Contents

About Your Fund's Expenses	1
Financial Statements	4
Trustees Approve Advisory Arrangement	22
Liquidity Risk Management	24

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
High Dividend Yield Index Fund
ETF Shares	$1,000.00	$1,006.40	$0.30
Admiral™ Shares	1,000.00	1,006.40	0.40
Based on Hypothetical 5% Yearly Return
High Dividend Yield Index Fund
ETF Shares	$1,000.00	$1,024.50	$0.30
Admiral Shares	1,000.00	1,024.40	0.40

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.06% for ETF Shares and 0.08% 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).

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High Dividend Yield Index Fund

Fund Allocation

As of April 30, 2022

Basic Materials	4.3%
Consumer Discretionary	9.0
Consumer Staples	13.4
Energy	9.1
Financials	19.6
Health Care	14.4
Industrials	10.1
Real Estate	0.0
Technology	6.9
Telecommunications	5.2
Utilities	8.0

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

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

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

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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 (99.9%)
Basic Materials (4.3%)
	Linde plc				2,026,709	632,252
	Newmont Corp.				3,139,286	228,697
	Air Products and Chemicals Inc.				866,841	202,901
	Dow Inc.				2,893,372	192,409
	Nucor Corp.				1,065,335	164,893
	Fastenal Co.				2,257,157	124,843
	International Flavors & Fragrances Inc.				998,458	121,113
	LyondellBasell Industries NV Class A				1,017,888	107,927
	CF Industries Holdings Inc.				838,186	81,162
	International Paper Co.				1,519,920	70,342
	Steel Dynamics Inc.				741,079	63,548
	Celanese Corp.				428,322	62,938
	Eastman Chemical Co.				527,035	54,111
	Reliance Steel & Aluminum Co.				245,729	48,716
	Olin Corp.				551,805	31,674
	Huntsman Corp.				807,513	27,350
	Chemours Co.				619,828	20,498
	Southern Copper Corp.				327,853	20,415
	Commercial Metals Co.				464,572	19,047
	Avient Corp.				352,410	17,353
	Scotts Miracle-Gro Co.				159,954	16,624
	Timken Co.				250,073	14,414
	Cabot Corp.				216,288	14,243
	Sensient Technologies Corp.				163,760	13,854
	Tronox Holdings plc Class A				443,749	7,632
	Trinseo plc				150,038	7,119
	Carpenter Technology Corp.				184,345	7,038
	Worthington Industries Inc.				140,972	6,706

					Shares	Market Value• ($000)
	Kaiser Aluminum Corp.				61,155	5,901
	Schweitzer-Mauduit International Inc.				124,145	3,124
						2,388,844
Consumer Discretionary (9.0%)
	Home Depot Inc.				4,099,372	1,231,451
	Walmart Inc.				5,549,938	849,085
	McDonald's Corp.				2,931,429	730,395
	Target Corp.				1,877,075	429,193
	Starbucks Corp.				4,517,787	337,208
	Ford Motor Co.				15,373,097	217,683
	Best Buy Co. Inc.				942,768	84,783
	Genuine Parts Co.				554,861	72,160
	Paramount Global Class B				2,288,015	66,627
	Darden Restaurants Inc.				504,916	66,513
	VF Corp.				1,272,192	66,154
	Garmin Ltd.				595,034	65,299
	Omnicom Group Inc.				814,291	61,992
	Interpublic Group of Cos. Inc.				1,544,533	50,383
	Advance Auto Parts Inc.				245,508	49,011
	Hasbro Inc.				498,249	43,876
	Whirlpool Corp.				226,847	41,177
	Nielsen Holdings plc				1,392,677	37,338
	Williams-Sonoma Inc.				282,881	36,910
	Tapestry Inc.				1,043,600	34,355
	Newell Brands Inc.				1,481,636	34,300
	Kohl's Corp.				548,984	31,775
	Macy's Inc.				1,163,013	28,110
	Autoliv Inc.				347,453	25,600
	Polaris Inc.				222,270	21,102
1	Sirius XM Holdings Inc.				3,378,076	20,269
	TEGNA Inc.				854,745	18,847
	Leggett & Platt Inc.				517,705	18,446
	Ralph Lauren Corp.				176,406	18,406
	Travel + Leisure Co.				330,204	18,320
	Hanesbrands Inc.				1,351,645	17,923
	H&R Block Inc.				641,708	16,729
	Wendy's Co.				691,756	13,669
	Penske Automotive Group Inc.				120,130	12,592

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High Dividend Yield Index Fund

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High Dividend Yield Index Fund

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High Dividend Yield Index Fund

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High Dividend Yield Index Fund

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High Dividend Yield Index Fund

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High Dividend Yield 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	235	48,498	(2,740)

    

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)1 (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Phillips 66	8/31/22	BANA	40,085	(0.322)	163	—

1	Based on USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
	BANA—Bank of America, N.A.

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

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High Dividend Yield Index Fund

Statement of Assets and Liabilities

As of April 30, 2022

($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value1
Unaffiliated Issuers (Cost $44,630,695)	55,676,931
Affiliated Issuers (Cost $69,749)	69,749
Total Investments in Securities	55,746,680
Investment in Vanguard	1,930
Cash Collateral Pledged—Futures Contracts	2,640
Receivables for Investment Securities Sold	81
Receivables for Accrued Income	80,548
Receivables for Capital Shares Issued	10,182
Unrealized Appreciation—Over-the-Counter Swap Contracts	163
Total Assets	55,842,224
Liabilities
Due to Custodian	3,634
Payables for Investment Securities Purchased	32,781
Collateral for Securities on Loan	27,723
Payables for Capital Shares Redeemed	6,298
Payables to Vanguard	1,522
Variation Margin Payable—Futures Contracts	1,833
Total Liabilities	73,791
Net Assets	55,768,433
1 Includes $24,573 of securities on loan.
At April 30, 2022, net assets consisted of:
Paid-in Capital	46,619,280
Total Distributable Earnings (Loss)	9,149,153
Net Assets	55,768,433
ETF Shares—Net Assets
Applicable to 407,013,405 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	43,769,408
Net Asset Value Per Share—ETF Shares	$107.54
Admiral Shares—Net Assets
Applicable to 370,037,127 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	11,999,025
Net Asset Value Per Share—Admiral Shares	$32.43

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

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High Dividend Yield Index Fund

Statement of Operations

	Six Months Ended April 30, 2022
	($000)
Investment Income
Income
Dividends	798,831
Interest 1	57
Securities Lending—Net	240
Total Income	799,128
Expenses
The Vanguard Group—Note B
Investment Advisory Services	763
Management and Administrative—ETF Shares	11,158
Management and Administrative—Admiral Shares	4,191
Marketing and Distribution—ETF Shares	487
Marketing and Distribution—Admiral Shares	281
Custodian Fees	186
Shareholders’ Reports—ETF Shares	359
Shareholders’ Reports—Admiral Shares	77
Trustees’ Fees and Expenses	14
Other Expenses	8
Total Expenses	17,524
Net Investment Income	781,604
Realized Net Gain (Loss)
Investment Securities Sold1,2	383,925
Futures Contracts	5,048
Swap Contracts	(7,438)
Realized Net Gain (Loss)	381,535
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	(930,245)
Futures Contracts	(6,446)
Swap Contracts	(3,455)
Change in Unrealized Appreciation (Depreciation)	(940,146)
Net Increase (Decrease) in Net Assets Resulting from Operations	222,993

1	Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $57,000, ($14,000), $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes.
2	Includes $750,178,000 of net gain (loss) resulting from in-kind redemptions.

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

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High Dividend Yield 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	781,604		1,357,112
Realized Net Gain (Loss)	381,535		1,205,834
Change in Unrealized Appreciation (Depreciation)	(940,146)		11,496,343
Net Increase (Decrease) in Net Assets Resulting from Operations	222,993		14,059,289
Distributions
ETF Shares	(617,533)		(1,045,675)
Admiral Shares	(171,001)		(295,106)
Total Distributions	(788,534)		(1,340,781)
Capital Share Transactions
ETF Shares	4,450,324		3,606,248
Admiral Shares	699,036		916,264
Net Increase (Decrease) from Capital Share Transactions	5,149,360		4,522,512
Total Increase (Decrease)	4,583,819		17,241,020
Net Assets
Beginning of Period	51,184,614		33,943,594
End of Period	55,768,433		51,184,614

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

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High Dividend Yield 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	$108.42	$79.49	$89.60	$83.26	$82.46	$71.19
Investment Operations
Net Investment Income1	1.583	3.010	2.950	2.891	2.623	2.394
Net Realized and Unrealized Gain (Loss) on Investments	(.862)	28.887	(10.184)	6.251	.731	11.301
Total from Investment Operations	.721	31.897	(7.234)	9.142	3.354	13.695
Distributions
Dividends from Net Investment Income	(1.601)	(2.967)	(2.876)	(2.802)	(2.554)	(2.425)
Distributions from Realized Capital Gains	—	—	—	—	—	—
Total Distributions	(1.601)	(2.967)	(2.876)	(2.802)	(2.554)	(2.425)
Net Asset Value, End of Period	$107.54	$108.42	$79.49	$89.60	$83.26	$82.46
Total Return	0.64%	40.55%	-8.17%	11.31%	4.05%	19.46%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$43,769	$39,766	$26,279	$26,816	$21,328	$20,010
Ratio of Total Expenses to Average Net Assets	0.06%	0.06%	0.06%	0.06%	0.06%	0.08%
Ratio of Net Investment Income to Average Net Assets	2.84%	2.99%	3.53%	3.38%	3.08%	3.07%
Portfolio Turnover Rate2	9%	8%	11%	7%	13%	9%
The expense ratio and net investment income ratio for the current period have been annualized.

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

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

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High Dividend Yield Index Fund

Financial Highlights

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended April 30, 2022	Year Ended October 31,		February 7, 20191 to October 31, 2019
		2021	2020
Net Asset Value, Beginning of Period	$32.69	$23.97	$27.02	$25.00
Investment Operations
Net Investment Income2	.475	.902	.887	.624
Net Realized and Unrealized Gain (Loss) on Investments	(.256)	8.707	(3.075)	2.010
Total from Investment Operations	.219	9.609	(2.188)	2.634
Distributions
Dividends from Net Investment Income	(.479)	(.889)	(.862)	(.614)
Distributions from Realized Capital Gains	—	—	—	—
Total Distributions	(.479)	(.889)	(.862)	(.614)
Net Asset Value, End of Period	$32.43	$32.69	$23.97	$27.02
Total Return3	0.64%	40.50%	-8.19%	10.64%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$11,999	$11,418	$7,665	$8,814
Ratio of Total Expenses to Average Net Assets	0.08%	0.08%	0.08%	0.08% 4
Ratio of Net Investment Income to Average Net Assets	2.82%	2.97%	3.52%	3.24% 4
Portfolio Turnover Rate5	9%	8%	11%	7% 6
The expense ratio and net investment income ratio for the current period have been annualized.

1	Inception.
2	Calculated based on average shares outstanding.
3	Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
4	Annualized.
5	Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
6	Reflects the fund’s portfolio turnover for the fiscal year ended October 31, 2019.

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

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High Dividend Yield Index Fund

Notes to Financial Statements

Vanguard High Dividend Yield 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 NYSE Arca; they can be purchased and sold through a broker.

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.

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

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any securities pledged as initial margin for open contracts are noted in the Schedule of Investments.

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.

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High Dividend Yield Index Fund

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

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

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

During the six months ended April 30, 2022, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

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

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High Dividend Yield Index Fund

5. 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.

6. 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.

7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.4 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund’s investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day’s notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.

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High Dividend Yield Index Fund

For the six months ended April 30, 2022, the fund did not utilize the credit facilities or the Interfund Lending Program.

8. 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.

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 $1,930,000, representing less than 0.01% of the fund’s net assets and 0.77% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

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	55,676,931	—	—	55,676,931
Temporary Cash Investments	69,749	—	—	69,749
Total	55,746,680	—	—	55,746,680

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High Dividend Yield Index Fund

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Derivative Financial Instruments
Assets
Swap Contracts	—	163	—	163
Liabilities
Futures Contracts1	2,740	—	—	2,740

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

D.  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	44,790,654
Gross Unrealized Appreciation	12,775,414
Gross Unrealized Depreciation	(1,821,965)
Net Unrealized Appreciation (Depreciation)	10,953,449

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at October 31, 2021, the fund had available capital losses totaling $2,366,038,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending October 31, 2022; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E.  During the six months ended April 30, 2022, the fund purchased $12,004,119,000 of investment securities and sold $6,311,558,000 of investment securities, other than temporary cash investments. Purchases and sales include $5,790,339,000 and $1,715,499,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended April 30, 2022, such purchases were $535,713,000 and sales were $657,843,000, resulting in net realized loss of $99,306,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

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High Dividend Yield Index Fund

F.  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
Issued	6,183,270	55,720		7,291,624	73,333
Issued in Lieu of Cash Distributions	—	—		—	—
Redeemed	(1,732,946)	(15,475)		(3,685,376)	(37,150)
Net Increase (Decrease)—ETF Shares	4,450,324	40,245		3,606,248	36,183
Admiral Shares
Issued	1,403,912	41,852		2,290,496	75,589
Issued in Lieu of Cash Distributions	132,066	3,980		229,798	7,717
Redeemed	(836,942)	(25,048)		(1,604,030)	(53,826)
Net Increase (Decrease)—Admiral Shares	699,036	20,784		916,264	29,480

G.  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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Trustees Approve Advisory Arrangement

The board of trustees of Vanguard High Dividend Yield Index Fund has renewed the ‎fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), ‎through its Equity Index Group. The board determined that continuing the fund’s ‎internalized management structure was in the best interests of the fund and its ‎shareholders.‎

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

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

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

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

Nature, extent, and quality of services ‎

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

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

Investment performance ‎

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

Cost ‎

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

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

The benefit of economies of scale

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

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

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Liquidity Risk Management

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

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

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

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

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

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

© 2022 The Vanguard Group, Inc.
All rights reserved.
U.S. Patent No. 6,879,964.
Vanguard Marketing Corporation, Distributor.

Q6232 062022