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.
Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the
14

 

International Dividend Appreciation 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.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on futures contracts.
During the six months ended April 30, 2022, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses) on forward currency contracts.
During the six months ended April 30, 2022, the fund’s average investment in forward currency contracts represented 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
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International Dividend Appreciation Index Fund
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 $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow
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International Dividend Appreciation Index Fund
money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the six months ended April 30, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.
9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on capital share transactions are credited to paid-in capital.
Taxes on foreign dividends and capital gains have been provided for in accordance with the fund's understanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Such tax reclaims received and related professional fees incurred during the year, if any, are included in dividend income and other expenses, respectively. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At April 30, 2022, the fund had contributed to Vanguard capital in the amount of $146,000, representing less than 0.01% of the fund’s net assets and 0.06% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
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International Dividend Appreciation Index Fund
C. Various inputs may be used to determine the value of the fund’s investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of April 30, 2022, based on the inputs used to value them:
  Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
Investments        
Assets        
Common Stocks—North and South America 733,259 733,259
Common Stocks—Other 64,651 3,312,227 3,376,878
Temporary Cash Investments 3,922 3,922
Total 801,832 3,312,227 4,114,059
Derivative Financial Instruments        
Assets        
Futures Contracts1 33 33
Forward Currency Contracts 930 930
Total 33 930 963
Liabilities        
Futures Contracts1 550 550
Forward Currency Contracts 388 388
Total 550 388 938
1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
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International Dividend Appreciation Index Fund
D. At April 30, 2022, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
    
Statement of Assets and Liabilities Equity
Contracts
($000)
Foreign
Exchange
Contracts
($000)
Total
($000)
Unrealized Appreciation—Futures Contracts1 33 33
Unrealized Appreciation—Forward Currency Contracts 930 930
Total Assets 33 930 963
       
Unrealized Depreciation—Futures Contracts1 550 550
Unrealized Depreciation—Forward Currency Contracts 388 388
Total Liabilities 550 388 938
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, 2022, were:
Realized Net Gain (Loss) on Derivatives Equity
Contracts
($000)
Foreign
Exchange
Contracts
($000)
Total
($000)
Futures Contracts (2,160) (2,160)
Forward Currency Contracts (660) (660)
Realized Net Gain (Loss) on Derivatives (2,160) (660) (2,820)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts (559) (559)
Forward Currency Contracts 868 868
Change in Unrealized Appreciation (Depreciation) on Derivatives (559) 868 309
E. As of April 30, 2022, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
  Amount
($000)
Tax Cost 3,996,264
Gross Unrealized Appreciation 391,732
Gross Unrealized Depreciation (273,912)
Net Unrealized Appreciation (Depreciation) 117,820
F. During the six months ended April 30, 2022, the fund purchased $1,148,054,000 of investment securities and sold $941,514,000 of investment securities, other than temporary cash investments. Purchases and sales include $365,035,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.
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International Dividend Appreciation Index Fund
G. Capital share transactions for each class of shares were:
    
  Six Months Ended
April 30, 2022
  Year Ended
October 31, 2021
  Amount
($000)
Shares
(000)
  Amount
($000)
Shares
(000)
ETF Shares          
Issued1 427,199 5,168   1,155,426 13,632
Issued in Lieu of Cash Distributions  
Redeemed2   (212,211) (2,550)
Net Increase (Decrease)—ETF Shares 427,199 5,168   943,215 11,082
Admiral Shares          
Issued1 31,128 770   69,649 1,698
Issued in Lieu of Cash Distributions 17,638 437   2,725 66
Redeemed2 (23,933) (608)   (34,165) (833)
Net Increase (Decrease)—Admiral Shares 24,833 599   38,209 931
1 Includes purchase fees for fiscal 2022 and 2021 of $78,000 and $175,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2022 and 2021 of $60,000 and $80,000, respectively (fund totals).
H. Management has determined that no events or transactions occurred subsequent to April 30, 2022, that would require recognition or disclosure in these financial statements.
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International High Dividend Yield Index Fund
Fund Allocation
As of April 30, 2022
United Kingdom 13.3%
Japan 12.4
Canada 8.8
Australia 8.4
Switzerland 6.9
Germany 6.1
France 5.8
China 5.8
Taiwan 4.9
Brazil 2.9
Hong Kong 2.1
Italy 1.9
Saudi Arabia 1.7
Sweden 1.6
Spain 1.6
South Korea 1.5
Singapore 1.4
Finland 1.4
South Africa 1.3
Netherlands 1.2
Norway 1.0
Other 8.0
The table reflects the fund’s investments, except for short-term investments and derivatives.
The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.
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International High Dividend Yield Index Fund
Financial Statements (unaudited)
Schedule of Investments
As of April 30, 2022
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value

($000)
Common Stocks (99.3%)
Australia (8.3%)
  BHP Group Ltd.  1,864,842    62,315
  Commonwealth Bank of Australia    633,550    46,049
  National Australia Bank Ltd.  1,201,252    27,423
  Westpac Banking Corp.  1,298,559    21,738
  Australia & New Zealand Banking Group Ltd.  1,042,755    19,843
  Macquarie Group Ltd.    128,744    18,534
  Wesfarmers Ltd.    419,687    14,522
  Transurban Group (XASX)  1,135,417    11,401
  Rio Tinto Ltd.    137,127    10,847
  Fortescue Metals Group Ltd.    588,702     8,897
  Woodside Petroleum Ltd.    358,388     7,797
  Amcor plc GDR    576,739     6,838
  Coles Group Ltd.    471,219     6,196
  South32 Ltd.  1,746,274     5,816
  QBE Insurance Group Ltd.    553,146     4,772
  Sonic Healthcare Ltd.    180,162     4,653
  ASX Ltd.     73,224     4,427
  Telstra Corp. Ltd.  1,551,919     4,405
  Brambles Ltd.    521,992     3,855
  Suncorp Group Ltd.    473,066     3,798
  APA Group    426,689     3,429
  Computershare Ltd. (XASX)    194,182     3,423
  Origin Energy Ltd.    631,849     3,022
  Insurance Australia Group Ltd.    918,612     2,933
  Tabcorp Holdings Ltd.    766,425     2,931
  Endeavour Group Ltd.    456,563     2,499
  Lendlease Corp. Ltd.    265,236     2,272
  Medibank Pvt Ltd.  1,011,052     2,272
  Ampol Ltd.     86,221     2,027
  Incitec Pivot Ltd.    751,060     2,026
  Aurizon Holdings Ltd.    645,652     1,823
  Atlas Arteria Ltd.    360,180     1,750
  Orica Ltd.    144,692     1,663
  JB Hi-Fi Ltd.     44,903     1,663
  AGL Energy Ltd.    238,774     1,452
  Bendigo & Adelaide Bank Ltd.    194,649     1,451
  carsales.com Ltd.     97,328     1,437
    Shares Market
Value

($000)
  Bank of Queensland Ltd.    231,296     1,312
  Worley Ltd.    133,856     1,302
  Metcash Ltd.    387,524     1,301
  Challenger Ltd.    248,065     1,255
  Iluka Resources Ltd.    157,134     1,231
  Alumina Ltd.    932,704     1,174
  Whitehaven Coal Ltd.    335,664     1,153
  Downer EDI Ltd.    259,614     1,004
  Orora Ltd.    316,237       886