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.

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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

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International Dividend Appreciation Index Fund

5

International Dividend Appreciation Index Fund

6

International Dividend Appreciation Index Fund

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.

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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.

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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.

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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.

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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.

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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.

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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

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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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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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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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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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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
	Ansell Ltd.	44,648	855
	Harvey Norman Holdings Ltd.	223,920	798
	CSR Ltd.	185,119	793
	Deterra Royalties Ltd.	177,264	601
	Magellan Financial Group Ltd.	49,422	559
	Insignia Financial Ltd.	215,925	519
	Perpetual Ltd.	19,823	456
	Adbri Ltd.	168,235	343
	Platinum Asset Management Ltd.	207,843	272
	Woolworths Group Ltd.	2,660	72
	James Hardie Industries plc GDR	992	29
	Sims Ltd.	376	5
			348,119
Austria (0.2%)
	Erste Group Bank AG	117,402	3,655
	OMV AG	50,989	2,606
	ANDRITZ AG	27,300	1,161
	voestalpine AG	40,593	1,056
	Raiffeisen Bank International AG	48,865	556
	Telekom Austria AG Class A	44,111	315
			9,349
Belgium (0.4%)
	KBC Group NV	102,098	6,946
	Groupe Bruxelles Lambert SA	36,641	3,458
	Ageas SA	66,774	3,195
	Solvay SA	25,168	2,367
	Proximus SADP	53,054	927
	Etablissements Franz Colruyt NV	21,345	784
	Telenet Group Holding NV	16,756	499
			18,176

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International High Dividend Yield Index Fund

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