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Vanguard Global ex-U.S. Real Estate
Index Fund
Annual Report | October 31, 2018
Contents
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promisesor advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of thisreport. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
Vanguard’s Principles for Investing Success
We want to give you the best chance of investment success. Theseprinciples, grounded in Vanguard’s research and experience, can put you onthe right path.
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds.
Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.
A single theme unites these principles: Focus on the things you can control.We believe there is no wiser course for any investor.
Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1
CEO’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Your Fund’s After-Tax Returns. . . . . . . . . . . . . . . . . . . . . . . 40
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 41
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
1
• Vanguard Global ex-U.S. Real Estate Index Fund returned –6.61% for Investor Shares
for the 12 months ended October 31, 2018, closely tracking its benchmark.
• Returns were negative in all three of the largest global real estate sectors—the Pacific
region, Europe, and emerging markets. The S&P Global ex-U.S. Property Index returned
–6.79% for the period. The FTSE All-World ex US Index, which includes large- and mid-
capitalization stocks in emerging and developed markets outside the United States,
returned –7.99%.
• China was the largest detractor in emerging markets while Hong Kong subtracted
most from the Pacific region. Germany and Sweden were among the few European
markets turning in a positive performance.
• Please note that shortly after the close of the period, Vanguard lowered the
investment minimum for your fund’s Admiral Shares from $10,000 to $3,000.
Your Fund’s Performance at a Glance
1
Total Returns: Fiscal Year Ended October 31, 2018
TotalReturns
Vanguard Global ex-U.S. Real Estate Index Fund
Investor Shares -6.61%
ETF Shares
Market Price -6.78
Net Asset Value -6.42
Admiral™ Shares -6.43
Institutional Shares -6.42
S&P Global ex-U.S. Property Index -6.79
International Real Estate Funds Average -3.07
International Real Estate Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. TheVanguard ETF® Shares shown are traded on the Nasdaq exchange and are available only through brokers. The table provides ETF returnsbased on both the Nasdaq market price and the net asset value for a share. U.S. Pat. Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573;8,090,646; and 8,417,623.
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York StockExchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information abouthow the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select thePrice and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' marketprice was above or below the NAV.
2
Total Returns: Inception Through October 31, 2018
Average
Annual Return
Global ex-U.S. Real Estate Index Fund Investor Shares (Returns since inception: 11/1/2010) 4.51%
S&P Global ex-U.S. Property Index 4.31
International Real Estate Funds Average 4.02
International Real Estate Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
The figures shown represent past performance, which is not a guarantee of future results. (Currentperformance may be lower or higher than the performance data cited. For performance data current to themost recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investmentreturns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth moreor less than their original cost.
Expense RatiosYour Fund Compared With Its Peer Group
Investor
Shares
ETF
Shares
Admiral
Shares
Institutional
Shares
Peer Group
Average
Global ex-U.S. Real Estate Index Fund 0.34% 0.14% 0.14% 0.12% 1.36%
The fund expense ratios shown are from the prospectus dated February 23, 2018, and represent estimated costs for the current fiscal year.For the fiscal year ended October 31, 2018, the fund’s expense ratios were 0.31% for Investor Shares, 0.12% for ETF Shares, 0.12%for Admiral Shares, and 0.11% for Institutional Shares. The peer-group expense ratio is derived from data provided by Lipper, a ThomsonReuters Company, and captures information through year-end 2017.
Peer group: International Real Estate Funds.
Dear Shareholder,
Over the years, I’ve found that prudent
investors exhibit a common trait:
discipline. No matter how the markets
move or what new investing fad hits the
headlines, those who stay focused on
their goals and tune out the noise are
set up for long-term success.
The prime gateway to investing is saving,
and you don’t usually become a saver
without a healthy dose of discipline.
Savers make the decision to sock away
part of their income, which means
spending less and delaying gratification,
no matter how difficult that may be.
Of course, disciplined investing extends
beyond diligent saving. The financial
markets, in the short term especially,
are unpredictable; I have yet to meet the
investor who can time them perfectly.
It takes discipline to resist the urge to
go all-in when markets are frothy or to
retreat when things look bleak.
Staying put with your investments is one
strategy for handling volatility. Another,
rebalancing, requires even more discipline
because it means steering your money
away from strong performers and toward
poorer performers.
Patience—a form of discipline—is also
the friend of long-term investors. Higher
returns are the potential reward for
weathering the market’s turbulence
and uncertainty.
CEO’s Perspective
Tim BuckleyPresident and Chief Executive Officer
3
We have been enjoying one of the longest
bull markets in history, but it won’t continue
forever. Prepare yourself now for how
you will react when volatility comes back.
Don’t panic. Don’t chase returns or look
for answers outside the asset classes you
trust. And be sure to rebalance periodically,
even when there’s turmoil.
Whether you’re a master of self-control,
get a boost from technology, or work with
a professional advisor, know that discipline
is necessary to get the most out of your
investment portfolio. And know that
Vanguard is with you for the entire ride.
Thank you for your continued loyalty.
Sincerely,
Mortimer J. Buckley
President and Chief Executive Officer
November 16, 2018
Market Barometer Average Annual Total Returns
Periods Ended October 31, 2018
One Year Three Years Five Years
Stocks
Russell 1000 Index (Large-caps) 6.98% 11.31% 11.05%
Russell 2000 Index (Small-caps) 1.85 10.68 8.01
Russell 3000 Index (Broad U.S. market) 6.60 11.27 10.81
FTSE All-World ex US Index (International) -7.99 4.57 2.01
Bonds
Bloomberg Barclays U.S. Aggregate Bond Index
(Broad taxable market) -2.05% 1.04% 1.83%
Bloomberg Barclays Municipal Bond Index
(Broad tax-exempt market) -0.51 1.90 3.25
FTSE Three-Month U.S. Treasury Bill Index 1.67 0.86 0.52
CPI
Consumer Price Index 2.52% 2.07% 1.60%
4
Global ex-U.S. Real Estate Index Fund
Fund ProfileAs of October 31, 2018
1 The expense ratios shown are from the prospectus dated February 23, 2018, and represent estimated costs for the current fiscal year.For the fiscal year ended October 31, 2018, the expense ratios were 0.31% for Investor Shares, 0.12% for ETF Shares, 0.12% for AdmiralShares, and 0.11% for Institutional Shares.
5
Share-Class Characteristics
Investor
Shares ETF Shares
Admiral
Shares
Institutional
Shares
Ticker Symbol VGXRX VNQI VGRLX VGRNX
Expense Ratio1 0.34% 0.14% 0.14% 0.12%
Portfolio Characteristics
Fund
S&P
Global
ex-U.S.
Property
Index
Number of Stocks 635 567
Median Market Cap $5.9B $5.9B
Price/Earnings Ratio 8.0x 8.0x
Price/Book Ratio 0.9x 1.0x
Return on Equity 10.7% 10.8%
Earnings Growth Rate 13.3% 13.4%
Dividend Yield 4.0% 4.0%
Turnover Rate 7% —
Short-Term Reserves -0.6% —
Allocation by Region (% of equity exposure)
49.6% Pacific
26.9% Europe
19.9% EmergingMarkets
2.5% North America
0.9% Middle East
0.2% Other
Volatility Measures
S&P
Global
ex-U.S.
Property
Index
MSCI AC
World
Index
ex USA
R-Squared 0.99 0.78
Beta 0.97 0.89
These measures show the degree and timing of the fund’sfluctuations compared with the indexes over 36 months.
Ten Largest Holdings (% of total net assets)
Unibail-Rodamco-
Westfield Retail REITs 2.6%
Vonovia SE Real Estate
Operating
Companies 2.4
Mitsui Fudosan Co. Ltd. Diversified Real
Estate Activities 2.3
Mitsubishi Estate Co.
Ltd.
Diversified Real
Estate Activities 2.3
Daiwa House Industry
Co. Ltd.
Diversified Real
Estate Activities 2.1
Sun Hung Kai Properties
Ltd.
Diversified Real
Estate Activities 2.0
Link REIT Retail REITs 1.9
CK Asset Holdings Ltd. Real Estate
Development 1.8
Sumitomo Realty &
Development Co. Ltd.
Diversified Real
Estate Activities 1.7
Deutsche Wohnen SE Real Estate
Operating
Companies 1.7
Top Ten 20.8%
The holdings listed exclude any temporary cash investments andequity index products.
Global ex-U.S. Real Estate Index Fund
6
Market Diversification (% of equity exposure)
Fund
S&PGlobal
ex-U.S.Property
Index
Europe
Germany 7.0% 7.1%
United Kingdom 7.0 7.1
France 5.5 5.5
Sweden 2.2 2.2
Switzerland 1.5 1.5
Spain 1.0 1.0
Other 2.7 2.7
Subtotal 26.9% 27.1%
Pacific
Japan 23.1% 23.2%
Hong Kong 12.1 12.1
Australia 8.5 8.6
Singapore 5.4 5.4
Other 0.5 0.5
Subtotal 49.6% 49.8%
Emerging Markets
China 9.1% 9.0%
South Africa 2.3 2.3
Philippines 1.5 1.5
Thailand 1.5 1.5
United Arab Emirates 1.0 1.0
Other 4.5 4.3
Subtotal 19.9% 19.6%
North America
Canada 2.5% 2.5%
Middle East 0.9% 0.9%
Other 0.2% 0.1%
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay
on fund distributions or on the sale of fund shares.
Global ex-U.S. Real Estate Index Fund
Performance Summary
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares. TheFiscal-Year Total Returns chart is not adjusted for fees.See Financial Highlights for dividend and capital gains information.
7
Cumulative Performance: November 1, 2010, Through October 31, 2018Initial Investment of $10,000
20182017201620152014201320122011
$19,000
6,000
14,168
Average Annual Total Returns
Periods Ended October 31, 2018
OneYear
FiveYears
SinceInception
(11/1/2010)
Final Valueof a $10,000Investment
Global ex-U.S. Real Estate Index FundInvestor Shares -7.07% 2.16% 4.45% $14,168
• • • • • • • • S&P Global ex-U.S. Property Index -6.79 1.96 4.31 14,012
– – – – International Real Estate Funds Average -3.07 2.12 4.02 13,705
________ MSCI All Country World Index ex USA -7.80 2.10 3.50 13,165
International Real Estate Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
"Since Inception" performance is calculated from the Investor Shares’ inception date for both the fund and its comparative standards.
OneYear
FiveYears
SinceInception
(11/1/2010)
Final Valueof a $10,000Investment
Global ex-U.S. Real Estate Index FundETFShares Net Asset Value -6.42% 2.43% 4.67% $14,405
S&P Global ex-U.S. Property Index -6.79 1.96 4.31 14,012
MSCI All Country World Index ex USA -7.80 2.10 3.50 13,165
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares. TheFiscal-Year Total Returns chart is not adjusted for fees.
Global ex-U.S. Real Estate Index Fund
8
Average Annual Total Returns
Periods Ended October 31, 2018
OneYear
FiveYears
SinceInception
(2/10/2011)
Final Valueof a $10,000Investment
Global ex-U.S. Real Estate Index FundAdmiral Shares -6.89% 2.34% 4.85% $14,412
S&P Global ex-U.S. Property Index -6.79 1.96 4.56 14,107
MSCI All Country World Index ex USA -7.80 2.10 3.21 12,760
"Since Inception" performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standards.
OneYear
FiveYears
SinceInception
(4/19/2011)
Final Valueof a $5,000,000
InvestmentGlobal ex-U.S. Real Estate Index FundInstitutional Shares -6.88% 2.36% 4.66% $7,048,560
S&P Global ex-U.S. Property Index -6.79 1.96 4.39 6,908,855
MSCI All Country World Index ex USA -7.80 2.10 2.87 6,187,060
"Since Inception" performance is calculated from the Institutional Shares’ inception date for both the fund and its comparative standards.
Cumulative Returns of ETF Shares: November 1, 2010, Through October 31, 2018
OneYear
FiveYears
SinceInception
(11/1/2010)
Global ex-U.S. Real Estate Index Fund ETF SharesMarket Price -6.78% 12.26% 43.18%
Global ex-U.S. Real Estate Index Fund ETF SharesNet Asset Value -6.42 12.76 44.05
S&P Global ex-U.S. Property Index -6.79 10.20 40.12
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions. The fees do not apply to the ETF Shares. TheFiscal-Year Total Returns chart is not adjusted for fees.
Global ex-U.S. Real Estate Index Fund
9
Fiscal-Year Total Returns (%): November 1, 2010, Through October 31, 2018
–8.49 –7.48
2011
21.3119.71
2012
14.69 14.79
2013
2.41 1.31
2014
–1.82 –1.10
2015
2.72 2.08
2016
15.88 15.58
2017
–6.61 –6.79
2018
Global ex-U.S. Real Estate Index Fund Investor Shares
S&P Global ex-U.S. Property Index
Average Annual Total Returns: Periods Ended September 30, 2018This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.Securities and Exchange Commission rules require that we provide this information.
InceptionDate
OneYear
FiveYears
SinceInception
Investor Shares 11/1/2010 -0.51% 3.89% 5.34%
Fee-Adjusted Returns -0.99 3.80 5.28
ETF Shares 11/1/2010
Market Price -0.64 4.00 5.44
Net Asset Value -0.33 4.06 5.50
Admiral Shares 2/10/2011 -0.33 4.07 5.77
Fee-Adjusted Returns -0.82 3.98 5.71
Institutional Shares 4/19/2011 -0.32 4.09 5.61
Fee-Adjusted Returns -0.81 4.00 5.54
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Common Stocks (98.9%)1
Australia (8.4%)
Scentre Group 32,268,408 90,909
Goodman Group 9,687,000 71,194
LendLease Group 3,529,950 44,084
Dexus 6,099,700 44,072
GPT Group 10,841,905 39,651
Stockland 14,711,671 37,634
Vicinity Centres 19,428,664 36,446
Mirvac Group 22,401,769 34,459
Charter Hall Group 2,804,065 13,724
Investa Office Fund 2,994,542 11,782
Shopping Centres
Australasia Property
Group 5,051,547 9,188
BWP Trust 2,910,521 7,142
Cromwell Property
Group 8,649,331 6,313
Charter Hall Retail
REIT 1,967,431 5,930
Abacus Property
Group 1,954,683 4,550
National Storage REIT 3,670,539 4,435
Viva Energy REIT 2,623,847 4,054
Growthpoint Properties
Australia Ltd. 1,531,564 3,950
Aveo Group 2,536,538 3,318
Charter Hall Long
Wale REIT 1,087,937 3,177
Rural Funds Group 1,954,043 2,952
GDI Property Group 3,015,769 2,755
Folkestone Education
Trust 1,323,859 2,678
Ingenia Communities
Group 1,225,737 2,498
Arena REIT 1,545,157 2,373
Propertylink Group 2,627,019 2,177
Hotel Property
Investments 841,102 1,840
Cedar Woods
Properties Ltd. 344,220 1,293
Industria REIT 632,742 1,133
Villa World Ltd. 714,928 1,019
Servcorp Ltd. 14,200 35
496,765
Austria (0.6%)
CA Immobilien
Anlagen AG 444,203 14,455* IMMOFINANZ AG 561,064 13,356
S IMMO AG 316,186 5,406^ BUWOG AG 67,449 2,292
35,509
Belgium (0.9%)
Cofinimmo SA 127,699 15,271
Warehouses De
Pauw CVA 102,375 13,277
Aedifica SA 108,669 9,091
Befimmo SA 139,434 7,643
Retail Estates NV 46,157 3,685
Intervest Offices &
Warehouses NV 98,851 2,567
51,534
Brazil (0.7%) * BR Malls Participacoes
SA 5,472,016 18,674
Multiplan
Empreendimentos
Imobiliarios SA 1,696,548 10,485
Iguatemi Empresa de
Shopping Centers SA 549,486 5,738
Aliansce Shopping
Centers SA 554,837 2,612
BR Properties SA 780,774 1,638
Sonae Sierra Brasil SA 138,165 852
39,999
Financial Statements
Statement of Net AssetsAs of October 31, 2018
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at
the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual
and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with
the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms
N-Q on the SEC’s website at sec.gov.
Global ex-U.S. Real Estate Index Fund
10
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Canada (2.5%) ^ RioCan REIT 926,359 16,888
First Capital Realty
Inc. 1,048,261 15,639^ Canadian Apartment
Properties REIT 430,565 15,310
H&R REIT 857,380 12,967^ Allied Properties REIT 294,692 9,469^ SmartCentres REIT 396,136 9,051
Choice Properties
REIT 818,958 7,428^ Tricon Capital Group
Inc. 808,074 6,421^ Dream Global REIT 562,224 5,731
Granite REIT 134,698 5,562^ Boardwalk REIT 135,370 5,040^ Cominar REIT 538,108 4,468^ Artis REIT 449,003 3,820
Northview Apartment
REIT 163,676 3,147^ Dream Office REIT 175,535 3,107
Killam Apartment
REIT 239,678 2,944^ InterRent REIT 305,465 2,928^ Crombie REIT 263,973 2,641^ NorthWest Healthcare
Properties REIT 301,775 2,432* DREAM Unlimited
Corp. Class A 421,498 2,321
Dream Industrial REIT 257,130 1,910
CT REIT 187,742 1,854
Summit Industrial
Income REIT 247,441 1,697^ Slate Retail REIT 127,011 1,221^ Slate Office REIT 203,345 1,193
Morguard North
American Residential
REIT 95,615 1,180
Agellan Commercial
REIT 98,494 964
True North Commercial
REIT 174,518 850
148,183
Chile (0.2%)
Parque Arauco SA 4,154,456 9,424
China (9.0%)
China Overseas Land
& Investment Ltd. 22,559,710 70,924
China Resources
Land Ltd. 16,374,446 55,693
Country Garden
Holdings Co. Ltd. 43,341,163 46,642
^ China Evergrande
Group 18,172,921 43,575
Sunac China Holdings
Ltd. 13,854,278 37,919
China Vanke Co. Ltd. 7,966,483 24,600
Longfor Group
Holdings Ltd. 8,970,208 21,799
Shimao Property
Holdings Ltd. 6,454,164 12,718
China Jinmao Holdings
Group Ltd. 25,212,054 10,623
Jiayuan International
Group Ltd. 5,990,000 10,515
Agile Group Holdings
Ltd. 8,741,409 10,043
Guangzhou R&F
Properties Co. Ltd. 6,092,209 9,619
CIFI Holdings Group
Co. Ltd. 22,038,000 9,246
Sino-Ocean Group
Holding Ltd. 18,908,829 7,433
Shanghai Lujiazui
Finance & Trade Zone
Development Co. Ltd.
Class B 5,746,518 7,315
Logan Property
Holdings Co. Ltd. 7,623,984 7,061^ Future Land
Development
Holdings Ltd. 10,366,000 5,979
Yuexiu Property Co.
Ltd. 37,335,094 5,925
KWG Group Holdings
Ltd. 7,302,158 5,604
Shenzhen Investment
Ltd. 18,894,201 5,438
Yuexiu REIT 7,885,516 4,790^ Zhenro Properties
Group Ltd. 7,713,000 4,674
China Aoyuan Property
Group Ltd. 7,820,000 4,591* Renhe Commercial
Holdings Co. Ltd. 127,131,484 4,310
Shui On Land Ltd. 20,896,538 4,223*,^ Ronshine China
Holdings Ltd. 3,542,000 3,996
SOHO China Ltd. 11,402,045 3,876
China South City
Holdings Ltd. 26,090,111 3,835
Yuzhou Properties
Co. Ltd. 10,683,470 3,814
China SCE Group
Holdings Ltd. 11,084,766 3,789
11
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^,2 Red Star Macalline
Group Corp. Ltd. 4,035,324 3,570
Poly Property Group
Co. Ltd. 11,677,048 3,499
Kaisa Group Holdings
Ltd. 13,218,000 3,233
Powerlong Real Estate
Holdings Ltd. 9,391,139 3,223*,2 China Logistics
Property Holdings
Co. Ltd. 9,509,000 3,153
Hopson Development
Holdings Ltd. 4,012,710 3,085
Times China Holdings
Ltd. 3,221,000 2,822
Zall Smart Commerce
Group Ltd. 3,652,000 2,613
Gemdale Properties &
Investment Corp. Ltd. 27,512,000 2,540
Greentown China
Holdings Ltd. 3,541,814 2,475^,2 Redco Group 5,426,000 2,458^ China Overseas Grand
Oceans Group Ltd. 7,889,079 2,445
Joy City Property Ltd. 21,853,515 2,323
C C Land Holdings Ltd. 9,723,500 2,310*,^ Zhuguang Holdings
Group Co. Ltd. 12,316,000 2,282*,2 Sunshine 100 China
Holdings Ltd. 4,655,000 2,258
Road King
Infrastructure Ltd. 1,449,000 2,243* Skyfame Realty
Holdings Ltd. 12,981,012 2,235^ LVGEM China Real
Estate Investment
Co. Ltd. 6,584,000 1,853
Shanghai Jinqiao
Export Processing
Zone Development
Co. Ltd. Class B 1,668,650 1,849
Beijing Capital Land
Ltd. 5,089,034 1,728
Central China Real
Estate Ltd. 4,426,000 1,617
Yida China Holdings
Ltd. 4,482,000 1,520
Shanghai Industrial
Urban Development
Group Ltd. 8,552,799 1,280* C&D International
Investment Group Ltd. 1,425,000 1,237
Minmetals Land Ltd. 7,956,000 1,221
*,^ Ground International
Development Ltd. 11,520,000 1,177
Nam Tai Property Inc. 124,518 1,149
Beijing North Star Co.
Ltd. 4,334,000 1,146
Greenland Hong Kong
Holdings Ltd. 4,827,000 1,113
Guorui Properties Ltd. 4,456,000 1,070
China Electronics
Optics Valley Union
Holding Co. Ltd. 18,920,000 1,053*,^ Carnival Group
International
Holdings Ltd. 57,272,799 1,0382 China Vast Industrial
Urban Development
Co. Ltd. 2,645,000 1,031
Shanghai Shibei
Hi-Tech Co. Ltd.
Class B 2,877,550 1,021*,§ Mingfa Group
International Co. Ltd. 4,231,908 1,020
China Merchants
Land Ltd. 7,820,000 1,011
Xinyuan Real Estate
Co. Ltd. ADR 214,908 888
Fantasia Holdings
Group Co. Ltd. 8,831,943 883*,^ Jingrui Holdings Ltd. 3,018,000 782^ Modern Land China
Co. Ltd. 5,934,000 747* Glorious Property
Holdings Ltd. 14,812,036 722*,^ AVIC International
Holding HK Ltd. 29,153,742 674* Zhong An Real Estate
Ltd. 15,993,000 551
Tian An China
Investment Co. Ltd. 1,028,000 549
Shanghai Lingang
Holdings Corp. Ltd.
Class B 431,435 534* Sansheng Holdings
Group Co. Ltd. 366,000 501* Hydoo International
Holding Ltd. 9,360,000 500* Shanghai Zendai
Property Ltd. 34,440,000 486
Greattown Holdings
Ltd. Class B 808,800 348* Wanda Hotel
Development Co. Ltd. 4,269,000 330
12
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^ Top Spring
International
Holdings Ltd. 1,188,500 312* China Minsheng
DIT Group Ltd. 12,840,000 271* EverChina
International
Holdings Co. Ltd. 11,159,331 257* Shanghai Huili
Building Materials
Co. Ltd. Class B 106,200 77
Spring REIT 80,000 48^ Fullshare Holdings Ltd. 100,000 39
532,969
Denmark (0.0%) * TK Development A/S 5,256 5
Egypt (0.1%)
Talaat Moustafa Group 5,419,949 2,803* Medinet Nasr Housing 4,277,445 1,690* Six of October
Development &
Investment 1,490,785 1,247* Palm Hills
Developments SAE 6,064,461 796
Heliopolis Housing 763,610 765* Emaar Misr for
Development SAE 3,985,076 697* Palm Hills
Developments SAE
Rights Exp. 11/15/2018 2,021,487 31
8,029
Finland (0.1%)
Citycon Oyj 2,206,318 4,288
France (5.4%) * Unibail-Rodamco-
Westfield (Amsterdam
Shares) 617,867 111,809
Gecina SA 332,061 48,701
Klepierre SA 1,253,769 42,487* Unibail-Rodamco-
Westfield 216,117 39,235
Covivio 325,901 32,702
ICADE 272,838 23,119
Nexity SA 297,664 14,235^ Mercialys SA 336,406 4,932
Altarea SCA 22,026 4,832
322,052
Germany (6.9%)
Vonovia SE 3,139,532 143,466
Deutsche Wohnen SE 2,149,294 98,310
LEG Immobilien AG 379,430 41,475* Aroundtown SA 4,106,104 34,026
TAG Immobilien AG 881,400 20,107
Grand City
Properties SA 626,510 15,146
alstria office REIT-AG 955,011 13,7482 ADO Properties SA 166,102 9,797
Deutsche EuroShop
AG 305,439 9,478
TLG Immobilien AG 332,489 8,442
Hamborner REIT AG 479,362 4,830
PATRIZIA Immobilien
AG 267,358 4,596
ADLER Real Estate
AG 201,809 3,263
DIC Asset AG 265,584 2,864* WCM Beteiligungs
& Grundbesitz-AG 2,735 12
409,560
Greece (0.1%)
Grivalia Properties
REIC AE 295,146 2,536* LAMDA Development
SA 239,643 1,653
4,189
Hong Kong (12.0%)
Sun Hung Kai
Properties Ltd. 9,308,941 120,981
Link REIT 12,914,589 114,773
CK Asset Holdings
Ltd. 16,140,875 105,041
New World
Development Co.
Ltd. 34,611,000 44,031
Wharf Real Estate
Investment Co. Ltd. 7,005,000 43,530
Henderson Land
Development Co. Ltd. 9,046,397 42,193
Hongkong Land
Holdings Ltd. 7,109,012 42,099
Sino Land Co. Ltd. 19,602,604 30,796
Wheelock & Co. Ltd. 4,708,152 25,170
Swire Properties Ltd. 6,377,400 21,794
Hang Lung Properties
Ltd. 11,990,932 21,736
Wharf Holdings Ltd. 6,996,000 17,488
Hysan Development
Co. Ltd. 3,712,655 17,411
Hang Lung Group Ltd. 5,187,103 12,770
Kerry Properties Ltd. 3,568,832 11,236
Champion REIT 12,029,512 8,094
Great Eagle Holdings
Ltd. 868,000 3,964
Sunlight REIT 6,077,400 3,659
K Wah International
Holdings Ltd. 7,127,338 3,229
13
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Far East Consortium
International Ltd. 6,429,000 3,002^ Wang On Properties
Ltd. 22,516,000 2,788^ Chinese Estates
Holdings Ltd. 2,843,952 2,677
Prosperity REIT 7,095,649 2,517
Landing International
Development Ltd. 8,792,400 1,834
Langham Hospitality
Investments and
Langham Hospitality
Investments Ltd. 5,056,500 1,799
CSI Properties Ltd. 33,178,348 1,298
Lai Sun Development
Co. Ltd. 760,800 1,104
Liu Chong Hing
Investment Ltd. 560,000 810
Kowloon Development
Co. Ltd. 443,000 456
Emperor International
Holdings Ltd. 1,736,000 425
Soundwill Holdings
Ltd. 223,500 292
Asia Standard
International Group
Ltd. 1,508,000 284
HKR International Ltd. 38,400 18
709,299
India (0.4%)
DLF Ltd. 2,682,379 5,977
Oberoi Realty Ltd. 682,146 3,908* Godrej Properties
Ltd. 344,576 2,791
Phoenix Mills Ltd. 353,925 2,659
Prestige Estates
Projects Ltd. 699,890 1,844* Indiabulls Real Estate
Ltd. 1,690,760 1,718
Sobha Ltd. 269,084 1,626
Sunteck Realty Ltd. 222,901 976
Mahindra Lifespace
Developers Ltd. 156,706 866
Omaxe Ltd. 270,192 778* Housing Development
& Infrastructure Ltd. 1,562,087 426
Brigade Enterprises Ltd. 194,222 420* Unitech Ltd. 12,893,631 375
NESCO Ltd. 53,807 322
24,686
Indonesia (0.4%) * Bumi Serpong Damai
Tbk PT 56,190,427 4,079* Hanson International
Tbk PT 460,130,500 3,667
Ciputra Development
Tbk PT 59,559,091 3,221
Pakuwon Jati Tbk PT 87,669,628 2,759
Summarecon Agung
Tbk PT 46,971,600 1,854
Lippo Karawaci Tbk
PT 100,277,300 1,853* Kawasan Industri
Jababeka Tbk PT 101,276,111 1,479* Alam Sutera Realty
Tbk PT 67,462,397 1,236* Sentul City Tbk PT 125,524,500 786
PP Properti Tbk PT 104,663,007 662
Puradelta Lestari
Tbk PT 59,056,200 505* Intiland Development
Tbk PT 18,733,000 401* Lippo Cikarang
Tbk PT 1,115,200 113
22,615
Ireland (0.3%)
Green REIT plc 3,975,571 6,568
Hibernia REIT plc 4,161,268 6,554
Irish Residential
Properties REIT plc 2,131,320 3,435
16,557
Israel (0.9%)
Azrieli Group Ltd. 218,386 10,604
Alony Hetz Properties
& Investments Ltd. 665,002 6,326* Airport City Ltd. 436,706 5,087
Gazit-Globe Ltd. 576,796 4,823
Melisron Ltd. 105,596 4,477
Amot Investments
Ltd. 873,934 4,341
Reit 1 Ltd. 1,040,696 4,069* Jerusalem Economy
Ltd. 1,241,428 3,331
Bayside Land Corp. 5,723 2,457* Brack Capital
Properties NV 18,447 1,962
Sella Capital Real
Estate Ltd. 1,151,411 1,907
Big Shopping
Centers Ltd. 28,839 1,878* ADO Group Ltd. 76,007 1,669
14
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Property & Building
Corp. Ltd. 14,607 1,048* Africa Israel
Investments Ltd. —
53,979
Italy (0.1%)
Beni Stabili SpA SIIQ 6,254,452 5,355
Immobiliare Grande
Distribuzione SIIQ
SPA 293,544 2,071*,§ Beni Stabili SpA SIIQ
Rights Exp. 11/10/2018 6,501,127 —
7,426
Japan (22.8%)
Mitsui Fudosan Co.
Ltd. 6,007,457 135,301
Mitsubishi Estate Co.
Ltd. 8,429,445 134,718
Daiwa House Industry
Co. Ltd. 4,036,874 121,891
Sumitomo Realty &
Development Co. Ltd. 2,893,167 99,409
Daito Trust
Construction Co. Ltd. 457,825 60,359
Nippon Building Fund
Inc. 8,529 48,740
Japan Real Estate
Investment Corp. 8,365 43,170
Nomura Real Estate
Master Fund Inc. 26,087 33,790
Japan Retail Fund
Investment Corp. 15,856 29,286
United Urban
Investment Corp. 18,492 28,113
Hulic Co. Ltd. 2,970,080 27,178
Nippon Prologis REIT
Inc. 13,200 26,570
Orix JREIT Inc. 16,690 25,532
Daiwa House REIT
Investment Corp. 10,443 22,885
GLP J-Reit 23,001 22,761
Advance Residence
Investment Corp. 8,196 20,939
Japan Prime Realty
Investment Corp. 5,585 19,928
Tokyu Fudosan
Holdings Corp. 3,450,144 19,439
Japan Hotel REIT
Investment Corp. 24,278 17,271
Kenedix Office
Investment Corp. 2,600 16,112
Activia Properties Inc. 3,838 15,929
Invincible Investment
Corp. 34,794 14,412
Sekisui House Reit Inc. 22,629 14,163
Tokyo Tatemono Co.
Ltd. 1,302,683 14,011
Nomura Real Estate
Holdings Inc. 744,829 13,992
Nippon
Accommodations
Fund Inc. 2,911 13,343
Mori Hills REIT
Investment Corp. 9,588 11,859
Aeon Mall Co. Ltd. 619,883 11,448
Frontier Real Estate
Investment Corp. 2,979 11,418^ Daiwa Office
Investment Corp. 1,867 11,403
Japan Logistics Fund
Inc. 5,565 11,101
Japan Excellent Inc. 7,935 10,288
Industrial &
Infrastructure Fund
Investment Corp. 10,225 10,262
AEON REIT
Investment Corp. 9,079 10,000
Hulic Reit Inc. 6,704 9,755
NTT Urban
Development Corp. 653,000 9,705
NIPPON REIT
Investment Corp. 2,663 8,657
Comforia Residential
REIT Inc. 3,538 8,463
Tokyu REIT Inc. 5,914 8,319
Mori Trust Sogo Reit
Inc. 5,811 8,240
Premier Investment
Corp. 7,957 8,231
Kenedix Residential
Next Investment Corp. 5,215 7,954
Japan Rental Housing
Investments Inc. 9,840 7,723
MCUBS MidCity
Investment Corp. 9,899 7,577
Ichigo Office REIT
Investment 9,158 7,517
Invesco Office J-Reit
Inc. 52,114 7,344
Fukuoka REIT Corp. 4,762 7,188
Kenedix Retail REIT
Corp. 3,061 6,509
Leopalace21 Corp. 1,517,850 6,323
LaSalle Logiport REIT 6,620 6,096
Heiwa Real Estate
REIT Inc. 6,088 5,971
Hoshino Resorts
REIT Inc. 1,254 5,881
15
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Global One Real Estate
Investment Corp. 5,400 5,446
Ichigo Inc. 1,491,900 4,871
Hankyu Hanshin REIT
Inc. 3,809 4,739
Daikyo Inc. 161,805 4,247
Mitsui Fudosan
Logistics Park Inc. 1,413 4,121
Heiwa Real Estate
Co. Ltd. 205,032 3,797
Unizo Holdings Co.
Ltd. 196,300 3,698^ Katitas Co. Ltd. 145,800 3,536
Daibiru Corp. 342,357 3,451
Mitsubishi Estate
Logistics REIT
Investment Corp. 1,487 3,299^ Mirai Corp. 2,018 3,181^ One REIT Inc. 1,404 3,131
Star Asia Investment
Corp. 3,210 2,991
Mori Trust Hotel Reit
Inc. 2,058 2,487
TOC Co. Ltd. 344,129 2,344
Keihanshin Building
Co. Ltd. 279,400 2,057
Starts Proceed
Investment Corp. 1,373 1,983^ Ichigo Hotel REIT
Investment Corp. 1,567 1,845
Sakura Sogo REIT
Investment Corp. 2,164 1,688
Sun Frontier
Fudousan Co. Ltd. 165,200 1,686
Goldcrest Co. Ltd. 103,940 1,628
Takara Leben Co. Ltd. 522,052 1,504
Samty Residential
Investment Corp. 1,910 1,502^ SAMTY Co. Ltd. 107,100 1,402
Tosei Corp. 151,600 1,386^ Tosei Reit Investment
Corp. 1,420 1,378
XYMAX REIT
Investment Corp. 1,314 1,312^ Shinoken Group Co.
Ltd. 153,600 1,270^ Health Care & Medical
Investment Corp. 1,215 1,215^ CRE Logistics REIT
Inc. 1,244 1,173^ Ooedo Onsen Reit
Investment Corp. 1,450 1,107
Nippon Commercial
Development Co. Ltd. 66,400 1,007
^ Star Mica Co. Ltd. 70,800 967
Japan Property
Management Center
Co. Ltd. 83,300 908
Arealink Co. Ltd. 57,800 853* Marimo Regional
Revitalization REIT Inc. 713 688^ Ardepro Co. Ltd. 1,045,400 581^ Mugen Estate Co. Ltd. 69,700 399*,^ SAMTY Co. Ltd. Rights
Exp. 11/19/2018 107,100 104
1,349,456
Malaysia (0.6%)
Sime Darby Property
Bhd. 17,437,100 4,073
SP Setia Bhd. Group 7,844,600 3,942
KLCCP Stapled Group
Bhd. 2,131,070 3,903
IGB REIT 8,829,200 3,545
IOI Properties Group
Bhd. 11,018,600 3,450
Sunway REIT 6,998,534 2,825
Mah Sing Group Bhd. 7,812,825 1,793
Axis REIT 4,623,900 1,688
Pavilion REIT 4,141,600 1,573
UOA Development
Bhd. 3,356,100 1,566
Matrix Concepts
Holdings Bhd. 3,356,828 1,484* Eastern & Oriental
Bhd. 5,158,197 1,458* Eco World
Development Group
Bhd. 5,523,800 1,321
UEM Sunrise Bhd. 7,954,465 1,305* Eco World
International Bhd. 5,329,593 1,140
Capitaland Malaysia
Mall Trust 4,522,300 1,114
YNH Property Bhd. 2,430,300 782
LBS Bina Group Bhd. 4,304,340 701
KIP REIT 2,295,100 443
MKH Bhd. 1,087,700 322* KSL Holdings Bhd. 1,200,900 204* Sunway Bhd. Warrants
Exp. 12/31/2024 1,260,691 87* Eco World
Development Group
Bhd. Warrants
Exp. 03/26/2022 450,320 25* Matrix Concepts
Holdings Bhd.
Warrants
Exp. 07/20/2020 167,103 7
16
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
* Mah Sing Group
Warrants
Exp. 01/15/2026 264,345 4* Eastern & Oriental
Bhd. Warrants
Exp. 07/21/2019 438,840 3
38,758
Mexico (0.8%)
Fibra Uno
Administracion SA
de CV 18,294,985 19,661
Concentradora Fibra
Danhos SA de CV 4,977,092 6,554
PLA Administradora
Industrial S de RL
de CV 4,767,447 5,797
Macquarie Mexico
Real Estate
Management SA de
CV 4,800,518 4,675
Corp Inmobiliaria
Vesta SAB de CV 3,286,040 4,012
Prologis Property
Mexico SA de CV 2,076,200 3,6602 Concentradora Fibra
Hotelera Mexicana
SA de CV 4,123,348 1,979* Grupo GICSA SAB
de CV 3,905,927 1,521
Asesor de Activos
Prisma SAPI de CV 2,795,540 1,394
49,253
Netherlands (0.4%)
Eurocommercial
Properties NV 246,313 9,107^ Wereldhave NV 243,690 8,361
NSI NV 111,793 4,409
Vastned Retail NV 95,932 3,797
25,674
New Zealand (0.5%)
Kiwi Property Group
Ltd. 8,493,964 7,291
Goodman Property
Trust 6,182,707 6,056
Precinct Properties
New Zealand Ltd. 6,171,442 5,688
Argosy Property Ltd. 5,053,289 3,530
Stride Property Group 2,266,150 2,787
Vital Healthcare
Property Trust 1,996,813 2,704
28,056
Norway (0.2%) 2 Entra ASA 748,972 10,135
Selvaag Bolig ASA 274,657 1,229
11,364
Other (0.2%)3
4 Vanguard Real Estate
ETF 146,614 11,483
Philippines (1.5%)
SM Prime Holdings
Inc. 69,831,993 44,149
Ayala Land Inc. 35,471,400 26,320
Megaworld Corp. 75,937,200 6,265
Robinsons Land Corp. 12,165,572 4,782
Vista Land &
Lifescapes Inc. 25,529,278 2,522* DoubleDragon
Properties Corp. 4,452,060 1,601
Filinvest Land Inc. 57,819,000 1,514
Belle Corp. 14,032,000 619
Cebu Landmasters Inc. 2,273,000 183* International
Entertainment Corp. 1,250,000 167
88,122
Poland (0.1%) ^ EPP NV 2,723,924 3,832
LC Corp. SA 2,799,833 1,751
Globe Trade Centre SA 9,232 19
5,602
Qatar (0.3%)
Barwa Real Estate Co. 1,192,375 12,235
United Development
Co. QSC 1,097,747 4,215* Mazaya Qatar Real
Estate Development
QSC 323,513 672
17,122
Russia (0.1%)
LSR Group PJSC GDR 1,261,037 2,345
Etalon Group plc GDR 505,571 1,159
3,504
Singapore (5.4%)
CapitaLand Ltd. 15,193,738 34,512
Ascendas REIT 15,420,643 28,079
CapitaLand Mall Trust 16,332,134 24,876
City Developments
Ltd. 3,730,490 21,319
CapitaLand
Commercial Trust 16,796,287 20,988
Suntec REIT 13,555,227 17,348
UOL Group Ltd. 3,267,878 14,234
Mapletree Commercial
Trust 11,479,833 13,349
Mapletree Logistics
Trust 14,458,996 12,636
Mapletree North Asia
Commercial Trust 13,000,504 10,620
Mapletree Industrial
Trust 7,554,934 10,083
17
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Fortune REIT 8,324,861 9,108
Keppel REIT 10,953,015 8,941
Frasers Logistics &
Industrial Trust 9,633,950 7,093
Ascott Residence
Trust 7,336,362 5,571^ Keppel DC REIT 5,691,098 5,474
Frasers Centrepoint
Trust 3,455,841 5,392
Manulife US REIT 7,119,234 5,065
CDL Hospitality Trusts 4,545,086 4,760
Parkway Life REIT 2,334,755 4,385
ESR-REIT 11,579,235 4,059
Frasers Commercial
Trust 4,070,567 4,032
Starhill Global REIT 8,152,668 3,945
Yanlord Land Group
Ltd. 3,975,804 3,626
AIMS AMP Capital
Industrial REIT 3,606,376 3,488
CapitaLand Retail
China Trust 3,521,386 3,487
OUE Hospitality Trust 6,712,400 3,294
Cache Logistics Trust 6,354,942 3,145
First REIT 3,445,154 2,987
SPH REIT 3,857,300 2,745
Frasers Property Ltd. 2,298,800 2,621
Ascendas Hospitality
Trust 4,364,900 2,489
Far East Hospitality
Trust 5,478,192 2,354
GuocoLand Ltd. 1,797,277 2,168
Lippo Malls Indonesia
Retail Trust 11,458,906 1,986
Soilbuild Business
Space REIT 4,435,060 1,825
OUE Ltd. 1,727,400 1,748
Sabana Shari’ah
Compliant Industrial
REIT 4,899,872 1,414
GSH Corp. Ltd. 4,962,300 1,401
Chip Eng Seng Corp.
Ltd. 1,569,900 759* Ying Li International
Real Estate Ltd. 7,738,700 476* Aspen Group
Holdings Ltd. 1,200,200 158
Wing Tai Holdings Ltd. 24,000 33
Yoma Strategic
Holdings Ltd. 132,000 24
318,097
South Africa (2.3%)
Growthpoint
Properties Ltd. 17,995,940 27,629
NEPI Rockcastle plc 2,875,171 24,837
^ Redefine Properties
Ltd. 32,490,515 21,118
Hyprop Investments
Ltd. 1,536,663 9,406
Resilient REIT Ltd. 2,076,295 8,425
Fortress REIT Ltd.
Class A 7,121,349 8,170
Vukile Property Fund
Ltd. 4,928,101 6,790
Fortress REIT Ltd.
Class B 5,678,125 5,550
Attacq Ltd. 4,511,162 4,450
SA Corporate Real
Estate Ltd. 15,122,514 4,055
Equites Property
Fund Ltd. 2,716,929 3,689
Emira Property Fund
Ltd. 2,608,371 2,630
Arrowhead Properties
Ltd. 6,247,918 2,276* Stor-Age Property
REIT Ltd. 2,134,841 1,778
Rebosis Property
Fund Ltd. 3,765,131 1,584
Delta Property Fund
Ltd. 3,373,933 1,369
Octodec Investments
Ltd. 1,036,853 1,357
135,113
South Korea (0.0%)
SK D&D Co. Ltd. 45,403 1,222^ Dongwon
Development Co. Ltd. 247,658 772
1,994
Spain (1.0%)
Merlin Properties
Socimi SA 2,218,615 27,800
Inmobiliaria Colonial
Socimi SA 1,791,532 17,988
Lar Espana Real
Estate Socimi SA 431,314 4,274*,2 Aedas Homes SAU 139,562 3,613*,2 Metrovacesa SA 274,903 3,381* Quabit Inmobiliaria SA 737,345 1,417* Realia Business SA 22,034 25
58,498
Sweden (2.2%)
Castellum AB 1,651,573 28,469* Fabege AB 1,644,187 20,995* Fastighets AB Balder
Class B 588,831 14,768
Hemfosa Fastigheter
AB 1,016,027 12,552^ Wallenstam AB 1,181,909 10,649
18
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Hufvudstaden AB
Class A 712,404 10,532* Wihlborgs Fastigheter
AB 809,358 9,131
Kungsleden AB 1,135,520 7,938
Klovern AB 3,236,119 3,734* Hembla AB Class B 213,279 3,647
Dios Fastigheter AB 525,983 3,168
Sagax AB 509,723 1,867
Victoria Park AB
Class B 104,720 420
Magnolia Bostad AB 3,673 16
127,886
Switzerland (1.4%)
Swiss Prime Site AG 459,510 37,286
PSP Swiss Property AG 244,416 23,583
Allreal Holding AG 79,198 12,149
Mobimo Holding AG 39,940 8,894
Intershop Holding AG 8,109 3,985
85,897
Taiwan (0.7%)
Highwealth
Construction Corp. 5,627,544 8,266
Ruentex Development
Co. Ltd. 4,085,325 5,670
Chong Hong
Construction Co. Ltd. 1,293,297 2,948
Huaku Development
Co. Ltd. 1,436,854 2,923
Hung Sheng
Construction Ltd. 3,264,000 2,775
Prince Housing &
Development Corp. 7,378,478 2,410* Radium Life Tech Co.
Ltd. 4,208,947 2,077
Farglory Land
Development Co. Ltd. 1,738,631 1,987
Cathay Real Estate
Development Co. Ltd. 3,105,100 1,847
Kindom Construction
Corp. 2,172,000 1,197* Taiwan Land
Development Corp. 4,118,450 1,065
KEE TAI Properties
Co. Ltd. 2,678,869 1,015
Kuoyang Construction
Co. Ltd. 2,684,887 976
Hong Pu Real Estate
Development Co. Ltd. 1,444,194 926* Shining Building
Business Co. Ltd. 2,633,524 837
Long Bon
International Co. Ltd. 1,544,000 745
Huang Hsiang
Construction Corp. 790,000 636
Advancetek
Enterprise Co. Ltd. 1,300,000 633
Hung Ching
Development &
Construction Co. Ltd. 829,000 625
ZongTai Real Estate
Development Co. Ltd. 1,120,574 590
40,148
Thailand (1.4%) * Central Pattana PCL 8,098,800 19,313* CPN Retail Growth
Leasehold REIT 9,706,610 7,681* Land & Houses PCL
(Local) 21,035,600 6,552
Tesco Lotus Retail
Growth Freehold &
Leasehold Property
Fund 10,523,756 6,064* WHA Corp. PCL
(Local) 37,014,230 4,608
MBK PCL 4,058,900 2,988* Bangkok Land PCL
(Local) 48,233,400 2,506* Quality Houses PCL 26,250,800 2,490
Samui Airport
Property Fund
Leasehold 3,457,175 2,451* Supalai PCL (Local) 3,548,305 2,345* Amata Corp. PCL 3,116,300 2,270* IMPACT Growth REIT 3,872,800 2,210* Pruksa Holding PCL 2,842,300 1,733* Origin Property PCL 6,182,098 1,720* Singha Estate PCL
(Local) 16,462,336 1,565* U City PCL 1,665,852,400 1,508* Platinum Group PCL 5,603,200 1,338* Ananda
Development PCL 9,015,100 1,260* Siam Future
Development PCL 5,300,267 1,233*,§ Pruksa Real Estate
PCL 3,024,500 1,224* Grand Canal Land
PCL 13,403,200 1,191* AP Thailand PCL 4,272,950 1,060* Sansiri PCL (Local) 20,529,400 973* LPN Development
PCL 3,430,000 970* Golden Land Property
Development PCL 3,052,700 849
Property Perfect PCL 26,569,900 802
19
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
^ WHA Corp. PCL
(Foreign) 5,869,056 731^ Sansiri PCL 14,694,200 697* Golden Ventures
Leasehold REIT 1,540,000 683
SC Asset Corp. PCL
NVDR 5,349,100 549* PACE Development
Corp. PCL 33,926,400 544^ Supalai PCL (Foreign) 806,276 533* Country Group
Development PCL 13,148,100 532* Univentures PCL
(Local) 2,078,700 463^ Univentures PCL
(Foreign) 1,856,500 413
Asian Property
Development PCL
(Foreign) 1,513,270 375* SC Asset Corp. PCL
(Local) 3,071,925 315
SC Asset Corp. PCL
(Foreign) 2,817,412 289
Bangkok Land PCL
(Foreign) 4,269,495 222* Bhiraj Office
Leasehold REIT 536,900 214
Land & Houses PCL
(Foreign) 481,300 150* Origin Property PCL
Warrants 908,724 54*,^ Singha Estate PCL
(Foreign) 253,164 24* TICON Industrial
Connection PCL 8,123 4
85,696
Turkey (0.1%)
Emlak Konut
Gayrimenkul Yatirim
Ortakligi AS 11,662,082 3,493
Is Gayrimenkul Yatirim
Ortakligi AS 3,389,740 528
Torunlar Gayrimenkul
Yatirim Ortakligi AS 85,158 24
4,045
United Arab Emirates (1.0%)
Emaar Properties PJSC 21,978,710 30,495
Aldar Properties PJSC 24,093,076 11,358
Emaar Malls PJSC 12,229,847 6,089
DAMAC Properties
Dubai Co. PJSC 10,612,613 5,842
* Eshraq Properties Co.
PJSC 7,035,885 1,151* Deyaar Development
PJSC 9,121,738 1,096
RAK Properties PJSC 5,511,338 836
56,867
United Kingdom (6.9%)
Land Securities
Group plc 4,535,725 49,340
Segro plc 6,103,324 47,849
British Land Co. plc 6,002,216 45,331
Hammerson plc 4,798,802 26,792
Derwent London plc 668,898 25,013
UNITE Group plc 1,591,673 17,330
Tritax Big Box REIT
plc 8,917,163 16,280
Shaftesbury plc 1,397,031 15,997
Great Portland
Estates plc 1,703,164 15,154
Capital & Counties
Properties plc 4,535,472 14,471
Intu Properties plc 5,281,237 13,210
Big Yellow Group plc 946,348 10,419
Workspace Group plc 799,155 9,795
LondonMetric
Property plc 4,185,377 9,638
Assura plc 14,360,401 9,592
Grainger plc 2,508,697 8,667
Safestore Holdings
plc 1,267,081 8,652
F&C Commercial
Property Trust Ltd. 4,845,360 8,333
Primary Health
Properties plc 4,395,577 6,135
NewRiver REIT plc 1,855,986 5,985
St. Modwen
Properties plc 1,241,336 5,926
UK Commercial
Property REIT Ltd. 4,116,641 4,615
Empiric Student
Property plc 3,426,400 4,153
MAS Real Estate Inc. 2,546,949 3,641
Picton Property
Income Ltd. 3,256,622 3,610
Redefine
International plc 8,079,390 3,402
Hansteen Holdings
plc 2,467,831 3,035
LXI REIT plc 1,889,302 2,864
Helical plc 641,768 2,5422 Regional REIT Ltd. 1,816,181 2,328
Schroder REIT Ltd. 3,104,311 2,319
20
Global ex-U.S. Real Estate Index Fund
Market
Value•
Shares ($000)
Amount
($000)
U & I Group plc 710,612 2,080
Capital & Regional plc 3,096,211 1,666
Civitas Social
Housing plc 1,158,990 1,6302 Triple Point Social
Housing Reit plc 1,203,645 1,5802 AEW UK Long Lease
Reit plc 124,067 143
409,517
Total Common Stocks
(Cost $6,348,456) 5,849,220
Temporary Cash Investments (3.1%)1
Money Market Fund (3.0%)5,6 Vanguard Market
Liquidity Fund, 2.308% 1,773,416 177,342
Face
Amount
($000)
U.S. Government and Agency Obligations (0.1%) 7 United States Treasury
Bill, 2.078%, 11/15/18 1,400 1,3997 United States Treasury
Bill, 2.037%, 11/29/18 1,000 9987 United States Treasury
Bill, 2.082%, 12/20/18 1,000 9977 United States Treasury
Bill, 2.284%, 2/21/19 400 397
3,791
Total Temporary Cash Investments
(Cost $181,123) 181,133
Total Investments (102.0%)
(Cost $6,529,579) 6,030,353
Other Assets and Liabilities (-2.0%)
Other Assets
Investment in Vanguard 329
Receivables for Investment Securities Sold 325
Receivables for Accrued Income 23,940
Receivables for Capital Shares Issued 431
Variation Margin Receivable—
Futures Contracts 708
Unrealized Appreciation—
Forward Currency Contracts 119
Other Assets6 17,126
Total Other Assets 42,978
Liabilities
Payables for Investment Securities
Purchased (3,502)
Collateral for Securities on Loan (153,729)
Payables for Capital Shares Redeemed (3,672)
Payables to Vanguard (1,112)
Unrealized Depreciation—
Forward Currency Contracts (495)
Other Liabilities (228)
Total Liabilities (162,738)
Net Assets (100%) 5,910,593
21
Global ex-U.S. Real Estate Index Fund
At October 31, 2018, net assets consisted of:
Amount
($000)
Amount
($000)
Paid-in Capital 6,501,223
Total Distributable Earnings (Loss) (590,630)
Net Assets 5,910,593
Investor Shares—Net Assets
Applicable to 2,410,766 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 51,093
Net Asset Value Per Share—
Investor Shares $21.19
ETF Shares—Net Assets
Applicable to 99,453,184 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 5,269,877
Net Asset Value Per Share—
ETF Shares $52.99
Admiral Shares—Net Assets
Applicable to 14,777,600 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 474,542
Net Asset Value Per Share—
Admiral Shares $32.11
Institutional Shares—Net Assets
Applicable to 1,075,693 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 115,081
Net Asset Value Per Share—
Institutional Shares $106.98
• See Note A in Notes to Financial Statements.
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $134,792,000.
§ Security value determined using significant unobservable inputs.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 2.0%, respectively, of net assets.
2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2018, the aggregate value of these securities was $45,426,000, representing 0.8% of net assets.
3 “Other” represents securities that are not classified by the fund’s benchmark index.
4 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
5 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
6 Includes $153,729,000 of collateral received for securities on loan, of which $139,842,000 is held in Vanguard Market Liquidity Fund and $13,887,000 is held in cash.
7 Securities with a value of $2,922,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
GDR—Global Depositary Receipt.
NVDR—Non-Voting Depository Receipt.
REIT—Real Estate Investment Trust.
22
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
($000)
Value and
Number of Unrealized
Long (Short) Notional Appreciation
Expiration Contracts Amount (Depreciation)
Long Futures Contracts
E-mini S&P 500 Index December 2018 227 30,771 (2,261)
MSCI Emerging Market Index December 2018 417 19,947 (1,595)
Topix Index December 2018 51 7,416 (139)
FTSE 100 Index December 2018 40 3,634 (94)
(4,089)
Forward Currency Contracts
Unrealized
Contract Appreciation
Settlement Contract Amount (000) (Depreciation)
Counterparty Date Receive Deliver ($000)
Morgan Stanley Capital Services LLC 12/18/18 JPY 1,721,992 USD 15,557 (230)
Toronto-Dominion Bank 12/28/18 GBP 5,473 USD 7,283 (265)
UBS AG 12/18/18 USD 9,086 JPY 1,018,640 19
Barclays Bank plc 12/18/18 USD 6,435 JPY 722,600 3
UBS AG 12/28/18 USD 2,749 GBP 2,083 79
Deutsche Bank AG 12/28/18 USD 685 GBP 520 18
(376)
GBP—British pound.
JPY—Japanese yen.
USD—U.S. dollar.
23
24
Year Ended
October 31, 2018
($000)
Investment Income
Income
Dividends—Unaffiliated Issuers1 297,601
Dividends—Affiliated Issuers 447
Interest—Unaffiliated Issuers 57
Interest—Affiliated Issuers 451
Securities Lending—Net 6,208
Total Income 304,764
Expenses
The Vanguard Group—Note B
Investment Advisory Services 991
Management and Administrative—Investor Shares 146
Management and Administrative—ETF Shares 4,240
Management and Administrative—Admiral Shares 393
Management and Administrative—Institutional Shares 105
Marketing and Distribution—Investor Shares 10
Marketing and Distribution—ETF Shares 328
Marketing and Distribution—Admiral Shares 34
Marketing and Distribution—Institutional Shares 3
Custodian Fees 1,352
Auditing Fees 39
Shareholders’ Reports and Proxy—Investor Shares 2
Shareholders’ Reports and Proxy—ETF Shares 373
Shareholders’ Reports and Proxy—Admiral Shares 4
Shareholders’ Reports and Proxy—Institutional Shares —
Trustees’ Fees and Expenses 4
Total Expenses 8,024
Net Investment Income 296,740
Realized Net Gain (Loss)
Investment Securities Sold—Unaffiliated Issuers2 38,333
Investment Securities Sold—Affiliated Issuers 319
Futures Contracts 306
Forward Currency Contracts (651)
Foreign Currencies (337)
Realized Net Gain (Loss) 37,970
Change in Unrealized Appreciation (Depreciation)
Investment Securities Sold—Unaffiliated Issuers (797,533)
Investment Securities Sold—Affiliated Issuers 67
Futures Contracts (4,594)
Forward Currency Contracts (376)
Foreign Currencies (112)
Change in Unrealized Appreciation (Depreciation) (802,548)
Net Increase (Decrease) in Net Assets Resulting from Operations (467,838)
1 Dividends are net of foreign withholding taxes of $18,393,000.
2 Includes $49,332,000 of net gain (loss) resulting from in-kind redemptions; such gain (loss) is not taxable to the fund.
See accompanying Notes, which are an integral part of the Financial Statements.
Statement of Operations
Global ex-U.S. Real Estate Index Fund
Statement of Changes in Net Assets
Global ex-U.S. Real Estate Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended October 31,
2018 2017
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 296,740 161,220
Realized Net Gain (Loss) 37,970 49,701
Change in Unrealized Appreciation (Depreciation) (802,548) 489,291
Net Increase (Decrease) in Net Assets Resulting from Operations (467,838) 700,212
Distributions
Net Investment Income
Investor Shares (2,637) (2,179)
ETF Shares (284,755) (142,965)
Admiral Shares (24,016) (14,861)
Institutional Shares (7,330) (6,531)
Realized Capital Gain
Investor Shares — —
ETF Shares — —
Admiral Shares — —
Institutional Shares — —
Total Distributions (318,738) (166,536)
Capital Share Transactions
Investor Shares 1,905 (10,258)
ETF Shares 852,990 1,045,850
Admiral Shares 82,863 33,006
Institutional Shares (26,347) (29,219)
Net Increase (Decrease) from Capital Share Transactions 911,411 1,039,379
Total Increase (Decrease) 124,835 1,573,055
Net Assets
Beginning of Period 5,785,758 4,212,703
End of Period 5,910,593 5,785,758
25
Investor Shares
For a Share Outstanding Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $23.79 $21.35 $21.44 $22.63 $23.06
Investment Operations
Net Investment Income 1.0311 .7111 .6551 .683 .944
Net Realized and Unrealized Gain (Loss)
on Investments (2.505) 2.530 (.088) (1.103) (.443)
Total from Investment Operations (1.474) 3.241 .567 (.420) .501
Distributions
Dividends from Net Investment Income (1.126) (.801) (.657) (.770) (.931)
Distributions from Realized Capital Gains — — — — —
Total Distributions (1.126) (.801) (.657) (.770) (.931)
Net Asset Value, End of Period $21.19 $23.79 $21.35 $21.44 $22.63
Total Return2 -6.61% 15.88% 2.72% -1.82% 2.41%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $51 $56 $59 $58 $51
Ratio of Total Expenses to Average Net Assets 0.31% 0.34% 0.35% 0.36% 0.37%
Ratio of Net Investment Income to
Average Net Assets 4.32% 3.24% 3.10% 2.97% 4.10%
Portfolio Turnover Rate3 7% 6% 7% 12% 8%
1 Calculated based on average shares outstanding.
2 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.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
26
ETF Shares
For a Share Outstanding Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $59.49 $53.35 $53.58 $56.54 $57.64
Investment Operations
Net Investment Income 2.6721 1.9001 1.7521 1.802 2.437
Net Realized and Unrealized Gain (Loss)
on Investments (6.240) 6.325 (.241) (2.747) (1.120)
Total from Investment Operations (3.568) 8.225 1.511 (.945) 1.317
Distributions
Dividends from Net Investment Income (2.932) (2.085) (1.741) (2.015) (2.417)
Distributions from Realized Capital Gains — — — — —
Total Distributions (2.932) (2.085) (1.741) (2.015) (2.417)
Net Asset Value, End of Period $52.99 $59.49 $53.35 $53.58 $56.54
Total Return -6.42% 16.13% 2.92% -1.66% 2.51%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $5,270 $5,122 $3,616 $3,111 $2,203
Ratio of Total Expenses to Average Net Assets 0.12% 0.14% 0.15% 0.18% 0.24%
Ratio of Net Investment Income to
Average Net Assets 4.51% 3.44% 3.30% 3.15% 4.23%
Portfolio Turnover Rate2 7% 6% 7% 12% 8%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
27
Admiral Shares
For a Share Outstanding Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $36.05 $32.33 $32.47 $34.27 $34.92
Investment Operations
Net Investment Income 1.6201 1.1411 1.0581 1.090 1.466
Net Realized and Unrealized Gain (Loss)
on Investments (3.784) 3.844 (.139) (1.673) (.661)
Total from Investment Operations (2.164) 4.985 .919 (.583) .805
Distributions
Dividends from Net Investment Income (1.776) (1.265) (1.059) (1.217) (1.455)
Distributions from Realized Capital Gains — — — — —
Total Distributions (1.776) (1.265) (1.059) (1.217) (1.455)
Net Asset Value, End of Period $32.11 $36.05 $32.33 $32.47 $34.27
Total Return2 -6.43% 16.15% 2.91% -1.66% 2.55%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $475 $453 $373 $349 $296
Ratio of Total Expenses to Average Net Assets 0.12% 0.14% 0.15% 0.18% 0.24%
Ratio of Net Investment Income to
Average Net Assets 4.51% 3.44% 3.30% 3.15% 4.23%
Portfolio Turnover Rate3 7% 6% 7% 12% 8%
1 Calculated based on average shares outstanding.
2 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.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
28
Institutional Shares
For a Share Outstanding Year Ended October 31,
Throughout Each Period 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $120.11 $107.71 $108.17 $114.14 $116.37
Investment Operations
Net Investment Income 5.5431 3.8891 3.5591 3.657 4.954
Net Realized and Unrealized Gain (Loss)
on Investments (12.740) 12.741 (.483) (5.541) (2.273)
Total from Investment Operations (7.197) 16.630 3.076 (1.884) 2.681
Distributions
Dividends from Net Investment Income (5.933) (4.230) (3.536) (4.086) (4.911)
Distributions from Realized Capital Gains — — — — —
Total Distributions (5.933) (4.230) (3.536) (4.086) (4.911)
Net Asset Value, End of Period $106.98 $120.11 $107.71 $108.17 $114.14
Total Return2 -6.42% 16.17% 2.93% -1.61% 2.55%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $115 $156 $165 $167 $176
Ratio of Total Expenses to Average Net Assets 0.11% 0.12% 0.13% 0.16% 0.22%
Ratio of Net Investment Income to
Average Net Assets 4.52% 3.46% 3.32% 3.17% 4.25%
Portfolio Turnover Rate3 7% 6% 7% 12% 8%
1 Calculated based on average shares outstanding.
2 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Global ex-U.S. Real Estate Index Fund
29
Notes to Financial Statements
Global ex-U.S. Real Estate Index Fund
Vanguard Global ex-U.S. Real Estate Index Fund is registered under the Investment Company Act
of 1940 as an open-end investment company, or mutual fund. 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. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral
Shares, and Institutional Shares. Investor Shares are available to any investor who meets the fund’s
minimum purchase requirements. ETF Shares are listed for trading on Nasdaq; they can be purchased
and sold through a broker. Admiral Shares and Institutional Shares are designed for investors who
meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles
for U.S. investment companies. The fund consistently follows such policies in preparing its financial
statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange
(generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted
sales prices or official closing prices taken from the primary market in which each security trades;
such securities not traded on the valuation date are valued at the mean of the latest quoted bid and
asked prices. Securities for which market quotations are not readily available, or whose values have
been affected by events occurring before the fund’s pricing time but after the close of the securities’
primary markets, are valued at their fair values calculated according to procedures adopted by the
board of trustees. These procedures include obtaining quotations from an independent pricing
service, monitoring news to identify significant market- or security-specific events, and evaluating
changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-
traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value
pricing is employed, the prices of securities used by a fund to calculate its net asset value may
differ from quoted or published prices for the same securities. Investments in Vanguard Market
Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued
using the latest bid prices or using valuations based on a matrix system (which considers such
factors as security prices, yields, maturities, and ratings), both as furnished by independent
pricing services.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies
are translated into U.S. dollars using exchange rates obtained from an independent third party as
of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation
(depreciation) on investment securities include the effects of changes in exchange rates since the
securities were purchased, combined with the effects of changes in security prices. Fluctuations
in the value of other assets and liabilities resulting from changes in exchange rates are recorded as
unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which
time they are recorded as realized foreign currency gains (losses).
3. Futures and Forward Currency 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 clearing-
house is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the
30
Global ex-U.S. Real Estate Index Fund
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 clearing-
house 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
assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
The fund also enters into forward currency contracts to provide the appropriate currency exposure
related to any open futures contracts. 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 assets pledged as collateral
for open contracts are noted in the Statement of Net Assets. 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.
Futures contracts are valued at their quoted daily settlement prices. 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 Net Assets. Fluctuations in the value of the contracts are recorded in
the Statement of Net Assets 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 or forward currency contracts.
During the year ended October 31, 2018, 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. The fund’s average investment in
forward currency contracts represented less than 1% of net assets, based on the average of the
notional amounts at each quarter-end during the period.
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company
and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for
all open federal income tax years (October 31, 2015–2018), and has concluded that no provision for
federal income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
31
Global ex-U.S. Real Estate Index Fund
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 Net Assets for the return of the collateral, during the period the securities are
on loan. 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 Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and included in Management and Administrative expenses on the fund’s
Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the
higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight
bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at October 31, 2018, or at any time during the period
then ended.
8. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income
distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and
discounts on debt securities purchased are amortized and accreted, respectively, to interest income
over the lives of the respective securities. 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.
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), shareholder reporting, and the proxy. 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.
32
Global ex-U.S. Real Estate Index Fund
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. Vanguard does not require reimbursement in the current period
for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs);
the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement
of Net Assets. All other costs of operations payable to Vanguard 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 October 31, 2018, the fund had contributed to Vanguard capital in the amount of
$329,000, representing 0.01% of the fund’s net assets and 0.13% of Vanguard’s capitalization.
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. 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 valued with significant unobservable inputs are
noted on the Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of October 31, 2018,
based on the inputs used to value them:
Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 260,379 5,586,597 2,244
Temporary Cash Investments 177,342 3,791 —
Futures Contracts—Assets1 708 — —
Forward Currency Contracts—Assets — 119 —
Forward Currency Contracts—Liabilities — (495) —
Total 438,429 5,590,012 2,244
1 Represents variation margin on the last day of the reporting period.
33
Global ex-U.S. Real Estate Index Fund
D. At October 31, 2018, the fair values of derivatives were reflected in the Statement of Net Assets
as follows:
Foreign
Equity Exchange
Contracts Contracts Total
Statement of Net Assets Caption ($000) ($000) ($000)
Variation Margin Receivable—Futures Contracts 708 — 708
Unrealized Appreciation—Forward Currency Contracts — 119 119
Total Assets 708 119 827
Unrealized Depreciation—Forward Currency Contracts — (495) (495)
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for
the year ended October 31, 2018, were:
Foreign
Equity Exchange
Contracts Contracts Total
Realized Net Gain (Loss) on Derivatives ($000) ($000) ($000)
Futures Contracts 306 — 306
Forward Currency Contracts — (651) (651)
Realized Net Gain (Loss) on Derivatives 306 (651) (345)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts (4,594) — (4,594)
Forward Currency Contracts — (376) (376)
Change in Unrealized Appreciation
(Depreciation) on Derivatives (4,594) (376) (4,970)
E. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character. These
reclassifications have no effect on net assets or net asset value per share. As of period end, the
following permanent differences primarily attributable to the accounting for in-kind redemptions,
foreign currency transactions, and passive foreign investment companies were reclassified to the
following accounts:
Amount
($000)
Paid-in Capital 49,328
Total Distributable Earnings (Loss) (49,328)
34
Global ex-U.S. Real Estate Index Fund
Temporary differences between book-basis and tax-basis components of total distributable earnings
(loss) arise when certain items of income, gain, or loss are recognized in different periods for
financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales, the realization
of unrealized gains or losses on certain futures contracts and forward currency contracts, and
unrealized gains on passive foreign investment companies. As of period end, the tax-basis
components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 121,794
Undistributed Long-Term Gains —
Capital Loss Carryforwards* (132,727)
Net Unrealized Gains (Losses) (578,876)
* Includes $1,948,000, which may be used to offset future net capital gains through October 31, 2019, as well as capital losses of $130,779,000, which may be carried forward indefinitely but must be used before any expiring loss carryforwards.
As of October 31, 2018, 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 6,608,899
Gross Unrealized Appreciation 298,334
Gross Unrealized Depreciation (877,019)
Net Unrealized Appreciation (Depreciation) (578,685)
F. During the year ended October 31, 2018, the fund purchased $1,630,564,000 of investment
securities and sold $787,971,000 of investment securities, other than temporary cash investments.
Purchases and sales include $988,439,000 and $353,169,000, respectively, in connection with
in-kind purchases and redemptions of the fund’s capital shares.
35
Global ex-U.S. Real Estate Index Fund
G. Capital share transactions for each class of shares were:
Year Ended October 31,
2018 2017
Amount Shares Amount Shares
($000) (000) ($000) (000)
Investor Shares
Issued1 11,117 463 9,645 443
Issued in Lieu of Cash Distributions 2,293 98 1,894 94
Redeemed2 (11,505) (484) (21,797) (968)
Net Increase (Decrease)—Investor Shares 1,905 77 (10,258) (431)
ETF Shares
Issued1 1,222,061 20,065 1,594,745 29,212
Issued in Lieu of Cash Distributions — — — —
Redeemed2 (369,071) (6,700) (548,895) (10,900)
Net Increase (Decrease)—ETF Shares 852,990 13,365 1,045,850 18,312
Admiral Shares
Issued1 136,046 3,715 96,042 2,884
Issued in Lieu of Cash Distributions 20,084 564 12,797 417
Redeemed2 (73,267) (2,064) (75,833) (2,272)
Net Increase (Decrease)—Admiral Shares 82,863 2,215 33,006 1,029
Institutional Shares
Issued1 5,719 47 35,925 321
Issued in Lieu of Cash Distributions 3,800 32 4,242 41
Redeemed2 (35,866) (300) (69,386) (595)
Net Increase (Decrease)—Institutional Shares (26,347) (221) (29,219) (233)
1 Includes purchase fees for fiscal 2018 and 2017 of $350,000 and $495,000, respectively (fund totals).
2 Net of redemption fees for fiscal 2018 and 2017 of $227,000 and $251,000, respectively (fund totals).
At October 31, 2018, one shareholder was the record or beneficial owner of 27% of the fund’s net
assets. If the shareholder were to redeem its investment in the fund, the redemption might result
in an increase in the fund’s expense ratio.
36
Global ex-U.S. Real Estate Index Fund
H. Transactions during the period in investments where the issuer is another member of The
Vanguard Group were as follows:
Current Period Transactions
Oct. 31, Proceeds Realized Oct. 31,
2017 from Net Change in Capital Gain 2018
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 147,067 NA1 NA1 (7) 6 451 — 177,342
Vanguard Real
Estate ETF 7,908 31,823 28,5452 326 61 447 — 11,483
Total 154,975 319 67 898 — 188,825
1 Not applicable—purchases and sales are for temporary cash investment purposes.
2 Does not include adjustment related to return of capital.
I. Management has determined that no events or transactions occurred subsequent to October 31,
2018, that would require recognition or disclosure in these financial statements.
37
To the Board of Trustees of Vanguard International Equity Index Funds and Shareholders of
Vanguard Global ex-U.S. Real Estate Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of net assets of Vanguard Global ex-U.S. Real Estate
Index Fund (one of the funds constituting Vanguard International Equity Index Funds, referred to
hereafter as the “Fund”) as of October 31, 2018, the related statement of operations for the year
ended October 31, 2018, the statement of changes in net assets for each of the two years in the
period ended October 31, 2018, including the related notes, and the financial highlights for each
of the five years in the period ended October 31, 2018 (collectively referred to as the “financial
statements”). In our opinion, the financial statements present fairly, in all material respects, the
financial position of the Fund as of October 31, 2018, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period ended October 31,
2018 and the financial highlights for each of the five years in the period ended October 31, 2018
in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility
is to express an opinion on the Fund’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
(“PCAOB”) and are required to be independent with respect to the Fund in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement, whether due to error
or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. Our procedures included confirmation of securities owned
as of October 31, 2018 by correspondence with the custodians and brokers and by agreement to
the underlying ownership records of the transfer agent; when replies were not received from
brokers, we performed other auditing procedures. We believe that our audits provide a reasonable
basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 13, 2018
We have served as the auditor of one or more investment companies in The Vanguard Group of
Funds since 1975.
Report of Independent Registered Public Accounting Firm
38
Special 2018 tax information (unaudited) for Vanguard Global ex-U.S. Real Estate Index Fund
This information for the fiscal year ended October 31, 2018, is included pursuant to provisions of
the Internal Revenue Code.
The fund distributed $54,753,000 of qualified dividend income to shareholders during the fiscal year.
The fund designates to shareholders foreign source income of $289,914,000 and foreign taxes paid
of $17,951,000. Shareholders will receive more detailed information with their Form 1099-DIV in
January 2019 to determine the calendar-year amounts to be included on their 2018 tax returns.
39
Your Fund’s After-Tax Returns
40
This table presents returns for your fund both before and after taxes. The after-tax returns are
shown in two ways: (1) assuming that an investor owned the fund during the entire period and
paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s
distributions and sold all shares at the end of each period.
Calculations are based on the highest individual federal income tax and capital gains tax rates in
effect at the times of the distributions and the hypothetical sales. State and local taxes were not
considered. After-tax returns reflect any qualified dividend income, using actual prior-year figures
and estimates for 2018. (In the example, returns after the sale of fund shares may be higher than
those assuming no sale. This occurs when the sale would have produced a capital loss. The
calculation assumes that the investor received a tax deduction for the loss.)
The table shows returns for Investor Shares only; returns for other share classes will differ. Please
note that your actual after-tax returns will depend on your tax situation and may differ from those
shown. Also note that if you own the fund in a tax-deferred account, such as an individual
retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not
subject to current taxes.
Finally, keep in mind that a fund’s performance—whether before or after taxes—does not
guarantee future results.
Average Annual Total Returns: Global ex-U.S. Real Estate Index Fund Investor Shares Periods Ended October 31, 2018
One
Year
Five
Years
Since
Inception
(11/1/2010)
Returns Before Taxes -7.07% 2.16% 4.45%
Returns After Taxes on Distributions -8.68 0.69 3.13
Returns After Taxes on Distributions and Sale of Fund Shares -3.92 1.11 2.99
Vanguard fund returns are adjusted to reflect the 0.25% fee on purchases and redemptions.
About Your Fund’s Expenses
41
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 ongoingcosts only and do not reflect transaction costs incurred by the fund for buying and sellingsecurities. Further, the expenses do not include any purchase, redemption, or account servicefees described in the fund prospectus. If such fees were applied to your account, your costswould 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.
42
Six Months Ended October 31, 2018
Global ex-U.S. Real Estate Index Fund
Beginning
Account Value
4/30/2018
Ending
Account Value
10/31/2018
Expenses
Paid During
Period
Based on Actual Fund Return
Investor Shares $1,000.00 $879.14 $1.33
ETF Shares 1,000.00 880.18 0.47
Admiral Shares 1,000.00 880.02 0.47
Institutional Shares 1,000.00 880.18 0.47
Based on Hypothetical 5% Yearly Return
Investor Shares $1,000.00 $1,023.79 $1.43
ETF Shares 1,000.00 1,024.70 0.51
Admiral Shares 1,000.00 1,024.70 0.51
Institutional Shares 1,000.00 1,024.70 0.51
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios forthat period are 0.28% for Investor Shares, 0.10% for ETF Shares, 0.10% for Admiral Shares, and 0.10% for Institutional Shares. The dollaramounts 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-monthperiod (184/365).
Glossary
43
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups
and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given
index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12%
when the index rose or fell by 10%. For this report, beta is based on returns over the past 36
months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction
with its R-squared (see definition). The lower the R-squared, the less correlation there is between
the fund and the index, and the less reliable beta is as an indicator of volatility.
Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregate
market value (or of net asset value, for a fund). The yield is determined by dividing the amount of
the annual dividends by the aggregate value (or net asset value) at the end of the period. For a
fund, the dividend yield is based solely on stock holdings and does not include any income
produced by other investments. This yield may include some payments that represent a return of
capital, capital gains distributions, or both by the underlying stocks.
Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for
the stocks now in a fund.
Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any
holdings in short-term reserves are excluded.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s
average net assets. The expense ratio includes management and administrative expenses, but
does not include the transaction costs of buying and selling portfolio securities.
Fair-Value Pricing. Fair-value adjustments, which are required by the Securities and Exchange
Commission, address pricing discrepancies that may arise because of time-zone differences
among global stock markets. Foreign stocks may trade on exchanges that close many hours
before a fund’s closing share price is calculated in the United States, generally at 4 p.m., Eastern
time. In the hours between the foreign close and the U.S. close, the value of these foreign
securities may change—because of company-specific announcements or market-wide
developments, for example. Such price changes are not immediately reflected in international
index values. Fair-value pricing takes such changes into account in calculating the fund’s daily net
asset value, thus ensuring that the NAV doesn’t include “stale” prices. The result can be a
temporary divergence between the return of the fund and that of its benchmark index—a
difference that usually corrects itself when the foreign markets reopen.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first
invested in accordance with the fund’s investment objective. For funds with a subscription period,
the inception date is the day after that period ends. Investment performance is measured from
the inception date.
Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint
of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the
proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s
assets have market capitalizations above the median, and the rest are below it.
Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share.
For a fund, the weighted average price/book ratio of the stocks it holds.
44
Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past
year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market
expectations about corporate prospects; the higher the P/E, the greater the expectations for a
company’s future growth.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns
from the market in general, as measured by a given index. If a fund’s total returns were precisely
synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no
relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based
on returns over the past 36 months for both the fund and the index.
Return on Equity. The annual average rate of return generated by a company during the past five
years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a
fund, the weighted average return on equity for the companies whose stocks it holds.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities
that can be readily converted to cash.
Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur
higher transaction costs and may be more likely to distribute capital gains (which may be taxable
to investors). The turnover rate excludes in-kind transactions, which have minimal impact on
costs.
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your
best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also
serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard
funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation
with Vanguard or the funds they oversee, apart from the sizable personal investments they have
made as private individuals. The independent board members have distinguished backgrounds
in business, academia, and public service. Each of the trustees and executive officers oversees
211 Vanguard funds.
Information for each trustee and executive officer of the fund appears below. The mailing address
of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the
trustees is in the Statement of Additional Information, which can be obtained, without charge,
by contacting Vanguard at 800-662-7447, or online at vanguard.com.
Interested Trustees1
F. William McNabb III
Born in 1957. Trustee since July 2009. Principal
occupation(s) during the past five years and
other experience: chairman of the board
(January 2010–present) of Vanguard and of each
of the investment companies served by Vanguard,
trustee (2009–present) of each of the investment
companies served by Vanguard, and director
(2008–present) of Vanguard. Chief executive officer
and president (2008–2017) of Vanguard and each
of the investment companies served by Vanguard,
managing director (1995–2008) of Vanguard,
and director (1997–2018) of Vanguard Marketing
Corporation. Director (2018–present) of
UnitedHealth Group.
Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal
occupation(s) during the past five years and
other experience: chief executive officer
(January 2018–present) of Vanguard; chief executive
officer, president, and trustee (January 2018–present)
of each of the investment companies served by
Vanguard; president and director (2017–present) of
Vanguard; and president (February 2018–present) of
Vanguard Marketing Corporation. Chief investment
officer (2013–2017), managing director (2002–2017),
head of the Retail Investor Group (2006–2012), and
chief information officer (2001–2006) of Vanguard.
Chairman of the board (2011–2017) of the Children’s
Hospital of Philadelphia.
Independent Trustees
Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal
occupation(s) during the past five years and other
experience: executive chief staff and marketing officer
for North America and corporate vice president (retired
2008) of Xerox Corporation (document management
products and services). Former president of the
Worldwide Channels Group, Latin America, and
Worldwide Customer Service and executive chief
staff officer of Developing Markets of Xerox. Executive
in residence and 2009–2010 Distinguished Minett
Professor at the Rochester Institute of Technology.
Lead director of SPX FLOW, Inc. (multi-industry
manufacturing). Director of the University of Rochester
Medical Center, the Monroe Community College
Foundation, the United Way of Rochester, North
Carolina A&T University, and Roberts Wesleyan
College. Trustee of the University of Rochester.
Amy Gutmann
Born in 1949. Trustee since June 2006. Principal
occupation(s) during the past five years and other
experience: president (2004–present) of the University
of Pennsylvania. Christopher H. Browne Distinguished
Professor of Political Science, School of Arts and
Sciences, and professor of communication, Annenberg
School for Communication, with secondary faculty
appointments in the Department of Philosophy, School
of Arts and Sciences, and at the Graduate School of
Education, University of Pennsylvania. Trustee of the
National Constitution Center.
1 Mr. McNabb and Mr. Buckley are considered “interested persons,” as defined in the Investment Company Act of 1940, because they are officers of the Vanguard funds.
JoAnn Heffernan Heisen
Born in 1950. Trustee since July 1998. Principal
occupation(s) during the past five years and other
experience: corporate vice president of Johnson &
Johnson (pharmaceuticals/medical devices/consumer
products) and member of its executive committee
(1997–2008). Chief global diversity officer (retired
2008), vice president and chief information officer
(1997–2006), controller (1995–1997), treasurer
(1991–1995), and assistant treasurer (1989–1991)
of Johnson & Johnson. Director of Skytop Lodge
Corporation (hotels) and the Robert Wood Johnson
Foundation. Member of the advisory board of the
Institute for Women’s Leadership at Rutgers University.
F. Joseph Loughrey
Born in 1949. Trustee since October 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2009) and vice chairman of the board
(2008–2009) of Cummins Inc. (industrial machinery).
Chairman of the board of Hillenbrand, Inc. (specialized
consumer services), Oxfam America, and the Lumina
Foundation for Education. Director of the V Foundation
for Cancer Research. Member of the advisory council
for the College of Arts and Letters and chair of the
advisory board to the Kellogg Institute for International
Studies, both at the University of Notre Dame.
Mark Loughridge
Born in 1953. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: senior vice president and chief financial
officer (retired 2013) of IBM (information technology
services). Fiduciary member of IBM’s Retirement
Plan Committee (2004–2013), senior vice president
and general manager (2002–2004) of IBM Global
Financing, vice president and controller (1998–2002)
of IBM, and a variety of other prior management roles
at IBM. Member of the Council on Chicago Booth.
Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: chief investment officer (1989–present)
and vice president (1996–present) of the University
of Notre Dame. Assistant professor of finance at the
Mendoza College of Business, University of Notre
Dame, and member of the Notre Dame 403(b)
Investment Committee. Chairman of the board of
TIFF Advisory Services, Inc. Member of the board
of Catholic Investment Services, Inc. (investment
advisors), the board of advisors for Spruceview
Capital Partners, and the board of superintendence
of the Institute for the Works of Religion.
Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: president (2010–present) and chief
executive officer (2011–present) of The Guardian
Life Insurance Company of America. Chief operating
officer (2010–2011) and executive vice president
(2008–2010) of Individual Life and Disability of
The Guardian Life Insurance Company of America.
Member of the board of The Guardian Life Insurance
Company of America, the American Council of Life
Insurers, the Partnership for New York City (business
leadership), and the Committee Encouraging Corporate
Philanthropy. Trustee of the Economic Club of New
York and the Bruce Museum (arts and science).
Member of the Advisory Council for the Stanford
Graduate School of Business.
André F. Perold
Born in 1952. Trustee since December 2004. Principal
occupation(s) during the past five years and other
experience: George Gund Professor of Finance and
Banking, Emeritus at the Harvard Business School
(retired 2011). Chief investment officer and co-
managing partner of HighVista Strategies LLC
(private investment firm). Overseer of the Museum
of Fine Arts Boston.
Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: deputy secretary (2014–2017) of
the United States Department of the Treasury.
Governor (2010–2014) of the Federal Reserve Board.
Commissioner (2007–2010) of financial regulation
for the State of Maryland. Member of the board of
directors (2012–2014) of Neighborhood Reinvestment
Corporation. Director of i(x) Investments, LLC.
Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2010) of Corning Incorporated (communications
equipment) and director of Corning Incorporated
(2000–2010) and Dow Corning (2001–2010).
Director (2012) of SPX Corporation (multi-industry
manufacturing). Overseer of the Amos Tuck School
of Business Administration, Dartmouth College
(2001–2013). Chairman of the board of trustees of
Colby-Sawyer College. Member of the Board of
Hypertherm Inc. (industrial cutting systems, software,
and consumables).
Executive Officers
Glenn Booraem
Born in 1967. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Investment stewardship officer (2017–present),
treasurer (2015–2017), controller (2010–2015),
and assistant controller (2001–2010) of each of
the investment companies served by Vanguard.
Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past
five years and other experience: principal of Vanguard
and global head of Fund Administration at Vanguard.
Treasurer (2017–present) of each of the investment
companies served by Vanguard. Partner (2005–2017)
at KPMG LLP (audit, tax, and advisory services).
Brian Dvorak
Born in 1973. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Chief compliance officer (2017–present) of Vanguard
and each of the investment companies served by
Vanguard. Assistant vice president (2017–present) of
Vanguard Marketing Corporation. Vice president and
director of Enterprise Risk Management (2011–2013)
at Oppenheimer Funds, Inc.
Thomas J. Higgins
Born in 1957. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Chief financial officer (2008–present) and treasurer
(1998–2008) of each of the investment companies
served by Vanguard.
Peter Mahoney
Born in 1974. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Controller (2015–present) of each of the investment
companies served by Vanguard. Head of International
Fund Services (2008–2014) at Vanguard.
Anne E. Robinson
Born in 1970. Principal occupation(s) during the
past five years and other experience: general
counsel (2016–present) of Vanguard. Secretary
(2016–present) of Vanguard and of each of the
investment companies served by Vanguard.
Managing director (2016–present) of Vanguard.
Director and senior vice president (2016–2018)
of Vanguard Marketing Corporation. Managing
director and general counsel of Global Cards and
Consumer Services (2014–2016) at Citigroup.
Counsel (2003–2014) at American Express.
Michael Rollings
Born in 1963. Principal occupation(s) during the
past five years and other experience: finance
director (2017–present) and treasurer (2017) of each
of the investment companies served by Vanguard.
Managing director (2016–present) of Vanguard. Chief
financial officer (2016–present) of Vanguard. Director
(2016–present) of Vanguard Marketing Corporation.
Executive vice president and chief financial officer
(2006–2016) of MassMutual Financial Group.
Vanguard Senior Management Team
Joseph Brennan Chris D. McIsaac
Mortimer J. Buckley James M. Norris
Gregory Davis Thomas M. Rampulla
John James Karin A. Risi
Martha G. King Anne E. Robinson
John T. Marcante Michael Rollings
Chairman Emeritus and Senior Advisor
John J. Brennan
Chairman, 1996–2009
Chief Executive Officer and President, 1996–2008
Founder
John C. Bogle
Chairman and Chief Executive Officer, 1974–1996
P.O. Box 2600
Valley Forge, PA 19482-2600
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This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.
All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.
You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.
You can review information about your fund on theSEC’s website, and you can receive copies of thisinformation, for a fee, by sending a request via emailaddressed to publicinfo@sec.gov.
Source for Bloomberg Barclays indexes: BloombergIndex Services Limited. Copyright 2018, Bloomberg. Allrights reserved.
The index is a product of S&P Dow Jones Indices LLC(“SPDJI”), and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registeredtrademarks of Standard & Poor’s Financial Services LLC(“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); S&P®and S&P 500® are trademarks of S&P; and thesetrademarks have been licensed for use by SPDJI andsublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, soldor promoted by SPDJI, Dow Jones, S&P, or theirrespective affiliates and none of such parties make anyrepresentation regarding the advisability of investing insuch product(s) nor do they have any liability for anyerrors, omissions, or interruptions of the index.
© 2018 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.
Q7380 122018
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