N-CSR 1 starfundsfinal.htm VANGUARD STAR FUND starfundsfinal.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03919

Name of Registrant: Vanguard STAR Funds

Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482

Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482

Registrant’s telephone number, including area code: (610) 669-1000

Date of fiscal year end: October 31

Date of reporting period: November 1, 2011 – October 31, 2012

Item 1: Reports to Shareholders


 

 

Annual Report | October 31, 2012
Vanguard STAR® Fund

 



 

> Vanguard STAR Fund returned nearly 10% for the fiscal year ended October 31, 2012, ahead of its composite benchmark index and its composite peer group.

> All of STAR’s 11 underlying funds produced positive returns, with the funds focused on large-capitalization value stocks performing the best.

> For the ten years ended October 31, the STAR Fund had an average annual return of more than 7%, outperforming its comparative standards.

 

Contents  
Your Fund’s Total Returns. 1
Chairman’s Letter. 2
Fund Profile. 8
Performance Summary. 9
Financial Statements. 11
Your Fund’s After-Tax Returns. 19
About Your Fund’s Expenses. 20
Glossary. 22

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.)

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. 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.

About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.


 

Your Fund’s Total Returns

Fiscal Year Ended October 31, 2012  
 
  Total
  Returns
Vanguard STAR Fund 9.91%
STAR Composite Index 9.47
STAR Composite Average 8.34
For a benchmark description, see the Glossary.  
STAR Composite Average: Derived from data provided by Lipper Inc.  

 

Your Fund’s Performance at a Glance        
October 31, 2011, Through October 31, 2012        
      Distributions Per Share
  Starting Ending Income Capital
  Share Price Share Price Dividends Gains
Vanguard STAR Fund $19.25 $20.62 $0.466 $0.025

 

1


 


Chairman’s Letter

Dear Shareholder,

Vanguard STAR® Fund returned 9.91% for the 12 months ended October 31, 2012, a few steps ahead of its benchmark, the STAR Composite Index, a static mix of about 44% U.S. stocks, 19% international stocks, and 37% U.S. bonds. The fund’s return was also higher than a composite of the average returns of peer groups for its underlying funds, weighted to approximate STAR’s asset allocation.

The STAR Fund is a “fund of funds” that consists of 11 actively managed Vanguard funds: eight stock funds and three bond funds. All 11 funds posted positive returns for the period under review. The two funds focused on large-capitalization value stocks—Vanguard WindsorFund and WindsorII Fund—performed best. Vanguard GNMA Fund, which invests in government mortgage-backed securities, had the smallest return.

If you own the STAR Fund in a taxable account, you may wish to review the section on the fund’s after-tax returns that appears later in this report.

U.S. stocks led the advance for global equity markets
U.S. stocks returned about 14% for the 12 months ended October 31, putting domestic equities ahead of their international counterparts. Stocks in Europe and Asia, meanwhile, posted modestly positive results.

2


 

The advances came amid moves by U.S. and European central bankers to manage risks to the U.S. economy and the finances of European governments and banks. The president of the European Central Bank declared in July that policymakers would do whatever was needed to preserve the euro common currency.

Although investors’ worries have eased, Europe’s financial troubles are by no means resolved. Vanguard economists believe the most likely scenario is that the Eurozone will “muddle through” for several years, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.

Bonds continued their march, but leaner times may lie ahead
The broad U.S. taxable bond market returned about 5% for the 12 months. Municipal bonds delivered a robust performance, returning about 9%.

As bond prices rose, the yield of the 10-year U.S. Treasury note fell to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite

Market Barometer      
 
    Average Annual Total Returns
    Periods Ended October 31, 2012
  One Three Five
  Year Years Years
Stocks      
Russell 1000 Index (Large-caps) 14.97% 13.48% 0.53%
Russell 2000 Index (Small-caps) 12.08 14.82 1.19
Dow Jones U.S. Total Stock Market Index 14.45 13.62 0.75
MSCI All Country World Index ex USA (International) 3.98 3.74 -5.08
 
Bonds      
Barclays U.S. Aggregate Bond Index (Broad taxable market) 5.25% 6.08% 6.38%
Barclays Municipal Bond Index (Broad tax-exempt market) 9.03 6.84 6.02
Citigroup Three-Month U.S. Treasury Bill Index 0.06 0.08 0.56
 
CPI      
Consumer Price Index 2.16% 2.28% 2.06%

 

3


 

directions.) By the end of the period, the yield had climbed, but it still remained exceptionally low by historical standards.

Bondholders have enjoyed years of healthy returns. But as Tim Buckley, our incoming chief investment officer, has noted, investors shouldn’t be surprised if future results are much more modest. As yields remain low, the opportunity for similarly strong returns diminishes.

The Federal Reserve announced on September 13 that it would continue to hold its target for short-term interest rates between 0% and 0.25% at least through mid-2015. The exceptionally low rates, in place since late 2008, kept a tight lid on returns from money market funds and savings accounts.

U.S. value stocks helped drive the STAR Fund’s gains
At about 14% of assets as of the end of the fiscal year, the Windsor II Fund represented STAR’s largest holding. Windsor II also delivered the highest return for the 12 months, climbing about 17%. (Returns cited for STAR’s underlying funds are for Investor Shares.) STAR’s other large-cap value fund, the Windsor Fund, produced a return of more than 15%.

Financial stocks, a traditional focus for value-oriented investors, helped drive the performance of both Windsor and Windsor II. Bank stocks, in particular, posted outsized gains as investors seemed more confident that lenders

Expense Ratios    
Your Fund Compared With Its Peer Group    
  Acquired Fund Fees Peer Group
  and Expenses Average
STAR Fund 0.34% 1.16%

The acquired fund fees and expenses—drawn from the prospectus dated March 7, 2012—represent an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the STAR Fund invests. The STAR Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.34%.

The peer group is the STAR Composite Average, which is derived by weighting the average expense ratios of the following mutual fund groups: general equity funds (43.75%), fixed income funds (25%), 1–5 year investment-grade funds (12.5%), and international funds (18.75%). Average expense ratios for these groups are derived from data provided by Lipper Inc. and capture information through year-end 2011.

4


 

were getting past the lingering effects of mortgage defaults associated with the U.S. housing downturn.

STAR’s growth-oriented domestic stock funds also turned in solid gains, led by Vanguard U.S. Growth Fund, which returned about 12%. For the second straight fiscal year, the international equity funds—Vanguard International Growth Fund (6.77%) and the International Value Fund (6.00%)—were the weakest performers among STAR’s stock funds. Returns for both funds were restrained by investors’ concerns about Europe’s debt troubles and the slowdown in China’s economic growth. In other periods, however, the international stock funds have been among the top performers.

Indeed, the contrast between the performance of the domestic-focused stock funds and that of their international counterparts highlights one of the advantages of including both types of investments among STAR’s holdings: Combining investments that respond differently to global market conditions can lead to less volatility in the fund’s overall return.

Among STAR’s bond holdings, Vanguard Long-Term Investment-Grade Fund had the best result, returning more than 13%. The two other bond funds—Vanguard Short-Term Investment-Grade Fund and the GNMA Fund—had single-digit returns: about 4% and about 3%, respectively.

Total Returns  
Ten Years Ended October 31, 2012  
  Average
  Annual Return
STAR Fund 7.58%
STAR Composite Index 7.32
STAR Composite Average 6.25
For a benchmark description, see the Glossary.  
STAR Composite Average: Derived from data provided by Lipper Inc.  

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our 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.

5


 

STAR produced solid returns during a challenging decade
Vanguard STAR Fund holds roughly 60% of its assets in stock funds and 40% in bond funds managed by a range of distinguished advisors. This combination of balance, broad diversification, and advisor expertise has helped the STAR Fund successfully navigate a difficult ten-year period for the capital markets.

As you’ll recall, the decade that ended October 31 began with the aftermath of the bursting of the dot-com bubble and, more recently, was marked by the 2008–2009 financial crisis. Despite these challenges, the STAR Fund came through with a very respectable showing for this period; its average annual return of 7.58% slightly exceeded that of its composite benchmark index and topped that of its composite peer group by more than a percentage point.

How our core purpose informs our approach to active management
At Vanguard, we sum up our core purpose this way: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. When it comes to our actively managed funds, such as the 11 that make up the STAR Fund, this commitment to investors is reflected both in our rigorous process for selecting fund advisors and in our ongoing efforts to keep the costs of our funds low. We believe our approach gives investors the opportunity to outperform market indexes over the long term.

Underlying Funds: Allocations and Returns    
Twelve Months Ended October 31, 2012    
  Percentage of  
Vanguard Fund STAR Fund Assets Total Returns
Vanguard Windsor II Fund Investor Shares 13.9% 16.90%
Vanguard Long-Term Investment-Grade Investor    
Shares 12.9 13.36
Vanguard Short-Term Investment-Grade Fund    
Investor Shares 12.6 4.10
Vanguard GNMA Fund Investor Shares 12.5 3.29
Vanguard International Growth Fund Investor    
Shares 9.5 6.77
Vanguard International Value Fund 9.4 6.00
Vanguard Windsor Fund Investor Shares 7.7 15.56
Vanguard PRIMECAP Fund Investor Shares 6.0 10.32
Vanguard U.S. Growth Fund Investor Shares 5.9 11.74
Vanguard Morgan Growth Fund Investor Shares 5.9 8.86
Vanguard Explorer Fund Investor Shares 3.7 7.00
Combined 100.0% 9.91%

 

6


 

But make no mistake, outperformance is hard to come by. For one thing, competition among investors is fierce. Charles Ellis, author of one of my favorite books on investing, Winning the Loser’s Game, points out that the competition is not between the skilled and the inept. It’s between the skilled and the skilled. “It’s like the Williams sisters playing tennis against each other,” as he put it in a recent Vanguard webcast.

Because we recognize the challenges inherent in active management, Vanguard has offered, and advocated for, index funds for more than 35 years. By seeking to track—rather than beat—market returns, index funds provide several benefits: low costs, diversification across a market, and limited deviation from the performance of market benchmarks.

Still, the case for indexing doesn’t preclude the potential for skilled, seasoned managers to deliver outperformance. And the chances for success can increase if those managers deliver their services at low cost, allowing investors to keep more of their returns.

As always, thank you for entrusting your assets to Vanguard.

Sincerely,


F. William McNabb III
Chairman and Chief Executive Officer
November 16, 2012

7


 

STAR Fund

Fund Profile
As of October 31, 2012

Total Fund Characteristics  
Ticker Symbol VGSTX
Acquired Fund Fees and Expenses1 0.34%
30-Day SEC Yield 2.10%
Fund data reflect holdings of underlying funds.  

 

Allocation to Underlying Vanguard Funds  
Vanguard Windsor II Fund Investor Shares 13.9%
Vanguard Long-Term Investment-Grade  
Fund Investor Shares 12.9
Vanguard Short-Term Investment-Grade  
Fund Investor Shares 12.6
Vanguard GNMA Fund Investor Shares 12.5
Vanguard International Growth Fund  
Investor Shares 9.5
Vanguard International Value Fund 9.4
Vanguard Windsor Fund Investor Shares 7.7
Vanguard PRIMECAP Fund Investor  
Shares 6.0
Vanguard U.S. Growth Fund Investor  
Shares 5.9
Vanguard Morgan Growth Fund Investor  
Shares 5.9
Vanguard Explorer Fund Investor Shares 3.7

 

Total Fund Volatility Measures  
    DJ
  STAR U.S. Total
  Composite Market
  Index Index
R-Squared 1.00 0.96
Beta 1.04 0.65

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Fund Asset Allocation


1 This figure—drawn from the prospectus dated March 7, 2012—represents an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the STAR Fund invests. The STAR Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.34%.

8


 

STAR Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  STAR Fund 9.91% 2.52% 7.58% $20,759
••••••• STAR Composite Index 9.47 2.70 7.32 20,261
– – – – STAR Composite Average 8.34 1.06 6.25 18,331
  Dow Jones U.S. Total Stock Market        
  Index 14.45 0.75 7.78 21,163
For a benchmark description, see the Glossary.        
STAR Composite Average: Derived from data provided by Lipper Inc.        

 

See Financial Highlights for dividend and capital gains information.

9


 

STAR Fund

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


Average Annual Total Returns: Periods Ended September 30, 2012
This table presents returns through the latest calendar quarterrather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.

            Ten Years
  InceptionDate One Year  Five Years Income Capital Total
STAR Fund 3/29/1985 18.75% 2.96% 2.85% 5.12% 7.97%

 

10


 

STAR Fund

Financial Statements

Statement of Net Assets
As of October 31, 2012

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. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market
    Value
  Shares ($000)
Investment Companies (100.1%)    
U.S. Stock Funds (43.2%)    
Vanguard Windsor II Fund Investor Shares 70,913,543 2,079,894
Vanguard Windsor Fund Investor Shares 77,303,138 1,133,264
Vanguard PRIMECAP Fund Investor Shares 12,911,689 887,550
Vanguard U.S. Growth Fund Investor Shares 42,024,433 867,384
Vanguard Morgan Growth Fund Investor Shares 44,297,845 866,466
Vanguard Explorer Fund Investor Shares 6,948,519 542,193
    6,376,751
International Stock Funds (18.9%)    
Vanguard International Growth Fund Investor Shares 75,375,261 1,396,704
Vanguard International Value Fund 46,491,184 1,384,507
    2,781,211
Bond Funds (25.4%)    
Vanguard Long-Term Investment-Grade Fund Investor Shares 170,902,209 1,903,851
Vanguard GNMA Fund Investor Shares 167,052,904 1,842,593
    3,746,444
Short-Term Bond Fund (12.6%)    
Vanguard Short-Term Investment-Grade Fund Investor Shares 170,888,828 1,859,270
Total Investment Companies (Cost $11,011,398)   14,763,676
Temporary Cash Investment (0.0%)    
Money Market Fund (0.0%)    
1 Vanguard Market Liquidity Fund, 0.167% (Cost $6,401) 6,401,013 6,401
Total Investments (100.1%) (Cost $11,017,799)   14,770,077
Other Assets and Liabilities (-0.1%)    
Other Assets   24,882
Liabilities   (36,456)
    (11,574)
Net Assets (100%)    
Applicable to 715,900,153 outstanding $.001 par value shares of    
beneficial interest (unlimited authorization)   14,758,503
Net Asset Value Per Share   $20.62

 

11


 

STAR Fund

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 11,158,868
Undistributed Net Investment Income 58,179
Accumulated Net Realized Losses (210,822)
Unrealized Appreciation (Depreciation) 3,752,278
Net Assets 14,758,503

 

See Note A in Notes to Financial Statements.
1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
See accompanying Notes, which are an integral part of the Financial Statements.

12


 

STAR Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Income Distributions Received 325,689
Net Investment Income—Note B 325,689
Realized Net Gain (Loss)  
Capital Gain Distributions Received 69,784
Investment Securities Sold 91,759
Realized Net Gain (Loss) 161,543
Change in Unrealized Appreciation (Depreciation) of Investment Securities 852,820
Net Increase (Decrease) in Net Assets Resulting from Operations 1,340,052

 

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

13


 

STAR Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 325,689 321,377
Realized Net Gain (Loss) 161,543 101,865
Change in Unrealized Appreciation (Depreciation) 852,820 286,130
Net Increase (Decrease) in Net Assets Resulting from Operations 1,340,052 709,372
Distributions    
Net Investment Income (333,955) (323,440)
Realized Capital Gain1 (17,863) (34,477)
Total Distributions (351,818) (357,917)
Capital Share Transactions    
Issued 995,655 1,190,122
Issued in Lieu of Cash Distributions 338,746 344,681
Redeemed (1,447,256) (1,523,745)
Net Increase (Decrease) from Capital Share Transactions (112,855) 11,058
Total Increase (Decrease) 875,379 362,513
Net Assets    
Beginning of Period 13,883,124 13,520,611
End of Period2 14,758,503 13,883,124

1 Includes fiscal 2012 and 2011 short-term gain distributions totaling $17,863,000 and $34,477,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed net investment income of $58,179,000 and $66,445,000.

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

14


 

STAR Fund

Financial Highlights

For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $19.25 $18.76 $16.96 $15.33 $22.80
Investment Operations          
Net Investment Income .455 .445 .429 .516 .600
Capital Gain Distributions Received .097 .073 .024 .142 .967
Net Realized and Unrealized Gain (Loss)          
on Investments 1.309 .468 1.788 2.150 (7.578)
Total from Investment Operations 1.861 .986 2.241 2.808 (6.011)
Distributions          
Dividends from Net Investment Income (.466) (.448) (.430) (.552) (.634)
Distributions from Realized Capital Gains (.025) (.048) (.011) (.626) (.825)
Total Distributions (.491) (.496) (.441) (1.178) (1.459)
Net Asset Value, End of Period $20.62 $19.25 $18.76 $16.96 $15.33
 
Total Return1 9.91% 5.27% 13.42% 19.74% -27.94%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $14,759 $13,883 $13,521 $12,076 $10,428
Ratio of Total Expenses to Average Net Assets
Acquired Fund Fees and Expenses 0.34% 0.34% 0.34% 0.37% 0.32%
Ratio of Net Investment Income to          
Average Net Assets 2.28% 2.29% 2.40% 3.35% 3.00%
Portfolio Turnover Rate 12% 24% 22% 21% 24%

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

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

15


 

STAR Fund

Notes to Financial Statements

Vanguard STAR Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment strategy by investing in selected Vanguard funds. The fund invests 60% to 70% of its net assets in stock funds (predominantly large-capitalization U.S. stock funds), 20% to 30% in intermediate- to long-term bond funds, and 10% to 20% in a short-term bond fund.

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

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

2. 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, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. Under a service agreement, The Vanguard Group furnishes investment advisory, corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2012, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

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).

At October 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

16


 

STAR Fund

For tax purposes, at October 31, 2012, the fund had $61,956,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $98,093,000 to offset taxable capital gains realized during the year ended October 31, 2012. At October 31, 2012, the fund had available capital losses totaling $214,599,000 to offset future net capital gains of $87,723,000 through October 31, 2017, and $126,876,000 through October 31, 2018. Short-term capital gain distributions received are treated as ordinary income for tax purposes, and cannot be offset by capital losses. Capital gain distributions paid during the year ended October 31, 2012, were from short-term gain distributions received from Vanguard GNMA Fund and Vanguard PRIMECAP Fund.

At October 31, 2012, the cost of investment securities for tax purposes was $11,017,799,000. Net unrealized appreciation of investment securities for tax purposes was $3,752,278,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.

E. During the year ended October 31, 2012, the fund purchased $1,772,736,000 of investment securities and sold $1,834,900,000 of investment securities, other than temporary cash investments.

F. Capital shares issued and redeemed were:

  Year Ended October 31,
  2012 2011
  Shares Shares
  (000) (000)
Issued 50,059 61,659
Issued in Lieu of Cash Distributions 17,868 17,898
Redeemed (73,097) (79,012)
Net Increase (Decrease) in Shares Outstanding (5,170) 545

 

G. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

17


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard STAR Fund:

In our opinion, the accompanying statement of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard STAR Fund (constituting a separate portfolio of Vanguard STAR Funds, hereafter referred to as the “Fund”) at October 31, 2012, 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 then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Fund’s manage-ment; our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2012 by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 14, 2012

 

 

Special 2012 tax information (unaudited) for Vanguard STAR Fund

 

This information for the fiscal year ended October 31, 2012, is included pursuant to provisions of the Internal Revenue Code.

The fund distributed $129,040,000 of qualified dividend income to shareholders during the fiscal year.

For corporate shareholders, 23.9% of investment income (dividend income plus short-term gains, if any) qualifies for the dividends-received deduction.

18


 

Your Fund’s After-Tax Returns

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 2012. (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.)

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: STAR Fund      
Periods Ended October 31, 2012      
  One Five Ten
  Year Years Years
Returns Before Taxes 9.91% 2.52% 7.58%
Returns After Taxes on Distributions 9.13 1.41 6.54
Returns After Taxes on Distributions and Sale of Fund Shares 6.59 1.62 6.12

 

19


 

About Your Fund’s Expenses

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

A typical fund’s expenses are expressed as a percentage of its average net assets. The STAR Fund has no direct expenses, but bears its proportionate share of the costs for the underlying funds in which it invests. These indirect expenses make up the acquired fund fees and expenses, also expressed as a percentage of average net assets.

The following examples are intended to help you understand the ongoing cost (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 costs were calculated using the acquired fund fees and expenses for the STAR Fund.

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

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

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

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

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

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

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

20


 

Six Months Ended October 31, 2012      
  Beginning Ending Expenses
  Account Value Account Value Paid During
STAR Fund 4/30/2012 10/31/2012 Period
Based on Actual Fund Return $1,000.00 $1,023.06 $1.73
Based on Hypothetical 5% Yearly Return 1,000.00 1,023.49 1.73

The calculations are based on acquired fund fees and expenses charged by the underlying mutual funds in which the STAR Fund invests. The STAR Fund’s annualized expense figure for the period is 0.34%. The dollar amounts shown as ”Expenses Paid” are equal to the annualized average weighted expense ratio for the underlying funds multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

21


 

Glossary

30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S. Securities and Exchange Commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (for bonds), its actual income (for asset-backed securities), or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.

Acquired Fund Fees and Expenses. Funds that invest in other Vanguard funds incur no direct expenses, but they do bear proportionate shares of the operating, administrative, and advisory expenses of the underlying funds, and they must pay any fees charged by those funds. The figure for acquired fund fees and expenses represents a weighted average of these underlying costs. Acquired is a term that the Securities and Exchange Commission applies to any mutual fund whose shares are owned by another fund.

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.

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.

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.

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.

22


 

Benchmark Information

STAR Composite Average: 62.5% general equity funds average, 25% fixed income funds average, and 12.5% money market funds average through December 31, 2002; 50% general equity funds average, 25% fixed income funds average, 12.5% 1–5 year investment-grade funds average, and 12.5% international funds average through September 30, 2010; and 43.75% general equity funds average, 25% fixed income funds average, 12.5% 1–5 year investment-grade funds average, and 18.75% international funds average thereafter. Derived from data provided by Lipper Inc.

STAR Composite Index: 62.5% Dow Jones U.S. Total Stock Market Index, 25% Barclays U.S. Aggregate Bond Index, and 12.5% Citigroup Three-Month U.S. Treasury Bill Index through December 31, 2002; 50% Dow Jones U.S. Total Stock Market Index, 25% Barclays U.S. Aggregate Bond Index, 12.5% Barclays U.S. 1–5 Year Credit Bond Index, and 12.5% MSCI EAFE Index through April 22, 2005; 50% MSCI US Broad Market Index, 25% Barclays U.S. Aggregate Bond Index, 12.5% Barclays U.S. 1–5 Year Credit Bond Index, and 12.5% MSCI EAFE Index through September 30, 2010; and 43.75% MSCI US Broad Market Index, 25% Barclays U.S. Aggregate Bond Index, 12.5% Barclays U.S. 1–5 Year Credit Bond Index, and 18.75% MSCI All Country World Index ex USA thereafter. MSCI international benchmark returns are adjusted for withholding taxes.

23


 

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 180 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. 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.

InterestedTrustee1 and Delphi Automotive LLP (automotive components);
  Senior Advisor at New Mountain Capital; Trustee of
F. William McNabb III The Conference Board.
Born 1957. Trustee Since July 2009. Chairman of the  
Board. Principal Occupation(s) During the Past Five Amy Gutmann
Years: Chairman of the Board of The Vanguard Group, Born 1949. Trustee Since June 2006. Principal
Inc., and of each of the investment companies served Occupation(s) During the Past Five Years: President
by The Vanguard Group, since January 2010; Director of the University of Pennsylvania; Christopher H.
of The Vanguard Group since 2008; Chief Executive Browne Distinguished Professor of Political Science
Officer and President of The Vanguard Group and of in the School of Arts and Sciences with secondary
each of the investment companies served by The appointments at the Annenberg School for
Vanguard Group since 2008; Director of Vanguard Communication and the Graduate School of Education
Marketing Corporation; Managing Director of The of the University of Pennsylvania; Member of the
Vanguard Group (1995–2008). National Commission on the Humanities and Social
  Sciences; Trustee of Carnegie Corporation of New
IndependentTrustees York and of the National Constitution Center; Chair
of the U.S. Presidential Commission for the Study
Emerson U. Fullwood of Bioethical Issues.
Born 1948. Trustee Since January 2008. Principal  
Occupation(s) During the Past Five Years: Executive JoAnn Heffernan Heisen
Chief Staff and Marketing Officer for North America Born 1950. Trustee Since July 1998. Principal
and Corporate Vice President (retired 2008) of Xerox Occupation(s) During the Past Five Years: Corporate
Corporation (document management products and Vice President and Chief Global Diversity Officer
services); Executive in Residence and 2010 (retired 2008) and Member of the Executive
Distinguished Minett Professor at the Rochester Committee (1997–2008) of Johnson & Johnson
Institute of Technology; Director of SPX Corporation (pharmaceuticals/medical devices/consumer
(multi-industry manufacturing), the United Way of products); Director of Skytop Lodge Corporation
Rochester, Amerigroup Corporation (managed health (hotels), the University Medical Center at Princeton,
care), the University of Rochester Medical Center, the Robert Wood Johnson Foundation, and the Center
Monroe Community College Foundation, and North for Talent Innovation; Member of the Advisory Board
Carolina A&T University. of the Maxwell School of Citizenship and Public Affairs
  at Syracuse University.
 
Rajiv L. Gupta 
Born 1945. Trustee Since December 2001. 2 F. Joseph Loughrey
Principal Occupation(s) During the Past Five Years: Born 1949. Trustee Since October 2009. Principal
Chairman and Chief Executive Officer (retired 2009) Occupation(s) During the Past Five Years: President
and President (2006–2008) of Rohm and Haas Co. and Chief Operating Officer (retired 2009) of Cummins
(chemicals); Director of Tyco International, Ltd. Inc. (industrial machinery); Director of SKF AB
(diversified manufacturing and services), Hewlett- (industrial machinery), Hillenbrand, Inc. (specialized
Packard Co. (electronic computer manufacturing), consumer services), the Lumina Foundation for

 


 

Education, and Oxfam America; Chairman of the Executive Officers  
Advisory Council for the College of Arts and Letters    
and Member of the Advisory Board to the Kellogg Glenn Booraem  
Institute for International Studies at the University Born 1967. Controller Since July 2010. Principal
of Notre Dame. Occupation(s) During the Past Five Years: Principal
  of The Vanguard Group, Inc.; Controller of each of
Mark Loughridge the investment companies served by The Vanguard
Born 1953. Trustee Since March 2012. Principal Group; Assistant Controller of each of the investment
Occupation(s) During the Past Five Years: Senior Vice companies served by The Vanguard Group (2001–2010).
President and Chief Financial Officer at IBM (information    
technology services); Fiduciary Member of IBM’s Thomas J. Higgins  
Retirement Plan Committee. Born 1957. Chief Financial Officer Since September
  2008. Principal Occupation(s) During the Past Five
Scott C. Malpass Years: Principal of The Vanguard Group, Inc.; Chief
Born 1962. Trustee Since March 2012. Principal Financial Officer of each of the investment companies
Occupation(s) During the Past Five Years: Chief served by The Vanguard Group; Treasurer of each of
Investment Officer and Vice President at the University the investment companies served by The Vanguard
of Notre Dame; Assistant Professor of Finance at the Group (1998–2008).  
Mendoza College of Business at Notre Dame; Member    
of the Notre Dame 403(b) Investment Committee; Kathryn J. Hyatt  
Director of TIFF Advisory Services, Inc. (investment Born 1955. Treasurer Since November 2008. Principal
advisor); Member of the Investment Advisory Occupation(s) During the Past Five Years: Principal of
Committees of the Financial Industry Regulatory The Vanguard Group, Inc.; Treasurer of each of the
Authority (FINRA) and of Major League Baseball. investment companies served by The Vanguard
  Group; Assistant Treasurer of each of the investment
André F. Perold companies served by The Vanguard Group (1988–2008).
Born 1952. Trustee Since December 2004. Principal    
Occupation(s) During the Past Five Years: George Heidi Stam  
Gund Professor of Finance and Banking at the Harvard Born 1956. Secretary Since July 2005. Principal
Business School (retired 2011); Chief Investment Occupation(s) During the Past Five Years: Managing
Officer and Managing Partner of HighVista Strategies Director of The Vanguard Group, Inc.; General Counsel
LLC (private investment firm); Director of Rand of The Vanguard Group; Secretary of The Vanguard
Merchant Bank; Overseer of the Museum of Fine Group and of each of the investment companies
Arts Boston. served by The Vanguard Group; Director and Senior
  Vice President of Vanguard Marketing Corporation.
Alfred M. Rankin, Jr.    
Born 1941. Trustee Since January 1993. Principal Vanguard Senior ManagementTeam
Occupation(s) During the Past Five Years: Chairman,    
President, and Chief Executive Officer of NACCO Mortimer J. Buckley Michael S. Miller
Industries, Inc. (forklift trucks/housewares/lignite); Kathleen C. Gubanich James M. Norris
Director of Goodrich Corporation (industrial products/ Paul A. Heller Glenn W. Reed
aircraft systems and services) and the National Martha G. King George U. Sauter
Association of Manufacturers; Chairman of the Board Chris D. McIsaac  
of the Federal Reserve Bank of Cleveland and of    
University Hospitals of Cleveland; Advisory Chairman    
of the Board of The Cleveland Museum of Art.  Chairman Emeritus and Senior Advisor
   
  John J. Brennan  
Peter F. Volanakis Chairman, 1996–2009   
Born 1955. Trustee Since July 2009. Principal Chief Executive Officer and President, 1996–2008
Occupation(s) During the Past Five Years: President    
and Chief Operating Officer (retired 2010) of Corning    
Incorporated (communications equipment); Director Founder  
of SPX Corporation (multi-industry manufacturing);    
Overseer of the Amos Tuck School of Business John C. Bogle   
Administration at Dartmouth College; Advisor to the Chairman and Chief Executive Officer, 1974–1996
Norris Cotton Cancer Center.    

 

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.


 
 
 
P.O. Box 2600
Valley Forge, PA 19482-2600

 

Connect with Vanguard® > vanguard.com

 

Fund Information > 800-662-7447  
Direct Investor Account Services > 800-662-2739  
Institutional Investor Services > 800-523-1036  
Text Telephone for People  
With Hearing Impairment > 800-749-7273  
 
This material may be used in conjunction  
with the offering of shares of any Vanguard  
fund only if preceded or accompanied by  
the fund’s current prospectus.  
 
All comparative mutual fund data are from Lipper Inc. or  
Morningstar, Inc., unless otherwise noted.  
 
You can obtain a free copy of Vanguard’s proxy voting  
guidelines by visiting vanguard.com/proxyreporting or by  
calling Vanguard at 800-662-2739. The guidelines are  
also available from the SEC’s website, sec.gov. In  
addition, you may obtain a free report on how your fund  
voted the proxies for securities it owned during the 12  
months ended June 30. To get the report, visit either  
vanguard.com/proxyreporting or sec.gov.  
 
You can review and copy information about your fund at  
the SEC’s Public Reference Room in Washington, D.C. To  
find out more about this public service, call the SEC at  
202-551-8090. Information about your fund is also  
available on the SEC’s website, and you can receive  
copies of this information, for a fee, by sending a  
request in either of two ways: via e-mail addressed to  
publicinfo@sec.gov or via regular mail addressed to the  
Public Reference Section, Securities and Exchange  
Commission, Washington, DC 20549-1520.  
  © 2012 The Vanguard Group, Inc.
  All rights reserved.
  Vanguard Marketing Corporation, Distributor.
 
  Q560 122012

 


 

 

Annual Report | October 31, 2012
Vanguard LifeStrategy® Funds
 

 

Vanguard LifeStrategy Income Fund
Vanguard LifeStrategy Conservative Growth Fund
Vanguard LifeStrategy Moderate Growth Fund
Vanguard LifeStrategy Growth Fund

 



 

> For the fiscal year ended October 31, 2012, returns for the Vanguard LifeStrategy Funds ranged from about 6% for the most conservative fund to more than 10% for the fund with the most aggressive asset allocation.

> Despite stumbling in the fiscal year’s final month, the broad U.S. stock market returned about 14%, while international stocks rose nearly 4%. The broad U.S. bond market returned about 5%.

> The performance of each LifeStrategy Fund was in line with that of its benchmark index.

 

Contents  
Your Fund’s Total Returns. 1
Chairman’s Letter. 2
LifeStrategy Income Fund. 9
LifeStrategy Conservative Growth Fund. 18
LifeStrategy Moderate Growth Fund. 27
LifeStrategy Growth Fund. 36
Your Fund’s After-Tax Returns. 47
About Your Fund’s Expenses. 49
Glossary. 51

 

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. 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.

About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.


 

Your Fund’s Total Returns

Fiscal Year Ended October 31, 2012  
  Total
  Returns
Vanguard LifeStrategy Income Fund 6.41%
Income Composite Index 6.65
Income Composite Average 7.78
Vanguard LifeStrategy Conservative Growth Fund 7.88%
Conservative Growth Composite Index 7.95
Conservative Growth Composite Average 8.34
Vanguard LifeStrategy Moderate Growth Fund 9.25%
Moderate Growth Composite Index 9.45
Moderate Growth Composite Average 8.70
Vanguard LifeStrategy Growth Fund 10.56%
Growth Composite Index 10.60
Growth Composite Average 9.14
For a benchmark description, see the Glossary.  
Composite Averages: Derived from data provided by Lipper Inc.  

 

1


 


Chairman’s Letter

Dear Shareholder,

While questions dogged the financial markets through most of the fiscal year ended October 31, U.S. and international stocks as well as bonds finished the period with gains that ranged from satisfactory to solid. The well-diversified Vanguard LifeStrategy Funds performed in line with their benchmark indexes, with returns ranging from more than 10% for the LifeStrategy Growth Fund to about 6% for the LifeStrategy Income Fund.

The funds with larger stock allocations did best during the 2012 fiscal year. Although investing in stocks can often result in more volatility, this time around it turned out to be an advantage. Still, the fixed income portion of the funds’ portfolios also turned in respectable returns.

Please note that on October 2 we announced that 22 Vanguard index funds will be moving to new target benchmarks. Among the funds making the change are two underlying holdings of the LifeStrategy Funds: Vanguard Total Stock Market Index Fund, which will have the CRSP US Total Market Index as its new target, and Vanguard Total International Stock Index Fund, which is moving to the FTSE Global All Cap ex US Index. The transition, which will take place over several months, is expected to benefit shareholders through significant long-term savings on licensing fees paid to index providers.

2


 

U.S. stocks led the advance for global equity markets
U.S. stocks returned about 14% for the 12 months ended October 31, putting domestic equities ahead of their international counterparts. Stocks in Europe and Asia, meanwhile, posted modestly positive results.

The advances came amid moves by U.S. and European central bankers to manage risks to the U.S. economy and the finances of European governments and banks. The president of the European Central Bank declared in July that policymakers would do whatever was needed to preserve the euro common currency.

Although investors’ worries have eased, Europe’s financial troubles are by no means resolved. Vanguard economists believe the most likely scenario is that the Eurozone will “muddle through” for several years, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.

Bonds continued their march, but leaner times may lie ahead
The broad U.S. taxable bond market returned about 5% for the 12 months. Municipal bonds delivered a robust performance, returning 9%.

Market Barometer      
 
    Average Annual Total Returns
    Periods Ended October 31, 2012
  One Three Five
  Year Years Years
Stocks      
Russell 1000 Index (Large-caps) 14.97% 13.48% 0.53%
Russell 2000 Index (Small-caps) 12.08 14.82 1.19
Dow Jones U.S. Total Stock Market Index 14.45 13.62 0.75
MSCI All Country World Index ex USA (International) 3.98 3.74 -5.08
 
Bonds      
Barclays U.S. Aggregate Bond Index (Broad taxable market) 5.25% 6.08% 6.38%
Barclays Municipal Bond Index (Broad tax-exempt market) 9.03 6.84 6.02
Citigroup Three-Month U.S. Treasury Bill Index 0.06 0.08 0.56
 
CPI      
Consumer Price Index 2.16% 2.28% 2.06%

 

3


 

As bond prices rose, the yield of the 10-year U.S. Treasury note fell to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite directions.) By the end of the period, the yield had climbed, but it still remained exceptionally low by historical standards.

Bondholders have enjoyed years of healthy returns. But as Tim Buckley, our incoming chief investment officer, has noted, investors shouldn’t be surprised if future results are much more modest. As yields remain low, the opportunity for similarly strong returns diminishes.

The Federal Reserve announced on September 13 that it would continue to hold its target for short-term interest rates between 0% and 0.25% at least through mid-2015. The exceptionally low rates, in place since late 2008, kept a tight lid on returns from money market funds and savings accounts.

The LifeStrategy Funds’ returns reflected a rising stock market
The four LifeStrategy portfolios are “funds of funds” intended for long-term investors seeking broad balance and diversification within a single vehicle. Each holds three broad-market index funds, which respectively invest in U.S. stocks, international stocks, and U.S. bonds.

Through their different allocations to these markets, the LifeStrategy Funds offer varying degrees of risk. The LifeStrategy Growth Fund maintains an allocation of about 80% stocks and 20%

Expense Ratios    
Your Fund Compared With Its Peer Group    
  Acquired Fund Fees Peer Group
  and Expenses Average
LifeStrategy Income Fund 0.13% 1.02%
LifeStrategy Conservative Growth Fund 0.15 1.09
LifeStrategy Moderate Growth Fund 0.16 1.17
LifeStrategy Growth Fund 0.17 1.24

The fund expense figures shown—drawn from the prospectus dated February 27, 2012—represent an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the LifeStrategy Funds invest. The LifeStrategy Funds do not charge any expenses or fees of their own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.14% for the LifeStrategy Income Fund, 0.15% for the LifeStrategy Conservative Growth Fund, 0.16% for the LifeStrategy Moderate Growth Fund, and 0.17% for the LifeStrategy Growth Fund.

Peer groups are the composites listed on page 1. Their expense figures are derived by applying the appropriate allocations to average expense ratios of these mutual fund peer groups: fixed income funds, general equity funds, international funds, and money market funds. Average expense ratios for these groups are derived from data provided by Lipper Inc. and capture information through year-end 2011.

4


 

Total Returns  
Ten Years Ended October 31, 2012  
  Average
  Annual Return
LifeStrategy Income Fund 5.49%
Income Composite Index 5.69
Income Composite Average 5.06
Income Composite Average: Derived from data provided by Lipper Inc.  
 
 
LifeStrategy Conservative Growth Fund 6.12%
Conservative Growth Composite Index 6.25
Conservative Growth Composite Average 5.53
Conservative Growth Composite Average: Derived from data provided by Lipper Inc.  
 
 
LifeStrategy Moderate Growth Fund 6.83%
Moderate Growth Composite Index 7.07
Moderate Growth Composite Average 6.49
Moderate Growth Composite Average: Derived from data provided by Lipper Inc.  
 
 
LifeStrategy Growth Fund 7.16%
Growth Composite Index 7.41
Growth Composite Average 6.77
Growth Composite Average: Derived from data provided by Lipper Inc.  

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our 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.

5


 

bonds; the Moderate Growth Fund, about 60% stocks and 40% bonds; the Conservative Growth Fund, about 40% stocks and 60% bonds; and the Income Fund, about 20% stocks and 80% bonds.

For the 12 months through October 31, returns for Investor Shares of the underlying funds were:

• Total Stock Market Index Fund: 14.62%.

• Total International Stock Index Fund: 5.32%.

• Total Bond Market II Index Fund: 4.85%.

As you would expect, the LifeStrategy Funds’ returns directly reflected their allocations to these holdings. Thus, the LifeStrategy Growth Fund, which has the greatest exposure to U.S. and international stocks, returned 10.56% and was the top performer in the series. The LifeStrategy Income Fund, with its heavy weighting in bonds, returned 6.41%, while the Moderate Growth Fund and Conservative Growth Fund fell between, returning 9.25% and 7.88%, respectively.

As I wrote earlier, stocks significantly outperformed bonds during the period as investors became more optimistic about the markets and more comfortable accepting risk. In the United States, the financial, health care, consumer discretionary, consumer staples, and telecommunication services sectors were top performers as the economy continued to slowly expand and corporations posted respectable earnings.

The picture wasn’t quite as rosy on the international front. Slower growth evident in the developed markets of the Pacific region and in emerging markets, along with the previously mentioned debt situation in Europe, restrained returns. Bond returns were varied but reasonable overall, with the Federal Reserve’s bond-buying program boosting long-term issues the most.

The funds’ new structure caps a strong long-term record
The LifeStrategy Funds operated for most of the fiscal year as all-index portfolios, a change from their earlier history in which the funds included an actively managed component. As I noted in our report to shareholders last year, we believe the all-index approach provides you with several benefits: simpler portfolio design, lower costs, more transparency, and a more predictable risk profile.

The funds have a history of solid performance. Over the past ten years, their annualized returns ranged from 5.49% for the LifeStrategy Income Fund to 7.16% for the LifeStrategy Growth Fund. As you can see in the accompanying table, each of the funds performed in line with its benchmark index and surpassed the average return of its composite peer group.

Under their new structure, the funds benefit fully from the skills and experience of Vanguard’s Equity Investment and Fixed Income Groups, which bring sophisticated indexing methods to the task of tracking the target benchmarks of the underlying

6


 

funds. In addition, the low costs of the underlying funds allow investors to keep more of their returns. (The LifeStrategy Funds themselves do not charge any management expenses.)

The rise of index funds;
the merits of active management
Today, index funds enjoy a degree of acceptance that was unimaginable some 35 years ago, when we introduced the first index mutual fund for individual investors. In the past five years, according to research company Strategic Insight, stock fund investors have directed just about all of their net new investments into index funds, both conventional shares and ETFs.

The benefits of index funds are crystal-clear: low costs, diversification across a market or market segment, and limited deviation from the returns of benchmark indexes. The Vanguard LifeStrategy Funds offer these benefits through a fund-of-funds approach that allows investors to choose a balanced allocation suited to their goals, time horizon, and risk tolerance.

What about actively managed funds? Although Vanguard is prominent as an indexing leader, we also offer actively managed funds that give investors the chance to outperform market indexes. Make no mistake: Outperformance is hard to come by. Nevertheless, we believe we can enhance investors’ chances of success by searching the globe for best-in-class investment managers and offering their services to our clients at a low cost.

Whether or not your portfolio includes actively managed funds in addition to your LifeStrategy Fund, adhering to a few basic tenets can put you in a position to meet your long-term financial goals. Stick with the kind of balanced, diversified investing you’re already doing through your fund; save more than you think you’ll need; keep an eye on costs; and last, but never least, have a plan and stay with it.

Thank you for entrusting your assets to Vanguard.

Sincerely,


F. William McNabb III
Chairman and Chief Executive Officer
November 16, 2012

7


 

Your Fund’s Performance at a Glance        
October 31, 2011, Through October 31, 2012        
      Distributions Per Share
  Starting Ending Income Capital
  Share Price Share Price Dividends Gains
Vanguard LifeStrategy Income Fund $14.28 $14.73 $0.354 $0.094
Vanguard LifeStrategy Conservative Growth        
Fund $16.40 $17.21 $0.420 $0.042
Vanguard LifeStrategy Moderate Growth Fund $19.54 $20.84 $0.439 $0.030
Vanguard LifeStrategy Growth Fund $21.61 $23.36 $0.468 $0.017

 

 

Target and Actual Asset Allocations        
Percentages as of October 31, 2012        
    Stocks   Bonds
  Target Actual Target Actual
LifeStrategy Income Fund 20.0% 19.9% 80.0% 80.1%
LifeStrategy Conservative Growth Fund 40.0% 39.8% 60.0% 60.2%
LifeStrategy Moderate Growth Fund 60.0% 59.6% 40.0% 40.4%
LifeStrategy Growth Fund 80.0% 79.9% 20.0% 20.1%

 

Actual international stock positions for the Income, Conservative Growth, Moderate Growth, and Growth Funds equaled 6.1%, 12.1%, 18.2%, and 24.3% of assets, respectively.

8


 

LifeStrategy Income Fund

Fund Profile
As of October 31, 2012

Total Fund Characteristics  
Ticker Symbol VASIX
30-Day SEC Yield 2.06%
Acquired Fund Fees and Expenses1 0.13%

 

 

Allocation to Underlying Vanguard Funds  
Vanguard Total Bond Market II Index Fund  
Investor Shares 80.1%
Vanguard Total Stock Market Index Fund  
Investor Shares 13.8
Vanguard Total International Stock Index  
Fund Investor Shares 6.1

 

 

Total Fund Volatility Measures  
    Barclays
  Income Aggregate
  Composite Bond
  Index Index
R-Squared 0.98 0.02
Beta 1.07 0.20

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Fund Asset Allocation


1 This figure—drawn from the prospectus dated February 27, 2012—represents an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the LifeStrategy Income Fund invests. The LifeStrategy Income Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.14%.

9


 

LifeStrategy Income Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  LifeStrategy Income Fund 6.41% 3.81% 5.49% $17,068
••••••• Income Composite Index 6.65 5.06 5.69 17,395
– – – – Barclays Income Composite U.S. Aggregate Average Bond Index 5.25 7.78 6.38 3.76 5.39 5.06 16,910 16,380

For a benchmark description, see the Glossary.
Income Composite Average: Derived from data provided by Lipper Inc.

See Financial Highlights for dividend and capital gains information.

10


 

LifeStrategy Income Fund

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

            Ten Years
  Inception Date One Year Five Years Income Capital Total
LifeStrategy Income Fund 9/30/1994 9.15% 4.08% 3.50% 2.23% 5.73%

 

11


 

LifeStrategy Income Fund

Financial Statements

Statement of Net Assets
As of October 31, 2012

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. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market
    Value
  Shares ($000)
Investment Companies (99.7%)    
U.S. Stock Fund (13.8%)    
Vanguard Total Stock Market Index Fund Investor Shares 10,779,735 379,554
 
International Stock Fund (6.0%)    
Vanguard Total International Stock Index Fund Investor Shares 11,622,665 166,320
 
Bond Fund (79.9%)    
1 Vanguard Total Bond Market II Index Fund Investor Shares 198,467,254 2,197,033
Total Investment Companies (Cost $2,579,266)   2,742,907
Temporary Cash Investment (0.1%)    
Money Market Fund (0.1%)    
1 Vanguard Market Liquidity Fund, 0.167% (Cost $2,569) 2,568,881 2,569
Total Investments (99.8%) (Cost $2,581,835)   2,745,476
Other Assets and Liabilities (0.2%)    
Other Assets   18,817
Liabilities   (14,211)
    4,606
Net Assets (100%)    
Applicable to 186,685,024 outstanding $.001 par value shares of    
beneficial interest (unlimited authorization)   2,750,082
Net Asset Value Per Share   $14.73

 

 

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 2,490,423
Undistributed Net Investment Income 4,621
Accumulated Net Realized Gains 91,397
Unrealized Appreciation (Depreciation) 163,641
Net Assets 2,750,082

 

See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market
Liquidity Fund is the 7-day yield.
See accompanying Notes, which are an integral part of the Financial Statements.

12


 

LifeStrategy Income Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Income Distributions Received 62,960
Net Investment Income—Note B 62,960
Realized Net Gain (Loss)  
Capital Gain Distributions Received 20,476
Investment Securities Sold 100,104
Realized Net Gain (Loss) 120,580
Change in Unrealized Appreciation (Depreciation) of Investment Securities (24,626)
Net Increase (Decrease) in Net Assets Resulting from Operations 158,914

 

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

13


 

LifeStrategy Income Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 62,960 59,661
Realized Net Gain (Loss) 120,580 42,453
Change in Unrealized Appreciation (Depreciation) (24,626) (15,410)
Net Increase (Decrease) in Net Assets Resulting from Operations 158,914 86,704
Distributions    
Net Investment Income (62,712) (60,135)
Realized Capital Gain1 (15,963) (5,458)
Total Distributions (78,675) (65,593)
Capital Share Transactions    
Issued 677,994 670,648
Issued in Lieu of Cash Distributions 74,104 61,679
Redeemed (483,851) (602,848)
Net Increase (Decrease) from Capital Share Transactions 268,247 129,479
Total Increase (Decrease) 348,486 150,590
Net Assets    
Beginning of Period 2,401,596 2,251,006
End of Period2 2,750,082 2,401,596

1 Includes fiscal 2012 and 2011 short-term gain distributions totaling $7,983,000 and $5,458,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed net investment income of $4,621,000 and $4,373,000.

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

14


 

LifeStrategy Income Fund

Financial Highlights

For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $14.28 $14.15 $13.20 $12.13 $14.44
Investment Operations          
Net Investment Income .353 .357 .388 .440 .555
Capital Gain Distributions Received .116 .059
Net Realized and Unrealized Gain (Loss)          
on Investments .429 .109 .954 1.081 (2.266)
Total from Investment Operations .898 .525 1.342 1.521 (1.711)
Distributions          
Dividends from Net Investment Income (.354) (.361) (.392) (.451) (.570)
Distributions from Realized Capital Gains (.094) (.034) (.029)
Total Distributions (.448) (.395) (.392) (.451) (.599)
Net Asset Value, End of Period $14.73 $14.28 $14.15 $13.20 $12.13
 
Total Return1 6.41% 3.77% 10.32% 12.83% -12.29%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $2,750 $2,402 $2,251 $1,784 $1,642
Ratio of Total Expenses to          
Average Net Assets
Acquired Fund Fees and Expenses 0.14% 0.18% 0.18% 0.23% 0.22%
Ratio of Net Investment Income to          
Average Net Assets 2.45% 2.52% 2.89% 3.55% 4.00%
Portfolio Turnover Rate 8%2 43%3 9% 27%4 22%

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s investments from Vanguard Asset Allocation Fund to Vanguard Total Bond Market II Index Fund and Vanguard Total Stock Market Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.
3 Excludes the value of mutual fund shares delivered and bonds received in connection with a change in the fund’s bond investments from Vanguard Short-Term Investment-Grade Fund to individual bonds because those transactions were effected in kind and did not cause the fund to incur transaction costs.
4 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s bond investments from Vanguard Total Bond Market Index Fund to Vanguard Total Bond Market II Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.

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

15


 

LifeStrategy Income Fund

Notes to Financial Statements

Vanguard LifeStrategy Income Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to U.S. stocks, international stocks, and bonds.

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

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

2. 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, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. Under a service agreement, The Vanguard Group furnishes corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2012, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

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).

At October 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

16


 

LifeStrategy Income Fund

The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $17,866,000 from accumulated net realized gains to paid-in capital.

For tax purposes, at October 31, 2012, the fund had $10,983,000 of ordinary income and $85,080,000 of long-term capital gains available for distribution.

At October 31, 2012, the cost of investment securities for tax purposes was $2,581,880,000.

Net unrealized appreciation of investment securities for tax purposes was $163,596,000, consisting of unrealized gains of $172,841,000 on securities that had risen in value since their purchase and $9,245,000 in unrealized losses on securities that had fallen in value since their purchase.

E. During the year ended October 31, 2012, the fund purchased $980,709,000 of investment securities and sold $712,853,000 of investment securities, other than temporary cash investments.

F. Capital shares issued and redeemed were:

  Year Ended October 31,
  2012 2011
  Shares Shares
  (000) (000)
Issued 46,801 47,191
Issued in Lieu of Cash Distributions 5,160 4,371
Redeemed (33,439) (42,509)
Net Increase (Decrease) in Shares Outstanding 18,522 9,053

 

G. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

17


 

LifeStrategy Conservative Growth Fund

Fund Profile
As of October 31, 2012

Total Fund Characteristics  
Ticker Symbol VSCGX
30-Day SEC Yield 2.04%
Acquired Fund Fees and Expenses1 0.15%

 

Allocation to Underlying Vanguard Funds  
Vanguard Total Bond Market II Index Fund  
Investor Shares 60.2%
Vanguard Total Stock Market Index Fund  
Investor Shares 27.7
Vanguard Total International Stock Index  
Fund Investor Shares 12.1

 

Total Fund Volatility Measures  
  Conservative DJ
  Growth U.S. Total
  Composite Market
  Index Index
R-Squared 0.99 0.93
Beta 1.04 0.40

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Fund Asset Allocation


1 This figure—drawn from the prospectus dated February 27, 2012—represents an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the LifeStrategy Conservative Growth Fund invests. The LifeStrategy Conservative Growth Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.15%.

18


 

LifeStrategy Conservative Growth Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


      Average Annual Total Returns  
    Periods Ended October 31, 2012  
 
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  LifeStrategy Conservative Growth      
  Fund 7.88% 2.53% 6.12% $18,106
••••••• Conservative Growth Composite      
  Index 7.95 3.70 6.25 18,331
– – – – Conservative Growth Composite      
  Average 8.34 2.47 5.53 17,138
  Dow Jones U.S. Total Stock Market      
  Index 14.45 0.75 7.78 21,163
For a benchmark description, see the Glossary.      
Conservative Growth Composite Average: Derived from data provided by Lipper Inc.    

 

See Financial Highlights for dividend and capital gains information.

19


 

LifeStrategy Conservative Growth Fund

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

            Ten Years
  Inception Date One Year Five Years Income Capital Total
LifeStrategy Conservative            
Growth Fund 9/30/1994 13.29% 2.92% 3.08% 3.46% 6.54%

 

20


 

LifeStrategy Conservative Growth Fund

Financial Statements

Statement of Net Assets
As of October 31, 2012

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. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market
    Value
  Shares ($000)
Investment Companies (100.0%)    
U.S. Stock Fund (27.7%)    
Vanguard Total Stock Market Index Fund Investor Shares 57,772,115 2,034,156
 
International Stock Fund (12.1%)    
Vanguard Total International Stock Index Fund Investor Shares 62,317,035 891,757
 
Bond Fund (60.2%)    
1 Vanguard Total Bond Market II Index Fund Investor Shares 400,229,575 4,430,541
Total Investments (100.0%) (Cost $6,522,108)   7,356,454
Other Assets and Liabilities (0.0%)    
Other Assets   21,046
Liabilities   (18,745)
    2,301
Net Assets (100%)    
Applicable to 427,563,099 outstanding $.001 par value shares of    
beneficial interest (unlimited authorization)   7,358,755
Net Asset Value Per Share   $17.21

 

 

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 6,381,611
Undistributed Net Investment Income 9,228
Accumulated Net Realized Gains 133,570
Unrealized Appreciation (Depreciation) 834,346
Net Assets 7,358,755

 

See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard.
See accompanying Notes, which are an integral part of the Financial Statements.

21


 

LifeStrategy Conservative Growth Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Income Distributions Received 173,313
Net Investment Income—Note B 173,313
Realized Net Gain (Loss)  
Capital Gain Distributions Received 41,558
Investment Securities Sold 224,043
Realized Net Gain (Loss) 265,601
Change in Unrealized Appreciation (Depreciation) of Investment Securities 84,431
Net Increase (Decrease) in Net Assets Resulting from Operations 523,345

 

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

22


 

LifeStrategy Conservative Growth Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 173,313 149,920
Realized Net Gain (Loss) 265,601 46,447
Change in Unrealized Appreciation (Depreciation) 84,431 39,824
Net Increase (Decrease) in Net Assets Resulting from Operations 523,345 236,191
Distributions    
Net Investment Income (172,618) (151,155)
Realized Capital Gain1 (16,851) (9,424)
Total Distributions (189,469) (160,579)
Capital Share Transactions    
Issued 1,502,772 1,289,093
Issued in Lieu of Cash Distributions 183,865 155,851
Redeemed (1,214,826) (1,283,322)
Net Increase (Decrease) from Capital Share Transactions 471,811 161,622
Total Increase (Decrease) 805,687 237,234
Net Assets    
Beginning of Period 6,553,068 6,315,834
End of Period2 7,358,755 6,553,068

1 Includes fiscal 2012 and 2011 short-term gain distributions totaling $16,851,000 and $9,424,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed net investment income of $9,228,000 and $8,533,000.

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

23


 

LifeStrategy Conservative Growth Fund

Financial Highlights

For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $16.40 $16.20 $14.81 $13.46 $17.61
Investment Operations          
Net Investment Income .421 .374 .406 .439 .568
Capital Gain Distributions Received .101 .049
Net Realized and Unrealized Gain (Loss)          
on Investments .750 .179 1.392 1.359 (4.116)
Total from Investment Operations 1.272 .602 1.798 1.798 (3.548)
Distributions          
Dividends from Net Investment Income (.420) (.378) (.408) (.448) (.592)
Distributions from Realized Capital Gains (.042) (.024) (.010)
Total Distributions (.462) (.402) (.408) (.448) (.602)
Net Asset Value, End of Period $17.21 $16.40 $16.20 $14.81 $13.46
 
Total Return1 7.88% 3.74% 12.30% 13.72% -20.71%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $7,359 $6,553 $6,316 $5,487 $4,843
Ratio of Total Expenses to          
Average Net Assets
Acquired Fund Fees and Expenses 0.15% 0.19% 0.19% 0.24% 0.22%
Ratio of Net Investment Income to          
Average Net Assets 2.51% 2.27% 2.63% 3.23% 3.52%
Portfolio Turnover Rate 15%2 46%3 15% 29%4 22%

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s investments from Vanguard Asset Allocation Fund to Vanguard Total Bond Market II Index Fund and Vanguard Total Stock Market Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.
3 Excludes the value of mutual fund shares delivered and bonds received in connection with a change in the fund’s bond investments from Vanguard Short-Term Investment-Grade Fund to individual bonds because those transactions were effected in kind and did not cause the fund to incur transaction costs.
4 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s bond investments from Vanguard Total Bond Market Index Fund to Vanguard Total Bond Market II Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.

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

24


 

LifeStrategy Conservative Growth Fund

Notes to Financial Statements

Vanguard LifeStrategy Conservative Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to U.S. stocks, international stocks, and bonds.

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

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

2. 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, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. Under a service agreement, The Vanguard Group furnishes corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2012, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

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).

At October 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

25


 

LifeStrategy Conservative Growth Fund

The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $23,444,000 from accumulated net realized gains to paid-in capital.

The fund used a capital loss carryforward of $76,610,000 to offset taxable capital gains realized during the year ended October 31, 2012, reducing the amount of capital gains that would otherwise be available to distribute to shareholders. For tax purposes, at October 31, 2012, the fund had $12,089,000 of ordinary income and $131,380,000 of long-term capital gains available for distribution. Short-term capital gain distributions received are treated as ordinary income for tax purposes, and cannot be offset by capital losses. Capital gain distributions paid during the year ended October 31, 2012, are from short-term gain distributions received from Vanguard Total Bond Market II Index Fund.

At October 31, 2012, the cost of investment securities for tax purposes was $6,522,779,000. Net unrealized appreciation of investment securities for tax purposes was $833,675,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.

E. During the year ended October 31, 2012, the fund purchased $2,870,885,000 of investment securities and sold $2,377,055,000 of investment securities, other than temporary cash investments.

F. Capital shares issued and redeemed were:

  Year Ended October 31,
  2012 2011
  Shares Shares
  (000) (000)
Issued 89,306 78,122
Issued in Lieu of Cash Distributions 11,023 9,505
Redeemed (72,369) (77,997)
Net Increase (Decrease) in Shares Outstanding 27,960 9,630

 

G. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

26


 

LifeStrategy Moderate Growth Fund

Fund Profile
As of October 31, 2012

Total Fund Characteristics  
Ticker Symbol VSMGX
30-Day SEC Yield 2.02%
Acquired Fund Fees and Expenses1 0.16%

 

Allocation to Underlying Vanguard Funds  
Vanguard Total Stock Market Index Fund  
Investor Shares 41.4%
Vanguard Total Bond Market II Index Fund  
Investor Shares 40.4
Vanguard Total International Stock Index  
Fund Investor Shares 18.2

 

Total Fund Volatility Measures  
  Moderate DJ
  Growth U.S. Total
  Composite Market
  Index Index
R-Squared 1.00 0.97
Beta 1.03 0.61

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Fund Asset Allocation


1 This figure—drawn from the prospectus dated February 27, 2012—represents an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the LifeStrategy Moderate Growth Fund invests. The LifeStrategy Moderate Growth Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.16%.

27


 

LifeStrategy Moderate Growth Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  LifeStrategy Moderate Growth Fund 9.25% 1.40% 6.83% $19,365
••••••• Moderate Growth Composite Index 9.45 2.66 7.07 19,804
– – – – Moderate Growth Composite        
  Average 8.70 1.63 6.49 18,755
  Dow Jones U.S. Total Stock Market        
  Index 14.45 0.75 7.78 21,163

For a benchmark description, see the Glossary.
Moderate Growth Composite Average: Derived from data provided by Lipper Inc.

See Financial Highlights for dividend and capital gains information.

28


 

LifeStrategy Moderate Growth Fund

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

            Ten Years
  Inception Date One Year Five Years Income Capital Total
LifeStrategy Moderate            
Growth Fund 9/30/1994 17.25% 1.93% 2.72% 4.74% 7.46%

 

29


 

LifeStrategy Moderate Growth Fund

Financial Statements

Statement of Net Assets
As of October 31, 2012

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. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market
    Value
  Shares ($000)
Investment Companies (100.1%)    
U.S. Stock Fund (41.4%)    
Vanguard Total Stock Market Index Fund Investor Shares 103,373,245 3,639,772
 
International Stock Fund (18.3%)    
Vanguard Total International Stock Index Fund Investor Shares 112,088,709 1,603,989
 
Bond Fund (40.4%)    
1 Vanguard Total Bond Market II Index Fund Investor Shares 320,656,365 3,549,666
Total Investment Companies (Cost $7,177,809)   8,793,427
Temporary Cash Investment (0.0%)    
Money Market Fund (0.0%)    
1 Vanguard Market Liquidity Fund, 0.167% (Cost $786) 785,956 786
Total Investments (100.1%) (Cost $7,178,595)   8,794,213
Other Assets and Liabilities (-0.1%)    
Other Assets   14,622
Liabilities   (22,693)
    (8,071)
Net Assets (100%)    
Applicable to 421,596,954 outstanding $.001 par value shares of    
beneficial interest (unlimited authorization)   8,786,142
Net Asset Value Per Share   $20.84

 

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 6,955,885
Undistributed Net Investment Income 70,321
Accumulated Net Realized Gains 144,318
Unrealized Appreciation (Depreciation) 1,615,618
Net Assets 8,786,142

 

See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
See accompanying Notes, which are an integral part of the Financial Statements.

30


 

LifeStrategy Moderate Growth Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Income Distributions Received 215,324
Net Investment Income—Note B 215,324
Realized Net Gain (Loss)  
Capital Gain Distributions Received 33,804
Investment Securities Sold 257,117
Realized Net Gain (Loss) 290,921
Change in Unrealized Appreciation (Depreciation) of Investment Securities 232,699
Net Increase (Decrease) in Net Assets Resulting from Operations 738,944

 

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

31


 

LifeStrategy Moderate Growth Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 215,324 172,570
Realized Net Gain (Loss) 290,921 113,383
Change in Unrealized Appreciation (Depreciation) 232,699 47,079
Net Increase (Decrease) in Net Assets Resulting from Operations 738,944 333,032
Distributions    
Net Investment Income (182,905) (190,224)
Realized Capital Gain1 (12,345) (12,685)
Total Distributions (195,250) (202,909)
Capital Share Transactions    
Issued 1,582,811 1,325,804
Issued in Lieu of Cash Distributions 191,361 199,148
Redeemed (1,630,076) (1,606,134)
Net Increase (Decrease) from Capital Share Transactions 144,096 (81,182)
Total Increase (Decrease) 687,790 48,941
Net Assets    
Beginning of Period 8,098,352 8,049,411
End of Period2 8,786,142 8,098,352

1 Includes fiscal 2012 and 2011 short-term gain distributions totaling $12,345,000 and $12,685,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed net investment income of $70,321,000 and $37,902,000.

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

32


 

LifeStrategy Moderate Growth Fund

Financial Highlights

For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $19.54 $19.22 $17.16 $15.56 $22.21
Investment Operations          
Net Investment Income .515 .406 .431 .450 .607
Capital Gain Distributions Received .081 .042
Net Realized and Unrealized Gain (Loss)          
on Investments 1.173 .350 2.023 1.632 (6.606)
Total from Investment Operations 1.769 .798 2.454 2.082 (5.999)
Distributions          
Dividends from Net Investment Income (.439) (.448) (.394) (.482) (.627)
Distributions from Realized Capital Gains (.030) (.030) (.024)
Total Distributions (.469) (.478) (.394) (.482) (.651)
Net Asset Value, End of Period $20.84 $19.54 $19.22 $17.16 $15.56
 
Total Return1 9.25% 4.14% 14.50% 13.82% -27.69%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $8,786 $8,098 $8,049 $7,626 $7,408
Ratio of Total Expenses to          
Average Net Assets
Acquired Fund Fees and Expenses 0.16% 0.19% 0.19% 0.23% 0.22%
Ratio of Net Investment Income to          
Average Net Assets 2.56% 2.05% 2.37% 2.89% 2.98%
Portfolio Turnover Rate 15%2 32% 17% 25%3 18%

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s investments from Vanguard Asset Allocation Fund to Vanguard Total Bond Market II Index Fund and Vanguard Total Stock Market Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.
3 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s bond investments from Vanguard Total Bond Market Index Fund to Vanguard Total Bond Market II Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.

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

33


 

LifeStrategy Moderate Growth Fund

Notes to Financial Statements

Vanguard LifeStrategy Moderate Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to U.S. stocks, international stocks, and bonds.

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

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

2. 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, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. Under a service agreement, The Vanguard Group furnishes corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2012, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

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 2Other 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).

At October 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

34


 

LifeStrategy Moderate Growth Fund

The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $30,182,000 from accumulated net realized gains to paid-in capital.

The fund used a capital loss carryforward of 94,363,000 to offset taxable capital gains realized during the year ended October 31, 2012, reducing the amount of capital gains that would otherwise be available to distribute to shareholders. For tax purposes, at October 31, 2012, the fund had $72,729,000 of ordinary income and $143,141,000 of long-term capital gains available for distribution. Short-term capital gain distributions received are treated as ordinary income for tax purposes, and cannot be offset by capital losses. Capital gain distributions paid during the year ended October 31, 2012, are from short-term gain distributions received from Vanguard Total Bond Market II Index Fund.

At October 31, 2012, the cost of investment securities for tax purposes was $7,179,826,000. Net unrealized appreciation of investment securities for tax purposes was $1,614,387,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.

E. During the year ended October 31, 2012, the fund purchased $3,093,660,000 of investment securities and sold $2,887,733,000 of investment securities, other than temporary cash investments.

F. Capital shares issued and redeemed were:

  Year Ended October 31,
  2012 2011
  Shares Shares
  (000) (000)
Issued 78,549 66,971
Issued in Lieu of Cash Distributions 9,879 10,087
Redeemed (81,209) (81,575)
Net Increase (Decrease) in Shares Outstanding 7,219 (4,517)

 

G. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.


 

LifeStrategy Growth Fund

Fund Profile
As of October 31, 2012

Total Fund Characteristics  
Ticker Symbol VASGX
30-Day SEC Yield 2.00%
Acquired Fund Fees and Expenses1 0.17%

 

Allocation to Underlying Vanguard Funds  
Vanguard Total Stock Market Index Fund  
Investor Shares 55.6%
Vanguard Total International Stock Index  
Fund Investor Shares 24.3
Vanguard Total Bond Market II Index Fund  
Investor Shares 20.1

 

Total Fund Volatility Measures  
    DJ
  Growth U.S. Total
  Composite Market
  Index Index
R-Squared 1.00 0.98
Beta 1.03 0.83

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Fund Asset Allocation


1 This figure—drawn from the prospectus dated February 27, 2012—represents an estimate of the weighted average of the expense ratios and any transaction fees charged by the underlying mutual funds (the ”acquired” funds) in which the LifeStrategy Growth Fund invests. The LifeStrategy Growth Fund does not charge any expenses or fees of its own. For the fiscal year ended October 31, 2012, the annualized acquired fund fees and expenses were 0.17%.

36


 

LifeStrategy Growth Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  LifeStrategy Growth Fund 10.56% -0.31% 7.16% $19,972
••••••• Growth Composite Index 10.60 1.00 7.41 20,433
– – – – Growth Composite Average 9.14 0.07 6.77 19,250
  Dow Jones U.S. Total Stock Market        
  Index 14.45 0.75 7.78 21,163
For a benchmark description, see the Glossary.        
Growth Composite Average: Derived from data provided by Lipper Inc.      

 

See Financial Highlights for dividend and capital gains information.

37


 

LifeStrategy Growth Fund

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

            Ten Years
  Inception Date One Year Five Years Income Capital Total
LifeStrategy Growth Fund 9/30/1994 21.35% 0.33% 2.25% 5.71% 7.96%

 

38


 

LifeStrategy Growth Fund

Financial Statements

Statement of Net Assets
As of October 31, 2012

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. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market
    Value
  Shares ($000)
Investment Companies (99.9%)    
U.S. Stock Fund (55.5%)    
Vanguard Total Stock Market Index Fund Investor Shares 122,992,333 4,330,560
 
International Stock Fund (24.3%)    
Vanguard Total International Stock Index Fund Investor Shares 132,578,328 1,897,196
 
Bond Fund (20.1%)    
1 Vanguard Total Bond Market II Index Fund Investor Shares 141,737,512 1,569,034
Total Investment Companies (Cost $6,217,331)   7,796,790
Temporary Cash Investment (0.1%)    
Money Market Fund (0.1%)    
1 Vanguard Market Liquidity Fund, 0.167% (Cost $2,633) 2,633,178 2,633
Total Investments (100.0%) (Cost $6,219,964)   7,799,423
Other Assets and Liabilities (0.0%)    
Other Assets   15,388
Liabilities   (15,938)
    (550)
Net Assets (100%)    
Applicable to 333,895,713 outstanding $.001 par value shares of    
beneficial interest (unlimited authorization)   7,798,873
Net Asset Value Per Share   $23.36

 

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 6,072,665
Undistributed Net Investment Income 63,819
Accumulated Net Realized Gains 82,930
Unrealized Appreciation (Depreciation) 1,579,459
Net Assets 7,798,873

 

See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
See accompanying Notes, which are an integral part of the Financial Statements.


 

LifeStrategy Growth Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Income Distributions Received 198,472
Net Investment Income—Note B 198,472
Realized Net Gain (Loss)  
Capital Gain Distributions Received 15,267
Investment Securities Sold 149,673
Realized Net Gain (Loss) 164,940
Change in Unrealized Appreciation (Depreciation) of Investment Securities 389,933
Net Increase (Decrease) in Net Assets Resulting from Operations 753,345

 

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

40


 

LifeStrategy Growth Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 198,472 141,094
Realized Net Gain (Loss) 164,940 13,355
Change in Unrealized Appreciation (Depreciation) 389,933 114,922
Net Increase (Decrease) in Net Assets Resulting from Operations 753,345 269,371
Distributions    
Net Investment Income (159,047) (156,993)
Realized Capital Gain1 (5,764) (3,164)
Total Distributions (164,811) (160,157)
Capital Share Transactions    
Issued 991,005 1,075,113
Issued in Lieu of Cash Distributions 162,325 157,899
Redeemed (1,313,781) (1,402,052)
Net Increase (Decrease) from Capital Share Transactions (160,451) (169,040)
Total Increase (Decrease) 428,083 (59,826)
Net Assets    
Beginning of Period 7,370,790 7,430,616
End of Period2 7,798,873 7,370,790

1 Includes fiscal 2012 and 2011 short-term gain distributions totaling $5,764,000 and $3,164,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed net investment income of $63,819,000 and $24,394,000.

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

41


 

LifeStrategy Growth Fund

Financial Highlights

For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $21.61 $21.28 $18.66 $16.86 $26.56
Investment Operations          
Net Investment Income .587 .401 .417 .423 .571
Capital Gain Distributions Received .045 .018
Net Realized and Unrealized Gain (Loss)          
on Investments 1.603 .364 2.573 1.818 (9.690)
Total from Investment Operations 2.235 .783 2.990 2.241 (9.119)
Distributions          
Dividends from Net Investment Income (.468) (.444) (.370) (.441) (.581)
Distributions from Realized Capital Gains (.017) (.009)
Total Distributions (.485) (.453) (.370) (.441) (.581)
Net Asset Value, End of Period $23.36 $21.61 $21.28 $18.66 $16.86
 
Total Return1 10.56% 3.63% 16.21% 13.74% -34.98%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $7,799 $7,371 $7,431 $6,621 $6,267
Ratio of Total Expenses to          
Average Net Assets
Acquired Fund Fees and Expenses 0.17% 0.20% 0.20% 0.23% 0.21%
Ratio of Net Investment Income to          
Average Net Assets 2.61% 1.79% 2.09% 2.57% 2.47%
Portfolio Turnover Rate 10%2 22% 11% 12%3 10%

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s investments from Vanguard Asset Allocation Fund to Vanguard Total Bond Market II Index Fund and Vanguard Total Stock Market Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.
3 Excludes the value of mutual fund shares delivered and received in connection with a change in the fund’s bond investments from Vanguard Total Bond Market Index Fund to Vanguard Total Bond Market II Index Fund because those transactions were effected in kind and did not cause the fund to incur transaction costs.

 

42


 

LifeStrategy Growth Fund

Notes to Financial Statements

Vanguard LifeStrategy Growth Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to U.S. stocks, international stocks, and bonds.

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

1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.

2. 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, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.

4. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. Under a service agreement, The Vanguard Group furnishes corporate management, administrative, marketing, and distribution services to the fund. The service agreement provides that the fund’s expenses may be reduced or eliminated to the extent of savings realized by the Vanguard funds by the operation of the fund. Accordingly, all incremental expenses for services provided by Vanguard and all other expenses incurred by the fund during the year ended October 31, 2012, were borne by the funds in which the fund invests. The fund’s trustees and officers are also directors and officers of Vanguard and the funds in which the fund invests.

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).

At October 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.

D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

43


 

LifeStrategy Growth Fund

The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $15,887,000 from accumulated net realized gains to paid-in capital.

The fund used a capital loss carryforward of $49,225,000 to offset taxable capital gains realized during the year ended October 31, 2012, reducing the amount of capital gains that would otherwise be available to distribute to shareholders. For tax purposes, at October 31, 2012, the fund had $64,921,000 of ordinary income and $83,714,000 of long-term capital gains available for distribution. Short-term capital gain distributions received are treated as ordinary income for tax purposes, and cannot be offset by capital losses. Capital gain distributions paid during the year ended October 31, 2012, are from short-term gain distributions received from Vanguard Total Bond Market II Index Fund.

At October 31, 2012, the cost of investment securities for tax purposes was $6,221,849,000. Net unrealized appreciation of investment securities for tax purposes was $1,577,574,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.

E. During the year ended October 31, 2012, the fund purchased $2,281,144,000 of investment securities and sold $2,395,118,000 of investment securities, other than temporary cash investments.

F. Capital shares issued and redeemed were:

  Year Ended October 31,
  2012 2011
  Shares Shares
  (000) (000)
Issued 44,127 48,291
Issued in Lieu of Cash Distributions 7,599 7,089
Redeemed (58,844) (63,607)
Net Increase (Decrease) in Shares Outstanding (7,118) (8,227)

 

G. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

44


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard LifeStrategy Income Fund, Vanguard LifeStrategy Conservative Growth Fund, Vanguard LifeStrategy Moderate Growth Fund and Vanguard LifeStrategy Growth Fund: In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard LifeStrategy Income Fund, Vanguard LifeStrategy Conservative Growth Fund, Vanguard LifeStrategy Moderate Growth Fund and Vanguard LifeStrategy Growth Fund (constituting separate portfolios of Vanguard STAR Funds, hereafter referred to as the “Funds”) at October 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2012 by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 14, 2012

45


 

Special 2012 tax information (unaudited) for Vanguard LifeStrategy Funds

 

This information for the fiscal year ended October 31, 2012, is included pursuant to provisions of the Internal Revenue Code.

The funds distributed capital gain dividends (from net-long term capital gains) to shareholders during the fiscal year as follows:

Fund ($000)
LifeStrategy Income Fund 24,887
LifeStrategy Conservative Growth Fund 23,444
LifeStrategy Moderate Growth Fund 30,182
LifeStrategy Growth Fund 15,887

 

The funds distributed qualified dividend income to shareholders during the fiscal year as follows:

Fund ($000)
LifeStrategy Income Fund 9,568
LifeStrategy Conservative Growth Fund 54,734
LifeStrategy Moderate Growth Fund 89,743
LifeStrategy Growth Fund 111,563

 

For corporate shareholders, the percentage of investment income (dividend income plus short-term gains, if any) that qualifies for the dividends-received deduction is as follows:

Fund Percentage
LifeStrategy Income Fund 8.2%
LifeStrategy Conservative Growth Fund 17.9
LifeStrategy Moderate Growth Fund 27.3
LifeStrategy Growth Fund 36.9

 

46


 

Your Fund’s After-Tax Returns

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 2012. (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.)

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: LifeStrategy Funds      
Periods Ended October 31, 2012      
  One Five Ten
  Year Years Years
LifeStrategy Income Fund      
Returns Before Taxes 6.41% 3.81% 5.49%
Returns After Taxes on Distributions 5.41 2.72 4.30
Returns After Taxes on Distributions and Sale of Fund Shares 4.28 2.64 4.07
 
  One Five Ten
  Year Years Years
LifeStrategy Conservative Growth Fund      
Returns Before Taxes 7.88% 2.53% 6.12%
Returns After Taxes on Distributions 7.01 1.65 5.18
Returns After Taxes on Distributions and Sale of Fund Shares 5.26 1.69 4.81
   
  One Five Ten
  Year Years Years
LifeStrategy Moderate Growth Fund      
Returns Before Taxes 9.25% 1.40% 6.83%
Returns After Taxes on Distributions 8.58 0.71 6.09
Returns After Taxes on Distributions and Sale of Fund Shares 6.20 0.86 5.61

 

47


 

Average Annual Total Returns: LifeStrategy Funds      
Periods Ended October 31, 2012      
  One Five Ten
  Year Years Years
LifeStrategy Growth Fund      
Returns Before Taxes 10.56% -0.31% 7.16%
Returns After Taxes on Distributions 10.03 -0.77 6.67
Returns After Taxes on Distributions and Sale of Fund Shares 7.14 -0.43 6.10

 

 

48

 


 

About Your Fund’s Expenses

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

A typical fund’s expenses are expressed as a percentage of its average net assets. The LifeStrategy Funds have no direct expenses, but each fund bears its proportionate share of the costs for the underlying funds in which it invests. These indirect expenses make up the acquired fund fees and expenses, also expressed as a percentage of average net assets.

The following examples are intended to help you understand the ongoing cost (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 costs were calculated using the acquired fund fees and expenses for each LifeStrategy Fund.

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

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

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

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

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

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

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

49


 

Six Months Ended October 31, 2012      
  Beginning Ending Expenses
  Account Value Account Value Paid During
  4/30/2012 10/31/2012 Period
Based on Actual Fund Return      
LifeStrategy Income Fund $1,000.00 $1,025.32 $0.66
LifeStrategy Conservative Growth Fund $1,000.00 $1,023.38 $0.77
LifeStrategy Moderate Growth Fund $1,000.00 $1,021.26 $0.82
LifeStrategy Growth Fund $1,000.00 $1,018.85 $0.87
Based on Hypothetical 5% Yearly Return      
LifeStrategy Income Fund $1,000.00 $1,024.55 $0.66
LifeStrategy Conservative Growth Fund $1,000.00 $1,024.45 $0.77
LifeStrategy Moderate Growth Fund $1,000.00 $1,024.40 $0.82
LifeStrategy Growth Fund $1,000.00 $1,024.35 $0.87

The calculations are based on acquired fund fees and expenses charged by the underlying mutual funds in which the LifeStrategy Funds
invest. The LifeStrategy Funds’ annualized expense figures for the period are (in order as listed from top to bottom above) 0.13%, 0.15%,
0.16%, and 0.17%. The dollar amounts shown as ”Expenses Paid” are equal to the annualized average weighted expense ratio for the
underlying funds multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month
period, then divided by the number of days in the most recent 12-month period.

50


 

Glossary

30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S. Securities and Exchange Commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (for bonds), its actual income (for asset-backed securities), or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.

Acquired Fund Fees and Expenses. Funds that invest in other Vanguard funds incur no direct expenses, but they do bear proportionate shares of the operating, administrative, and advisory expenses of the underlying funds, and they must pay any fees charged by those funds. The figure for acquired fund fees and expenses represents a weighted average of these underlying costs. Acquired is a term that the Securities and Exchange Commission applies to any mutual fund whose shares are owned by another fund.

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.

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.

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.

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.

 

Benchmark Information

Conservative Growth Composite Average: 60% fixed income funds average, 28% general equity funds average, and 12% international funds average. Derived from data provided by Lipper Inc.

51


 

Conservative Growth Composite Index: Weighted 60% Barclays U.S. Aggregate Float Adjusted Index, 28% MSCI US Broad Market Index, and 12% MSCI ACWI ex USA IMI Index as of December 1, 2011. In prior periods, the composite was 40% Barclays U.S. Aggregate Float Adjusted Index, 28% MSCI US Broad Market Index, 20% Barclays U.S. 1–3 Year Credit Bond Index, and 12% MSCI ACWI ex USA IMI Index through November 30, 2011; 40% Barclays U.S. Aggregate Bond Index (with the Barclays U.S. Aggregate Float Adjusted Index used after December 31, 2009), 35% MSCI US Broad Market Index, 20% Barclays U.S. 1–3 Year Credit Bond Index, and 5% MSCI EAFE Index through December 15, 2010; 40% Barclays U.S. Aggregate Bond Index, 35% Dow Jones U.S. Total Stock Market Index, 20% Barclays U.S. 1–3 Year Credit Bond Index, and 5% MSCI EAFE Index through April 22, 2005; and 40% Barclays U.S. Aggregate Bond Index, 35% Dow Jones U.S. Total Stock Market Index, 20% Citigroup 3-Month Treasury Bill Index, and 5% MSCI EAFE Index through August 31, 2003. MSCI international benchmark returns are adjusted for withholding taxes.

Growth Composite Average: 56% general equity funds average, 24% international funds average, and 20% fixed income funds average. Derived from data provided by Lipper Inc.

Growth Composite Index: Weighted 56% MSCI US Broad Market Index, 24% MSCI ACWI ex USA IMI Index, and 20% Barclays U.S. Aggregate Float Adjusted Index as of December 16, 2010. In prior periods, the composite was 65% MSCI US Broad Market Index, 20% Barclays U.S. Aggregate Bond Index (with the Barclays U.S. Aggregate Float Adjusted Index used after December 31, 2009), and 15% MSCI EAFE Index through December 15, 2010, and 65% Dow Jones U.S. Total Stock Market Index, 20% Barclays U.S. Aggregate Bond Index, and 15% MSCI EAFE Index through April 22, 2005. MSCI international benchmark returns are adjusted for withholding taxes.

Income Composite Average: 80% fixed income funds average, 14% general equity funds average, and 6% international funds average. Derived from data provided by Lipper Inc.

Income Composite Index: Weighted 80% Barclays U.S. Aggregate Float Adjusted Index, 14% MSCI US Broad Market Index, and 6% MSCI ACWI ex USA IMI Index as of December 1, 2011. In prior periods, the composite was 60% Barclays U.S. Aggregate Float Adjusted Index, 20% Barclays U.S. 1–3 Year Credit Bond Index, 14% MSCI US Broad Market Index, and 6% MSCI ACWI ex USA IMI Index through November 30, 2011; 60% Barclays U.S. Aggregate Bond Index (with the Barclays U.S. Aggregate Float Adjusted Index used after December 31, 2009), 20% MSCI US Broad Market Index, and 20% Barclays U.S. 1–3 Year Credit Bond Index through December 15, 2010; 60% Barclays U.S. Aggregate Bond Index, 20% Dow Jones U.S. Total Stock Market Index, and 20% Barclays U.S. 1–3 Year Credit Bond Index through April 22, 2005; and 60% Barclays U.S. Aggregate Bond Index, 20% Dow Jones U.S. Total Stock Market Index, and 20% Citigroup 3-Month Treasury Bill Index through August 31, 2003. MSCI international benchmark returns are adjusted for withholding taxes.

Moderate Growth Composite Average: 42% general equity funds average, 40% fixed income funds average, and 18% international funds average. Derived from data provided by Lipper Inc.

52


 

Moderate Growth Composite Index: Weighted 42% MSCI US Broad Market Index, 40% Barclays U.S. Aggregate Float Adjusted Index, and 18% MSCI ACWI ex USA IMI Index as of December 16, 2010. In prior periods, the composite was 50% MSCI US Broad Market Index, 40% Barclays U.S. Aggregate Bond Index (with the Barclays U.S. Aggregate Float Adjusted Index used after December 31, 2009), and 10% MSCI EAFE Index through December 15, 2010, and 50% Dow Jones U.S. Total Stock Market Index, 40% Barclays U.S. Aggregate Bond Index, and 10% MSCI EAFE Index through April 22, 2005. MSCI international benchmark returns are adjusted for withholding taxes.

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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 180 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. 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.

InterestedTrustee1 and Delphi Automotive LLP (automotive components);
  Senior Advisor at New Mountain Capital; Trustee of
F. William McNabb III The Conference Board.
Born 1957. Trustee Since July 2009. Chairman of the  
Board. Principal Occupation(s) During the Past Five Amy Gutmann
Years: Chairman of the Board of The Vanguard Group, Born 1949. Trustee Since June 2006. Principal
Inc., and of each of the investment companies served Occupation(s) During the Past Five Years: President
by The Vanguard Group, since January 2010; Director of the University of Pennsylvania; Christopher H.
of The Vanguard Group since 2008; Chief Executive Browne Distinguished Professor of Political Science
Officer and President of The Vanguard Group and of in the School of Arts and Sciences with secondary
each of the investment companies served by The appointments at the Annenberg School for
Vanguard Group since 2008; Director of Vanguard Communication and the Graduate School of Education
Marketing Corporation; Managing Director of The of the University of Pennsylvania; Member of the
Vanguard Group (1995–2008). National Commission on the Humanities and Social
  Sciences; Trustee of Carnegie Corporation of New
IndependentTrustees  York and of the National Constitution Center; Chair
of the U. S. Presidential Commission for the Study
Emerson U. Fullwood of Bioethical Issues.
Born 1948. Trustee Since January 2008. Principal  
Occupation(s) During the Past Five Years: Executive JoAnn Heffernan Heisen
Chief Staff and Marketing Officer for North America Born 1950. Trustee Since July 1998. Principal
and Corporate Vice President (retired 2008) of Xerox Occupation(s) During the Past Five Years: Corporate
Corporation (document management products and Vice President and Chief Global Diversity Officer
services); Executive in Residence and 2010 (retired 2008) and Member of the Executive
Distinguished Minett Professor at the Rochester Committee (1997–2008) of Johnson & Johnson
Institute of Technology; Director of SPX Corporation (pharmaceuticals/medical devices/consumer
(multi-industry manufacturing), the United Way of products); Director of Skytop Lodge Corporation
Rochester, Amerigroup Corporation (managed health (hotels), the University Medical Center at Princeton,
care), the University of Rochester Medical Center, the Robert Wood Johnson Foundation, and the Center
Monroe Community College Foundation, and North for Talent Innovation; Member of the Advisory Board
Carolina A&T University. of the Maxwell School of Citizenship and Public Affairs
  at Syracuse University.
Rajiv L. Gupta  
Born 1945. Trustee Since December 2001.2 F. Joseph Loughrey
Principal Occupation(s) During the Past Five Years: Born 1949. Trustee Since October 2009. Principal
Chairman and Chief Executive Officer (retired 2009) Occupation(s) During the Past Five Years: President
and President (2006–2008) of Rohm and Haas Co. and Chief Operating Officer (retired 2009) of Cummins
(chemicals); Director of Tyco International, Ltd. Inc. (industrial machinery); Director of SKF AB
(diversified manufacturing and services), Hewlett- (industrial machinery), Hillenbrand, Inc. (specialized
Packard Co. (electronic computer manufacturing), consumer services), the Lumina Foundation for

 


 

Education, and Oxfam America; Chairman of the Executive Officers  
Advisory Council for the College of Arts and Letters    
and Member of the Advisory Board to the Kellogg Glenn Booraem  
Institute for International Studies at the University Born 1967. Controller Since July 2010. Principal
of Notre Dame. Occupation(s) During the Past Five Years: Principal
  of The Vanguard Group, Inc.; Controller of each of
Mark Loughridge the investment companies served by The Vanguard
Born 1953. Trustee Since March 2012. Principal Group; Assistant Controller of each of the investment
Occupation(s) During the Past Five Years: Senior Vice companies served by The Vanguard Group (2001–2010).
President and Chief Financial Officer at IBM (information    
technology services); Fiduciary Member of IBM’s Thomas J. Higgins  
Retirement Plan Committee. Born 1957. Chief Financial Officer Since September
  2008. Principal Occupation(s) During the Past Five
Scott C. Malpass Years: Principal of The Vanguard Group, Inc.; Chief
Born 1962. Trustee Since March 2012. Principal Financial Officer of each of the investment companies
Occupation(s) During the Past Five Years: Chief served by The Vanguard Group; Treasurer of each of
Investment Officer and Vice President at the University the investment companies served by The Vanguard
of Notre Dame; Assistant Professor of Finance at the Group (1998–2008).  
Mendoza College of Business at Notre Dame; Member    
of the Notre Dame 403(b) Investment Committee; Kathryn J. Hyatt  
Director of TIFF Advisory Services, Inc. (investment Born 1955. Treasurer Since November 2008. Principal
advisor); Member of the Investment Advisory Occupation(s) During the Past Five Years: Principal of
Committees of the Financial Industry Regulatory The Vanguard Group, Inc.; Treasurer of each of the
Authority (FINRA) and of Major League Baseball. investment companies served by The Vanguard
  Group; Assistant Treasurer of each of the investment
André F. Perold companies served by The Vanguard Group (1988–2008).
Born 1952. Trustee Since December 2004. Principal    
Occupation(s) During the Past Five Years: George Heidi Stam  
Gund Professor of Finance and Banking at the Harvard Born 1956. Secretary Since July 2005. Principal
Business School (retired 2011); Chief Investment Occupation(s) During the Past Five Years: Managing
Officer and Managing Partner of HighVista Strategies Director of The Vanguard Group, Inc.; General Counsel
LLC (private investment firm); Director of Rand of The Vanguard Group; Secretary of The Vanguard
Merchant Bank; Overseer of the Museum of Fine Group and of each of the investment companies
Arts Boston. served by The Vanguard Group; Director and Senior
  Vice President of Vanguard Marketing Corporation.
Alfred M. Rankin, Jr.    
Born 1941. Trustee Since January 1993. Principal Vanguard Senior ManagementTeam
Occupation(s) During the Past Five Years: Chairman,
President, and Chief Executive Officer of NACCO Mortimer J. Buckley Michael S. Miller
Industries, Inc. (forklift trucks/housewares/lignite); Kathleen C. Gubanich James M. Norris
Director of Goodrich Corporation (industrial products/ Paul A. Heller Glenn W. Reed
aircraft systems and services) and the National Martha G. King George U. Sauter
Association of Manufacturers; Chairman of the Board Chris D. McIsaac  
of the Federal Reserve Bank of Cleveland and of    
University Hospitals of Cleveland; Advisory Chairman Chairman Emeritus and Senior Advisor
of the Board of The Cleveland Museum of Art.
  John J. Brennan  
Peter F. Volanakis Chairman, 1996–2009  
Born 1955. Trustee Since July 2009. Principal Chief Executive Officer and President, 1996–2008
Occupation(s) During the Past Five Years: President    
and Chief Operating Officer (retired 2010) of Corning    
Incorporated (communications equipment); Director Founder  
of SPX Corporation (multi-industry manufacturing);    
Overseer of the Amos Tuck School of Business John C. Bogle
Administration at Dartmouth College; Advisor to the Chairman and Chief Executive Officer, 1974–1996
Norris Cotton Cancer Center.    

 

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.


 

 

 
P.O. Box 2600
Valley Forge, PA 19482-2600

 

Connect with Vanguard® > vanguard.com

 

Fund Information > 800-662-7447  
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With Hearing Impairment > 800-749-7273  
 
This material may be used in conjunction  
with the offering of shares of any Vanguard  
fund only if preceded or accompanied by  
the fund’s current prospectus.  
 
All comparative mutual fund data are from Lipper Inc. or  
Morningstar, Inc., unless otherwise noted.  
 
You can obtain a free copy of Vanguard’s proxy voting  
guidelines by visiting vanguard.com/proxyreporting or by  
calling Vanguard at 800-662-2739. The guidelines are  
also available from the SEC’s website, sec.gov. In  
addition, you may obtain a free report on how your fund  
voted the proxies for securities it owned during the 12  
months ended June 30. To get the report, visit either  
vanguard.com/proxyreporting or sec.gov.  
 
You can review and copy information about your fund at  
the SEC’s Public Reference Room in Washington, D.C. To  
find out more about this public service, call the SEC at  
202-551-8090. Information about your fund is also  
available on the SEC’s website, and you can receive  
copies of this information, for a fee, by sending a  
request in either of two ways: via e-mail addressed to  
publicinfo@sec.gov or via regular mail addressed to the  
Public Reference Section, Securities and Exchange  
Commission, Washington, DC 20549-1520.  
  © 2012 The Vanguard Group, Inc.
  All rights reserved.
  Vanguard Marketing Corporation, Distributor.
 
  Q880 122012

 


 

Annual Report | October 31, 2012
 
Vanguard Total International
Stock Index Fund

 



 

> Vanguard Total International Stock Index Fund’s Investor Shares returned 5.32% for the fiscal year ended October 31, 2012, slightly below the 5.88% average return of competing international funds.

> Because of temporary price differences arising from fair-value pricing policies, the fund’s return diverged from that of its benchmark index.

> International stocks trailed the U.S. stock market for the period.

Contents  
Your Fund’s Total Returns. 1
Chairman’s Letter. 2
Fund Profile. 10
Performance Summary. 12
Financial Statements. 16
Your Fund’s After-Tax Returns. 39
About Your Fund’s Expenses. 40
Glossary. 42

 


Total International Stock Index Fund

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. 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.

About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.


 

Your Fund’s Total Returns

Fiscal Year Ended October 31, 2012  
 
  Total
  Returns
Vanguard Total International Stock Index Fund  
Investor Shares 5.32%
Admiral™ Shares 5.43
Signal® Shares 5.44
Institutional Shares 5.46
Institutional Plus Shares 5.48
ETF Shares  
Market Price 5.38
Net Asset Value 5.43
MSCI ACWI ex USA IMI Index 4.06
International Funds Average 5.88
International Funds Average: Derived from data provided by Lipper Inc.  

 

Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements. Signal Shares, Institutional Shares, and Institutional Plus Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. The Vanguard ETF® Shares shown are traded on the Nasdaq exchange and are available only through brokers. The table provides ETF returns based on both the Nasdaq market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646.

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 Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.

1


 

 

 

 

Chairman’s Letter

Dear Shareholder,

International stock markets recovered modestly in the 12 months ended October 31, 2012, after suffering losses a year earlier.

For the fiscal year, Vanguard Total International Stock Index Fund’s Investor Shares returned 5.32%, slightly lagging the 5.88% average return of the fund’s international peers. The fund’s other share classes earned slightly higher returns because of their lower expense ratios. The fund seeks to track the return of its benchmark index. However, because of temporary price differences arising from fair-value pricing policies (please see the text box on page 6), the fund’s return diverged from that of its benchmark, which is not adjusted for fair value.

If you own the fund in a taxable account, you may wish to review the table of after-tax returns that appears later in this report.

Your fund will seek to track a new benchmark index
In early October, we announced that Vanguard Total International Stock Index Fund would change its benchmark to the FTSE Global All Cap ex US Index, a transition that is expected to produce significant long-term savings for Vanguard clients. We plan to complete the transition by mid-2013.

2


 

Vanguard has used indexes from FTSE, a global leader in the field, since 2003, and the new benchmark will incorporate what we consider to be best practices in index construction. Our analysis of the fund’s current benchmark, the MSCI All Country World ex USA Investable Market Index, and the new FTSE benchmark suggests that most differences between the two are minor.

U.S. stocks led the advance for global equity markets
U.S. stocks returned about 14% for the 12 months ended October 31, putting domestic equities ahead of their international counterparts. Stocks in Europe and Asia posted more moderate results.

The advances came amid moves by U.S. and European central bankers to manage risks to the U.S. economy and the finances of European governments and banks. The president of the European Central Bank declared in July that policymakers would do whatever was needed to preserve the euro common currency.

Although investors’ worries have eased, Europe’s financial troubles are by no means resolved. Vanguard economists believe the most likely scenario is that the Eurozone will “muddle through” for several years, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.

Market Barometer      
 
    Average Annual Total Returns
    Periods Ended October 31, 2012
  One Three Five
  Year Years Years
Stocks      
Russell 1000 Index (Large-caps) 14.97% 13.48% 0.53%
Russell 2000 Index (Small-caps) 12.08 14.82 1.19
Dow Jones U.S. Total Stock Market Index 14.45 13.62 0.75
MSCI All Country World Index ex USA (International) 3.98 3.74 -5.08
 
Bonds      
Barclays U.S. Aggregate Bond Index (Broad taxable market) 5.25% 6.08% 6.38%
Barclays Municipal Bond Index (Broad tax-exempt market) 9.03 6.84 6.02
Citigroup Three-Month U.S. Treasury Bill Index 0.06 0.08 0.56
 
CPI      
Consumer Price Index 2.16% 2.28% 2.06%

 

3


 

Bonds continued their march, but leaner times may lie ahead
The broad U.S. taxable bond market returned about 5% for the 12 months. Municipal bonds delivered a robust performance, returning about 9%.

As bond prices rose, the yield of the 10-year U.S. Treasury note fell to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite directions.) By the end of the period, the yield had climbed, but it still remained exceptionally low by historical standards.

Bondholders have enjoyed years of healthy returns. But as Tim Buckley, our incoming chief investment officer, has noted, investors shouldn’t be surprised if future results are much more modest. As yields remain low, the opportunity for similarly strong returns diminishes.

The Federal Reserve announced on September 13 that it would continue to hold its target for short-term interest rates between 0% and 0.25% at least through mid-2015. The exceptionally low rates, in place since late 2008, kept a tight lid on returns from money market funds and savings accounts.

Expense Ratios            
Your Fund Compared With Its Peer Group          
            Peer
  Investor Admiral Signal Institutional Institutional ETF Group
  Shares Shares Shares Shares Plus  Shares Shares Average
Total International Stock Index            
Fund 0.22% 0.18% 0.18% 0.13%   0.10% 0.18% 1.37%

The fund expense ratios shown are from the prospectus dated February 27, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended October 31, 2012, the fund’s expense ratios were 0.22% for Investor Shares, 0.16% for Admiral Shares, 0.16% for Signal Shares, 0.12% for Institutional Shares, 0.10% for Institutional Plus Shares, and 0.16% for ETF Shares. The peer-group expense ratio is derived from data provided by Lipper Inc. and captures information through year-end 2011.

Peer group: International Funds.

4


 

Europe’s developed markets delivered the strongest results
The Total International Stock Index Fund provides exposure to stocks in the emerging and developed world. During the fiscal year, the fund’s four largest exposures—Europe, emerging markets, the Pacific region, and North America—produced returns ranging from about 2% for the Pacific region to about 7% for Europe. The Middle East, which represented less than half of 1% of the fund’s holdings, produced a negative return. The strength of the U.S. dollar relative to the euro and the yen restrained returns, because some holdings lost value when converted into dollars.

In stark contrast to a year ago, developed markets in Europe, the index’s largest weighting, were the star performers. The United Kingdom, Germany, and Switzerland contributed the most to the fund’s overall return. Financial and consumer staples holdings led the way in the United Kingdom, the region’s largest market. In Germany and Switzerland, health care stocks—mostly those of multinational pharmaceutical companies—performed the best.

Total Returns  
Ten Years Ended October 31, 2012  
  Average
  Annual Return
Total International Stock Index Fund Investor Shares 8.89%
Spliced Total International Stock Index 8.96
International Funds Average 7.34
For a benchmark description, see the Glossary.  
International Funds Average: Derived from data provided by Lipper Inc.  

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our 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.

5


 

A note on fair-value pricing

The return of a fund that tracks an index sometimes diverges from the index’s return a bit more than would be expected. This may be the result of a fair-value pricing adjustment.

These 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.

European countries embroiled in sovereign-debt problems continued to struggle. Spain, Italy, Portugal, and Greece reported negative returns for the period. Within those countries, the financial, utilities, and telecommunication services sectors reported the worst declines.

Beyond Europe, emerging markets delivered the best results. Investors’ recent willingness to take on risk helped some of these stocks recover from last year’s slowdown.

China, the largest of the emerging markets, contributed the most to the fund’s return, with double-digit gains in several sectors, including financials and information technology. Mexico and South Africa also did well. Consumer staples and materials stocks stood out in Mexico, as did consumer discretionary and financial stocks in South Africa.

But Brazil and India, two favorites in the emerging market universe, continued to detract from the fund’s return. Brazil’s materials and energy sectors suffered from slower demand and weaker commodity prices. India’s tech sector has come under pressure as developed markets have clamped down on IT outsourcing.

Within the North America category, Canada turned in results similar to those of emerging markets. Its financial and industrial sectors did well, but materials stumbled.

6


 

Developed markets in the Pacific region—the second-largest allocation in the fund on average—produced results that were among the weakest. Japan, which accounted for about 15% of the fund’s holdings, on average, returned –3% for the fiscal year. Its technology and materials sectors posted some of the poorest results, hurt by the country’s continued economic slowdown and recent tension with China over a disputed territory. Boycotts of Japanese products in China buffeted the stocks of Japanese companies, including electronics manufacturers.

International stocks have delivered impressive long-term results
For the ten years ended October 31, 2012, the Total International Stock Index Fund returned an average of 8.89% annually. The fund has tracked its index closely, even though the benchmark’s return reflects no operating or transaction costs. In addition, the fund’s average annual return has surpassed that of its peer group and the broad U.S. stock market.

The fund’s success is a tribute to the skill of its investment advisor, Vanguard’s Equity Investment Group, whose proficiency in portfolio construction and management techniques reflects more than 30 years of indexing experience.

Benefits of broad diversification hold true across the globe
As I noted earlier, and as you’ve seen in the headlines, Europe faces profound financial challenges. We’ve received questions during the year from clients concerned about both the outlook for the region and the wisdom of investing in Europe at all. Why not focus investments in countries with the fastest-growing economies?

That strategy has intuitive appeal, but our research suggests that a better approach is to hold a broadly diversified portfolio of international stocks, including European equities, which account for about a quarter of global market capitalization. We’ve found that concentrated international investments can lead to higher volatility in a portfolio, often without producing higher returns.

Another insight from Vanguard experts: Surprising as it may seem, there has been little connection historically between a country’s economic growth rate and its stock returns. For example, the returns for U.S. and British stocks were nearly identical from 1900 to 2009, even as U.S. economic growth eclipsed that of Great Britain. (See Investing in Emerging Markets: Evaluating the Allure of Rapid Economic Growth, available at vanguard. com/research.)

7


 

Of course, no one can say for sure what future returns will be for a particular country’s stocks. That’s one of the reasons we consistently embrace broad diversification, which is a time-tested way to help manage the risks of investing both at home and abroad.

Thank you for entrusting your assets to Vanguard.

Sincerely,


F. William McNabb III
Chairman and Chief Executive Officer
November 12, 2012

8


 

Your Fund’s Performance at a Glance        
October 31, 2011, Through October 31, 2012        
      Distributions Per Share
  Starting Ending Income Capital
  Share Price Share Price Dividends Gains
Vanguard Total International Stock Index Fund        
Investor Shares $14.24 $14.31 $0.640 $0.000
Admiral Shares 23.81 23.94 1.081 0.000
Signal Shares 28.57 28.72 1.306 0.000
Institutional Shares 95.29 95.75 4.406 0.000
Institutional Plus Shares 95.31 95.77 4.428 0.000
ETF Shares 44.33 44.53 2.048 0.000

 

9


 

Total International Stock Index Fund

Fund Profile
As of October 31, 2012

Share-Class Characteristics            
  Investor Admiral Signal Institutional Institutional ETF
  Shares Shares Shares Shares Plus Shares Shares
Ticker Symbol VGTSX VTIAX VTSGX VTSNX VTPSX VXUS
Expense Ratio1 0.22% 0.18% 0.18% 0.13% 0.10% 0.18%

 

Portfolio Characteristics    
      MSCI AC
    MSCI ACWI World
    ex USA IMI Index
  Fund Index ex USA
Number of Stocks 6,269 6,122 1,832
Median Market Cap $22.6B $22.5B $28.0B
Price/Earnings Ratio 14.9x 14.9x 14.4x
Price/Book Ratio 1.4x 1.4x 1.4x
Return on Equity 16.2% 16.2% 16.9%
Earnings Growth Rate 4.9% 5.0% 4.9%
Dividend Yield 3.3% 3.3% 3.4%
Turnover Rate 3%
Short-Term Reserves -0.1%

 

Sector Diversification (% of equity exposure)
    MSCI MSCI AC
    ACWI World
    ex USA IMI Index
  Fund Index ex USA
Consumer Discretionary 10.2% 10.1% 9.1%
Consumer Staples 10.0 10.0 10.4
Energy 10.4 10.4 10.9
Financials 24.4 24.5 25.1
Health Care 7.1 7.1 7.4
Industrials 11.4 11.5 10.5
Information Technology 6.6 6.5 6.2
Materials 11.3 11.3 11.1
Telecommunication      
Services 5.1 5.1 5.6
Utilities 3.5 3.5 3.7

 

Volatility Measures    
  Spliced  
  Total MSCI AC
  International World Index
  Stock Index ex USA
R-Squared 0.99 0.99
Beta 1.02 1.03

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

 

 

Ten Largest Holdings (% of total net assets)
Royal Dutch Shell plc Integrated Oil & Gas 1.3%
Nestle SA Packaged Foods &  
  Meats 1.2
BHP Billiton Ltd. Diversified Metals &  
  Mining 1.1
HSBC Holdings plc Diversified Banks 1.0
Samsung Electronics Co.    
Ltd. Semiconductors 0.9
Novartis AG Pharmaceuticals 0.8
BP plc Integrated Oil & Gas 0.8
Roche Holding AG Pharmaceuticals 0.8
Vodafone Group plc Wireless  
  Telecommunication  
  Services 0.8
GlaxoSmithKline plc Pharmaceuticals 0.6
Top Ten   9.3%

The holdings listed exclude any temporary cash investments and equity index products.

1 The expense ratios shown are from the prospectus dated February 27, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended October 31, 2012, the expense ratios were 0.22% for Investor Shares, 0.16% for Admiral Shares, 0.16% for Signal Shares, 0.12% for Institutional Shares, 0.10% for Institutional Plus Shares, and 0.16% for ETF Shares.

10


 

Total International Stock Index Fund

Market Diversification (% of equity exposure)
    MSCI  
    ACWI MSCI AC
    ex USA World
    IMI Index
  Fund Index ex USA
Europe      
United Kingdom 16.0% 15.6% 15.8%
France 6.0 5.9 6.4
Germany 5.7 5.7 5.9
Switzerland 5.6 5.6 6.0
Sweden 2.1 2.1 2.1
Spain 1.9 1.9 2.0
Netherlands 1.7 1.7 1.7
Italy 1.6 1.6 1.5
Other 3.7 3.7 3.3
Subtotal 44.3% 43.8% 44.7%
Pacific      
Japan 13.9% 13.9% 13.3%
Australia 6.2 6.2 6.2
Hong Kong 2.1 2.1 2.1
Singapore 1.3 1.4 1.3
Other 0.1 0.1 0.1
Subtotal 23.6% 23.7% 23.0%
Emerging Markets      
China 4.3% 4.3% 4.4%
South Korea 3.6 3.6 3.6
Brazil 2.8 2.8 3.0
Taiwan 2.7 2.7 2.5
South Africa 1.8 1.8 1.8
India 1.6 1.6 1.6
Russia 1.2 1.2 1.4
Mexico 1.1 1.1 1.2
Other 4.1 4.4 4.2
Subtotal 23.2% 23.5% 23.7%
North America      
Canada 8.5% 8.5% 8.2%
Middle East 0.4% 0.5% 0.4%

 

11


 

Total International Stock Index Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


 
      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  Total International Stock Index Fund        
  Investor Shares 5.32% -5.50% 8.89% $23,441
  Spliced Total International Stock        
••••••• Index 4.06 -5.34 8.96 23,590
 
– – – – International Funds Average 5.88 -5.82 7.34 20,302
  MSCI All Country World Index ex        
  USA 4.48 -4.63 9.79 25,440
For a benchmark description, see the Glossary.        
International Funds Average: Derived from data provided by Lipper Inc.      

 

    Since Final Value
  One Inception of a $10,000
  Year (11/29/2010) Investment
Total International Stock Index Fund Admiral      
Shares 5.43% 1.05% $10,202
Spliced Total International Stock Index 4.06 1.17 10,226
MSCI All Country World Index ex USA 4.48 1.51 10,291
"Since Inception" performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standards.

 

See Financial Highlights for dividend and capital gains information.

12


 

Total International Stock Index Fund

  Average Annual Total Returns  
  Periods Ended October 31, 2012  
    Since Final Value
  One Inception of a $10,000
  Year (11/30/2010) Investment
Total International Stock Index Fund Signal      
Shares 5.44% 1.64% $10,316
Spliced Total International Stock Index 4.06 1.50 10,290
MSCI All Country World Index ex USA 4.48 2.08 10,404
"Since Inception" performance is calculated from the Signal Shares’ inception date for both the fund and its comparative standards.

 

    Since Final Value
  One Inception of a $5,000,000
  Year (11/29/2010) Investment
Total International Stock Index Fund      
Institutional Shares 5.46% 1.09% $5,105,289
Spliced Total International Stock Index 4.06 1.17 5,113,109
MSCI All Country World Index ex USA 4.48 1.50 5,144,607
"Since Inception" performance is calculated from the Institutional Shares’ inception date for both the fund and its comparative standards.

 

    Since Final Value
  One Inception of a $100,000,000
  Year (11/30/2010) Investment
Total International Stock Index Fund      
Institutional Plus Shares 5.48% 1.70% $103,287,731
Spliced Total International Stock Index 4.06 1.50 102,897,006
MSCI All Country World Index ex USA 4.48 2.08 104,036,539
"Since Inception" performance is calculated from the Institutional Plus Shares’ inception date for both the fund and its comparative standards.

 

13


 

Total International Stock Index Fund

    Since Final Value
  One Inception of a $10,000
  Year (1/26/2011) Investment
Total International Stock Index Fund      
ETF Shares Net Asset Value 5.43% -3.76% $9,347
MSCI ACWI ex USA IMI Index 4.06 -3.78 9,344
MSCI All Country World Index ex USA 4.48 -3.22 9,440
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.

 

Cumulative Returns of ETF Shares: January 26, 2011, Through October 31, 2012  
    Since
  One Inception
  Year (1/26/2011)
Total International Stock Index Fund ETF    
Shares Market Price 5.38% -6.35%
Total International Stock Index Fund ETF    
Shares Net Asset Value 5.43 -6.53
MSCI ACWI ex USA IMI Index 4.06 -6.56
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.

 

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


14


 

Total International Stock Index Fund

Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

  Inception One Five Ten
  Date Year Years Years
Investor Shares 4/29/1996 15.43% -4.52% 9.44%
Admiral Shares 11/29/2010 15.43 0.771
Signal Shares 11/30/2010 15.44 1.381
Institutional Shares 11/29/2010 15.51 0.821
Institutional Plus Shares 11/30/2010 15.54 1.461
ETF Shares 1/26/2011      
 Market Price   15.53 -4.351
Net Asset Value   15.49 -4.271
1 Return since inception.        

 

15


 

Total International Stock Index Fund

Financial Statements

Statement of Net Assets—Investments Summary
As of October 31, 2012

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

The fund 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 complete listing of the fund’s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission’s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market Percentage
    Value of Net
  Shares ($000) Assets
Common Stocks      
Argentina †   5,264 0.0%
 
Australia      
BHP Billiton Ltd. 14,025,717 496,589 0.7%
Commonwealth Bank of Australia 6,925,484 414,739 0.6%
Westpac Banking Corp. 13,289,021 351,336 0.5%
Australia & New Zealand Banking Group Ltd. 11,655,966 307,501 0.4%
National Australia Bank Ltd. 9,740,634 260,317 0.3%
Australia—Other †   2,814,934 3.7%
    4,645,416 6.2%
 
1 Austria †   181,092 0.2%
 
Belgium      
Anheuser-Busch InBev NV 3,493,100 292,134 0.4%
Belgium—Other †   300,911 0.4%
    593,045 0.8%
 
Brazil †   2,082,390 2.8%
 
Canada      
Royal Bank of Canada 6,263,563 357,094 0.5%
Toronto-Dominion Bank 3,959,513 322,034 0.4%
Bank of Nova Scotia 4,787,442 260,044 0.4%
Suncor Energy Inc. 6,786,390 227,765 0.3%
Canada—Other †   5,212,646 6.9%
    6,379,583 8.5%
 
Chile †   328,665 0.4%

 

16


 

Total International Stock Index Fund

      Market Percentage
      Value of Net
    Shares ($000) Assets
China      
  China Mobile Ltd. 26,210,500 290,720 0.4%
  China Construction Bank Corp. 313,727,340 235,191 0.3%
  Industrial & Commercial Bank of China Ltd. 283,177,760 186,472 0.3%
  CNOOC Ltd. 77,702,000 159,909 0.2%
  Bank of China Ltd. 327,541,306 134,188 0.2%
  PetroChina Co. Ltd. 91,726,000 124,465 0.2%
  China Life Insurance Co. Ltd. 32,380,000 95,214 0.1%
  China Petroleum & Chemical Corp. 73,006,000 76,939 0.1%
  China Shenhua Energy Co. Ltd. 14,787,000 62,655 0.1%
  China Overseas Land & Investment Ltd. 17,793,680 46,332 0.1%
  Agricultural Bank of China Ltd. 93,498,870 40,285 0.1%
  China Telecom Corp. Ltd. 60,460,000 35,771 0.1%
  China Unicom Hong Kong Ltd. 20,531,694 33,100 0.1%
  Kunlun Energy Co. Ltd. 13,992,300 25,901 0.1%
  China Resources Land Ltd. 8,842,000 20,057 0.0%
  China Communications Construction Co. Ltd. 19,254,000 17,972 0.0%
  China Coal Energy Co. Ltd. 17,849,000 17,638 0.0%
  China Resources Power Holdings Co. Ltd. 8,233,600 17,605 0.0%
  China Resources Enterprise Ltd. 5,222,000 16,919 0.0%
  China Citic Bank Corp. Ltd. 32,325,446 16,425 0.0%
  China Merchants Holdings International Co. Ltd. 4,854,000 16,012 0.0%
  Dongfeng Motor Group Co. Ltd. 11,730,000 14,508 0.0%
  China Oilfield Services Ltd. 6,656,000 12,559 0.0%
  Sinopharm Group Co. Ltd. 3,430,800 11,497 0.0%
  China State Construction International Holdings Ltd. 7,671,442 9,093 0.0%
  China Railway Group Ltd. 17,512,000 8,878 0.0%
^ China Railway Construction Corp. Ltd. 8,664,800 8,560 0.0%
  China Resources Gas Group Ltd. 3,177,000 7,027 0.0%
^ Citic Pacific Ltd. 5,521,000 7,012 0.0%
* China Taiping Insurance Holdings Co. Ltd. 3,755,200 6,404 0.0%
^ CSR Corp. Ltd. 8,227,000 6,352 0.0%
  China Longyuan Power Group Corp. 9,352,000 6,066 0.0%
  Zhuzhou CSR Times Electric Co. Ltd. 2,013,000 5,886 0.0%
  Air China Ltd. 8,304,000 5,867 0.0%
  China Communications Services Corp. Ltd. 10,401,600 5,845 0.0%
  China Resources Cement Holdings Ltd. 8,595,845 5,811 0.0%
^,* China COSCO Holdings Co. Ltd. 11,017,500 5,438 0.0%
  Beijing Capital International Airport Co. Ltd. 8,098,000 5,196 0.0%
  China BlueChemical Ltd. 7,558,000 4,772 0.0%
  Franshion Properties China Ltd. 15,218,000 4,633 0.0%
  China Agri-Industries Holdings Ltd. 7,158,000 4,461 0.0%
  China Southern Airlines Co. Ltd. 8,008,000 3,776 0.0%
  AviChina Industry & Technology Co. Ltd. 8,744,000 3,579 0.0%
  Dah Chong Hong Holdings Ltd. 3,659,000 3,436 0.0%
  Sinopec Shanghai Petrochemical Co. Ltd. 10,406,000 2,969 0.0%
^,* Angang Steel Co. Ltd. 4,882,000 2,909 0.0%
* MMG Ltd. 6,728,000 2,658 0.0%
^ China Power International Development Ltd. 9,549,000 2,594 0.0%
  China Travel International Inv HK 12,500,000 2,411 0.0%
^ Dongfang Electric Corp. Ltd. 1,416,800 2,361 0.0%
  Harbin Electric Co. Ltd. 2,830,000 2,329 0.0%
^,* Metallurgical Corp. of China Ltd. 12,285,000 2,274 0.0%
^ Sinopec Kantons Holdings Ltd. 2,782,000 2,071 0.0%
  Sinofert Holdings Ltd. 9,780,000 2,059 0.0%

 

17


 

Total International Stock Index Fund

    Market Percentage
    Value of Net
  Shares ($000) Assets
* Citic Resources Holdings Ltd. 11,566,600 1,766 0.0%
^ Sinotrans Shipping Ltd. 5,950,500 1,455 0.0%
Hangzhou Steam Turbine Co. Class B 1,108,836 1,237 0.0%
^ China Datang Corp. Renewable Power Co. Ltd. 10,414,000 1,136 0.0%
Sinotrans Ltd. 7,320,000 1,130 0.0%
Cosco International Holdings Ltd. 2,774,000 1,121 0.0%
* Tianjin Development Hldgs Ltd. 1,980,000 940 0.0%
^ CPMC Holdings Ltd. 1,142,000 804 0.0%
Minmetals Land Ltd. 4,984,000 672 0.0%
Shanghai Baosight Software Co. Ltd. Class B 578,670 621 0.0%
Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd. Class B 761,560 518 0.0%
Tianjin Capital Environmental Protection Group Co. Ltd. 1,360,000 316 0.0%
Overseas Chinese Town Asia Holdings Ltd. 860,000 314 0.0%
Catic Shenzhen Holdings Ltd. 800,000 293 0.0%
China—Other †   1,327,272 1.8%
    3,190,656 4.2%
 
Colombia †   80,084 0.1%
 
Czech Republic †   55,338 0.1%
 
Denmark      
Novo Nordisk A/S Class B 1,771,488 283,997 0.4%
Denmark—Other †   346,615 0.4%
    630,612 0.8%
 
Egypt †   25,149 0.0%
 
Exchange-Traded Funds      
2 Vanguard MSCI Emerging Markets ETF 2,800,000 116,172 0.2%
 
Finland †   436,184 0.6%
 
France      
Total SA 9,253,629 466,111 0.6%
Sanofi 5,171,210 454,178 0.6%
BNP Paribas SA 4,202,720 212,008 0.3%
France—Other †   3,312,606 4.4%
    4,444,903 5.9%
Germany      
Siemens AG 3,578,905 360,609 0.5%
BASF SE 3,995,158 331,403 0.4%
Bayer AG 3,597,021 313,638 0.4%
SAP AG 4,006,397 292,161 0.4%
Allianz SE 1,980,444 246,023 0.3%
Germany—Other †   2,703,919 3.6%
    4,247,753 5.6%
 
Greece †   78,912 0.1%
 
Hong Kong      
Hang Seng Bank Ltd. 3,320,350 50,890 0.1%
BOC Hong Kong Holdings Ltd. 16,076,539 49,292 0.1%
Citic Telecom International Holdings Ltd. 4,437,000 1,023 0.0%
Hong Kong—Other †   1,485,365 1.9%
    1,586,570 2.1%

 

18


 

Total International Stock Index Fund

    Market Percentage
    Value of Net
  Shares ($000) Assets
Hungary †   51,053 0.1%
 
India †   1,214,699 1.6%
 
Indonesia †   521,346 0.7%
 
Ireland †   196,908 0.3%
 
Israel      
Osem Investments Ltd. 137,494 2,076 0.0%
Israel—Other †   330,404 0.4%
    332,480 0.4%
Italy      
Eni SPA 11,065,473 254,629 0.4%
Italy—Other †   928,984 1.2%
    1,183,613 1.6%
 
Japan      
Toyota Motor Corp. 11,998,371 462,623 0.6%
Mitsubishi UFJ Financial Group Inc. 55,413,602 250,689 0.3%
Honda Motor Co. Ltd. 7,091,393 213,190 0.3%
Japan—Other †   9,489,767 12.6%
    10,416,269 13.8%
 
1 Malaysia †   695,276 0.9%
 
Mexico      
America Movil SAB de CV 169,984,269 215,888 0.3%
Mexico—Other †   632,712 0.8%
    848,600 1.1%
 
Morocco †   1,811 0.0%
 
Netherlands      
Unilever NV 7,085,714 260,435 0.4%
Netherlands—Other †   989,536 1.3%
    1,249,971 1.7%
 
New Zealand †   107,937 0.1%
 
Norway †   577,591 0.8%
 
Peru †   112,532 0.2%
 
Philippines †   178,437 0.2%
 
Poland †   256,082 0.3%
 
Portugal †   96,473 0.1%
 
Russia †   927,917 1.2%

 

19


 

Total International Stock Index Fund

    Market Percentage
    Value of Net
  Shares ($000) Assets
Singapore      
^ Cosco Corp. Singapore Ltd. 4,411,513 3,167 0.0%
GMG Global Ltd. 12,624,000 1,300 0.0%
1 Singapore—Other †   1,010,410 1.3%
    1,014,877 1.3%
 
South Africa †   1,373,176 1.8%
 
South Korea      
Samsung Electronics Co. Ltd. 413,889 496,682 0.7%
Hankook Shell Oil Co. Ltd. 2,882 650 0.0%
South Korea—Other †   2,214,666 2.9%
    2,711,998 3.6%
Spain      
* Banco Santander SA 42,830,278 322,481 0.4%
Telefonica SA 17,537,382 231,474 0.3%
Banco Bilbao Vizcaya Argentaria SA 23,412,588 195,636 0.3%
Spain—Other †   665,390 0.9%
    1,414,981 1.9%
 
Sweden †   1,600,777 2.1%
 
Switzerland      
Nestle SA 14,354,194 911,322 1.2%
Novartis AG 10,005,587 603,343 0.8%
Roche Holding AG 3,055,976 588,658 0.8%
UBS AG 15,839,269 237,646 0.3%
Switzerland—Other †   1,840,278 2.5%
    4,181,247 5.6%
 
Taiwan      
Taiwan Semiconductor Manufacturing Co. Ltd. 87,358,063 266,185 0.4%
Taiwan—Other †   1,738,953 2.3%
    2,005,138 2.7%
 
Thailand †   427,143 0.6%
 
Turkey †   346,523 0.5%
 
United Kingdom      
HSBC Holdings plc 78,998,800 778,878 1.0%
BP plc 82,761,657 591,056 0.8%
Vodafone Group plc 214,655,168 582,930 0.8%
GlaxoSmithKline plc 21,819,164 488,916 0.7%
Royal Dutch Shell plc Class A 12,865,183 441,443 0.6%
British American Tobacco plc 8,507,235 421,959 0.6%
Royal Dutch Shell plc Class B 11,501,413 406,836 0.5%
Diageo plc 10,897,542 311,547 0.4%
BHP Billiton plc 9,186,996 294,457 0.4%
Rio Tinto plc 5,830,488 291,273 0.4%
BG Group plc 14,775,455 274,336 0.4%
AstraZeneca plc 5,495,518 254,855 0.3%
Standard Chartered plc 10,404,218 246,338 0.3%

 

20


 

Total International Stock Index Fund

        Market Percentage
        Value of Net
      Shares ($000) Assets
  Unilever plc   5,582,818 208,258 0.3%
  Royal Dutch Shell plc Class A (Amsterdam Shares) 3,211,725 110,103 0.1%
  United Kingdom—Other †     6,091,465 8.1%
        11,794,650 15.7%
Total Common Stocks (Cost $74,607,609)   74,947,293 99.5%3
 
 
    Coupon      
Temporary Cash Investments        
Money Market Fund        
4,5 Vanguard Market Liquidity Fund 0.167% 1,814,282,278 1,814,282 2.4%
 
6,7 U.S. Government and        
  Agency Obligations †     35,006 0.1%
Total Temporary Cash Investments (Cost $1,849,288)   1,849,288 2.5%3
Total Investments (Cost $76,456,897)   76,796,581 102.0%
Other Assets and Liabilities        
Other Assets     333,473 0.4%
Liabilities4     (1,828,895) (2.4%)
        (1,495,422) (2.0%)
Net Assets     75,301,159 100.0%

 

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 76,200,758
Undistributed Net Investment Income 537,959
Accumulated Net Realized Losses (1,772,692)
Unrealized Appreciation (Depreciation)  
Investment Securities 339,684
Futures Contracts (445)
Forward Currency Contracts (727)
Foreign Currencies (3,378)
Net Assets 75,301,159
 
Investor Shares—Net Assets  
Applicable to 2,485,250,935 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 35,563,805
Net Asset Value Per Share—Investor Shares $14.31
 
Admiral Shares—Net Assets  
Applicable to 632,954,695 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 15,153,429
Net Asset Value Per Share—Admiral Shares $23.94

 

21


 

Total International Stock Index Fund

  Amount
  ($000)
Signal Shares—Net Assets  
Applicable to 124,747,710 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 3,582,508
Net Asset Value Per Share—Signal Shares $28.72
 
Institutional Shares—Net Assets  
Applicable to 73,753,925 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 7,062,149
Net Asset Value Per Share—Institutional Shares $95.75
 
Institutional Plus Shares—Net Assets  
Applicable to 135,459,136 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 12,973,249
Net Asset Value Per Share—Institutional Plus Shares $95.77
 
ETF Shares—Net Assets  
Applicable to 21,693,559 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 966,019
Net Asset Value Per Share—ETF Shares $44.53

 

See Note A in Notes to Financial Statements.
^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $1,531,632,000.
* Non-income-producing security.
† Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
1 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, 2012, the aggregate value of these securities was $3,970,000.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 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 99.9% and 2.1%, respectively, of net assets.
4 Includes $1,629,236,000 of collateral received for securities on loan.
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 Securities with a value of $18,999,000 have been segregated as initial margin for open futures contracts.
7 Securities with a value of $1,361,000 have been segregated as collateral for open forward currency contracts.
See accompanying Notes, which are an integral part of the Financial Statements.

22


 

Total International Stock Index Fund

Statement of Operations  
 
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Dividends1,2 2,165,575
Interest2 385
Security Lending 66,683
Total Income 2,232,643
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 3,597
Management and Administrative—Investor Shares 52,210
Management and Administrative—Admiral Shares 15,287
Management and Administrative—Signal Shares 2,862
Management and Administrative—Institutional Shares 3,616
Management and Administrative—Institutional Plus Shares 4,999
Management and Administrative—ETF Shares 748
Marketing and Distribution—Investor Shares 9,062
Marketing and Distribution—Admiral Shares 2,286
Marketing and Distribution—Signal Shares 698
Marketing and Distribution—Institutional Shares 1,482
Marketing and Distribution—Institutional Plus Shares 2,297
Marketing and Distribution—ETF Shares 169
Custodian Fees 16,735
Auditing Fees 43
Shareholders’ Reports—Investor Shares 163
Shareholders’ Reports—Admiral Shares 81
Shareholders’ Reports—Signal Shares 24
Shareholders’ Reports—Institutional Shares 15
Shareholders’ Reports—Institutional Plus Shares 27
Shareholders’ Reports—ETF Shares 22
Trustees’ Fees and Expenses 66
Total Expenses 116,489
Net Investment Income 2,116,154
Realized Net Gain (Loss)  
Investment Securities Sold2 79,715
Futures Contracts 33,497
Foreign Currencies and Forward Currency Contracts (17,614)
Realized Net Gain (Loss) 95,598
Change in Unrealized Appreciation (Depreciation)  
Investment Securities 1,864,047
Futures Contracts (20,014)
Foreign Currencies and Forward Currency Contracts (7,815)
Change in Unrealized Appreciation (Depreciation) 1,836,218
Net Increase (Decrease) in Net Assets Resulting from Operations 4,047,970

1 Dividends are net of foreign withholding taxes of $136,026,000.
2 Dividend income, interest income, and realized net gain (loss) from affiliated companies of the fund were $3,101,000, $385,000, and $0, respectively.
See accompanying Notes, which are an integral part of the Financial Statements.

23


 

Total International Stock Index Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 2,116,154 1,614,521
Realized Net Gain (Loss) 95,598 184,573
Change in Unrealized Appreciation (Depreciation) 1,836,218 (5,954,922)
Net Increase (Decrease) in Net Assets Resulting from Operations 4,047,970 (4,155,828)
Distributions    
Net Investment Income    
Investor Shares (1,475,503) (692,937)
Admiral Shares (624,633) (30,369)
Signal Shares (118,334) (2,547)
Institutional Shares (233,606) (54,999)
Institutional Plus Shares (463,482) (3,919)
ETF Shares (30,244)
Realized Capital Gain    
Investor Shares
Admiral Shares
Signal Shares
Institutional Shares
Institutional Plus Shares
ETF Shares
Total Distributions (2,945,802) (784,771)
Capital Share Transactions    
Investor Shares 4,202,436 (6,415,197)
Admiral Shares 1,841,641 14,860,484
Signal Shares 1,529,294 2,250,992
Institutional Shares 3,154,192 4,315,032
Institutional Plus Shares 5,658,475 7,324,761
ETF Shares 511,210 463,625
Net Increase (Decrease) from Capital Share Transactions 16,897,248 22,799,697
Total Increase (Decrease) 17,999,416 17,859,098
Net Assets    
Beginning of Period 57,301,743 39,442,645
End of Period1 75,301,159 57,301,743
1 Net Assets—End of Period includes undistributed net investment income of $537,959,000 and $1,367,401,000.

 

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

24


 

Total International Stock Index Fund

Financial Highlights

Investor Shares          
 
 
For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $14.24 $15.48 $13.99 $10.97 $21.89
Investment Operations          
Net Investment Income .405 .4341 .3561 .5442 .5401
Net Realized and Unrealized Gain (Loss)          
on Investments .305 (1.425) 1.478 2.801 (10.938)
Total from Investment Operations .710 (.991) 1.834 3.345 (10.398)
Distributions          
Dividends from Net Investment Income (.640) (.249) (.344) (.325) (.522)
Distributions from Realized Capital Gains
Total Distributions (.640) (.249) (.344) (.325) (.522)
Net Asset Value, End of Period $14.31 $14.24 $15.48 $13.99 $10.97
 
Total Return3 5.32% -6.54% 13.28% 31.41% -48.57%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $35,564 $30,912 $39,443 $24,329 $17,152
Ratio of Total Expenses to          
Average Net Assets 0.22% 0.22% 0.26% 0.27% 0.03%
Acquired Fund Fees and Expenses 0.05% 0.25%
Ratio of Net Investment Income to          
Average Net Assets 3.17% 2.95% 2.52% 4.73%2 3.07%
Portfolio Turnover Rate 3% 3% 6% 12%4 15%4

1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $0.249 and 2.06%, respectively, of annual dividends received from Vanguard mutual funds in December 2008. From August 2008 through February 2009, the fund invested in a combination of Vanguard mutual funds and common stocks. Effective in March 2009, the fund’s equity investments are solely in common stocks.
3 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.
4 Excludes the value securities received and mutual fund shares delivered in connection with a change in the fund’s investment policy to invest directly in individual stocks and reduce the fund’s investment in Vanguard mutual funds.

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

25


 

Total International Stock Index Fund

Financial Highlights

Admiral Shares    
  Year Nov. 29,
  Ended 20101 to
  October 31,  October 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $23.81 $25.00
Investment Operations    
Net Investment Income .681 .8422
Net Realized and Unrealized Gain (Loss) on Investments .530 (1.615)
Total from Investment Operations 1.211 (.773)
Distributions    
Dividends from Net Investment Income (1.081) (.417)
Distributions from Realized Capital Gains
Total Distributions (1.081) (.417)
Net Asset Value, End of Period $23.94 $23.81
 
Total Return3 5.43% -3.23%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $15,153 $13,190
Ratio of Total Expenses to Average Net Assets 0.16% 0.18%4
Ratio of Net Investment Income to Average Net Assets 3.23% 2.99%4
Portfolio Turnover Rate 3% 3%

1 Inception.
2 Calculated based on average shares outstanding.
3 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.
4 Annualized.

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

26


 

Total International Stock Index Fund

Financial Highlights

Signal Shares    
  Year Nov. 30,
  Ended 20101 to
  October 31,  October 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $28.57 $29.66
Investment Operations    
Net Investment Income .821 .9312
Net Realized and Unrealized Gain (Loss) on Investments .635 (1.520)
Total from Investment Operations 1.456 (.589)
Distributions    
Dividends from Net Investment Income (1.306) (.501)
Distributions from Realized Capital Gains
Total Distributions (1.306) (.501)
Net Asset Value, End of Period $28.72 $28.57
 
Total Return3 5.44% -2.16%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $3,583 $2,012
Ratio of Total Expenses to Average Net Assets 0.16% 0.18%4
Ratio of Net Investment Income to Average Net Assets 3.23% 2.99%4
Portfolio Turnover Rate 3% 3%

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

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

27


 

Total International Stock Index Fund

Financial Highlights

Institutional Shares    
  Year Nov. 29,
  Ended 20101 to
  October 31,   October 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $95.29 $100.00
Investment Operations    
Net Investment Income 2.818 3.2082
Net Realized and Unrealized Gain (Loss) on Investments 2.048 (6.245)
Total from Investment Operations 4.866 (3.037)
Distributions    
Dividends from Net Investment Income (4.406) (1.673)
Distributions from Realized Capital Gains
Total Distributions (4.406) (1.673)
Net Asset Value, End of Period $95.75 $95.29
 
Total Return3 5.46% -3.18%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $7,062 $3,788
Ratio of Total Expenses to Average Net Assets 0.12% 0.13%4
Ratio of Net Investment Income to Average Net Assets 3.27% 3.04%4
Portfolio Turnover Rate 3% 3%

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

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

28


 

Total International Stock Index Fund

Financial Highlights

Institutional Plus Shares    
  Year Nov. 30,
  Ended 20101 to
  October 31, October 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $95.31 $98.88
Investment Operations    
Net Investment Income 2.778 2.5962
Net Realized and Unrealized Gain (Loss) on Investments 2.110 (4.492)
Total from Investment Operations 4.888 (1.896)
Distributions    
Dividends from Net Investment Income (4.428) (1.674)
Distributions from Realized Capital Gains
Total Distributions (4.428) (1.674)
Net Asset Value, End of Period $95.77 $95.31
 
Total Return3 5.48% -2.08%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $12,973 $6,965
Ratio of Total Expenses to Average Net Assets 0.10% 0.10%4
Ratio of Net Investment Income to Average Net Assets 3.29% 3.07%4
Portfolio Turnover Rate 3% 3%

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

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

29


 

Total International Stock Index Fund

Financial Highlights

ETF Shares    
  Year Jan. 26,
  Ended 20111 to
  October 31,  October 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $44.33 $50.00
Investment Operations    
Net Investment Income 1.283 1.0212
Net Realized and Unrealized Gain (Loss) on Investments .965 (6.691)
Total from Investment Operations 2.248 (5.670)
Distributions    
Dividends from Net Investment Income (2.048)
Distributions from Realized Capital Gains
Total Distributions (2.048)
Net Asset Value, End of Period $44.53 $44.33
 
Total Return 5.43% -11.34%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $966 $435
Ratio of Total Expenses to Average Net Assets 0.16% 0.18%3
Ratio of Net Investment Income to Average Net Assets 3.23% 2.99%3
Portfolio Turnover Rate 3% 3%

1 Inception.
2 Calculated based on average shares outstanding.
3 Annualized.

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

30


 

Total International Stock Index Fund

Notes to Financial Statements

Vanguard Total International Stock 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 six classes of shares: Investor Shares, Admiral Shares, Signal Shares, Institutional Shares, Institutional Plus Shares, and ETF Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares, Signal Shares, Institutional Shares, and Institutional Plus Shares are designed for investors who meet certain administrative, service, and account-size criteria. ETF Shares are listed for trading on the Nasdaq; they can be purchased and sold through a broker.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. 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 acquired over 60 days to maturity 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. Other temporary cash investments are valued at amortized cost, which approximates market value.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Futures 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, enhancing returns, 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 fund may seek to enhance returns by using futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks

31


 

Total International Stock Index Fund

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.

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. Counterparty risk is mitigated by entering into forward currency contracts only with highly rated counterparties, by a master netting arrangement between the fund and the counterparty, and by the posting of collateral by the counterparty. 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 posted. Any securities posted as collateral for open contracts are noted in the Statement of Net Assets.

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 aggregate principal 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, 2012, the fund’s average investment in futures and forward currency contracts each represented less than 1% of net assets, based on quarterly average aggregate settlement values and average notional amounts, respectively.

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, 2009–2012), 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.

6. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents fees charged to borrowers plus income earned on investing cash collateral, less expenses associated with the loan.

7. 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. 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 redemptions of capital shares prior to May 23, 2012, were 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) and shareholder reporting. Marketing and distribution

32


 

Total International Stock Index Fund

expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2012, the fund had contributed capital of $10,308,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 4.12% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers 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 1Quoted prices in active markets for identical securities.
Level 2Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The following table summarizes the market value of the fund’s investments as of October 31, 2012, based on the inputs used to value them:

  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks—North America and South America 9,953,290
Common Stocks—Other 255,507 64,732,572 5,924
Temporary Cash Investments 1,814,282 35,006
Futures Contracts—Liabilities1 (248)
Forward Currency Contracts—Assets 796
Forward Currency Contracts—Liabilities (1,523)
Total 12,022,831 64,766,851 5,924
1 Represents variation margin on the last day of the reporting period.

 

D. At October 31, 2012, 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)
Other Assets 796 796
Liabilities (248) (1,523) (1,771)

 

33

 


 

Total International Stock Index Fund

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the year ended October 31, 2012, were:

    Foreign  
  Equity Exchange  
  Contracts Contracts Total
Realized Net Gain (Loss) on Derivatives ($000) ($000) ($000)
Futures Contracts 33,497 33,497
Forward Currency Contracts (1,730) (1,730)
Realized Net Gain (Loss) on Derivatives 33,497 (1,730) (31,767)

 

Change in Unrealized Appreciation (Depreciation) on Derivatives      
Futures Contracts (20,014) (20,014)
Forward Currency Contracts (4,900) (4,900)
Change in Unrealized Appreciation      
(Depreciation) on Derivatives (20,014) (4,900) (24,914)

 

At October 31, 2012, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000)
      Aggregate  
    Number of Settlement Unrealized
    Long (Short) Value Appreciation
Futures Contracts Expiration Contracts Long (Short)  (Depreciation)
Dow Jones EURO STOXX 50 Index December 2012 3,023 98,087 (1,529)
FTSE 100 Index December 2012 960 89,147 (1,140)
Topix Index December 2012 655 60,723 1,378
S&P ASX 200 Index December 2012 328 38,298 846

 

Unrealized appreciation (depreciation) on open FTSE 100 Index futures contracts is required to be treated as realized gain (loss) for tax purposes.

34


 

Total International Stock Index Fund

At October 31, 2012, the fund had open forward currency contracts to receive and deliver currencies as follows. Unrealized appreciation (depreciation) on open forward currency contracts is treated as realized gain (loss) for tax purposes.

            Unrealized
  Contract         Appreciation
  Settlement     Contract Amount (000) (Depreciation)
Counterparty Date   Receive   Deliver ($000)
Brown Brothers Harriman & Co. 12/21/12 EUR 76,867 USD 99,657 (798)
Brown Brothers Harriman & Co. 12/21/12 GBP 56,306 USD 90,698 (618)
Brown Brothers Harriman & Co. 12/21/12 AUD 36,116 USD 37,298 (107)
Brown Brothers Harriman & Co. 12/18/12 USD 28,624 JPY 2,286,759 796
AUD—Australian dollar.            
EUR—Euro.            
GBP—British pound.            
JPY—Japanese yen.            
USD—U.S. dollar.            

 

E. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

During the year ended October 31, 2012, the fund realized net foreign currency losses of $15,884,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2012, the fund realized gains on the sale of passive foreign investment companies of $16,090,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Passive foreign investment companies held at October 31, 2012, had unrealized appreciation of $217,632,000.

For tax purposes, at October 31, 2012, the fund had $814,588,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $83,472,000 to offset taxable capital gains realized during the year ended October 31, 2012. At October 31, 2012, the fund had available capital losses totaling $1,774,370,000 to offset future net capital gains of $59,017,000 through October 31, 2016, and $1,715,353,000 through October 31, 2017.

At October 31, 2012, the cost of investment securities for tax purposes was $76,674,591,000. Net unrealized appreciation of investment securities for tax purposes was $121,990,000, consisting of unrealized gains of $8,976,176,000 on securities that had risen in value since their purchase and $8,854,186,000 in unrealized losses on securities that had fallen in value since their purchase.

35


 

Total International Stock Index Fund

F. During the year ended October 31, 2012, the fund purchased $17,769,775,000 of investment securities and sold $1,802,788,000 of investment securities, other than temporary cash investments. Purchases and sales include $886,213,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.

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

      Year Ended October 31,
    2012   2011
  Amount Shares Amount Shares
  ($000) (000) ($000) (000)
Investor Shares        
Issued 7,052,754 516,359 18,731,620 1,213,124
Issued in Lieu of Cash Distributions 1,458,019 107,993 662,044 42,603
Redeemed1 (4,308,337) (310,573) (25,808,861) (1,632,541)
Net Increase (Decrease)—Investor Shares 4,202,436 313,779 (6,415,197) (376,814)
Admiral Shares2        
Issued 3,147,856 135,369 16,052,420 600,740
Issued in Lieu of Cash Distributions 555,636 24,605 26,728 1,028
Redeemed1 (1,861,851) (80,925) (1,218,664) (47,862)
Net Increase (Decrease)—Admiral Shares 1,841,641 79,049 14,860,484 553,906
Signal Shares2        
Issued 2,096,270 74,947 2,559,389 80,539
Issued in Lieu of Cash Distributions 105,493 3,853 1,855 59
Redeemed1 (672,469) (24,455) (310,252) (10,196)
Net Increase (Decrease)—Signal Shares 1,529,294 54,345 2,250,992 70,402
Institutional Shares2        
Issued 4,509,542 48,614 8,449,966 81,516
Issued in Lieu of Cash Distributions 225,914 2,479 54,225 521
Redeemed1 (1,581,264) (17,087) (4,189,159) (42,289)
Net Increase (Decrease)—Institutional Shares 3,154,192 34,006 4,315,032 39,748
Institutional Plus Shares2        
Issued 6,358,536 69,727 7,804,686 77,987
Issued in Lieu of Cash Distributions 442,728 4,864
Redeemed1 (1,142,789) (12,211) (479,925) (4,908)
Net Increase (Decrease)—Institutional Plus Shares 5,658,475 62,380 7,324,761 73,079
ETF Shares2        
Issued 511,210 11,891 463,625 9,803
Issued in Lieu of Cash Distributions
Redeemed1
Net Increase (Decrease)—ETF Shares 511,210 11,891 463,625 9,803

1 Net of redemption fees for fiscal 2012 and 2011 of $446,000 and $997,000, respectively (fund totals). Effective May 23, 2012, the redemption fee was eliminated.
2 Inception was November 29, 2010, for Admiral Shares, November 30, 2010, for Signal Shares, November 29, 2010, for Institutional Shares, November 30, 2010, for Institutional Plus Shares, and January 26, 2011, for ETF Shares.

36


 

Total International Stock Index Fund

H. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

On October 2, 2012, Vanguard announced an upcoming change in the fund’s benchmark index from the MSCI ACWI ex USA IMI Index to the FTSE Global All Cap ex US Index. The fund’s investment objective is not changing. The transition to the new benchmark is expected to be completed over several months, and will require some turnover of holdings with resulting transaction costs. Vanguard will seek to minimize trading impact through efficient portfolio trading.

37


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard Total International Stock Index Fund:

In our opinion, the accompanying statement of net assets—investments summary and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Total International Stock Index Fund (constituting a separate portfolio of Vanguard STAR Funds, hereafter referred to as the “Fund”) at October 31, 2012, 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 then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2012 by correspondence with the custodian and brokers and by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 11, 2012

 

Special 2012 tax information (unaudited) for Vanguard Total International Stock Index Fund

This information for the fiscal year ended October 31, 2012, is included pursuant to provisions of the Internal Revenue Code.

The fund distributed $2,092,553,000 of qualified dividend income to shareholders during the fiscal year.

The fund designates to shareholders foreign source income of $1,997,765,000 and foreign taxes paid of $133,489,000. Shareholders will receive more detailed information with their Form 1099-DIV in January 2013 to determine the calendar-year amounts to be included on their 2012 tax returns.

38


 

Your Fund’s After-Tax Returns

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 2012. (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: Total International Stock Index Fund Investor Shares  
Periods Ended October 31, 2012      
  One Five Ten
  Year Years Years
Returns Before Taxes 5.32% -5.50% 8.89%
Returns After Taxes on Distributions 4.43 -5.98 8.35
Returns After Taxes on Distributions and Sale of Fund Shares 4.17 -4.68 7.71

 

39


 

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

40


 

Six Months Ended October 31, 2012      
  Beginning Ending Expenses
  Account Value Account Value Paid During
Total International Stock Index Fund 4/30/2012 10/31/2012 Period
Based on Actual Fund Return      
Investor Shares $1,000.00 $1,013.01 $1.12
Admiral Shares 1,000.00 1,013.78 0.76
Signal Shares 1,000.00 1,013.60 0.76
Institutional Shares 1,000.00 1,013.79 0.56
Institutional Plus Shares 1,000.00 1,013.87 0.51
ETF Shares 1,000.00 1,013.65 0.76
Based on Hypothetical 5% Yearly Return      
Investor Shares $1,000.00 $1,024.10 $1.12
Admiral Shares 1,000.00 1,024.45 0.77
Signal Shares 1,000.00 1,024.45 0.77
Institutional Shares 1,000.00 1,024.65 0.56
Institutional Plus Shares 1,000.00 1,024.70 0.51
ETF Shares 1,000.00 1,024.45 0.77

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.22% for Investor Shares, 0.15% for Admiral Shares, 0.15% for Signal Shares, 0.11% for Institutional Shares, 0.10% for Institutional Plus Shares, and 0.15% for ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

41


 

Glossary

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.

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.

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.

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.

42


 

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.

Benchmark Information

Spliced Total International Stock Index: Consists of the Total International Composite Index through August 31, 2006; the MSCI EAFE + Emerging Markets Index through December 15, 2010; and the MSCI ACWI ex USA IMI Index thereafter. Returns for the MSCI indexes are adjusted for withholding taxes.

43


 

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 180 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. 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.

InterestedTrustee1 and Delphi Automotive LLP (automotive components);
  Senior Advisor at New Mountain Capital; Trustee of
F. William McNabb III The Conference Board.
Born 1957. Trustee Since July 2009. Chairman of the  
Board. Principal Occupation(s) During the Past Five Amy Gutmann
Years: Chairman of the Board of The Vanguard Group, Born 1949. Trustee Since June 2006. Principal
Inc., and of each of the investment companies served Occupation(s) During the Past Five Years: President
by The Vanguard Group, since January 2010; Director of the University of Pennsylvania; Christopher H.
of The Vanguard Group since 2008; Chief Executive Browne Distinguished Professor of Political Science
Officer and President of The Vanguard Group and of in the School of Arts and Sciences with secondary
each of the investment companies served by The appointments at the Annenberg School for
Vanguard Group since 2008; Director of Vanguard Communication and the Graduate School of Education
Marketing Corporation; Managing Director of The of the University of Pennsylvania; Member of the
Vanguard Group (1995–2008). National Commission on the Humanities and Social
  Sciences; Trustee of Carnegie Corporation of New
IndependentTrustees   York and of the National Constitution Center; Chair
of the U. S. Presidential Commission for the Study
Emerson U. Fullwood of Bioethical Issues.
Born 1948. Trustee Since January 2008. Principal  
Occupation(s) During the Past Five Years: Executive JoAnn Heffernan Heisen
Chief Staff and Marketing Officer for North America Born 1950. Trustee Since July 1998. Principal
and Corporate Vice President (retired 2008) of Xerox Occupation(s) During the Past Five Years: Corporate
Corporation (document management products and Vice President and Chief Global Diversity Officer
services); Executive in Residence and 2010 (retired 2008) and Member of the Executive
Distinguished Minett Professor at the Rochester Committee (1997–2008) of Johnson & Johnson
Institute of Technology; Director of SPX Corporation (pharmaceuticals/medical devices/consumer
(multi-industry manufacturing), the United Way of products); Director of Skytop Lodge Corporation
Rochester, Amerigroup Corporation (managed health (hotels), the University Medical Center at Princeton,
care), the University of Rochester Medical Center, the Robert Wood Johnson Foundation, and the Center
Monroe Community College Foundation, and North for Talent Innovation; Member of the Advisory Board
Carolina A&T University. of the Maxwell School of Citizenship and Public Affairs
  at Syracuse University.
 
Rajiv L. Gupta F. Joseph Loughrey
Born 1945. Trustee Since December 2001.2 Born 1949. Trustee Since October 2009. Principal
Principal Occupation(s) During the Past Five Years: Occupation(s) During the Past Five Years: President
Chairman and Chief Executive Officer (retired 2009) and Chief Operating Officer (retired 2009) of Cummins
and President (2006–2008) of Rohm and Haas Co. Inc. (industrial machinery); Director of SKF AB
(chemicals); Director of Tyco International, Ltd. (industrial machinery), Hillenbrand, Inc. (specialized
(diversified manufacturing and services), Hewlett- consumer services), the Lumina Foundation for
Packard Co. (electronic computer manufacturing),

 


 

Education, and Oxfam America; Chairman of the Executive Officers  
Advisory Council for the College of Arts and Letters    
and Member of the Advisory Board to the Kellogg Glenn Booraem  
Institute for International Studies at the University Born 1967. Controller Since July 2010. Principal
of Notre Dame. Occupation(s) During the Past Five Years: Principal
  of The Vanguard Group, Inc.; Controller of each of
Mark Loughridge the investment companies served by The Vanguard
Born 1953. Trustee Since March 2012. Principal Group; Assistant Controller of each of the investment
Occupation(s) During the Past Five Years: Senior Vice companies served by The Vanguard Group (2001–2010).
President and Chief Financial Officer at IBM (information    
technology services); Fiduciary Member of IBM’s Thomas J. Higgins  
Retirement Plan Committee. Born 1957. Chief Financial Officer Since September
  2008. Principal Occupation(s) During the Past Five
Scott C. Malpass Years: Principal of The Vanguard Group, Inc.; Chief
Born 1962. Trustee Since March 2012. Principal Financial Officer of each of the investment companies
Occupation(s) During the Past Five Years: Chief served by The Vanguard Group; Treasurer of each of
Investment Officer and Vice President at the University the investment companies served by The Vanguard
of Notre Dame; Assistant Professor of Finance at the Group (1998–2008).  
Mendoza College of Business at Notre Dame; Member    
of the Notre Dame 403(b) Investment Committee; Kathryn J. Hyatt  
Director of TIFF Advisory Services, Inc. (investment Born 1955. Treasurer Since November 2008. Principal
advisor); Member of the Investment Advisory Occupation(s) During the Past Five Years: Principal of
Committees of the Financial Industry Regulatory The Vanguard Group, Inc.; Treasurer of each of the
Authority (FINRA) and of Major League Baseball. investment companies served by The Vanguard
  Group; Assistant Treasurer of each of the investment
André F. Perold companies served by The Vanguard Group (1988–2008).
Born 1952. Trustee Since December 2004. Principal    
Occupation(s) During the Past Five Years: George Heidi Stam  
Gund Professor of Finance and Banking at the Harvard Born 1956. Secretary Since July 2005. Principal
Business School (retired 2011); Chief Investment Occupation(s) During the Past Five Years: Managing
Officer and Managing Partner of HighVista Strategies Director of The Vanguard Group, Inc.; General Counsel
LLC (private investment firm); Director of Rand of The Vanguard Group; Secretary of The Vanguard
Merchant Bank; Overseer of the Museum of Fine Group and of each of the investment companies
Arts Boston. served by The Vanguard Group; Director and Senior
  Vice President of Vanguard Marketing Corporation.
Alfred M. Rankin, Jr.    
Born 1941. Trustee Since January 1993. Principal Vanguard Senior ManagementTeam
Occupation(s) During the Past Five Years: Chairman,    
President, and Chief Executive Officer of NACCO Mortimer J. Buckley Michael S. Miller
Industries, Inc. (forklift trucks/housewares/lignite); Kathleen C. Gubanich James M. Norris
Director of Goodrich Corporation (industrial products/ Paul A. Heller Glenn W. Reed
aircraft systems and services) and the National Martha G. King George U. Sauter
Association of Manufacturers; Chairman of the Board Chris D. McIsaac  
of the Federal Reserve Bank of Cleveland and of    
University Hospitals of Cleveland; Advisory Chairman Chairman Emeritus and Senior Advisor
of the Board of The Cleveland Museum of Art. John J. Brennan   
  Chairman, 1996–2009   
Peter F. Volanakis Chief Executive Officer and President, 1996–2008
Born 1955. Trustee Since July 2009. Principal    
Occupation(s) During the Past Five Years: President    
and Chief Operating Officer (retired 2010) of Corning    
Incorporated (communications equipment); Director Founder  
of SPX Corporation (multi-industry manufacturing); John C. Bogle   
Overseer of the Amos Tuck School of Business  Chairman and Chief Executive Officer, 1974–1996
Administration at Dartmouth College; Advisor to the    
Norris Cotton Cancer Center.    

 

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.


 

 

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  © 2012 The Vanguard Group, Inc.
  All rights reserved.
  Vanguard Marketing Corporation, Distributor.
 
  Q1130 122012

 


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Common Stocks (99.5%)1    
Argentina (0.0%)    
Tenaris SA ADR 139,938 5,264
Siderar SAIC Class A 390
    5,264
Australia (6.2%)    
BHP Billiton Ltd. 14,025,717 496,589
Commonwealth Bank of Australia 6,925,484 414,739
Westpac Banking Corp. 13,289,021 351,336
Australia & New Zealand Banking Group Ltd. 11,655,966 307,501
National Australia Bank Ltd. 9,740,634 260,317
Woolworths Ltd. 5,354,389 163,320
Wesfarmers Ltd. 4,379,388 157,875
Rio Tinto Ltd. 1,893,602 111,639
CSL Ltd. 2,217,842 109,386
Westfield Group 9,374,726 103,630
Woodside Petroleum Ltd. 2,864,261 102,129
Newcrest Mining Ltd. 3,221,755 88,856
Telstra Corp. Ltd. 18,925,105 81,331
QBE Insurance Group Ltd. 5,136,489 70,175
AMP Ltd. 12,605,979 59,976
Origin Energy Ltd. 4,746,411 55,871
Suncorp Group Ltd. 5,586,976 54,420
Brambles Ltd. 6,758,695 50,891
Santos Ltd. 4,158,622 49,584
Macquarie Group Ltd. 1,442,377 47,644
Insurance Australia Group Ltd. 9,053,340 43,051
Amcor Ltd. 5,251,813 43,025
Orica Ltd. 1,590,159 41,422
Westfield Retail Trust 12,642,256 40,595
Transurban Group 5,693,788 35,937
AGL Energy Ltd. 2,362,801 35,633
Stockland 9,777,337 35,081
Coca-Cola Amatil Ltd. 2,486,730 34,694
Goodman Group 6,754,882 31,010
QR National Ltd. 7,419,282 28,780
^ Fortescue Metals Group Ltd. 6,082,403 25,629
ASX Ltd. 764,183 23,529
Mirvac Group 14,918,225 23,276
Incitec Pivot Ltd. 7,088,636 23,217
WorleyParsons Ltd. 895,582 22,902
GPT Group 6,201,182 22,900
Sonic Healthcare Ltd. 1,619,217 21,835
Lend Lease Group 2,359,659 21,185
Dexus Property Group 19,921,087 20,332
Asciano Ltd. 4,225,741 20,001
^ APA Group 3,529,881 18,894
Iluka Resources Ltd. 1,823,440 18,704
Cochlear Ltd. 247,088 18,248
James Hardie Industries plc 1,894,768 18,125
Crown Ltd. 1,748,093 17,619
CFS Retail Property Trust Group 8,662,012 17,551
Computershare Ltd. 1,935,007 17,426
Tatts Group Ltd. 5,930,343 17,224
Bendigo and Adelaide Bank Ltd. 1,734,461 14,527
Treasury Wine Estates Ltd. 2,814,782 14,422
Metcash Ltd. 3,730,790 14,172
Ramsay Health Care Ltd. 570,966 14,081
ALS Ltd. 1,459,028 14,006
Toll Holdings Ltd. 2,969,043 13,678
Centro Retail Australia 5,553,556 12,382
Boral Ltd. 3,314,872 12,346
Leighton Holdings Ltd. 654,388 12,142

 

1


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  GrainCorp Ltd. Class A 950,645 12,072
  Commonwealth Property Office Fund 10,677,942 11,955
  Echo Entertainment Group Ltd. 3,238,678 11,771
  OZ Minerals Ltd. 1,341,084 11,379
  Alumina Ltd. 10,520,840 10,502
  DUET Group 4,787,095 10,374
  Caltex Australia Ltd. 583,862 10,317
  Spark Infrastructure Group 5,419,365 9,503
  Bank of Queensland Ltd. 1,183,962 9,298
  Tabcorp Holdings Ltd. 3,142,648 9,255
  Seek Ltd. 1,330,689 9,216
  Ansell Ltd. 568,025 9,204
  Primary Health Care Ltd. 2,084,761 8,409
  Australian Infrastructure Fund 2,718,904 8,385
  Investa Office Fund 2,635,804 8,125
  UGL Ltd. 716,874 7,943
  SP AusNet 7,214,651 7,937
  Beach Energy Ltd. 5,415,899 7,735
  Monadelphous Group Ltd. 350,313 7,660
  Challenger Ltd. 2,256,081 7,553
  PanAust Ltd. 2,094,847 7,222
* BlueScope Steel Ltd. 14,389,504 7,075
* Regis Resources Ltd. 1,261,012 7,031
* Downer EDI Ltd. 1,882,573 7,008
* Aurora Oil & Gas Ltd. 1,730,256 7,003
  Adelaide Brighton Ltd. 2,052,650 6,748
* Qantas Airways Ltd. 4,803,157 6,622
^ Flight Centre Ltd. 238,128 6,570
  Sims Metal Management Ltd. 655,582 6,406
^ David Jones Ltd. 2,264,384 6,267
^ carsales.com Ltd. 802,492 6,210
  Whitehaven Coal Ltd. 1,961,508 6,194
  DuluxGroup Ltd. 1,624,370 5,962
  Sydney Airport 1,629,543 5,732
  Resolute Mining Ltd. 2,839,048 5,667
* Atlas Iron Ltd. 3,553,359 5,643
  Aristocrat Leisure Ltd. 1,928,360 5,636
  Super Retail Group Ltd. 596,272 5,570
^,* Lynas Corp. Ltd. 7,342,895 5,540
* Perseus Mining Ltd. 1,991,596 5,346
^ Myer Holdings Ltd. 2,562,434 5,194
* Goodman Fielder Ltd. 8,337,838 5,051
  IOOF Holdings Ltd. 735,316 4,811
  Perpetual Ltd. 165,731 4,795
  Arrium Ltd. 5,854,217 4,755
  Mineral Resources Ltd. 520,406 4,677
^ JB Hi-Fi Ltd. 436,600 4,641
^ Harvey Norman Holdings Ltd. 2,333,488 4,609
  Cardno Ltd. 546,952 4,560
  Charter Hall Retail REIT 1,198,747 4,516
  Medusa Mining Ltd. 702,296 4,474
* Karoon Gas Australia Ltd. 769,747 4,442
  Nufarm Ltd. 742,983 4,429
  Invocare Ltd. 477,440 4,363
* St. Barbara Ltd. 2,124,143 4,196
  REA Group Ltd. 231,080 4,136
* Evolution Mining Ltd. 1,987,971 4,132
  CSR Ltd. 2,221,667 4,033
  Independence Group NL 970,775 4,011
^ Fairfax Media Ltd. 9,743,013 3,989
  BWP Trust 1,825,589 3,958
* Sundance Resources Ltd. 10,401,514 3,827
^,* Paladin Energy Ltd. 3,225,608 3,783
* Sandfire Resources NL 431,222 3,765

 

2


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Iress Ltd. 471,748 3,747
  SAI Global Ltd. 873,987 3,678
^ Bradken Ltd. 715,116 3,661
  Sigma Pharmaceuticals Ltd. 5,010,685 3,506
  Navitas Ltd. 811,456 3,466
  Seven West Media Ltd. 2,663,580 3,358
^,* Mesoblast Ltd. 559,738 3,357
  Transfield Services Ltd. 2,024,983 3,335
  Envestra Ltd. 3,537,367 3,320
^ Kingsgate Consolidated Ltd. 570,390 3,272
^ Platinum Asset Management Ltd. 861,707 3,248
  Qube Logistics Holdings Ltd. 1,960,379 3,151
  Mermaid Marine Australia Ltd. 931,277 3,130
  AWE Ltd. 2,253,929 3,105
  Australand Property Group 989,108 3,096
^,* Discovery Metals Ltd. 1,717,909 3,077
  Ausdrill Ltd. 1,041,928 3,075
  Boart Longyear Ltd. 1,996,923 3,016
  Newcrest Mining Ltd. ADR 107,626 2,979
* Transpacific Industries Group Ltd. 3,750,848 2,971
  Cabcharge Australia Ltd. 482,959 2,963
  Charter Hall Group 897,012 2,962
* Beadell Resources Ltd. 2,886,099 2,913
^,* Silver Lake Resources Ltd. 789,178 2,892
  ARB Corp. Ltd. 270,170 2,879
  McMillan Shakespeare Ltd. 214,325 2,868
  GUD Holdings Ltd. 318,200 2,770
* Senex Energy Ltd. 3,601,049 2,762
* Macquarie Atlas Roads Group 1,672,454 2,682
  FlexiGroup Ltd. 651,659 2,679
  TPG Telecom Ltd. 1,044,922 2,586
^,* Cudeco Ltd. 526,722 2,553
^ Western Areas NL 560,380 2,543
  Pacific Brands Ltd. 3,934,796 2,531
  Southern Cross Media Group Ltd. 2,328,861 2,511
  Automotive Holdings Group Ltd. 752,530 2,490
^,* Buru Energy Ltd. 863,111 2,482
  iiNET Ltd. 573,273 2,474
  Premier Investments Ltd. 381,872 2,442
  Abacus Property Group 1,109,643 2,393
  Ardent Leisure Group 1,624,887 2,383
* Drillsearch Energy Ltd. 1,484,810 2,331
  Fleetwood Corp. Ltd. 217,123 2,320
* Integra Mining Ltd. 3,788,629 2,135
  Consolidated Media Holdings Ltd. 594,947 2,117
^ Wotif.com Holdings Ltd. 438,781 2,113
  Acrux Ltd. 623,628 2,095
  NRW Holdings Ltd. 976,541 2,071
* Aquila Resources Ltd. 737,254 2,052
  Emeco Holdings Ltd. 2,780,062 2,002
  Mount Gibson Iron Ltd. 2,719,323 1,984
* Silex Systems Ltd. 523,018 1,887
^ M2 Telecommunications Group Ltd. 464,103 1,842
  Skilled Group Ltd. 663,461 1,829
  GWA Group Ltd. 999,275 1,810
^ FKP Property Group 7,881,790 1,810
^ Industrea Ltd. 1,371,636 1,794
* Mineral Deposits Ltd. 350,081 1,773
^,* Horizon Oil Ltd. 4,376,047 1,765
  Northern Star Resources Ltd. 1,319,110 1,759
^,* Pharmaxis Ltd. 1,263,286 1,693
^ Billabong International Ltd. 1,698,730 1,556
^ Reject Shop Ltd. 105,162 1,549
^,* Starpharma Holdings Ltd. 914,201 1,542

 

3


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^ Decmil Group Ltd. 564,587 1,515
  Troy Resources Ltd. 324,827 1,493
^,* Coalspur Mines Ltd. 1,531,029 1,490
  SMS Management & Technology Ltd. 286,536 1,480
  Multiplex SITES Trust 17,511 1,421
  Miclyn Express Offshore Ltd. 613,954 1,414
^,* Mirabela Nickel Ltd. 3,016,807 1,404
  STW Communications Group Ltd. 1,334,284 1,398
* Roc Oil Co. Ltd. 3,121,938 1,390
^,* Energy World Corp. Ltd. 3,581,293 1,352
* Australian Agricultural Co. Ltd. 980,359 1,322
^,* Gindalbie Metals Ltd. 3,641,607 1,300
  Challenger Diversified Property Group 482,929 1,289
* Energy Resources of Australia Ltd. 848,998 1,241
  Imdex Ltd. 878,433 1,218
^,* Bathurst Resources Ltd. 2,701,261 1,216
* Saracen Mineral Holdings Ltd. 2,324,854 1,213
  Ausenco Ltd. 347,362 1,137
  Ten Network Holdings Ltd. 3,882,397 1,129
  Programmed Maintenance Services Ltd. 514,616 1,104
^,* Aquarius Platinum Ltd. 1,857,127 1,102
* Gryphon Minerals Ltd. 1,327,169 1,074
^,* Alkane Resources Ltd. 1,199,726 1,055
* Red Fork Energy Ltd. 1,409,752 1,007
* Indophil Resources NL 3,442,021 1,000
* Ivanhoe Australia Ltd. 1,068,724 970
  BT Investment Management Ltd. 387,445 893
* Ainsworth Game Technology Ltd. 359,425 888
  Clough Ltd. 1,094,825 886
  Mincor Resources NL 702,742 871
* Infigen Energy 3,435,073 854
  MACA Ltd. 393,428 836
^,* Maverick Drilling & Exploration Ltd. 780,946 836
^,* Endeavour Mining Corp. 348,300 831
  Macmahon Holdings Ltd. 2,478,318 820
  Austin Engineering Ltd. 182,141 818
* Northern Iron Ltd. 1,278,075 802
* Intrepid Mines Ltd. 2,195,162 775
^ Astro Japan Property Group 228,640 771
  Tassal Group Ltd. 501,537 754
  APN News & Media Ltd. 1,960,672 751
* Nexus Energy Ltd. 5,925,255 736
  Alesco Corp. Ltd. 349,829 704
  Forge Group Ltd. 167,737 693
^,* Ramelius Resources Ltd. 1,500,049 687
^,* Linc Energy Ltd. 1,200,419 683
  Hills Holdings Ltd. 850,746 671
  Kingsrose Mining Ltd. 645,765 656
  Sims Metal Management Ltd. ADR 66,577 650
  OrotonGroup Ltd. 96,328 650
* Tiger Resources Ltd. 2,021,067 648
  Panoramic Resources Ltd. 956,109 618
* Rex Minerals Ltd. 702,448 582
* Focus Minerals Ltd. 15,535,728 580
^,* Guildford Coal Ltd. 1,106,236 574
* Molopo Energy Ltd. 971,524 554
  Cape Lambert Resources Ltd. 2,001,256 529
^,* Gunns Ltd. 3,024,191 502
  BC Iron Ltd. 169,111 486
* Dart Energy Ltd. 2,726,412 479
* Cockatoo Coal Ltd. 2,801,877 478
  CSG Ltd. 930,819 468
^,* Ampella Mining Ltd. 935,690 466
  Sedgman Ltd. 441,053 452

 

4


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Perilya Ltd. 1,400,774 450
* Austal Ltd. 343,556 437
  Aspen Group 2,447,578 431
* OM Holdings Ltd. 1,519,950 419
^,* Bandanna Energy Ltd. 1,125,170 396
* Jupiter Mines Ltd. 2,793,559 390
  Matrix Composites & Engineering Ltd. 224,837 387
  Redflex Holdings Ltd. 239,547 380
  Grange Resources Ltd. 1,412,244 365
* Elemental Minerals Ltd. 529,920 321
* Metals X Ltd. 2,223,744 288
* Kagara Ltd. 2,282,838 284
^,* White Energy Co. Ltd. 730,701 265
* Metminco Ltd. 2,908,192 247
  Aditya Birla Minerals Ltd. 433,441 206
  Gunns Ltd. 3,440 152
* Kangaroo Resources Ltd. 2,896,535 127
* Aspire Mining Ltd. 1,004,833 88
* BGP Holdings PLC 17,449,685
      4,645,416
Austria (0.2%)    
* Erste Group Bank AG 942,129 23,749
  OMV AG 637,509 23,330
  Andritz AG 323,016 19,465
  IMMOFINANZ AG 4,046,766 15,643
  Voestalpine AG 474,780 14,950
  Raiffeisen Bank International AG 212,146 8,498
  Vienna Insurance Group AG Wiener Versicherung Gruppe 164,855 7,084
  Verbund AG 297,079 6,927
  Telekom Austria AG 947,032 5,966
  Oesterreichische Post AG 146,281 5,637
  Atrium European Real Estate Ltd. 872,788 4,950
  Schoeller-Bleckmann Oilfield Equipment AG 48,225 4,653
  Lenzing AG 45,812 4,078
  CA Immobilien Anlagen AG 327,607 4,062
  Mayr Melnhof Karton AG 39,502 3,905
  Wienerberger AG 507,851 3,643
  Conwert Immobilien Invest SE 297,897 3,451
  Strabag SE 117,037 2,942
  RHI AG 95,028 2,689
  EVN AG 154,115 2,180
  Flughafen Wien AG 46,645 2,115
  Semperit AG Holding 44,519 1,876
2 AMAG Austria Metall AG 58,364 1,617
  S IMMO AG 208,107 1,329
  Kapsch TrafficCom AG 21,899 1,279
  Zumtobel AG 116,347 1,245
  BWT AG 55,229 1,142
  Palfinger AG 53,320 1,072
  Rosenbauer International AG 13,699 717
  Austria Technologie & Systemtechnik AG 55,434 488
* Intercell AG 166,441 410
      181,092
Belgium (0.8%)    
  Anheuser-Busch InBev NV 3,493,100 292,134
  Solvay SA Class A 257,396 30,991
  UCB SA 479,646 28,015
  Groupe Bruxelles Lambert SA 350,998 25,949
  Ageas 1,014,999 25,878
  Umicore SA 496,113 25,495
  Belgacom SA 659,937 19,294
  Delhaize Group SA 445,228 17,047
  KBC Groep NV 703,497 16,549
  Colruyt SA 330,670 15,118

 

5


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Telenet Group Holding NV 246,656 11,300
  Ackermans & van Haaren NV 100,930 8,218
  Cofinimmo 64,771 7,364
* ThromboGenics NV 139,922 6,719
  Elia System Operator SA/NV 116,045 4,741
  D'ieteren SA 95,832 4,625
^ NV Bekaert SA 168,666 4,606
  Befimmo SCA Sicafi 64,186 3,908
  Nyrstar (Voting Shares) 649,358 3,777
  Gimv NV 75,443 3,648
  Mobistar SA 128,341 3,394
  Barco NV 46,033 3,167
  EVS Broadcast Equipment SA 49,393 2,867
  Tessenderlo Chemie NV (Voting Shares) 97,669 2,834
  Warehouses De Pauw SCA 44,576 2,441
  Sipef SA 24,924 1,900
  Kinepolis Group NV 18,934 1,889
* Galapagos NV 90,011 1,830
  Econocom Group 218,112 1,514
* RHJ International 303,836 1,512
  Cie d'Entreprises CFE 30,034 1,478
* KBC Ancora 144,483 1,433
  Arseus NV 76,389 1,430
  Melexis NV 82,620 1,305
* AGFA-Gevaert NV 706,284 1,154
  Cie Maritime Belge SA 62,384 1,116
  Wereldhave Belgium NV 8,620 881
^,* Ablynx NV 113,279 764
  Exmar NV 96,570 720
  Intervest Offices & Warehouses 27,649 660
* Ion Beam Applications 71,583 603
  Recticel SA 88,944 590
^,* Dexia SA 2,176,249 508
* Euronav NV 90,269 498
  Leasinvest Real Estate SCA 5,534 495
* Deceuninck NV 255,251 424
  Roularta Media Group NV 11,273 170
  Hamon & CIE SA 6,533 92
      593,045
Brazil (2.8%)    
  Petroleo Brasileiro SA Prior Pfd. 10,594,933 108,503
  Vale SA Prior Pfd. 4,912,979 87,928
  Petroleo Brasileiro SA 7,896,666 83,591
  Cia de Bebidas das Americas Prior Pfd. 1,931,555 78,934
  Petroleo Brasileiro SA ADR Type A 3,840,889 78,853
  Banco Bradesco SA Prior Pfd. 4,911,444 77,382
  Itau Unibanco Holding SA Prior Pfd. 5,144,383 75,226
  Itau Unibanco Holding SA ADR 4,784,288 69,755
  Vale SA Class B Pfd. ADR 3,803,553 67,665
  Vale SA 3,258,537 60,083
  Cia de Bebidas das Americas ADR 1,343,005 54,781
  Petroleo Brasileiro SA ADR 2,529,324 53,647
  Banco Bradesco SA ADR 3,411,621 53,426
  BM&FBovespa SA 7,743,687 49,564
  Itausa - Investimentos Itau SA Prior Pfd. 11,066,536 48,493
  Vale SA Class B ADR 2,402,361 44,011
  CCR SA 3,835,137 33,724
  BRF - Brasil Foods SA 1,852,609 33,704
  Cielo SA 1,278,147 31,623
  Ultrapar Participacoes SA 1,419,059 29,764
  Banco do Brasil SA 2,488,339 26,549
  BR Malls Participacoes SA 1,779,651 23,395
  Souza Cruz SA 1,661,526 21,679
  Gerdau SA Prior Pfd. 2,327,136 20,338

 

6


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Natura Cosmeticos SA 751,081 20,025
Lojas Renner SA 534,561 19,792
BRF - Brasil Foods SA ADR 989,708 18,131
Telefonica Brasil SA Prior Pfd. 817,480 18,112
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR 321,524 15,028
Lojas Americanas SA Prior Pfd. 1,746,352 14,617
Banco Santander Brasil SA ADR 2,137,959 14,538
Bradespar SA Prior Pfd. 983,227 14,523
Cia Energetica de Minas Gerais Prior Pfd. 1,185,002 14,178
Cia Hering 603,530 13,865
Metalurgica Gerdau SA Prior Pfd. Class A 1,188,091 13,314
* OGX Petroleo e Gas Participacoes SA 5,587,399 12,957
Gerdau SA ADR 1,408,378 12,380
Tractebel Energia SA 710,143 12,238
* Hypermarcas SA 1,492,760 11,870
Klabin SA Prior Pfd. 1,955,300 11,485
Cia Energetica de Minas Gerais ADR 905,852 10,861
Cia de Saneamento Basico do Estado de Sao Paulo 255,798 10,829
Cyrela Brazil Realty SA Empreendimentos e Participacoes 1,273,619 10,798
BR Properties SA 805,229 10,546
Telefonica Brasil SA ADR 475,851 10,478
Cosan SA Industria e Comercio 534,400 10,248
CETIP SA - Mercados Organizados 888,969 10,242
Cia de Saneamento Basico do Estado de Sao Paulo ADR 118,615 9,965
Localiza Rent a Car SA 567,259 9,943
Totvs SA 481,754 9,796
CPFL Energia SA 832,167 9,669
Multiplan Empreendimentos Imobiliarios SA 326,787 9,573
Cia Siderurgica Nacional SA 1,725,481 9,540
Anhanguera Educacional Participacoes SA 540,288 9,470
Tim Participacoes SA 2,660,338 9,431
Raia Drogasil SA 854,139 9,399
Oi SA Prior Pfd. 2,295,035 9,198
Embraer SA ADR 327,163 9,131
Usinas Siderurgicas de Minas Gerais SA Prior Pfd. 1,871,500 9,039
All America Latina Logistica SA 1,924,654 8,756
Amil Participacoes SA 553,002 8,318
PDG Realty SA Empreendimentos e Participacoes 4,932,272 8,305
Banco Santander Brasil SA 1,151,816 7,911
Cia Siderurgica Nacional SA ADR 1,433,989 7,801
Embraer SA 1,113,293 7,784
Duratex SA 1,077,814 7,498
MRV Engenharia e Participacoes SA 1,346,912 6,831
Diagnosticos da America SA 1,020,092 6,780
Centrais Eletricas Brasileiras SA Prior Pfd. 804,768 6,399
EDP - Energias do Brasil SA 1,018,542 6,369
* Kroton Educacional SA 317,326 6,343
EcoRodovias Infraestrutura e Logistica SA 722,231 6,308
Banco do Estado do Rio Grande do Sul SA Prior Pfd. 771,016 6,093
Cia Energetica de Sao Paulo Prior Pfd. 676,461 6,078
Marcopolo SA Prior Pfd. 1,028,434 6,031
Odontoprev SA 1,143,801 5,913
Cia de Saneamento de Minas Gerais-COPASA 248,522 5,866
* JBS SA 1,774,590 5,740
Oi SA ADR 1,353,883 5,416
Estacio Participacoes SA 278,729 5,311
Porto Seguro SA 499,100 5,308
Cia Brasileira de Distribuicao Grupo Pao de Acucar Prior Pfd. 112,073 5,143
Mills Estruturas e Servicos de Engenharia SA 326,679 5,009
* Fibria Celulose SA 585,655 4,971
AES Tiete SA Prior Pfd. 432,960 4,918
Obrascon Huarte Lain Brasil SA 521,728 4,906
Multiplus SA 207,350 4,818
Oi SA 942,887 4,457

 

7


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Centrais Eletricas Brasileiras SA 797,200 4,376
^,* Fibria Celulose SA ADR 486,162 4,283
  Aliansce Shopping Centers SA 356,640 4,056
  Braskem SA Prior Pfd. 596,746 3,943
  Sul America SA 489,234 3,854
  Cia Paranaense de Energia ADR 254,056 3,750
  Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A 195,158 3,673
  Tim Participacoes SA ADR 207,108 3,600
* MPX Energia SA 665,400 3,515
  Iguatemi Empresa de Shopping Centers SA 276,600 3,514
  Iochpe-Maxion SA 284,276 3,485
  Arezzo Industria e Comercio SA 193,466 3,453
* HRT Participacoes em Petroleo SA 1,123,546 3,374
  Brazil Pharma SA 540,000 3,284
  Eletropaulo Metropolitana Eletricidade de Sao Paulo SA Prior Pfd. 409,304 3,251
* Marfrig Alimentos SA 609,952 3,153
  Light SA 292,100 3,142
  Grendene SA 400,123 3,024
  Santos Brasil Participacoes SA 202,449 2,911
  Randon Participacoes SA Prior Pfd. 544,305 2,878
  Ez Tec Empreendimentos e Participacoes SA 218,404 2,871
  Even Construtora e Incorporadora SA 711,300 2,837
  Fleury SA 241,018 2,835
  Cia Paranaense de Energia Prior Pfd. 185,200 2,736
  Helbor Empreendimentos SA 453,921 2,559
  Sao Martinho SA 199,439 2,492
  Cia de Transmissao de Energia Eletrica Paulista Prior Pfd. 152,578 2,445
  CPFL Energia SA ADR 101,714 2,369
  LPS Brasil Consultoria de Imoveis SA 135,400 2,327
* Gafisa SA 1,266,210 2,325
  Brookfield Incorporacoes SA 1,255,605 2,195
  Equatorial Energia SA 233,236 2,067
  Centrais Eletricas Brasileiras SA ADR 370,534 2,060
  Sonae Sierra Brasil SA 119,846 2,006
  SLC Agricola SA 207,464 1,982
* MMX Mineracao e Metalicos SA 988,591 1,957
  Brasil Insurance Participacoes e Administracao SA 219,143 1,936
  Contax Participacoes SA Prior Pfd. 160,369 1,893
  Tegma Gestao Logistica 102,600 1,768
  Tecnisa SA 426,249 1,763
  Cia Energetica do Ceara Prior Pfd. 96,147 1,735
* LLX Logistica SA 1,521,960 1,701
  Abril Educacao SA 92,760 1,676
  Restoque Comercio e Confeccoes de Roupas SA 390,156 1,664
  Rossi Residencial SA 773,776 1,627
  Magazine Luiza SA 290,085 1,615
  JHSF Participacoes SA 371,565 1,614
  Brasil Brokers Participacoes SA 549,700 1,543
  JSL SA 265,068 1,540
  Banco Panamericano SA Prior Pfd. 658,414 1,511
* Gol Linhas Aereas Inteligentes SA Prior Pfd. 296,600 1,482
  Technos SA 125,111 1,454
* B2W Cia Global Do Varejo 286,343 1,393
  Banco Daycoval SA Prior Pfd. 265,645 1,385
  Autometal SA 161,248 1,350
  Banco ABC Brasil SA Prior Pfd. 236,446 1,343
  Eternit SA 315,820 1,306
  Centrais Eletricas Brasileiras SA ADR 163,058 1,304
  Centrais Eletricas de Santa Catarina SA Prior Pfd. 82,391 1,206
  TPI - Triunfo Participacoes e Investimentos SA 199,349 1,094
* Gafisa SA ADR 291,900 1,071
  Banco Industrial e Comercial SA Prior Pfd. 324,000 1,062
  Saraiva SA Livreiros Editores Prior Pfd. 78,543 976
  Cremer SA 132,530 912

 

8


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Cia Ferro Ligas da Bahia - Ferbasa Prior Pfd. 185,350 910
Minerva SA 167,840 909
T4F Entretenimento SA 147,364 834
Eucatex SA Industria e Comercio Prior Pfd. 205,792 815
* Vanguarda Agro SA 3,880,600 669
Banco Pine SA Prior Pfd. 95,433 667
Tempo Participacoes SA 361,551 659
Rodobens Negocios Imobiliarios SA 101,545 640
* Gol Linhas Aereas Inteligentes SA ADR 128,200 640
Braskem SA ADR 44,400 581
* Log-in Logistica Intermodal SA 192,228 568
* General Shopping Brasil SA 93,862 494
Parana Banco SA Prior Pfd. 73,500 490
Unipar Participacoes SA Prior Pfd. 2,299,400 464
Profarma Distribuidora de Produtos Farmaceuticos SA 63,900 458
Forjas Taurus SA Prior Pfd. 260,546 425
* Fertilizantes Heringer SA 77,564 424
* Viver Incorporadora e Construtora SA 675,500 409
Oi SA ADR 87,138 406
* Industrias Romi SA 147,794 389
Cia Providencia Industria e Comercio SA 94,684 377
Kepler Weber SA 57,806 288
* IdeiasNet SA 283,957 273
* Positivo Informatica SA 101,700 263
Plascar Participacoes Industriais SA 567,786 224
* Inepar SA Industria e Construcoes Prior Pfd. 178,200 168
Refinaria de Petroleos de Manguinhos SA 787,481 132
Forjas Taurus SA 63,690 100
    2,082,390
Canada (8.5%)    
Royal Bank of Canada 6,263,563 357,094
Toronto-Dominion Bank 3,959,513 322,034
Bank of Nova Scotia 4,787,442 260,044
Suncor Energy Inc. 6,786,390 227,765
Barrick Gold Corp. 4,352,585 176,021
Canadian National Railway Co. 1,908,134 164,763
Goldcorp Inc. 3,524,776 159,343
^ Bank of Montreal (XTSE) 2,599,292 153,602
Potash Corp. of Saskatchewan Inc. 3,737,410 150,245
Canadian Natural Resources Ltd. 4,786,131 144,243
Canadian Imperial Bank of Commerce 1,762,691 138,650
TransCanada Corp. 3,065,060 138,008
Enbridge Inc. 3,245,814 129,150
Cenovus Energy Inc. 3,285,519 115,894
Manulife Financial Corp. 7,857,781 97,086
Brookfield Asset Management Inc. Class A 2,438,017 83,924
Teck Resources Ltd. Class B 2,505,892 79,536
Rogers Communications Inc. Class B 1,705,910 74,881
Encana Corp. 3,198,581 72,058
* Valeant Pharmaceuticals International Inc. 1,263,482 70,591
Agrium Inc. 649,751 68,426
Canadian Pacific Railway Ltd. 742,712 68,326
Yamana Gold Inc. 3,263,319 65,904
Sun Life Financial Inc. 2,568,023 63,690
Silver Wheaton Corp. 1,537,277 61,953
^ Crescent Point Energy Corp. 1,379,748 57,331
Imperial Oil Ltd. 1,292,010 57,165
Nexen Inc. 2,303,995 55,019
National Bank of Canada 703,729 54,382
Talisman Energy Inc. 4,482,452 50,805
Kinross Gold Corp. 4,947,736 49,143
BCE Inc. 1,108,388 48,453
First Quantum Minerals Ltd. 2,072,136 46,578
^ Thomson Reuters Corp. 1,618,800 45,578

 

9


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Canadian Oil Sands Ltd. 2,104,369 44,668
  Eldorado Gold Corp. 2,946,530 43,545
  Magna International Inc. 963,099 42,815
  Agnico-Eagle Mines Ltd. 745,242 42,077
^ TELUS Corp. Class A 644,911 41,474
  Husky Energy Inc. 1,481,082 40,113
* Catamaran Corp. 838,760 39,387
  Shoppers Drug Mart Corp. 914,492 38,118
  Power Corp. of Canada 1,518,424 36,837
  Franco-Nevada Corp. 626,231 36,060
^ Shaw Communications Inc. Class B 1,639,877 35,728
^ Pembina Pipeline Corp. 1,246,398 34,855
  Intact Financial Corp. 564,440 34,615
  Tim Hortons Inc. 679,420 33,728
  Cameco Corp. 1,715,281 33,267
  Fairfax Financial Holdings Ltd. 86,569 32,115
  ARC Resources Ltd. 1,263,580 30,680
  Pacific Rubiales Energy Corp. 1,284,146 30,202
  Great-West Lifeco Inc. 1,242,791 28,620
  Power Financial Corp. 1,081,771 27,923
  Fortis Inc. 824,242 27,869
  Penn West Petroleum Ltd. 2,062,056 26,778
  Alimentation Couche Tard Inc. Class B 544,144 26,729
  SNC-Lavalin Group Inc. 654,981 26,383
* CGI Group Inc. Class A 976,783 25,555
^ Metro Inc. 432,404 25,509
  IAMGOLD Corp. 1,633,912 25,357
  Saputo Inc. 562,389 24,680
^ Canadian Tire Corp. Ltd. Class A 338,515 24,221
  Bombardier Inc. Class B 6,237,126 23,731
* New Gold Inc. 2,010,977 23,538
^ Baytex Energy Corp. 517,122 23,533
  Viterra Inc. 1,302,100 20,521
* MEG Energy Corp. 547,006 19,980
^ Vermilion Energy Inc. 405,148 19,370
  Brookfield Office Properties Inc. 1,203,454 18,532
* Tourmaline Oil Corp. 560,489 18,519
  IGM Financial Inc. 444,575 17,641
  Finning International Inc. 745,777 17,510
  TransAlta Corp. 1,084,877 17,293
  Dollarama Inc. 272,239 17,197
  Gildan Activewear Inc. 501,306 17,071
^ Loblaw Cos. Ltd. 491,330 17,031
  Canadian Utilities Ltd. Class A 252,649 16,949
* Athabasca Oil Corp. 1,384,647 16,761
^ RioCan REIT 609,687 16,629
  Progress Energy Resources Corp. 818,300 16,485
* Osisko Mining Corp. 1,676,832 16,470
^ Keyera Corp. 333,972 16,211
^,* Research In Motion Ltd. 2,052,960 16,198
  Onex Corp. 398,966 16,059
  CI Financial Corp. 680,350 15,899
  Pan American Silver Corp. 673,334 14,771
^ Peyto Exploration & Development Corp. 594,042 14,513
  George Weston Ltd. 223,279 14,496
* Detour Gold Corp. 487,222 13,728
  Enerplus Corp. 853,708 13,719
* Open Text Corp. 253,745 13,638
* Turquoise Hill Resources Ltd. 1,738,714 13,596
  AltaGas Ltd. 390,815 13,167
^ Bonavista Energy Corp. 724,660 12,995
  Pengrowth Energy Corp. 2,160,676 12,959
  CAE Inc. 1,128,072 12,413
  Atco Ltd. 166,114 12,273

 

10


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Methanex Corp. 407,676 12,221
* Lundin Mining Corp. 2,274,763 11,844
  Bank of Montreal 199,876 11,817
* First Majestic Silver Corp. 505,200 11,680
  Inmet Mining Corp. 224,950 11,599
  ShawCor Ltd. Class A 251,533 11,207
  Aimia Inc. 747,600 11,198
  Veresen Inc. 852,347 11,001
  Industrial Alliance Insurance & Financial Services Inc. 397,556 10,887
* Celtic Exploration Ltd. 392,009 10,236
* AuRico Gold Inc. 1,218,233 10,173
  Alamos Gold Inc. 518,735 10,154
^ Gibson Energy Inc. 434,998 10,000
  Canadian Western Bank 333,660 9,875
  Progressive Waste Solutions Ltd. 510,094 9,872
  Astral Media Inc. Class A 231,010 9,456
^ H&R REIT 389,400 9,408
  West Fraser Timber Co. Ltd. 148,484 8,993
  Bell Aliant Inc. 328,427 8,918
^ Ritchie Bros Auctioneers Inc. 388,889 8,625
  Ensign Energy Services Inc. 564,200 8,434
  Centerra Gold Inc. 720,916 8,178
  Cineplex Inc. 262,521 8,148
^ Corus Entertainment Inc. Class B 347,693 7,871
* Tahoe Resources Inc. 380,150 7,750
  Empire Co. Ltd. Class A 132,100 7,697
  MacDonald Dettwiler & Associates Ltd. 137,262 7,696
  Trican Well Service Ltd. 637,400 7,607
^ Home Capital Group Inc. Class B 145,515 7,409
  Russel Metals Inc. 264,557 7,390
^ Atlantic Power Corp. 492,023 7,370
* Precision Drilling Corp. 1,010,114 7,231
  Mullen Group Ltd. 348,570 7,228
  First Capital Realty Inc. 389,167 7,209
  HudBay Minerals Inc. 755,200 7,009
  Stantec Inc. 199,800 6,882
* Paramount Resources Ltd. Class A 203,200 6,877
^ Dundee REIT 184,400 6,767
  Quebecor Inc. Class B 191,995 6,697
  Northland Power Inc. 344,099 6,670
^ Calloway REIT 230,100 6,670
  Toromont Industries Ltd. 336,283 6,599
^ Trilogy Energy Corp. 238,220 6,521
  Capital Power Corp. 302,000 6,474
^ Boardwalk REIT 100,586 6,473
^,* B2Gold Corp. 1,515,011 6,265
^ Canadian REIT 149,447 6,231
* Celestica Inc. 848,708 6,161
  Jean Coutu Group PJC Inc. Class A 409,800 6,159
^ Just Energy Group Inc. 598,325 6,123
  TransForce Inc. 329,912 6,022
* Petrobank Energy & Resources Ltd. 432,136 5,936
^,* Westport Innovations Inc. 205,658 5,745
* Canfor Corp. 402,300 5,736
  RONA Inc. 552,500 5,676
  Sherritt International Corp. 1,298,400 5,616
^ Cominar REIT 233,105 5,567
  Davis & Henderson Corp. 259,450 5,445
* Alacer Gold Corp. 987,021 5,416
* Silver Standard Resources Inc. 353,456 5,369
* Torex Gold Resources Inc. 2,556,100 5,323
* Dundee Corp. Class A 199,681 5,018
  North West Co. Inc. 210,421 4,930
  Parkland Fuel Corp. 284,822 4,859

 

11


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Superior Plus Corp. 494,080 4,828
  Laurentian Bank of Canada 108,457 4,827
* Harry Winston Diamond Corp. 335,692 4,816
  Canadian Apartment Properties REIT 196,400 4,814
  SEMAFO Inc. 1,194,070 4,782
^ Poseidon Concepts Corp. 320,721 4,743
^,* NovaGold Resources Inc. 969,962 4,710
  Maple Leaf Foods Inc. 421,355 4,683
  Pason Systems Inc. 281,635 4,588
  Linamar Corp. 207,200 4,564
^,* Uranium One Inc. 2,084,300 4,529
^ Silvercorp Metals Inc. 725,664 4,497
  Canexus Corp. 516,878 4,440
* Rubicon Minerals Corp. 1,236,097 4,381
  CCL Industries Inc. Class B 117,700 4,358
  Primaris Retail REIT 185,000 4,336
^,* Argonaut Gold Inc. 406,306 4,324
^ PetroBakken Energy Ltd. Class A 338,900 4,279
  Freehold Royalties Ltd. 209,988 4,264
  Algonquin Power & Utilities Corp. 615,700 4,260
* Secure Energy Services Inc. 439,201 4,200
* BlackPearl Resources Inc. 1,218,600 4,161
  Dorel Industries Inc. Class B 116,270 4,157
  Nevsun Resources Ltd. 873,947 4,139
* TMX Group Ltd. 80,742 4,129
* Dundee Precious Metals Inc. 446,900 4,112
* Whitecap Resources Inc. 515,503 4,103
* OceanaGold Corp. 1,154,000 4,044
^,* Pretium Resources Inc. 297,345 4,031
* Legacy Oil & Gas Inc. 561,270 4,012
* Banro Corp. 863,103 3,993
  Enerflex Ltd. 334,891 3,866
  Innergex Renewable Energy Inc. 346,759 3,771
  Artis REIT 230,100 3,765
  Allied Properties REIT 117,700 3,724
* Continental Gold Ltd. 387,471 3,689
^,* Premier Gold Mines Ltd. 644,164 3,618
^,* Birchcliff Energy Ltd. 433,497 3,555
  Major Drilling Group International 341,484 3,532
  AGF Management Ltd. Class B 353,714 3,531
  Trinidad Drilling Ltd. 532,600 3,530
* Crew Energy Inc. 454,100 3,496
^ Petrominerales Ltd. 435,457 3,492
* ATS Automation Tooling Systems Inc. 373,400 3,477
* FirstService Corp. 120,546 3,465
  Genworth MI Canada Inc. 167,600 3,433
* Endeavour Silver Corp. 376,404 3,418
  Black Diamond Group Ltd. 156,600 3,384
* TransGlobe Energy Corp. 312,296 3,365
* Capstone Mining Corp. 1,357,000 3,356
  Calfrac Well Services Ltd. 146,300 3,356
  Wajax Corp. 73,914 3,308
  Enbridge Income Fund Holdings Inc. 141,956 3,305
  CML HealthCare Inc. 386,718 3,280
  Chartwell Seniors Housing REIT 316,267 3,252
* Aurizon Mines Ltd. 699,304 3,200
^,* Endeavour Mining Corp. 1,386,760 3,194
  Manitoba Telecom Services Inc. 95,041 3,191
* Cott Corp. 407,059 3,110
* Bankers Petroleum Ltd. 1,084,700 3,084
  Bonterra Energy Corp. 68,305 3,064
* Fortuna Silver Mines Inc. 550,511 3,054
^,* Gabriel Resources Ltd. 1,258,200 3,049
^ Transcontinental Inc. Class A 292,031 3,012

 

12


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^,* China Gold International Resources Corp. Ltd. 702,000 2,987
^ Extendicare Inc. 356,988 2,920
  Wi-Lan Inc. 542,930 2,892
  Aecon Group Inc. 243,700 2,809
  Newalta Corp. 193,196 2,718
  Cogeco Cable Inc. 70,990 2,712
* Advantage Oil & Gas Ltd. 749,297 2,701
^,* Kirkland Lake Gold Inc. 272,216 2,687
  Killam Properties Inc. 207,500 2,678
* Colossus Minerals Inc. 470,500 2,671
  Niko Resources Ltd. 207,433 2,642
  Reitmans Canada Ltd. Class A 212,130 2,638
  Morneau Shepell Inc. 204,700 2,634
  Bird Construction Inc. 178,400 2,604
  Genivar Inc. 117,215 2,560
^,* MAG Silver Corp. 199,899 2,546
  Valener Inc. 157,119 2,504
* Paladin Labs Inc. 58,600 2,501
  Savanna Energy Services Corp. 359,200 2,500
^,* Seabridge Gold Inc. 145,608 2,496
* Romarco Minerals Inc. 2,599,672 2,473
* Great Canadian Gaming Corp. 256,900 2,469
* Imperial Metals Corp. 191,800 2,452
^ Twin Butte Energy Ltd. 820,800 2,441
* Taseko Mines Ltd. 866,343 2,368
  Canyon Services Group Inc. 215,256 2,302
^,* Southern Pacific Resource Corp. 1,699,160 2,297
* Martinrea International Inc. 318,600 2,290
^,* Golden Star Resources Ltd. 1,109,556 2,233
^,* Ithaca Energy Inc. 1,152,100 2,226
* Uranium Participation Corp. 444,700 2,213
  EnerCare Inc. 256,100 2,182
  Morguard REIT 120,200 2,166
  Torstar Corp. Class B 264,900 2,135
* Surge Energy Inc. 314,540 2,126
* Parex Resources Inc. 468,200 2,105
* Rainy River Resources Ltd. 384,100 2,092
* Norbord Inc. 100,500 2,089
* Bellatrix Exploration Ltd. 490,207 2,042
^,* Tanzanian Royalty Exploration Corp. 401,165 2,028
  Northern Property REIT 64,373 2,020
  Canadian Energy Services & Technology Corp. 196,830 2,018
  Total Energy Services Inc. 130,655 1,982
^ Student Transportation Inc. 305,490 1,964
  Canaccord Financial Inc. 391,747 1,957
* NGEx Resources Inc. 586,578 1,844
^,* Thompson Creek Metals Co. Inc. 697,500 1,830
  Medical Facilities Corp. 128,430 1,826
* Sabina Gold & Silver Corp. 624,200 1,812
* Copper Mountain Mining Corp. 446,611 1,807
* NuVista Energy Ltd. 342,300 1,789
  Liquor Stores N.A. Ltd. 95,920 1,761
* Denison Mines Corp. 1,348,702 1,742
  AG Growth International Inc. 53,600 1,718
* Element Financial Corp. 274,400 1,687
  Western Energy Services Corp. 229,200 1,641
* TAG Oil Ltd. 231,900 1,625
  Alaris Royalty Corp. 71,770 1,617
* Long Run Exploration Ltd. 375,273 1,541
^ Crombie REIT 97,300 1,470
* Sprott Resource Corp. 376,500 1,466
^ Premium Brands Holdings Corp. 78,744 1,433
  Canfor Pulp Products Inc. 156,266 1,416
* Keegan Resources Inc. 357,093 1,409

 

13


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^,* Lake Shore Gold Corp. 1,716,500 1,375
  GMP Capital Inc. 260,800 1,374
  Cascades Inc. 275,325 1,345
* Angle Energy Inc. 358,200 1,345
* High River Gold Mines Ltd. 956,700 1,331
* San Gold Corp. 1,332,689 1,308
  Capstone Infrastructure Corp. 316,400 1,305
  Dundee International REIT 106,145 1,185
* Queenston Mining Inc. 288,894 1,180
* Atrium Innovations Inc. 113,900 1,174
* Cequence Energy Ltd. 617,212 1,143
* Katanga Mining Ltd. 2,329,500 1,120
^,* Guyana Goldfields Inc. 375,500 1,117
^,* North American Palladium Ltd. 724,999 1,111
^,* Northern Dynasty Minerals Ltd. 304,582 1,083
  Zargon Oil & Gas Ltd. 124,600 1,069
* Augusta Resource Corp. 382,055 1,033
  Alliance Grain Traders Inc. 74,400 1,028
* Sierra Wireless Inc. 128,113 1,026
  Gluskin Sheff & Associates Inc. 67,400 968
* C&C Energia Ltd. 165,500 964
* Connacher Oil and Gas Ltd. 2,139,500 964
* Alexco Resource Corp. 243,578 939
* Midas Gold Corp. 321,100 916
  NorthWest Healthcare Properties REIT 69,160 911
^ InnVest REIT 185,400 902
^,* Canacol Energy Ltd. 2,517,000 895
  Sprott Inc. 201,500 892
* Boralex Inc. Class A 85,120 822
^,* International Tower Hill Mines Ltd. 335,175 812
^,* Avalon Rare Metals Inc. 488,671 783
* Veris Gold Corp. 254,435 769
  Brick Ltd. 221,000 730
  Churchill Corp. Class A 83,400 701
^,* Ivanhoe Energy Inc. 1,121,300 696
  Longview Oil Corp. 105,718 694
^,* SouthGobi Resources Ltd. 339,719 690
* Sandvine Corp. 573,900 684
* Fortress Paper Ltd. Class A 49,616 647
* 5N Plus Inc. 283,800 625
* Alterra Power Corp. 1,370,800 597
* Eastern Platinum Ltd. 3,537,000 584
* Pace Oil & Gas Ltd. 197,200 555
* EXFO Inc. 111,052 500
* Fairborne Energy Ltd. 304,700 485
^,* Exeter Resource Corp. 335,315 470
^,* BNK Petroleum Inc. 638,813 416
^,* Mercator Minerals Ltd. 798,900 396
^,* Labrador Iron Mines Holdings Ltd. 381,246 366
^,* Eco Oro Minerals Corp. 299,000 365
^,* Gasfrac Energy Services Inc. 239,831 339
^,* Jaguar Mining Inc. 327,600 338
^,* Cline Mining Corp. 738,631 192
^,* Great Basin Gold Ltd. 2,279,068 183
^,* Sino-Forest Corp. 811,800
      6,379,583
Chile (0.4%)    
  Empresas COPEC SA 1,976,993 28,472
  Cencosud SA 4,342,048 23,767
  Latam Airlines Group SA (Santiago Shares) 869,373 21,496
  SACI Falabella 2,082,259 21,360
  Empresas CMPC SA 4,768,436 18,160
  Empresa Nacional de Electricidad SA 10,082,102 16,198
  Sociedad Quimica y Minera de Chile SA Prior Pfd. Class B 265,547 15,419

 

14


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Enersis SA 41,296,762 14,107
Banco Santander Chile 191,915,361 13,215
Banco de Chile 75,680,264 11,298
CAP SA 320,993 11,056
ENTEL Chile SA 506,287 10,359
* Colbun SA 33,589,216 9,376
Banco de Credito e Inversiones 135,532 8,711
Sociedad Quimica y Minera de Chile SA ADR 131,521 7,608
Cia Cervecerias Unidas SA 472,459 6,869
Empresa Nacional de Electricidad SA ADR 139,605 6,683
Aguas Andinas SA Class A 9,854,661 6,634
AES Gener SA 10,512,610 6,266
Banco Santander Chile ADR 229,722 6,246
Corpbanca SA 464,486,946 6,080
E.CL SA 2,222,891 5,434
* Latam Airlines Group SA 217,064 5,290
Enersis SA ADR 294,595 4,990
Administradora de Fondos de Pensiones Provida SA 696,972 4,942
Sonda SA 1,507,138 4,611
Vina Concha y Toro SA 2,211,895 4,472
Parque Arauco SA 1,811,313 4,133
Salfacorp SA 1,384,644 3,269
Inversiones Aguas Metropolitanas SA 1,712,262 3,185
* Sociedad Matriz SAAM SA 25,209,611 2,947
* Empresas La Polar SA 4,612,311 2,221
Besalco SA 1,125,511 2,049
* Cia Sud Americana de Vapores SA 21,281,074 2,035
* Latam Airlines Group SA ADR 65,079 1,613
Cruz Blanca Salud SA 1,061,377 1,389
* AquaChile SA 1,442,726 1,031
Socovesa SA 1,903,070 1,001
Masisa SA 8,671,167 937
Empresas Iansa SA 10,867,632 847
Enjoy SA 3,413,774 771
Norte Grande SA 75,879,220 716
Multiexport Foods SA 2,242,559 544
Empresas Hites SA 550,333 429
PAZ Corp. SA 343,260 217
* Cia Pesquera Camanchaca SA 4,426,768 212
    328,665
China (4.2%)    
China Mobile Ltd. 26,210,500 290,720
China Construction Bank Corp. 313,727,340 235,191
Industrial & Commercial Bank of China Ltd. 283,177,760 186,472
CNOOC Ltd. 77,702,000 159,909
Tencent Holdings Ltd. 4,410,749 155,146
Bank of China Ltd. 327,541,306 134,188
PetroChina Co. Ltd. 91,726,000 124,465
China Life Insurance Co. Ltd. 32,380,000 95,214
China Petroleum & Chemical Corp. 73,006,000 76,939
Ping An Insurance Group Co. of China Ltd. 8,158,700 64,205
China Shenhua Energy Co. Ltd. 14,787,000 62,655
China Overseas Land & Investment Ltd. 17,793,680 46,332
Agricultural Bank of China Ltd. 93,498,870 40,285
Belle International Holdings Ltd. 20,202,000 37,463
China Telecom Corp. Ltd. 60,460,000 35,771
Want Want China Holdings Ltd. 25,933,500 35,306
China Unicom Hong Kong Ltd. 20,531,694 33,100
China Merchants Bank Co. Ltd. 16,974,052 31,538
Hengan International Group Co. Ltd. 3,204,000 29,092
China Pacific Insurance Group Co. Ltd. 8,543,638 26,638
Kunlun Energy Co. Ltd. 13,992,300 25,901
Tingyi Cayman Islands Holding Corp. 8,480,000 25,123
Bank of Communications Co. Ltd. 31,406,150 22,351

 

15


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Lenovo Group Ltd. 26,970,000 21,594
^ China Minsheng Banking Corp. Ltd. 22,513,932 20,390
  China Resources Land Ltd. 8,842,000 20,057
^ Anhui Conch Cement Co. Ltd. 5,359,000 18,407
  China Communications Construction Co. Ltd. 19,254,000 17,972
  China Coal Energy Co. Ltd. 17,849,000 17,638
  China Resources Power Holdings Co. Ltd. 8,233,600 17,605
  China Resources Enterprise Ltd. 5,222,000 16,919
  China Citic Bank Corp. Ltd. 32,325,446 16,425
  China Mengniu Dairy Co. Ltd. 5,398,000 16,325
  China Merchants Holdings International Co. Ltd. 4,854,000 16,012
^ China National Building Material Co. Ltd. 12,508,000 15,831
  Jiangxi Copper Co. Ltd. 6,052,000 15,550
  PICC Property & Casualty Co. Ltd. 11,612,400 15,373
  Dongfeng Motor Group Co. Ltd. 11,730,000 14,508
  Beijing Enterprises Holdings Ltd. 2,220,000 14,310
  Inner Mongolia Yitai Coal Co. Ltd. Class B 2,608,263 14,171
  ENN Energy Holdings Ltd. 3,252,000 13,505
* Brilliance China Automotive Holdings Ltd. 10,838,000 13,392
  Yanzhou Coal Mining Co. Ltd. 8,486,000 12,649
  China Oilfield Services Ltd. 6,656,000 12,559
^ Shimao Property Holdings Ltd. 6,503,000 12,334
^ Great Wall Motor Co. Ltd. 4,518,000 12,327
  Sinopharm Group Co. Ltd. 3,430,800 11,497
  Sun Art Retail Group Ltd. 8,217,000 11,151
  Huaneng Power International Inc. 13,814,000 11,036
^ Zijin Mining Group Co. Ltd. 26,033,000 10,461
  COSCO Pacific Ltd. 7,034,000 10,343
  Longfor Properties Co. Ltd. 5,847,500 10,271
^ Evergrande Real Estate Group Ltd. 22,937,883 9,948
  Shandong Weigao Group Medical Polymer Co. Ltd. 6,932,000 9,349
  China State Construction International Holdings Ltd. 7,671,442 9,093
  China Railway Group Ltd. 17,512,000 8,878
  Guangdong Investment Ltd. 10,770,000 8,792
  Sino-Ocean Land Holdings Ltd. 14,083,500 8,784
^ China Railway Construction Corp. Ltd. 8,664,800 8,560
^ Zoomlion Heavy Industry Science and Technology Co. Ltd. 5,955,022 7,966
  Kingboard Chemical Holdings Ltd. 2,605,000 7,712
  Country Garden Holdings Co. Ltd. 19,136,284 7,639
  Shanghai Industrial Holdings Ltd. 2,353,000 7,529
  MGM China Holdings Ltd. 4,145,200 7,448
^ Weichai Power Co. Ltd. 2,110,560 7,441
^,* Aluminum Corp. of China Ltd. 17,148,000 7,428
  China Vanke Co. Ltd. Class B 5,688,951 7,417
  China Gas Holdings Ltd. 13,480,000 7,324
  China Resources Gas Group Ltd. 3,177,000 7,027
^ Citic Pacific Ltd. 5,521,000 7,012
^ Geely Automobile Holdings Ltd. 16,105,000 6,887
  Tsingtao Brewery Co. Ltd. 1,266,000 6,829
^ Agile Property Holdings Ltd. 5,952,000 6,717
  Guangzhou Automobile Group Co. Ltd. 9,543,883 6,535
* China Taiping Insurance Holdings Co. Ltd. 3,755,200 6,404
^ Golden Eagle Retail Group Ltd. 2,924,000 6,384
  Zhaojin Mining Industry Co. Ltd. 3,788,500 6,369
^ CSR Corp. Ltd. 8,227,000 6,352
  Soho China Ltd. 9,005,000 6,093
  China Longyuan Power Group Corp. 9,352,000 6,066
^ GCL-Poly Energy Holdings Ltd. 34,015,000 6,013
  Yuexiu Property Co. Ltd. 21,810,000 5,963
  Zhuzhou CSR Times Electric Co. Ltd. 2,013,000 5,886
^ Uni-President China Holdings Ltd. 4,679,000 5,877
  Air China Ltd. 8,304,000 5,867
  China Communications Services Corp. Ltd. 10,401,600 5,845
  China Resources Cement Holdings Ltd. 8,595,845 5,811

 

16


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  China Shanshui Cement Group Ltd. 7,850,000 5,808
  Digital China Holdings Ltd. 3,302,000 5,535
  China Everbright Ltd. 3,762,000 5,445
^,* China COSCO Holdings Co. Ltd. 11,017,500 5,438
  Beijing Capital International Airport Co. Ltd. 8,098,000 5,196
^,* Poly Property Group Co. Ltd. 8,521,000 5,139
  Sino Biopharmaceutical 12,892,000 5,130
  Parkson Retail Group Ltd. 6,075,000 5,130
  Intime Department Store Group Co. Ltd. 4,308,500 5,077
^ Nine Dragons Paper Holdings Ltd. 7,070,669 4,946
  Shanghai Electric Group Co. Ltd. 12,162,000 4,916
  Far East Horizon Ltd. 6,973,598 4,912
^ China Everbright International Ltd. 9,567,000 4,907
  Chongqing Rural Commercial Bank 10,495,000 4,899
  Shui On Land Ltd. 11,589,699 4,883
  Shanghai Pharmaceuticals Holding Co. Ltd. 2,635,200 4,874
^ Guangzhou R&F Properties Co. Ltd. 3,910,400 4,779
  China BlueChemical Ltd. 7,558,000 4,772
  Daphne International Holdings Ltd. 3,950,000 4,746
  CITIC Securities Co. Ltd. 2,519,000 4,702
  Datang International Power Generation Co. Ltd. 13,238,000 4,694
* Haier Electronics Group Co. Ltd. 3,663,000 4,665
  Franshion Properties China Ltd. 15,218,000 4,633
* GOME Electrical Appliances Holding Ltd. 44,467,612 4,619
  Zhejiang Expressway Co. Ltd. 6,308,000 4,588
  China Agri-Industries Holdings Ltd. 7,158,000 4,461
^ Huabao International Holdings Ltd. 8,952,000 4,456
^,* China Yurun Food Group Ltd. 5,985,413 4,366
^,* Byd Co. Ltd. 2,213,500 4,339
  Shougang Fushan Resources Group Ltd. 12,458,000 4,335
^,* China Shipping Container Lines Co. Ltd. 16,257,000 4,313
  Lee & Man Paper Manufacturing Ltd. 8,254,000 4,311
  Jiangsu Expressway Co. Ltd. 4,968,000 4,271
  BBMG Corp. 4,804,500 4,102
^ Skyworth Digital Holdings Ltd. 7,529,000 4,047
  Wumart Stores Inc. 2,232,000 3,954
  Bosideng International Holdings Ltd. 12,338,000 3,900
^ Shenzhou International Group Holdings Ltd. 2,004,000 3,896
^ ZTE Corp. 2,757,582 3,867
  China Southern Airlines Co. Ltd. 8,008,000 3,776
^ Yingde Gases 3,924,500 3,715
  AviChina Industry & Technology Co. Ltd. 8,744,000 3,579
* Semiconductor Manufacturing International Corp. 89,669,000 3,505
  China International Marine Containers Group Co. Ltd. Class B 2,833,953 3,485
  Fosun International Ltd. 7,106,500 3,482
  Dah Chong Hong Holdings Ltd. 3,659,000 3,436
  Greentown China Holdings Ltd. 2,756,000 3,382
^ Anta Sports Products Ltd. 3,890,000 3,301
  Shenzhen International Holdings Ltd. 39,820,000 3,280
^ Zhongsheng Group Holdings Ltd. 2,540,500 3,263
  China Overseas Grand Oceans Group Ltd. 3,036,500 3,160
^ Beijing Enterprises Water Group Ltd. 13,776,000 3,152
^ Vinda International Holdings Ltd. 2,193,000 3,051
^ China Rongsheng Heavy Industries Group Holdings Ltd. 14,153,804 3,029
  KWG Property Holding Ltd. 5,112,000 3,027
^ Hengdeli Holdings Ltd. 9,656,000 3,020
^ China Shipping Development Co. Ltd. 5,780,000 3,020
^ Sihuan Pharmaceutical Holdings Group Ltd. 7,675,000 3,002
  Haitian International Holdings Ltd. 2,430,000 2,991
  Sinopec Shanghai Petrochemical Co. Ltd. 10,406,000 2,969
^,* Angang Steel Co. Ltd. 4,882,000 2,909
  Minth Group Ltd. 2,886,000 2,897
^,* China Zhongwang Holdings Ltd. 6,894,000 2,746
^ Dongyue Group 4,719,000 2,685

 

17


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* MMG Ltd. 6,728,000 2,658
^,* Hopson Development Holdings Ltd. 2,740,000 2,634
^ China Power International Development Ltd. 9,549,000 2,594
^ China Lumena New Materials Corp. 12,640,000 2,561
^ China Metal Recycling Holdings Ltd. 2,568,000 2,558
^,* China ZhengTong Auto Services Holdings Ltd. 3,763,500 2,536
  Yuexiu REIT 5,278,000 2,516
  China Medical System Holdings Ltd. 4,347,500 2,502
  Shenzhen Investment Ltd. 9,410,000 2,489
  China Travel International Inv HK 12,500,000 2,411
^,* China Precious Metal Resources Holdings Co. Ltd. 12,544,000 2,410
^ Dongfang Electric Corp. Ltd. 1,416,800 2,361
  Harbin Electric Co. Ltd. 2,830,000 2,329
  China Shineway Pharmaceutical Group Ltd. 1,432,000 2,286
^,* Metallurgical Corp. of China Ltd. 12,285,000 2,274
^ REXLot Holdings Ltd. 31,050,000 2,238
  Sany Heavy Equipment International Holdings Co. Ltd. 4,149,000 2,170
^ Towngas China Co. Ltd. 2,752,000 2,162
^,* Renhe Commercial Holdings Co. Ltd. 51,071,635 2,158
  CSG Holding Co. Ltd. Class B 3,285,692 2,071
^ Sinopec Kantons Holdings Ltd. 2,782,000 2,071
  Sinofert Holdings Ltd. 9,780,000 2,059
^ Tong Ren Tang Technologies Co. Ltd. 1,142,000 2,052
^,* China Modern Dairy Holdings Ltd. 7,930,000 2,052
  Tianneng Power International Ltd. 2,976,000 2,006
  Travelsky Technology Ltd. 3,862,000 1,989
^,* Hunan Nonferrous Metal Corp. Ltd. 6,632,000 1,961
  Sunac China Holdings Ltd. 3,706,000 1,953
  Anxin-China Holdings Ltd. 8,572,000 1,896
^,* Glorious Property Holdings Ltd. 12,083,000 1,894
  Asian Citrus Holdings Ltd. 3,389,000 1,893
^ Lonking Holdings Ltd. 8,087,000 1,884
  China Wireless Technologies Ltd. 6,444,000 1,869
* China Oil and Gas Group Ltd. 15,600,000 1,865
  Kingboard Laminates Holdings Ltd. 4,384,000 1,862
* North Mining Shares Co. Ltd. 32,750,000 1,837
  Jiangsu Future Land Co. Ltd. Class B 2,796,300 1,804
* Citic Resources Holdings Ltd. 11,566,600 1,766
* Lijun International Pharmaceutical Holding Ltd. 6,414,000 1,735
^ West China Cement Ltd. 9,376,000 1,683
^,* Li Ning Co. Ltd. 3,182,500 1,682
^,* Kingdee International Software Group Co. Ltd. 8,127,600 1,679
  Zhejiang Southeast Electric Power Co. Class B 3,053,900 1,663
^ Biostime International Holdings Ltd. 646,000 1,652
^ Kingsoft Corp. Ltd. 2,760,000 1,596
^ Ajisen China Holdings Ltd. 2,313,000 1,595
^,* China High Speed Transmission Equipment Group Co. Ltd. 4,529,000 1,551
^ NVC Lighting Holdings Ltd. 5,816,000 1,533
  Phoenix Satellite Television Holdings Ltd. 4,616,000 1,464
^ Sinotrans Shipping Ltd. 5,950,500 1,455
* First Tractor Co. Ltd. 1,744,000 1,448
^,* Kaisa Group Holdings Ltd. 7,740,000 1,443
  Ju Teng International Holdings Ltd. 3,616,000 1,441
^ Comba Telecom Systems Holdings Ltd. 3,663,699 1,425
  China Dongxiang Group Co. 11,322,000 1,411
  Lao Feng Xiang Co. Ltd. Class B 838,560 1,409
^ New World Department Store China Ltd. 2,332,000 1,395
^ Billion Industrial Holdings Ltd. 2,642,500 1,379
  Anton Oilfield Services Group 4,444,000 1,338
^ China National Materials Co. Ltd. 4,265,000 1,328
^ Fufeng Group Ltd. 3,459,000 1,313
^ Tibet 5100 Water Resources Holdings Ltd. 4,636,000 1,306
  Shenzhen Expressway Co. Ltd. 3,434,000 1,299
^ DBA Telecommunication Asia Holdings Ltd. 2,364,000 1,289

 

18


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^ Maoye International Holdings Ltd. 6,358,000 1,272
  TCL Multimedia Technology Holdings Ltd. 2,294,000 1,270
  Kingway Brewery Holdings Ltd. 3,534,000 1,252
  VODone Ltd. 13,006,000 1,251
  Xingda International Holdings Ltd. 3,537,000 1,249
  Hangzhou Steam Turbine Co. Class B 1,108,836 1,237
  China Water Affairs Group Ltd. 4,708,000 1,237
  Beijing Capital Land Ltd. 4,128,000 1,231
^ Lianhua Supermarket Holdings Co. Ltd. 1,517,000 1,222
^ XTEP International Holdings 2,762,500 1,199
  Luthai Textile Co. Ltd. Class B 1,368,700 1,194
^ Hua Han Bio-Pharmaceutical Holdings Ltd. 5,144,800 1,185
^ China South City Holdings Ltd. 7,484,000 1,184
* Tech Pro Technology Development Ltd. 3,144,000 1,179
  C C Land Holdings Ltd. 5,147,000 1,172
  Yuanda China Holdings Ltd. 10,004,000 1,170
^ China Singyes Solar Technologies Holdings Ltd. 1,982,400 1,169
^ Ports Design Ltd. 1,648,000 1,168
* Interchina Holdings Co. 18,300,000 1,165
  Dazhong Transportation Group Co. Ltd. Class B 2,405,200 1,151
  China Suntien Green Energy Corp. Ltd. 5,645,000 1,147
^ China Datang Corp. Renewable Power Co. Ltd. 10,414,000 1,136
  Sinotrans Ltd. 7,320,000 1,130
  Cosco International Holdings Ltd. 2,774,000 1,121
^ Real Nutriceutical Group Ltd. 3,144,000 1,118
^ Tiangong International Co. Ltd. 4,614,000 1,108
  Greatview Aseptic Packaging Co. Ltd. 2,108,000 1,103
^,* Yanchang Petroleum International Ltd. 16,980,000 1,093
* Shanghai Industrial Urban Development Group Ltd. 6,496,000 1,083
^ China Rare Earth Holdings Ltd. 4,754,000 1,081
  Yuexiu Transport Infrastructure Ltd. 2,398,000 1,076
^ Winsway Coking Coal Holding Ltd. 6,669,000 1,072
  Microport Scientific Corp. 2,081,000 1,068
^,* Shougang Concord International Enterprises Co. Ltd. 19,806,000 1,055
  Global Bio-Chem Technology Group Co. Ltd. 8,962,000 1,036
^ Xinhua Winshare Publishing and Media Co. Ltd. 1,924,000 1,030
^ Hidili Industry International Development Ltd. 4,069,000 1,028
^ Honghua Group Ltd. 4,396,000 1,022
  PCD Stores Group Ltd. 10,856,000 1,018
^ Chaowei Power Holdings Ltd. 1,874,000 1,016
  CIMC Enric Holdings Ltd. 1,360,000 984
^ China Lilang Ltd. 1,707,000 967
  Anhui Expressway Co. 1,998,000 957
  Sunny Optical Technology Group Co. Ltd. 1,632,000 956
  Tianjin Port Development Holdings Ltd. 7,660,000 946
  Powerlong Real Estate Holdings Ltd. 5,624,000 946
* Tianjin Development Hldgs Ltd. 1,980,000 940
  TPV Technology Ltd. 4,244,000 937
^,* China Pharmaceutical Group Ltd. 3,216,000 936
  Shanghai Diesel Engine Co. Ltd. Class B 1,620,960 920
  Yashili International Holdings Ltd. 3,907,000 920
  Shandong Chenming Paper Holdings Ltd. Class B 2,296,000 914
  Asia Cement China Holdings Corp. 2,148,000 908
  China SCE Property Holdings Ltd. 3,954,000 908
  China National Accord Medicines Corp. Ltd. Class B 315,600 902
  China Haidian Holdings Ltd. 8,316,000 898
  MIE Holdings Corp. 3,218,000 879
  Shanghai Mechanical and Electrical Industry Co. Ltd. Class B 846,120 851
^ Shanghai Jin Jiang International Hotels Group Co. Ltd. 5,476,000 846
  Livzon Pharmaceutical Group Inc. Class B 304,511 846
  Shanghai Jinjiang International Hotels Development Co. Ltd. Class B 630,600 843
  Yuzhou Properties Co. 3,615,600 837
^,* Jinchuan Group International Resources Co. Ltd. 4,281,000 825
  Shenzhen Chiwan Wharf Holdings Ltd. Class B 668,692 819

 

19


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Kai Yuan Holdings Ltd. 30,220,000 818
  China Sanjiang Fine Chemicals Co. Ltd. 2,528,000 813
  Qingling Motors Co. Ltd. 3,348,000 810
^ CPMC Holdings Ltd. 1,142,000 804
* Shanghai Chlor-Alkali Chemical Co. Ltd. Class B 1,840,200 804
* China Power New Energy Development Co. Ltd. 19,840,000 802
  Magic Holdings International Ltd. 2,091,600 799
^,* Sino Oil And Gas Holdings Ltd. 41,215,000 796
  Yip's Chemical Holdings Ltd. 1,148,000 774
  Wasion Group Holdings Ltd. 2,110,000 770
^ Prince Frog International Holdings Ltd. 1,989,000 762
  Huangshan Tourism Development Co. Ltd. Class B 654,900 760
^ 361 Degrees International Ltd. 2,643,000 758
  Central China Real Estate Ltd. 3,111,736 753
  Golden Meditech Holdings Ltd. 6,340,000 751
  Baoye Group Co. Ltd. 1,466,000 748
  Shanghai Jinqiao Export Processing Zone Development Co. Ltd. Class B 1,092,025 738
  Road King Infrastructure Ltd. 1,056,000 734
^ China Vanadium Titano - Magnetite Mining Co. Ltd. 3,834,000 733
  Trauson Holdings Co. Ltd. 1,388,000 722
^ China Automation Group Ltd. 3,049,000 721
  Fantasia Holdings Group Co. Ltd. 7,173,000 718
  NetDragon Websoft Inc. 668,508 713
  Shandong Airlines Co. Ltd. 513,664 708
^,* Chinasoft International Ltd. 2,890,000 706
* Shanghai Haixin Group Co. Class B 1,818,194 705
^,* China Huiyuan Juice Group Ltd. 2,228,000 697
  China Aerospace International Holdings Ltd. 8,706,000 693
  BYD Electronic International Co. Ltd. 3,258,500 691
* Texhong Textile Group Ltd. 1,448,000 682
  Changshouhua Food Co. Ltd. 1,314,000 676
  Weiqiao Textile Co. 1,725,500 673
  Minmetals Land Ltd. 4,984,000 672
  Chongqing Machinery & Electric Co. Ltd. 4,392,000 665
  Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. 1,635,000 661
  HKC Holdings Ltd. 16,443,000 656
* China Properties Group Ltd. 2,120,000 654
  Regent Manner International Holdings Ltd. 3,108,000 647
^,* Guangzhou Shipyard International Co. Ltd. 857,800 642
  Beijing North Star Co. Ltd. 3,098,000 640
^ Hilong Holding Ltd. 2,347,000 640
  China Merchants China Direct Investments Ltd. 466,000 628
  Shanghai Baosight Software Co. Ltd. Class B 578,670 621
^,* Boshiwa International Holding Ltd. 2,777,000 602
  China Aoyuan Property Group Ltd. 4,366,000 601
  Foshan Electrical and Lighting Co. Ltd. Class B 980,559 600
^ China All Access Holdings Ltd. 3,144,000 599
^,* Hisense Kelon Electrical Holdings Co. Ltd. Class A 1,862,000 596
  Goldlion Holdings Ltd. 1,309,000 595
  TCL Communication Technology Holdings Ltd. 1,938,000 592
^ Chiho-Tiande Group Ltd. 1,176,000 581
  Lingbao Gold Co. Ltd. 1,316,000 580
  AMVIG Holdings Ltd. 1,954,000 579
^ Xinjiang Xinxin Mining Industry Co. Ltd. 2,745,000 575
  Hutchison Harbour Ring Ltd. 6,762,000 574
^ Dongjiang Environmental Co. Ltd. 143,200 572
  China Forestry Holdings Co. Ltd. 3,050,000 570
  Shandong Luoxin Pharmacy Stock Co. Ltd. 692,000 553
  Shanghai Highly Group Co. Ltd. Class B 1,091,600 550
^ China Outfitters Holdings Ltd. 3,210,000 546
^,* China ITS Holdings Co. Ltd. 3,475,000 544
* Sinolink Worldwide Holdings Ltd. 7,104,000 529
* Citic 21CN Co. Ltd. 8,556,000 528
  Lai Fung Holdings Ltd. 25,122,000 525

 

20


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd. Class B 761,560 518
* SRE Group Ltd. 13,162,000 515
^,* Apollo Solar Energy Technology Holdings Ltd. 19,136,000 512
^ Peak Sport Products Co. Ltd. 2,686,000 507
  Pacific Online Ltd. 1,597,200 502
  Double Coin Holdings Ltd. Class B 945,900 499
  China Glass Holdings Ltd. 3,608,000 499
  MIN XIN Holdings Ltd. 908,000 498
^ Shandong Chenming Paper Holdings Ltd. 1,337,000 495
* SGSB Group Co. Ltd. Class B 1,210,896 492
  Hosa International Ltd. 1,628,000 491
  Labixiaoxin Snacks Group Ltd. 1,375,000 490
* Shanghai Shibei Hi-Tech Co. Ltd. Class B 1,316,000 490
* Pou Sheng International Holdings Ltd. 7,678,750 489
  China Tontine Wines Group Ltd. 4,750,000 489
* Hubei Sanonda Co. Ltd. Class B 1,294,400 482
^,* China Green Holdings Ltd. 2,190,000 481
* CGN Mining Co. Ltd. 4,560,000 475
^ Welling Holding Ltd. 3,869,200 467
* Shanghai Lingyun Industries Development Co. Ltd. Class B 973,000 466
  Eastern Communications Co. Ltd. Class B 1,274,400 457
  O-Net Communications Group Ltd. 1,695,000 446
  Konka Group Co. Ltd. Class B 1,630,100 444
* INESA Electron Co. Ltd. Class B 1,362,220 433
  Shanghai Prime Machinery Co. Ltd. 2,990,000 427
  Sparkle Roll Group Ltd. 7,112,000 425
* Chigo Holding Ltd. 17,208,000 425
^,* Heng Tai Consumables Group Ltd. 20,075,693 424
  Wuxi Little Swan Co. Ltd. Class B 484,390 417
  Shanghai Jinjiang International Travel Co. Ltd. Class B 353,700 416
  Shenzhen Chiwan Petroleum Class B 369,300 414
  Jingwei Textile Machinery 776,000 414
  Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B 590,800 414
  Inspur International Ltd. 12,855,000 413
  Qunxing Paper Holdings Co. Ltd. 1,573,000 412
* Shanghai Dingli Technology Development Group Co. Ltd. Class B 669,300 409
* Extrawell Pharmaceutical Holdings Ltd. 6,780,000 406
  Winteam Pharmaceutical Group Ltd. 2,086,000 403
  Xiamen International Port Co. Ltd. 3,478,000 403
* BaWang International Group Holding Ltd. 4,350,000 397
* Chongqing Iron & Steel Co. Ltd. 2,524,000 392
* Jinshan Development & Construction Co. Ltd. Class B 947,900 390
  China Qinfa Group Ltd. 2,590,000 389
  Guangdong Provincial Expressway Development Co. Ltd. Class B 1,270,700 389
* China Fangda Group Co. Ltd. Class B 1,313,790 383
* AVIC International Holding HK Ltd. 12,008,000 381
* Viva China Holdings Ltd. 31,250,000 378
  Beijing Jingkelong Co. Ltd. 649,000 377
^ CITIC Dameng Holdings Ltd. 3,253,000 372
* Huadian Energy Co. Ltd. Class B 1,582,400 372
  Shandong Molong Petroleum Machinery Co. Ltd. 1,047,200 364
  Shengli Oil & Gas Pipe Holdings Ltd. 3,924,000 358
* Binhai Investment Co. Ltd. 6,388,000 350
^,* Daqing Dairy Holdings Ltd. 1,578,000 342
  Xiwang Special Steel Co. Ltd. 2,035,000 338
* Shanghai Dajiang Group Class B 1,319,101 335
  International Taifeng Holdings Ltd. 1,102,000 334
* SPG Land Holdings Ltd. 1,358,000 334
* China Mining Resources Group Ltd. 22,644,000 330
^,* Heng Xin China Holdings Ltd. 8,704,000 330
  Tianjin Capital Environmental Protection Group Co. Ltd. 1,360,000 316
  Le Saunda Holdings Ltd. 1,076,000 316
  SinoMedia Holding Ltd. 648,000 316
* Century Ginwa Retail Holdings Ltd. 5,548,000 315

 

21


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Overseas Chinese Town Asia Holdings Ltd. 860,000 314
* Asia Energy Logistics Group Ltd. 22,050,000 303
  Hainan Meilan International Airport Co. Ltd. 483,000 301
* Goodtop Tin International Holdings Ltd. 5,820,000 299
  Henderson Investment Ltd. 3,874,000 299
  Beijing Jingneng Clean Energy Co. Ltd. 1,386,000 293
  Catic Shenzhen Holdings Ltd. 800,000 293
* Shenzhen International Enterprise Class B 229,100 293
  Boer Power Holdings Ltd. 809,000 291
^,* Comtec Solar Systems Group Ltd. 2,464,000 287
* Jinzhou Port Co. Ltd. Class B 820,600 280
^,* Loudong General Nice Resources China Holdings Ltd. 6,465,600 275
  China Flooring Holding Co. Ltd. 1,431,000 274
  Great Wall Technology Co. Ltd. 1,532,000 273
  SYP Glass Group Co. Ltd. 655,200 268
* Beijing Properties Holdings Ltd. 7,294,000 268
  Dawnrays Pharmaceutical Holdings Ltd. 1,168,000 247
^ Youyuan International Holdings Ltd. 996,000 244
^ Credit China Holdings Ltd. 2,942,400 242
* China New Town Development Co. Ltd. 6,177,694 235
  Good Friend International Holdings Inc. 654,000 229
* ChinaVision Media Group Ltd. 6,300,000 227
  Leoch International Technology Ltd. 1,412,000 222
  Sijia Group Co. 1,027,000 212
* SMI Corp. Ltd. 8,872,000 209
  DaChan Food Asia Ltd. 1,452,000 208
* Solargiga Energy Holdings Ltd. 3,623,000 202
* PAX Global Technology Ltd. 1,109,000 197
* Ausnutria Dairy Corp. Ltd. 1,045,000 197
  China Nickel Resources Holdings Co. Ltd. 2,464,000 196
  China Starch Holdings Ltd. 6,605,000 196
  Yantai North Andre Juice Co. 4,955,000 194
  Changchai Co. Ltd. Class B 507,900 194
* Huangshi Dongbei Electrical Appliance Co. Ltd. Class B 350,390 193
* Shenzhen SEG Co. Ltd. Class B 644,000 191
  Fiyta Holdings Ltd. Class B 248,720 189
* Jinan Qingqi Motorcycle Co. Class B 636,000 186
* Shijiazhuang Baoshi Electronic Glass Co. Ltd. Class B 274,200 186
  Evergreen International Holdings Ltd. 897,000 181
  Nanjing Panda Electronics Co. Ltd. 774,000 180
  Shanghai Potevio Co. Ltd. Class B 345,100 175
  Royale Furniture Holdings Ltd. 2,076,750 173
^,* Dynasty Fine Wines Group Ltd. 1,056,000 173
* Shirble Department Stores Holdings China Ltd. 1,836,000 171
  Embry Holdings Ltd. 346,000 165
* SIM Technology Group Ltd. 3,646,000 164
  Hefei Meiling Co. Ltd. Class B 404,064 161
^,* China Energine International Holdings Ltd. 3,956,000 160
* Tsann Kuen China Enterprise Co. Ltd. Class B 2,723,200 158
* Besunyen Holdings Co. Ltd. 2,038,000 157
* Richly Field China Development Ltd. 13,280,000 151
^ Xiwang Sugar Holdings Co. Ltd. 1,380,000 145
^,* Real Gold Mining Ltd. 1,345,000 145
* Luoyang Glass Co. Ltd. 716,000 144
* China Chengtong Development Group Ltd. 3,802,000 143
* Shanghai Automation Instrumentation Co. Ltd. Class B 296,100 142
  Wafangdian Bearing Co. Ltd. Class B 225,900 141
* Zhonglu Co. Ltd. Class B 209,800 139
  Anhui Tianda Oil Pipe Co. Ltd. 773,000 138
* Greattown Holdings Ltd. Class B 402,000 137
* Tianjin Marine Shipping Co. Ltd. Class B 497,100 135
* China Textile Machinery Class B 347,692 131
* Global Energy Resources International Group Ltd. 25,840,000 130
^ Trony Solar Holdings Co. Ltd. 1,562,000 127

 

22


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Shanghai Material Trading Co. Ltd. Class B 275,700 125
  Dalian Refrigeration Co. Ltd. Class B 212,500 119
* Global Sweeteners Holdings Ltd. 1,690,000 117
^,* China Kingstone Mining Holdings Ltd. 3,279,000 116
      3,190,656
Colombia (0.1%)    
  Ecopetrol SA ADR 406,524 24,070
  Bancolombia SA ADR 353,934 22,659
  Almacenes Exito SA 280,646 5,350
  Ecopetrol SA 1,757,820 5,230
  Interconexion Electrica SA ESP 949,714 5,143
  Grupo Aval Acciones y Valores Prior Pfd. 6,055,439 4,281
  Grupo de Inversiones Suramericana SA Prior Pfd. 206,800 4,256
  Grupo de Inversiones Suramericana SA 174,860 3,414
  Isagen SA ESP 1,460,646 2,049
* Fabricato SA 19,253,146 957
  Grupo Argos SA Prior Pfd. 76,772 855
  Cementos Argos SA 135,002 646
  Corp Financiera Colombiana SA 31,548 599
  Grupo Argos SA 50,291 575
      80,084
Czech Republic (0.1%)    
  CEZ AS 698,873 25,826
  Komercni Banka AS 65,539 13,411
  Telefonica Czech Republic AS 484,114 9,642
* Unipetrol AS 317,362 2,755
  Philip Morris CR AS 2,752 1,478
  Pegas Nonwovens SA 41,670 954
^,* Central European Media Enterprises Ltd. Class A 158,000 897
  Fortuna Entertainment Group NV 84,483 375
      55,338
Denmark (0.8%)    
  Novo Nordisk A/S Class B 1,771,488 283,997
* Danske Bank A/S 2,829,869 44,270
  Carlsberg A/S Class B 464,847 40,125
  AP Moeller - Maersk A/S Class B 5,735 40,028
  Novozymes A/S 1,057,880 29,228
  Coloplast A/S Class B 99,157 21,750
  DSV A/S 822,084 18,492
  AP Moeller - Maersk A/S Class A 2,387 15,816
  TDC A/S 2,144,370 14,785
  FLSmidth & Co. A/S 231,451 13,659
  GN Store Nord A/S 868,141 13,606
  Chr Hansen Holding A/S 389,397 12,185
* Topdanmark A/S 49,038 9,945
* William Demant Holding A/S 113,906 9,796
* Jyske Bank A/S 289,004 8,797
  Tryg A/S 104,466 6,821
* Sydbank A/S 304,234 5,573
^,* Vestas Wind Systems A/S 886,298 5,124
  SimCorp A/S 18,882 4,120
^ Pandora A/S 245,764 3,902
^ NKT Holding A/S 103,232 3,460
  Royal UNIBREW A/S 42,364 3,372
  Rockwool International A/S Class B 35,446 3,337
^ D/S Norden A/S 103,025 2,717
* Genmab A/S 158,970 2,214
  United International Enterprises 12,288 2,096
* Bang & Olufsen A/S 147,312 1,817
  ALK-Abello A/S 25,718 1,711
  Solar A/S Class B 24,625 1,526
  Schouw & Co. 62,032 1,418
* Auriga Industries Class B 63,807 948

 

23


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  East Asiatic Co. Ltd. A/S 47,088 909
* Bavarian Nordic A/S 97,774 892
* Alm Brand A/S 309,697 772
  Dfds A/S 15,092 732
  IC Companys A/S 26,082 457
* Greentech Energy Systems AS 106,905 215
* Amagerbanken A/S 537,565
      630,612
Egypt (0.0%)    
* Orascom Construction Industries GDR 309,094 12,642
* Orascom Telecom Holding SAE GDR 1,766,123 5,311
  Commercial International Bank Egypt SAE 253,786 1,572
* Talaat Moustafa Group 1,864,744 1,488
* Egyptian Financial Group-Hermes Holding 598,798 1,149
  Telecom Egypt Co. 431,535 981
  National Societe Generale Bank SAE 102,848 780
  Orascom Telecom Media And Technology Holding SAE GDR 1,591,123 762
  Egyptian Kuwaiti Holding Co. SAE 367,852 464
      25,149
Exchange-Traded Fund (0.2%)    
3 Vanguard MSCI Emerging Markets ETF 2,800,000 116,172
 
Finland (0.6%)    
  Sampo Oyj 1,819,724 57,055
^ Kone Oyj Class B 676,360 48,502
^ Nokia Oyj 16,283,466 43,778
  Fortum Oyj 1,926,554 35,657
  Wartsila OYJ Abp 729,884 29,559
  UPM-Kymmene Oyj 2,282,559 24,507
  Nokian Renkaat Oyj 486,717 20,270
  Metso Oyj 554,016 19,484
  Stora Enso Oyj 2,416,753 15,288
  Elisa Oyj 617,192 13,244
  Orion Oyj Class B 417,828 10,339
  Outotec Oyj 192,201 9,391
  YIT Oyj 472,501 9,317
  Kesko Oyj Class B 281,539 8,804
  Pohjola Bank plc Class A 606,272 8,270
  Neste Oil Oyj 563,252 7,054
  Amer Sports Oyj 485,639 6,882
^ Konecranes Oyj 211,479 6,725
  Huhtamaki Oyj 365,813 6,185
  Kemira Oyj 441,266 5,871
  Tieto Oyj 262,065 5,030
  Sponda Oyj 1,039,164 4,609
^ Sanoma Oyj 360,978 3,510
^ Cargotec Oyj Class B 154,356 3,404
^,* Outokumpu Oyj 3,977,793 3,380
  Tikkurila Oyj 165,258 3,132
  Citycon Oyj 909,278 2,978
  Uponor Oyj 244,324 2,757
^ Stockmann OYJ Abp Class B 137,293 2,583
* Metsa Board Oyj 843,972 2,533
^ Rautaruukki Oyj 370,863 2,352
  Vacon plc 41,794 2,145
  Ramirent Oyj 281,368 2,106
^,* Talvivaara Mining Co. plc 761,267 1,599
  Technopolis Oyj 281,923 1,283
  Oriola-KD Oyj 424,624 1,150
  PKC Group Oyj 63,290 1,149
  Cramo Oyj 112,957 1,149
^ F-Secure Oyj 337,811 711
* Biotie Therapies Oyj 1,368,280 689
  Poyry Oyj 161,314 670

 

24


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
HKScan Oyj 114,877 503
Ponsse Oy 37,284 297
Atria plc Class A 42,185 283
    436,184
France (5.9%)    
Total SA 9,253,629 466,111
Sanofi 5,171,210 454,178
BNP Paribas SA 4,202,720 212,008
LVMH Moet Hennessy Louis Vuitton SA 1,105,166 179,680
Air Liquide SA 1,358,755 160,405
Danone SA 2,518,724 154,921
Schneider Electric SA 2,269,418 142,100
L'Oreal SA 1,048,346 133,610
GDF Suez 5,573,382 127,923
AXA SA 7,690,260 122,574
Vivendi SA 5,606,133 114,878
Pernod-Ricard SA 920,285 99,113
* Societe Generale SA 3,036,864 96,853
France Telecom SA 8,057,559 90,064
Unibail-Rodamco SE 398,949 89,858
Vinci SA 2,001,150 88,704
Cie Generale d'Optique Essilor International SA 875,195 78,920
Cie Generale des Etablissements Michelin 782,807 67,482
European Aeronautic Defence and Space Co. NV 1,791,133 63,747
Carrefour SA 2,509,912 60,616
Cie de St-Gobain 1,717,132 60,487
ArcelorMittal 4,070,189 60,176
PPR 328,808 57,965
Technip SA 434,979 49,062
Lafarge SA 812,149 47,616
Publicis Groupe SA 770,505 41,529
Safran SA 997,522 39,735
Legrand SA 1,029,279 39,709
Renault SA 837,533 37,554
SES SA 1,321,915 36,591
Christian Dior SA 237,436 34,112
* Credit Agricole SA 4,354,619 32,870
Sodexo 410,337 31,611
Gemalto NV 343,975 31,068
Alstom SA 895,124 30,598
Dassault Systemes SA 268,364 28,314
Cap Gemini SA 644,607 27,118
Bureau Veritas SA 239,407 25,427
Arkema SA 270,593 24,692
* Cie Generale de Geophysique - Veritas 693,133 22,565
Electricite de France SA 1,042,852 22,068
Edenred 735,869 21,296
Casino Guichard Perrachon SA 240,301 20,976
Accor SA 643,117 20,096
Bouygues SA 821,998 19,757
SCOR SE 708,502 18,918
Groupe Eurotunnel SA 2,427,884 18,490
Eutelsat Communications SA 576,984 18,476
Vallourec SA 447,656 18,415
STMicroelectronics NV 2,773,912 16,338
Klepierre 434,527 16,118
AtoS 236,621 15,887
Iliad SA 99,135 15,276
Societe BIC SA 124,229 15,159
Zodiac Aerospace 147,581 15,132
Veolia Environnement SA 1,468,808 14,539
Lagardere SCA 515,825 14,123
Thales SA 396,466 13,956
Valeo SA 312,538 13,762

 

25


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Natixis 4,043,466 13,271
  Suez Environnement Co. 1,227,010 13,026
  Wendel SA 142,738 12,584
  Gecina SA 96,047 10,654
^,* Alcatel-Lucent 10,187,015 10,416
  Aeroports de Paris 130,010 10,062
  Remy Cointreau SA 96,721 10,028
  CNP Assurances 651,484 9,206
  ICADE 101,428 9,129
  Fonciere Des Regions 112,642 9,066
  Rexel SA 464,085 8,406
  Ingenico 157,999 8,366
  Imerys SA 147,359 8,290
  Neopost SA 144,598 7,928
  CFAO SA 160,849 7,765
  Rubis SCA 126,819 7,738
  Teleperformance SA 234,201 7,092
^,* Peugeot SA 1,011,978 6,491
  SEB SA 99,093 6,452
  Eurazeo 135,801 6,225
  JCDecaux SA 293,548 6,214
  IPSOS 156,295 5,495
  Eurofins Scientific 34,354 5,318
  Etablissements Maurel et Prom 374,649 5,222
  Eiffage SA 149,660 5,150
  Societe Immobiliere de Location pour l'Industrie et le Commerce 45,269 5,070
^,* Air France-KLM 580,784 4,855
  Bourbon SA 176,960 4,778
  Orpea 116,391 4,759
^ Havas SA 915,264 4,632
  Societe Television Francaise 1 498,635 4,285
  Euler Hermes SA 58,930 4,067
  Nexans SA 92,027 3,919
  SA des Ciments Vicat 68,217 3,677
  Nexity SA 114,860 3,541
  Metropole Television SA 249,439 3,480
* UBISOFT Entertainment 368,612 3,430
  Ipsen SA 131,210 3,390
  Virbac SA 19,209 3,346
^ Faurecia 218,289 3,287
* Technicolor SA 1,231,257 3,128
* Altran Technologies SA 443,527 2,988
  Plastic Omnium SA 106,251 2,938
  APERAM 202,046 2,930
  Rallye SA 92,990 2,837
  Alten SA 89,108 2,804
^ Vilmorin & Cie 22,123 2,629
  Medica SA 144,286 2,580
  Mercialys SA 118,505 2,486
  Saft Groupe SA 104,253 2,319
^,* GameLoft SA 312,125 2,140
  Ciments Francais SA 29,627 1,802
  Mersen 70,873 1,794
  Groupe Steria SCA 103,021 1,665
  Sartorius Stedim Biotech 18,163 1,644
* Club Mediterranee 99,618 1,584
^ Naturex 21,966 1,537
  Faiveley Transport SA 27,549 1,537
^,* AB Science SA 64,288 1,498
^ Bonduelle S.C.A. 16,134 1,485
  ANF Immobilier 33,918 1,463
^ Beneteau SA 145,455 1,454
  Societe d'Edition de Canal & 237,492 1,426
  Sechilienne-Sidec 75,817 1,300

 

26


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^,* SOITEC 432,284 1,300
  Societe de la Tour Eiffel 22,947 1,267
  April 67,357 1,191
^ Fimalac 26,619 1,187
  Altamir Amboise 129,181 1,159
  Credit Agricole Nord de France 75,687 1,149
  ABC Arbitrage 141,866 1,140
* Parrot SA 30,156 1,046
^,* Carmat 6,896 1,037
* Maurel & Prom Nigeria SA 392,808 988
  Derichebourg SA 348,658 986
  LISI 14,639 972
  Assystem 51,991 965
  Sopra Group SA 19,784 934
  Stallergenes SA 16,011 930
^,* PagesJaunes Groupe 510,002 928
^,* Bull 315,834 922
  FFP 25,404 901
  Esso SA Francaise 11,880 850
  GL Events 35,298 778
  Boiron SA 24,192 775
  Manitou BF SA 47,532 738
^,* Artprice.com 17,605 728
^,* Transgene SA 66,628 705
^ Interparfums SA 25,757 681
  NRJ Group 95,684 644
^,* Euro Disney SCA 95,938 643
* Boursorama 104,347 626
  Akka Technologies SA 21,689 613
  Cie des Alpes 30,964 553
  GFI Informatique SA 146,736 535
  Tessi SA 5,083 474
  Jacquet Metal Service 46,816 456
  Seche Environnement SA 13,531 443
  Maisons France Confort 14,626 437
^,* Archos 102,407 414
  Trigano SA 36,867 400
^,* Sequana SA 235,272 365
  Cegid Group 18,060 349
  Devoteam SA 29,403 339
  Societe Internationale de Plantations d'Heveas SA 4,348 338
  Pierre & Vacances SA 18,664 315
  Axway Software SA 16,191 253
* Haulotte Group SA 40,761 252
^,* Mauna Kea Technologies 16,109 230
* ST Dupont SA 515,374 221
  Vranken-Pommery Monopole SA 5,904 187
* Spir Communication 6,326 121
* UBISOFT Entertainment Warrants Exp. 10/10/2013 329,753 34
      4,444,903
Germany (5.6%)    
  Siemens AG 3,578,905 360,609
  BASF SE 3,995,158 331,403
  Bayer AG 3,597,021 313,638
  SAP AG 4,006,397 292,161
  Allianz SE 1,980,444 246,023
  Daimler AG 3,933,904 184,285
  Deutsche Bank AG 4,043,757 184,199
  E.ON AG 7,834,581 178,356
  Deutsche Telekom AG 12,224,747 139,467
  Linde AG 805,140 135,492
  Volkswagen AG Prior Pfd. 628,886 130,574
  Muenchener Rueckversicherungs AG 779,641 125,448
  Bayerische Motoren Werke AG 1,438,793 115,027

 

27


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
RWE AG 2,126,630 97,325
Adidas AG 909,155 77,494
Deutsche Post AG 3,677,669 72,914
Fresenius Medical Care AG & Co. KGaA 913,941 64,218
Henkel AG & Co. KGaA Prior Pfd. 775,323 61,993
Fresenius SE & Co. KGaA 539,079 61,470
Deutsche Boerse AG 839,220 45,474
Porsche Automobil Holding SE Prior Pfd. 666,945 44,455
ThyssenKrupp AG 1,673,612 38,138
Henkel AG & Co. KGaA 563,474 36,485
Merck KGaA 280,949 35,935
K&S AG 750,179 35,555
Continental AG 347,169 34,943
HeidelbergCement AG 610,956 32,468
Infineon Technologies AG 4,723,135 32,176
Beiersdorf AG 437,433 31,823
* Commerzbank AG 15,789,287 30,333
Lanxess AG 360,882 29,855
Brenntag AG 223,479 28,199
Kabel Deutschland Holding AG 385,324 27,803
Volkswagen AG 128,100 25,051
GEA Group AG 762,023 23,842
Bilfinger SE 190,390 18,657
MAN SE 184,487 18,644
Hannover Rueckversicherung AG 262,975 18,528
MTU Aero Engines Holding AG 214,610 18,041
* QIAGEN NV 1,018,724 17,747
Symrise AG 488,222 17,562
Metro AG 566,415 16,329
Deutsche Lufthansa AG 991,579 15,170
Bayerische Motoren Werke AG Prior Pfd. 227,632 12,610
Software AG 282,922 11,362
Suedzucker AG 286,391 11,102
Deutsche Wohnen AG 602,626 11,037
Fuchs Petrolub AG Prior Pfd. 153,498 10,853
Hugo Boss AG 107,872 10,827
Wirecard AG 465,920 10,671
ProSiebenSat.1 Media AG Prior Pfd. 381,392 10,635
Fraport AG Frankfurt Airport Services Worldwide 160,567 9,423
Aurubis AG 147,079 9,311
GSW Immobilien AG 208,103 8,554
United Internet AG 425,087 8,507
Rheinmetall AG 171,357 8,190
Deutsche Euroshop AG 192,541 7,869
Stada Arzneimittel AG 254,473 7,707
Axel Springer AG 172,779 7,414
* Sky Deutschland AG 1,675,617 7,303
Salzgitter AG 168,854 7,302
Celesio AG 371,194 7,196
RWE AG Prior Pfd. 167,229 6,930
^ Freenet AG 412,114 6,821
Gerresheimer AG 136,181 6,759
* Hochtief AG 135,571 6,734
^ SGL Carbon SE 155,067 6,185
Wincor Nixdorf AG 131,488 5,864
* TUI AG 604,327 5,671
^ Aixtron SE NA 420,835 5,520
* Dialog Semiconductor plc 263,483 5,247
Fuchs Petrolub AG 77,758 4,846
Leoni AG 141,447 4,726
TAG Immobilien AG 401,606 4,642
Douglas Holding AG 94,865 4,631
Gerry Weber International AG 100,664 4,578
* GAGFAH SA 400,518 4,558

 

28


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Aareal Bank AG 208,006 4,473
  Pfeiffer Vacuum Technology AG 42,884 4,384
* Kloeckner & Co. SE 441,981 4,007
  Gildemeister AG 212,943 3,952
  Carl Zeiss Meditec AG 143,427 3,937
  ElringKlinger AG 140,839 3,926
^ Wacker Chemie AG 68,311 3,862
  Rational AG 14,884 3,768
  Duerr AG 49,280 3,697
  Vossloh AG 34,811 3,511
* KUKA AG 113,013 3,393
  GFK SE 72,904 3,321
  Sartorius AG Prior Pfd. 39,439 3,297
  Alstria Office REIT-AG 272,925 3,295
  Krones AG 53,278 3,143
* Morphosys AG 89,829 3,054
  CTS Eventim AG 96,640 2,869
  KWS Saat AG 9,705 2,788
  Hamburger Hafen und Logistik AG 109,223 2,656
  BayWa AG 58,492 2,651
^ Draegerwerk AG & Co. KGaA Prior Pfd. 26,858 2,631
  NORMA Group AG 92,546 2,559
  Indus Holding AG 95,357 2,401
  Jungheinrich AG Prior Pfd. 71,728 2,375
  Drillisch AG 191,829 2,364
  Bechtle AG 61,514 2,321
  Bertrandt AG 21,319 1,784
^,* IVG Immobilien AG 628,560 1,565
  Hamborner REIT AG 169,733 1,561
  Sto AG Prior Pfd. 10,956 1,543
  Jenoptik AG 162,024 1,535
* Deutz AG 347,682 1,525
  Comdirect Bank AG 147,507 1,450
  Tom Tailor Holding AG 65,972 1,407
  Wacker Neuson SE 101,896 1,389
^,* Heidelberger Druckmaschinen AG 908,614 1,364
  Biotest AG Prior Pfd. 23,127 1,350
* Evotec AG 372,738 1,337
  MLP AG 204,442 1,315
  Aurelius AG 24,799 1,266
  Sixt AG Prior Pfd. 81,134 1,243
  Delticom AG 21,810 1,223
  STRATEC Biomedical AG 28,596 1,205
* SAF-Holland SA 181,434 1,180
  Gesco AG 13,626 1,153
  Balda AG 171,382 1,126
  Sixt AG 59,549 1,108
  Deutsche Beteiligungs AG 43,625 1,102
  QSC AG 385,221 1,051
  Takkt AG 81,611 1,048
* Patrizia Immobilien AG 137,458 971
  Draegerwerk AG & Co. KGaA 12,019 969
* Tipp24 SE 19,550 964
  Kontron AG 203,080 955
  Cewe Color Holding AG 21,575 951
  XING AG 16,477 937
  DIC Asset AG 99,500 929
  Grammer AG 47,298 922
  KHD Humboldt Wedag International AG 150,157 906
  H&R AG 54,201 893
  Nemetschek AG 19,484 868
* ADVA Optical Networking SE 152,189 856
^,* Suss Microtec AG 90,103 850
^,* Nordex SE 240,940 843

 

29


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Bauer AG 37,719 817
  VTG AG 51,955 816
  PSI AG Gesellschaft Fuer Produkte und Systeme der Informationstechnologie 42,027 803
  CENTROTEC Sustainable AG 42,797 773
* Borussia Dortmund GmbH & Co. KGaA 200,912 668
* Stroer Out-of-Home Media AG 73,145 645
  Prime Office REIT-AG 153,911 639
  CropEnergies AG 92,688 563
^ Solarworld AG 320,710 555
  CAT Oil AG 67,656 489
  Elmos Semiconductor AG 51,104 443
* zooplus AG 10,009 434
  Daimler AG 9,125 428
  R Stahl AG 12,200 422
  KSB AG 728 388
  OHB AG 19,520 382
^,* Air Berlin plc 186,592 370
* Constantin Medien AG 193,724 361
  Muehlbauer Holding AG & Co. KGaA 13,933 354
* Homag Group AG 26,658 344
  DAB Bank AG 73,000 320
  Asian Bamboo AG 31,667 243
* Colonia Real Estate AG 40,511 207
* Verbio AG 54,229 116
      4,247,753
Greece (0.1%)    
  Coca Cola Hellenic Bottling Co. SA 871,493 18,665
* National Bank of Greece SA 3,955,488 9,267
  OPAP SA 960,460 6,139
* Alpha Bank AE 2,249,509 5,274
* Titan Cement Co. SA 236,190 4,401
* Bank of Cyprus plc 7,088,788 2,999
* Public Power Corp. SA 514,780 2,956
* Piraeus Bank SA 5,038,117 2,719
  JUMBO SA 409,223 2,709
^,* Hellenic Telecommunications Organization SA ADR 1,114,196 2,524
  Hellenic Petroleum SA 316,243 2,479
* Hellenic Telecommunications Organization SA 523,594 2,309
* Folli Follie Group 148,572 2,029
  Motor Oil Hellas Corinth Refineries SA 229,313 1,998
* Mytilineos Holdings SA 413,344 1,877
* Eurobank Ergasias SA 1,512,769 1,763
* Viohalco Hellenic Copper and Aluminum Industry SA 374,495 1,604
  Hellenic Exchanges SA 298,361 1,333
* Marfin Investment Group Holdings SA 2,952,029 1,315
* Ellaktor SA 536,378 1,049
  Metka SA 101,341 922
  Intralot SA-Integrated Lottery Systems & Services 402,452 810
* Frigoglass SA 117,202 680
* National Bank of Greece SA ADR 202,529 480
  Eurobank Properties Real Estate Investment Co. 50,776 315
  Terna Energy SA 99,227 296
      78,912
Hong Kong (2.1%)    
  AIA Group Ltd. 44,536,585 175,629
  Sun Hung Kai Properties Ltd. 6,823,039 94,321
  Hutchison Whampoa Ltd. 9,263,075 90,745
  Cheung Kong Holdings Ltd. 6,039,960 89,026
  Hong Kong Exchanges and Clearing Ltd. 4,462,250 73,237
  CLP Holdings Ltd. 7,857,843 66,952
  Hong Kong & China Gas Co. Ltd. 22,689,615 60,232
  Power Assets Holdings Ltd. 6,021,320 51,166
  Hang Seng Bank Ltd. 3,320,350 50,890
  BOC Hong Kong Holdings Ltd. 16,076,539 49,292

 

30


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Link REIT 9,851,214 48,954
  Wharf Holdings Ltd. 6,582,270 44,880
  Li & Fung Ltd. 25,404,479 42,379
  Sands China Ltd. 10,516,721 39,313
  Swire Pacific Ltd. Class A 2,954,108 34,941
  Hang Lung Properties Ltd. 9,714,915 33,639
  Henderson Land Development Co. Ltd. 4,113,940 28,371
  New World Development Co. Ltd. 16,104,674 24,778
  MTR Corp. Ltd. 6,299,424 24,572
  Sino Land Co. Ltd. 12,836,066 22,900
  Hang Lung Group Ltd. 3,806,695 22,500
  Bank of East Asia Ltd. 5,923,944 21,885
^,* Galaxy Entertainment Group Ltd. 6,347,663 21,682
  Wynn Macau Ltd. 6,747,009 19,007
  SJM Holdings Ltd. 8,394,219 18,192
  Wheelock & Co. Ltd. 3,985,464 17,384
  Kerry Properties Ltd. 3,144,592 15,590
  Shangri-La Asia Ltd. 6,767,676 13,065
  Cheung Kong Infrastructure Holdings Ltd. 2,138,311 12,528
  Hysan Development Co. Ltd. 2,753,802 12,148
  Yue Yuen Industrial Holdings Ltd. 3,230,442 11,119
  Techtronic Industries Co. 5,489,500 10,405
  AAC Technologies Holdings Inc. 2,920,500 10,398
  First Pacific Co. Ltd. 9,162,574 10,187
  Television Broadcasts Ltd. 1,326,000 9,864
^ ASM Pacific Technology Ltd. 864,584 9,618
  Cathay Pacific Airways Ltd. 5,151,514 9,304
  NWS Holdings Ltd. 6,161,292 9,286
  Hopewell Holdings Ltd. 2,472,637 8,889
^ VTech Holdings Ltd. 697,200 8,259
  Wing Hang Bank Ltd. 773,880 8,192
^ Esprit Holdings Ltd. 5,637,669 7,290
  PCCW Ltd. 17,304,452 6,971
  Orient Overseas International Ltd. 952,103 5,995
  Stella International Holdings Ltd. 2,074,500 5,451
  Giordano International Ltd. 6,308,000 5,229
  Lifestyle International Holdings Ltd. 2,406,601 5,130
  Champion REIT 10,244,000 4,804
  Cafe de Coral Holdings Ltd. 1,462,000 4,324
  Johnson Electric Holdings Ltd. 6,620,000 4,242
^ Xinyi Glass Holdings Ltd. 7,488,000 4,181
^ Pacific Basin Shipping Ltd. 6,899,000 3,682
  Melco International Development Ltd. 3,746,000 3,611
  Great Eagle Holdings Ltd. 1,209,000 3,576
^ Luk Fook Holdings International Ltd. 1,426,000 3,562
* G-Resources Group Ltd. 69,891,971 3,324
^,* Foxconn International Holdings Ltd. 9,234,714 3,204
  SmarTone Telecommunications Holdings Ltd. 1,581,000 3,186
  Vitasoy International Holdings Ltd. 3,332,000 3,160
  Trinity Ltd. 4,216,000 2,941
  SA SA International Holdings Ltd. 4,220,000 2,889
  Chow Sang Sang Holdings International Ltd. 1,313,000 2,788
  Shun Tak Holdings Ltd. 6,570,500 2,610
  Hutchison Telecommunications Hong Kong Holdings Ltd. 6,090,000 2,526
  Dah Sing Financial Holdings Ltd. 576,000 2,206
^ Brightoil Petroleum Holdings Ltd. 10,776,000 2,161
  Texwinca Holdings Ltd. 2,712,000 2,153
^ K Wah International Holdings Ltd. 4,458,000 2,017
  Sunlight REIT 4,325,000 1,766
^ Value Partners Group Ltd. 3,141,000 1,705
  Kowloon Development Co. Ltd. 1,422,000 1,632
  Dah Sing Banking Group Ltd. 1,579,600 1,574
  Midland Holdings Ltd. 3,096,000 1,557
^,* United Laboratories International Holdings Ltd. 2,864,500 1,524

 

31


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  HKR International Ltd. 3,178,400 1,520
  Pacific Textile Holdings Ltd. 2,267,000 1,498
  Singamas Container Holdings Ltd. 5,580,000 1,403
  Prosperity REIT 4,909,000 1,403
^ Emperor Watch & Jewellery Ltd. 14,190,000 1,346
  Newocean Energy Holdings Ltd. 3,378,000 1,297
  SITC International Holdings Co. Ltd. 4,820,949 1,277
* CST Mining Group Ltd. 84,744,000 1,198
^ SOCAM Development Ltd. 1,072,353 1,111
  Regal REIT 4,076,000 1,109
  Emperor International Holdings 4,363,333 1,043
  CK Life Sciences International Holdings Inc. 13,046,000 1,025
  Citic Telecom International Holdings Ltd. 4,437,000 1,023
^ Man Wah Holdings Ltd. 1,598,000 980
* Sinopoly Battery Ltd. 22,340,000 935
  Regal Hotels International Holdings Ltd. 2,122,000 932
* Lai Sun Development 34,937,833 859
  Pico Far East Holdings Ltd. 3,388,000 830
^,* China Financial International Investments Ltd. 14,690,000 805
^,* China Resources and Transportation Group Ltd. 22,100,000 796
* Mongolia Energy Corp. Ltd. 16,502,000 784
* Pearl Oriental Oil Ltd. 8,941,000 771
* Esprit Holdings Ltd. Rights Expire 11/19/2012 2,818,834 757
^ IT Ltd. 1,884,000 746
^ Silver base Group Holdings Ltd. 1,690,225 717
  YGM Trading Ltd. 298,000 715
  Polytec Asset Holdings Ltd. 6,060,000 708
  Truly International Holdings 4,666,000 708
  Soundwill Holdings Ltd. 373,746 678
  CSI Properties Ltd. 16,061,585 653
  Dorsett Hospitality International Ltd. 2,966,645 653
  Bonjour Holdings Ltd. 5,062,000 651
^,* China Daye Non-Ferrous Metals Mining Ltd. 15,462,000 628
  SUNeVision Holdings Ltd. 2,836,000 628
  Oriental Watch Holdings 1,980,000 590
  Sateri Holdings Ltd. 2,628,000 581
* IRC Ltd. 4,764,000 580
  EVA Precision Industrial Holdings Ltd. 5,452,000 574
  Hongkong Chinese Ltd. 3,394,000 569
  Glorious Sun Enterprises Ltd. 2,050,000 565
* Ming Fung Jewellery Group Ltd. 12,115,115 553
* Sitoy Group Holdings Ltd. 950,000 549
* Neo-Neon Holdings Ltd. 2,479,000 535
  Get Nice Holdings Ltd. 12,486,000 522
  Paliburg Holdings Ltd. 1,648,000 520
^ Goodbaby International Holdings Ltd. 1,543,000 511
  Guotai Junan International Holdings Ltd. 1,728,000 509
  Samson Holding Ltd. 3,561,000 509
* Honbridge Holdings Ltd. 7,068,000 500
  Century City International Holdings Ltd. 7,540,000 495
  Lee & Man Chemical Co. Ltd. 904,000 474
* Fook Woo Group Holdings Ltd. 2,620,000 463
  Dickson Concepts International Ltd. 857,500 442
* Apac Resources Ltd. 12,900,000 440
^ Victory City International Holdings Ltd. 3,798,000 406
  Pacific Andes International Holdings Ltd. 7,191,000 403
* Newton Resources Ltd. 3,254,000 385
* eSun Holdings Ltd. 2,622,000 384
  VST Holdings Ltd. 2,108,000 369
  City Telecom HK Ltd. 1,595,000 366
^ Cecep Costin New Materials Grp Ltd. 959,000 365
* Titan Petrochemicals Group Ltd. 10,180,000 323
  Richfield Group Holdings Ltd. 6,624,000 315
  China WindPower Group Ltd. 11,330,000 301

 

32


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Imagi International Holdings Ltd. 19,120,000 273
Haitong International Securities Group Ltd. 782,000 270
* Sino-Tech International Holdings Ltd. 28,420,000 257
Oriental Press Group 1,878,000 218
Shenyin Wanguo HK Ltd. 790,000 213
Chen Hsong Holdings 720,000 195
* Sun Innovation Holdings Ltd. 10,730,000 110
* Ruifeng Petroleum Chemical Holdings Ltd. 6,516,000 59
    1,586,570
Hungary (0.1%)    
OTP Bank plc 988,645 18,841
MOL Hungarian Oil and Gas plc 181,015 15,746
Richter Gedeon Nyrt 61,147 11,385
Magyar Telekom Telecommunications plc 1,986,521 3,686
EGIS Pharmaceuticals plc 17,331 1,395
    51,053
India (1.6%)    
Reliance Industries Ltd. 5,692,258 84,935
Housing Development Finance Corp. 5,754,765 81,240
Infosys Ltd. 1,853,992 81,168
HDFC Bank Ltd. 5,123,033 60,166
ITC Ltd. 9,531,865 49,964
Tata Consultancy Services Ltd. 2,044,048 49,897
Hindustan Unilever Ltd. 3,804,467 38,577
Tata Motors Ltd. 6,425,335 30,560
Larsen & Toubro Ltd. 907,085 27,316
ICICI Bank Ltd. 1,357,299 26,415
Mahindra & Mahindra Ltd. 1,332,491 21,811
Axis Bank Ltd. 986,892 21,570
State Bank of India 497,235 19,413
HDFC Bank Ltd. ADR 501,774 18,761
Sun Pharmaceutical Industries Ltd. 1,346,890 17,349
Oil & Natural Gas Corp. Ltd. 3,353,580 16,702
Coal India Ltd. 2,188,208 14,054
IDFC Ltd. 4,623,626 13,863
Kotak Mahindra Bank Ltd. 1,184,088 13,245
Bharti Airtel Ltd. 2,477,072 12,382
Bajaj Auto Ltd. 363,203 12,237
Jindal Steel & Power Ltd. 1,617,839 11,626
Ultratech Cement Ltd. 309,612 11,461
GAIL India Ltd. 1,662,983 10,753
Sterlite Industries India Ltd. 5,828,186 10,737
Bharat Heavy Electricals Ltd. 2,556,799 10,624
Wipro Ltd. 1,623,973 10,497
Power Grid Corp. of India Ltd. 4,825,937 10,203
Cipla Ltd. 1,499,164 10,115
Ambuja Cements Ltd. 2,644,663 9,925
Hindalco Industries Ltd. 4,594,185 9,892
ICICI Bank Ltd. ADR 250,590 9,836
Tata Steel Ltd. 1,294,733 9,396
Asian Paints Ltd. 124,588 8,950
Tata Power Co. Ltd. 4,270,098 8,384
United Spirits Ltd. 376,921 8,211
NTPC Ltd. 2,473,944 7,592
Dr Reddy's Laboratories Ltd. 231,640 7,546
Zee Entertainment Enterprises Ltd. 2,056,802 7,223
Dr Reddy's Laboratories Ltd. ADR 211,338 6,877
Godrej Consumer Products Ltd. 509,903 6,821
Lupin Ltd. 634,905 6,675
Jaiprakash Associates Ltd. 4,128,267 6,656
DLF Ltd. 1,747,281 6,550
* Cairn India Ltd. 1,006,424 6,279
Shriram Transport Finance Co. Ltd. 537,879 6,230
Hero Motocorp Ltd. 175,300 6,087

 

33


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
LIC Housing Finance Ltd. 1,288,544 5,814
* Satyam Computer Services Ltd. 2,825,380 5,727
ACC Ltd. 220,324 5,629
* Ranbaxy Laboratories Ltd. 552,441 5,387
JSW Steel Ltd. 369,982 5,064
Rural Electrification Corp. Ltd. 1,265,540 5,042
Federal Bank Ltd. 528,997 4,760
Sesa Goa Ltd. 1,483,710 4,696
Bharat Petroleum Corp. Ltd. 738,876 4,625
Bank of Baroda 338,915 4,555
* Idea Cellular Ltd. 2,815,329 4,470
Titan Industries Ltd. 909,962 4,371
Apollo Hospitals Enterprise Ltd. 293,969 4,253
Dabur India Ltd. 1,807,070 4,170
Adani Ports and Special Economic Zone 1,757,731 4,142
HCL Technologies Ltd. 363,965 4,102
* Reliance Power Ltd. 2,382,452 4,078
Maruti Suzuki India Ltd. 152,775 4,068
Reliance Infrastructure Ltd. 456,577 3,963
Wipro Ltd. ADR 511,793 3,951
Power Finance Corp. Ltd. 1,143,846 3,924
Adani Enterprises Ltd. 972,605 3,881
Siemens Ltd. 298,917 3,807
State Bank of India GDR 42,447 3,507
Indiabulls Financial Services Ltd. 750,062 3,461
Mahindra & Mahindra Financial Services Ltd. 207,422 3,342
Tata Global Beverages Ltd. 1,178,555 3,280
Reliance Capital Ltd. 434,848 3,068
Canara Bank 389,110 2,892
Aditya Birla Nuvo Ltd. 166,019 2,798
* Wockhardt Ltd. 97,706 2,720
Piramal Enterprises Ltd. 290,908 2,685
* Jubilant Foodworks Ltd. 111,775 2,616
Bank of India 500,201 2,561
* Unitech Ltd. 5,830,701 2,490
* MAX India Ltd. 530,489 2,382
Reliance Communications Ltd. 2,277,290 2,276
United Phosphorus Ltd. 1,009,065 2,134
Bharat Forge Ltd. 405,546 2,041
Strides Arcolab Ltd. 122,494 2,031
Jammu & Kashmir Bank Ltd. 86,222 1,957
Godrej Industries Ltd. 344,484 1,927
* Housing Development & Infrastructure Ltd. 1,056,958 1,869
Ashok Leyland Ltd. 4,180,917 1,815
Hexaware Technologies Ltd. 872,758 1,810
Indian Hotels Co. Ltd. 1,472,464 1,720
* GMR Infrastructure Ltd. 4,394,013 1,631
Emami Ltd. 152,603 1,622
Financial Technologies India Ltd. 82,181 1,517
* Indiabulls Real Estate Ltd. 1,423,384 1,508
Karur Vysya Bank Ltd. 165,142 1,432
Aurobindo Pharma Ltd. 478,211 1,405
Havells India Ltd. 129,627 1,386
Great Eastern Shipping Co. Ltd. 286,023 1,362
Bajaj Finance Ltd. 56,676 1,355
India Cements Ltd. 765,131 1,354
Redington India Ltd. 884,828 1,330
Manappuram Finance Ltd. 1,909,801 1,309
Thermax Ltd. 116,766 1,267
Ipca Laboratories Ltd. 144,817 1,234
Gujarat Mineral Development Corp. Ltd. 307,542 1,204
CESC Ltd. 232,091 1,179
Eicher Motors Ltd. 27,250 1,175
McLeod Russel India Ltd. 207,548 1,168

 

34


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Gitanjali Gems Ltd. 156,143 1,162
Sobha Developers Ltd. 174,421 1,160
Bata India Ltd. 71,727 1,136
Tube Investments Of India 341,316 1,095
Jindal Saw Ltd. 513,324 1,085
EID Parry India Ltd. 249,013 1,078
Karnataka Bank Ltd. 428,195 1,074
Biocon Ltd. 217,593 1,072
Torrent Pharmaceuticals Ltd. 84,899 1,062
Britannia Industries Ltd. 117,355 1,055
Century Textiles & Industries Ltd. 146,811 1,052
Syndicate Bank 466,222 1,014
IFCI Ltd. 1,938,666 996
India Infoline Ltd. 780,845 994
* Pipavav Defence & Offshore Engineering Co. Ltd. 659,559 965
Indian Overseas Bank 727,562 964
Gujarat State Petronet Ltd. 685,028 958
Andhra Bank 497,059 953
Welspun Corp. Ltd. 532,644 953
Arvind Ltd. 602,508 910
Madras Cements Ltd. 239,443 905
Core Education & Technologies Ltd. 155,203 898
Corp Bank 120,598 892
Raymond Ltd. 124,727 883
Jain Irrigation Systems Ltd. 729,483 883
* Shree Renuka Sugars Ltd. 1,505,103 875
Sundaram Finance Ltd. 51,523 874
Voltas Ltd. 420,170 862
Prestige Estates Projects Ltd. 295,354 847
Bayer CropScience Ltd. 41,381 845
Berger Paints India Ltd. 324,244 845
UCO Bank 622,639 839
MRF Ltd. 4,438 838
* Suzlon Energy Ltd. 2,858,109 835
Infosys Ltd. ADR 18,955 823
NIIT Technologies Ltd. 148,323 809
Sintex Industries Ltd. 674,546 806
PTC India Ltd. 679,840 803
Maharashtra Seamless Ltd. 129,623 798
Indraprastha Gas Ltd. 166,125 793
Gujarat Gas Co. Ltd. 142,571 791
Rajesh Exports Ltd. 347,263 789
Shoppers Stop Ltd. 95,739 782
Apollo Tyres Ltd. 489,898 780
Supreme Industries Ltd. 139,613 757
Alstom T&D India Ltd. 194,127 736
* Fortis Healthcare Ltd. 387,211 731
Anant Raj Industries Ltd. 482,092 728
Phoenix Mills Ltd. 194,395 724
IRB Infrastructure Developers Ltd. 316,363 714
Dewan Housing Finance Corp. Ltd. 198,514 704
* Balrampur Chini Mills Ltd. 549,600 696
Amara Raja Batteries Ltd. 165,918 695
Page Industries Ltd. 10,897 678
* GVK Power & Infrastructure Ltd. 2,881,989 676
Gujarat State Fertilisers & Chemicals Ltd. 484,990 672
Gruh Finance Ltd. 187,200 668
Jyothy Laboratories Ltd. 202,343 666
Dena Bank 334,593 659
* IVRCL Ltd. 893,283 657
* Orissa Minerals Development Co. Ltd. 7,910 644
EIH Ltd. 456,712 641
Gateway Distriparks Ltd. 241,386 640
Rallis India Ltd. 241,853 635

 

35


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Hathway Cable & Datacom Ltd. 143,463 622
TTK Prestige Ltd. 10,454 621
MOIL Ltd. 136,772 621
Punj Lloyd Ltd. 660,498 616
SKF India Ltd. 51,271 616
* Lanco Infratech Ltd. 2,754,258 613
* Whirlpool of India Ltd. 129,089 598
Jagran Prakashan Ltd. 319,984 589
Ruchi Soya Industries Ltd. 473,661 584
* Sun Pharma Advanced Research Co. Ltd. 315,947 568
* Bombay Dyeing & Manufacturing Co. Ltd. 268,020 558
Lakshmi Machine Works Ltd. 14,624 558
CMC Ltd. 26,646 552
Amtek India Ltd. 312,170 548
Amtek Auto Ltd. 399,854 535
Edelweiss Financial Services Ltd. 836,633 528
IL&FS Transportation Networks Ltd. 150,174 511
* Hindustan Construction Co. Ltd. 1,625,559 511
Gujarat Fluorochemicals Ltd. 82,729 506
Cox & Kings Ltd. 198,210 504
Educomp Solutions Ltd. 183,662 501
Trent Ltd. 24,255 500
Radico Khaitan Ltd. 219,876 488
Triveni Turbine Ltd. 474,211 485
* Jet Airways India Ltd. 77,901 485
Bajaj Hindusthan Ltd. 880,127 483
Monnet Ispat & Energy Ltd. 88,328 482
Unichem Laboratories Ltd. 135,309 479
NCC Ltd. 593,283 477
Novartis India Ltd. 38,361 477
Prism Cement Ltd. 462,653 477
Alstom India Ltd. 62,479 473
Chambal Fertilizers & Chemicals Ltd. 372,084 462
State Bank of Bikaner & Jaipur 65,236 462
BASF India Ltd. 37,112 449
* Polaris Financial Technology Ltd. 202,268 449
* DEN Networks Ltd. 133,832 442
Persistent Systems Ltd. 48,394 430
Graphite India Ltd. 274,513 426
Sunteck Realty Ltd. 71,785 424
Blue Star Ltd. 111,368 410
* Development Credit Bank Ltd. 500,444 399
* SpiceJet Ltd. 634,162 394
KEC International Ltd. 326,315 384
Rolta India Ltd. 317,890 382
Aban Offshore Ltd. 46,797 382
* JSW ISPAT Steel Ltd. 2,061,900 379
REI Agro Ltd. 1,981,679 377
Alok Industries Ltd. 1,743,477 371
Tata Motors Ltd. ADR 15,100 365
Tata Investment Corp. Ltd. 43,330 358
Vijaya Bank 355,907 356
* ABG Shipyard Ltd. 51,203 356
* Himachal Futuristic Communications Ltd. 1,765,189 353
* Indiabulls Infrastructure and Power Ltd. 2,968,835 350
TVS Motor Co. Ltd. 488,005 349
Ballarpur Industries Ltd. 844,181 345
* Indiabulls Power Ltd. 1,476,922 327
SREI Infrastructure Finance Ltd. 654,035 325
Gujarat NRE Coke Ltd. 944,054 316
State Bank of Travancore 32,344 306
* Tata Teleservices Maharashtra Ltd. 1,488,444 299
Greaves Cotton Ltd. 205,630 295
Bajaj Electricals Ltd. 78,492 291

 

36


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Cholamandalam Investment and Finance Co. Ltd. 68,772 283
Rain Commodities Ltd. 383,385 276
HCL Infosystems Ltd. 341,748 269
Clariant Chemicals India Ltd. 19,759 240
BEML Ltd. 44,623 239
Ingersoll-Rand India Ltd. 24,626 221
* Mahanagar Telephone Nigam 448,634 219
VIP Industries Ltd. 140,975 215
* Uttam Galva Steels Ltd. 186,236 213
Orient Paper & Industries Ltd. 146,364 210
FDC Ltd. 129,761 207
* Parsvnath Developers Ltd. 304,956 206
Vardhman Textiles Ltd. 43,714 199
Orchid Chemicals & Pharmaceuticals Ltd. 99,237 192
* Eros International Media Ltd. 63,367 191
Navneet Publications India Ltd. 177,002 191
Elgi Equipments Ltd. 112,520 190
Zydus Wellness Ltd. 22,259 181
Delta Corp. Ltd. 147,588 179
* Usha Martin Ltd. 332,841 178
SRF Ltd. 42,666 176
Kalpataru Power Transmission Ltd. 107,694 176
Texmaco Rail & Engineering Ltd. 151,224 172
Escorts Ltd. 139,878 171
* BF Utilities Ltd. 24,986 168
Arshiya International Ltd. 71,369 168
Gujarat Narmada Valley Fertilizers Co. Ltd. 109,481 165
Punjab & Sind Bank 135,939 163
* Hindustan Oil Exploration Co. Ltd. 86,584 162
Deepak Fertilizers & Petrochemicals Corp. Ltd. 65,290 159
ICRA Ltd. 5,952 151
S Kumars Nationwide Ltd. 525,960 147
NIIT Ltd. 231,147 143
Sterlite Technologies Ltd. 249,505 138
* Hotel Leela Venture Ltd. 238,890 132
* Asahi India Glass Ltd. 105,677 128
* Merck Ltd. 10,931 126
Uflex Ltd. 62,820 117
* Zuari Agro Chemicals Ltd. 19,189 116
Sterlite Industries India Ltd. ADR 15,100 113
Sundram Fasteners Ltd. 123,635 111
Jai Corp. Ltd. 101,667 106
Praj Industries Ltd. 122,701 103
* Tulip Telecom Ltd. 124,890 86
* Nagarjuna Fertilizers & Chemicals Ltd. 312,129 65
Kemrock Industries & Exports Ltd. 44,983 62
* Glodyne Technoserve Ltd. 50,846 52
Jain Irrigation Systems Ltd. 32,150 21
    1,214,699
Indonesia (0.7%)    
Astra International Tbk PT 87,961,000 73,422
Bank Central Asia Tbk PT 53,034,000 45,135
Telekomunikasi Indonesia Persero Tbk PT 43,842,200 44,529
Bank Rakyat Indonesia Persero Tbk PT 47,745,500 36,588
Bank Mandiri Persero Tbk PT 40,170,124 34,317
Perusahaan Gas Negara Persero Tbk PT 47,618,000 22,966
Semen Gresik Persero Tbk PT 12,862,000 19,885
Unilever Indonesia Tbk PT 6,652,000 17,991
United Tractors Tbk PT 7,326,515 15,997
Indocement Tunggal Prakarsa Tbk PT 6,372,500 14,144
Bank Negara Indonesia Persero Tbk PT 32,157,995 12,831
Indofood Sukses Makmur Tbk PT 19,198,000 11,359
Gudang Garam Tbk PT 2,072,500 10,568
Charoen Pokphand Indonesia Tbk PT 32,283,365 10,453

 

37


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Kalbe Farma Tbk PT 99,185,510 9,992
Bank Danamon Indonesia Tbk PT 14,574,109 9,239
Adaro Energy Tbk PT 62,094,000 8,806
Lippo Karawaci Tbk PT 79,280,500 7,651
Indo Tambangraya Megah Tbk PT 1,706,800 7,187
Tambang Batubara Bukit Asam Persero Tbk PT 3,470,000 5,755
Bhakti Investama Tbk PT 93,754,500 5,338
Jasa Marga Persero Tbk PT 8,798,500 5,299
XL Axiata Tbk PT 7,400,723 5,265
Bumi Resources Tbk PT 63,856,500 4,359
Indosat Tbk PT 5,986,500 4,039
Summarecon Agung Tbk PT 20,891,500 3,804
Astra Agro Lestari Tbk PT 1,729,000 3,757
AKR Corporindo Tbk PT 7,567,000 3,486
Ciputra Development Tbk PT 46,191,000 3,253
Vale Indonesia Tbk PT 10,498,500 2,930
* Tower Bersama Infrastructure Tbk PT 5,090,500 2,644
Holcim Indonesia Tbk PT 7,488,500 2,527
Alam Sutera Realty Tbk PT 41,553,000 2,496
Mitra Adiperkasa Tbk PT 3,266,500 2,218
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT 18,892,500 2,152
* Garuda Indonesia Persero Tbk PT 29,656,000 2,125
* Trada Maritime Tbk PT 21,385,500 2,108
Bank Tabungan Negara Persero Tbk PT 11,907,500 1,874
Japfa Comfeed Indonesia Tbk PT 3,656,000 1,851
Aneka Tambang Persero Tbk PT 13,881,000 1,842
* Sentul City Tbk PT 90,369,000 1,802
Surya Semesta Internusa Tbk PT 14,628,500 1,789
Ramayana Lestari Sentosa Tbk PT 14,639,000 1,685
Citra Marga Nusaphala Persada Tbk PT 6,714,000 1,620
* Bakrie and Brothers Tbk PT 285,539,000 1,485
Gajah Tunggal Tbk PT 6,509,500 1,466
* Kawasan Industri Jababeka Tbk PT 67,159,000 1,425
Wijaya Karya Persero Tbk PT 9,658,000 1,373
* Energi Mega Persada Tbk PT 134,696,032 1,267
* Indah Kiat Pulp & Paper Corp. Tbk PT 12,434,500 1,265
* Benakat Petroleum Energy Tbk PT 66,043,000 1,220
Timah Persero Tbk PT 8,081,500 1,197
* Bakrieland Development Tbk PT 167,611,000 1,128
Pakuwon Jati Tbk PT 38,399,600 1,115
Indika Energy Tbk PT 6,700,500 1,076
* Erajaya Swasembada Tbk PT 4,131,500 1,030
* ABM Investama Tbk PT 2,802,000 1,002
Krakatau Steel Persero Tbk PT 13,596,500 988
Agung Podomoro Land Tbk PT 24,396,000 921
Multistrada Arah Sarana Tbk PT 22,888,500 890
* BW Plantation Tbk PT 5,823,000 870
Ciputra Property Tbk PT 12,657,500 867
Medco Energi Internasional Tbk PT 5,193,500 851
Bank Bukopin Tbk PT 12,149,166 804
Sampoerna Agro PT 3,124,500 785
Bisi International PT 6,953,500 771
* Panin Financial Tbk PT 50,196,000 693
* Barito Pacific Tbk PT 12,416,500 644
Intiland Development Tbk PT 19,333,500 632
Hexindo Adiperkasa Tbk PT 830,000 615
* Bakrie Telecom Tbk PT 94,762,000 591
* Modernland Realty Tbk PT 10,203,500 581
Selamat Sempurna Tbk PT 2,245,500 571
* Berlian Laju Tanker Tbk PT 25,926,000 529
Nippon Indosari Corpindo Tbk PT 824,000 514
Bakrie Sumatera Plantations Tbk PT 39,972,500 493
Pembangunan Perumahan Persero Tbk PT 5,998,000 478
Tunas Baru Lampung Tbk PT 8,646,500 457

 

38


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Resource Alam Indonesia Tbk PT 1,548,000 457
* Delta Dunia Makmur Tbk PT 18,122,000 330
Clipan Finance Indonesia Tbk PT 6,542,000 271
Asahimas Flat Glass Tbk PT 301,000 244
* Darma Henwa Tbk PT 42,227,000 219
* Polychem Indonesia Tbk PT 4,044,000 153
    521,346
Ireland (0.3%)    
CRH plc 3,151,552 58,662
Kerry Group plc Class A 651,846 34,080
* Elan Corp. plc 2,194,074 23,879
Paddy Power plc 192,362 14,192
* Governor & Co. of the Bank of Ireland 104,811,058 12,381
DCC plc 367,727 10,507
Smurfit Kappa Group plc 678,423 7,480
C&C Group plc 1,511,055 7,239
Kingspan Group plc 598,954 6,247
Glanbia plc 596,344 5,653
* Ryanair Holdings plc 701,590 4,068
Grafton Group plc 907,682 3,957
Greencore Group plc 1,744,209 2,561
Aer Lingus Group plc 1,144,792 1,529
FBD Holdings plc 96,422 1,207
Total Produce plc 1,492,368 942
WPP plc ADR 12,807 828
* Ryanair Holdings plc ADR 25,555 824
Irish Continental Group plc 20,000 488
* Independent News & Media plc 1,668,414 184
* Irish Bank Resolution Corp. Ltd. 698,992
    196,908
Israel (0.4%)    
Teva Pharmaceutical Industries Ltd. 4,101,913 165,477
Israel Chemicals Ltd. 1,932,198 24,173
* Bank Hapoalim BM 4,608,300 18,130
* Bank Leumi Le-Israel BM 5,453,837 17,579
* Mellanox Technologies Ltd. 155,629 11,745
Bezeq The Israeli Telecommunication Corp. Ltd. 8,287,145 10,096
* NICE Systems Ltd. 263,157 8,790
Israel Corp. Ltd. 10,076 6,847
* Mizrahi Tefahot Bank Ltd. 541,464 4,917
* Israel Discount Bank Ltd. Class A 3,401,638 4,799
Delek Group Ltd. 20,101 3,822
Elbit Systems Ltd. 104,507 3,679
Gazit-Globe Ltd. 329,176 3,648
Paz Oil Co. Ltd. 19,030 2,508
Partner Communications Co. Ltd. 362,280 2,085
Osem Investments Ltd. 137,494 2,076
* Strauss Group Ltd. 164,763 1,862
Frutarom Industries Ltd. 168,366 1,813
Harel Insurance Investments & Financial Services Ltd. 46,643 1,758
* Oil Refineries Ltd. 3,563,606 1,716
Alony Hetz Properties & Investments Ltd. 317,379 1,590
Shikun & Binui Ltd. 940,386 1,569
Migdal Insurance & Financial Holding Ltd. 1,136,859 1,532
* Retalix Ltd. 66,941 1,321
Ormat Industries 246,408 1,309
Clal Insurance Enterprises Holdings Ltd. 90,456 1,229
* Given Imaging Ltd. 67,004 1,206
Cellcom Israel Ltd. (Registered) 134,474 1,200
* Nitsba Holdings 1995 Ltd. 134,704 1,066
* First International Bank Of Israel Ltd. 86,634 1,029
Shufersal Ltd. 368,304 995
Babylon Ltd. 113,300 935
Delek Automotive Systems Ltd. 146,848 919

 

39


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Clal Industries Ltd. 251,239 887
  Melisron Ltd. 52,278 876
  Ituran Location and Control Ltd. 68,911 858
  Cellcom Israel Ltd. 96,644 858
  Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. 27,626 824
* Jerusalem Oil Exploration 48,855 822
* Africa Israel Investments Ltd. 307,669 783
* Menorah Mivtachim Holdings Ltd. 98,527 755
  Norstar Holdings Inc. 34,057 750
  Electra Ltd. 7,997 678
* Tower Semiconductor Ltd. 78,876 656
  Matrix IT Ltd. 149,940 654
  Amot Investments Ltd. 264,112 616
* Koor Industries Ltd. 43,706 579
* Airport City Ltd. 128,237 579
* Naphtha Israel Petroleum Corp. Ltd. 148,085 568
* Jerusalem Economy Ltd. 110,588 542
* Industrial Buildings Corp. 393,465 524
* Ceragon Networks Ltd. 119,270 524
  Hot Telecommunication System Ltd. 51,244 509
* Gilat Satellite Networks Ltd. 112,502 501
  Bayside Land Corp. 2,364 443
* AL-ROV Israel Ltd. 19,045 428
* Phoenix Holdings Ltd. 194,602 405
* Africa Israel Properties Ltd. 49,002 380
* Discount Investment Corp. 102,366 373
* FIBI Holdings Ltd. 23,341 350
* Clal Biotechnology Industries Ltd. 102,659 317
  Plasson Industries Ltd. 10,938 296
* Hadera Paper Ltd. 6,569 286
* Union Bank of Israel 82,987 272
  Avgol Industries 1953 Ltd. 361,349 272
* Property & Building Corp. 6,092 264
* Alrov Properties and Lodgings Ltd. 13,858 244
* B Communications Ltd. 27,881 161
  Alon Holdings Blue Square Israel Ltd. 51,605 134
  Israel Land Development Co. Ltd. 24,097 92
      332,480
Italy (1.6%)    
  Eni SPA 11,065,473 254,629
  Enel SPA 28,603,788 107,716
  Assicurazioni Generali SPA 5,074,077 82,627
* UniCredit SPA 17,624,410 77,956
  Intesa Sanpaolo SPA (Registered) 43,785,176 70,534
  Saipem SPA 1,149,843 51,811
  Fiat Industrial SPA 3,715,820 40,276
  Telecom Italia SPA (Registered) 40,885,093 37,722
  Tenaris SA 1,776,173 33,294
^ Snam SPA 7,361,304 32,621
  Atlantia SPA 1,433,796 23,715
  Terna Rete Elettrica Nazionale SPA 5,701,905 21,438
  Telecom Italia SPA (Bearer) 26,244,835 21,016
  Luxottica Group SPA 508,133 19,395
* Fiat SPA 3,807,933 18,636
  Prysmian SPA 881,140 16,989
  Unione di Banche Italiane SCPA 3,733,264 14,706
  Enel Green Power SPA 7,620,299 12,979
  Mediobanca SPA 2,241,313 12,815
* Banco Popolare SC 7,602,011 12,131
^ Pirelli & C. SPA 1,034,152 12,013
  Davide Campari-Milano SPA 1,268,532 10,295
^,* Finmeccanica SPA 1,770,243 8,779
  Banca Popolare dell'Emilia Romagna Scrl 1,452,865 8,658
^,* Banca Monte dei Paschi di Siena SPA 28,020,437 7,746

 

40


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Banca Popolare di Sondrio SCARL 1,335,173 7,647
* Banca Popolare di Milano Scarl 13,209,108 7,279
  Exor SPA 278,855 7,197
  Azimut Holding SPA 490,730 6,234
  Tod's SPA 52,795 6,188
^ Mediaset SPA 3,022,121 5,309
  Intesa Sanpaolo SPA (Bearer) 3,972,372 5,256
  Autogrill SPA 501,316 5,132
^ Lottomatica Group SPA 225,696 4,858
  Impregilo SPA 1,176,095 4,749
  Mediolanum SPA 966,353 4,744
^ Banca Carige SPA 4,284,918 3,967
^ Salvatore Ferragamo Italia SPA 183,766 3,743
  Buzzi Unicem SPA 311,475 3,706
^ DiaSorin SPA 108,086 3,630
  Ansaldo STS SPA 424,529 3,455
  Banca Generali SPA 222,318 3,265
  Recordati SPA 396,699 3,178
^ Hera SPA 1,695,451 2,858
* Societa Cattolica di Assicurazioni SCRL 179,251 2,793
* Fondiaria-Sai SPA 2,132,584 2,774
  Banca Piccolo Credito Valtellinese Scarl 1,728,895 2,753
* Sorin SPA 1,167,648 2,739
  A2A SPA 5,541,436 2,731
^,* Yoox SPA 174,538 2,645
  Danieli & C Officine Meccaniche SPA RSP 163,334 2,547
^,* Unipol Gruppo Finanziario SPA 1,093,827 2,395
  Beni Stabili SPA 3,957,379 2,224
  Societa Iniziative Autostradali e Servizi SPA 255,227 2,125
  De'Longhi SPA 158,851 2,118
^ Interpump Group SPA 251,123 1,911
* Unipol Gruppo Finanziario SPA Prior Pfd. 1,175,072 1,890
^,* Saras SPA 1,408,355 1,885
* Gemina SPA 1,963,188 1,875
  CIR-Compagnie Industriali Riunite SPA 1,616,954 1,852
  Amplifon SPA 387,933 1,799
  Danieli & C Officine Meccaniche SPA 61,811 1,771
^ Piaggio & C SPA 693,343 1,710
  Credito Emiliano SPA 343,097 1,657
  ERG SPA 221,275 1,606
^ Italcementi SPA 315,196 1,595
^ Autostrada Torino-Milano SPA 144,999 1,454
* Milano Assicurazioni SPA 3,404,406 1,449
  ACEA SPA 256,657 1,412
  Astaldi SPA 208,721 1,344
^,* RCS MediaGroup SPA 725,674 1,323
  Brembo SPA 123,561 1,262
  Iren SPA 2,227,223 1,255
* Safilo Group SPA 143,026 1,209
  MARR SPA 121,230 1,145
  Indesit Co. SPA 181,615 1,127
  Trevi Finanziaria Industriale SPA 164,332 1,111
  Buzzi Unicem SPA 188,928 1,106
  Italcementi SPA RSP 424,492 1,087
^ Geox SPA 319,807 914
  Cofide SPA 1,501,166 848
* Ei Towers SPA 31,646 835
  Zignago Vetro SPA 123,454 716
^,* Cam Finanziaria SPA 1,092,568 688
* Italmobiliare SPA RISP (non CNV) 60,840 665
  Societa per la Bonifica dei Terreni Ferraresi e Imprese Agricole SPA 11,820 630
  Engineering Ingegneria Informatica SPA 15,727 556
* DeA Capital SPA 332,916 553
* Arnoldo Mondadori Editore SPA 408,382 552

 

41


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Immobiliare Grande Distribuzione 521,799 539
  Industria Macchine Automatiche SPA 30,014 526
  Vittoria Assicurazioni SPA 85,350 519
  Esprinet SPA 126,684 518
^,* Juventus Football Club SPA 1,690,066 470
  Cementir Holding SPA 222,082 469
  Sogefi SPA 185,160 445
^ Gruppo Editoriale L'Espresso SPA 446,702 444
  Falck Renewables SPA 355,870 435
^,* Landi Renzo SPA 232,365 423
* Italmobiliare SPA 25,946 400
* Fondiaria-Sai SPA RSP 3,821 378
  Alerion Cleanpower SPA 74,112 362
* KME Group SPA 754,652 342
  IMMSI SPA 672,788 335
  Banca IFIS SPA 48,249 331
^,* Prelios SPA 2,955,945 318
  Marcolin SPA 56,805 309
  Reply SPA 11,876 309
^,* Telecom Italia Media SPA 1,429,503 304
* Maire Tecnimont SPA 365,417 292
* Poltrona Frau SPA 210,555 266
* Ascopiave SPA 154,426 266
  Cairo Communication SPA 82,741 260
  BasicNet SPA 102,532 235
  Banca Profilo SPA 731,088 228
  Sabaf SPA 18,487 209
* Snai SPA 166,386 153
      1,183,613
Japan (13.8%)    
  Toyota Motor Corp. 11,998,371 462,623
  Mitsubishi UFJ Financial Group Inc. 55,413,602 250,689
  Honda Motor Co. Ltd. 7,091,393 213,190
  Sumitomo Mitsui Financial Group Inc. 5,844,214 178,582
  Canon Inc. 4,932,672 160,310
  Takeda Pharmaceutical Co. Ltd. 3,435,939 159,705
  Mizuho Financial Group Inc. 99,413,072 155,550
  FANUC Corp. 833,974 132,865
  Softbank Corp. 3,852,813 121,681
  Mitsubishi Corp. 6,119,016 109,242
  Japan Tobacco Inc. 3,914,733 108,251
  Mitsubishi Estate Co. Ltd. 5,442,656 107,713
  Hitachi Ltd. 20,177,815 107,006
  Mitsui & Co. Ltd. 7,565,366 106,636
  East Japan Railway Co. 1,477,490 101,410
  Seven & I Holdings Co. Ltd. 3,280,608 101,172
  Shin-Etsu Chemical Co. Ltd. 1,783,884 100,724
  NTT DOCOMO Inc. 66,518 96,386
  Astellas Pharma Inc. 1,932,529 96,119
  KDDI Corp. 1,170,700 90,940
  Nissan Motor Co. Ltd. 10,809,159 90,401
  Nippon Telegraph & Telephone Corp. 1,898,713 86,825
  Komatsu Ltd. 4,065,829 85,198
  Tokio Marine Holdings Inc. 3,151,379 83,417
  Mitsui Fudosan Co. Ltd. 3,637,915 73,540
  Nippon Steel & Sumitomo Metal Corp. 33,054,485 72,962
  Sumitomo Corp. 4,895,248 66,736
  Denso Corp. 2,114,710 66,396
  Bridgestone Corp. 2,830,135 66,109
  ITOCHU Corp. 6,549,339 65,556
  Toshiba Corp. 17,513,231 65,074
  Kao Corp. 2,288,722 64,294
  Mitsubishi Electric Corp. 8,408,495 62,851
  Nintendo Co. Ltd. 462,095 59,656

 

42


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Kyocera Corp. 664,828 58,477
Panasonic Corp. 9,607,342 58,274
Nomura Holdings Inc. 15,816,504 57,174
Tokyo Gas Co. Ltd. 10,720,382 56,807
Mitsubishi Heavy Industries Ltd. 13,207,400 55,631
Inpex Corp. 9,557 54,445
Central Japan Railway Co. 626,300 53,896
Keyence Corp. 198,064 52,584
JX Holdings Inc. 9,757,360 51,968
Sony Corp. 4,365,890 51,694
Fast Retailing Co. Ltd. 230,701 51,370
Eisai Co. Ltd. 1,094,411 48,692
Kubota Corp. 4,755,394 48,624
Otsuka Holdings Co. Ltd. 1,574,911 48,551
Kirin Holdings Co. Ltd. 3,782,872 47,487
ORIX Corp. 456,052 46,841
Secom Co. Ltd. 914,003 46,554
Marubeni Corp. 7,180,707 46,530
Daiichi Sankyo Co. Ltd. 2,931,097 44,864
Sumitomo Realty & Development Co. Ltd. 1,552,151 42,889
Murata Manufacturing Co. Ltd. 881,374 42,875
Ajinomoto Co. Inc. 2,804,795 42,823
Dai-ichi Life Insurance Co. Ltd. 37,039 42,705
Sumitomo Mitsui Trust Holdings Inc. 13,569,511 41,181
Asahi Group Holdings Ltd. 1,684,711 38,450
Hoya Corp. 1,897,005 38,419
Nikon Corp. 1,479,337 37,737
MS&AD Insurance Group Holdings 2,206,017 37,411
Toray Industries Inc. 6,394,450 37,325
SMC Corp. 235,038 37,056
Suzuki Motor Corp. 1,584,765 35,941
Resona Holdings Inc. 8,196,828 35,469
Sumitomo Electric Industries Ltd. 3,273,667 35,217
Nidec Corp. 477,986 34,016
FUJIFILM Holdings Corp. 2,011,319 33,952
Tokyo Electron Ltd. 746,566 33,618
Osaka Gas Co. Ltd. 8,143,834 33,565
Daiwa House Industry Co. Ltd. 2,213,199 33,564
Nitto Denko Corp. 719,672 32,693
West Japan Railway Co. 737,790 32,210
Daito Trust Construction Co. Ltd. 315,583 31,854
Fujitsu Ltd. 8,103,378 31,177
JGC Corp. 902,391 31,047
JFE Holdings Inc. 2,134,578 30,127
Asahi Kasei Corp. 5,476,144 30,126
Sumitomo Metal Mining Co. Ltd. 2,278,716 30,010
Asahi Glass Co. Ltd. 4,382,678 29,793
NKSJ Holdings Inc. 1,630,266 29,719
Oriental Land Co. Ltd. 216,964 29,595
Odakyu Electric Railway Co. Ltd. 2,728,371 28,950
Daiwa Securities Group Inc. 7,224,155 28,818
Chubu Electric Power Co. Inc. 2,793,608 28,786
Nippon Building Fund Inc. 2,667 28,652
Terumo Corp. 661,981 28,512
Aeon Co. Ltd. 2,606,164 28,424
Rakuten Inc. 3,150,978 28,325
Daikin Industries Ltd. 1,022,520 28,306
^ Kintetsu Corp. 7,073,546 27,721
Hankyu Hanshin Holdings Inc. 4,978,455 27,560
T&D Holdings Inc. 2,519,950 27,536
Isuzu Motors Ltd. 5,152,753 27,256
Unicharm Corp. 496,151 26,844
LIXIL Group Corp. 1,161,444 25,678
Japan Real Estate Investment Corp. 2,562 25,654

 

43


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Tokyu Corp. 4,957,504 25,217
Kansai Electric Power Co. Inc. 3,274,180 25,183
Yamato Holdings Co. Ltd. 1,634,859 24,905
Fuji Heavy Industries Ltd. 2,555,606 24,636
Aisin Seiki Co. Ltd. 830,169 24,245
Bank of Yokohama Ltd. 5,257,448 24,195
Sekisui House Ltd. 2,346,510 23,993
Shizuoka Bank Ltd. 2,324,824 23,778
Tobu Railway Co. Ltd. 4,430,285 23,542
Mitsubishi Chemical Holdings Corp. 5,892,358 23,337
^ Ricoh Co. Ltd. 2,764,783 23,138
Yahoo Japan Corp. 63,385 21,814
Ono Pharmaceutical Co. Ltd. 359,738 21,721
* NEC Corp. 11,300,932 21,676
Shionogi & Co. Ltd. 1,295,622 21,510
Shimano Inc. 323,779 20,411
Toyota Industries Corp. 707,360 20,239
Toyota Tsusho Corp. 925,016 20,205
^ TDK Corp. 534,569 20,102
Shiseido Co. Ltd. 1,567,595 19,838
Chugai Pharmaceutical Co. Ltd. 975,445 19,764
^ Yakult Honsha Co. Ltd. 419,981 19,566
Chiba Bank Ltd. 3,316,445 19,372
Makita Corp. 488,275 19,331
Lawson Inc. 262,926 19,322
Keikyu Corp. 2,049,187 19,299
Keio Corp. 2,507,175 19,028
Dentsu Inc. 789,985 18,661
Sumitomo Chemical Co. Ltd. 6,483,919 18,222
NTT Data Corp. 5,477 17,851
Omron Corp. 880,505 17,554
Kuraray Co. Ltd. 1,506,704 17,512
Dai Nippon Printing Co. Ltd. 2,427,353 17,200
* Olympus Corp. 944,825 16,508
Japan Retail Fund Investment Corp. 9,042 16,484
Sega Sammy Holdings Inc. 869,241 16,384
Yamada Denki Co. Ltd. 376,243 16,322
Isetan Mitsukoshi Holdings Ltd. 1,546,363 15,137
Sekisui Chemical Co. Ltd. 1,842,527 15,132
Credit Saison Co. Ltd. 685,951 15,073
Sysmex Corp. 314,167 14,772
Daihatsu Motor Co. Ltd. 837,697 14,661
* Mitsubishi Motors Corp. 16,905,304 14,572
* Tohoku Electric Power Co. Inc. 1,961,187 14,446
^ Dena Co. Ltd. 462,451 14,433
Benesse Holdings Inc. 295,763 14,246
Mitsubishi Materials Corp. 4,881,570 14,193
Toppan Printing Co. Ltd. 2,450,365 14,162
* Mazda Motor Corp. 11,793,956 14,067
Mitsubishi Tanabe Pharma Corp. 974,153 14,042
Santen Pharmaceutical Co. Ltd. 320,347 14,033
Kyushu Electric Power Co. Inc. 1,846,895 14,005
Hirose Electric Co. Ltd. 130,820 14,002
Chugoku Electric Power Co. Inc. 1,293,145 13,910
Hisamitsu Pharmaceutical Co. Inc. 268,499 13,883
Konica Minolta Holdings Inc. 2,085,189 13,872
Joyo Bank Ltd. 2,811,506 13,606
Nippon Express Co. Ltd. 3,700,425 13,542
Rohm Co. Ltd. 417,666 13,489
Sony Financial Holdings Inc. 752,532 13,420
JSR Corp. 781,806 13,411
Nippon Yusen KK 7,025,567 13,392
NGK Insulators Ltd. 1,180,733 13,165
Fukuoka Financial Group Inc. 3,359,984 13,139

 

44


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Electric Power Development Co. Ltd. 506,783 12,981
  Trend Micro Inc. 454,563 12,742
  Kawasaki Heavy Industries Ltd. 6,191,304 12,736
  Obayashi Corp. 2,844,404 12,725
  Taisho Pharmaceutical Holdings Co. Ltd. 155,733 12,577
  MEIJI Holdings Co. Ltd. 273,539 12,516
  Jupiter Telecommunications Co. Ltd. 9,133 12,436
^,* Japan Airlines Co. Ltd. 261,204 12,434
  FamilyMart Co. Ltd. 256,393 12,425
  Taisei Corp. 4,476,399 12,342
  Nitori Holdings Co. Ltd. 149,790 12,232
  Namco Bandai Holdings Inc. 775,164 12,180
  Bank of Kyoto Ltd. 1,410,925 12,127
  IHI Corp. 5,719,749 12,046
  Kyowa Hakko Kirin Co. Ltd. 1,126,736 11,993
  Yamaha Motor Co. Ltd. 1,226,721 11,713
  Mitsui OSK Lines Ltd. 4,754,923 11,397
  TonenGeneral Sekiyu KK 1,231,795 11,179
  Kurita Water Industries Ltd. 490,506 11,135
  United Urban Investment Corp. Class A 9,218 11,083
  Chiyoda Corp. 685,963 11,081
  Keisei Electric Railway Co. Ltd. 1,207,500 11,070
  J Front Retailing Co. Ltd. 2,096,872 10,904
  Toho Gas Co. Ltd. 1,794,573 10,877
  Mitsubishi UFJ Lease & Finance Co. Ltd. 251,737 10,854
  Hamamatsu Photonics KK 311,610 10,804
  Chugoku Bank Ltd. 766,409 10,548
  NSK Ltd. 1,903,952 10,458
^ All Nippon Airways Co. Ltd. 4,935,946 10,454
* Tokyo Electric Power Co. Inc. 6,341,709 10,353
  Nisshin Seifun Group Inc. 827,980 10,347
  Advance Residence Investment Corp. 4,770 10,343
  Tokyu Land Corp. 1,841,770 10,340
  Oji Holdings Corp. 3,503,705 10,274
  Japan Prime Realty Investment Corp. 3,400 10,247
  Taiheiyo Cement Corp. 4,802,398 10,238
  Kansai Paint Co. Ltd. 948,033 10,212
  Miraca Holdings Inc. 240,949 10,176
  Shimamura Co. Ltd. 97,199 10,131
  Ube Industries Ltd. 4,429,333 10,116
  Kajima Corp. 3,648,284 10,104
  Konami Corp. 439,393 10,087
  USS Co. Ltd. 95,888 10,082
  Yokogawa Electric Corp. 882,643 10,047
  Brother Industries Ltd. 1,034,227 9,754
  Kikkoman Corp. 731,878 9,718
  Sankyo Co. Ltd. 214,351 9,711
  Shinsei Bank Ltd. 6,623,037 9,710
  Rinnai Corp. 141,700 9,678
  Suzuken Co. Ltd. 305,592 9,647
  Nissin Foods Holdings Co. Ltd. 254,169 9,611
* Kobe Steel Ltd. 10,942,912 9,606
  Asics Corp. 658,711 9,573
  Toyo Suisan Kaisha Ltd. 382,279 9,526
^ Showa Denko KK 6,177,762 9,450
  Suruga Bank Ltd. 783,693 9,411
^ Sharp Corp. 4,357,246 9,400
  Nomura Research Institute Ltd. 440,351 9,360
  Hachijuni Bank Ltd. 1,810,425 9,352
  Nippon Meat Packers Inc. 749,313 9,299
  Don Quijote Co. Ltd. 235,300 9,273
  Teijin Ltd. 4,040,422 9,266
  TOTO Ltd. 1,225,871 9,187
  Iyo Bank Ltd. 1,129,053 8,730

 

45


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
NGK Spark Plug Co. Ltd. 778,919 8,723
Sumitomo Rubber Industries Ltd. 739,430 8,717
THK Co. Ltd. 524,258 8,715
Shimizu Corp. 2,601,794 8,704
Sumitomo Heavy Industries Ltd. 2,418,460 8,671
MISUMI Group Inc. 352,300 8,656
Hino Motors Ltd. 1,114,783 8,617
Stanley Electric Co. Ltd. 621,337 8,551
Toho Co. Ltd. 489,797 8,543
Hulic Co. Ltd. 1,051,100 8,364
Nippon Electric Glass Co. Ltd. 1,634,931 8,321
Mitsubishi Gas Chemical Co. Inc. 1,679,271 8,297
Tsumura & Co. 259,313 8,292
Nabtesco Corp. 442,256 8,254
Aeon Mall Co. Ltd. 317,472 8,235
Frontier Real Estate Investment Corp. 929 8,210
Idemitsu Kosan Co. Ltd. 95,360 8,207
Air Water Inc. 654,553 8,202
Advantest Corp. 644,527 8,152
Japan Steel Works Ltd. 1,366,494 8,100
Kamigumi Co. Ltd. 1,003,414 8,093
MediPal Holdings Corp. 632,334 8,053
Alfresa Holdings Corp. 177,058 8,004
Gunma Bank Ltd. 1,656,289 7,991
Amada Co. Ltd. 1,571,692 7,981
McDonald's Holdings Co. Japan Ltd. 286,794 7,969
Mitsui Chemicals Inc. 3,829,556 7,917
Shikoku Electric Power Co. Inc. 737,194 7,882
Dainippon Sumitomo Pharma Co. Ltd. 684,092 7,868
^ Hitachi Construction Machinery Co. Ltd. 471,640 7,754
Daicel Corp. 1,278,782 7,678
Yamaguchi Financial Group Inc. 910,340 7,543
Takashimaya Co. Ltd. 1,143,922 7,524
Anritsu Corp. 596,000 7,497
Nomura Real Estate Holdings Inc. 417,047 7,486
Nomura Real Estate Office Fund Inc. Class A 1,187 7,467
Nippon Kayaku Co. Ltd. 668,000 7,436
^ Casio Computer Co. Ltd. 958,783 7,337
Oracle Corp. Japan 164,138 7,299
Park24 Co. Ltd. 424,800 7,299
Hokuriku Electric Power Co. 734,818 7,298
* Tokyo Tatemono Co. Ltd. 1,772,000 7,293
JTEKT Corp. 964,454 7,243
NOK Corp. 447,930 7,186
Kewpie Corp. 429,900 7,100
^ Gree Inc. 406,755 7,090
Toyo Seikan Kaisha Ltd. 659,832 7,015
Aozora Bank Ltd. 2,481,297 6,997
Shimadzu Corp. 1,037,080 6,984
Marui Group Co. Ltd. 969,175 6,972
Mitsubishi Logistics Corp. 532,435 6,867
Hitachi Metals Ltd. 727,941 6,820
Sojitz Corp. 5,482,487 6,806
Mori Trust Sogo Reit Inc. 740 6,774
^ SBI Holdings Inc. 966,910 6,771
Ebara Corp. 1,726,000 6,769
Sawai Pharmaceutical Co. Ltd. 61,200 6,761
Yokohama Rubber Co. Ltd. 956,000 6,720
Yaskawa Electric Corp. 932,412 6,683
Dowa Holdings Co. Ltd. 998,000 6,659
Ibiden Co. Ltd. 528,052 6,659
Hokkaido Electric Power Co. Inc. 805,678 6,635
Nishi-Nippon City Bank Ltd. 2,906,372 6,627
Nissan Chemical Industries Ltd. 597,600 6,597

 

46


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Glory Ltd. 271,800 6,597
Seven Bank Ltd. 2,301,619 6,580
Kagome Co. Ltd. 321,600 6,557
Denki Kagaku Kogyo KK 2,122,447 6,554
Nippon Paint Co. Ltd. 813,000 6,506
^ Calbee Inc. 69,900 6,421
Shiga Bank Ltd. 973,000 6,365
^ Sanrio Co. Ltd. 192,840 6,349
Hitachi Chemical Co. Ltd. 448,815 6,330
UNY Co. Ltd. 886,600 6,309
COMSYS Holdings Corp. 472,700 6,284
Obic Co. Ltd. 30,230 6,221
Hakuhodo DY Holdings Inc. 102,588 6,148
Yamaha Corp. 683,156 6,139
Orix JREIT Inc. 1,256 6,116
Nichirei Corp. 1,099,000 6,062
Sugi Holdings Co. Ltd. 167,300 6,046
^ GS Yuasa Corp. 1,541,526 6,009
Ryohin Keikaku Co. Ltd. 90,500 5,993
Nihon Kohden Corp. 160,700 5,978
^ Aeon Credit Service Co. Ltd. 279,765 5,944
Hitachi High-Technologies Corp. 269,563 5,908
Citizen Holdings Co. Ltd. 1,162,691 5,901
Kaneka Corp. 1,209,429 5,900
DIC Corp. 3,189,000 5,880
Kobayashi Pharmaceutical Co. Ltd. 111,000 5,858
NHK Spring Co. Ltd. 700,689 5,852
Japan Logistics Fund Inc. 638 5,829
Sotetsu Holdings Inc. 1,708,000 5,796
Nippon Accommodations Fund Inc. Class A 813 5,777
Senshu Ikeda Holdings Inc. 923,560 5,758
Taiyo Nippon Sanso Corp. 1,037,882 5,696
77 Bank Ltd. 1,495,000 5,693
Yamazaki Baking Co. Ltd. 473,640 5,693
* Nexon Co. Ltd. 465,046 5,672
Azbil Corp. 275,900 5,644
Otsuka Corp. 69,177 5,640
Nippon Shokubai Co. Ltd. 569,000 5,581
* Furukawa Electric Co. Ltd. 2,789,000 5,562
Itochu Techno-Solutions Corp. 107,449 5,559
Toyoda Gosei Co. Ltd. 280,163 5,517
Sumitomo Osaka Cement Co. Ltd. 1,687,000 5,492
Disco Corp. 109,900 5,423
Sundrug Co. Ltd. 146,800 5,407
Rohto Pharmaceutical Co. Ltd. 388,000 5,347
Wacoal Holdings Corp. 473,000 5,322
Daido Steel Co. Ltd. 1,226,463 5,319
Lion Corp. 913,000 5,275
M3 Inc. 2,739 5,261
^ K's Holdings Corp. 196,700 5,260
Takara Holdings Inc. 702,000 5,258
Dainippon Screen Manufacturing Co. Ltd. 868,000 5,257
^ Kakaku.com Inc. 153,200 5,244
Nagase & Co. Ltd. 490,400 5,231
Izumi Co. Ltd. 214,000 5,200
Yamato Kogyo Co. Ltd. 184,455 5,181
H2O Retailing Corp. 502,000 5,164
Koito Manufacturing Co. Ltd. 413,800 5,140
Sumitomo Forestry Co. Ltd. 571,200 5,112
Tsuruha Holdings Inc. 66,900 5,071
Awa Bank Ltd. 848,000 5,068
Nanto Bank Ltd. 985,000 5,023
Mitsui Mining & Smelting Co. Ltd. 2,352,000 4,979
Fuji Electric Co. Ltd. 2,438,774 4,947

 

47


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Daiwahouse Residential Investment Corp. 627 4,941
^ Hikari Tsushin Inc. 89,400 4,940
  ABC-Mart Inc. 112,389 4,929
  Zeon Corp. 677,000 4,883
^ Nippon Paper Group Inc. 425,156 4,862
^,* Kawasaki Kisen Kaisha Ltd. 3,814,710 4,835
  Ushio Inc. 453,343 4,783
^ Minebea Co. Ltd. 1,455,000 4,782
^ eAccess Ltd. 9,423 4,755
  Kaken Pharmaceutical Co. Ltd. 306,000 4,740
  Japan Petroleum Exploration Co. 124,953 4,703
  Daishi Bank Ltd. 1,416,000 4,679
  Ogaki Kyoritsu Bank Ltd. 1,313,000 4,622
  Showa Shell Sekiyu KK 827,359 4,606
  Aoyama Trading Co. Ltd. 230,900 4,563
  Ship Healthcare Holdings Inc. 136,000 4,535
^ CyberAgent Inc. 2,259 4,515
  Keiyo Bank Ltd. 1,029,000 4,511
  Ito En Ltd. 239,600 4,509
  Nifco Inc. 197,600 4,490
  House Foods Corp. 276,500 4,463
  Juroku Bank Ltd. 1,374,000 4,459
  Wacom Co. Ltd. 1,528 4,438
  San-In Godo Bank Ltd. 641,000 4,434
  Mabuchi Motor Co. Ltd. 104,216 4,416
  Horiba Ltd. 160,600 4,382
  Daiichikosho Co. Ltd. 177,100 4,382
  Hokkoku Bank Ltd. 1,213,000 4,379
  Hyakugo Bank Ltd. 994,000 4,350
  Maruichi Steel Tube Ltd. 208,212 4,330
  Tosoh Corp. 2,201,279 4,309
  Cosmo Oil Co. Ltd. 2,412,850 4,292
  Alps Electric Co. Ltd. 722,700 4,273
  Kenedix Realty Investment Corp. Class A 1,244 4,249
  Higo Bank Ltd. 714,000 4,214
  Hoshizaki Electric Co. Ltd. 154,400 4,204
  Hitachi Capital Corp. 218,500 4,196
  Shimachu Co. Ltd. 189,800 4,194
  NTT Urban Development Corp. 5,078 4,184
  NET One Systems Co. Ltd. 375,900 4,184
  KYORIN Holdings Inc. 196,000 4,144
  Fujikura Ltd. 1,486,000 4,135
  Japan Excellent Inc. 743 4,119
  Toyobo Co. Ltd. 3,721,000 4,101
  Autobacs Seven Co. Ltd. 99,900 4,100
  Hitachi Zosen Corp. 3,264,500 4,090
  Coca-Cola West Co. Ltd. 264,926 4,061
  FP Corp. 53,700 4,037
  Kiyo Holdings Inc. 2,950,000 4,032
  IT Holdings Corp. 320,500 3,994
  Industrial & Infrastructure Fund Investment Corp. 513 3,964
  Sankyu Inc. 1,131,000 3,940
  Sanwa Holdings Corp. 980,000 3,918
  Onward Holdings Co. Ltd. 529,000 3,917
  Rengo Co. Ltd. 895,000 3,912
  Duskin Co. Ltd. 205,800 3,909
  Mori Hills REIT Investment Corp. 804 3,908
  OSG Corp. 297,600 3,901
  Sapporo Holdings Ltd. 1,394,000 3,893
  Hyakujushi Bank Ltd. 990,000 3,881
  Square Enix Holdings Co. Ltd. 274,807 3,874
* Haseko Corp. 6,041,000 3,856
  Musashino Bank Ltd. 134,500 3,852
  Kyowa Exeo Corp. 365,600 3,837

 

48


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* North Pacific Bank Ltd. 1,484,000 3,835
  Nisshinbo Holdings Inc. 584,000 3,821
  Mitsui Engineering & Shipbuilding Co. Ltd. 3,152,000 3,791
  Toho Holdings Co. Ltd. 185,000 3,782
  Kagoshima Bank Ltd. 592,000 3,774
  Taiyo Yuden Co. Ltd. 435,500 3,695
  Pigeon Corp. 80,000 3,686
  Tokyu REIT Inc. 698 3,685
  Kinden Corp. 584,006 3,656
  Century Tokyo Leasing Corp. 182,800 3,629
  SCSK Corp. 213,036 3,628
^ Zensho Holdings Co. Ltd. 298,100 3,626
  Capcom Co. Ltd. 189,700 3,618
^ Shochiku Co. Ltd. 368,000 3,587
  Nomura Real Estate Residential Fund Inc. 598 3,573
  Tokyo Ohka Kogyo Co. Ltd. 174,700 3,562
  Aica Kogyo Co. Ltd. 210,200 3,558
  Seino Holdings Co. Ltd. 617,000 3,558
  Nipro Corp. 517,200 3,536
  SKY Perfect JSAT Holdings Inc. 7,716 3,526
  OKUMA Corp. 576,000 3,520
^ NTN Corp. 1,959,324 3,515
  Fukuoka REIT Co. Class A 464 3,490
  Cosmos Pharmaceutical Corp. 35,100 3,461
  Tadano Ltd. 466,000 3,438
  Nissan Shatai Co. Ltd. 312,000 3,414
  Lintec Corp. 197,100 3,409
* Sumco Corp. 496,778 3,407
  Maeda Road Construction Co. Ltd. 268,000 3,365
  Sohgo Security Services Co. Ltd. 238,800 3,356
  Mochida Pharmaceutical Co. Ltd. 260,000 3,354
  Fuji Oil Co. Ltd. 252,000 3,354
  Daikyo Inc. 1,249,000 3,332
  Canon Marketing Japan Inc. 227,200 3,311
  Unipres Corp. 143,500 3,308
  Toagosei Co. Ltd. 808,000 3,294
  Bank of Okinawa Ltd. 77,900 3,243
  Megmilk Snow Brand Co. Ltd. 191,800 3,238
  Nippon Sheet Glass Co. Ltd. 3,892,413 3,224
  TS Tech Co. Ltd. 189,100 3,221
^ Fukuyama Transporting Co. Ltd. 613,000 3,218
  Ezaki Glico Co. Ltd. 285,000 3,214
  Komeri Co. Ltd. 132,500 3,198
  Jafco Co. Ltd. 140,300 3,188
  Nikkiso Co. Ltd. 266,000 3,176
  Pola Orbis Holdings Inc. 100,716 3,171
^ Seiko Epson Corp. 565,711 3,146
  Bank of Iwate Ltd. 67,500 3,129
  Daiwa Office Investment Corp. Class A 937 3,100
  Nihon Parkerizing Co. Ltd. 203,000 3,064
  Iwatani Corp. 781,000 3,061
  Matsumotokiyoshi Holdings Co. Ltd. 126,700 3,051
  Tokai Tokyo Financial Holdings Inc. 846,000 3,048
  Toho Bank Ltd. 907,000 3,033
  Sangetsu Co. Ltd. 113,700 3,027
  Accordia Golf Co. Ltd. 4,221 3,004
  Ain Pharmaciez Inc. 42,400 3,002
^,* Oki Electric Industry Co. Ltd. 2,984,000 2,998
  Penta-Ocean Construction Co. Ltd. 1,246,000 2,996
  Toyo Ink SC Holdings Co. Ltd. 813,000 2,996
  Premier Investment Corp. 817 2,975
  Nippon Konpo Unyu Soko Co. Ltd. 246,500 2,970
  Meitec Corp. 134,600 2,964
  Maruha Nichiro Holdings Inc. 1,801,000 2,959

 

49


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Hitachi Transport System Ltd. 196,000 2,942
  NOF Corp. 602,000 2,874
  Takara Standard Co. Ltd. 383,000 2,874
  Chiyoda Co. Ltd. 100,400 2,872
  Tsubakimoto Chain Co. 583,000 2,856
  Sumitomo Bakelite Co. Ltd. 797,000 2,845
  Okasan Securities Group Inc. 753,000 2,845
  Kose Corp. 131,500 2,838
  Moshi Moshi Hotline Inc. 186,500 2,809
  Avex Group Holdings Inc. 141,600 2,800
  Arnest One Corp. 188,300 2,794
^ Toyota Boshoku Corp. 293,878 2,787
  Arcs Co. Ltd. 131,500 2,775
  Heiwa Corp. 176,200 2,769
  Asatsu-DK Inc. 120,200 2,762
  Top REIT Inc. 592 2,757
  Hanwa Co. Ltd. 788,000 2,755
  Tokai Rika Co. Ltd. 218,800 2,746
  ADEKA Corp. 363,600 2,742
^ Matsui Securities Co. Ltd. 404,800 2,730
  Takata Corp. 149,200 2,726
  Resorttrust Inc. 144,800 2,699
  Yamanashi Chuo Bank Ltd. 666,000 2,696
  Towa Pharmaceutical Co. Ltd. 42,300 2,688
  Toshiba TEC Corp. 575,000 2,687
  Hogy Medical Co. Ltd. 52,400 2,681
  Tokai Carbon Co. Ltd. 832,000 2,673
  HIS Co. Ltd. 88,400 2,672
  Nichi-iko Pharmaceutical Co. Ltd. 124,700 2,638
^ Tokuyama Corp. 1,371,000 2,631
^,* Pioneer Corp. 1,096,200 2,626
  Miura Co. Ltd. 114,900 2,626
  SHO-BOND Holdings Co. Ltd. 86,800 2,625
  Mori Seiki Co. Ltd. 416,800 2,611
  Kokuyo Co. Ltd. 333,500 2,591
  Yamagata Bank Ltd. 587,000 2,589
  Toda Corp. 855,000 2,582
^ Start Today Co. Ltd. 233,776 2,562
^,* Tokyo Dome Corp. 759,000 2,559
  Tokyo Seimitsu Co. Ltd. 169,000 2,554
  Calsonic Kansei Corp. 631,000 2,550
  Nippo Corp. 225,000 2,550
  Morinaga Milk Industry Co. Ltd. 771,000 2,550
  Meidensha Corp. 723,000 2,547
  Point Inc. 66,740 2,542
  Sekisui House SI Investment Co. 557 2,540
  Nippon Soda Co. Ltd. 584,000 2,539
  Taikisha Ltd. 119,400 2,535
  DCM Holdings Co. Ltd. 370,200 2,522
  Exedy Corp. 129,000 2,522
  Yoshinoya Holdings Co. Ltd. 1,970 2,498
  TOMONY Holdings Inc. 591,100 2,481
  Oita Bank Ltd. 734,000 2,465
  Jaccs Co. Ltd. 578,000 2,463
  Aomori Bank Ltd. 828,000 2,459
  Itoham Foods Inc. 610,000 2,438
  Valor Co. Ltd. 142,400 2,435
  Hokuetsu Kishu Paper Co. Ltd. 475,000 2,434
  Nippon Shinyaku Co. Ltd. 201,000 2,421
  Internet Initiative Japan Inc. 92,400 2,414
^ Kadokawa Group Holdings Inc. 78,400 2,410
  Nitto Boseki Co. Ltd. 733,000 2,410
  FCC Co. Ltd. 133,900 2,405
  Global One Real Estate Investment Corp. 398 2,392

 

50


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Sankyo-Tateyama Holdings Inc. 1,096,000 2,376
Paramount Bed Holdings Co. Ltd. 68,000 2,371
Bank of Nagoya Ltd. 684,000 2,342
Maeda Corp. 529,000 2,340
Sumitomo Warehouse Co. Ltd. 559,000 2,339
Universal Entertainment Corp. 107,500 2,311
Toshiba Plant Systems & Services Corp. 169,000 2,287
Okumura Corp. 706,000 2,273
* Orient Corp. 1,198,500 2,253
United Arrows Ltd. 87,900 2,252
Nissin Kogyo Co. Ltd. 155,500 2,235
Ryosan Co. Ltd. 132,300 2,233
Central Glass Co. Ltd. 770,000 2,229
Nippon Suisan Kaisha Ltd. 1,014,100 2,223
^ KYB Co. Ltd. 615,000 2,213
Nachi-Fujikoshi Corp. 704,000 2,189
Keihin Corp. 178,400 2,154
Earth Chemical Co. Ltd. 57,900 2,150
Mandom Corp. 80,700 2,130
Cocokara fine Inc. 62,800 2,115
Toyo Engineering Corp. 510,000 2,111
Fujitsu General Ltd. 243,000 2,110
Toshiba Machine Co. Ltd. 480,000 2,082
Daiseki Co. Ltd. 154,100 2,079
Nippon Flour Mills Co. Ltd. 496,000 2,075
Inaba Denki Sangyo Co. Ltd. 76,000 2,075
TSI Holdings Co. Ltd. 339,900 2,074
Xebio Co. Ltd. 105,600 2,066
Daio Paper Corp. 372,000 2,055
Japan Rental Housing Investments Inc. Class A 3,391 2,053
^ Nichias Corp. 418,000 2,049
MID Reit Inc. 778 2,045
Fuji Machine Manufacturing Co. Ltd. 143,800 2,037
Mirait Holdings Corp. 251,100 2,035
Kureha Corp. 523,000 2,034
Asahi Diamond Industrial Co. Ltd. 229,000 2,028
PanaHome Corp. 324,000 2,025
* Nisshin Steel Holdings Co. Ltd. 305,392 2,024
Pacific Metals Co. Ltd. 595,000 2,023
JVC Kenwood Corp. 567,900 2,016
Fuyo General Lease Co. Ltd. 71,900 2,012
Bank of the Ryukyus Ltd. 159,500 2,006
Oiles Corp. 106,700 2,005
WATAMI Co. Ltd. 89,200 1,995
Showa Corp. 215,300 1,992
Taiyo Holdings Co. Ltd. 70,800 1,992
MOS Food Services Inc. 104,100 1,991
GMO internet Inc. 281,500 1,970
Amano Corp. 239,400 1,965
^ Colowide Co. Ltd. 221,500 1,961
Hokuto Corp. 97,700 1,953
Makino Milling Machine Co. Ltd. 415,000 1,951
Takasago Thermal Engineering Co. Ltd. 247,800 1,950
Okinawa Electric Power Co. Inc. 63,400 1,942
Noritz Corp. 118,100 1,940
Fuji Seal International Inc. 90,600 1,930
* Kanematsu Corp. 1,636,000 1,930
* Leopalace21 Corp. 638,400 1,922
^ Japan Hotel REIT Investment Corp. 6,783 1,914
Nippon Light Metal Holdings Co. Ltd. 2,118,000 1,912
Kissei Pharmaceutical Co. Ltd. 111,000 1,892
Daifuku Co. Ltd. 376,000 1,880
IBJ Leasing Co. Ltd. 74,200 1,875
Gunze Ltd. 748,000 1,873

 

51


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Toyo Tire & Rubber Co. Ltd. 770,000 1,871
^ Bic Camera Inc. 3,802 1,858
  Toho Zinc Co. Ltd. 546,000 1,855
  Fancl Corp. 172,200 1,850
  Canon Electronics Inc. 87,300 1,840
  Megachips Corp. 82,200 1,836
^,* Aiful Corp. 668,650 1,834
  Shinko Electric Industries Co. Ltd. 294,000 1,831
  Sumitomo Real Estate Sales Co. Ltd. 38,630 1,819
  Tamron Co. Ltd. 66,800 1,815
  Toppan Forms Co. Ltd. 192,500 1,813
  Heiwado Co. Ltd. 130,300 1,813
  Kandenko Co. Ltd. 388,000 1,807
  Shinmaywa Industries Ltd. 333,000 1,807
  Okamura Corp. 249,000 1,807
^ Dr Ci:Labo Co. Ltd. 561 1,803
  Musashi Seimitsu Industry Co. Ltd. 86,300 1,802
  Joshin Denki Co. Ltd. 163,000 1,785
  Hankyu Reit Inc. Class A 354 1,774
  Nishimatsuya Chain Co. Ltd. 219,100 1,765
  Aichi Bank Ltd. 31,800 1,761
  Nishimatsu Construction Co. Ltd. 1,124,000 1,760
  NEC Networks & System Integration Corp. 96,000 1,754
  Asahi Holdings Inc. 103,900 1,752
  Tatsuta Electric Wire and Cable Co. Ltd. 176,000 1,751
^ Kisoji Co. Ltd. 85,300 1,749
  Tachi-S Co. Ltd. 95,000 1,743
  Hokuetsu Bank Ltd. 906,000 1,737
  Takasago International Corp. 340,000 1,731
  Chofu Seisakusho Co. Ltd. 75,200 1,730
  Japan Airport Terminal Co. Ltd. 158,700 1,725
^ Message Co. Ltd. 559 1,724
  Dydo Drinco Inc. 40,400 1,724
  Saizeriya Co. Ltd. 121,800 1,711
  Kintetsu World Express Inc. 60,600 1,707
  Misawa Homes Co. Ltd. 115,800 1,704
  Fuji Soft Inc. 80,000 1,698
  Japan Aviation Electronics Industry Ltd. 213,000 1,698
  Mizuno Corp. 364,000 1,697
^ Tsugami Corp. 272,000 1,697
  J Trust Co. Ltd. 115,100 1,694
^ Seria Co. Ltd. 83,700 1,692
  Japan Wool Textile Co. Ltd. 246,000 1,689
  Nichii Gakkan Co. 185,300 1,688
  Sumitomo Light Metal Industries Ltd. 2,066,000 1,682
  Press Kogyo Co. Ltd. 402,000 1,681
  Ariake Japan Co. Ltd. 78,800 1,680
  Morinaga & Co. Ltd. 760,000 1,674
  Miyazaki Bank Ltd. 681,000 1,672
  Fujitec Co. Ltd. 279,000 1,672
  Heiwa Real Estate Co. Ltd. 142,100 1,662
* Mitsumi Electric Co. Ltd. 345,300 1,662
  Iseki & Co. Ltd. 724,000 1,661
  Paltac Corp. 113,100 1,656
  Aichi Steel Corp. 444,000 1,653
  Nisshin Oillio Group Ltd. 449,000 1,653
  Tokyo Broadcasting System Holdings Inc. 169,900 1,652
  Ricoh Leasing Co. Ltd. 70,700 1,647
  Japan Securities Finance Co. Ltd. 358,800 1,643
  Max Co. Ltd. 150,000 1,641
  Aeon Delight Co. Ltd. 79,700 1,640
^ MonotaRO Co. Ltd. 62,300 1,636
  Toei Co. Ltd. 298,000 1,635
  Daiwabo Holdings Co. Ltd. 870,000 1,612

 

52


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Alpine Electronics Inc. 185,400 1,611
  Daibiru Corp. 197,800 1,600
  EPS Corp. 533 1,591
  Sakata Seed Corp. 122,800 1,587
  Futaba Corp. 134,400 1,587
  Nihon Unisys Ltd. 217,800 1,584
  Kato Sangyo Co. Ltd. 87,000 1,574
  Hitachi Koki Co. Ltd. 219,000 1,571
  Fuji Co. Ltd. 74,300 1,567
  Nippon Seiki Co. Ltd. 163,000 1,566
^ Fuji Kyuko Co. Ltd. 250,000 1,566
  Eighteenth Bank Ltd. 596,000 1,563
  Nitto Kogyo Corp. 101,700 1,557
  Fujimi Inc. 79,400 1,551
  NSD Co. Ltd. 160,200 1,534
  TOC Co. Ltd. 287,800 1,533
  Nichicon Corp. 224,700 1,530
  Yodogawa Steel Works Ltd. 474,000 1,527
  Seikagaku Corp. 133,100 1,526
^ Royal Holdings Co. Ltd. 122,100 1,523
^ OSAKA Titanium Technologies Co. 76,700 1,519
  Enplas Corp. 42,500 1,518
  Tokyo Steel Manufacturing Co. Ltd. 472,400 1,518
^ Osaka Securities Exchange Co. Ltd. 407 1,517
  Senko Co. Ltd. 374,000 1,514
  Heiwa Real Estate REIT Inc. Class A 2,156 1,496
  AOKI Holdings Inc. 67,200 1,494
  HAJIME CONSTRUCTION Co. Ltd. 47,300 1,491
  Kitz Corp. 352,500 1,489
  Doutor Nichires Holdings Co. Ltd. 118,200 1,488
  Aida Engineering Ltd. 233,400 1,486
^ Takara Bio Inc. 153,300 1,472
  Round One Corp. 290,600 1,470
  Sanden Corp. 488,000 1,468
  Topy Industries Ltd. 751,000 1,459
  Shizuoka Gas Co. Ltd. 204,000 1,452
  Kansai Urban Banking Corp. 1,174,000 1,443
  Relo Holdings Inc. 43,200 1,437
  TKC Corp. 73,600 1,437
  Yamazen Corp. 232,200 1,431
  San-A Co. Ltd. 36,700 1,425
  Tomy Co. Ltd. 258,000 1,424
  Geo Holdings Corp. 1,266 1,423
  Trusco Nakayama Corp. 78,800 1,421
  Modec Inc. 69,900 1,420
  Star Micronics Co. Ltd. 151,500 1,418
  EDION Corp. 330,900 1,414
  Sanken Electric Co. Ltd. 452,000 1,412
  Tochigi Bank Ltd. 402,000 1,411
  Plenus Co. Ltd. 86,700 1,410
  Sanyo Special Steel Co. Ltd. 470,000 1,401
  Topre Corp. 161,800 1,397
  Kuroda Electric Co. Ltd. 123,400 1,391
  Shinko Plantech Co. Ltd. 167,900 1,379
  NEC Mobiling Ltd. 33,000 1,373
  Alpen Co. Ltd. 74,500 1,367
^,* Matsuya Co. Ltd. 130,200 1,366
  Takuma Co. Ltd. 268,000 1,364
^ Shima Seiki Manufacturing Ltd. 106,600 1,357
^ PGM Holdings K K 1,690 1,355
* Seiko Holdings Corp. 514,000 1,353
  Jin Co. Ltd. 45,000 1,353
  Mitsubishi Pencil Co. Ltd. 76,300 1,351
  Hitachi Kokusai Electric Inc. 198,000 1,343

 

53


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  ZERIA Pharmaceutical Co. Ltd. 84,000 1,342
  Tokai Rubber Industries Ltd. 151,100 1,339
  Nippon Synthetic Chemical Industry Co. Ltd. 203,000 1,333
^ Temp Holdings Co. Ltd. 110,500 1,328
  Toyo Corp. 116,100 1,327
  Cawachi Ltd. 62,200 1,327
  Vital KSK Holdings Inc. 130,900 1,326
  Kurabo Industries Ltd. 860,000 1,325
  TOKAI Holdings Corp. 325,200 1,324
  Sanyo Chemical Industries Ltd. 234,000 1,320
  Token Corp. 30,050 1,319
  Mitsui-Soko Co. Ltd. 429,000 1,312
  NS Solutions Corp. 64,600 1,308
  Coca-Cola Central Japan Co. Ltd. 106,200 1,305
  Mitsubishi Shokuhin Co. Ltd. 53,500 1,304
  Kohnan Shoji Co. Ltd. 107,600 1,303
^ Akebono Brake Industry Co. Ltd. 301,900 1,301
  Megane TOP Co. Ltd. 113,000 1,300
  Foster Electric Co. Ltd. 89,200 1,299
^ Asahi Intecc Co. Ltd. 43,500 1,291
  Monex Group Inc. 7,530 1,283
  Nitta Corp. 83,300 1,281
  Inabata & Co. Ltd. 197,700 1,278
  Milbon Co. Ltd. 39,260 1,270
^ Doshisha Co. Ltd. 45,600 1,269
  Minato Bank Ltd. 708,000 1,268
  Izumiya Co. Ltd. 256,000 1,267
  Marudai Food Co. Ltd. 361,000 1,267
  Komori Corp. 241,700 1,266
  Okuwa Co. Ltd. 94,000 1,266
  Nippon Densetsu Kogyo Co. Ltd. 139,000 1,265
  Nippon Coke & Engineering Co. Ltd. 1,073,000 1,264
  Chugoku Marine Paints Ltd. 256,000 1,264
* Kenedix Inc. 9,702 1,260
  Riken Corp. 376,000 1,259
  Sekisui Jushi Corp. 129,000 1,257
  Yaoko Co. Ltd. 30,600 1,250
  Denki Kogyo Co. Ltd. 271,000 1,247
  Zenrin Co. Ltd. 101,700 1,246
  Seiren Co. Ltd. 199,300 1,242
  Sintokogio Ltd. 175,100 1,236
  Mitsuboshi Belting Co. Ltd. 223,000 1,235
  St. Marc Holdings Co. Ltd. 33,000 1,231
  Transcosmos Inc. 110,300 1,229
  Welcia Holdings Co. Ltd. 33,330 1,225
  Hosiden Corp. 225,800 1,225
  ASKUL Corp. 81,400 1,223
^ Kappa Create Holdings Co. Ltd. 56,700 1,222
  Yuasa Trading Co. Ltd. 736,000 1,218
* Aderans Co. Ltd. 93,000 1,217
  Pal Co. Ltd. 23,700 1,210
  KEY Coffee Inc. 61,700 1,200
^ Digital Garage Inc. 619 1,194
  Okamoto Industries Inc. 305,000 1,188
  Tokyo Tomin Bank Ltd. 137,800 1,186
  Torii Pharmaceutical Co. Ltd. 53,400 1,182
^ Toho Titanium Co. Ltd. 132,900 1,182
* Furukawa Co. Ltd. 1,324,000 1,178
  Sanyo Shokai Ltd. 398,000 1,172
^ Topcon Corp. 246,300 1,169
^ Starbucks Coffee Japan Ltd. 1,659 1,168
^,* Fujiya Co. Ltd. 470,000 1,166
  Sato Holdings Corp. 83,300 1,159
  Nihon M&A Center Inc. 38,400 1,154

 

54


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Ohsho Food Service Corp. 47,700 1,154
* Ulvac Inc. 181,400 1,148
Tecmo Koei Holdings Co. Ltd. 140,300 1,148
Kanamoto Co. Ltd. 94,000 1,147
Higashi-Nippon Bank Ltd. 529,000 1,141
OBIC Business Consultants Ltd. 21,550 1,139
CKD Corp. 222,900 1,137
Nagaileben Co. Ltd. 77,200 1,134
Showa Sangyo Co. Ltd. 337,000 1,127
Totetsu Kogyo Co. Ltd. 98,000 1,123
France Bed Holdings Co. Ltd. 529,000 1,122
Honeys Co. Ltd. 70,120 1,117
Cosel Co. Ltd. 85,700 1,107
* Unitika Ltd. 2,205,000 1,104
Ai Holdings Corp. 172,800 1,100
CREATE SD HOLDINGS Co. Ltd. 41,300 1,099
Nitto Kohki Co. Ltd. 48,500 1,096
^ Maruwa Co. Ltd. 37,043 1,091
Nippon Road Co. Ltd. 295,000 1,090
^ Melco Holdings Inc. 52,100 1,087
Yokohama Reito Co. Ltd. 160,100 1,087
DTS Corp. 78,500 1,084
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. 258,000 1,083
^ Macromill Inc. 88,000 1,076
Nippon Signal Co. Ltd. 191,600 1,074
Itochu Enex Co. Ltd. 205,000 1,072
Hibiya Engineering Ltd. 94,900 1,071
Bank of Saga Ltd. 487,000 1,068
Pack Corp. 59,800 1,063
Toa Corp. 742,000 1,061
Mani Inc. 28,500 1,058
Takamatsu Construction Group Co. Ltd. 64,600 1,058
Ministop Co. Ltd. 62,600 1,056
Sakai Chemical Industry Co. Ltd. 392,000 1,056
Mikuni Coca-Cola Bottling Co. Ltd. 126,700 1,053
Fujicco Co. Ltd. 82,000 1,052
BML Inc. 41,600 1,049
TV Asahi Corp. 80,600 1,039
Kinugawa Rubber Industrial Co. Ltd. 177,000 1,035
Eizo Nanao Corp. 65,900 1,034
Nissin Electric Co. Ltd. 178,000 1,030
Pilot Corp. 571 1,027
Mitsui Sugar Co. Ltd. 318,000 1,025
Daihen Corp. 380,000 1,018
Nichiha Corp. 94,700 1,017
Riso Kagaku Corp. 62,500 1,014
Kyoei Steel Ltd. 64,900 1,012
Towa Bank Ltd. 1,016,000 1,005
Tokyu Livable Inc. 76,900 1,001
Bando Chemical Industries Ltd. 328,000 999
Nippon Thompson Co. Ltd. 288,000 996
Nippon Sharyo Ltd. 274,000 996
Sanki Engineering Co. Ltd. 215,000 994
Noritake Co. Ltd. 424,000 989
J-Oil Mills Inc. 381,000 988
* OncoTherapy Science Inc. 605 983
Kasumi Co. Ltd. 150,000 979
Nippon Ceramic Co. Ltd. 73,000 977
Descente Ltd. 167,000 977
Funai Electric Co. Ltd. 72,300 977
Yorozu Corp. 65,700 975
T-Gaia Corp. 101,200 973
* Ishihara Sangyo Kaisha Ltd. 1,252,000 972
Toridoll.corp 64,500 972

 

55


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Tsukuba Bank Ltd. 302,500 970
  Goldcrest Co. Ltd. 64,520 970
  Ryobi Ltd. 475,000 967
  Koa Corp. 122,600 959
  San-Ai Oil Co. Ltd. 218,000 956
  Yachiyo Bank Ltd. 53,500 955
  Yellow Hat Ltd. 71,000 953
  Chudenko Corp. 106,800 951
  Kyokuto Kaihatsu Kogyo Co. Ltd. 113,100 942
  Nittetsu Mining Co. Ltd. 233,000 937
* Mitsubishi Paper Mills Ltd. 1,094,000 932
  Taihei Dengyo Kaisha Ltd. 143,000 924
^,* Daiei Inc. 488,200 924
  Okabe Co. Ltd. 146,300 922
^ Kumiai Chemical Industry Co. Ltd. 203,000 920
  Japan Pulp & Paper Co. Ltd. 307,000 915
  Sumikin Bussan Corp. 373,000 912
  kabu.com Securities Co. Ltd. 329,900 911
  Tokai Corp. 36,700 905
  Osaka Steel Co. Ltd. 54,500 902
^ Asahi Co. Ltd. 59,900 901
  Toyo Tanso Co. Ltd. 47,300 897
  Ryoyo Electro Corp. 89,800 897
  Mie Bank Ltd. 421,000 897
  JSP Corp. 69,200 896
  Prima Meat Packers Ltd. 496,000 895
  Achilles Corp. 692,000 893
^ Atom Corp. 176,200 892
  Mars Engineering Corp. 37,400 891
^ Weathernews Inc. 26,861 890
  Toenec Corp. 162,000 889
  Sanyo Denki Co. Ltd. 164,000 889
  Oyo Corp. 73,000 887
  Nippon Denko Co. Ltd. 376,000 881
  Gulliver International Co. Ltd. 22,950 879
  Nihon Nohyaku Co. Ltd. 198,000 878
  Katakura Industries Co. Ltd. 101,600 878
  TPR Co. Ltd. 78,400 878
  Iino Kaiun Kaisha Ltd. 307,200 877
^ Ringer Hut Co. Ltd. 68,500 875
  Tokyu Community Corp. 24,300 872
  Mitsuba Corp. 137,000 869
  Fuso Pharmaceutical Industries Ltd. 269,000 869
* Hitachi Cable Ltd. 660,000 867
* Toko Inc. 377,000 865
  Aiphone Co. Ltd. 49,600 860
  Idec Corp. 109,400 859
  Organo Corp. 145,000 856
  Sanshin Electronics Co. Ltd. 113,500 853
  Pacific Industrial Co. Ltd. 145,000 852
  Arcland Sakamoto Co. Ltd. 58,600 849
  Mitsubishi Steel Manufacturing Co. Ltd. 497,000 848
  Sinanen Co. Ltd. 198,000 846
* Chiba Kogyo Bank Ltd. 168,400 845
^ Fields Corp. 58,600 844
* Futaba Industrial Co. Ltd. 224,100 842
  Daido Metal Co. Ltd. 123,000 842
  Yokogawa Bridge Holdings Corp. 115,000 837
  Mitsuuroko Holdings Co. Ltd. 128,300 836
  Aisan Industry Co. Ltd. 109,600 834
  Dwango Co. Ltd. 499 825
^,* Nissha Printing Co. Ltd. 107,432 821
  Siix Corp. 55,600 820
  Furukawa-Sky Aluminum Corp. 348,000 816

 

56


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Nippon Valqua Industries Ltd. 304,000 816
  Nichiden Corp. 30,100 812
  Kaga Electronics Co. Ltd. 89,000 811
^ Ichibanya Co. Ltd. 25,000 803
  Tokyotokeiba Co. Ltd. 538,000 802
  Toyo Kanetsu KK 412,000 801
  Kamei Corp. 92,000 795
  Tocalo Co. Ltd. 54,400 791
  Nippon Koei Co. Ltd. 240,000 784
^,* Clarion Co. Ltd. 500,000 782
* Mitsui High-Tec Inc. 105,100 781
  NEC Fielding Ltd. 66,400 780
  Iida Home Max 87,500 772
  Matsuda Sangyo Co. Ltd. 57,900 770
  Nippon Carbon Co. Ltd. 451,000 769
  Hosokawa Micron Corp. 139,000 769
  Itochu-Shokuhin Co. Ltd. 21,000 768
  Marusan Securities Co. Ltd. 247,900 766
^ COOKPAD Inc. 24,800 765
^ Access Co. Ltd. 1,139 764
  Japan Digital Laboratory Co. Ltd. 73,300 764
  Kyoritsu Maintenance Co. Ltd. 35,600 762
  Kyudenko Corp. 168,000 760
  Bunka Shutter Co. Ltd. 178,000 760
  Nippon Beet Sugar Manufacturing Co. Ltd. 396,000 759
  C Uyemura & Co. Ltd. 23,000 757
  SWCC Showa Holdings Co. Ltd. 1,060,000 757
  Ines Corp. 117,300 748
  Asahi Organic Chemicals Industry Co. Ltd. 316,000 748
^ Nuflare Technology Inc. 98 746
  Macnica Inc. 37,800 745
  Senshukai Co. Ltd. 118,200 745
  Fujita Kanko Inc. 229,000 739
  Nishio Rent All Co. Ltd. 62,000 737
  Icom Inc. 35,100 734
  Tenma Corp. 73,800 732
^ Axell Corp. 29,800 731
^ Goldwin Inc. 119,000 729
* Nippon Chemi-Con Corp. 501,000 729
  Daiso Co. Ltd. 263,000 729
  Godo Steel Ltd. 488,000 728
  Daiichi Jitsugyo Co. Ltd. 173,000 724
^ Harmonic Drive Systems Inc. 36,600 721
  Sinfonia Technology Co. Ltd. 432,000 720
  Shinko Shoji Co. Ltd. 83,200 720
  Tsutsumi Jewelry Co. Ltd. 31,100 714
  Denyo Co. Ltd. 66,700 707
  Ichiyoshi Securities Co. Ltd. 135,200 707
  Nafco Co. Ltd. 41,800 707
  Atsugi Co. Ltd. 610,000 696
  Proto Corp. 42,200 695
  Shikoku Chemicals Corp. 128,000 695
^ Chugai Ro Co. Ltd. 259,000 694
  Taihei Kogyo Co. Ltd. 174,000 693
  Yushin Precision Equipment Co. Ltd. 39,300 689
  Hitachi Medical Corp. 56,000 688
  Systena Corp. 796 687
  Stella Chemifa Corp. 36,100 678
^ Daikokutenbussan Co. Ltd. 21,300 677
  Tsukishima Kikai Co. Ltd. 80,000 677
  Nihon Dempa Kogyo Co. Ltd. 62,300 676
^ GCA Savvian Group Corp. 567 674
  Toyo Construction Co. Ltd. 220,800 673
^,* Fudo Tetra Corp. 509,200 671

 

57


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Tokyu Construction Co. Ltd. 366,290 670
  Union Tool Co. 44,200 669
  Mitsui Matsushima Co. Ltd. 471,571 668
  Nissin Corp. 268,000 665
^ Japan Drilling Co. Ltd. 22,900 663
  Belluna Co. Ltd. 89,350 663
  Neturen Co. Ltd. 107,500 656
  Dunlop Sports Co. Ltd. 51,371 655
  Takiron Co. Ltd. 183,000 653
^,* SxL Corp. 410,000 649
  Nihon Yamamura Glass Co. Ltd. 312,000 649
  Mitsui Home Co. Ltd. 132,000 644
  Sodick Co. Ltd. 169,200 643
  Kanto Natural Gas Development Ltd. 121,000 640
^ Keiyo Co. Ltd. 119,400 637
  Shindengen Electric Manufacturing Co. Ltd. 274,000 636
  Touei Housing Corp. 59,600 634
  Chuetsu Pulp & Paper Co. Ltd. 372,000 634
  Konaka Co. Ltd. 63,400 626
^,* Skymark Airlines Inc. 117,800 626
^ Juki Corp. 509,000 625
  Uniden Corp. 265,000 619
  Kyodo Printing Co. Ltd. 275,000 617
  Hisaka Works Ltd. 87,000 605
  Kyosan Electric Manufacturing Co. Ltd. 185,000 603
  Paris Miki Holdings Inc. 109,900 597
  Shin-Etsu Polymer Co. Ltd. 179,000 597
  ST Corp. 53,600 593
  SMK Corp. 235,000 589
  Eagle Industry Co. Ltd. 94,000 588
  Gurunavi Inc. 52,800 585
  Matsuya Foods Co. Ltd. 32,300 585
^ Sumitomo Seika Chemicals Co. Ltd. 166,000 580
  Maruetsu Inc. 175,000 577
  Nohmi Bosai Ltd. 91,000 576
  Tamura Corp. 262,000 574
  NEC Capital Solutions Ltd. 40,900 574
  Japan Cash Machine Co. Ltd. 66,700 569
  Information Services International-Dentsu Ltd. 65,100 568
* Nippon Yakin Kogyo Co. Ltd. 636,000 566
^,* Takaoka Toko Holdings Co. Ltd. 38,500 564
  Pronexus Inc. 96,000 564
  Yusen Logistics Co. Ltd. 66,400 562
  Nippon Steel Trading Co. Ltd. 240,000 560
  T RAD Co. Ltd. 244,000 557
  Taiho Kogyo Co. Ltd. 57,500 557
  Corona Corp. 44,900 553
  Kura Corp. 39,700 553
^ Dai-ichi Seiko Co. Ltd. 40,400 553
  CMK Corp. 168,700 551
  Obara Group Inc. 50,100 549
  Koatsu Gas Kogyo Co. Ltd. 105,000 546
  S Foods Inc. 58,500 546
  Seika Corp. 209,000 545
  GMO Payment Gateway Inc. 33,400 541
^ Nissen Holdings Co. Ltd. 137,600 537
  Maruzen Showa Unyu Co. Ltd. 184,000 537
  Hioki EE Corp. 31,300 534
  Dai Nippon Toryo Co. Ltd. 504,000 531
  CMIC Holdings Co. Ltd. 34,700 530
  JCR Pharmaceuticals Co. Ltd. 45,400 529
  Uchida Yoko Co. Ltd. 194,000 527
  Yurtec Corp. 156,000 523
  Daisyo Corp. 41,500 521

 

58


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Takihyo Co. Ltd. 101,000 520
* NS United Kaiun Kaisha Ltd. 477,000 520
  Cleanup Corp. 78,700 516
^ Tokyo Rope Manufacturing Co. Ltd. 466,000 514
  Daiwa Industries Ltd. 121,000 514
  Daiken Corp. 233,000 514
  Nice Holdings Inc. 237,000 511
  Yonekyu Corp. 61,900 503
  Kinki Sharyo Co. Ltd. 156,000 503
  Bit-isle Inc. 54,000 502
^ Osaki Electric Co. Ltd. 93,000 499
  Nippon Kanzai Co. Ltd. 26,800 497
  Shibusawa Warehouse Co. Ltd. 171,000 495
  Aichi Corp. 123,300 492
* Jeol Ltd. 236,000 491
  Toho Real Estate Co. Ltd. 89,800 491
^ Mixi Inc. 286 483
  Daidoh Ltd. 84,600 483
  Yomiuri Land Co. Ltd. 152,000 480
  Airport Facilities Co. Ltd. 103,800 479
  Chori Co. Ltd. 43,700 478
  Sanoh Industrial Co. Ltd. 80,400 474
  Shimojima Co. Ltd. 40,900 474
  AOC Holdings Inc. 137,400 472
  Mitsubishi Research Institute Inc. 21,000 467
  Namura Shipbuilding Co. Ltd. 156,100 465
  Chiyoda Integre Co. Ltd. 44,600 460
  Hakuto Co. Ltd. 50,100 456
  Roland Corp. 68,000 456
  Mimasu Semiconductor Industry Co. Ltd. 57,400 451
  Torishima Pump Manufacturing Co. Ltd. 64,500 451
  ASKA Pharmaceutical Co. Ltd. 86,000 448
^,* Japan Radio Co. Ltd. 194,000 445
  Tohokushinsha Film Corp. 63,000 442
  Toyo Kohan Co. Ltd. 177,000 442
^ Meiko Electronics Co. Ltd. 56,900 441
  Roland DG Corp. 40,800 440
  Sumitomo Precision Products Co. Ltd. 104,000 440
  Tokyo Energy & Systems Inc. 101,000 440
  Gun-Ei Chemical Industry Co. Ltd. 180,000 437
  Nidec Copal Electronics Corp. 83,900 429
  Alpha Systems Inc. 36,300 429
  Pasona Group Inc. 694 428
  Yahagi Construction Co. Ltd. 100,000 426
^ Ferrotec Corp. 108,200 426
  Simplex Holdings Inc. 1,375 419
  Gakken Holdings Co. Ltd. 152,000 417
  Future Architect Inc. 1,070 414
* Usen Corp. 394,890 411
  Sasebo Heavy Industries Co. Ltd. 443,000 394
  Onoken Co. Ltd. 48,700 389
^,* Daiichi Chuo KK 480,000 379
  Nippon Koshuha Steel Co. Ltd. 411,000 376
  Toyo Denki Seizo - Toyo Electric Manufacturing Co. Ltd. 136,000 373
^ New Japan Chemical Co. Ltd. 108,300 368
^ Otsuka Kagu Ltd. 37,500 367
  Psc Inc. 6,800 365
  Japan Vilene Co. Ltd. 84,000 357
^ MTI Ltd. 366 353
  Krosaki Harima Corp. 151,000 348
^ Nidec Copal Corp. 45,000 340
  Meito Sangyo Co. Ltd. 26,500 337
^,* FDK Corp. 412,000 330
  Sekisui Plastics Co. Ltd. 138,000 313

 

59


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Furuya Metal Co. Ltd. 11,400 310
^ Meiwa Corp. 76,500 304
^ Toda Kogyo Corp. 101,000 300
^ Parco Co. Ltd. 27,700 291
  Shinsho Corp. 158,000 281
  Kanto Denka Kogyo Co. Ltd. 178,000 281
^ Kojima Co. Ltd. 80,300 281
^,* Best Denki Co. Ltd. 187,000 260
  Nidec-Tosok Corp. 38,300 252
  Furuno Electric Co. Ltd. 63,800 248
^ Ohara Inc. 29,900 228
  Tv Tokyo Holdings Corp. 19,400 218
  Noritsu Koki Co. Ltd. 46,700 187
^,* Sparx Group Co. Ltd. 2,674 175
      10,416,269
Malaysia (0.9%)    
  Malayan Banking Bhd. 18,047,090 53,388
  CIMB Group Holdings Bhd. 21,006,600 52,499
  Sime Darby Bhd. 11,731,700 37,633
  Tenaga Nasional Bhd. 11,916,100 27,110
  Petronas Chemicals Group Bhd. 12,178,727 25,941
  Genting Bhd. 8,897,100 25,781
  Public Bank Bhd. (Foreign) 4,606,194 24,006
  Axiata Group Bhd. 11,096,300 23,749
  DiGi.Com Bhd. 13,472,200 23,440
  IOI Corp. Bhd. 13,975,186 23,168
  Maxis Bhd. 9,797,050 22,370
  Petronas Gas Bhd. 2,575,100 16,540
  Genting Malaysia Bhd. 12,888,200 15,164
  AMMB Holdings Bhd. 7,189,400 15,032
  Kuala Lumpur Kepong Bhd. 2,090,086 14,676
  YTL Corp. Bhd. 21,119,786 12,099
  Hong Leong Bank Bhd. 2,466,760 11,876
  British American Tobacco Malaysia Bhd. 500,300 10,368
* IHH Healthcare Bhd. 8,655,877 9,286
  Telekom Malaysia Bhd. 4,708,800 9,232
  PPB Group Bhd. 2,076,800 9,166
  Gamuda Bhd. 7,188,800 8,501
  IJM Corp. Bhd. 5,111,360 8,389
* Sapurakencana Petroleum Bhd. 9,690,641 7,962
  Petronas Dagangan Bhd. 1,076,900 7,794
  UMW Holdings Bhd. 2,297,200 7,486
  RHB Capital Bhd. 2,887,100 7,096
  Felda Global Ventures Holdings Bhd. 4,606,924 7,078
* MISC Bhd. 4,874,880 6,771
  Bumi Armada Bhd. 4,998,100 6,423
  Lafarge Malayan Cement Bhd. 1,806,100 5,780
  Alliance Financial Group Bhd. 4,314,700 5,756
  AirAsia Bhd. 5,336,600 5,297
  YTL Power International Bhd. 9,419,258 5,031
  Dialog Group Bhd. 6,221,060 4,891
* UEM Land Holdings Bhd. 6,583,303 4,561
  Malaysia Airports Holdings Bhd. 2,339,500 4,462
  Berjaya Sports Toto Bhd. 3,042,628 4,434
  Parkson Holdings Bhd. 2,634,139 4,186
  KPJ Healthcare Bhd. 1,998,400 3,954
  Hong Leong Financial Group Bhd. 914,300 3,865
  Multi-Purpose Holdings Bhd. 3,194,600 3,801
  Sunway REIT 7,520,300 3,776
  Malaysian Resources Corp. Bhd. 6,011,600 3,458
  Malaysia Marine and Heavy Engineering Holdings Bhd. 2,126,471 3,363
  KLCC Property Holdings Bhd. 1,643,700 3,202
  Kulim Malaysia Bhd. 1,935,800 3,178
  Genting Plantations Bhd. 980,900 2,888

 

60


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
IGB Corp. Bhd. 3,604,248 2,879
Bursa Malaysia Bhd. 1,382,900 2,859
Media Prima Bhd. 3,785,400 2,830
MMC Corp. Bhd. 3,190,600 2,724
DRB-Hicom Bhd. 3,242,700 2,632
Carlsberg Brewery Malaysia Bhd. 609,600 2,620
CapitaMalls Malaysia Trust 4,413,900 2,605
Top Glove Corp. Bhd. 1,425,000 2,499
SP Setia Bhd. 2,107,200 2,494
Berjaya Corp. Bhd. 11,398,700 2,390
WCT Bhd. 2,564,000 2,318
Time dotCom Bhd. 1,566,840 1,796
Pavilion REIT 3,663,500 1,657
* Sunway Bhd. 2,118,227 1,637
HAP Seng Consolidated Bhd. 2,991,700 1,598
TAN Chong Motor Holdings Bhd. 1,093,700 1,589
Mah Sing Group Bhd. 2,104,800 1,549
Affin Holdings Bhd. 1,372,200 1,523
Hartalega Holdings Bhd. 990,500 1,514
QL Resources Bhd. 1,414,680 1,470
Eastern & Oriental Bhd. 2,659,800 1,428
MSM Malaysia Holdings Bhd. 851,500 1,400
Media Chinese International Ltd. 2,547,300 1,376
IJM Land Bhd. 1,883,900 1,360
* Malaysian Airline System Bhd. 3,895,100 1,313
POS Malaysia Bhd. 1,316,800 1,303
Supermax Corp. Bhd. 1,886,100 1,248
IJM Plantations Bhd. 1,204,500 1,236
* QSR Brands Bhd. 553,200 1,193
* KFC Holdings Malaysia Bhd. 932,200 1,191
Malaysia Building Society 1,511,885 1,163
Sarawak Oil Palms Bhd. 544,600 1,113
UOA Development Bhd. 1,941,800 1,076
BIMB Holdings Bhd. 1,068,600 1,060
Aeon Credit Service M Bhd. 241,440 946
Tradewinds Malaysia Bhd. 370,200 890
TSH Resources Bhd. 1,139,200 889
OSK Holdings Bhd. 1,856,890 889
Hap Seng Plantations Holdings Bhd. 906,300 874
Kian JOO CAN Factory Bhd. 1,055,800 820
* KNM Group Bhd. 4,651,350 814
Padini Holdings Bhd. 1,205,100 809
APM Automotive Holdings Bhd. 504,500 805
Wah Seong Corp. Bhd. 1,305,200 748
Ta Ann Holdings Bhd. 598,320 745
MBM Resources Bhd. 626,960 699
Mudajaya Group Bhd. 748,666 655
JCY International Bhd. 2,648,400 650
TA Enterprise Bhd. 3,639,800 608
* Mulpha International Bhd. 4,462,300 599
Malaysian Bulk Carriers Bhd. 1,254,100 596
Benalec Holdings Bhd. 1,272,500 588
Rimbunan Sawit Bhd. 1,873,400 576
Unisem M Bhd. 1,640,500 547
Dayang Enterprise Holdings Bhd. 717,700 534
Lion Industries Corp. Bhd. 1,523,300 529
* Perisai Petroleum Teknologi Bhd. 1,560,300 526
TH Plantations Bhd. 692,200 524
Kossan Rubber Industries 523,600 524
United Malacca Bhd. 222,700 523
* Scomi Group Bhd. 3,802,200 510
* Hibiscus Petroleum Bhd. 935,900 478
Press Metal Bhd. 833,300 475
CB Industrial Product Holding Bhd. 504,000 450

 

61


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Lingui Development Bhd. 837,000 448
  Latexx Partners Bhd. 592,400 443
  Malayan Flour Mills Bhd. 985,900 443
  Hai-O Enterprise Bhd. 558,500 407
  Tradewinds Corp. Bhd. 1,200,500 401
  Eversendai Corp. Bhd. 804,800 380
  Hock Seng LEE Bhd. 713,898 369
  Muhibbah Engineering M Bhd. 1,202,700 364
  TDM Bhd. 309,800 360
  Faber Group Bhd. 715,200 342
* KSK Group Bhd. 1,526,500 342
  WTK Holdings Bhd. 893,500 307
* YTL Land & Development Bhd. 870,100 276
  Ann Joo Resources Bhd. 509,000 247
  TA Global Bhd. 2,933,300 245
  CSC Steel Holdings Bhd. 602,100 241
  Petron Malaysia Refining & Marketing Bhd. 251,100 239
  Coastal Contracts Bhd. 368,133 230
* Malaysia Building Society Warrants Exp. 05/31/2016 489,785 227
  Malaysian Pacific Industries Bhd. 261,100 226
  ECM Libra Financial Group Bhd. 759,500 221
  YTL E-Solutions Bhd. 877,000 210
  Paramount Corp. Bhd. 411,600 204
  Uchi Technologies Bhd. 523,900 199
* Kinsteel Bhd. 1,438,300 186
* Landmarks Bhd. 597,800 185
* Alam Maritim Resources Bhd. 756,100 179
  Naim Holdings Bhd. 266,600 174
  Masterskill Education Group Bhd. 720,600 172
  Kim Loong Resources Bhd. 217,700 161
* Puncak Niaga Holding Bhd. 297,200 129
*,2 Astro Malaysia Holdings Bhd. 68,100 61
* Dialog Group Bhd. Warrants Exp. 02/12/2017 441,280 59
* Kulim Malaysia Bhd. Warrants Exp. 02/27/2016 165,750 58
  Public Bank Bhd. (Local) 8,900 46
* WCT Bhd. Warrants Exp. 02/24/2016 288,480 43
* Sunway Bhd. Warrants Exp. 08/17/2016 341,245 43
* Hartalega Holdings Bhd. Warrants Exp. 05/29/2015 72,940 27
* MBM Resources Bhd. Warrants Exp. 06/14/2017 88,380 6
* Coastal Contracts Bhd. Warrants Exp. 07/18/2016 46,016 5
* QL Resources Bhd. Warrants Exp. 02/13/2013 34,224 1
      695,276
Mexico (1.1%)    
  America Movil SAB de CV 169,984,269 215,888
  Fomento Economico Mexicano SAB de CV 8,452,317 76,119
  Wal-Mart de Mexico SAB de CV 23,134,687 68,323
  Grupo Mexico SAB de CV Class B 16,635,465 53,309
  Grupo Televisa SAB 11,153,283 50,698
  Grupo Financiero Banorte SAB de CV 8,087,383 44,933
* Cemex SAB de CV 46,099,340 41,790
  Industrias Penoles SAB de CV 604,533 30,118
  Grupo Modelo SAB de CV 2,741,037 24,157
  Coca-Cola Femsa SAB de CV 1,865,204 23,907
  Grupo Financiero Inbursa SAB de CV 8,653,947 23,046
  Alfa SAB de CV Class A 12,310,000 22,704
  Mexichem SAB de CV 4,437,545 21,991
  Grupo Financiero Santander Mexico SAB de CV Class B 6,501,865 17,732
  Grupo Bimbo SAB de CV Class A 7,153,215 16,662
  Kimberly-Clark de Mexico SAB de CV Class A 6,776,431 16,271
* Minera Frisco SAB de CV 2,726,681 10,851
  Arca Continental SAB de CV 1,378,378 10,001
  Grupo Carso SAB de CV 2,487,608 9,003
  Grupo Aeroportuario del Sureste SAB de CV Class B 897,791 8,702
  El Puerto de Liverpool SAB de CV 800,960 7,178

 

62


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Grupo Aeroportuario del Pacifico SAB de CV Class B 1,466,600 7,026
* Genomma Lab Internacional SAB de CV Class B 3,145,101 6,269
Compartamos SAB de CV 4,436,274 5,953
* Empresas ICA SAB de CV 2,567,113 5,515
* Industrias CH SAB de CV Class B 731,744 4,228
TV Azteca SAB de CV 4,278,824 2,689
* Corp GEO SAB de CV 2,116,257 2,544
* Alsea SAB de CV 1,483,306 2,379
Grupo Aeroportuario del Pacifico SAB de CV ADR 48,526 2,311
* Gruma SAB de CV Class B 735,700 2,147
* Desarrolladora Homex SAB de CV 924,700 2,040
Bolsa Mexicana de Valores SAB de CV 880,852 1,950
* Grupo Simec SAB de CV Class B 438,810 1,748
Grupo Aeroportuario del Centro Norte Sab de CV 699,757 1,667
Grupo Herdez SAB de CV 543,616 1,473
* Urbi Desarrollos Urbanos SAB de CV 2,187,000 1,365
* Consorcio ARA SAB de CV 3,511,866 1,102
* Grupo Aeromexico SAB de CV 630,178 1,007
* Grupo Famsa SAB de CV Class A 791,771 941
* Axtel SAB de CV 3,016,258 677
Cia Minera Autlan SAB de CV Class B 187,000 186
    848,600
Morocco (0.0%)    
Maroc Telecom SA 49,896 629
Douja Promotion Groupe Addoha SA 84,813 613
Attijariwafa Bank 15,081 569
    1,811
Netherlands (1.7%)    
Unilever NV 7,085,714 260,435
* ING Groep NV 16,667,417 148,310
Koninklijke Philips Electronics NV 4,517,166 113,138
ASML Holding NV 1,824,481 100,297
Heineken NV 1,001,545 61,809
Koninklijke Ahold NV 4,548,301 57,921
Akzo Nobel NV 1,021,934 55,622
Aegon NV 7,479,644 41,831
Reed Elsevier NV 2,990,457 40,143
Koninklijke DSM NV 669,947 34,452
* DE Master Blenders 1753 NV 2,569,361 31,514
Koninklijke KPN NV 4,347,122 27,403
Wolters Kluwer NV 1,308,396 25,314
Heineken Holding NV 436,434 22,174
Koninklijke Vopak NV 304,557 21,204
Fugro NV 300,976 20,368
Randstad Holding NV 521,358 17,046
TNT Express NV 1,446,627 15,244
Corio NV 278,355 12,400
Koninklijke Boskalis Westminster NV 317,078 12,094
Nutreco NV 151,294 11,333
Delta Lloyd NV 605,645 10,072
* SBM Offshore NV 744,819 9,750
Royal Imtech NV 304,569 7,656
Aalberts Industries NV 403,323 7,331
PostNL NV 1,793,743 7,079
Eurocommercial Properties NV 167,819 6,581
CSM 294,339 6,012
ASM International NV 185,464 5,872
Arcadis NV 254,739 5,442
Wereldhave NV 88,274 5,218
Tetragon Financial Group Ltd. 496,805 4,471
Vastned Retail NV 82,409 3,818
Mediq NV 232,337 3,771
Koninklijke BAM Groep NV 976,855 3,636
TKH Group NV 148,278 3,392

 

63


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Unit4 NV 113,099 3,106
  Sligro Food Group NV 111,859 3,045
  Koninklijke Ten Cate NV 114,050 2,528
  Brunel International NV 42,977 2,072
^,* TomTom NV 410,491 2,050
  Nieuwe Steen Investments NV 233,403 2,018
  USG People NV 281,789 1,979
  BinckBank NV 233,561 1,872
  Beter Bed Holding NV 77,416 1,431
  Exact Holding NV 57,952 1,301
  Accell Group 77,856 1,284
  Amsterdam Commodities NV 65,445 1,180
^,* SNS REAAL NV 672,039 990
* AMG Advanced Metallurgical Group NV 123,797 971
  BE Semiconductor Industries NV 133,673 902
  Koninklijke Wessanen NV 300,380 849
* Grontmij 223,806 843
  Kendrion NV 38,608 780
  KAS Bank NV 44,419 446
^,* Kardan NV 159,996 166
  Aegon NV 922 5
      1,249,971
New Zealand (0.1%)    
  Telecom Corp. of New Zealand Ltd. 8,259,974 16,329
  Fletcher Building Ltd. 2,727,545 15,776
  Auckland International Airport Ltd. 4,022,296 8,873
  SKYCITY Entertainment Group Ltd. 2,530,443 8,071
  Contact Energy Ltd. 1,611,480 7,338
  Chorus Ltd. 1,683,647 4,677
  Ryman Healthcare Ltd. 1,317,851 4,387
  Fisher & Paykel Healthcare Corp. Ltd. 2,244,178 4,336
  Infratil Ltd. 2,243,451 4,169
  Sky Network Television Ltd. 769,011 3,396
  Kiwi Income Property Trust 3,489,259 3,355
  Mainfreight Ltd. 382,112 3,345
  Goodman Property Trust 3,679,290 3,206
  Trade Me Ltd. 867,261 3,058
  Precinct Properties New Zealand Ltd. 3,500,278 2,978
* Fisher & Paykel Appliances Holdings Ltd. 2,413,417 2,531
  Vector Ltd. 1,063,847 2,378
  Freightways Ltd. 599,957 2,111
  Nuplex Industries Ltd. 772,345 1,917
  Air New Zealand Ltd. 1,501,175 1,529
^ Fletcher Building Ltd. 240,759 1,393
  Warehouse Group Ltd. 464,990 1,204
  New Zealand Oil & Gas Ltd. 1,411,467 1,003
* PGG Wrightson Ltd. 2,067,999 577
      107,937
Norway (0.8%)    
  Statoil ASA 4,851,683 119,492
  Seadrill Ltd. 1,530,587 62,020
  Telenor ASA 3,148,500 61,925
  DNB ASA 4,257,704 53,228
  Yara International ASA 814,833 38,402
  Subsea 7 SA 1,221,164 26,770
  Orkla ASA 3,367,199 26,674
  Norsk Hydro ASA 4,044,202 18,207
  Petroleum Geo-Services ASA 948,613 16,392
  TGS Nopec Geophysical Co. ASA 448,906 15,253
  Aker Solutions ASA 718,708 14,163
  Gjensidige Forsikring ASA 865,672 12,641
  Schibsted ASA 329,907 12,347
* Marine Harvest ASA 12,482,737 9,794
  ProSafe SE 1,003,839 8,348

 

64


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Storebrand ASA 1,462,170 7,358
  Fred Olsen Energy ASA 145,022 6,791
  Tomra Systems ASA 647,356 5,318
^,* DNO International ASA 2,793,804 4,884
  Aker ASA 111,267 3,929
* Det Norske Oljeselskap ASA 243,094 3,745
^,* Algeta ASA 130,106 3,499
  Cermaq ASA 238,365 3,262
  Atea ASA 289,010 3,062
^ SpareBank 1 SMN 426,603 2,764
  Norwegian Property ASA 1,770,644 2,657
  Stolt-Nielsen Ltd. 120,007 2,200
* Norwegian Air Shuttle AS 90,407 1,954
  Austevoll Seafood ASA 404,261 1,914
^,* Dockwise Ltd. 116,716 1,867
  Leroey Seafood Group ASA 88,063 1,815
  Kvaerner ASA 690,208 1,752
^,* Northland Resources SA 2,211,440 1,739
  Opera Software ASA 304,632 1,677
* Clavis Pharma ASA 125,365 1,488
* Polarcus Ltd. 1,424,349 1,476
^,* Nordic Semiconductor ASA 502,776 1,450
  Pronova BioPharma ASA 706,059 1,397
* Hoegh LNG Holdings Ltd. 156,444 1,151
* Electromagnetic GeoServices AS 512,558 1,117
^,* Renewable Energy Corp. ASA 5,473,168 959
  Northern Offshore Ltd. 490,615 893
^,* Sevan Drilling AS 1,110,052 860
* Golden Ocean Group Ltd. 1,113,780 843
  Bakkafrost P/F 95,577 813
^,* Frontline Ltd. 255,392 801
^,* Archer Ltd. 605,329 800
  BW Offshore Ltd. 1,357,957 799
^,* Songa Offshore SE 529,482 650
* Panoro Energy ASA 911,600 629
* BWG Homes ASA 300,729 615
* Eltek ASA 884,897 590
  Copeinca ASA 76,030 590
^,* Norwegian Energy Co. AS 797,698 509
* Deep Sea Supply plc 323,418 493
^,* Morpol ASA 274,286 435
* Hurtigruten ASA 736,557 390
      577,591
Peru (0.2%)    
  Credicorp Ltd. 153,371 19,837
  Southern Copper Corp. 511,021 19,470
  Cia de Minas Buenaventura SA ADR 537,207 19,210
  Credicorp Ltd. 141,272 18,139
  Cia de Minas Buenaventura SA 289,871 10,291
  Volcan Cia Minera SAA Class B 8,789,567 8,581
  Southern Copper Corp. 215,534 8,223
* Rio Alto Mining Ltd. 719,983 4,068
  Ferreycorp SAA 3,332,791 2,765
  Casa Grande SAA 153,606 859
  Refineria La Pampilla SA Relapasa 2,087,365 531
  Corp Aceros Arequipa SA 785,992 340
* Cia Minera Atacocha SA Class B 1,616,341 218
      112,532
Philippines (0.2%)    
  SM Investments Corp. 929,050 18,096
  Ayala Land Inc. 23,661,120 13,524
  Philippine Long Distance Telephone Co. 186,345 11,959
  SM Prime Holdings Inc. 29,823,200 10,482
  Aboitiz Equity Ventures Inc. 8,312,700 9,728

 

65


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  BDO Unibank Inc. 6,130,319 9,512
  Ayala Corp. 756,844 8,124
  Universal Robina Corp. 3,780,660 6,593
  Alliance Global Group Inc. 17,605,041 6,349
  Aboitiz Power Corp. 7,894,823 6,341
  Bank of the Philippine Islands 3,031,661 5,954
  International Container Terminal Services Inc. 3,310,020 5,698
  San Miguel Corp. 2,054,817 5,436
  Energy Development Corp. 32,518,000 5,265
  Manila Electric Co. 674,663 4,570
  Jollibee Foods Corp. 1,751,820 4,495
  DMCI Holdings Inc. 3,419,340 4,478
  Globe Telecom Inc. 141,815 3,919
  Security Bank Corp. 844,860 3,317
  Robinsons Land Corp. 7,100,534 3,274
  Puregold Price Club Inc. 4,085,100 2,966
* First Gen Corp. 5,136,800 2,786
  Megaworld Corp. 44,637,000 2,648
* Belle Corp. 18,651,108 2,430
  Manila Water Co. Inc. 3,131,300 2,203
  Metropolitan Bank & Trust 904,832 2,086
  First Philippine Holdings Corp. 947,740 1,987
  Rizal Commercial Banking Corp. 1,383,240 1,540
* Philippine National Bank 872,680 1,526
  Vista Land & Lifescapes Inc. 12,324,250 1,435
  Filinvest Land Inc. 38,599,000 1,366
* Atlas Consolidated Mining & Development 3,009,800 1,298
  Cebu Air Inc. 915,960 1,272
  SM Development Corp. 7,299,853 1,105
  Nickel Asia Corp. 2,611,050 1,085
  Lopez Holdings Corp. 7,486,770 990
* Philex Petroleum Corp. 1,384,000 856
* Lepanto Consolidated Mining 28,196,000 813
  Philweb Corp. 1,877,280 638
* Global-Estate Resorts Inc. 6,361,000 293
      178,437
Poland (0.3%)    
  Powszechna Kasa Oszczednosci Bank Polski SA 3,255,761 36,394
^ KGHM Polska Miedz SA 609,229 30,702
  Powszechny Zaklad Ubezpieczen SA 244,366 28,585
^ Bank Pekao SA 515,057 24,741
^,* Polski Koncern Naftowy Orlen SA 1,392,287 19,082
  PGE SA 3,263,068 17,705
^ Telekomunikacja Polska SA 3,190,479 12,099
^,* Polskie Gornictwo Naftowe i Gazownictwo SA 7,595,448 9,409
  Tauron Polska Energia SA 4,552,026 6,296
^,* BRE Bank SA 64,434 6,089
^ Lubelski Wegiel Bogdanka SA 146,493 5,516
^,* Kernel Holding SA 224,188 4,687
^ Jastrzebska Spolka Weglowa SA 169,353 4,615
^ Synthos SA 2,516,947 4,197
  Bank Handlowy w Warszawie SA 139,887 4,082
^,* Cyfrowy Polsat SA 831,050 3,771
  Eurocash SA 305,259 3,745
^ Asseco Poland SA 297,113 3,723
* Globe Trade Centre SA 1,325,143 3,415
* Get Bank SA 6,116,061 3,196
* Grupa Lotos SA 288,928 3,053
^,* Bank Millennium SA 1,796,642 2,380
* Zaklady Azotowe w Tarnowie-Moscicach SA 153,238 2,312
  Enea SA 476,265 2,301
^,* Netia SA 1,165,433 2,121
^ TVN SA 706,657 1,549
  Warsaw Stock Exchange 110,442 1,298

 

66


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Ciech SA 140,150 934
^,* Getin Holding SA 1,288,919 930
^,* Bioton SA 27,647,071 779
  Budimex SA 45,450 772
* Kopex SA 112,928 686
^,* Boryszew SA 4,096,085 680
* Rafako SA 198,033 542
* Impexmetal SA 471,474 536
* KRUK SA 38,408 526
* Rovese SA 681,922 514
  Agora SA 179,985 479
* Alchemia SA 292,598 473
  Narodowy Fundusz Inwestycyjny Midas SA 2,108,100 458
^,* Polimex-Mostostal SA 2,081,360 367
* LC Corp. SA 881,597 317
* Polimex-Mostostal SA Rights 2,081,360 26
      256,082
Portugal (0.1%)    
  EDP - Energias de Portugal SA 8,260,296 22,453
  Jeronimo Martins SGPS SA 957,399 16,760
  Galp Energia SGPS SA 1,005,049 16,089
  Portugal Telecom SGPS SA 2,771,105 13,935
* Banco Espirito Santo SA 8,822,697 8,587
^,* Banco Comercial Portugues SA 46,782,879 4,254
^ Sonae 3,487,218 2,589
  Portucel Empresa Produtora de Pasta e Papel SA 837,512 2,336
^ Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA 689,898 2,189
^,* Banco BPI SA 1,777,561 1,982
  Semapa-Sociedade de Investimento e Gestao 248,185 1,757
  REN - Redes Energeticas Nacionais SGPS SA 541,831 1,398
  Altri SGPS SA 493,902 871
  Sonaecom - SGPS SA 405,499 737
  Mota-Engil SGPS SA 316,517 536
      96,473
Russia (1.2%)    
  Gazprom OAO ADR 13,204,143 121,280
  Sberbank of Russia 37,855,154 111,153
  Gazprom OAO 19,930,014 92,150
  Lukoil OAO ADR 1,353,958 82,169
  Lukoil OAO 860,133 52,221
  NovaTek OAO GDR 395,189 45,247
  Uralkali OJSC 5,708,751 45,025
  Magnit OJSC GDR 1,130,986 40,269
  Mobile Telesystems OJSC ADR 2,224,823 38,133
  MMC Norilsk Nickel OJSC 204,381 31,473
  Tatneft OAO ADR 672,828 26,163
  Rosneft OAO GDR 3,511,419 26,091
  Rostelecom OJSC 5,063,090 19,937
  VTB Bank OJSC GDR 5,591,670 19,365
  Surgutneftegas OAO ADR 2,113,883 18,498
  Surgutneftegas OAO Prior Pfd. 29,802,637 18,435
  Rosneft OAO 1,995,766 14,807
  Federal Hydrogenerating Co. JSC 550,346,352 13,522
  AK Transneft OAO Prior Pfd. 6,651 13,327
  Tatneft OAO 2,079,755 13,094
  Sistema JSFC GDR 517,537 9,529
  Sberbank of Russia Prior Pfd. 4,258,901 8,974
* Federal Grid Co. Unified Energy System JSC 1,352,942,440 8,821
  Surgutneftegas OAO 9,656,036 8,383
* Inter Rao Ues OAO 8,460,549,773 6,853
  Novolipetsk Steel OJSC GDR 285,858 5,416
  Severstal OAO GDR 427,120 5,187
* IDGC Holding JSC 74,151,055 4,385
  LSR Group GDR 904,103 4,372

 

67


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Mechel ADR 639,638 4,062
TMK OAO GDR 258,636 3,841
Severstal OAO 297,218 3,413
* PIK Group 780,470 1,723
* Sollers OJSC 66,771 1,523
* Inter Rao Use JSC 1,850,289,600 1,473
Aeroflot - Russian Airlines OJSC 1,130,221 1,438
Sberbank of Russia ADR 111,606 1,320
OGK-2 OAO 96,947,306 1,072
Interregional Distribution Network Co. Center and Privolzhya OJSC 178,053,453 908
* AvtoVAZ OAO 1,422,095 604
Protek 497,782 421
* AvtoVAZ OAO Prior Pfd. 798,260 339
Mosenergosbyt JSC 21,540,740 333
VTB Bank OJSC 147,466,163 257
* Pharmacy Chain 36.6 OAO 240,134 249
* RBC OJSC 537,429 246
* Belon OJSC 662,845 152
MMC Norilsk Nickel OJSC ADR 9,538 147
* TGK-5 828,028,359 91
* Razgulay Group 70,512 26
    927,917
Singapore (1.3%)    
Singapore Telecommunications Ltd. 34,640,814 91,244
DBS Group Holdings Ltd. 7,898,440 89,698
Oversea-Chinese Banking Corp. Ltd. 11,226,665 83,441
United Overseas Bank Ltd. 5,530,167 82,470
Keppel Corp. Ltd. 6,248,393 54,364
Fraser and Neave Ltd. 4,014,606 30,078
CapitaLand Ltd. 11,118,470 29,610
^ Genting Singapore plc 26,558,536 28,850
Singapore Press Holdings Ltd. 6,993,593 23,124
Wilmar International Ltd. 8,394,895 21,191
Singapore Exchange Ltd. 3,723,769 20,466
Singapore Airlines Ltd. 2,348,442 20,353
City Developments Ltd. 2,167,619 20,239
Singapore Technologies Engineering Ltd. 6,662,188 19,174
SembCorp Industries Ltd. 4,291,579 19,046
Global Logistic Properties Ltd. 9,000,657 18,884
Jardine Cycle & Carriage Ltd. 464,824 18,702
Noble Group Ltd. 16,707,213 17,839
Hutchison Port Holdings Trust 22,676,374 17,606
CapitaMall Trust 10,147,481 17,460
Ascendas REIT 8,277,763 15,972
Golden Agri-Resources Ltd. 29,410,806 15,021
SembCorp Marine Ltd. 3,611,758 13,873
Suntec REIT 8,719,000 11,452
ComfortDelGro Corp. Ltd. 8,238,254 11,392
CapitaCommercial Trust 8,696,000 11,157
^ Olam International Ltd. 6,877,897 11,049
UOL Group Ltd. 2,007,982 9,291
Keppel Land Ltd. 3,271,601 9,062
CapitaMalls Asia Ltd. 5,879,853 8,873
StarHub Ltd. 2,592,110 7,799
Venture Corp. Ltd. 1,124,000 7,035
SATS Ltd. 2,871,000 6,546
Yangzijiang Shipbuilding Holdings Ltd. 8,313,636 6,131
Singapore Post Ltd. 6,357,000 5,937
Mapletree Industrial Trust 4,901,880 5,619
Mapletree Logistics Trust 5,761,000 5,229
SMRT Corp. Ltd. 3,279,000 4,659
CDL Hospitality Trusts 2,715,000 4,306
Starhill Global REIT 6,419,000 4,127
Mapletree Commercial Trust 4,129,000 4,088

 

68


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^,* Neptune Orient Lines Ltd. 3,930,630 3,720
  Frasers Centrepoint Trust 2,164,000 3,459
  M1 Ltd. 1,593,000 3,406
* Biosensors International Group Ltd. 3,668,000 3,250
  STX OSV Holdings Ltd. 2,575,000 3,215
^ Cosco Corp. Singapore Ltd. 4,411,513 3,167
  Overseas Union Enterprise Ltd. 1,455,000 3,155
  First Resources Ltd. 1,714,000 2,874
  Cache Logistics Trust 2,794,000 2,811
  Ezion Holdings Ltd. 2,638,000 2,784
* Yanlord Land Group Ltd. 2,688,000 2,759
^ Keppel REIT 2,826,100 2,751
  Ascott Residence Trust 2,635,000 2,750
^ Hyflux Ltd. 2,464,000 2,716
  Lippo Malls Indonesia Retail Trust 6,818,000 2,708
^,* Ezra Holdings Ltd. 2,915,000 2,652
  Parkway Life REIT 1,570,000 2,624
  Cambridge Industrial Trust 4,745,000 2,583
^ CapitaRetail China Trust 1,927,000 2,458
^ Wing Tai Holdings Ltd. 1,629,117 2,305
  Indofood Agri Resources Ltd. 2,232,000 2,297
2 ARA Asset Management Ltd. 1,766,800 2,292
^,* LionGold Corp. Ltd. 2,604,000 2,273
^ Sabana Shari'ah Compliant Industrial REIT 2,443,118 2,219
  Frasers Commercial Trust 2,111,600 2,150
  Raffles Medical Group Ltd. 1,018,000 2,040
^ Super Group Ltd. 926,000 1,850
  Ascendas India Trust 2,971,000 1,848
  Wheelock Properties Singapore Ltd. 1,218,000 1,807
  First REIT 2,025,000 1,733
  AIMS AMP Capital Industrial REIT 1,364,400 1,665
* Jaya Holdings Ltd. 3,265,000 1,482
  CSE Global Ltd. 2,086,000 1,476
  UOB-Kay Hian Holdings Ltd. 1,121,000 1,473
  United Engineers Ltd. 726,000 1,467
  OSIM International Ltd. 1,072,000 1,424
  Midas Holdings Ltd. 3,979,000 1,314
  Perennial China Retail Trust 3,337,000 1,308
  GMG Global Ltd. 12,624,000 1,300
^,* Tiger Airways Holdings Ltd. 2,031,500 1,235
  Tat Hong Holdings Ltd. 1,093,000 1,177
  Ho Bee Investment Ltd. 962,000 1,160
  GuocoLeisure Ltd. 2,239,000 1,135
  K-Green Trust 1,369,000 1,134
^,* China Minzhong Food Corp. Ltd. 1,678,000 1,107
^ Sound Global Ltd. 2,565,000 1,057
  Boustead Singapore Ltd. 1,243,000 968
^,* Swiber Holdings Ltd. 2,013,000 954
^,* Ying Li International Real Estate Ltd. 3,427,000 948
  CWT Ltd. 855,000 873
  Stamford Land Corp. Ltd. 1,907,000 867
  Chip Eng Seng Corp. Ltd. 1,902,000 723
  Hong Leong Asia Ltd. 516,000 712
^ Raffles Education Corp. Ltd. 2,600,398 701
  Sheng Siong Group Ltd. 1,753,000 681
  China Aviation Oil Singapore Corp. Ltd. 858,000 680
* Gallant Venture Ltd. 3,007,000 674
  SC Global Developments Ltd. 622,000 569
  Tuan Sing Holdings Ltd. 2,244,230 558
  Hi-P International Ltd. 866,000 508
  Transpac Industrial Holdings Ltd. 353,700 502
^ Mewah International Inc. 1,294,662 460
  Amtek Engineering Ltd. 811,340 398
^ Rotary Engineering Ltd. 995,000 342

 

69


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  China XLX Fertiliser Ltd. 1,182,000 286
  K1 Ventures Ltd. 2,455,000 251
^,* Otto Marine Ltd. 2,839,500 195
      1,014,877
South Africa (1.8%)    
  MTN Group Ltd. 7,374,455 133,252
  Naspers Ltd. 1,699,648 110,368
  Sasol Ltd. 2,380,787 101,422
  Standard Bank Group Ltd. 5,189,703 64,084
  AngloGold Ashanti Ltd. 1,662,135 56,156
  FirstRand Ltd. 13,474,908 44,785
  Impala Platinum Holdings Ltd. 2,332,113 42,047
  Gold Fields Ltd. 3,151,614 39,156
  Shoprite Holdings Ltd. 1,855,218 38,153
  Sanlam Ltd. 7,745,754 34,615
  Remgro Ltd. 1,881,596 32,234
  Bidvest Group Ltd. 1,285,397 30,681
  Woolworths Holdings Ltd. 3,278,510 24,753
  Aspen Pharmacare Holdings Ltd. 1,235,026 22,539
  Tiger Brands Ltd. 704,585 22,402
  Kumba Iron Ore Ltd. 350,640 21,931
  Truworths International Ltd. 1,892,666 20,610
  Vodacom Group Ltd. 1,618,824 20,393
  ABSA Group Ltd. 1,248,544 20,018
  Growthpoint Properties Ltd. 7,196,915 19,621
  Nedbank Group Ltd. 886,096 18,271
  Imperial Holdings Ltd. 778,768 17,700
  Steinhoff International Holdings Ltd. 4,987,372 16,780
  Mr Price Group Ltd. 1,031,056 15,943
  Life Healthcare Group Holdings Ltd. 4,069,351 15,391
  Harmony Gold Mining Co. Ltd. 1,683,029 13,789
  Anglo American Platinum Ltd. 290,844 13,521
  RMB Holdings Ltd. 3,047,466 13,389
  Foschini Group Ltd. 885,487 12,856
  Redefine Properties Ltd. 11,627,345 12,065
  Exxaro Resources Ltd. 536,861 10,735
  African Bank Investments Ltd. 3,154,462 10,674
  MMI Holdings Ltd. 4,358,556 10,517
  Spar Group Ltd. 742,047 10,401
  African Rainbow Minerals Ltd. 467,444 9,801
  Massmart Holdings Ltd. 468,735 9,429
  Nampak Ltd. 2,717,699 9,063
  Clicks Group Ltd. 1,205,476 8,316
  Discovery Holdings Ltd. 1,274,886 8,157
  RMI Holdings 3,051,064 7,962
  AVI Ltd. 1,199,411 7,909
  Netcare Ltd. 3,808,706 7,905
  Barloworld Ltd. 951,219 7,708
  Brait SE 1,884,609 7,407
* PPC Ltd. 2,182,359 7,286
  Tongaat Hulett Ltd. 457,767 7,180
  Reunert Ltd. 767,407 6,758
  Capital Property Fund 5,836,170 6,717
* Sappi Ltd. 2,310,308 6,553
  Assore Ltd. 148,673 6,148
  Aveng Ltd. 1,713,877 6,134
  Investec Ltd. 1,030,219 6,074
  Liberty Holdings Ltd. 490,092 5,683
  Sun International Ltd. 495,567 5,513
  Resilient Property Income Fund Ltd. 1,020,219 5,367
  Mondi Ltd. 485,274 5,252
  Pick n Pay Stores Ltd. 1,026,192 5,029
* Murray & Roberts Holdings Ltd. 1,881,794 4,892
  Adcock Ingram Holdings Ltd. 730,867 4,885

 

70


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
DataTec Ltd. 759,457 4,712
Aeci Ltd. 549,470 4,669
Fountainhead Property Trust 5,013,397 4,635
Hyprop Investments Ltd. 562,848 4,354
Coronation Fund Managers Ltd. 1,018,594 3,938
Northam Platinum Ltd. 1,049,287 3,936
Illovo Sugar Ltd. 991,368 3,620
Acucap Properties Ltd. 697,572 3,589
Wilson Bayly Holmes-Ovcon Ltd. 211,697 3,469
JD Group Ltd. 648,726 3,469
Omnia Holdings Ltd. 216,840 3,208
Santam Ltd. 154,051 3,204
SA Corporate Real Estate Fund Nominees Pty Ltd. 7,605,469 3,104
Lewis Group Ltd. 383,699 3,059
* ArcelorMittal South Africa Ltd. 753,872 2,906
JSE Ltd. 354,779 2,878
Grindrod Ltd. 1,620,192 2,781
Emira Property Fund 1,611,906 2,477
Pick'n Pay Holdings Ltd. 1,149,820 2,467
* Telkom SA Ltd. 1,158,300 2,443
* Super Group Ltd. 1,298,037 2,317
Allied Electronics Corp. Ltd. Prior Pfd. 931,342 2,307
Vukile Property Fund Ltd. 1,076,543 2,116
Mpact Ltd. 889,923 1,912
Sycom Property Fund 616,082 1,846
Astral Foods Ltd. 159,442 1,761
Famous Brands Ltd. 216,527 1,758
Hudaco Industries Ltd. 133,432 1,659
EOH Holdings Ltd. 382,849 1,632
* Royal Bafokeng Platinum Ltd. 260,049 1,591
City Lodge Hotels Ltd. 144,566 1,536
Cashbuild Ltd. 85,919 1,486
Group Five Ltd. 484,605 1,373
Metair Investments Ltd. 383,446 1,350
Blue Label Telecoms Ltd. 1,692,354 1,318
Cipla Medpro South Africa Ltd. 1,494,733 1,297
Clover Industries Ltd. 777,862 1,256
African Oxygen Ltd. 546,125 1,231
DRDGOLD Ltd. 1,732,371 1,218
Adcorp Holdings Ltd. 304,423 1,060
Pinnacle Technology Holdings Ltd. 475,216 941
Advtech Ltd. 1,412,868 925
Raubex Group Ltd. 407,179 774
Allied Technologies Ltd. 163,567 755
Zeder Investments Ltd. 2,197,758 735
Afgri Ltd. 1,197,986 724
Stefanutti Stocks Holdings Ltd. 439,550 510
Palabora Mining Co. Ltd. 51,671 505
* Basil Read Holdings Ltd. 370,481 422
* Merafe Resources Ltd. 5,279,266 422
* Sentula Mining Ltd. 2,123,578 415
Allied Electronics Corp. Ltd. 154,788 399
* Hulamin Ltd. 809,318 327
    1,373,176
South Korea (3.6%)    
Samsung Electronics Co. Ltd. 413,889 496,682
Hyundai Motor Co. 670,083 137,715
Samsung Electronics Co. Ltd. GDR 133,297 80,778
Hyundai Mobis 296,418 75,333
Samsung Electronics Co. Ltd. Prior Pfd. 89,200 64,754
Kia Motors Corp. 1,145,112 63,485
POSCO 199,230 62,629
LG Chem Ltd. 201,588 56,549
* SK Hynix Inc. 2,266,900 51,606

 

71


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Shinhan Financial Group Co. Ltd. 1,430,960 49,114
KB Financial Group Inc. 1,294,411 44,017
NHN Corp. 177,623 41,086
SK Innovation Co. Ltd. 261,636 38,457
Hyundai Heavy Industries Co. Ltd. 181,199 37,972
KT&G Corp. 476,680 36,273
Samsung Fire & Marine Insurance Co. Ltd. 154,042 33,628
^ LG Electronics Inc. 461,976 32,141
LG Display Co. Ltd. 1,010,210 29,980
Samsung C&T Corp. 544,489 29,575
Hana Financial Group Inc. 1,001,580 29,137
POSCO ADR 339,697 26,625
LG Corp. 412,478 25,155
LG Household & Health Care Ltd. 40,698 23,902
Samsung Life Insurance Co. Ltd. 261,143 22,490
Samsung Electro-Mechanics Co. Ltd. 259,051 22,155
Samsung Heavy Industries Co. Ltd. 698,380 21,314
E-Mart Co. Ltd. 90,329 19,579
Samsung SDI Co. Ltd. 148,606 18,629
S-Oil Corp. 195,337 17,862
Cheil Industries Inc. 205,030 17,552
Hyundai Engineering & Construction Co. Ltd. 289,027 17,389
Hyundai Steel Co. 240,332 17,268
* Korea Electric Power Corp. 662,620 17,187
Samsung Engineering Co. Ltd. 130,452 17,028
Amorepacific Corp. 13,956 15,859
SK Holdings Co. Ltd. 112,352 15,638
Korea Zinc Co. Ltd. 36,828 15,086
Woori Finance Holdings Co. Ltd. 1,570,467 14,825
Orion Corp. 15,549 14,603
Shinhan Financial Group Co. Ltd. ADR 423,626 14,496
GS Holdings 221,237 13,896
Lotte Shopping Co. Ltd. 43,869 13,563
* Hankook Tire Co. Ltd. 319,215 13,464
Honam Petrochemical Corp. 62,190 12,709
NCSoft Corp. 66,208 12,693
Samsung Securities Co. Ltd. 266,425 11,919
Hyundai Glovis Co. Ltd. 56,823 11,817
* Korea Electric Power Corp. ADR 899,752 11,598
^ Celltrion Inc. 453,605 11,172
Hyundai Wia Corp. 67,300 10,853
CJ CheilJedang Corp. 34,191 10,729
Hyundai Motor Co. 2nd Pfd. 161,808 10,583
KB Financial Group Inc. ADR 302,366 10,296
Kangwon Land Inc. 413,820 9,631
^ OCI Co. Ltd. 67,577 9,524
Daewoo Shipbuilding & Marine Engineering Co. Ltd. 410,180 8,784
Doosan Heavy Industries & Construction Co. Ltd. 204,927 8,767
Hyundai Marine & Fire Insurance Co. Ltd. 269,460 8,696
GS Engineering & Construction Corp. 153,967 8,653
BS Financial Group Inc. 763,820 8,645
SK C&C Co. Ltd. 96,900 8,495
Samsung Techwin Co. Ltd. 162,312 8,486
Woongjin Coway Co. Ltd. 231,120 8,421
Daelim Industrial Co. Ltd. 121,149 8,420
Dongbu Insurance Co. Ltd. 182,010 8,248
Hyundai Department Store Co. Ltd. 65,689 8,151
Industrial Bank of Korea 705,570 7,756
* Korea Exchange Bank 1,110,910 7,700
Daewoo Securities Co. Ltd. 747,313 7,525
Mando Corp. 55,212 7,272
DGB Financial Group Inc. 574,470 7,259
Cheil Worldwide Inc. 374,280 7,209
Samsung Card Co. Ltd. 184,638 7,133

 

72


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Korean Air Lines Co. Ltd. 157,700 7,071
  Korea Gas Corp. 100,413 7,045
^,* Doosan Infracore Co. Ltd. 436,950 6,439
  LG Uplus Corp. 1,002,420 6,402
  Hyundai Motor Co. Prior Pfd. 103,160 6,312
  LS Corp. 76,456 6,243
  Yuhan Corp. 35,907 6,198
  CJ Corp. 63,294 6,173
  Hotel Shilla Co. Ltd. 145,600 6,141
^ Hanwha Chemical Corp. 367,690 6,098
  SK Telecom Co. Ltd. 42,498 6,003
  Daewoo International Corp. 153,827 5,901
  Kumho Petrochemical Co. Ltd. 58,814 5,770
  Korea Investment Holdings Co. Ltd. 167,810 5,736
  Hyundai Hysco Co. Ltd. 140,860 5,624
  Hanwha Corp. 195,490 5,576
  Shinsegae Co. Ltd. 30,884 5,519
  Woori Investment & Securities Co. Ltd. 568,735 5,491
  Hyosung Corp. 97,998 5,397
  Hanwha Life Insurance Co. Ltd. 752,070 5,301
  AMOREPACIFIC Group 11,927 5,141
  Hyundai Mipo Dockyard 47,885 5,107
  KCC Corp. 17,941 5,032
  Samsung Fine Chemicals Co. Ltd. 77,711 4,956
  KT Corp. 145,112 4,926
  Doosan Corp. 41,345 4,773
  SK Networks Co. Ltd. 535,660 4,686
^ Korea Aerospace Industries Ltd. 184,000 4,620
  LG International Corp. 126,300 4,581
^,* Hyundai Merchant Marine Co. Ltd. 189,360 4,557
  S1 Corp. 73,445 4,427
  Lotte Confectionery Co. Ltd. 3,065 4,413
  Hyundai Development Co. 245,450 4,406
  LIG Insurance Co. Ltd. 170,330 4,332
  Daum Communications Corp. 49,290 4,232
^,* Hanjin Shipping Co. Ltd. 377,053 4,196
  LS Industrial Systems Co. Ltd. 65,185 4,071
* Daewoo Engineering & Construction Co. Ltd. 451,150 3,836
  Grand Korea Leisure Co. Ltd. 135,290 3,806
^ SK Chemicals Co. Ltd. 61,051 3,763
  Kolon Industries Inc. 73,636 3,748
  Hyundai Securities Co. Ltd. 481,970 3,696
  SKC Co. Ltd. 83,550 3,416
  Lotte Chilsung Beverage Co. Ltd. 2,603 3,398
  Dong-A Pharmaceutical Co. Ltd. 31,795 3,298
  Korean Reinsurance Co. 331,453 3,248
  Hyundai Home Shopping Network Corp. 26,976 3,202
  Hyundai Greenfood Co. Ltd. 192,330 3,190
^,* GemVax & Kael Co. Ltd. 93,628 3,179
  Green Cross Corp. 21,695 3,141
  NongShim Co. Ltd. 13,274 3,135
* SM Entertainment Co. 52,599 2,978
  CJ O Shopping Co. Ltd. 13,354 2,977
  LG Innotek Co. Ltd. 41,915 2,890
  LG Chem Ltd. Prior Pfd. 31,954 2,857
  Meritz Fire & Marine Insurance Co. Ltd. 210,559 2,855
  Halla Climate Control Corp. 152,420 2,843
* Kumho Tire Co. Inc. 235,720 2,826
  Youngone Corp. 89,520 2,777
  Mirae Asset Securities Co. Ltd. 101,197 2,742
  Paradise Co. Ltd. 163,956 2,741
  KIWOOM Securities Co. Ltd. 53,032 2,682
  Binggrae Co. Ltd. 23,944 2,603
^ KEPCO Plant Service & Engineering Co. Ltd. 46,940 2,578

 

73


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
^ Seoul Semiconductor Co. Ltd. 135,012 2,553
  Poongsan Corp. 87,550 2,549
  Able C&C Co. Ltd. 30,225 2,516
* CJ E&M Corp. 92,942 2,499
* Asiana Airlines Inc. 415,660 2,398
* KT Skylife Co. Ltd. 83,950 2,336
^ LG Fashion Corp. 83,360 2,323
* SK Broadband Co. Ltd. 626,119 2,290
  Nexen Tire Corp. 143,950 2,243
  Daesang Corp. 92,440 2,241
  Fila Korea Ltd. 38,458 2,168
  Hana Tour Service Inc. 38,533 2,168
* LG Life Sciences Ltd. 51,261 2,145
* Medipost Co. Ltd. 26,911 2,119
  Huchems Fine Chemical Corp. 96,850 2,101
  Cosmax Inc. 46,780 2,086
* Hanmi Pharm Co. Ltd. 20,420 2,070
  Lotte Samkang Co. Ltd. 3,069 2,056
  KP Chemical Corp. 207,026 2,049
  LG Hausys Ltd. 27,606 1,984
  Namyang Dairy Products Co. Ltd. 2,255 1,954
^ Dongkuk Steel Mill Co. Ltd. 151,810 1,946
* Seegene Inc. 25,750 1,846
  Partron Co. Ltd. 116,521 1,776
^ Interflex Co. Ltd. 30,966 1,764
^ STX Offshore & Shipbuilding Co. Ltd. 237,290 1,716
  Tongyang Life Insurance 158,050 1,709
  CJ CGV Co. Ltd. 54,840 1,698
  SFA Engineering Corp. 41,078 1,678
  iMarketKorea Inc. 68,840 1,632
  Daou Technology Inc. 114,630 1,628
  SK Telecom Co. Ltd. ADR 103,631 1,620
* Gamevil Inc. 15,303 1,596
^ Lock & Lock Co. Ltd. 83,247 1,583
  Sung Kwang Bend Co. Ltd. 63,375 1,532
  KT Corp. ADR 89,480 1,517
* Meritz Finance Group Inc. 454,700 1,510
  Taekwang Industrial Co. Ltd. 1,589 1,477
* TK Corp. 57,876 1,466
  Handsome Co. Ltd. 57,710 1,463
^,* Com2uSCorp 24,426 1,453
^,* Hanjin Heavy Industries & Construction Co. Ltd. 134,172 1,449
* Korea Kolmar Co. Ltd. 53,959 1,435
  Chong Kun Dang Pharm Corp. 45,060 1,433
  Dongsuh Co. Inc. 46,868 1,424
  Soulbrain Co. Ltd. 34,882 1,402
  Iljin Display Co. Ltd. 70,840 1,394
  Daishin Securities Co. Ltd. 174,590 1,391
* ViroMed Co. Ltd. 47,399 1,387
  Green Cross Holdings Corp. 88,910 1,386
^,* YG Entertainment Inc. 20,297 1,378
^ STX Pan Ocean Co. Ltd. 436,250 1,378
^,* Chabio & Diostech Co. Ltd. 181,793 1,370
* Osstem Implant Co. Ltd. 46,659 1,352
  GS Home Shopping Inc. 10,588 1,350
  Hansol Paper Co. 160,600 1,348
  Youngone Holdings Co. Ltd. 23,820 1,325
^ WeMade Entertainment Co. Ltd. 29,002 1,320
* 3S Korea Co. Ltd. 155,325 1,284
  POSCO Chemtech Co. Ltd. 9,090 1,271
  Seah Besteel Corp. 53,690 1,254
* RNL BIO Co. Ltd. 337,590 1,242
^ Suprema Inc. 72,172 1,236
  Dongwon Industries Co. Ltd. 4,700 1,228

 

74


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Medy-Tox Inc. 16,118 1,212
^ Ilyang Pharmaceutical Co. Ltd. 52,176 1,207
* Neowiz Games Corp. 53,190 1,202
^,* Duksan Hi-Metal Co. Ltd. 64,112 1,198
  Kolao Holdings 66,700 1,192
  Global & Yuasa Battery Co. Ltd. 27,970 1,186
  SK Securities Co. Ltd. 1,106,110 1,175
  Sungwoo Hitech Co. Ltd. 121,356 1,174
^ Capro Corp. 98,950 1,171
  MegaStudy Co. Ltd. 18,784 1,165
  Modetour Network Inc. 41,292 1,163
^ Posco ICT Co. Ltd. 181,218 1,155
  Haansoft Inc. 61,073 1,125
  TONGYANG Securities Inc. 316,610 1,116
  Samyang Holdings Corp. 16,845 1,104
  Ahnlab Inc. 19,178 1,095
  Ottogi Corp. 5,031 1,093
  Melfas Inc. 56,643 1,090
  Hansae Co. Ltd. 81,489 1,086
^,* Komipharm International Co. Ltd. 125,132 1,074
* Lumens Co. Ltd. 160,251 1,064
  Daeduck Electronics Co. 125,730 1,063
^ STX Corp. Co. Ltd. 143,421 1,050
^ SK Gas Co. Ltd. 14,256 1,032
  SBS Media Holdings Co. Ltd. 164,990 999
  NEPES Corp. 77,241 983
* Tera Resource Co. Ltd. 836,893 967
  Shinsegae International Co. Ltd. 12,123 951
  Golfzon Co. Ltd. 18,898 951
  Hankook Tire Worldwide Co. Ltd. 72,964 942
  Samchully Co. Ltd. 10,406 929
  Nexen Corp. 11,857 915
  Posco M-Tech Co. Ltd. 95,210 914
  Simm Tech Co. Ltd. 91,087 900
* Seobu T&D 37,778 900
  Hyundai Corp. 50,560 899
^,* DuzonBIzon Co. Ltd. 88,710 894
^,* Interpark Corp. 117,024 894
* Foosung Co. Ltd. 189,623 890
  Sindoh Co. Ltd. 14,615 887
  CJ Freshway Corp. 22,369 878
* Taihan Electric Wire Co. Ltd. 590,480 874
  Lotte Midopa Co. Ltd. 75,620 869
  S&T Dynamics Co. Ltd. 86,100 861
  Jeonbuk Bank 225,363 858
  Silicon Works Co. Ltd. 33,392 854
  AtlasBX Co. Ltd. 27,392 849
  Bukwang Pharmaceutical Co. Ltd. 55,177 842
* Doosan Engine Co. Ltd. 106,590 839
  ELK Corp. 38,089 830
  ISU Chemical Co. Ltd. 42,710 828
  Meritz Securities Co. Ltd. 688,910 824
  Hansol Chemical Co. Ltd. 37,620 820
  Daewoong Pharmaceutical Co. Ltd. 18,552 820
* Hanall Biopharma Co. Ltd. 101,170 815
  Daeduck GDS Co. Ltd. 74,740 815
* Huvis Corp. 70,220 813
  Shinsegae Food Co. Ltd. 8,070 807
  Koh Young Technology Inc. 34,835 806
  Taeyoung Engineering & Construction Co. Ltd. 159,860 804
^,* Wonik IPS Co. Ltd. 183,810 793
  SamkwangGlass Co. Ltd. 12,611 789
  Korea District Heating Corp. 12,038 787
  Hanwha Investment & Securities Co. Ltd. 218,450 784

 

75


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  EG Corp. 21,542 784
  Eo Technics Co. Ltd. 28,536 776
  OCI Materials Co. Ltd. 26,106 774
^,* Genic Co. Ltd. 14,234 773
  Namhae Chemical Corp. 84,890 769
  Maeil Dairy Industry Co. Ltd. 25,904 765
  SeAH Steel Corp. 8,807 759
  Dongyang Mechatronics Corp. 89,660 755
  Daekyo Co. Ltd. 136,120 751
* Ssangyong Motor Co. 150,220 733
  Muhak Co. Ltd. 58,482 721
^,* Pharmicell Co. Ltd. 135,082 721
  HMC Investment Securities Co. Ltd. 59,660 704
  Dae Won Kang Up Co. Ltd. 100,588 701
  Hanil E-Wha Co. Ltd. 108,010 698
  Agabang&Company 80,953 693
  Pyeong Hwa Automotive Co. Ltd. 46,799 688
  Hanil Cement Co. Ltd. 16,480 667
  Uju Electronics Co. Ltd. 28,765 667
^,* Sapphire Technology Co. Ltd. 19,946 661
  GS Global Corp. 52,175 659
  Sebang Co. Ltd. 40,210 656
  Silla Co. Ltd. 29,400 654
  Hankook Shell Oil Co. Ltd. 2,882 650
^,* CUROCOM Co. Ltd. 267,619 647
  Eugene Technology Co. Ltd. 51,370 644
  Hy-Lok Corp. 31,920 643
  Hanssem Co. Ltd. 37,290 628
  Hanjin Transportation Co. Ltd. 29,090 615
  Hwa Shin Co. Ltd. 76,730 614
  Humax Co. Ltd. 69,458 595
  Songwon Industrial Co. Ltd. 59,710 591
^ STX Engine Co. Ltd. 80,200 587
  Kwang Dong Pharmaceutical Co. Ltd. 120,870 584
* ICD Co. Ltd. 47,843 583
^ STS Semiconductor & Telecommunications 114,449 581
* Sung Jin Geotec Co. Ltd. 59,110 574
* Dongbu HiTek Co. Ltd. 91,260 566
* SK Communications Co. Ltd. 68,842 563
  KISWIRE Ltd. 19,292 560
  Gwangju Shinsegae Co. Ltd. 2,575 557
  Dong Ah Tire & Rubber Co. Ltd. 38,960 549
  NH Investment & Securities Co. Ltd. 118,311 547
  E1 Corp. 9,570 545
* GameHi Co. Ltd. 67,259 544
* JVM Co. Ltd. 12,361 544
* Yungjin Pharmaceutical Co. Ltd. 308,830 536
  SL Corp. 45,590 528
* Toptec Co. Ltd. 33,082 527
^,* CrucialTec Co. Ltd. 67,444 522
  Sajo Industries Co. Ltd. 10,060 520
  Daishin Securities Co. Ltd. Prior Pfd. 87,280 516
  Halla Engineering & Construction corp 65,740 516
  Jeil Pharmaceutical Co. 32,500 514
  Wooree ETI Co. Ltd. 114,652 511
* Celltrion Pharm Inc. 31,953 506
  SBS Contents Hub Co. Ltd. 33,208 498
  JCEntertainment Corp. 23,179 497
  Y G-1 Co. Ltd. 41,204 496
* KT Hitel Co. Ltd. 60,840 493
  Dae Han Flour Mills Co. Ltd. 4,263 489
  Woori Financial Co. Ltd. 32,163 485
^,* Woongjin Chemical Co. Ltd. 910,920 484
* Infraware Inc. 52,503 481

 

76


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Busan City Gas Co. Ltd. 23,840 481
* Digitech Systems Co. Ltd. 44,492 474
* Korea REIT Co. 359,725 468
* Kumho Industrial Co. Ltd. 230,540 460
  Asia Cement Co. Ltd. 8,700 458
  JW Shinyak Corp. 73,793 455
  Credu Corp. 10,702 451
  Bioland Ltd. 28,596 450
  Motonic Corp. 39,790 450
  INTOPS Co. Ltd. 20,021 448
  Jinsung T.E.C. 50,332 444
^,* Asia Pacific Systems Inc. 71,336 438
* Hansol Technics Co. Ltd. 34,036 437
  Kukdo Chemical Co. Ltd. 11,096 434
* Hyundai Hy Communications & Networks Co. Ltd. 90,360 431
* Hanwha General Insurance Co. Ltd. 62,670 425
  Dongjin Semichem Co. Ltd. 105,805 425
^,* Taewoong Co. Ltd. 26,084 423
* Eugene Corp. 148,314 420
* Aminologics Co. Ltd. 211,890 420
  Crown Confectionery Co. Ltd. 2,399 420
* Eugene Investment & Securities Co. Ltd. 182,205 418
  Handok Pharmaceuticals Co. Ltd. 26,020 415
  Korea Petrochemical Ind Co. Ltd. 9,077 414
  Korea Electric Terminal Co. Ltd. 17,320 413
  Unid Co. Ltd. 12,297 412
  S&T Motiv Co. Ltd. 23,160 402
^,* Jusung Engineering Co. Ltd. 91,695 399
^ Moorim P&P Co. Ltd. 119,460 390
  AUK Corp. 197,140 384
  Kolon Global Corp. 131,400 378
* TK Chemical Corp. 171,578 372
* Ssangyong Cement Industrial Co. Ltd. 72,460 367
* Curexo Inc. 60,137 364
  IS Dongseo Co. Ltd. 36,380 362
  Woongjin Thinkbig Co. Ltd. 60,020 351
  Sejong Industrial Co. Ltd. 30,560 349
^ Iljin Materials Co. Ltd. 40,760 347
^ Basic House Co. Ltd. 32,110 346
  Haesung Industrial Co. Ltd. 11,865 341
^ INFINITT Co. Ltd. 41,777 339
  BHI Co. Ltd. 14,469 328
  NICE Holdings Co. Ltd. 6,113 324
* Webzen Inc. 37,702 319
  Dragonfly GF Co. Ltd. 21,146 317
  Dongbu Securities Co. Ltd. 101,120 315
* Hyunjin Materials Co. Ltd. 51,293 314
  Nong Shim Holdings Co. Ltd. 5,491 312
  Kolon Corp. 19,240 303
  Hana Micron Inc. 54,877 303
* Woongjin Energy Co. Ltd. 172,970 297
  JW Pharmaceutical Corp. 22,808 293
* Nexolon Co. Ltd. 213,766 289
  Sam Young Electronics Co. Ltd. 36,010 288
  Young Poong Precision Corp. 26,019 286
  Harim Co. Ltd. 95,280 285
  KISCO Corp. 10,530 284
  Dongbu Steel Co. Ltd. 82,690 275
* KTB Investment & Securities Co. Ltd. 141,600 268
* Hyundai BNG Steel Co. Ltd. 29,250 264
  SNU Precision Co. Ltd. 66,572 262
  Daehan Steel Co. Ltd. 30,910 257
* Cosmochemical Co. Ltd. 29,240 257
  Youlchon Chemical Co. Ltd. 32,420 256

 

77


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Jcontentree Corp. 68,113 254
  Il Dong Pharmaceutical Co. Ltd. 31,100 254
* Tongyang Inc. 337,280 250
  Hitejinro Holdings Co. Ltd. 19,170 246
  KPX Chemical Co. Ltd. 5,319 245
^ Korea Kolmar Holdings Co. Ltd. 25,980 243
  Kumho Electric Co. Ltd. 9,550 240
* Signetics Corp. 91,431 231
  Iljin Electric Co. Ltd. 54,490 230
  Poongsan Holdings Corp. 10,420 222
  YESCO Co. Ltd. 7,910 218
  Kyobo Securities Co. 51,430 217
* Neowiz Corp. 14,283 209
  Hanjin Heavy Industries & Construction Holdings Co. Ltd. 32,600 208
  SeAH Holdings Corp. 2,412 208
  DONGKUK STRUCTURES & CONSTRUCTION CO. LTD. 101,855 207
* Samyang Corp. 4,260 206
  TS Corp. 8,466 205
* Neowiz Internet Corp. 16,287 202
^,* Osung LST Co. Ltd. 64,990 202
  Dongkuk Industries Co. Ltd. 70,893 201
* Lotte Non-Life Insurance Co. Ltd. 54,260 199
  Samyang Genex Co. Ltd. 4,129 198
  Dongwon F&B Co. Ltd. 2,948 190
* Aekyung Petrochemical Co. Ltd. 3,423 186
  Daishin Securities Co. Ltd. Prior Pfd. 33,010 181
  KC Tech Co. Ltd. 50,711 176
  Korea Electronic Power Industrial Development Co. Ltd. 34,760 173
  Kook Soon Dang Brewery Co. Ltd. 21,655 171
  Hanjin Shipping Holdings Co. Ltd. 31,310 159
  Hanmi Semiconductor Co. Ltd. 24,060 153
  Ilsung Pharmaceuticals Co. Ltd. 2,009 153
  S&T Holdings Co. Ltd. 17,530 151
* Korea Line Corp. 40,420 147
  NK Co. Ltd. 40,200 140
* Kyungbang Ltd. 1,473 137
  Dongil Industries Co. Ltd. 3,004 134
  Chosun Refractories Co. Ltd. 2,253 131
  AK Holdings Inc. 6,086 125
  KCC Engineering & Construction Co. Ltd. 5,059 116
  HNK Machine Tool Co. Ltd. 10,456 107
* Ssangyong Engineering & Construction Co. Ltd. 29,600 84
^,* Woongjin Holdings Co. Ltd. 36,730 57
* Lotte Non-Life Insurance Co. Ltd. Rights Exp. 12/04/2012 27,418 20
      2,711,998
Spain (1.9%)    
* Banco Santander SA 42,830,278 322,481
  Telefonica SA 17,537,382 231,474
  Banco Bilbao Vizcaya Argentaria SA 23,412,588 195,636
  Inditex SA 948,044 121,059
  Iberdrola SA 16,889,956 87,473
  Repsol SA 3,554,706 71,240
  Amadeus IT Holding SA 1,361,414 33,726
* Banco de Sabadell SA 12,233,754 29,832
  Ferrovial SA 1,751,404 24,783
  Abertis Infraestructuras SA 1,586,871 23,968
  Gas Natural SDG SA 1,509,458 23,452
* Grifols SA 648,862 22,536
  Red Electrica Corp. SA 470,536 22,078
  Distribuidora Internacional de Alimentacion SA 2,664,558 16,142
  Enagas SA 776,722 15,451
  CaixaBank 3,614,014 13,726
  ACS Actividades de Construccion y Servicios SA 618,820 13,225
* International Consolidated Airlines Group SA 4,014,705 10,568

 

78


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Mapfre SA 3,320,632 9,212
  Viscofan SA 189,943 9,203
  Banco Popular Espanol SA 5,797,130 9,065
  Zardoya Otis SA 670,702 8,296
* Bankia SA 4,287,934 6,472
  Ebro Foods SA 345,722 6,350
  Acciona SA 103,123 6,339
^ Bolsas y Mercados Espanoles SA 289,726 6,260
* Jazztel plc 907,750 6,017
  Tecnicas Reunidas SA 121,307 5,975
^ Indra Sistemas SA 426,893 4,884
  Prosegur Cia de Seguridad SA 883,110 4,818
  Acerinox SA 436,944 4,561
  Obrascon Huarte Lain SA 172,979 4,535
  Bankinter SA 1,038,307 4,124
  Mediaset Espana Comunicacion SA 689,963 3,714
  Construcciones y Auxiliar de Ferrocarriles SA 7,426 3,536
  Grupo Catalana Occidente SA 185,499 3,029
  Fomento de Construcciones y Contratas SA 220,034 2,883
  Corp Financiera Alba SA 75,237 2,851
^,* Abengoa SA (B Shars) 672,412 2,330
* Almirall SA 208,408 1,866
^ Melia Hotels International SA 246,035 1,831
  Gamesa Corp. Tecnologica SA 826,209 1,688
  Faes Farma SA 838,199 1,452
  Duro Felguera SA 237,303 1,437
  Ence Energia y Celulosa S.A 523,381 1,278
^,* NH Hoteles SA 342,516 1,243
  Tubos Reunidos SA 447,338 1,116
  Antena 3 de Television SA 277,155 1,112
^,* Zeltia SA 615,706 1,056
  Pescanova SA 54,561 1,013
* Tubacex SA 364,560 941
  Miquel y Costas & Miquel SA 29,915 815
  Cie Automotive SA 108,482 752
* Deoleo SA 1,546,235 662
^ Abengoa SA 168,103 588
* Vueling Airlines SA 80,988 542
^,* Promotora de Informaciones SA 1,023,743 446
* Campofrio Food Group SA 57,061 418
* Codere SA 82,212 345
  Laboratorios Farmaceuticos Rovi SA 50,167 337
  Papeles y Cartones de Europa SA 132,240 318
* Cementos Portland Valderrivas SA 49,383 237
^,* Realia Business SA 240,362 184
      1,414,981
Sweden (2.1%)    
  Hennes & Mauritz AB Class B 4,125,804 139,892
  Telefonaktiebolaget LM Ericsson Class B 13,086,974 115,939
  Nordea Bank AB 11,450,596 104,082
  Volvo AB Class B 6,047,650 81,608
  Svenska Handelsbanken AB Class A 2,145,323 73,621
  Atlas Copco AB Class A 2,920,927 71,829
  Swedbank AB Class A 3,571,015 66,330
  TeliaSonera AB 9,417,406 61,912
  Sandvik AB 4,360,775 60,595
  Skandinaviska Enskilda Banken AB Class A 6,119,481 50,778
  Svenska Cellulosa AB Class B 2,511,759 48,970
  Assa Abloy AB Class B 1,436,998 47,875
  Investor AB Class B 1,976,108 43,621
  SKF AB 1,705,054 38,479
  Atlas Copco AB Class B 1,695,708 37,184
  Swedish Match AB 915,328 31,208
  Electrolux AB Class B 1,043,691 26,756

 

79


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Getinge AB 867,277 26,688
  Scania AB Class B 1,388,314 26,490
  Skanska AB Class B 1,648,804 25,829
  Alfa Laval AB 1,451,909 25,259
  Hexagon AB Class B 1,050,652 24,271
  Millicom International Cellular SA 274,993 23,741
* Lundin Petroleum AB 967,043 23,203
  Tele2 AB 1,375,079 22,954
  Elekta AB Class B 1,590,055 22,635
  Boliden AB 1,186,623 20,794
  Investment AB Kinnevik 892,279 17,075
  Trelleborg AB Class B 1,054,280 11,488
  Husqvarna AB 1,866,418 10,841
  Meda AB Class A 987,587 10,118
  Securitas AB Class B 1,346,862 9,809
  Castellum AB 662,735 8,883
  Industrivarden AB 512,637 7,240
  Ratos AB 811,434 6,967
  Holmen AB 228,201 6,725
  NCC AB Class B 338,002 6,333
  JM AB 348,196 6,272
  Modern Times Group AB Class B 201,698 6,153
  Hufvudstaden AB Class A 473,181 6,010
  Lundbergforetagen AB Class B 173,490 5,887
  Fabege AB 584,240 5,802
  Nibe Industrier AB Class B 356,604 5,400
  Oriflame Cosmetics SA 190,100 5,253
  Saab AB Class B 272,657 5,187
  Hexpol AB 107,472 4,806
  SSAB AB Class A 661,065 4,736
  Intrum Justitia AB 302,966 4,384
  Wihlborgs Fastigheter AB 276,846 4,226
  AarhusKarlshamn AB 106,179 4,183
^ Axis Communications AB 178,716 4,177
  Loomis AB Class B 288,453 3,964
  Wallenstam AB 357,632 3,931
  Hakon Invest AB 220,362 3,787
* Betsson AB 134,355 3,671
  Axfood AB 98,742 3,655
  Hoganas AB Class B 108,267 3,611
* Swedish Orphan Biovitrum AB 622,652 3,516
^ Billerud AB 360,048 3,434
  Unibet Group plc 121,262 3,420
  Peab AB 707,481 3,341
^,* Alliance Oil Co. Ltd. 388,739 2,991
  Kungsleden AB 568,791 2,782
  AF AB 114,681 2,547
^ Mekonomen AB 89,891 2,521
^,* Nobia AB 616,820 2,485
  Lindab International AB 285,477 2,143
  Indutrade AB 72,282 2,027
* Investment AB Oresund 137,628 2,016
  Clas Ohlson AB 148,019 1,892
* Fastighets AB Balder 326,592 1,791
^,* Active Biotech AB 169,785 1,562
  Klovern AB 399,362 1,547
  Avanza Bank Holding AB 73,067 1,436
  Concentric AB 178,855 1,348
  BioGaia AB 52,101 1,347
* Net Entertainment NE AB 109,717 1,211
  Duni AB 130,095 1,179
* Rezidor Hotel Group AB 326,693 1,163
^,* CDON Group AB 206,566 1,161
  SkiStar AB 93,329 1,122

 

80


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Industrial & Financial Systems Class B 72,053 1,110
* Medivir AB Class B 118,010 1,077
^,* Creades AB Class A 61,755 1,036
  Bure Equity AB 270,603 938
  Bilia AB 71,514 918
* HIQ International AB 195,867 894
  East Capital Explorer AB 120,408 890
  Nolato AB Class B 72,734 844
  Haldex AB 185,215 809
  Nordnet AB 318,900 790
* Vostok Nafta Investment Ltd. 288,747 715
  B&B Tools AB 99,172 681
^,* SAS AB 675,746 658
  Byggmax Group AB 138,899 640
^ Proffice AB 213,549 618
^,* Black Earth Farming Ltd. 325,749 599
^,* KappAhl AB 761,919 550
  Gunnebo AB 140,883 546
  New Wave Group AB Class B 178,086 539
^,* Eniro AB 351,736 496
  BE Group AB 198,247 484
^,* Micronic Mydata AB 259,540 403
  NCC AB Class A 21,611 400
* Bjoern Borg AB 71,068 375
  TradeDoubler AB 147,020 259
^,* PA Resources AB 2,676,164 182
^,* Nordic Mines AB 172,944 128
^,* BioInvent International AB 263,048 99
      1,600,777
Switzerland (5.6%)    
  Nestle SA 14,354,194 911,322
  Novartis AG 10,005,587 603,343
  Roche Holding AG 3,055,976 588,658
  UBS AG 15,839,269 237,646
  ABB Ltd. 9,566,444 172,769
  Syngenta AG 411,612 160,483
  Zurich Insurance Group AG 641,184 158,065
  Cie Financiere Richemont SA 2,271,542 147,419
  Credit Suisse Group AG 5,311,405 123,519
  Swiss Re AG 1,530,371 105,898
  Transocean Ltd. 1,525,647 69,789
  Holcim Ltd. 996,388 68,000
  Swatch Group AG (Bearer) 134,139 55,524
  SGS SA 23,812 50,480
  Swisscom AG 101,463 42,235
  Givaudan SA 36,104 36,114
  Julius Baer Group Ltd. 992,662 34,447
  Geberit AG 164,386 33,953
  Adecco SA 574,772 27,872
  Schindler Holding AG 210,789 27,819
  Kuehne & Nagel International AG 234,716 27,458
  Actelion Ltd. 483,856 23,355
  Sonova Holding AG 212,702 21,418
  Sika AG 9,383 19,553
  Swiss Prime Site AG 213,513 17,863
  Baloise Holding AG 206,156 17,207
  Swiss Life Holding AG 132,959 16,791
  Lindt & Spruengli AG Regular 459 16,708
  Aryzta AG 303,528 15,164
  Sulzer AG 104,536 15,158
  PSP Swiss Property AG 160,743 14,762
  Swatch Group AG (Registered) 189,136 13,757
  Galenica AG 21,214 12,459
* Dufry AG 96,711 12,300

 

81


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Lindt & Spruengli AG 3,875 12,245
  Partners Group Holding AG 57,622 12,198
  Schindler Holding AG (Registered) 93,626 12,128
  Clariant AG 1,087,905 11,658
  Lonza Group AG 229,489 11,639
  GAM Holding AG 810,262 11,332
  Allreal Holding AG 58,615 8,856
  Helvetia Holding AG 24,661 8,660
  EMS-Chemie Holding AG 35,118 8,473
  Pargesa Holding SA 117,565 7,916
  Barry Callebaut AG 7,855 7,502
  OC Oerlikon Corp. AG 700,731 7,058
  Banque Cantonale Vaudoise 13,155 6,976
  Flughafen Zuerich AG 15,914 6,810
  Valiant Holding 67,512 6,650
  Mobimo Holding AG 26,464 6,138
  Georg Fischer AG 16,869 5,927
  Panalpina Welttransport Holding AG 60,317 5,705
  Bucher Industries AG 30,080 5,644
^ Logitech International SA 747,221 5,411
^,* Temenos Group AG 300,256 4,946
  Kaba Holding AG Class B 12,429 4,700
  Straumann Holding AG 37,420 4,611
  Nobel Biocare Holding AG 501,842 4,496
  AMS AG 41,880 4,461
  Forbo Holding AG 7,036 4,447
  St. Galler Kantonalbank AG 10,694 4,385
  Kuoni Reisen Holding AG 15,798 4,225
* Bank Sarasin & Cie AG Class B 142,561 4,178
  Aryzta AG 76,275 3,715
  Burckhardt Compression Holding AG 11,999 3,439
  Tecan Group AG 43,677 3,259
  Vontobel Holding AG 109,188 3,045
  Gategroup Holding AG 109,046 2,890
  Huber & Suhner AG 60,367 2,690
  Zehnder Group AG 42,872 2,525
  BKW AG 56,785 2,197
  Rieter Holding AG 13,524 2,163
  Schweizerische National-Versicherungs-Gesellschaft AG 52,659 2,130
  Implenia AG 49,704 2,110
  Valora Holding AG 10,944 2,080
^ EFG International AG 222,223 2,032
^,* Meyer Burger Technology AG 197,995 1,924
  Kudelski SA 165,931 1,814
  Schweiter Technologies AG 3,549 1,738
* Basilea Pharmaceutica 34,713 1,707
  Acino Holding AG 13,885 1,702
  Liechtensteinische Landesbank AG 51,452 1,678
  Vetropack Holding AG 956 1,630
* AFG Arbonia-Forster Hollding AG 67,392 1,527
  Inficon Holding AG 7,102 1,519
  Intershop Holdings 4,262 1,483
  Bossard Holding AG 10,907 1,463
  Siegfried Holding AG 11,616 1,448
* Bobst Group AG 40,826 1,247
  Mobilezone Holding AG 118,525 1,241
  Swissquote Group Holding SA 40,168 1,240
^ LEM Holding SA 2,378 1,195
  Micronas Semiconductor Holding AG 131,629 1,132
  Verwaltungs- und Privat-Bank AG 14,674 1,095
  Swisslog Holding AG 967,554 1,039
  U-Blox AG 23,260 1,030
  PubliGroupe AG 7,447 1,014
* Orascom Development Holding AG 58,894 1,007

 

82


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Schmolz & Bickenbach AG 255,091 965
  Komax Holding AG 12,562 914
  Ascom Holding AG 106,801 914
  Gurit Holding AG 1,699 693
* Autoneum Holding AG 13,007 665
^,* Myriad Group AG 228,586 614
^,* Von Roll Holding AG 264,593 599
^ Bachem Holding AG 14,897 597
* Zueblin Immobilien Holding AG 193,561 580
* Charles Voegele Holding AG 26,435 468
  Walter Meier AG 1,815 407
      4,181,247
Taiwan (2.7%)    
  Taiwan Semiconductor Manufacturing Co. Ltd. 87,358,063 266,185
  Hon Hai Precision Industry Co. Ltd. 43,446,331 131,731
  Taiwan Semiconductor Manufacturing Co. Ltd. ADR 3,945,138 62,728
  MediaTek Inc. 4,993,689 55,394
  Formosa Plastics Corp. 17,330,780 47,177
  China Steel Corp. 49,799,973 42,762
  Chunghwa Telecom Co. Ltd. 11,898,456 37,229
  Nan Ya Plastics Corp. 20,503,780 36,112
  Formosa Chemicals & Fibre Corp. 13,629,500 32,254
  Uni-President Enterprises Corp. 17,992,884 31,765
  Asustek Computer Inc. 2,952,168 31,584
  Cathay Financial Holding Co. Ltd. 30,776,236 30,859
  Delta Electronics Inc. 7,859,240 26,809
  Chinatrust Financial Holding Co. Ltd. 48,643,509 26,776
  Taiwan Mobile Co. Ltd. 7,271,400 25,367
  Fubon Financial Holding Co. Ltd. 24,749,018 25,356
  Mega Financial Holding Co. Ltd. 34,801,264 25,279
  Quanta Computer Inc. 10,903,950 24,886
  HTC Corp. 3,157,792 22,787
  Cheng Shin Rubber Industry Co. Ltd. 7,942,938 19,989
  Taiwan Cement Corp. 13,758,700 17,617
  Far EasTone Telecommunications Co. Ltd. 6,918,000 15,969
  First Financial Holding Co. Ltd. 28,101,485 15,943
  Yuanta Financial Holding Co. Ltd. 34,913,440 15,755
  Advanced Semiconductor Engineering Inc. 20,229,201 15,266
  United Microelectronics Corp. 39,209,175 14,539
  Chunghwa Telecom Co. Ltd. ADR 464,941 14,450
  Formosa Petrochemical Corp. 4,937,950 14,353
  Far Eastern New Century Corp. 13,171,887 13,618
  TPK Holding Co. Ltd. 988,695 12,401
* China Development Financial Holding Corp. 55,404,856 12,365
  President Chain Store Corp. 2,496,536 12,338
  Hua Nan Financial Holdings Co. Ltd. 22,324,210 11,718
  Synnex Technology International Corp. 5,419,463 11,456
  Lite-On Technology Corp. 8,959,321 11,398
  Compal Electronics Inc. 18,089,689 11,379
  Foxconn Technology Co. Ltd. 3,202,373 11,105
  Taiwan Cooperative Financial Holding 20,625,180 10,722
  Catcher Technology Co. Ltd. 2,462,800 10,689
  Asia Cement Corp. 8,386,685 10,445
  SinoPac Financial Holdings Co. Ltd. 26,351,828 10,182
  Taishin Financial Holding Co. Ltd. 28,158,025 10,059
  Pou Chen Corp. 9,446,517 9,550
  Chang Hwa Commercial Bank 18,923,485 9,539
  Largan Precision Co. Ltd. 434,376 9,238
* Chimei Innolux Corp. 24,730,313 9,210
* Pegatron Corp. 7,004,639 8,831
  Wistron Corp. 9,102,623 8,732
  Novatek Microelectronics Corp. 2,246,275 8,448
  E.Sun Financial Holding Co. Ltd. 16,690,608 8,352
* Acer Inc. 10,523,297 8,123

 

83


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* AU Optronics Corp. 20,990,640 7,946
Radiant Opto-Electronics Corp. 1,854,824 7,704
MStar Semiconductor Inc. 907,263 7,675
Hotai Motor Co. Ltd. 1,067,000 7,589
Taiwan Fertilizer Co. Ltd. 3,180,000 7,568
WPG Holdings Ltd. 6,061,553 7,311
Siliconware Precision Industries Co. 7,488,000 7,276
* Shin Kong Financial Holding Co. Ltd. 25,635,297 6,632
Yulon Motor Co. Ltd. 3,778,015 6,580
Giant Manufacturing Co. Ltd. 1,227,319 6,339
* China Life Insurance Co. Ltd. 7,767,904 6,049
Simplo Technology Co. Ltd. 1,211,443 5,975
Unimicron Technology Corp. 5,330,750 5,447
United Microelectronics Corp. ADR 2,830,148 5,321
Chailease Holding Co. Ltd. 2,953,000 5,255
Siliconware Precision Industries Co. ADR 1,093,975 5,251
Teco Electric and Machinery Co. Ltd. 7,653,000 5,196
China Petrochemical Development Corp. 7,239,700 5,026
Epistar Corp. 3,160,408 5,020
CTCI Corp. 2,472,000 4,912
TSRC Corp. 2,382,930 4,861
Hiwin Technologies Corp. 756,159 4,856
Powertech Technology Inc. 3,088,955 4,792
Advanced Semiconductor Engineering Inc. ADR 1,227,916 4,666
Ruentex Industries Ltd. 2,033,015 4,580
Chicony Electronics Co. Ltd. 2,031,491 4,453
* AU Optronics Corp. ADR 1,175,216 4,442
* China Airlines Ltd. 11,320,646 4,414
Ruentex Development Co. Ltd. 2,551,838 4,274
Advantech Co. Ltd. 1,201,924 4,153
* Eva Airways Corp. 7,062,290 4,094
Phison Electronics Corp. 532,510 4,085
Macronix International 15,481,878 4,022
Taiwan Glass Industry Corp. 4,153,747 3,969
Far Eastern Department Stores Co. Ltd. 4,208,219 3,956
* Walsin Lihwa Corp. 14,249,000 3,896
* Evergreen Marine Corp. Taiwan Ltd. 7,249,979 3,731
Cheng Uei Precision Industry Co. Ltd. 1,686,485 3,730
Realtek Semiconductor Corp. 1,964,580 3,693
* Taiwan Business Bank 12,949,883 3,599
Tripod Technology Corp. 1,835,023 3,543
Inventec Corp. 10,266,315 3,508
Chipbond Technology Corp. 2,062,000 3,490
Merida Industry Co. Ltd. 863,650 3,308
Kinsus Interconnect Technology Corp. 1,169,000 3,207
Richtek Technology Corp. 573,105 3,115
Tung Ho Steel Enterprise Corp. 3,160,842 2,995
Formosa Taffeta Co. Ltd. 3,354,000 2,954
FLEXium Interconnect Inc. 726,519 2,954
Standard Foods Corp. 1,152,800 2,951
Nan Kang Rubber Tire Co. Ltd. 2,543,209 2,938
* Wintek Corp. 7,312,974 2,885
U-Ming Marine Transport Corp. 1,895,000 2,871
AmTRAN Technology Co. Ltd. 3,364,716 2,842
E Ink Holdings Inc. 3,489,000 2,806
Feng Hsin Iron & Steel Co. 1,764,000 2,788
China Steel Chemical Corp. 632,000 2,748
Wowprime Corp. 194,000 2,721
Oriental Union Chemical Corp. 2,537,700 2,690
Chroma ATE Inc. 1,398,800 2,659
King Yuan Electronics Co. Ltd. 4,873,000 2,648
Waterland Financial Holdings Co. Ltd. 8,753,472 2,647
Farglory Land Development Co. Ltd. 1,537,000 2,586
Yungtay Engineering Co. Ltd. 1,295,000 2,579

 

84


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Clevo Co. 1,944,176 2,539
Win Semiconductors Corp. 2,440,000 2,491
Highwealth Construction Corp. 1,763,000 2,447
* Yageo Corp. 8,418,000 2,435
Kenda Rubber Industrial Co. Ltd. 2,094,343 2,434
St. Shine Optical Co. Ltd. 186,000 2,429
Elan Microelectronics Corp. 1,571,000 2,427
* Wan Hai Lines Ltd. 4,898,325 2,395
Eternal Chemical Co. Ltd. 3,078,254 2,394
USI Corp. 3,177,105 2,390
Capital Securities Corp. 7,068,175 2,347
* Yang Ming Marine Transport Corp. 5,961,553 2,325
Prince Housing & Development Corp. 3,439,810 2,311
Kerry TJ Logistics Co. Ltd. 1,423,000 2,268
Taiwan Secom Co. Ltd. 1,055,000 2,245
Taiwan Hon Chuan Enterprise Co. Ltd. 1,037,629 2,207
China Motor Corp. 2,460,000 2,205
TXC Corp. 1,268,979 2,204
* King's Town Bank 3,182,000 2,175
TTY Biopharm Co. Ltd. 686,047 2,141
Coretronic Corp. 2,940,000 2,129
Transcend Information Inc. 846,363 2,127
Taichung Commercial Bank 6,718,430 2,125
YFY Inc. 5,142,515 2,093
Huaku Development Co. Ltd. 1,025,087 2,085
LCY Chemical Corp. 2,016,288 2,082
Zhen Ding Technology Holding Ltd. 780,100 2,060
Hey Song Corp. 1,731,000 2,023
Tong Hsing Electronic Industries Ltd. 568,259 1,970
China Synthetic Rubber Corp. 1,825,000 1,951
Vanguard International Semiconductor Corp. 3,003,000 1,945
Eclat Textile Co. Ltd. 654,527 1,934
Far Eastern International Bank 5,226,496 1,923
Sino-American Silicon Products Inc. 1,983,428 1,914
* Sanyang Industry Co. Ltd. 3,006,540 1,912
Grand Pacific Petrochemical 3,684,000 1,896
Dynapack International Technology Corp. 521,000 1,890
Tainan Spinning Co. Ltd. 4,235,260 1,868
Gigabyte Technology Co. Ltd. 2,265,000 1,867
* Ta Chong Bank Ltd. 5,897,780 1,850
Faraday Technology Corp. 1,509,110 1,846
Makalot Industrial Co. Ltd. 606,000 1,829
Goldsun Development & Construction Co. Ltd. 5,190,830 1,828
* Tatung Co. Ltd. 7,886,058 1,809
Ton Yi Industrial Corp. 3,162,850 1,780
Shinkong Synthetic Fibers Corp. 5,717,451 1,753
Shin Zu Shing Co. Ltd. 501,000 1,730
* President Securities Corp. 3,200,926 1,724
G Tech Optoelectronics Corp. 696,334 1,687
Wei Chuan Foods Corp. 1,582,000 1,683
* Winbond Electronics Corp. 12,191,000 1,641
Solar Applied Materials Technology Co. 1,471,740 1,640
Formosa International Hotels Corp. 153,385 1,639
* CMC Magnetics Corp. 10,809,000 1,611
Career Technology MFG. Co. Ltd. 1,236,000 1,601
MIN AIK Technology Co. Ltd. 591,000 1,592
Airtac International Group 336,000 1,573
* Medigen Biotechnology Corp. 379,000 1,534
Chin-Poon Industrial Co. 1,398,000 1,518
UPC Technology Corp. 2,943,955 1,516
Mitac International Corp. 4,580,995 1,514
Great Wall Enterprise Co. Ltd. 1,762,939 1,507
Everlight Electronics Co. Ltd. 1,444,497 1,505
LITE-ON IT Corp. 1,792,393 1,502

 

85


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Cathay Real Estate Development Co. Ltd. 3,263,000 1,501
Chong Hong Construction Co. 654,732 1,497
* China Manmade Fibers Corp. 4,447,000 1,496
* Qisda Corp. 6,913,880 1,489
Cheng Loong Corp. 3,711,600 1,486
Compeq Manufacturing Co. 4,008,000 1,479
Radium Life Tech Co. Ltd. 2,378,095 1,479
Shihlin Electric & Engineering Corp. 1,238,000 1,470
* Ho Tung Chemical Corp. 2,956,396 1,467
Wistron NeWeb Corp. 983,236 1,462
Taiwan Surface Mounting Technology Co. Ltd. 978,301 1,451
BES Engineering Corp. 5,873,000 1,434
WT Microelectronics Co. Ltd. 1,177,824 1,424
Gloria Material Technology Corp. 1,737,404 1,366
China Bills Finance Corp. 3,771,000 1,348
Micro-Star International Co. Ltd. 2,972,000 1,342
Genius Electronic Optical Co. Ltd. 197,709 1,324
Feng TAY Enterprise Co. Ltd. 1,177,250 1,321
ALI Corp. 1,205,000 1,306
Sigurd Microelectronics Corp. 1,574,000 1,305
D-Link Corp. 2,293,000 1,286
Ability Enterprise Co. Ltd. 1,429,000 1,285
Jih Sun Financial Holdings Co. Ltd. 4,896,259 1,276
Cyberlink Corp. 351,489 1,268
* Pan-International Industrial 1,522,810 1,256
Tong Yang Industry Co. Ltd. 1,557,587 1,255
ITEQ Corp. 1,194,140 1,248
Senao International Co. Ltd. 383,000 1,246
Gemtek Technology Corp. 1,241,564 1,223
Ambassador Hotel 1,181,000 1,218
Evergreen International Storage & Transport Corp. 1,961,000 1,210
Microbio Co. Ltd. 1,229,693 1,207
Hung Sheng Construction Co. Ltd. 2,211,000 1,195
Masterlink Securities Corp. 4,082,000 1,191
Lien Hwa Industrial Corp. 1,869,767 1,172
* Union Bank Of Taiwan 3,418,480 1,170
Huang Hsiang Construction Co. 493,000 1,164
Taiwan PCB Techvest Co. Ltd. 840,610 1,162
Test-Rite International Co. Ltd. 1,552,314 1,150
Taiwan Sogo Shin Kong SEC 999,000 1,130
Elite Material Co. Ltd. 1,139,965 1,126
* Inotera Memories Inc. 8,282,002 1,123
Pixart Imaging Inc. 541,711 1,120
* Compal Communications Inc. 1,254,000 1,117
ICP Electronics Inc. 895,700 1,113
Test Research Inc. 680,871 1,113
Formosan Rubber Group Inc. 1,623,000 1,097
Shinkong Textile Co. Ltd. 913,000 1,096
* Ritek Corp. 10,705,000 1,094
Taiwan TEA Corp. 2,245,000 1,086
Mercuries & Associates Ltd. 1,266,335 1,082
* Formosa Epitaxy Inc. 1,629,000 1,068
China Metal Products 1,164,081 1,059
Zinwell Corp. 1,311,000 1,058
Rich Development Co. Ltd. 2,157,356 1,045
Sincere Navigation Corp. 1,243,000 1,042
TA Chen Stainless Pipe 2,150,000 1,041
Grape King Industrial Co. 450,000 1,038
King Slide Works Co. Ltd. 185,000 1,037
Global Unichip Corp. 325,000 1,030
Accton Technology Corp. 2,069,800 1,026
* Taiwan Land Development Corp. 2,628,383 1,023
Visual Photonics Epitaxy Co. Ltd. 970,750 1,017
Yieh Phui Enterprise Co. Ltd. 3,642,114 1,014

 

86


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Asia Polymer Corp. 1,245,300 995
* Motech Industries Inc. 1,285,100 990
PChome Online Inc. 216,495 979
Sinyi Realty Co. 729,704 976
Hung Poo Real Estate Development Corp. 1,058,946 975
* Gintech Energy Corp. 1,351,149 970
Nan Ya Printed Circuit Board Corp. 837,059 960
* Phytohealth Corp. 616,299 959
Lealea Enterprise Co. Ltd. 2,730,684 956
Kindom Construction Co. 1,479,000 949
* Taiwan Life Insurance Co. Ltd. 1,587,100 941
CSBC Corp. Taiwan 1,617,100 941
Young Fast Optoelectronics Co. Ltd. 547,143 937
Everlight Chemical Industrial Corp. 1,543,370 934
Alpha Networks Inc. 1,466,000 933
Tsann Kuen Enterprise Co. Ltd. 449,000 928
AcBel Polytech Inc. 1,416,000 920
* Long Bon International Co. Ltd. 1,405,000 918
Chung Hsin Electric & Machinery Manufacturing Corp. 1,737,000 912
Global Mixed Mode Technology Inc. 282,000 908
Kinpo Electronics 4,499,000 905
Holy Stone Enterprise Co. Ltd. 1,107,000 894
International Games System Co. Ltd. 249,000 891
Wisdom Marine Lines Co. Ltd. 678,916 887
Apex Biotechnology Corp. 355,717 886
* Chung Hung Steel Corp. 3,509,240 885
National Petroleum Co. Ltd. 882,000 884
Federal Corp. 1,370,085 884
YungShin Global Holding Corp. 649,000 880
* Unity Opto Technology Co. Ltd. 1,082,409 879
Taiwan Cogeneration Corp. 1,361,550 873
Taiwan Acceptance Corp. 401,000 861
Wah Lee Industrial Corp. 670,000 857
* Asia Optical Co. Inc. 941,000 857
KEE TAI Properties Co. Ltd. 1,296,740 843
* Neo Solar Power Corp. 1,741,724 839
Ardentec Corp. 1,342,403 834
Sonix Technology Co. Ltd. 673,000 832
Great Taipei Gas Co. Ltd. 1,272,000 829
King's Town Construction Co. Ltd. 853,854 823
Greatek Electronics Inc. 1,079,000 821
Lumax International Corp. Ltd. 430,430 817
* Kwong Fong Industries 1,457,000 802
Sercomm Corp. 596,000 801
Depo Auto Parts Ind Co. Ltd. 383,000 799
* HannsTouch Solution Inc. 2,865,000 797
Forhouse Corp. 1,634,000 796
OptoTech Corp. 2,143,000 795
Yem Chio Co. Ltd. 1,114,762 791
* HannStar Display Corp. 10,011,000 790
Lotes Co. Ltd. 262,000 787
China Electric Manufacturing Corp. 1,340,000 781
Rechi Precision Co. Ltd. 1,083,117 772
Chia Hsin Cement Corp. 1,698,112 764
Coxon Precise Industrial Co. Ltd. 401,810 761
A-DATA Technology Co. Ltd. 769,000 753
* Silicon Integrated Systems Corp. 2,056,000 752
Pacific Hospital Supply Co. Ltd. 256,326 747
Silitech Technology Corp. 502,010 746
* Shihlin Paper Corp. 486,000 743
Topco Scientific Co. Ltd. 501,060 740
Youngtek Electronics Corp. 357,841 735
Asia Plastic Recycling Holding Ltd. 245,274 733
Kuoyang Construction Co. Ltd. 1,586,000 719

 

87


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Parade Technologies Ltd. 83,000 716
Kinik Co. 524,000 713
CyberTAN Technology Inc. 1,022,000 713
* Via Technologies Inc. 1,539,500 705
Holtek Semiconductor Inc. 711,000 703
Excelsior Medical Co. Ltd. 385,000 703
Syncmold Enterprise Corp. 407,000 701
Firich Enterprises Co. Ltd. 606,670 700
Taiflex Scientific Co. Ltd. 669,852 699
Merry Electronics Co. Ltd. 589,050 695
Systex Corp. 658,000 695
Altek Corp. 1,403,648 689
Entire Technology Co. Ltd. 474,617 687
Sampo Corp. 2,215,000 685
Thye Ming Industrial Co. Ltd. 718,000 682
Nien Hsing Textile Co. Ltd. 994,725 681
Elitegroup Computer Systems Co. Ltd. 2,514,000 680
* Lextar Electronics Corp. 857,545 677
ASROCK Inc. 195,000 674
Continental Holdings Corp. 1,875,000 674
Chimei Materials Technology Corp. 701,269 673
E-LIFE MALL Corp. 301,000 672
Soft-World International Corp. 438,620 668
Johnson Health Tech Co. Ltd. 274,540 666
China Chemical & Pharmaceutical Co. Ltd. 1,052,000 656
Sinbon Electronics Co. Ltd. 741,000 650
United Integrated Services Co. Ltd. 739,000 648
Great China Metal Industry 589,000 646
Taisun Enterprise Co. Ltd. 1,209,807 645
Unizyx Holding Corp. 1,560,000 635
FSP Technology Inc. 716,478 632
Sinon Corp. 1,432,000 627
Sirtec International Co. Ltd. 563,000 625
I-Sheng Electric Wire & Cable Co. Ltd. 462,000 624
Universal Cement Corp. 1,307,000 624
Xxentria Technology Materials Corp. 417,137 622
* AGV Products Corp. 2,001,265 616
Hsin Kuang Steel Co. Ltd. 1,073,000 615
Taiwan Fire & Marine Insurance Co. 876,000 614
Capella Microsystems Taiwan Inc. 96,761 607
GeoVision Inc. 161,264 606
Gigastorage Corp. 1,152,096 606
Advanced International Multitech Co. Ltd. 461,000 604
Weikeng Industrial Co. Ltd. 862,700 601
Darfon Electronics Corp. 1,052,000 597
* Pihsiang Machinery Manufacturing Co. Ltd. 504,000 596
Elite Semiconductor Memory Technology Inc. 898,000 595
Getac Technology Corp. 1,315,000 593
* Taiwan Styrene Monomer 2,341,000 593
Kinko Optical Co. Ltd. 449,000 593
* WUS Printed Circuit Co. Ltd. 1,456,000 590
Nantex Industry Co. Ltd. 920,031 587
Lingsen Precision Industries Ltd. 1,215,000 586
Flytech Technology Co. Ltd. 281,903 584
Aurora Corp. 389,000 584
* Genesis Photonics Inc. 856,161 584
Taiwan Paiho Ltd. 1,059,300 578
* China General Plastics Corp. 1,306,000 576
* Integrated Memory Logic Ltd. 174,224 574
YC INOX Co. Ltd. 1,088,000 573
Taiwan Sakura Corp. 1,071,440 572
* Jess-Link Products Co. Ltd. 727,458 572
* Shining Building Business Co. Ltd. 822,420 570
Sesoda Corp. 536,000 567

 

88


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Namchow Chemical Industrial Ltd. 593,000 566
Shinkong Insurance Co. Ltd. 886,000 565
CHC Resources Corp. 356,000 565
Zeng Hsing Industrial Co. Ltd. 167,912 565
Formosan Union Chemical 1,008,689 563
Vivotek Inc. 179,036 560
Asia Vital Components Co. Ltd. 1,221,148 559
* ITE Technology Inc. 783,000 558
Shih Wei Navigation Co. Ltd. 674,000 556
* Chenming Mold Industry Corp. 605,000 555
Zig Sheng Industrial Co. Ltd. 1,812,116 553
* Chung Hwa Pulp Corp. 1,813,820 551
Unitech Printed Circuit Board Corp. 1,864,248 546
AV Tech Corp. 180,000 545
Aten International Co. Ltd. 364,000 541
Sanyo Electric Taiwan Co. Ltd. 535,000 541
Taiwan Prosperity Chemical Corp. 471,000 538
Phihong Technology Co. Ltd. 819,000 536
* Solartech Energy Corp. 1,096,450 536
* HUA ENG Wire & Cable 1,470,000 535
Sitronix Technology Corp. 427,000 535
Infortrend Technology Inc. 1,010,000 528
Chun Yuan Steel 1,395,653 528
Acme Electronics Corp. 460,237 520
Chinese Maritime Transport Ltd. 447,000 514
* Ocean Plastics Co. Ltd. 630,000 507
Ta Ya Electric Wire & Cable 2,185,950 503
San Fang Chemical Industry Co. Ltd. 637,261 502
Chien Kuo Construction Co. Ltd. 1,119,100 498
L&K Engineering Co. Ltd. 527,000 497
* Green Energy Technology Inc. 1,035,405 496
* Leofoo Development Co. 955,441 493
ACES Electronic Co. Ltd. 373,000 488
* Li Peng Enterprise Co. Ltd. 1,725,657 488
Advanced Ceramic X Corp. 177,000 482
* Sunplus Technology Co. Ltd. 1,721,000 480
* Walsin Technology Corp. 2,160,954 479
Young Optics Inc. 217,000 479
eMemory Technology Inc. 252,225 479
Yung Chi Paint & Varnish Manufacturing Co. Ltd. 253,000 478
* Chunghwa Picture Tubes 15,190,351 472
Tong-Tai Machine & Tool Co. Ltd. 626,810 467
Champion Building Materials Co. Ltd. 1,334,000 461
* I-Chiun Precision Industry Co. Ltd. 769,000 460
San Shing Fastech Corp. 316,000 460
Chang Wah Electromaterials Inc. 158,208 459
Hu Lane Associate Inc. 289,290 458
Sporton International Inc. 201,754 458
Newmax Technology Co. Ltd. 324,370 456
Adlink Technology Inc. 446,717 455
China Steel Structure Co. Ltd. 459,000 451
Quanta Storage Inc. 751,000 446
Hannstar Board Corp. 946,988 443
Macroblock Inc. 119,000 442
Tung Thih Electronic Co. Ltd. 191,540 441
KD Holding Corp. 92,000 441
Acter Co. Ltd. 123,229 439
Tainan Enterprises Co. Ltd. 450,000 437
Lite-On Semiconductor Corp. 1,023,000 437
Giga Solar Materials Corp. 64,559 435
* Gold Circuit Electronics Ltd. 2,298,000 435
* Pan Jit International Inc. 1,307,000 433
Southeast Cement Co. Ltd. 993,000 433
Wei Mon Industry Co. Ltd. 900,116 428

 

89


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Concord Securities Corp. 2,052,219 426
Taiyen Biotech Co. Ltd. 637,000 425
ENG Electric Co. Ltd. 519,135 425
* Ichia Technologies Inc. 1,095,000 423
Wafer Works Corp. 1,066,925 422
Jentech Precision Industrial Co. Ltd. 205,354 416
Orise Technology Co. Ltd. 373,000 414
Taiwan Semiconductor Co. Ltd. 964,000 412
Longwell Co. 405,000 410
Ubright Optronics Corp. 86,250 407
Taiwan Navigation Co. Ltd. 515,000 404
LES Enphants Co. Ltd. 572,461 396
* Advanced Wireless Semiconductor Co. 592,503 391
G Shank Enterprise Co. Ltd. 694,000 390
Gamania Digital Entertainment Co. Ltd. 455,000 387
Actron Technology Corp. 172,882 385
* Eastern Media International Corp. 2,917,000 384
DA CIN Construction Co. Ltd. 590,000 382
Ways Technical Corp. Ltd. 208,000 379
Avermedia Technologies 804,000 372
* Cosmos Bank Taiwan 1,542,000 369
Tah Hsin Industrial Co. Ltd. 391,000 368
* Bank of Kaohsiung 1,239,049 356
Taiwan Pulp & Paper Corp. 1,212,800 355
Run Long Construction Co. Ltd. 289,000 343
MPI Corp. 230,000 339
TA-I Technology Co. Ltd. 596,391 339
Fulltech Fiber Glass Corp. 769,228 338
Episil Technologies Inc. 1,315,000 338
Kaulin Manufacturing Co. Ltd. 599,000 336
Wah Hong Industrial Corp. 239,000 330
ShenMao Technology Inc. 305,839 330
Edison Opto Corp. 305,300 329
Sunonwealth Electric Machine Industry Co. Ltd. 549,000 329
Alcor Micro Corp. 301,000 326
* Long Chen Paper Co. Ltd. 1,243,000 318
* Adimmune Corp. 306,000 317
Sunrex Technology Corp. 756,000 317
* E-Ton Solar Tech Co. Ltd. 1,039,000 317
Microlife Corp. 196,000 316
Mirle Automation Corp. 497,387 316
* Etron Technology Inc. 1,369,059 314
Formosa Advanced Technologies Co. Ltd. 592,000 314
Globe Union Industrial Corp. 725,000 314
* KYE Systems Corp. 1,074,000 308
Ve Wong Corp. 461,000 304
Insyde Software Corp. 103,000 304
Global Brands Manufacture Ltd. 879,462 300
AVY Precision Technology Inc. 172,600 295
Topco Technologies Corp. 145,627 293
SDI Corp. 442,000 291
APCB Inc. 454,000 290
First Hotel 445,452 288
* Tyntek Corp. 1,324,980 287
* Orient Semiconductor Electronics Ltd. 2,078,000 284
Ttet Union Corp. 163,000 278
Well Shin Technology Co. Ltd. 199,360 273
WAN HWA Enterprise Co. 544,040 266
Arcadyan Technology Corp. 314,123 256
Arima Communications Corp. 642,703 246
Holiday Entertainment Co. Ltd. 178,000 246
* Walton Advanced Engineering Inc. 928,000 242
* BenQ Materials Corp. 674,478 237
Chinese Gamer International Corp. 140,000 234

 

90


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
CyberPower Systems Inc. 128,000 230
* Tang Eng Iron Works Co. Ltd. 241,000 222
* Huga Optotech Inc. 677,890 218
Sheng Yu Steel Co. Ltd. 354,000 217
* Tekcore Co. Ltd. 552,000 216
Standard Chemical & Pharma 260,580 216
* Giantplus Technology Co. Ltd. 753,000 215
Global Lighting Technologies Inc. 167,000 208
Harvatek Corp. 522,300 196
Shiny Chemical Industrial Co. Ltd. 147,000 195
Thinking Electronic Industrial Co. Ltd. 204,000 194
* J Touch Corp. 278,395 185
TYC Brother Industrial Co. Ltd. 516,426 183
* Tatung Co. Ltd. GDR 38,879 179
* DelSolar Co. Ltd. 479,842 168
ACHEM TECHNOLOGY Corp. 376,542 166
Skymedi Corp. 163,996 152
Bright Led Electronics Corp. 339,000 138
LAN FA Textile 508,680 135
Star Comgistic Capital Co. Ltd. 362,000 130
Sunspring Metal Corp. 140,000 129
Ta Yih Industrial Co. Ltd. 73,000 120
Fortune Electric Co. Ltd. 288,000 117
* Powerchip Technology Corp. 7,110,984 61
* San Chih Semiconductor Co. 88,451 58
* Chang Wah Electromaterials Inc. Rights Exp. 11/08/2012 13,744 2
* ProMOS Technologies Inc. 5,975,000
    2,005,138
Thailand (0.6%)    
Kasikornbank PCL (Foreign) 5,082,600 29,722
PTT PCL (Foreign) 2,366,115 24,463
Siam Commercial Bank PCL (Foreign) 4,402,600 23,016
CP ALL PCL (Foreign) 17,677,770 22,857
Bangkok Bank PCL (Foreign) 3,657,000 21,495
PTT Exploration & Production PCL (Foreign) 3,341,355 18,027
* Kasikornbank PCL 3,019,500 17,558
Siam Cement PCL (Foreign) 1,297,000 17,528
Advanced Info Service PCL (Foreign) 2,574,600 16,540
* PTT PCL 1,354,600 14,005
* Bangkok Bank PCL (Local) 2,407,100 13,841
* Siam Commercial Bank PCL (Local) 2,372,700 12,404
Charoen Pokphand Foods PCL (Foreign) 8,304,300 9,524
* PTT Exploration and Production PCL (Local) 1,703,400 9,190
Krung Thai Bank PCL (Foreign) 14,913,137 8,767
* Advanced Info Service PCL (Local) 1,289,400 8,284
PTT Global Chemical PCL 4,225,236 8,171
Siam Cement PCL NVDR 570,000 6,932
Charoen Pokphand Foods PCL 5,200,200 5,964
PTT Global Chemical PCL 2,968,100 5,879
Bank of Ayudhya PCL (Foreign) 5,379,779 5,233
Thai Oil PCL (Foreign) 2,328,100 5,044
BEC World PCL (Foreign) 2,370,905 4,545
IRPC PCL (Foreign) 28,064,000 3,919
* Bumrungrad Hospital PCL 1,555,400 3,835
Indorama Ventures PCL 4,205,648 3,647
* BEC World PCL 1,891,300 3,625
* True Corp. PCL 21,695,900 3,599
Thanachart Capital PCL 2,872,500 3,452
* Minor International PCL 5,745,740 3,421
Glow Energy PCL (Foreign) 1,446,845 3,367
Banpu PCL 253,740 3,311
* Robinson Department Store PCL 1,436,900 2,838
* Ratchaburi Electricity Generating Holding PCL (Local) 1,584,300 2,791
* Banpu PCL (Local) 210,650 2,685

 

91


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Thai Oil PCL 1,218,000 2,639
* Electricity Generating PCL 574,600 2,452
Jasmine International PCL 15,089,900 2,373
* Bank of Ayudhya PCL (Local) 2,414,200 2,331
* Tisco Financial Group PCL 1,502,000 2,187
* Thai Airways International PCL 2,902,000 2,182
* IRPC PCL 15,565,300 2,173
Kiatnakin Bank PCL (Foreign) 1,456,543 2,111
* Hemaraj Land and Development PCL 20,183,200 2,064
* Delta Electronics Thailand PCL 2,151,700 2,047
BTS Group Holdings PCL 11,555,648 2,036
* CP ALL PCL (Local) 1,479,400 1,913
* Sino Thai Engineering & Construction PCL 2,689,900 1,873
* Indorama Ventures PCL 2,150,100 1,864
Pruksa Real Estate PCL 2,710,500 1,731
* Glow Energy PCL 731,500 1,702
* Supalai PCL 2,613,600 1,631
Esso Thailand PCL 4,647,300 1,630
* Central Plaza Hotel PCL 2,469,500 1,567
Hana Microelectronics PCL (Foreign) 2,059,900 1,479
* Sri Trang Agro-Industry PCL 2,860,800 1,467
* Thai Vegetable Oil PCL 1,774,600 1,421
* Bangkok Expressway PCL 1,557,700 1,408
Bangchak Petroleum PCL 1,580,100 1,348
Major Cineplex Group PCL 2,057,000 1,318
* Thaicom PCL 1,800,000 1,286
* Bangkokland PCL 28,904,700 1,244
LPN Development PCL 2,078,700 1,228
* Amata Corp. PCL 2,395,900 1,201
Bangkok Life Assurance PCL 854,500 1,174
TPI Polene PCL 2,212,600 1,014
* Dynasty Ceramic PCL 644,900 997
* STP & I PCL 517,400 960
* Khon Kaen Sugar Industry PCL 2,131,700 936
Asian Property Development PCL (Foreign) 3,223,440 912
Quality Houses PCL 12,774,016 890
Bangkok Chain Hospital PCL 2,773,960 846
* Italian-Thai Development PCL 6,406,200 842
* CalComp Electronics Thailand PCL 9,670,800 839
Thai Tap Water Supply PCL 3,214,600 827
Siam Global House PCL 1,497,360 811
Ticon Industrial Connection PCL 1,820,700 778
* Polyplex PCL 1,715,300 770
* Sahaviriya Steel Industries PCL 33,538,460 720
* Thoresen Thai Agencies PCL 1,368,000 712
Sansiri PCL (Foreign) 7,035,464 705
* Thai Tap Water Supply PCL 2,516,500 648
* Siamgas & Petrochemicals PCL 1,279,000 603
* MCOT PCL 545,500 595
* SC Asset Corp. PCL 937,100 585
* Energy Earth PCL 2,599,300 579
* CH Karnchang PCL 1,968,700 554
Bangkok Life Assurance PCL 402,900 554
* Somboon Advance Technology PCL 546,400 503
* Vinythai PCL 820,300 491
Sansiri PCL (Local) 4,760,200 477
Siam Future Development PCL 1,902,200 471
LH Financial Group PCL 10,182,053 455
* Precious Shipping PCL 1,017,700 444
Bangkok Chain Hospital PCL 1,430,400 435
Siam Global House PCL 774,300 418
* G Steel PCL 36,098,400 412
* Samart Corp. PCL 1,072,900 392
* GFPT PCL 1,452,800 345

 

92


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Quality Houses PCL 4,528,600 315
* G J Steel PCL (Local) 66,137,800 302
Samart Corp. PCL 810,500 296
* Phatra Securities PCL 265,800 291
Hana Microelectronics PCL 345,500 247
* Asian Property Development PCL 715,600 202
* Krung Thai Bank PCL 326,800 192
* Kiatnakin Bank PCL 125,700 182
* Rojana Industrial Park PCL Warrants Exp. 07/18/2016 197,933 37
    427,143
Turkey (0.5%)    
Turkiye Garanti Bankasi AS 10,011,061 47,832
Akbank TAS 7,835,286 37,805
Turkiye Is Bankasi 6,849,034 23,321
BIM Birlesik Magazalar AS 463,217 21,518
* Turkcell Iletisim Hizmetleri AS 3,336,004 20,382
Haci Omer Sabanci Holding AS (Bearer) 3,550,525 18,749
Tupras Turkiye Petrol Rafinerileri AS 543,132 13,284
Anadolu Efes Biracilik Ve Malt Sanayii AS 872,851 13,110
KOC Holding AS 2,767,116 13,000
Turkiye Halk Bankasi AS 1,344,150 11,859
* Yapi ve Kredi Bankasi AS 3,768,920 9,681
Turk Telekomunikasyon AS 2,288,192 8,944
Turkiye Vakiflar Bankasi Tao 3,200,109 7,538
Arcelik AS 1,016,538 6,719
Coca-Cola Icecek AS 269,803 5,243
* Turk Hava Yollari 2,071,408 4,798
Eregli Demir ve Celik Fabrikalari TAS 4,002,129 4,755
Enka Insaat ve Sanayi AS 1,548,012 4,111
Koza Altin Isletmeleri AS 186,683 4,068
Emlak Konut Gayrimenkul Yatirim Ortakligi AS 2,697,161 4,018
TAV Havalimanlari Holding AS 710,458 3,529
Ford Otomotiv Sanayi AS 296,015 3,036
Turkiye Sinai Kalkinma Bankasi AS 2,364,839 2,719
Turkiye Sise ve Cam Fabrikalari AS 1,807,337 2,642
* Asya Katilim Bankasi AS 2,078,763 2,333
* Ihlas Holding AS 2,845,305 2,079
* Koza Anadolu Metal Madencilik Isletmeleri AS 778,424 1,976
Ulker Biskuvi Sanayi AS 409,773 1,859
Yazicilar Holding AS Class A 211,683 1,694
Aselsan Elektronik Sanayi Ve Ticaret AS 418,109 1,582
* Ipek Dogal Enerji Kaynaklari Ve Uretim AS 617,233 1,557
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS 2,105,411 1,550
* Dogan Sirketler Grubu Holding AS 3,551,534 1,545
* Sekerbank TAS 1,494,848 1,276
Yapi Kredi Sigorta AS 141,769 1,275
Dogus Otomotiv Servis ve Ticaret AS 337,773 1,256
* Trakya Cam Sanayi AS 922,590 1,129
* Albaraka Turk Katilim Bankasi AS 1,288,898 1,021
Park Elektrik Uretim Madencilik Sanayi ve Ticaret AS 277,886 1,020
Aksa Akrilik Kimya Sanayii 378,122 993
Cimsa Cimento Sanayi VE Tica 205,400 971
Bizim Toptan Satis Magazalari AS 70,522 966
Is Gayrimenkul Yatirim Ortakligi AS 1,147,684 928
Akcansa Cimento AS 184,925 911
* Akfen Holding AS 177,868 901
Selcuk Ecza Deposu Ticaret ve Sanayi A.S. 718,368 862
Aksigorta AS 754,928 851
* NET Holding AS 848,575 844
Akmerkez Gayrimenkul Yatirim Ortakligi AS 77,739 804
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS 754,417 800
* Izmir Demir Celik Sanayi AS 344,237 781
Kartonsan Karton Sanayi ve Ticaret AS 5,744 773
* Dogan Yayin Holding AS 2,023,846 734

 

93


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Otokar Otomotiv Ve Savunma Sanayi A.S. 32,800 726
Alarko Holding AS 305,020 708
Konya Cimento Sanayii AS 4,023 696
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class A 846,930 695
Bagfas Bandirma Gubre Fabrik 21,747 671
Anadolu Hayat Emeklilik AS 263,952 660
* Gubre Fabrikalari TAS 88,019 617
Bursa Cimento Fabrikasi AS 227,824 605
Saf Gayrimenkul Yatirim Ortakligi AS 1,082,702 604
Netas Telekomunikasyon AS 101,940 591
* Anadolu Cam Sanayii AS 394,851 591
Baticim Bati Anadolu Cimento Sanayii AS 156,775 588
Borusan Mannesmann Boru Sanayi ve Ticaret AS 37,645 565
Mardin Cimento Sanayii ve Ticaret AS 194,365 557
Goodyear Lastikleri TAS 18,312 536
Sinpas Gayrimenkul Yatirim Ortakligi AS 749,726 527
* Anadolu Anonim Tuerk Sigorta Sirketi 1,024,508 526
Pinar SUT Mamulleri Sanayii AS 63,393 518
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class B 439,659 510
Turcas Petrol AS 307,232 497
Eczacibasi Yatirim Holding Ortakligi AS 149,717 490
Vakif Gayrimenkul Yatirim Ortakligi AS 213,706 478
Adana Cimento Sanayii TAS Class A 231,838 457
* Akenerji Elektrik Uretim AS 391,149 456
* TAT Konserve Sanayii AS 323,068 436
* Zorlu Enerji Elektrik Uretim AS 734,556 434
Goltas Goller Bolgesi Cimento Sanayi ve Ticaret A.S. 13,466 404
* Galatasaray Sportif Sinai ve Ticari Yatirimlar AS 17,654 389
* Vestel Elektronik Sanayi ve Ticaret AS 326,823 328
Fenerbahce Futbol ASA 13,524 300
* Deva Holding AS 248,817 281
* Hurriyet Gazetecilik AS 605,721 274
* Is Finansal Kiralama AS 483,997 264
* Vestel Beyaz Esya Sanayi ve Ticaret AS 183,899 263
* Afyon Cimento Sanayi TAS 6,427 257
* Boyner Buyuk Magazacilik 101,810 234
Is Yatirim Menkul Degerler AS 236,976 230
* Polyester Sanayi AS 329,554 221
* Soda Sanayii AS 132,115 205
* Celebi Hava Servisi AS 16,800 192
* Mondi Tire Kutsan Kagit Ve Ambalaj Sanayii AS 16,720 10
    346,523
United Kingdom (15.7%)    
HSBC Holdings plc 78,998,800 778,878
BP plc 82,761,657 591,056
Vodafone Group plc 214,655,168 582,930
GlaxoSmithKline plc 21,819,164 488,916
Royal Dutch Shell plc Class A 12,865,183 441,443
British American Tobacco plc 8,507,235 421,959
Royal Dutch Shell plc Class B 11,501,413 406,836
Diageo plc 10,897,542 311,547
BHP Billiton plc 9,186,996 294,457
Rio Tinto plc 5,830,488 291,273
BG Group plc 14,775,455 274,336
AstraZeneca plc 5,495,518 254,855
Standard Chartered plc 10,404,218 246,338
Unilever plc 5,582,818 208,258
Barclays plc 50,555,691 186,943
Anglo American plc (London Shares) 6,047,288 186,344
TESCO plc 34,978,060 180,993
SABMiller plc 4,157,003 178,412
National Grid plc 15,528,954 177,102
Reckitt Benckiser Group plc 2,830,664 171,495
Imperial Tobacco Group plc 4,331,150 163,803

 

94


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Prudential plc 11,104,959 152,512
Xstrata plc 9,146,596 144,896
* Lloyds Banking Group plc 183,714,572 120,978
Centrica plc 22,539,354 118,002
BT Group plc 33,938,185 116,633
Rolls-Royce Holdings plc 8,143,831 112,544
Royal Dutch Shell plc Class A (Amsterdam Shares) 3,211,725 110,103
SSE plc 4,105,295 96,020
Glencore International plc 16,549,584 91,838
Compass Group plc 8,165,615 89,725
Tullow Oil plc 3,942,253 89,564
Experian plc 4,384,656 75,859
Pearson plc 3,546,857 71,317
BAE Systems plc 14,115,185 71,243
WPP plc 5,414,515 69,985
Shire plc 2,444,861 68,749
Aviva plc 12,689,637 67,959
ARM Holdings plc 5,995,781 64,608
Old Mutual plc 21,199,904 59,010
Legal & General Group plc 25,504,868 55,288
British Sky Broadcasting Group plc 4,750,575 54,370
Wolseley plc 1,240,133 54,365
Reed Elsevier plc 5,289,252 51,810
Standard Life plc 10,248,812 48,393
Kingfisher plc 10,316,863 48,304
Randgold Resources Ltd. 379,616 45,379
Marks & Spencer Group plc 6,991,188 44,496
Land Securities Group plc 3,395,626 44,127
WM Morrison Supermarkets plc 10,178,497 44,071
Next plc 718,409 41,414
Smith & Nephew plc 3,907,584 41,324
* Royal Bank of Scotland Group plc 9,075,952 40,525
Aggreko plc 1,164,855 40,514
Burberry Group plc 1,904,049 35,926
Antofagasta plc 1,711,171 34,813
Associated British Foods plc 1,545,156 34,579
Capita plc 2,839,874 33,182
Johnson Matthey plc 889,256 32,359
United Utilities Group plc 2,957,874 32,340
Intertek Group plc 697,770 31,806
Carnival plc 789,599 31,452
British Land Co. plc 3,675,420 31,395
J Sainsbury plc 5,321,071 30,509
Whitbread plc 774,952 29,451
* InterContinental Hotels Group plc 1,184,551 29,308
Smiths Group plc 1,710,305 29,224
Petrofac Ltd. 1,124,991 29,207
RSA Insurance Group plc 15,394,291 27,943
Sage Group plc 5,524,775 27,749
Rexam plc 3,825,343 27,621
Severn Trent plc 1,033,392 26,801
Weir Group plc 925,476 26,081
G4S plc 6,112,163 25,724
Babcock International Group plc 1,557,438 24,619
Fresnillo plc 780,510 24,231
AMEC plc 1,406,419 24,131
Bunzl plc 1,438,907 23,835
Tate & Lyle plc 2,023,102 23,713
Hammerson plc 3,088,799 23,554
GKN plc 6,736,713 22,658
ITV plc 16,060,907 22,486
IMI plc 1,399,665 21,611
Resolution Ltd. 6,046,271 21,317
Meggitt plc 3,405,810 21,242

 

95


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Croda International plc 588,492 20,953
  Melrose plc 5,222,364 20,343
  John Wood Group plc 1,452,869 19,969
  Serco Group plc 2,165,664 19,824
  Aberdeen Asset Management plc 3,747,027 19,653
  Travis Perkins plc 1,064,729 18,606
  Pennon Group plc 1,572,654 18,217
  Inmarsat plc 1,958,251 17,940
  Mondi plc 1,589,956 17,527
  Informa plc 2,620,733 16,964
  Persimmon plc 1,312,113 16,883
  William Hill plc 3,061,499 16,728
  Cobham plc 4,691,433 16,310
  Admiral Group plc 881,195 15,791
  Balfour Beatty plc 2,977,347 15,177
  3i Group plc 4,235,117 14,763
  Drax Group plc 1,585,237 14,387
  Spectris plc 506,252 14,180
  Taylor Wimpey plc 14,076,345 13,913
  DS Smith plc 4,016,394 13,866
  Rotork plc 375,770 13,844
  Investec plc 2,326,636 13,720
  Aegis Group plc 3,551,055 13,487
* Berkeley Group Holdings plc 544,703 13,404
  Derwent London plc 399,219 13,285
  Provident Financial plc 598,208 13,259
  Ashtead Group plc 2,192,353 13,245
  Hiscox Ltd. 1,699,167 13,187
  Invensys plc 3,560,607 13,129
  Capital Shopping Centres Group plc 2,437,239 13,119
* Premier Oil plc 2,309,796 13,097
  Amlin plc 2,159,889 13,020
* Barratt Developments plc 4,240,769 13,000
  Telecity Group plc 871,205 12,691
  ICAP plc 2,386,377 12,555
  Inchcape plc 1,920,976 12,493
  Segro plc 3,233,329 12,398
  Hargreaves Lansdown plc 1,028,661 12,276
  Schroders plc (Voting Shares) 494,451 12,201
  UBM plc 1,069,049 12,086
  London Stock Exchange Group plc 760,621 12,002
  Cairn Energy plc 2,636,646 11,951
* ASOS plc 319,421 11,654
  Cookson Group plc 1,211,370 11,444
  Catlin Group Ltd. 1,497,796 11,415
  Ladbrokes plc 3,922,265 11,361
  Rightmove plc 435,495 11,338
  Rentokil Initial plc 7,869,035 11,201
  IG Group Holdings plc 1,585,167 11,162
^,* Gulf Keystone Petroleum Ltd. 3,641,723 11,048
  Halma plc 1,646,131 10,972
  Capital & Counties Properties plc 2,972,701 10,859
  Debenhams plc 5,531,873 10,710
  Spirax-Sarco Engineering plc 340,576 10,663
  Booker Group plc 6,429,542 10,646
  Kazakhmys plc 913,808 10,484
* Afren plc 4,690,238 10,461
  Great Portland Estates plc 1,372,423 10,364
  Man Group plc 7,954,882 10,109
  Lancashire Holdings Ltd. 710,312 9,905
  Shaftesbury plc 1,097,771 9,721
  Daily Mail & General Trust plc 1,253,170 9,667
  Aveva Group plc 295,345 9,504
  Carillion plc 1,880,786 9,361

 

96


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Ophir Energy plc 1,040,491 9,316
Greene King plc 953,954 9,153
QinetiQ Group plc 2,841,154 9,049
Ashmore Group plc 1,536,571 9,046
Close Brothers Group plc 641,893 8,783
Henderson Group plc 4,575,869 8,662
Bellway plc 527,706 8,626
Intermediate Capital Group plc 1,747,614 8,626
AZ Electronic Materials SA 1,500,811 8,609
Stagecoach Group plc 1,899,076 8,422
Vedanta Resources plc 456,866 8,395
Filtrona plc 904,959 8,384
Ultra Electronics Holdings plc 301,243 8,243
Victrex plc 346,261 7,981
Hays plc 6,022,410 7,941
* BTG plc 1,435,644 7,927
TUI Travel plc 1,920,601 7,793
Howden Joinery Group plc 2,796,101 7,687
Michael Page International plc 1,281,374 7,479
Mitie Group plc 1,585,029 7,468
De La Rue plc 433,583 7,415
Hikma Pharmaceuticals plc 591,689 7,067
easyJet plc 682,866 6,901
BBA Aviation plc 2,096,061 6,848
Jardine Lloyd Thompson Group plc 564,928 6,791
Spirent Communications plc 2,908,471 6,783
Berendsen plc 745,425 6,778
TalkTalk Telecom Group plc 2,204,258 6,766
Cable & Wireless Communications plc 11,095,326 6,718
PZ Cussons plc 1,228,044 6,716
* Imagination Technologies Group plc 906,550 6,697
Electrocomponents plc 1,923,323 6,618
Elementis plc 1,940,778 6,569
Home Retail Group plc 3,545,600 6,546
Hunting plc 535,536 6,487
Beazley plc 2,251,228 6,376
Firstgroup plc 2,070,518 6,376
International Personal Finance plc 1,119,523 6,289
Genus plc 259,929 6,123
^ Britvic plc 1,044,810 6,064
* Micro Focus International plc 646,300 5,995
^ Lonmin plc 715,698 5,939
Hochschild Mining plc 741,280 5,927
Eurasian Natural Resources Corp. plc 1,110,906 5,889
Millennium & Copthorne Hotels plc 701,824 5,695
WH Smith plc 566,433 5,684
Evraz plc 1,474,405 5,626
St. James's Place plc 872,305 5,601
Bwin.Party Digital Entertainment plc 2,849,105 5,535
Senior plc 1,746,031 5,487
Jupiter Fund Management plc 1,278,707 5,410
Paragon Group of Cos. plc 1,316,103 5,329
Restaurant Group plc 864,331 5,237
* Dixons Retail plc 15,652,630 5,222
* EnQuest plc 2,784,005 5,219
* Soco International plc 950,430 5,193
WS Atkins plc 449,238 5,181
National Express Group plc 1,869,104 5,141
Bodycote plc 833,655 5,090
* Sports Direct International plc 777,143 5,008
* Mitchells & Butlers plc 943,644 4,993
CSR plc 872,677 4,982
Fenner plc 847,454 4,951
Morgan Crucible Co. plc 1,210,512 4,946

 

97


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Marston's plc 2,496,351 4,944
Petropavlovsk plc 748,542 4,887
Halfords Group plc 873,535 4,883
RPC Group plc 707,185 4,839
Playtech Ltd. 690,940 4,723
Bovis Homes Group plc 570,005 4,719
* African Minerals Ltd. 1,058,326 4,681
Domino's Pizza Group plc 565,345 4,620
Regus plc 2,807,581 4,552
Renishaw plc 159,075 4,536
Abcam plc 724,616 4,510
* Centamin plc 4,345,364 4,476
Homeserve plc 1,233,184 4,398
Galliford Try plc 363,213 4,332
Dunelm Group plc 398,235 4,315
Premier Farnell plc 1,599,638 4,280
Chemring Group plc 835,056 4,238
Tullett Prebon plc 957,215 4,232
^ Betfair Group plc 337,631 4,102
SIG plc 2,406,621 4,077
Rathbone Brothers plc 190,449 3,984
Laird plc 1,151,232 3,911
Devro plc 731,132 3,876
United Drug plc 1,046,628 3,819
Savills plc 571,553 3,735
London & Stamford Property plc 2,008,042 3,725
N Brown Group plc 683,181 3,711
African Barrick Gold plc 539,751 3,701
JD Wetherspoon plc 451,279 3,657
Dignity plc 239,872 3,621
Go-Ahead Group plc 172,554 3,621
Synergy Health plc 240,399 3,605
Pace plc 1,192,909 3,581
RPS Group plc 946,597 3,575
Diploma plc 493,076 3,562
Interserve plc 558,659 3,520
Ferrexpo plc 1,036,130 3,499
Fidessa Group plc 160,028 3,436
Dairy Crest Group plc 590,987 3,408
Kier Group plc 163,761 3,407
Hansteen Holdings plc 2,827,730 3,401
Greggs plc 438,046 3,313
Grainger plc 1,843,530 3,288
* Salamander Energy plc 1,054,280 3,277
* Essar Energy plc 1,453,737 3,222
Telecom Plus plc 231,750 3,180
Unite Group plc 687,547 3,148
* Rockhopper Exploration plc 1,232,271 3,143
ITE Group plc 1,002,516 3,128
Brewin Dolphin Holdings plc 1,071,214 3,126
Phoenix Group Holdings 384,630 3,068
SDL plc 352,058 3,018
* Redrow plc 1,172,677 2,991
F&C Asset Management plc 1,829,547 2,927
Yule Catto & Co. plc 1,197,384 2,843
Big Yellow Group plc 504,401 2,787
Kcom Group plc 2,267,036 2,781
Spirit Pub Co. plc 2,813,866 2,751
* Amerisur Resources plc 3,622,117 2,746
* Colt Group SA 1,506,387 2,688
Keller Group plc 270,147 2,650
* Enterprise Inns plc 2,109,785 2,481
Workspace Group plc 502,768 2,480
Sportingbet plc 2,860,139 2,478

 

98


 

Vanguard® Total International Stock Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Euromoney Institutional Investor plc 190,738 2,466
  Cineworld Group plc 629,595 2,465
^,* Raven Russia Ltd. 2,336,534 2,451
* Petra Diamonds Ltd. 1,514,255 2,438
* Heritage Oil plc 779,268 2,438
  Northgate plc 592,876 2,423
  Dialight plc 133,577 2,400
  Cape plc 538,354 2,341
  Moneysupermarket.com Group plc 1,080,332 2,340
  ST Modwen Properties plc 712,213 2,321
  Computacenter plc 386,531 2,289
  Kentz Corp. Ltd. 339,844 2,261
  Shanks Group plc 1,708,531 2,260
  Stobart Group Ltd. 1,298,994 2,252
^,* Carpetright plc 199,115 2,218
^,* Songbird Estates plc 1,173,579 2,210
* Vectura Group plc 1,492,040 2,096
  Majestic Wine plc 271,555 2,075
  Darty plc 2,350,803 2,044
  Sthree plc 404,628 1,967
  Hill & Smith Holdings plc 326,049 1,961
^,* Avanti Communications Group plc 428,527 1,846
  Mears Group plc 382,061 1,814
^,* Sirius Minerals plc 5,154,877 1,808
* Xchanging plc 1,009,600 1,805
* Quintain Estates & Development plc 2,052,742 1,775
* Faroe Petroleum plc 721,099 1,774
  Primary Health Properties plc 316,255 1,758
^,* Xcite Energy Ltd. 1,022,692 1,707
  McBride plc 764,503 1,691
^,* Blinkx plc 1,444,181 1,675
  Morgan Sindall Group plc 154,526 1,650
  New World Resources plc 397,403 1,646
  Anglo Pacific Group plc 406,053 1,641
* Premier Foods plc 943,961 1,629
  John Menzies plc 164,165 1,606
^,* Ocado Group plc 1,493,238 1,562
^ Mothercare plc 345,466 1,550
* BowLeven plc 1,276,398 1,515
^,* Monitise plc 2,529,250 1,511
  Chesnara plc 494,217 1,498
* Innovation Group plc 4,212,102 1,498
* Wolfson Microelectronics plc 432,013 1,453
* SuperGroup plc 133,970 1,447
* Pendragon plc 6,354,736 1,436
  Development Securities plc 527,833 1,363
^,* Pan African Resources plc 4,967,322 1,345
  TT electronics plc 659,433 1,333
* Kofax plc 288,283 1,314
  Highland Gold Mining Ltd. 777,454 1,312
* IQE plc 2,520,404 1,304
  Speedy Hire plc 2,422,012 1,262
  Helical Bar plc 404,922 1,261
* Falkland Oil & Gas Ltd. 1,255,604 1,260
* London Mining plc 506,311 1,249
  Hargreaves Services plc 104,619 1,226
  Lookers plc 992,795 1,217
* Gem Diamonds Ltd. 443,307 1,209
^,* Thomas Cook Group plc 3,580,836 1,186
* Valiant Petroleum plc 170,623 1,172
  Metric Property Investments plc 780,416 1,156
  Clarkson plc 52,977 1,139
^,* Lonrho plc 6,849,134 1,133
  Chime Communications plc 298,932 1,042

 

99


 

Vanguard® Total International Stock Index Fund        
Schedule of Investments        
October 31, 2012        
 
          Market
          Value
        Shares ($000)
  Advanced Medical Solutions Group plc     852,289 1,012
  Rank Group plc     418,962 991
^ XP Power Ltd.     60,571 958
* Andor Technology PLC     137,580 940
  888 Holdings plc     546,687 926
* RusPetro plc     542,826 900
  Severfield-Rowen plc     387,134 881
  Avocet Mining plc     713,070 877
^,* Patagonia Gold plc     2,141,887 761
^,* Borders & Southern Petroleum plc     1,799,514 698
* Nanoco Group plc     597,855 637
  Costain Group plc     164,626 626
* Gulfsands Petroleum plc     400,194 584
* Circle Oil plc     1,926,242 567
  Mecom Group plc     444,629 559
* Hardy Oil & Gas plc     256,608 537
* JKX Oil & Gas plc     401,296 508
  Immunodiagnostic Systems Holdings plc     105,588 486
* San Leon Energy plc     3,638,696 482
  Volex plc     175,047 460
^ Cupid plc     133,375 425
* Aurelian Oil & Gas plc     2,002,671 307
* Bahamas Petroleum Co. plc     4,639,775 298
^,* Chariot Oil & Gas Ltd.     584,347 267
          11,794,650
Total Common Stocks (Cost $74,607,609)       74,947,293
    Coupon      
Temporary Cash Investments (2.5%) 1        
Money Market Fund (2.4%)        
4,5 Vanguard Market Liquidity Fund 0.167%   1,814,282,278 1,814,282
 
 
        Face  
      Maturity Amount  
      Date ($000)  
U.S. Government and Agency Obligations (0.1%)        
6,7,8 Fannie Mae Discount Notes 0.120% 12/26/12 10,000 9,998
7,9 Federal Home Loan Bank Discount Notes 0.125% 11/2/12 15,000 15,000
  United States Treasury Note/Bond 0.625% 12/31/12 10,000 10,008
          35,006
Total Temporary Cash Investments (Cost $1,849,288)       1,849,288
Total Investments (102.0%) (Cost $76,456,897)       76,796,581
Other Assets and Liabilities—Net (-2.0%)       (1,495,422)
Net Assets (100%)       75,301,159

 

^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $1,531,632,000.
* Non-income-producing security.
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 99.9% and 2.1%, 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, 2012, the aggregate value of these securities was $3,970,000.
3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
5 Includes $1,629,236,000 of collateral received for securities on loan.

100


 

Vanguard® Total International Stock Index Fund
Schedule of Investments
October 31, 2012

6 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
7 Securities with a value of $18,999,000 have been segregated as initial margin for open futures contracts.
8 Securities with a value of $1,361,000 have been segregated as collateral for open forward currency contracts.
9 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed by the full faith and credit of the U.S. government.
ADR—American Depositary Receipt.
GDR—Global Depositary Receipt.
NVDR—Non-Voting Depository Receipt.
REIT—Real Estate Investment Trust.

101


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard Total International Stock Index Fund:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements (not presented herein) of Vanguard Total International Stock Index Fund (constituting a separate portfolio of Vanguard STAR Funds, hereafter referred to as the “Fund”) as of October 31, 2012 and for the period then ended and have issued our unqualified report thereon dated December 11, 2012. Our audit included an audit of the Fund’s schedule of investments as of October 31, 2012. This schedule of investments is the responsibility of the Fund’s management. Our responsibility is to express an opinion on this schedule of investments based on our audit.

In our opinion, the accompanying schedule of investments referred to above, when read in conjunction with the financial statements of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 11, 2012

102


 

© 2012 The Vanguard Group. Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
 
SNA 1130 122012

 


 

 

Annual Report | October 31, 2012
Vanguard Developed Markets Index Fund

 



 

> Vanguard Developed Markets Index Fund returned 6.33% for Investor Shares in the fiscal year ended October 31, 2012, outpacing the 5.88% average return of competing international funds.

> Because of temporary price differences arising from fair-value pricing policies, the fund’s return diverged from that of its benchmark index.

> International stocks trailed the U.S. stock market for the 12 months.

 

Contents  
Your Fund’s Total Returns. 1
Chairman’s Letter. 2
Fund Profile. 8
Performance Summary. 10
Financial Statements. 13
Your Fund’s After-Tax Returns. 31
About Your Fund’s Expenses. 32
Glossary. 34

 


Developed Markets Index Fund

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. 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.

About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.


 

Your Fund’s Total Returns

Fiscal Year Ended October 31, 2012  
  Total
  Returns
Vanguard Developed Markets Index Fund  
Investor Shares 6.33%
Admiral™ Shares 6.33
Institutional Shares 6.38
Institutional Plus Shares 6.39
MSCI EAFE Index 4.61
International Funds Average 5.88
International Funds Average: Derived from data provided by Lipper Inc.  

 

Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements. Institutional Shares and Institutional Plus Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria.

 

 

Your Fund’s Performance at a Glance        
October 31, 2011, Through October 31, 2012        
      Distributions Per Share
  Starting Ending Income Capital
  Share Price Share Price Dividends Gains
Vanguard Developed Markets Index Fund        
Investor Shares $9.25 $9.49 $0.308 $0.000
Admiral Shares 26.63 27.31 0.897 0.000
Institutional Shares 9.19 9.42 0.317 0.000
Institutional Plus Shares 95.75 98.13 3.326 0.000

 

1


 


Chairman’s Letter

Dear Shareholder,

After suffering losses over the previous fiscal year, international stock markets made a modest recovery during the 12 months ended October 31, 2012. Despite Europe’s ongoing sovereign-debt struggles, the region’s developed markets outpaced their counterparts in the Pacific region.

Vanguard Developed Markets Index Fund returned 6.33% for Investor and Admiral Shares in the fiscal year; returns were slightly higher for the lower-cost Institutional share classes. The fund outperformed the 5.88% average return of its international peers. Because of temporary pricing differences arising from fair-value pricing policies, the fund’s return diverged from that of its benchmark, which is not adjusted for fair value. (For more information on fair-value pricing, please see the text box on page 6.)

If you own the fund in a taxable account, you may wish to review the section on after-tax returns that appears later in this report.

U.S. stocks led the advance for global equity markets
U.S. stocks returned about 14% for the 12 months ended October 31, putting domestic equities ahead of their international counterparts. Stocks in Europe and Asia posted more moderate results.

2


 

The advances came amid moves by U.S. and European central bankers to manage risks to the U.S. economy and the finances of European governments and banks. The president of the European Central Bank declared in July that policymakers would do whatever was needed to preserve the euro common currency.

Although investors’ worries have eased, Europe’s financial troubles are by no means resolved. Vanguard economists believe the most likely scenario is that the Eurozone will “muddle through” for several years, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.

Bonds continued their march, but leaner times may lie ahead
The broad U.S. taxable bond market returned about 5% for the 12 months. Municipal bonds delivered a robust performance, returning 9%.

As bond prices rose, the yield of the 10-year U.S. Treasury note fell to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite directions.) By the end of the period, the yield had climbed, but it still remained exceptionally low by historical standards.

Bondholders have enjoyed years of healthy returns. But as Tim Buckley, our incoming chief investment officer,

Market Barometer      
 
    Average Annual Total Returns
    Periods Ended October 31, 2012
  One Three Five
  Year Years Years
Stocks      
Russell 1000 Index (Large-caps) 14.97% 13.48% 0.53%
Russell 2000 Index (Small-caps) 12.08 14.82 1.19
Dow Jones U.S. Total Stock Market Index 14.45 13.62 0.75
MSCI All Country World Index ex USA (International) 3.98 3.74 -5.08
 
Bonds      
Barclays U.S. Aggregate Bond Index (Broad taxable market) 5.25% 6.08% 6.38%
Barclays Municipal Bond Index (Broad tax-exempt market) 9.03 6.84 6.02
Citigroup Three-Month U.S. Treasury Bill Index 0.06 0.08 0.56
 
CPI      
Consumer Price Index 2.16% 2.28% 2.06%

 

3


 

has noted, investors shouldn’t be surprised if future results are much more modest. As yields remain low, the opportunity for similarly strong returns diminishes.

The Federal Reserve announced on September 13 that it would continue to hold its target for short-term interest rates between 0% and 0.25% at least through mid-2015. The exceptionally low rates, in place since late 2008, kept a tight lid on returns from money market funds and savings accounts.

Europe delivered strong results despite the ongoing debt struggles
Vanguard Developed Markets Index Fund provides exposure to stocks of companies in the developed economies of Europe and the Pacific region. Together, these markets account for about 75% of the equity marketplace outside the United States. European stocks are dominant in the fund and its index, representing about two-thirds of the assets.

European stocks were the index’s top performers for the period, adding almost 5 percentage points to the overall return. This was in stark contrast to the prior fiscal year, when heightened concern about the sovereign-debt crisis caused stocks to lose ground in most of Europe’s markets.

Returns from the United Kingdom, Switzerland, and Germany contributed most to the index’s 12-month return. In the United Kingdom—which accounts for just over 20% of the index and the fund—the financial and consumer staples sectors

Expense Ratios          
Your Fund Compared With Its Peer Group          
  Investor Admiral Institutional Institutional Peer Group
  Shares Shares Shares Plus Shares Average
Developed Markets Index Fund 0.20% 0.12% 0.08% 0.06% 1.37%

The fund expense ratios shown are from the prospectus dated February 27, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended October 31, 2012, the expense ratios were 0.20% for Investor Shares, 0.10% for Admiral Shares, 0.07% for Institutional Shares, and 0.06% for Institutional Plus Shares. The peer-group expense ratio is derived from data provided by Lipper Inc. and captures information through year-end 2011.

Peer group: International Funds.

4


 

were leaders. Health care stocks were the star performers in both Switzerland and Germany. A handful of other European countries, including France, Sweden, and the Netherlands, also contributed to overall return.

By contrast, in European countries where governments and banks still confront debt problems, stocks continued to struggle throughout the period. Markets in Spain, Italy, Portugal, and Greece all recorded losses for the 12 months.

The Pacific region’s developed markets as a group lagged Europe, mostly because of poor results from Japan.

Japanese stocks, which make up almost 20% of the fund’s portfolio, were among the index’s weakest performers, returning –3% for the period. Tech stocks weighed most heavily on performance. These companies were hurt not only by Japan’s continued economic slowdown but by a territorial dispute that led to massive Chinese boycotts of Japanese products.

The remaining markets in the Pacific region—Australia, Hong Kong, Singapore, and New Zealand—rose during the fiscal year.

Total Returns  
Ten Years Ended October 31, 2012  
  Average
  Annual Return
Developed Markets Index Fund Investor Shares 7.81%
MSCI EAFE Index 7.73
International Funds Average 7.34
International Funds Average: Derived from data provided by Lipper Inc.  

 

The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our 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.

5


 

Investment insight
A note on fair-value pricing The return of a fund that tracks an index sometimes diverges from the index’s return a bit more than would be expected. This may be the result of a fair-value pricing adjustment.
 
These 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.

 

Stocks abroad produced solid gains over a decade of market volatility
For the ten years ended October 31, 2012, your fund produced an average annual return of 7.81% for Investor Shares, closely tracking the target index. The fund exceeded the average result of its peers, which returned 7.34%.

That the fund successfully tracked its index over this ten-year period, during which markets everywhere were roiled by the global financial crisis and many other unsettling events, is a tribute to the skill of its advisor, Vanguard’s Equity Investment Group, whose proficiency in portfolio construction and management techniques reflects more than 30 years of indexing experience.

Your fund will seek to track a new benchmark index
In early October, we announced that Vanguard Developed Markets Index Fund would change its benchmark from the MSCI EAFE Index to the FTSE Developed ex North America Index. This transition, which we plan to complete by mid-2013, is expected to produce significant long-term savings for Vanguard clients.

Vanguard has used indexes from FTSE, a global leader in the field, since 2003, and the FTSE Developed ex North America Index incorporates what we consider to be best practices in index construction. The FTSE benchmarks are comparable to other best-in-class indexes, with most differences in construction being minor.

6


 

The most significant difference between the FTSE benchmark and the fund’s current benchmark involves their approach to South Korea. MSCI considers this nation to be an emerging market and does not include it in the MSCI EAFE Index. As a result, South Korean stocks have not been held in the Developed Markets Index Fund. FTSE, however, deems South Korea a developed market, so you can expect it to become a presence in the fund. At the end of October, South Korean stocks had a weighting of 5.53% in the FTSE Developed ex North America Index.

Broad diversification’s benefits hold true across the globe
As I noted earlier, and as you’ve doubtless seen in the headlines, Europe faces profound financial challenges. We’ve received questions during the year from clients concerned about both the outlook for the region and the wisdom of investing in Europe at all. Why not focus investments in countries with the fastest-growing economies?

That strategy has intuitive appeal, but our research suggests that a better approach is to hold a broadly diversified portfolio of international stocks, including European equities, which account for about a quarter of global market capitalization. We’ve found that concentrated international investments can lead to higher volatility in a portfolio, often without producing higher returns.

Another insight from Vanguard experts: Surprising as it may seem, there’s been little connection historically between the rate of a country’s economic growth and its stock returns. For example, the returns for U.S. stocks and British stocks were nearly identical from 1900 to 2009, even as U.S. economic growth eclipsed that of Great Britain. (See Investing in Emerging Markets: Evaluating the Allure of Rapid Economic Growth, available at vanguard .com/research.)

Of course, no one can say for sure what the future returns for a particular country’s stocks will be. That’s one of the reasons why we consistently embrace broad diversification, which is a time-tested way to help manage the risks of investing both at home and abroad.

As always, thank you for entrusting your assets to Vanguard.

Sincerely,


F. William McNabb III
Chairman and Chief Executive Officer
November 16, 2012

7


 

Developed Markets Index Fund

Fund Profile
As of October 31, 2012

Share-Class Characteristics        
  Investor Admiral Institutional Institutional
  Shares Shares Shares Plus Shares
Ticker Symbol VDMIX VDMAX VIDMX VDMPX
Expense Ratio1 0.20% 0.12% 0.08% 0.06%

 

Portfolio Characteristics    
      MSCI AC
    MSCI World
    EAFE Index
  Fund Index ex USA
Number of Stocks 932 921 1,832
Median Market Cap $34.7B $34.7B $28.0B
Price/Earnings Ratio 15.1x 15.1x 14.4x
Price/Book Ratio 1.3x 1.3x 1.4x
Return on Equity 16.3% 16.3% 16.9%
Earnings Growth Rate 1.3% 1.3% 4.9%
Dividend Yield 3.6% 3.6% 3.4%
Turnover Rate 8%
Short-Term Reserves -0.3%

 

Sector Diversification (% of equity exposure)
      MSCI AC
    MSCI World
    EAFE Index
  Fund Index ex USA
Consumer Discretionary 10.2% 10.2% 9.1%
Consumer Staples 11.9 11.9 10.4
Energy 8.2 8.2 10.9
Financials 24.1 24.1 25.1
Health Care 10.1 10.1 7.4
Industrials 12.4 12.4 10.5
Information Technology 4.3 4.3 6.2
Materials 9.7 9.7 11.1
Telecommunication      
Services 5.1 5.1 5.6
Utilities 4.0 4.0 3.7

 

Volatility Measures    
  MSCI MSCI AC
  EAFE World Index
  Index ex USA
R-Squared 0.99 0.96
Beta 1.02 1.01

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

 

 

Ten Largest Holdings (% of total net assets)
Royal Dutch Shell plc Integrated Oil & Gas 2.1%
Nestle SA Packaged Foods &  
  Meats 2.0
BHP Billiton Ltd. Diversified Metals &  
  Mining 1.7
HSBC Holdings plc Diversified Banks 1.7
Novartis AG Pharmaceuticals 1.3
BP plc Integrated Oil & Gas 1.3
Roche Holding AG Pharmaceuticals 1.3
Vodafone Group plc Wireless  
  Telecommunication  
  Services 1.3
GlaxoSmithKline plc Pharmaceuticals 1.1
Unilever plc Packaged Foods &  
  Meats 1.0
Top Ten   14.8%

The holdings listed exclude any temporary cash investments and equity index products.

Allocation by Region (% of portfolio)


1 The expense ratios shown are from the prospectus dated February 27, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended October 31, 2012, the expense ratios were 0.20% for Investor Shares, 0.10% for Admiral Shares, 0.07% for Institutional Shares, and 0.06% for Institutional Plus Shares.

8


 

Developed Markets Index Fund

Market Diversification (% of equity exposure)
      MSCI AC
    MSCI World
    EAFE Index
  Fund Index ex USA
Europe      
United Kingdom 23.0% 23.2% 15.8%
France 9.4 9.4 6.4
Switzerland 8.7 8.8 6.0
Germany 8.7 8.6 5.9
Sweden 3.1 3.1 2.1
Spain 2.9 2.9 2.0
Netherlands 2.5 2.5 1.7
Italy 2.3 2.3 1.5
Denmark 1.2 1.2 0.8
Belgium 1.1 1.1 0.8
Norway 1.0 1.0 0.7
Other 1.7 1.5 1.0
Subtotal 65.6% 65.6% 44.7%
Pacific      
Japan 19.6% 19.6% 13.3%
Australia 9.1 9.1 6.2
Hong Kong 3.1 3.1 2.1
Singapore 1.9 1.9 1.3
Other 0.1 0.1 0.1
Subtotal 33.8% 33.8% 23.0%
Emerging Markets 0.0% 0.0% 23.7%
North America 0.0% 0.0% 8.2%
Middle East 0.6% 0.6% 0.4%

 

9


 

Developed Markets Index Fund

Performance Summary

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 than the performance data cited. For performance data current to the most recent month-end, visit our 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.

Cumulative Performance: October 31, 2002, Through October 31, 2012
Initial Investment of $10,000


 
      Average Annual Total Returns  
    Periods Ended October 31, 2012  
          Final Value
    One Five Ten of a $10,000
    Year Years Years Investment
  Developed Markets Index Fund        
  Investor Shares 6.33% -5.75% 7.81% $21,220
••••••• MSCI EAFE Index 4.61 -5.81 7.73 21,049
– – – – International Funds Average 5.88 -5.82 7.34 20,302
  MSCI All Country World Index ex        
  USA 4.48 -4.63 9.79 25,440
International Funds Average: Derived from data provided by Lipper Inc.      

 

    Since Final Value
  One Inception of a $10,000
  Year (9/27/2011) Investment
Developed Markets Index Fund Admiral      
Shares 6.33% 12.07% $11,327
MSCI EAFE Index 4.61 11.19 11,230
MSCI All Country World Index ex USA 4.48 11.37 11,250
"Since Inception" performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standards.

 

See Financial Highlights for dividend and capital gains information.

10


 

Developed Markets Index Fund

      Average Annual Total Returns
      Periods Ended October 31, 2012
        Final Value
  One Five Ten of a $5,000,000
  Year Years Years Investment
Developed Markets Index Fund Institutional        
Shares 6.38% -5.68% 7.85% $10,649,204
MSCI EAFE Index 4.61 -5.81 7.73 10,524,282
MSCI All Country World Index ex USA 4.48 -4.63 9.79 12,719,951

The inception date of the Institutional Shares is January 22, 2010; the returns and other data shown in the table above reflect a blend of the historical performance of the fund’s Investor Shares prior to January 22, 2010, and of the Institutional Shares from then on.

 

 

    Since Final Value
  One Inception of a $100,000,000
  Year (12/2/2010) Investment
Developed Markets Index Fund Institutional      
Plus Shares 6.39% 0.70% $101,341,551
MSCI EAFE Index 4.61 0.75 101,443,736
MSCI All Country World Index ex USA 4.48 -0.12 99,773,099
"Since Inception" performance is calculated from the Institutional Plus Shares’ inception date for both the fund and its comparative standards.

 

Fiscal-Year Total Returns (%): October 31, 2002, Through October 31, 2012


11


 

Developed Markets Index Fund

Average Annual Total Returns: Periods Ended September 30, 2012
This 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.

  Inception One Five Ten
  Date Year Years Years
Investor Shares 5/8/2000 14.91% -5.16% 8.26%
Admiral Shares 9/27/2011 15.06 11.951
Institutional Shares 5/8/2000 15.14 -5.07 8.31
Institutional Plus Shares 12/2/2010 15.12 0.131
1 Return since inception.        

 

The inception date of the Institutional Shares is January 22, 2010; the returns and other data shown in the table above reflect a blend of the historical performance of the fund's Investor Shares prior to January 22, 2010, and of the Institutional Shares from then on. The inception date shown in the table is that of the fund’s Investor Shares.

12


 

Developed Markets Index Fund

Financial Statements

Statement of Net Assets—Investments Summary
As of October 31, 2012

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

The fund 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 complete listing of the fund’s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission’s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

    Market Percentage
    Value of Net
  Shares ($000) Assets
Common Stocks      
Australia      
BHP Billiton Ltd. 3,658,620 129,536 1.1%
Commonwealth Bank of Australia 1,806,515 108,185 0.9%
Westpac Banking Corp. 3,466,438 91,646 0.8%
Australia & New Zealand Banking Group Ltd. 3,040,451 80,211 0.7%
National Australia Bank Ltd. 2,540,831 67,903 0.6%
Australia—Other †   587,524 4.9%
    1,065,005 9.0%
 
Austria †   32,765 0.3%
 
Belgium      
Anheuser-Busch InBev NV 911,172 76,203 0.6%
Belgium—Other †   57,089 0.5%
    133,292 1.1%
Denmark      
Novo Nordisk A/S Class B 462,091 74,080 0.6%
Denmark—Other †   63,027 0.6%
    137,107 1.2%
 
Finland †   89,129 0.8%
 
France      
Total SA 2,413,816 121,585 1.0%
Sanofi 1,348,913 118,473 1.0%
BNP Paribas SA 1,096,271 55,302 0.5%
LVMH Moet Hennessy Louis Vuitton SA 288,262 46,866 0.4%
France—Other †   758,715 6.4%
    1,100,941 9.3%
Germany      
Siemens AG 933,557 94,065 0.8%
BASF SE 1,042,136 86,446 0.7%

 

13


 

Developed Markets Index Fund

    Market Percentage
    Value of Net
  Shares ($000) Assets
Bayer AG 938,281 81,812 0.7%
SAP AG 1,045,064 76,210 0.7%
Allianz SE 516,596 64,175 0.5%
Deutsche Bank AG 1,054,725 48,044 0.4%
E.ON AG 2,043,476 46,520 0.4%
Germany—Other †   518,605 4.4%
    1,015,877 8.6%
 
Greece †   6,535 0.1%
 
Hong Kong      
Hang Seng Bank Ltd. 868,075 13,305 0.1%
Hong Kong—Other †   356,062 3.0%
    369,367 3.1%
 
Ireland †   32,889 0.3%
 
Israel †   70,712 0.6%
 
Italy      
Eni SPA 2,886,412 66,420 0.5%
Italy—Other †   199,738 1.7%
    266,158 2.2%
Japan      
Toyota Motor Corp. 3,129,734 120,674 1.0%
Mitsubishi UFJ Financial Group Inc. 14,454,527 65,392 0.6%
Honda Motor Co. Ltd. 1,849,813 55,611 0.5%
Sumitomo Mitsui Financial Group Inc. 1,524,351 46,580 0.4%
Chugai Pharmaceutical Co. Ltd. 253,498 5,136 0.0%
Daihatsu Motor Co. Ltd. 217,253 3,802 0.0%
Hino Motors Ltd. 294,008 2,273 0.0%
Japan—Other †   2,000,152 16.9%
    2,299,620 19.4%
 
Netherlands      
Unilever NV 1,848,299 67,934 0.6%
Netherlands—Other †   229,142 1.9%
    297,076 2.5%
 
New Zealand †   15,043 0.1%
 
Norway †   113,041 1.0%
 
Portugal †   20,274 0.2%
 
Singapore †   218,943 1.9%
 
Spain      
* Banco Santander SA 11,172,258 84,119 0.7%
Telefonica SA 4,509,529 59,521 0.5%
Banco Bilbao Vizcaya Argentaria SA 6,106,802 51,029 0.4%
Spain—Other †   150,262 1.3%
    344,931 2.9%

 

14


 

Developed Markets Index Fund

      Market Percentage
      Value of Net
    Shares ($000) Assets
Sweden †     368,460 3.1%
 
Switzerland        
Nestle SA   3,744,320 237,720 2.0%
Novartis AG   2,609,971 157,383 1.3%
Roche Holding AG   797,155 153,552 1.3%
UBS AG   4,106,787 61,617 0.5%
Switzerland—Other †     420,115 3.6%
      1,030,387 8.7%
United Kingdom        
HSBC Holdings plc   20,606,972 203,172 1.7%
BP plc   21,588,477 154,178 1.3%
Vodafone Group plc   53,435,453 145,112 1.2%
GlaxoSmithKline plc   5,691,547 127,534 1.1%
British American Tobacco plc   2,219,116 110,068 0.9%
Royal Dutch Shell plc Class B   3,000,147 106,123 0.9%
Royal Dutch Shell plc Class A   2,908,718 99,807 0.8%
Diageo plc   2,842,617 81,267 0.7%
BHP Billiton plc   2,396,421 76,809 0.6%
Rio Tinto plc   1,520,878 75,978 0.6%
BG Group plc   3,854,170 71,560 0.6%
AstraZeneca plc   1,433,498 66,479 0.6%
Standard Chartered plc   2,713,924 64,257 0.5%
Unilever plc   1,456,242 54,323 0.5%
Barclays plc   13,186,618 48,761 0.4%
Anglo American plc London Shares   1,577,339 48,605 0.4%
TESCO plc   9,123,464 47,209 0.4%
SABMiller plc   1,084,299 46,536 0.4%
National Grid plc   4,050,518 46,195 0.4%
Royal Dutch Shell plc Class A (Amsterdam Shares)   1,284,961 44,050 0.4%
Vodafone Group plc ADR   255,762 6,962 0.1%
United Kingdom—Other †     999,917 8.5%
      2,724,902 23.0%
Total Common Stocks (Cost $10,899,510)     11,752,454 99.4%1
 
  Coupon      
Temporary Cash Investments        
Money Market Fund        
2,3 Vanguard Market Liquidity Fund 0.167% 113,623,978 113,624 1.0%
4,5U.S. Government and Agency Obligations †     4,700 0.0%
Total Temporary Cash Investments (Cost $118,324)     118,324 1.0%1
6Total Investments (Cost $11,017,834)     11,870,778 100.4%
Other Assets and Liabilities        
Other Assets     71,012 0.6%
Liabilities3     (113,756) (1.0%)
      (42,744) (0.4%)
Net Assets     11,828,034 100.0%

 

15


 

Developed Markets Index Fund

At October 31, 2012, net assets consisted of:  
  Amount
  ($000)
Paid-in Capital 12,423,409
Undistributed Net Investment Income 349,595
Accumulated Net Realized Losses (1,797,582)
Unrealized Appreciation (Depreciation)  
Investment Securities 852,944
Futures Contracts 149
Forward Currency Contracts 178
Foreign Currencies (659)
Net Assets 11,828,034
 
Investor Shares—Net Assets  
Applicable to 162,698,680 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 1,543,428
Net Asset Value Per Share—Investor Shares $9.49
 
Admiral Shares—Net Assets  
Applicable to 54,711,985 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 1,494,428
Net Asset Value Per Share—Admiral Shares $27.31
 
Institutional Shares—Net Assets  
Applicable to 588,062,713 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 5,538,670
Net Asset Value Per Share—Institutional Shares $9.42
 
Institutional Plus Shares—Net Assets  
Applicable to 33,133,190 outstanding $.001 par value shares of  
beneficial interest (unlimited authorization) 3,251,508
Net Asset Value Per Share—Institutional Plus Shares $98.13

 

See Note A in Notes to Financial Statements.
* Non-income-producing security.
† Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
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 99.9% and 0.5%, respectively, of net assets.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Includes $83,969,000 of collateral received for securities on loan.
4 Securities with a value of $3,300,000 have been segregated as initial margin for open futures contracts.
5 Securities with a value of $200,000 have been segregated as collateral for open forward currency contracts.
6 The total value of securities on loan is $79,063,000.
ADR—American Depositary Receipt.
See accompanying Notes, which are an integral part of the Financial Statements.

16


 

Developed Markets Index Fund

Statement of Operations  
 
  Year Ended
  October 31, 2012
  ($000)
Investment Income  
Income  
Dividends1 412,204
Interest2 49
Security Lending 9,530
Total Income 421,783
Expenses  
The Vanguard Group—Note B  
Investment Advisory Services 739
Management and Administrative—Investor Shares 2,615
Management and Administrative—Admiral Shares 686
Management and Administrative—Institutional Shares 973
Management and Administrative—Institutional Plus Shares 405
Marketing and Distribution—Investor Shares 627
Marketing and Distribution—Admiral Shares 143
Marketing and Distribution—Institutional Shares 1,435
Marketing and Distribution—Institutional Plus Shares 756
Custodian Fees 1,710
Auditing Fees 46
Shareholders’ Reports—Investor Shares 9
Shareholders’ Reports—Admiral Shares 8
Shareholders’ Reports—Institutional Shares 2
Shareholders’ Reports—Institutional Plus Shares 1
Trustees’ Fees and Expenses 10
Total Expenses 10,165
Net Investment Income 411,618
Realized Net Gain (Loss)  
Investment Securities Sold 126,642
Futures Contracts 3,129
Foreign Currencies and Forward Currency Contracts (2,030)
Realized Net Gain (Loss) 127,741
Change in Unrealized Appreciation (Depreciation)  
Investment Securities 146,626
Futures Contracts (3,455)
Foreign Currencies and Forward Currency Contracts (1,546)
Change in Unrealized Appreciation (Depreciation) 141,625
Net Increase (Decrease) in Net Assets Resulting from Operations 680,984

1 Dividends are net of foreign withholding taxes of $17,426,000.
2 Interest income from an affiliated company of the fund was $42,000.
See accompanying Notes, which are an integral part of the Financial Statements.

17


 

Developed Markets Index Fund

Statement of Changes in Net Assets    
 
  Year Ended October 31,
  2012 2011
  ($000) ($000)
Increase (Decrease) in Net Assets    
Operations    
Net Investment Income 411,618 371,625
Realized Net Gain (Loss) 127,741 129,096
Change in Unrealized Appreciation (Depreciation) 141,625 (1,114,416)
Net Increase (Decrease) in Net Assets Resulting from Operations 680,984 (613,695)
Distributions    
Net Investment Income    
Investor Shares (73,158) (89,221)
Admiral Shares (29,505)
Institutional Shares (173,504) (183,719)
Institutional Plus Shares (93,878) (22,195)
Realized Capital Gain    
Investor Shares
Admiral Shares
Institutional Shares
Institutional Plus Shares
Total Distributions (370,045) (295,135)
Capital Share Transactions    
Investor Shares (1,439,130) 47,262
Admiral Shares 1,337,972 70,054
Institutional Shares 516,459 (1,694,207)
Institutional Plus Shares 410,044 3,057,910
Net Increase (Decrease) from Capital Share Transactions 825,345 1,481,019
Total Increase (Decrease) 1,136,284 572,189
Net Assets    
Beginning of Period 10,691,750 10,119,561
End of Period1 11,828,034 10,691,750
1 Net Assets—End of Period includes undistributed net investment income of $349,595,000 and $304,962,000.  

 

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

18


 

Developed Markets Index Fund

Financial Highlights

Investor Shares          
 
 
For a Share Outstanding     Year Ended October 31,
Throughout Each Period 2012 2011 2010 2009 2008
Net Asset Value, Beginning of Period $9.25 $10.06 $9.26 $7.79 $14.91
Investment Operations          
Net Investment Income .320 .317 .2651 .4522 .3691
Net Realized and Unrealized Gain (Loss)          
on Investments .228 (.846) .644 1.416 (7.097)
Total from Investment Operations .548 (.529) .909 1.868 (6.728)
Distributions          
Dividends from Net Investment Income (.308) (.281) (.109) (.398) (.387)
Distributions from Realized Capital Gains (.005)
Total Distributions (.308) (.281) (.109) (.398) (.392)
Net Asset Value, End of Period $9.49 $9.25 $10.06 $9.26 $7.79
 
Total Return3 6.33% -5.46% 9.87% 25.23% -46.24%
 
Ratios/Supplemental Data          
Net Assets, End of Period (Millions) $1,543 $2,976 $3,198 $2,936 $2,299
Ratio of Total Expenses to          
Average Net Assets 0.20% 0.20% 0.22% 0.10%
Acquired Fund Fees and Expenses 0.15% 0.22%
Ratio of Net Investment Income to          
Average Net Assets 3.60% 3.30% 3.09% 5.93%2 3.04%
Portfolio Turnover Rate 8%4 5%4 13% 14%5 13%

1 Calculated based on average shares outstanding.
2 Net investment income per share and the ratio of net investment income to average net assets include $.400 and 5.19%, respectively, of annual dividends received from Vanguard mutual funds in December 2008. Effective in June 2009, the fund’s equity investments are solely in common stocks.
3 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.
4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.
5 Excludes the value of securities received and mutual fund shares delivered in connection with a change in the fund’s investment policy to invest directly in individual stocks and reduce the fund’s investment in Vanguard mutual funds.

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

19


 

Developed Markets Index Fund

Financial Highlights

Admiral Shares    
  Year Sept. 27,
  Ended 20111 to
  October 31, Oct. 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $26.63 $25.00
Investment Operations    
Net Investment Income .925 .068
Net Realized and Unrealized Gain (Loss) on Investments .652 1.562
Total from Investment Operations 1.577 1.630
Distributions    
Dividends from Net Investment Income (.897)
Distributions from Realized Capital Gains
Total Distributions (.897)
Net Asset Value, End of Period $27.31 $26.63
 
Total Return2 6.33% 6.52%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $1,494 $73
Ratio of Total Expenses to Average Net Assets 0.10% 0.12%3
Ratio of Net Investment Income to Average Net Assets 3.70% 3.38%3
Portfolio Turnover Rate4 8% 5%

1 Inception.
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 Annualized.
4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

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

20


 

Developed Markets Index Fund

Financial Highlights

Institutional Shares      
      Jan. 22,
  Year Ended 20101 to
  October 31, Oct. 31,
For a Share Outstanding Throughout Each Period 2012 2011 2010
Net Asset Value, Beginning of Period $9.19 $9.99 $9.28
Investment Operations      
Net Investment Income .331 .327 .2422
Net Realized and Unrealized Gain (Loss) on Investments .216 (.836) .468
Total from Investment Operations .547 (.509) .710
Distributions      
Dividends from Net Investment Income (.317) (.291)
Distributions from Realized Capital Gains
Total Distributions (.317) (.291)
Net Asset Value, End of Period $9.42 $9.19 $9.99
 
Total Return3 6.38% -5.30% 7.65%
 
Ratios/Supplemental Data      
Net Assets, End of Period (Millions) $5,539 $4,856 $6,922
Ratio of Total Expenses to Average Net Assets 0.07% 0.08% 0.07%4
Ratio of Net Investment Income to Average Net Assets 3.73% 3.42% 3.24%4
Portfolio Turnover Rate 8%5 5%5 13%

1 Inception.
2 Calculated based on average shares outstanding.
3 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
4 Annualized.
5 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

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

21


 

Developed Markets Index Fund

Financial Highlights

Institutional Plus Shares    
  Year Dec. 2,
  Ended 20101 to
  October 31, Oct. 31,
For a Share Outstanding Throughout Each Period 2012 2011
Net Asset Value, Beginning of Period $95.75 $103.47
Investment Operations    
Net Investment Income 3.450 3.102
Net Realized and Unrealized Gain (Loss) on Investments 2.256 (7.795)
Total from Investment Operations 5.706 (4.693)
Distributions    
Dividends from Net Investment Income (3.326) (3.027)
Distributions from Realized Capital Gains
Total Distributions (3.326) (3.027)
Net Asset Value, End of Period $98.13 $95.75
 
Total Return2 6.39% -4.74%
 
Ratios/Supplemental Data    
Net Assets, End of Period (Millions) $3,252 $2,787
Ratio of Total Expenses to Average Net Assets 0.06% 0.06%3
Ratio of Net Investment Income to Average Net Assets 3.74% 3.44%3
Portfolio Turnover Rate4 8% 5%

1 Inception.
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 Annualized.
4 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.

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

22


 

Developed Markets Index Fund

Notes to Financial Statements

Vanguard Developed Markets 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, Admiral Shares, Institutional Shares, and Institutional Plus Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares, Institutional Shares, and Institutional Plus 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. mutual funds. 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 acquired over 60 days to maturity 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. Other temporary cash investments are valued at amortized cost, which approximates market value.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

3. Futures 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, enhancing returns, 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 fund may seek to enhance returns by using futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. 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.

23


 

Developed Markets Index Fund

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. Counterparty risk is mitigated by entering into forward currency contracts only with highly rated counterparties, by a master netting arrangement between the fund and the counterparty, and by the posting of collateral by the counterparty. 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 posted. Any securities posted as collateral for open contracts are noted in the Statement of Net Assets.

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 aggregate principal 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, 2012, the fund’s average investment in futures and forward currency contracts each represented less than 1% of net assets, based on quarterly average aggregate settlement values and average notional amounts, respectively.

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, 2009–2012), 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.

6. Security Lending: The fund may lend its securities to qualified institutional borrowers to earn additional income. Security loans are required to be secured at all times by collateral at least equal to the market value of securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability for the return of the collateral, during the period the securities are on loan. Security lending income represents fees charged to borrowers plus income earned on investing cash collateral, less expenses associated with the loan.

7. 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. 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 redemptions of capital shares prior to May 23, 2012, were 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) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

24


 

Developed Markets Index Fund

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At October 31, 2012, the fund had contributed capital of $1,616,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.65% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers 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).

The following table summarizes the market value of the fund’s investments as of October 31, 2012, based on the inputs used to value them:

  Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 14,639 11,737,815
Temporary Cash Investments 113,624 4,700
Futures Contracts—Assets1 574
Forward Currency Contracts—Assets 253
Forward Currency Contracts—Liabilities (75)
Total 128,837 11,742,693
1 Represents variation margin on the last day of the reporting period.      

 

D. At October 31, 2012, 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)
Other Assets 574 253 827
Liabilities (75) (75)

 

25


 

Developed Markets Index Fund

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the year ended October 31, 2012, were:

    Foreign  
  Equity Exchange  
  Contracts Contracts Total
Realized Net Gain (Loss) on Derivatives ($000) ($000) ($000)
Futures Contracts 3,129 3,129
Forward Currency Contracts (537) (537)
Realized Net Gain (Loss) on Derivatives 3,129 (537) 2,592
 
Change in Unrealized Appreciation (Depreciation) on Derivatives      
Futures Contracts (3,455) (3,455)
Forward Currency Contracts (1,183) (1,183)
Change in Unrealized Appreciation (Depreciation) on Derivatives (3,455) (1,183) (4,638)

 

At October 31, 2012, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000)
      Aggregate  
    Number of Settlement Unrealized
    Long (Short) Value Appreciation
Futures Contracts Expiration Contracts Long (Short) (Depreciation)
FTSE 100 Index December 2012 223 20,708 (202)
Dow Jones EURO STOXX 50 Index December 2012 634 20,571 7
Topix Index December 2012 169 15,667 245
S&P ASX 200 Index December 2012 76 8,874 99

 

Unrealized appreciation (depreciation) on open FTSE 100 Index futures contracts is required to be treated as realized gain (loss) for tax purposes.

26


 

Developed Markets Index Fund

At October 31, 2012, the fund had open forward currency contracts to receive and deliver currencies as follows. Unrealized appreciation (depreciation) on open forward currency contracts is treated as realized gain (loss) for tax purposes.

            Unrealized
  Contract         Appreciation
  Settlement     Contract Amount (000) (Depreciation)
Counterparty Date   Receive   Deliver ($000)
UBS AG 12/21/12 AUD 6,711 USD 6,931 96
UBS AG 12/21/12 EUR 3,884 USD 5,035 (41)
UBS AG 12/21/12 GBP 2,696 USD 4,343 (29)
UBS AG 12/21/12 GBP 1,616 USD 2,604 17
UBS AG 12/21/12 EUR 1,939 USD 2,514 16
UBS AG 12/21/12 AUD 1,612 USD 1,664 (5)
UBS AG 12/18/12 USD 10,201 JPY 814,963 124
AUD—Australian dollar.            
EUR—Euro.            
GBP—British pound.            
JPY—Japanese yen.            
USD—U.S. dollar.            

 

E. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

During the year ended October 31, 2012, the fund realized net foreign currency losses of $1,493,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended October 31, 2012, the fund realized gains on the sale of passive foreign investment companies of $4,553,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Passive foreign investment companies held at October 31, 2012, had unrealized appreciation of $36,233,000.

During the year ended October 31, 2012, the fund realized $74,612,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.

27


 

Developed Markets Index Fund

For tax purposes, at October 31, 2012, the fund had $392,487,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $48,427,000 to offset taxable capital gains realized during the year ended October 31, 2012. At October 31, 2012, the fund had available capital losses totaling $1,796,886,000 to offset future net capital gains of $1,177,227,000 through October 31, 2016, $585,420,000 through October 31, 2017, and $34,239,000 through October 31, 2018.

At October 31, 2012, the cost of investment securities for tax purposes was $11,054,738,000. Net unrealized appreciation of investment securities for tax purposes was $816,040,000, consisting of unrealized gains of $1,944,814,000 on securities that had risen in value since their purchase and $1,128,774,000 in unrealized losses on securities that had fallen in value since their purchase.

F. During the year ended October 31, 2012, the fund purchased $2,079,089,000 of investment securities and sold $1,277,206,000 of investment securities, other than temporary cash investments. Purchases and sales include $58,835,000 and $416,234,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.

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

      Year Ended October 31,
    2012   2011
  Amount Shares Amount Shares
  ($000) (000) ($000) (000)
Investor Shares        
Issued 494,252 54,663 794,417 79,062
Issued in Lieu of Cash Distributions 65,924 7,792 81,158 8,140
Redeemed1 (1,999,306) (221,289) (828,313) (83,626)
Net Increase (Decrease)—Investor Shares (1,439,130) (158,834) 47,262 3,576
Admiral Shares2        
Issued 1,522,284 59,036 70,376 2,743
Issued in Lieu of Cash Distributions 25,632 1,054
Redeemed1 (209,944) (8,108) (322) (13)
Net Increase (Decrease)—Admiral Shares 1,337,972 51,982 70,054 2,730
Institutional Shares        
Issued 1,676,989 187,845 2,019,817 203,683
Issued in Lieu of Cash Distributions 161,413 19,239 149,659 15,132
Redeemed1 (1,321,943) (147,542) (3,863,683) (383,377)
Net Increase (Decrease)—Institutional Shares 516,459 59,542 (1,694,207) (164,562)
Institutional Plus Shares2        
Issued 1,287,129 13,630 3,413,561 32,488
Issued in Lieu of Cash Distributions 84,262 964 17,522 170
Redeemed1 (961,347) (10,570) (373,173) (3,549)
Net Increase (Decrease)—Institutional Plus Shares 410,044 4,024 3,057,910 29,109

 

1 Net of redemption fees for fiscal 2012 and 2011 of $269,000 and $103,000, respectively (fund totals). Effective May 23, 2012, the redemption fee was eliminated.

2 Inception was December 2, 2010, for Institutional Plus Shares and September 27, 2011, for Admiral Shares.

28


 

Developed Markets Index Fund

H. In preparing the financial statements as of October 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

On October 2, 2012, Vanguard announced an upcoming change in the fund’s benchmark index from the MSCI EAFE Index to the FTSE Developed ex North America Index. The fund’s investment objective is not changing. The transition to the new benchmark is expected to be completed over several months, and will require some turnover of holdings with resulting transaction costs. Vanguard will seek to minimize trading impact through efficient portfolio trading.

29


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard Developed Markets Index Fund:

In our opinion, the accompanying statement of net assets—investments summary and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Developed Markets Index Fund (constituting a separate portfolio of Vanguard STAR Funds, hereafter referred to as the “Fund”) at October 31, 2012, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2012 by correspondence with the custodians and brokers and by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 14, 2012

 

Special 2012 tax information (unaudited) for Vanguard Developed Markets Index Fund

 

This information for the fiscal year ended October 31, 2012, is included pursuant to provisions of the Internal Revenue Code.

The fund distributed $286,082,000 of qualified dividend income to shareholders during the fiscal year.

The fund designates to shareholders foreign source income of $375,134,000 and foreign taxes paid of $17,330,000. Shareholders will receive more detailed information with their Form 1099-DIV in January 2013 to determine the calendar-year amounts to be included on their 2012 tax returns.

30


 

Your Fund’s After-Tax Returns

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 2012. (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: Developed Markets Index Fund Investor Shares    
Periods Ended October 31, 2012      
  One Five Ten
  Year Years Years
Returns Before Taxes 6.33% -5.75% 7.81%
Returns After Taxes on Distributions 5.72 -6.29 7.24
Returns After Taxes on Distributions and Sale of Fund Shares 4.69 -4.92 6.71

 

31


 

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

32


 

Six Months Ended October 31, 2012      
  Beginning Ending Expenses
  Account Value Account Value Paid During
Developed Markets Index Fund 4/30/2012 10/31/2012 Period
Based on Actual Fund Return      
Investor Shares $1,000.00 $1,024.84 $1.02
Admiral Shares 1,000.00 1,025.15 0.41
Institutional Shares 1,000.00 1,026.14 0.31
Institutional Plus Shares 1,000.00 1,025.50 0.31
Based on Hypothetical 5% Yearly Return      
Investor Shares $1,000.00 $1,024.20 $1.02
Admiral Shares 1,000.00 1,024.80 0.41
Institutional Shares 1,000.00 1,024.90 0.31
Institutional Plus Shares 1,000.00 1,024.90 0.31

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.20% for Investor Shares, 0.08% for Admiral Shares, 0.06% for Institutional Shares, and 0.06% for Institutional Plus Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

33


 

Glossary

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.

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.

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.

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.

34


 

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.

35


 

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 180 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. 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.

InterestedTrustee1 and Delphi Automotive LLP (automotive components);
  Senior Advisor at New Mountain Capital; Trustee of
F. William McNabb III The Conference Board.
Born 1957. Trustee Since July 2009. Chairman of the  
Board. Principal Occupation(s) During the Past Five Amy Gutmann
Years: Chairman of the Board of The Vanguard Group, Born 1949. Trustee Since June 2006. Principal
Inc., and of each of the investment companies served Occupation(s) During the Past Five Years: President
by The Vanguard Group, since January 2010; Director of the University of Pennsylvania; Christopher H.
of The Vanguard Group since 2008; Chief Executive Browne Distinguished Professor of Political Science
Officer and President of The Vanguard Group and of in the School of Arts and Sciences with secondary
each of the investment companies served by The appointments at the Annenberg School for
Vanguard Group since 2008; Director of Vanguard Communication and the Graduate School of Education
Marketing Corporation; Managing Director of The of the University of Pennsylvania; Member of the
Vanguard Group (1995–2008). National Commission on the Humanities and Social
  Sciences; Trustee of Carnegie Corporation of New
IndependentTrustees  York and of the National Constitution Center; Chair
  of the U. S. Presidential Commission for the Study
Emerson U. Fullwood of Bioethical Issues.
Born 1948. Trustee Since January 2008. Principal  
Occupation(s) During the Past Five Years: Executive JoAnn Heffernan Heisen
Chief Staff and Marketing Officer for North America Born 1950. Trustee Since July 1998. Principal
and Corporate Vice President (retired 2008) of Xerox Occupation(s) During the Past Five Years: Corporate
Corporation (document management products and Vice President and Chief Global Diversity Officer
services); Executive in Residence and 2010 (retired 2008) and Member of the Executive
Distinguished Minett Professor at the Rochester Committee (1997–2008) of Johnson & Johnson
Institute of Technology; Director of SPX Corporation (pharmaceuticals/medical devices/consumer
(multi-industry manufacturing), the United Way of products); Director of Skytop Lodge Corporation
Rochester, Amerigroup Corporation (managed health (hotels), the University Medical Center at Princeton,
care), the University of Rochester Medical Center, the Robert Wood Johnson Foundation, and the Center
Monroe Community College Foundation, and North for Talent Innovation; Member of the Advisory Board
Carolina A&T University. of the Maxwell School of Citizenship and Public Affairs
  at Syracuse University.
 
Rajiv L. Gupta F. Joseph Loughrey
Born 1945. Trustee Since December 2001.2 Born 1949. Trustee Since October 2009. Principal
Principal Occupation(s) During the Past Five Years: Occupation(s) During the Past Five Years: President
Chairman and Chief Executive Officer (retired 2009) and Chief Operating Officer (retired 2009) of Cummins
and President (2006–2008) of Rohm and Haas Co. Inc. (industrial machinery); Director of SKF AB
(chemicals); Director of Tyco International, Ltd. (industrial machinery), Hillenbrand, Inc. (specialized
(diversified manufacturing and services), Hewlett- consumer services), the Lumina Foundation for
Packard Co. (electronic computer manufacturing),  

 


 

Education, and Oxfam America; Chairman of the Executive Officers  
Advisory Council for the College of Arts and Letters    
and Member of the Advisory Board to the Kellogg Glenn Booraem  
Institute for International Studies at the University Born 1967. Controller Since July 2010. Principal
of Notre Dame. Occupation(s) During the Past Five Years: Principal
  of The Vanguard Group, Inc.; Controller of each of
Mark Loughridge the investment companies served by The Vanguard
Born 1953. Trustee Since March 2012. Principal Group; Assistant Controller of each of the investment
Occupation(s) During the Past Five Years: Senior Vice companies served by The Vanguard Group (2001–2010).
President and Chief Financial Officer at IBM (information    
technology services); Fiduciary Member of IBM’s Thomas J. Higgins  
Retirement Plan Committee. Born 1957. Chief Financial Officer Since September
  2008. Principal Occupation(s) During the Past Five
Scott C. Malpass Years: Principal of The Vanguard Group, Inc.; Chief
Born 1962. Trustee Since March 2012. Principal Financial Officer of each of the investment companies
Occupation(s) During the Past Five Years: Chief served by The Vanguard Group; Treasurer of each of
Investment Officer and Vice President at the University the investment companies served by The Vanguard
of Notre Dame; Assistant Professor of Finance at the Group (1998–2008).  
Mendoza College of Business at Notre Dame; Member    
of the Notre Dame 403(b) Investment Committee; Kathryn J. Hyatt  
Director of TIFF Advisory Services, Inc. (investment Born 1955. Treasurer Since November 2008. Principal
advisor); Member of the Investment Advisory Occupation(s) During the Past Five Years: Principal of
Committees of the Financial Industry Regulatory The Vanguard Group, Inc.; Treasurer of each of the
Authority (FINRA) and of Major League Baseball. investment companies served by The Vanguard
  Group; Assistant Treasurer of each of the investment
André F. Perold companies served by The Vanguard Group (1988–2008).
Born 1952. Trustee Since December 2004. Principal    
Occupation(s) During the Past Five Years: George Heidi Stam  
Gund Professor of Finance and Banking at the Harvard Born 1956. Secretary Since July 2005. Principal
Business School (retired 2011); Chief Investment Occupation(s) During the Past Five Years: Managing
Officer and Managing Partner of HighVista Strategies Director of The Vanguard Group, Inc.; General Counsel
LLC (private investment firm); Director of Rand of The Vanguard Group; Secretary of The Vanguard
Merchant Bank; Overseer of the Museum of Fine Group and of each of the investment companies
Arts Boston. served by The Vanguard Group; Director and Senior
  Vice President of Vanguard Marketing Corporation.
Alfred M. Rankin, Jr.    
Born 1941. Trustee Since January 1993. Principal Vanguard Senior ManagementTeam
Occupation(s) During the Past Five Years: Chairman,    
President, and Chief Executive Officer of NACCO Mortimer J. Buckley Michael S. Miller
Industries, Inc. (forklift trucks/housewares/lignite); Kathleen C. Gubanich James M. Norris
Director of Goodrich Corporation (industrial products/ Paul A. Heller Glenn W. Reed
aircraft systems and services) and the National Martha G. King George U. Sauter
Association of Manufacturers; Chairman of the Board Chris D. McIsaac  
of the Federal Reserve Bank of Cleveland and of    
University Hospitals of Cleveland; Advisory Chairman    
of the Board of The Cleveland Museum of Art.  Chairman Emeritus and Senior Advisor
   
Peter F. Volanakis John J. Brennan   
Born 1955. Trustee Since July 2009. Principal  Chairman, 1996–2009  
Occupation(s) During the Past Five Years: President Chief Executive Officer and President, 1996–2008
and Chief Operating Officer (retired 2010) of Corning    
Incorporated (communications equipment); Director Founder  
of SPX Corporation (multi-industry manufacturing);
Overseer of the Amos Tuck School of Business  John C. Bogle  
Administration at Dartmouth College; Advisor to the Chairman and Chief Executive Officer, 1974–1996
Norris Cotton Cancer Center.

 

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.


 

 

 
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Fund Information > 800-662-7447 sponsored, endorsed, or promoted by MSCI, and MSCI
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Text Telephone for People Additional Information contains a more detailed
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Vanguard and any related funds.
This material may be used in conjunction
with the offering of shares of any Vanguard
fund only if preceded or accompanied by
the fund’s current prospectus.
 
All comparative mutual fund data are from Lipper Inc. or
Morningstar, Inc., unless otherwise noted.
 
You can obtain a free copy of Vanguard’s proxy voting
guidelines by visiting vanguard.com/proxyreporting or by
calling Vanguard at 800-662-2739. The guidelines are
also available from the SEC’s website, sec.gov. In
addition, you may obtain a free report on how your fund
voted the proxies for securities it owned during the 12
months ended June 30. To get the report, visit either
vanguard.com/proxyreporting or sec.gov.
 
You can review and copy information about your fund at
the SEC’s Public Reference Room in Washington, D.C. To
find out more about this public service, call the SEC at
202-551-8090. Information about your fund is also
available on the SEC’s website, and you can receive
copies of this information, for a fee, by sending a
request in either of two ways: via e-mail addressed to
publicinfo@sec.gov or via regular mail addressed to the
Public Reference Section, Securities and Exchange
Commission, Washington, DC 20549-1520.
  © 2012 The Vanguard Group, Inc.
  All rights reserved.
  Vanguard Marketing Corporation, Distributor.
  Q2270 122012

 


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Common Stocks (99.4%)1    
Australia (9.0%)    
BHP Billiton Ltd. 3,658,620 129,536
Commonwealth Bank of Australia 1,806,515 108,185
Westpac Banking Corp. 3,466,438 91,646
Australia & New Zealand Banking Group Ltd. 3,040,451 80,211
National Australia Bank Ltd. 2,540,831 67,903
Woolworths Ltd. 1,396,610 42,599
Wesfarmers Ltd. 1,142,293 41,179
Rio Tinto Ltd. 494,778 29,170
CSL Ltd. 579,552 28,584
Westfield Group 2,445,356 27,031
Woodside Petroleum Ltd. 747,130 26,640
Newcrest Mining Ltd. 867,133 23,916
Telstra Corp. Ltd. 4,937,426 21,219
QBE Insurance Group Ltd. 1,339,859 18,305
AMP Ltd. 3,284,413 15,627
Origin Energy Ltd. 1,236,347 14,553
Suncorp Group Ltd. 1,459,999 14,221
Brambles Ltd. 1,764,725 13,288
Santos Ltd. 1,084,094 12,926
Macquarie Group Ltd. 376,199 12,427
Insurance Australia Group Ltd. 2,361,682 11,230
Amcor Ltd. 1,370,788 11,230
Orica Ltd. 414,639 10,801
Westfield Retail Trust 3,297,215 10,588
Transurban Group 1,492,004 9,417
AGL Energy Ltd. 616,177 9,293
Stockland 2,558,642 9,181
Coca-Cola Amatil Ltd. 649,234 9,058
Goodman Group 1,758,102 8,071
QR National Ltd. 1,931,342 7,492
^ Fortescue Metals Group Ltd. 1,584,395 6,676
ASX Ltd. 198,032 6,097
Incitec Pivot Ltd. 1,841,647 6,032
Mirvac Group 3,865,082 6,030
GPT Group 1,627,336 6,010
WorleyParsons Ltd. 232,741 5,952
Sonic Healthcare Ltd. 422,488 5,697
Lend Lease Group 615,266 5,524
Dexus Property Group 5,202,709 5,310
Asciano Ltd. 1,104,165 5,226
Iluka Resources Ltd. 474,192 4,864
Cochlear Ltd. 64,499 4,763
James Hardie Industries plc 493,956 4,725
Crown Ltd. 454,236 4,578
CFS Retail Property Trust Group 2,252,970 4,565
Computershare Ltd. 504,122 4,540
Tatts Group Ltd. 1,541,938 4,478
APA Group 732,506 3,921
Bendigo and Adelaide Bank Ltd. 450,857 3,776
Metcash Ltd. 982,302 3,731
ALS Ltd. 383,750 3,684
Ramsay Health Care Ltd. 149,251 3,681
Toll Holdings Ltd. 775,182 3,571
Centro Retail Australia 1,451,350 3,236
Boral Ltd. 863,340 3,216
Leighton Holdings Ltd. 172,797 3,206
Echo Entertainment Group Ltd. 845,384 3,072
OZ Minerals Ltd. 351,338 2,981
Alumina Ltd. 2,751,089 2,746
Caltex Australia Ltd. 154,176 2,724
Tabcorp Holdings Ltd. 835,271 2,460

 

1


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  SP AusNet 1,879,306 2,068
  Sims Metal Management Ltd. 183,844 1,796
* Qantas Airways Ltd. 1,275,387 1,758
  Whitehaven Coal Ltd. 514,473 1,625
^,* Lynas Corp. Ltd. 1,934,958 1,460
  Sydney Airport 414,032 1,456
^ Harvey Norman Holdings Ltd. 612,329 1,210
^ Fairfax Media Ltd. 2,522,064 1,033
      1,065,005
Austria (0.3%)    
* Erste Group Bank AG 247,112 6,229
  OMV AG 166,525 6,094
  Andritz AG 82,465 4,969
  IMMOFINANZ AG 1,056,712 4,085
  Voestalpine AG 124,870 3,932
  Raiffeisen Bank International AG 55,165 2,210
  Vienna Insurance Group AG Wiener Versicherung Gruppe 43,342 1,862
  Verbund AG 78,169 1,823
  Telekom Austria AG 247,738 1,561
      32,765
Belgium (1.1%)    
  Anheuser-Busch InBev NV 911,172 76,203
  Solvay SA Class A 67,140 8,084
  UCB SA 125,256 7,316
  Groupe Bruxelles Lambert SA 91,894 6,794
  Ageas 264,081 6,733
  Umicore SA 128,905 6,624
  Belgacom SA 172,200 5,034
  Delhaize Group SA 115,563 4,424
  KBC Groep NV 182,312 4,289
  Colruyt SA 86,177 3,940
  Telenet Group Holding NV 64,671 2,963
  Mobistar SA 33,576 888
      133,292
Denmark (1.2%)    
  Novo Nordisk A/S Class B 462,091 74,080
* Danske Bank A/S 740,240 11,580
  Carlsberg A/S Class B 121,522 10,490
  AP Moeller - Maersk A/S Class B 1,498 10,455
  Novozymes A/S 276,057 7,627
  Coloplast A/S Class B 25,752 5,649
  DSV A/S 215,317 4,843
  AP Moeller - Maersk A/S Class A 622 4,121
  TDC A/S 561,905 3,874
* William Demant Holding A/S 29,994 2,580
  Tryg A/S 27,684 1,808
      137,107
Finland (0.8%)    
  Sampo Oyj 475,480 14,908
  Kone Oyj Class B 176,737 12,674
^ Nokia Oyj 4,252,572 11,433
  Fortum Oyj 504,994 9,346
  Wartsila OYJ Abp 190,873 7,730
  UPM-Kymmene Oyj 594,552 6,384
  Nokian Renkaat Oyj 126,760 5,279
  Metso Oyj 144,663 5,088
  Stora Enso Oyj 626,198 3,961
  Elisa Oyj 161,040 3,456
  Orion Oyj Class B 108,633 2,688
  Kesko Oyj Class B 71,741 2,243
  Pohjola Bank plc Class A 155,909 2,127

 

2


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Neste Oil Oyj 144,700 1,812
    89,129
France (9.3%)    
Total SA 2,413,816 121,585
Sanofi 1,348,913 118,473
BNP Paribas SA 1,096,271 55,302
LVMH Moet Hennessy Louis Vuitton SA 288,262 46,866
Air Liquide SA 354,402 41,838
Danone SA 656,965 40,409
Schneider Electric SA 591,901 37,062
L'Oreal SA 273,784 34,893
GDF Suez 1,455,445 33,406
AXA SA 2,007,111 31,991
Vivendi SA 1,463,307 29,986
Pernod-Ricard SA 240,053 25,853
* Societe Generale SA 793,197 25,297
France Telecom SA 2,101,778 23,493
Unibail-Rodamco SE 104,064 23,439
Vinci SA 521,518 23,117
Cie Generale d'Optique Essilor International SA 227,909 20,552
Cie Generale des Etablissements Michelin 204,188 17,602
European Aeronautic Defence and Space Co. NV 467,695 16,645
Carrefour SA 655,317 15,826
Cie de St-Gobain 447,575 15,766
ArcelorMittal 1,062,369 15,707
PPR 85,761 15,119
Technip SA 113,394 12,790
Lafarge SA 211,993 12,429
Publicis Groupe SA 201,250 10,847
Legrand SA 269,367 10,392
Safran SA 260,640 10,382
Renault SA 218,405 9,793
SES SA 345,406 9,561
Christian Dior SA 62,002 8,908
* Credit Agricole SA 1,136,029 8,575
Sodexo 107,243 8,262
Gemalto NV 89,573 8,090
Alstom SA 234,551 8,018
Dassault Systemes SA 70,211 7,408
Cap Gemini SA 167,331 7,039
Bureau Veritas SA 62,488 6,637
Arkema SA 70,558 6,438
* Cie Generale de Geophysique - Veritas 179,395 5,840
Electricite de France SA 271,771 5,751
Edenred 191,611 5,545
Casino Guichard Perrachon SA 62,570 5,462
Accor SA 167,086 5,221
Bouygues SA 213,747 5,137
SCOR SE 184,836 4,935
Groupe Eurotunnel SA 635,334 4,838
Vallourec SA 116,883 4,808
Eutelsat Communications SA 149,597 4,790
STMicroelectronics NV 722,971 4,258
Klepierre 112,888 4,187
AtoS 61,641 4,139
Iliad SA 25,911 3,993
Zodiac Aerospace 38,763 3,975
Societe BIC SA 32,509 3,967
Veolia Environnement SA 383,306 3,794
Lagardere SCA 134,216 3,675
Thales SA 103,459 3,642
Natixis 1,051,537 3,451
Suez Environnement Co. 319,195 3,389
Wendel SA 37,465 3,303

 

3


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Gecina SA 25,070 2,781
^,* Alcatel-Lucent 2,653,289 2,713
  Remy Cointreau SA 25,472 2,641
  Aeroports de Paris 33,924 2,625
  Fonciere Des Regions 29,773 2,396
  ICADE 26,405 2,377
  CNP Assurances 167,714 2,370
  Rexel SA 121,452 2,200
  Imerys SA 38,045 2,140
^,* Peugeot SA 260,296 1,670
  JCDecaux SA 74,830 1,584
  Eurazeo 33,763 1,548
      1,100,941
Germany (8.6%)    
  Siemens AG 933,557 94,065
  BASF SE 1,042,136 86,446
  Bayer AG 938,281 81,812
  SAP AG 1,045,064 76,210
  Allianz SE 516,596 64,175
  Deutsche Bank AG 1,054,725 48,044
  E.ON AG 2,043,476 46,520
  Daimler AG 947,779 44,399
  Deutsche Telekom AG 3,188,199 36,373
  Linde AG 209,996 35,339
  Volkswagen AG Prior Pfd. 164,188 34,090
  Muenchener Rueckversicherungs AG 203,589 32,758
  Bayerische Motoren Werke AG 375,927 30,054
  RWE AG 554,722 25,387
  Adidas AG 237,163 20,215
  Deutsche Post AG 959,537 19,024
  Fresenius Medical Care AG & Co. KGaA 238,349 16,748
  Henkel AG & Co. KGaA Prior Pfd. 202,081 16,158
  Fresenius SE & Co. KGaA 140,542 16,026
  Deutsche Boerse AG 219,174 11,876
  Porsche Automobil Holding SE Prior Pfd. 173,938 11,594
  ThyssenKrupp AG 438,450 9,991
  Henkel AG & Co. KGaA 147,633 9,559
  Merck KGaA 73,458 9,396
  K&S AG 195,845 9,282
  Continental AG 90,973 9,157
  HeidelbergCement AG 159,016 8,451
  Infineon Technologies AG 1,235,979 8,420
  Beiersdorf AG 113,984 8,292
* Commerzbank AG 4,111,699 7,899
  Lanxess AG 94,083 7,783
  Brenntag AG 58,390 7,368
  Kabel Deutschland Holding AG 100,098 7,223
  Volkswagen AG 33,361 6,524
  GEA Group AG 197,446 6,178
  MAN SE 47,921 4,843
  Hannover Rueckversicherung AG 68,335 4,814
* QIAGEN NV 268,032 4,669
  Metro AG 147,195 4,243
  Deutsche Lufthansa AG 260,335 3,983
  Daimler AG 80,693 3,781
  Bayerische Motoren Werke AG Prior Pfd. 59,453 3,294
  Suedzucker AG 75,657 2,933
  Hugo Boss AG 28,150 2,825
  ProSiebenSat.1 Media AG Prior Pfd. 98,744 2,753
  Fraport AG Frankfurt Airport Services Worldwide 42,071 2,469
  United Internet AG 109,188 2,185
  Axel Springer AG 44,664 1,917
  Salzgitter AG 44,049 1,905
  Celesio AG 95,993 1,861

 

4


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  RWE AG Prior Pfd. 43,906 1,819
* Hochtief AG 35,049 1,741
^ Wacker Chemie AG 17,790 1,006
      1,015,877
Greece (0.1%)    
  Coca Cola Hellenic Bottling Co. SA 227,728 4,877
  OPAP SA 259,344 1,658
      6,535
Hong Kong (3.1%)    
  AIA Group Ltd. 11,617,201 45,812
  Sun Hung Kai Properties Ltd. 1,779,046 24,593
  Hutchison Whampoa Ltd. 2,416,484 23,673
  Cheung Kong Holdings Ltd. 1,578,013 23,259
  Hong Kong Exchanges and Clearing Ltd. 1,164,382 19,111
  CLP Holdings Ltd. 2,046,712 17,439
  Hong Kong & China Gas Co. Ltd. 5,916,919 15,707
  Power Assets Holdings Ltd. 1,574,914 13,383
  Hang Seng Bank Ltd. 868,075 13,305
  BOC Hong Kong Holdings Ltd. 4,200,715 12,880
  Link REIT 2,569,184 12,767
  Wharf Holdings Ltd. 1,719,926 11,727
  Li & Fung Ltd. 6,639,162 11,075
  Sands China Ltd. 2,744,751 10,260
  Swire Pacific Ltd. Class A 772,267 9,134
  Hang Lung Properties Ltd. 2,544,488 8,810
  Henderson Land Development Co. Ltd. 1,077,991 7,434
  New World Development Co. Ltd. 4,173,444 6,421
  MTR Corp. Ltd. 1,635,859 6,381
  Sino Land Co. Ltd. 3,361,874 5,998
  Hang Lung Group Ltd. 992,083 5,864
  Bank of East Asia Ltd. 1,543,400 5,702
^,* Galaxy Entertainment Group Ltd. 1,657,388 5,661
  Wynn Macau Ltd. 1,764,151 4,970
  SJM Holdings Ltd. 2,194,113 4,755
  Wheelock & Co. Ltd. 1,037,050 4,523
  Kerry Properties Ltd. 816,263 4,047
  Shangri-La Asia Ltd. 1,784,051 3,444
  Cheung Kong Infrastructure Holdings Ltd. 557,074 3,264
  Hysan Development Co. Ltd. 724,406 3,196
  Yue Yuen Industrial Holdings Ltd. 846,939 2,915
  First Pacific Co. Ltd. 2,375,583 2,641
^ ASM Pacific Technology Ltd. 227,488 2,531
  NWS Holdings Ltd. 1,634,182 2,463
  Cathay Pacific Airways Ltd. 1,332,438 2,406
  Hopewell Holdings Ltd. 640,039 2,301
  Wing Hang Bank Ltd. 203,469 2,154
  MGM China Holdings Ltd. 1,072,800 1,928
  PCCW Ltd. 4,515,405 1,819
  Orient Overseas International Ltd. 245,797 1,548
  Lifestyle International Holdings Ltd. 570,241 1,215
* Foxconn International Holdings Ltd. 2,452,032 851
      369,367
Ireland (0.3%)    
  CRH plc 819,387 15,252
  Kerry Group plc Class A 169,755 8,875
* Elan Corp. plc 568,744 6,190
  WPP plc ADR 19,480 1,259
* Ryanair Holdings plc ADR 29,012 936
* Ryanair Holdings plc 65,012 377
      32,889
Israel (0.6%)    
  Teva Pharmaceutical Industries Ltd. 1,069,722 43,154
  Israel Chemicals Ltd. 503,533 6,299

 

5


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
* Bank Hapoalim BM 1,199,040 4,717
* Bank Leumi Le-Israel BM 1,420,306 4,578
* Mellanox Technologies Ltd. 40,455 3,053
  Bezeq The Israeli Telecommunication Corp. Ltd. 2,169,865 2,644
* NICE Systems Ltd. 66,312 2,215
  Israel Corp. Ltd. 2,609 1,773
* Mizrahi Tefahot Bank Ltd. 139,598 1,268
  Delek Group Ltd. 5,317 1,011
      70,712
Italy (2.2%)    
  Eni SPA 2,886,412 66,420
  Enel SPA 7,474,186 28,146
  Assicurazioni Generali SPA 1,323,583 21,553
* UniCredit SPA 4,591,789 20,310
  Intesa Sanpaolo SPA (Registered) 11,423,521 18,402
  Saipem SPA 300,488 13,540
  Fiat Industrial SPA 972,576 10,542
  Tenaris SA 536,480 10,056
  Telecom Italia SPA (Registered) 10,670,597 9,845
  Snam SPA 1,924,596 8,529
  Atlantia SPA 374,172 6,189
  Terna Rete Elettrica Nazionale SPA 1,477,778 5,556
  Telecom Italia SPA (Bearer) 6,813,863 5,456
  Luxottica Group SPA 132,497 5,057
* Fiat SPA 989,881 4,845
  Prysmian SPA 230,955 4,453
  Unione di Banche Italiane SCPA 973,358 3,834
  Enel Green Power SPA 1,990,620 3,391
  Mediobanca SPA 583,118 3,334
* Banco Popolare SC 2,007,904 3,204
  Pirelli & C. SPA 271,379 3,153
* Finmeccanica SPA 464,262 2,302
^,* Banca Monte dei Paschi di Siena SPA 7,252,059 2,005
  Exor SPA 72,356 1,867
  Mediaset SPA 811,905 1,426
  Intesa Sanpaolo SPA (Bearer) 1,059,385 1,402
  Autogrill SPA 131,009 1,341
      266,158
Japan (19.4%)    
  Toyota Motor Corp. 3,129,734 120,674
  Mitsubishi UFJ Financial Group Inc. 14,454,527 65,392
  Honda Motor Co. Ltd. 1,849,813 55,611
  Sumitomo Mitsui Financial Group Inc. 1,524,351 46,580
  Canon Inc. 1,286,535 41,812
  Takeda Pharmaceutical Co. Ltd. 896,260 41,659
  Mizuho Financial Group Inc. 25,929,736 40,572
  FANUC Corp. 217,472 34,647
  Softbank Corp. 1,005,990 31,771
  Mitsubishi Corp. 1,595,963 28,493
  Japan Tobacco Inc. 1,021,867 28,257
  Mitsubishi Estate Co. Ltd. 1,421,430 28,131
  Hitachi Ltd. 5,265,981 27,926
  Mitsui & Co. Ltd. 1,973,189 27,813
  East Japan Railway Co. 385,391 26,452
  Seven & I Holdings Co. Ltd. 854,118 26,340
  Shin-Etsu Chemical Co. Ltd. 465,359 26,276
  NTT DOCOMO Inc. 17,349 25,139
  Astellas Pharma Inc. 503,918 25,064
  KDDI Corp. 305,000 23,692
  Nissan Motor Co. Ltd. 2,818,299 23,570
  Nippon Telegraph & Telephone Corp. 494,970 22,634
  Komatsu Ltd. 1,058,630 22,183
  Tokio Marine Holdings Inc. 820,731 21,725
  Mitsui Fudosan Co. Ltd. 949,062 19,185

 

6


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
 
Nippon Steel & Sumitomo Metal Corp. 8,620,224 19,028
Sumitomo Corp. 1,276,570 17,403
Denso Corp. 551,504 17,316
Bridgestone Corp. 737,774 17,234
ITOCHU Corp. 1,707,661 17,093
Toshiba Corp. 4,567,345 16,971
Kao Corp. 596,921 16,768
Mitsubishi Electric Corp. 2,192,551 16,389
Nintendo Co. Ltd. 120,527 15,560
Kyocera Corp. 173,694 15,278
Panasonic Corp. 2,504,604 15,192
Nomura Holdings Inc. 4,120,895 14,896
Tokyo Gas Co. Ltd. 2,792,320 14,796
Mitsubishi Heavy Industries Ltd. 3,444,168 14,507
Inpex Corp. 2,489 14,179
Central Japan Railway Co. 163,700 14,087
Keyence Corp. 51,758 13,741
JX Holdings Inc. 2,548,698 13,575
Sony Corp. 1,140,330 13,502
Fast Retailing Co. Ltd. 60,179 13,400
Eisai Co. Ltd. 286,221 12,734
Otsuka Holdings Co. Ltd. 411,650 12,690
Kubota Corp. 1,240,711 12,686
Kirin Holdings Co. Ltd. 986,560 12,384
ORIX Corp. 118,941 12,216
Marubeni Corp. 1,874,744 12,148
Secom Co. Ltd. 238,394 12,142
Daiichi Sankyo Co. Ltd. 764,948 11,708
Sumitomo Realty & Development Co. Ltd. 406,029 11,219
Murata Manufacturing Co. Ltd. 230,262 11,201
Ajinomoto Co. Inc. 732,499 11,184
Dai-ichi Life Insurance Co. Ltd. 9,655 11,132
Sumitomo Mitsui Trust Holdings Inc. 3,539,918 10,743
Asahi Group Holdings Ltd. 439,568 10,032
Hoya Corp. 494,287 10,011
Nikon Corp. 387,351 9,881
MS&AD Insurance Group Holdings 575,700 9,763
Toray Industries Inc. 1,669,433 9,745
SMC Corp. 61,239 9,655
Suzuki Motor Corp. 414,724 9,405
Resona Holdings Inc. 2,144,351 9,279
Sumitomo Electric Industries Ltd. 857,412 9,224
FUJIFILM Holdings Corp. 526,523 8,888
Nidec Corp. 123,760 8,807
Osaka Gas Co. Ltd. 2,132,618 8,790
Tokyo Electron Ltd. 195,151 8,788
Daiwa House Industry Co. Ltd. 576,996 8,750
Nitto Denko Corp. 187,742 8,529
West Japan Railway Co. 192,273 8,394
Daito Trust Construction Co. Ltd. 82,543 8,332
Fujitsu Ltd. 2,119,641 8,155
JGC Corp. 235,388 8,099
Asahi Kasei Corp. 1,436,020 7,900
JFE Holdings Inc. 555,831 7,845
Asahi Glass Co. Ltd. 1,147,407 7,800
Sumitomo Metal Mining Co. Ltd. 592,135 7,798
Oriental Land Co. Ltd. 56,918 7,764
NKSJ Holdings Inc. 425,250 7,752
Chubu Electric Power Co. Inc. 732,620 7,549
Odakyu Electric Railway Co. Ltd. 708,267 7,515
Nippon Building Fund Inc. 698 7,499
Daiwa Securities Group Inc. 1,879,711 7,498
Terumo Corp. 172,928 7,448
Aeon Co. Ltd. 678,841 7,404

 

7


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
 
Rakuten Inc. 820,922 7,379
Daikin Industries Ltd. 265,157 7,340
^ Kintetsu Corp. 1,837,677 7,202
Hankyu Hanshin Holdings Inc. 1,293,545 7,161
T&D Holdings Inc. 655,009 7,157
Isuzu Motors Ltd. 1,342,979 7,104
Unicharm Corp. 128,708 6,964
Japan Real Estate Investment Corp. 669 6,699
LIXIL Group Corp. 300,932 6,653
Tokyu Corp. 1,286,087 6,542
Kansai Electric Power Co. Inc. 849,206 6,532
Yamato Holdings Co. Ltd. 423,380 6,450
Fuji Heavy Industries Ltd. 665,371 6,414
Aisin Seiki Co. Ltd. 216,540 6,324
Bank of Yokohama Ltd. 1,372,090 6,314
Sekisui House Ltd. 612,913 6,267
Shizuoka Bank Ltd. 601,317 6,150
Tobu Railway Co. Ltd. 1,155,009 6,138
Mitsubishi Chemical Holdings Corp. 1,533,263 6,073
^ Ricoh Co. Ltd. 716,521 5,996
Yahoo Japan Corp. 16,451 5,662
* NEC Corp. 2,951,596 5,661
Ono Pharmaceutical Co. Ltd. 93,352 5,637
Shionogi & Co. Ltd. 337,867 5,609
Shimano Inc. 83,923 5,290
Toyota Industries Corp. 184,520 5,279
Toyota Tsusho Corp. 240,640 5,256
^ TDK Corp. 139,444 5,244
Shiseido Co. Ltd. 407,276 5,154
Chugai Pharmaceutical Co. Ltd. 253,498 5,136
Yakult Honsha Co. Ltd. 109,604 5,106
Chiba Bank Ltd. 863,244 5,042
Makita Corp. 126,898 5,024
Lawson Inc. 68,289 5,019
Keikyu Corp. 531,282 5,004
Keio Corp. 658,017 4,994
Dentsu Inc. 204,917 4,840
Sumitomo Chemical Co. Ltd. 1,692,805 4,757
NTT Data Corp. 1,434 4,674
Omron Corp. 230,485 4,595
Kuraray Co. Ltd. 390,783 4,542
Dai Nippon Printing Co. Ltd. 636,875 4,513
* Olympus Corp. 245,988 4,298
Yamada Denki Co. Ltd. 98,559 4,276
Sega Sammy Holdings Inc. 226,800 4,275
Japan Retail Fund Investment Corp. 2,344 4,273
Sekisui Chemical Co. Ltd. 483,028 3,967
Isetan Mitsukoshi Holdings Ltd. 403,237 3,947
Credit Saison Co. Ltd. 179,026 3,934
Sysmex Corp. 82,041 3,858
Daihatsu Motor Co. Ltd. 217,253 3,802
* Mitsubishi Motors Corp. 4,406,104 3,798
* Tohoku Electric Power Co. Inc. 513,771 3,784
^ Dena Co. Ltd. 120,113 3,749
Benesse Holdings Inc. 77,147 3,716
Mitsubishi Materials Corp. 1,270,922 3,695
Santen Pharmaceutical Co. Ltd. 84,233 3,690
Toppan Printing Co. Ltd. 637,045 3,682
Mitsubishi Tanabe Pharma Corp. 255,411 3,682
Kyushu Electric Power Co. Inc. 484,637 3,675
Hirose Electric Co. Ltd. 34,139 3,654
* Mazda Motor Corp. 3,062,507 3,653
Hisamitsu Pharmaceutical Co. Inc. 70,506 3,646
Chugoku Electric Power Co. Inc. 336,832 3,623

 

8


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Konica Minolta Holdings Inc. 544,058 3,620
Joyo Bank Ltd. 737,156 3,567
Rohm Co. Ltd. 109,801 3,546
Nippon Express Co. Ltd. 967,650 3,541
Sony Financial Holdings Inc. 198,140 3,533
Nippon Yusen KK 1,839,350 3,506
JSR Corp. 204,151 3,502
Fukuoka Financial Group Inc. 881,575 3,447
NGK Insulators Ltd. 305,260 3,404
Electric Power Development Co. Ltd. 132,778 3,401
Trend Micro Inc. 119,879 3,360
Kawasaki Heavy Industries Ltd. 1,619,339 3,331
Taisho Pharmaceutical Holdings Co. Ltd. 41,143 3,323
Obayashi Corp. 740,021 3,311
FamilyMart Co. Ltd. 66,942 3,244
Jupiter Telecommunications Co. Ltd. 2,381 3,242
* Japan Airlines Co. Ltd. 68,101 3,242
Taisei Corp. 1,169,738 3,225
Nitori Holdings Co. Ltd. 39,087 3,192
MEIJI Holdings Co. Ltd. 69,713 3,190
Namco Bandai Holdings Inc. 202,382 3,180
IHI Corp. 1,502,531 3,164
Kyowa Hakko Kirin Co. Ltd. 295,467 3,145
Bank of Kyoto Ltd. 362,712 3,118
Yamaha Motor Co. Ltd. 319,232 3,048
Mitsui OSK Lines Ltd. 1,238,266 2,968
TonenGeneral Sekiyu KK 323,492 2,936
Kurita Water Industries Ltd. 128,916 2,927
J Front Retailing Co. Ltd. 551,148 2,866
Mitsubishi UFJ Lease & Finance Co. Ltd. 66,433 2,864
Chiyoda Corp. 177,105 2,861
Keisei Electric Railway Co. Ltd. 310,096 2,843
Toho Gas Co. Ltd. 468,206 2,838
Hamamatsu Photonics KK 81,468 2,825
NSK Ltd. 503,312 2,764
Chugoku Bank Ltd. 199,921 2,751
^ All Nippon Airways Co. Ltd. 1,298,329 2,750
Tokyu Land Corp. 488,103 2,740
Taiheiyo Cement Corp. 1,274,002 2,716
* Tokyo Electric Power Co. Inc. 1,653,117 2,699
Nisshin Seifun Group Inc. 215,856 2,697
Kajima Corp. 967,354 2,679
Oji Holdings Corp. 913,514 2,679
Japan Prime Realty Investment Corp. 887 2,673
Kansai Paint Co. Ltd. 245,525 2,645
USS Co. Ltd. 25,106 2,640
Miraca Holdings Inc. 62,466 2,638
Konami Corp. 114,907 2,638
Ube Industries Ltd. 1,154,731 2,637
Yokogawa Electric Corp. 230,458 2,623
Shimamura Co. Ltd. 25,048 2,611
Brother Industries Ltd. 270,076 2,547
Suzuken Co. Ltd. 80,280 2,534
Kikkoman Corp. 189,480 2,516
* Kobe Steel Ltd. 2,853,226 2,505
Shinsei Bank Ltd. 1,705,367 2,500
Asics Corp. 171,796 2,497
Rinnai Corp. 36,546 2,496
Nissin Foods Holdings Co. Ltd. 65,984 2,495
^ Showa Denko KK 1,628,739 2,491
Toyo Suisan Kaisha Ltd. 99,725 2,485
Sankyo Co. Ltd. 54,832 2,484
Suruga Bank Ltd. 204,911 2,461
^ Sharp Corp. 1,121,487 2,419

 

9


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Hachijuni Bank Ltd. 468,297 2,419
Nomura Research Institute Ltd. 113,645 2,416
Nippon Meat Packers Inc. 194,221 2,410
Teijin Ltd. 1,050,403 2,409
TOTO Ltd. 314,051 2,354
THK Co. Ltd. 137,810 2,291
Hino Motors Ltd. 294,008 2,273
NGK Spark Plug Co. Ltd. 202,682 2,270
Sumitomo Rubber Industries Ltd. 191,880 2,262
Toho Co. Ltd. 129,670 2,262
Iyo Bank Ltd. 291,749 2,256
Sumitomo Heavy Industries Ltd. 621,387 2,228
Shimizu Corp. 665,702 2,227
Stanley Electric Co. Ltd. 161,622 2,224
Hulic Co. Ltd. 273,300 2,175
Advantest Corp. 171,722 2,172
Tsumura & Co. 67,415 2,156
Nippon Electric Glass Co. Ltd. 423,414 2,155
Idemitsu Kosan Co. Ltd. 24,989 2,151
Mitsubishi Gas Chemical Co. Inc. 434,808 2,148
Nabtesco Corp. 114,979 2,146
Kamigumi Co. Ltd. 265,438 2,141
Japan Steel Works Ltd. 358,473 2,125
Alfresa Holdings Corp. 46,784 2,115
Aeon Mall Co. Ltd. 81,514 2,114
Air Water Inc. 167,539 2,099
MediPal Holdings Corp. 164,643 2,097
McDonald's Holdings Co. Japan Ltd. 75,184 2,089
Gunma Bank Ltd. 430,630 2,078
Dainippon Sumitomo Pharma Co. Ltd. 179,770 2,068
Amada Co. Ltd. 404,915 2,056
Shikoku Electric Power Co. Inc. 191,550 2,048
Mitsui Chemicals Inc. 975,254 2,016
^ Hitachi Construction Machinery Co. Ltd. 121,606 1,999
Daicel Corp. 332,745 1,998
Yamaguchi Financial Group Inc. 240,269 1,991
Takashimaya Co. Ltd. 300,556 1,977
Nomura Real Estate Office Fund Inc. Class A 309 1,944
^ Casio Computer Co. Ltd. 252,445 1,932
Nomura Real Estate Holdings Inc. 107,474 1,929
Oracle Corp. Japan 42,894 1,908
JTEKT Corp. 251,203 1,886
Hokuriku Electric Power Co. 188,880 1,876
NOK Corp. 116,614 1,871
Aozora Bank Ltd. 653,472 1,843
Marui Group Co. Ltd. 256,083 1,842
^ Gree Inc. 105,166 1,833
Toyo Seikan Kaisha Ltd. 171,195 1,820
Shimadzu Corp. 268,111 1,806
SBI Holdings Inc. 256,700 1,798
Mitsubishi Logistics Corp. 137,734 1,776
Yaskawa Electric Corp. 246,313 1,765
Hitachi Metals Ltd. 187,972 1,761
Sojitz Corp. 1,412,395 1,753
Ibiden Co. Ltd. 138,104 1,742
Nishi-Nippon City Bank Ltd. 760,096 1,733
Seven Bank Ltd. 605,817 1,732
Hokkaido Electric Power Co. Inc. 206,290 1,699
Hitachi Chemical Co. Ltd. 119,819 1,690
Denki Kagaku Kogyo KK 544,587 1,682
^ Sanrio Co. Ltd. 50,610 1,666
Yamaha Corp. 178,205 1,601
Hakuhodo DY Holdings Inc. 26,317 1,577
Hitachi High-Technologies Corp. 71,232 1,561

 

10


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Kaneka Corp. 317,558 1,549
^ Aeon Credit Service Co. Ltd. 72,855 1,548
^ GS Yuasa Corp. 396,475 1,546
  Yamazaki Baking Co. Ltd. 125,925 1,513
  Taiyo Nippon Sanso Corp. 275,390 1,511
  Citizen Holdings Co. Ltd. 295,861 1,502
  NHK Spring Co. Ltd. 178,045 1,487
* Nexon Co. Ltd. 120,954 1,475
  Itochu Techno-Solutions Corp. 28,385 1,469
  Toyoda Gosei Co. Ltd. 74,134 1,460
  Otsuka Corp. 17,745 1,447
* Furukawa Electric Co. Ltd. 717,400 1,431
  Daido Steel Co. Ltd. 319,450 1,385
  Koito Manufacturing Co. Ltd. 108,433 1,347
  Yamato Kogyo Co. Ltd. 46,728 1,313
  ABC-Mart Inc. 29,824 1,308
^ Nippon Paper Group Inc. 111,396 1,274
  Fuji Electric Co. Ltd. 625,443 1,269
^,* Kawasaki Kisen Kaisha Ltd. 997,055 1,264
  Ushio Inc. 119,673 1,263
  Japan Petroleum Exploration Co. 32,753 1,233
  Showa Shell Sekiyu KK 217,019 1,208
  Mabuchi Motor Co. Ltd. 26,683 1,131
  Tosoh Corp. 577,488 1,130
  Maruichi Steel Tube Ltd. 54,274 1,129
  Cosmo Oil Co. Ltd. 630,104 1,121
  NTT Urban Development Corp. 1,307 1,077
  Coca-Cola West Co. Ltd. 69,750 1,069
  Square Enix Holdings Co. Ltd. 73,378 1,034
  NTN Corp. 521,459 935
  Kinden Corp. 148,563 930
* Sumco Corp. 131,337 901
^ Seiko Epson Corp. 148,538 826
^ Toyota Boshoku Corp. 72,213 685
* Nisshin Steel Holdings Co. Ltd. 77,916 516
      2,299,620
Netherlands (2.5%)    
  Unilever NV 1,848,299 67,934
* ING Groep NV 4,347,134 38,682
  Koninklijke Philips Electronics NV 1,180,191 29,559
  ASML Holding NV 467,388 25,694
  Heineken NV 261,340 16,128
  Koninklijke Ahold NV 1,186,686 15,112
  Akzo Nobel NV 266,291 14,494
  Aegon NV 1,951,479 10,914
  Reed Elsevier NV 778,388 10,449
  Koninklijke DSM NV 175,345 9,017
* DE Master Blenders 1753 NV 672,865 8,253
  Koninklijke KPN NV 1,133,130 7,143
  Wolters Kluwer NV 341,368 6,604
  Heineken Holding NV 113,989 5,792
  Koninklijke Vopak NV 79,509 5,535
  Fugro NV 78,278 5,297
  Randstad Holding NV 137,106 4,483
  TNT Express NV 370,216 3,901
  Corio NV 73,552 3,277
  Koninklijke Boskalis Westminster NV 82,361 3,141
  Delta Lloyd NV 158,192 2,631
* SBM Offshore NV 195,818 2,563
  ASML Holding NV 8,519 468
  Aegon NV 860 5
      297,076
New Zealand (0.1%)    
  Fletcher Building Ltd. 780,387 4,514

 

11


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
      Market
      Value
    Shares ($000)
  Telecom Corp. of New Zealand Ltd. 2,146,775 4,244
  Auckland International Airport Ltd. 1,045,544 2,306
  SKYCITY Entertainment Group Ltd. 651,142 2,077
  Contact Energy Ltd. 417,820 1,902
      15,043
Norway (1.0%)    
  Statoil ASA 1,266,982 31,205
  Seadrill Ltd. 399,236 16,177
  Telenor ASA 820,985 16,147
  DNB ASA 1,109,005 13,864
  Yara International ASA 212,460 10,013
  Subsea 7 SA 318,238 6,977
  Orkla ASA 872,601 6,912
  Norsk Hydro ASA 1,054,363 4,747
  Aker Solutions ASA 186,821 3,682
  Gjensidige Forsikring ASA 227,176 3,317
      113,041
Portugal (0.2%)    
  EDP - Energias de Portugal SA 2,173,615 5,908
  Jerónimo Martins SGPS SA 249,624 4,370
  Galp Energia SGPS SA 262,311 4,199
  Portugal Telecom SGPS SA 713,832 3,590
* Banco Espirito Santo SA 2,268,010 2,207
      20,274
Singapore (1.9%)    
  Singapore Telecommunications Ltd. 9,036,041 23,801
  DBS Group Holdings Ltd. 2,062,521 23,423
  Oversea-Chinese Banking Corp. Ltd. 2,925,809 21,746
  United Overseas Bank Ltd. 1,442,133 21,506
  Keppel Corp. Ltd. 1,627,299 14,158
  Fraser and Neave Ltd. 1,052,320 7,884
  CapitaLand Ltd. 2,915,814 7,765
^ Genting Singapore plc 6,942,951 7,542
  Singapore Press Holdings Ltd. 1,822,823 6,027
  Wilmar International Ltd. 2,172,802 5,485
  Singapore Exchange Ltd. 971,341 5,339
  Singapore Airlines Ltd. 613,342 5,316
  City Developments Ltd. 568,080 5,304
  Singapore Technologies Engineering Ltd. 1,735,164 4,994
  SembCorp Industries Ltd. 1,114,994 4,948
  Global Logistic Properties Ltd. 2,344,670 4,919
  Jardine Cycle & Carriage Ltd. 120,683 4,856
  Noble Group Ltd. 4,367,927 4,664
  Hutchison Port Holdings Trust 5,921,071 4,597
  CapitaMall Trust 2,642,001 4,546
  Ascendas REIT 2,157,009 4,162
  Golden Agri-Resources Ltd. 7,582,102 3,872
  SembCorp Marine Ltd. 949,376 3,647
  ComfortDelGro Corp. Ltd. 2,148,352 2,971
^ Olam International Ltd. 1,812,704 2,912
  UOL Group Ltd. 528,847 2,447
  Keppel Land Ltd. 854,662 2,367
  CapitaMalls Asia Ltd. 1,536,812 2,319
  StarHub Ltd. 680,323 2,047
  Yangzijiang Shipbuilding Holdings Ltd. 2,152,154 1,587
^,* Neptune Orient Lines Ltd. 1,040,799 985
^ Cosco Corp. Singapore Ltd. 1,124,182 807
      218,943
Spain (2.9%)    
* Banco Santander SA 11,172,258 84,119
  Telefonica SA 4,509,529 59,521
  Banco Bilbao Vizcaya Argentaria SA 6,106,802 51,029
  Inditex SA 247,687 31,628

 

12


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
Iberdrola SA 4,410,283 22,841
Repsol SA 925,855 18,555
Amadeus IT Holding SA 356,316 8,827
* Banco de Sabadell SA 3,176,814 7,747
Ferrovial SA 456,167 6,455
Abertis Infraestructuras SA 414,591 6,262
Gas Natural SDG SA 392,456 6,097
* Grifols SA 168,664 5,858
Red Electrica Corp. SA 122,362 5,741
Distribuidora Internacional de Alimentacion SA 694,111 4,205
Enagas SA 202,957 4,037
CaixaBank 929,299 3,529
ACS Actividades de Construccion y Servicios SA 160,406 3,428
* International Consolidated Airlines Group SA 1,055,448 2,778
Mapfre SA 880,385 2,442
Banco Popular Espanol SA 1,513,134 2,366
Zardoya Otis SA 173,907 2,151
* Bankia SA 1,148,025 1,733
Acciona SA 25,373 1,560
^ Acerinox SA 111,819 1,167
Telefonica SA ADR 65,067 855
    344,931
Sweden (3.1%)    
Hennes & Mauritz AB Class B 1,077,623 36,538
Telefonaktiebolaget LM Ericsson Class B 3,419,207 30,291
Nordea Bank AB 2,989,219 27,171
Volvo AB Class B 1,577,489 21,287
Svenska Handelsbanken AB Class A 559,669 19,206
Atlas Copco AB Class A 761,552 18,727
Swedbank AB Class A 932,046 17,312
TeliaSonera AB 2,455,572 16,144
Sandvik AB 1,138,537 15,821
Skandinaviska Enskilda Banken AB Class A 1,600,994 13,285
Svenska Cellulosa AB Class B 657,465 12,818
Assa Abloy AB Class B 376,533 12,544
Investor AB Class B 517,339 11,420
SKF AB 445,533 10,055
Atlas Copco AB Class B 443,619 9,728
Swedish Match AB 234,202 7,985
Electrolux AB Class B 273,966 7,023
Getinge AB 227,929 7,014
Scania AB Class B 361,836 6,904
Skanska AB Class B 429,611 6,730
Alfa Laval AB 382,096 6,647
Hexagon AB Class B 267,746 6,185
Millicom International Cellular SA 71,555 6,178
* Lundin Petroleum AB 251,627 6,038
Tele2 AB 359,358 5,999
Elekta AB Class B 414,908 5,906
Boliden AB 309,531 5,424
Investment AB Kinnevik 233,053 4,460
Husqvarna AB 461,637 2,681
Securitas AB Class B 357,896 2,606
Industrivarden AB 135,270 1,911
Ratos AB 214,883 1,845
Holmen AB 59,577 1,756
Modern Times Group AB Class B 51,228 1,563
SSAB AB Class A 175,561 1,258
    368,460
Switzerland (8.7%)    
Nestle SA 3,744,320 237,720
Novartis AG 2,609,971 157,383
Roche Holding AG 797,155 153,552
UBS AG 4,106,787 61,617

 

13


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
ABB Ltd. 2,495,199 45,063
Syngenta AG 107,367 41,861
Zurich Insurance Group AG 167,239 41,228
Cie Financiere Richemont SA 592,477 38,451
Credit Suisse Group AG 1,387,592 32,269
Swiss Re AG 399,192 27,623
Transocean Ltd. 397,431 18,180
Holcim Ltd. 259,646 17,720
Swatch Group AG (Bearer) 34,994 14,485
SGS SA 6,215 13,175
Swisscom AG 26,480 11,023
Givaudan SA 9,447 9,450
Julius Baer Group Ltd. 259,240 8,996
Geberit AG 43,032 8,888
Adecco SA 149,809 7,265
Schindler Holding AG 54,966 7,254
Kuehne & Nagel International AG 61,061 7,143
Actelion Ltd. 125,393 6,052
Sonova Holding AG 55,557 5,594
Sika AG 2,440 5,084
Swiss Prime Site AG 55,464 4,640
Baloise Holding AG 53,873 4,497
Swiss Life Holding AG 34,558 4,364
Lindt & Spruengli AG Regular 119 4,332
Sulzer AG 27,239 3,950
Swatch Group AG (Registered) 49,392 3,593
Aryzta AG 69,611 3,478
Lindt & Spruengli AG 1,020 3,223
Partners Group Holding AG 15,206 3,219
Schindler Holding AG (Registered) 24,463 3,169
Lonza Group AG 60,341 3,060
GAM Holding AG 212,843 2,977
Pargesa Holding SA 30,501 2,054
Barry Callebaut AG 2,029 1,938
Banque Cantonale Vaudoise 3,402 1,804
Aryzta AG 29,167 1,420
Straumann Holding AG 9,904 1,220
UBS AG 24,848 373
    1,030,387
United Kingdom (23.0%)    
HSBC Holdings plc 20,606,972 203,172
BP plc 21,588,477 154,178
Vodafone Group plc 53,435,453 145,112
GlaxoSmithKline plc 5,691,547 127,534
British American Tobacco plc 2,219,116 110,068
Royal Dutch Shell plc Class B 3,000,147 106,123
Royal Dutch Shell plc Class A 2,908,718 99,807
Diageo plc 2,842,617 81,267
BHP Billiton plc 2,396,421 76,809
Rio Tinto plc 1,520,878 75,978
BG Group plc 3,854,170 71,560
AstraZeneca plc 1,433,498 66,479
Standard Chartered plc 2,713,924 64,257
Unilever plc 1,456,242 54,323
Barclays plc 13,186,618 48,761
Anglo American plc London Shares 1,577,339 48,605
TESCO plc 9,123,464 47,209
SABMiller plc 1,084,299 46,536
National Grid plc 4,050,518 46,195
Reckitt Benckiser Group plc 738,364 44,734
Royal Dutch Shell plc Class A (Amsterdam Shares) 1,284,961 44,050
Imperial Tobacco Group plc 1,129,713 42,725
Prudential plc 2,896,096 39,774
Xstrata plc 2,385,683 37,793

 

14


 

Vanguard® Developed Markets Index Fund    
Schedule of Investments    
October 31, 2012    
 
    Market
    Value
  Shares ($000)
* Lloyds Banking Group plc 47,917,515 31,554
Centrica plc 5,885,909 30,815
BT Group plc 8,862,216 30,456
Rolls-Royce Holdings plc 2,125,819 29,378
SSE plc 1,070,846 25,046
Glencore International plc 4,315,815 23,950
Compass Group plc 2,128,680 23,390
Tullow Oil plc 1,027,560 23,345
Experian plc 1,143,933 19,791
Pearson plc 925,279 18,605
BAE Systems plc 3,682,760 18,588
Shire plc 637,828 17,936
Aviva plc 3,308,992 17,721
WPP plc 1,331,477 17,210
ARM Holdings plc 1,562,371 16,836
Old Mutual plc 5,521,535 15,369
Legal & General Group plc 6,665,168 14,448
British Sky Broadcasting Group plc 1,241,360 14,207
Wolseley plc 323,931 14,200
Reed Elsevier plc 1,381,904 13,536
Standard Life plc 2,676,835 12,640
Kingfisher plc 2,690,491 12,597
Randgold Resources Ltd. 99,026 11,837
Marks & Spencer Group plc 1,825,090 11,616
Land Securities Group plc 885,061 11,502
WM Morrison Supermarkets plc 2,655,984 11,500
Next plc 188,103 10,844
Smith & Nephew plc 1,018,602 10,772
Aggreko plc 304,663 10,596
* Royal Bank of Scotland Group plc 2,368,165 10,574
Burberry Group plc 498,820 9,412
Antofagasta plc 448,305 9,120
Associated British Foods plc 405,119 9,066
Capita plc 743,663 8,689
Johnson Matthey plc 233,086 8,482
United Utilities Group plc 775,301 8,477
Intertek Group plc 182,893 8,337
Carnival plc 206,159 8,212
British Land Co. plc 956,338 8,169
J Sainsbury plc 1,386,115 7,947
Whitbread plc 202,560 7,698
* InterContinental Hotels Group plc 309,493 7,657
Smiths Group plc 446,904 7,636
Petrofac Ltd. 293,325 7,615
RSA Insurance Group plc 4,015,809 7,289
Sage Group plc 1,437,684 7,221
Rexam plc 991,944 7,162
Severn Trent plc 270,051 7,004
Vodafone Group plc ADR 255,762 6,962
Weir Group plc 240,674 6,783
G4S plc 1,595,114 6,713
Babcock International Group plc 406,108 6,420
Fresnillo plc 202,741 6,294
AMEC plc 365,898 6,278
Bunzl plc 374,572 6,205
Tate & Lyle plc 527,657 6,185
Hammerson plc 805,936 6,146
GKN plc 1,757,986 5,913
ITV plc 4,180,622 5,853
IMI plc 363,319 5,610
Resolution Ltd. 1,574,161 5,550
Meggitt plc 888,738 5,543
Croda International plc 153,026 5,448
Melrose plc 1,362,205 5,306

 

15


 

Vanguard® Developed Markets Index Fund        
Schedule of Investments        
October 31, 2012        
 
          Market
          Value
        Shares ($000)
  Serco Group plc     563,671 5,160
  Aberdeen Asset Management plc     972,803 5,102
  Inmarsat plc     507,821 4,652
  Cobham plc     1,223,550 4,254
  Admiral Group plc     230,449 4,130
  Balfour Beatty plc     781,156 3,982
  3i Group plc     1,103,183 3,846
  Investec plc     612,242 3,610
  Capital Shopping Centres Group plc     636,135 3,424
  Invensys plc     924,858 3,410
  ICAP plc     625,576 3,291
  Segro plc     845,181 3,241
  Schroders plc (Voting Shares)     128,697 3,176
  London Stock Exchange Group plc     200,757 3,168
  Kazakhmys plc     237,436 2,724
  Man Group plc     2,073,859 2,635
  Vedanta Resources plc     120,000 2,205
  TUI Travel plc     506,459 2,055
  Eurasian Natural Resources Corp. plc     297,106 1,575
^ Lonmin plc     181,082 1,503
  Evraz plc     379,665 1,449
 
          2,724,902
Total Common Stocks (Cost $10,899,510)       11,752,454
    Coupon      
Temporary Cash Investments (1.0%)1        
Money Market Fund (1.0%)        
2,3 Vanguard Market Liquidity Fund 0.167%   113,623,978 113,624
 
 
        Face  
      Maturity Amount  
      Date ($000)  
U.S. Government and Agency Obligations (0.0%)        
4,5,6 Fannie Mae Discount Notes 0.120% 12/26/12 2,000 1,999
5,7 Federal Home Loan Bank Discount Notes 0.125% 11/14/12 1,200 1,200
5,7 Federal Home Loan Bank Discount Notes 0.140% 11/28/12 400 400
4,5 Freddie Mac Discount Notes 0.130% 11/26/12 100 100
  United States Treasury Note/Bond 0.625% 12/31/12 1,000 1,001
 
          4,700
Total Temporary Cash Investments (Cost $118,324)       118,324
Total Investments (100.4%) (Cost $11,017,834)       11,870,778
Other Assets and Liabilities—Net (-0.4%)3       (42,744)
Net Assets (100%)       11,828,034

 

^ Part of security position is on loan to broker-dealers. The total value of securities on loan is $79,063,000.
* Non-income-producing security.
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 99.9% and 0.5%, respectively, of net assets.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Includes $83,969,000 of collateral received for securities on loan.
4 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
5 Securities with a value of $3,300,000 have been segregated as initial margin for open futures contracts.

16


 

Vanguard® Developed Markets Index Fund
Schedule of Investments
October 31, 2012

6 Securities with a value of $200,000 have been segregated as collateral for open forward currency contracts.
7 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed by the full faith and credit of the U.S. government.
ADR—American Depositary Receipt.
REIT—Real Estate Investment Trust.

17


 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard STAR Funds and the Shareholders of Vanguard Developed Markets Index Fund:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements (not presented herein) of Vanguard Developed Markets Index Fund (constituting a separate portfolio of Vanguard STAR Funds, hereafter referred to as the “Fund”) as of October 31, 2012 and for the period then ended and have issued our unqualified report thereon dated December 14, 2012. Our audit included an audit of the Fund’s schedule of investments as of October 31, 2012. This schedule of investments is the responsibility of the Fund’s management. Our responsibility is to express an opinion on this schedule of investments based on our audit.

In our opinion, the accompanying schedule of investments referred to above, when read in conjunction with the financial statements of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

December 14, 2012

18


 

© 2012 The Vanguard Group. Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
 
SNA2270 122012

 


 

Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.

Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, André F. Perold, and Alfred M. Rankin, Jr.

Item 4: Principal Accountant Fees and Services.

(a) Audit Fees.

Audit Fees of the Registrant

Fiscal Year Ended October 31, 2012: $170,000
Fiscal Year Ended October 31, 2011: $161,000

Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.

Fiscal Year Ended October 31, 2012: $4,809,780
Fiscal Year Ended October 31, 2011: $3,978,540

(b) Audit-Related Fees.

Fiscal Year Ended October 31, 2012: $1,812,565
Fiscal Year Ended October 31, 2011: $1,341,750

Includes fees billed in connection with assurance and related services provided to the Registrant, The
Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the
Vanguard Group.

(c) Tax Fees.

Fiscal Year Ended October 31, 2012: $490,518
Fiscal Year Ended October 31, 2011: $373,830

Includes fees billed in connection with tax compliance, planning and advice services provided to the
Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment
companies in the Vanguard Group and related to income and excise taxes.

(d) All Other Fees.

Fiscal Year Ended October 31, 2012: $16,000
Fiscal Year Ended October 31, 2011: $16,000

Includes fees billed for services related to risk management and privacy matters. Services were provided to
the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered
investment companies in the Vanguard Group.


 

(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; and (4) other registered investment companies in the Vanguard Group. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.

     In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.

     The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; or (4) other registered investment companies in the Vanguard Group.

     (2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.

(g) Aggregate Non-Audit Fees.

Fiscal Year Ended October 31, 2012: $506,518
Fiscal Year Ended October 31, 2011: $389,830

Includes fees billed for non-audit services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.


 

Item 5: Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: Emerson U. Fullwood, Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, André F. Perold, Alfred M. Rankin, Jr., and Peter F. Volanakis.

Item 6: Investments.

Not Applicable.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not Applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not Applicable.

Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

Not Applicable.

Item 11: Controls and Procedures.

     (a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

     (b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.


 

Item 12: Exhibits.
 
(a) Code of Ethics.
(b) Certifications.

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  VANGUARD STAR FUNDS
 
By: /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
Date: December 19, 2012

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  VANGUARD STAR FUNDS
 
By: /s/ F. WILLIAM MCNABB III*
  F. WILLIAM MCNABB III
  CHIEF EXECUTIVE OFFICER
Date: December 19, 2012

 

  VANGUARD STAR FUNDS
 
By: /s/ THOMAS J. HIGGINS*
  THOMAS J. HIGGINS
  CHIEF FINANCIAL OFFICER
Date: December 19, 2012

 

* By: /s/ Heidi Stam

Heidi Stam, pursuant to a Power of Attorney filed on March 27, 2012 see file Number 2-11444, Incorporated by Reference.