UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-04098

Name of Registrant:	Vanguard Chester Funds

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

Name and address of agent for service:	Anne E. Robinson, Esquire
	P.O. Box 876
	Valley Forge, PA 19482

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

Date of fiscal year end: September 30

Date of reporting period: October 1, 2020—March 31, 2021

Item 1: Reports to Shareholders

Semiannual Report | March 31, 2021

Vanguard PRIMECAP Fund

Contents


About Your Fund’s Expenses	1

Financial Statements	4

Liquidity Risk Management	17

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.

Six Months Ended March 31, 2021

	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
PRIMECAP Fund	9/30/2020	3/31/2021	Period
Based on Actual Fund Return
Investor Shares	$1,000.00	$1,256.52	$2.14
Admiral™ Shares	1,000.00	1,256.92	1.74
Based on Hypothetical 5% Yearly Return
Investor Shares	$1,000.00	$1,023.04	$1.92
Admiral Shares	1,000.00	1,023.39	1.56

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 0.38% for Investor Shares and 0.31% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (182/365).

PRIMECAP Fund

Fund Allocation

As of March 31, 2021

Communication Services	7.2	%
Consumer Discretionary	13.8
Consumer Staples	0.2
Energy	1.3
Financials	7.9
Health Care	23.9
Industrials	15.9
Information Technology	28.7
Materials	1.1
Real Estate	0.0
The table reflects the fund’s investments, except for short-term investments. Sector categories are based on the Global Industry Classification Standard ("GICS"), except for the "Other" category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

PRIMECAP Fund

Financial Statements (unaudited)

Schedule of Investments

As of March 31, 2021

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

			Market
			Value^•
		Shares		($000)
Common Stocks (98.4%)
Communication Services (7.0%)
^*	Alphabet Inc. Class A	801,937		1,654,011
^*	Baidu Inc. ADR	5,235,778		1,139,043
^*	Alphabet Inc. Class C	453,311		937,733
^*	Walt Disney Co.	2,916,025		538,065
	Activision Blizzard Inc.	4,137,135		384,754
^*	Facebook Inc. Class A	667,400		196,569
^*	Charter Communications Inc. Class A	246,800		152,281
^*	Take-Two Interactive Software Inc.	325,000		57,427
^*	Live Nation Entertainment Inc.	550,340		46,586
^*	T-Mobile US Inc.	360,800		45,205
	Comcast Corp. Class A	487,369		26,372
^*	Altice USA Inc. Class A	703,700		22,891
	Electronic Arts Inc.	5,700		772
				5,201,709
Consumer Discretionary (13.6%)
^*	Alibaba Group Holding Ltd. ADR	8,809,776		1,997,441
^*	Tesla Inc.	2,437,790		1,628,273
	Sony Corp. ADR	14,932,632		1,583,008
	Ross Stores Inc.	7,941,200		952,229
^*	Amazon.com Inc.	257,460		796,602
¹	Whirlpool Corp.	3,381,572		745,129
	TJX Cos. Inc.	8,663,900		573,117
^*,1	Mattel Inc.	27,518,338		548,165
^*	L Brands Inc.	5,560,114		343,949
^*	Carnival Corp.	6,154,065		163,329
^*	Royal Caribbean Cruises Ltd.	1,817,947		155,634
^*	Marriott International Inc. Class A	556,710		82,454
	eBay Inc.	1,320,000		80,837
^*	Burlington Stores Inc.	248,000		74,102
^*	Dollar Tree Inc.	637,000		72,911
	Restaurant Brands International Inc.	808,900		52,578
^*	Hilton Worldwide Holdings Inc.	423,766		51,242
^*	Las Vegas Sands Corp.	712,300		43,279
	McDonald’s Corp.	191,800		42,990
	Lowe’s Cos. Inc.	220,000		41,840
	MGM Resorts International	553,400		21,024
^*	Ulta Beauty Inc.	21,000		6,493
^*	O’Reilly Automotive Inc.	11,000		5,580
^*	AutoZone Inc.	2,750		3,862
				10,066,068
Consumer Staples (0.2%)
	Sysco Corp.	819,400		64,519
	Altria Group Inc.	621,700		31,806
	Mowi ASA	418,000		10,382
	Constellation Brands Inc. Class A	25,700		5,860
	Philip Morris International Inc.	43,300		3,842
				116,409
Energy (1.2%)
	Hess Corp.	5,853,900		414,222
	Pioneer Natural Resources Co.	2,098,800		333,331
	EOG Resources Inc.	1,790,800		129,887
^*	Transocean Ltd.	11,863,773		42,116
	Schlumberger Ltd.	75,200		2,045
				921,601
Financials (7.8%)
	JPMorgan Chase & Co.	7,930,175		1,207,211
	Wells Fargo & Co.	29,723,527		1,161,298
	Charles Schwab Corp.	17,035,216		1,110,355
	Bank of America Corp.	23,008,632		890,204
	Marsh & McLennan Cos. Inc.	5,044,515		614,422
	US Bancorp	3,717,300		205,604
	Citigroup Inc.	2,047,300		148,941
	Raymond James Financial Inc.	1,052,926		129,047
	Progressive Corp.	924,000		88,344
	CME Group Inc.	275,068		56,177

PRIMECAP Fund

			Market
			Value^•
		Shares		($000)
	Goldman Sachs Group Inc.	152,000		49,704
	Morgan Stanley	625,000		48,537
	Discover Financial Services	206,125		19,580
				5,729,424
Health Care (23.5%)
	Eli Lilly and Co.	19,591,408		3,660,067
^*,1	Biogen Inc.	9,337,199		2,612,081
	Amgen Inc.	9,734,355		2,422,005
^{^}	AstraZeneca plc ADR	26,998,268		1,342,354
	Thermo Fisher Scientific Inc.	2,559,629		1,168,164
^*	Boston Scientific Corp.	28,787,944		1,112,654
	Novartis AG ADR	11,878,025		1,015,334
	Roche Holding AG	1,911,013		619,060
	Bristol-Myers Squibb Co.	8,855,513		559,049
^*	BioMarin Pharmaceutical Inc.	6,232,239		470,596
	Abbott Laboratories	3,477,895		416,791
^*	Elanco Animal Health Inc.	14,028,019		413,125
^*	BeiGene Ltd. ADR	1,122,440		390,699
	Zimmer Biomet Holdings Inc.	1,435,930		229,864
	Medtronic plc	1,718,000		202,947
	CVS Health Corp.	2,410,000		181,304
	Agilent Technologies Inc.	822,516		104,575
	Stryker Corp.	389,200		94,801
^*	IQVIA Holdings Inc.	442,224		85,411
²	Siemens Healthineers AG	1,247,642		67,625
^*	Edwards Lifesciences Corp.	607,500		50,811
	Sanofi ADR	969,000		47,927
	Merck & Co. Inc.	600,000		46,254
^*	Alcon Inc.	433,987		30,457
	GlaxoSmithKline plc ADR	548,000		19,558
^*	Waters Corp.	27,030		7,681
	UnitedHealth Group Inc.	5,735		2,134
				17,373,328
Industrials (15.7%)
	FedEx Corp.	9,058,006		2,572,836
^*	Southwest Airlines Co.	28,621,180		1,747,609
	Siemens AG	8,752,217		1,438,096
^*	United Airlines Holdings Inc.	13,405,803		771,370
^*	Airbus SE	5,837,016		662,021
	Caterpillar Inc.	2,720,968		630,911
	Union Pacific Corp.	2,734,800		602,777
^{*,^}	American Airlines Group Inc.	21,847,513		522,156
^*	Delta Air Lines Inc.	9,562,500		461,678
	United Parcel Service Inc. Class B	1,952,970		331,985
^*	Alaska Air Group Inc.	4,278,000		296,080
	Textron Inc.	3,708,000		207,945
^*	TransDigm Group Inc.	343,916		202,195
	Deere & Co.	400,000		149,656
	Carrier Global Corp.	3,261,300		137,692
	CSX Corp.	1,309,000		126,214
	AMETEK Inc.	864,750		110,455
	General Dynamics Corp.	549,330		99,736
^*	Lyft Inc. Class A	1,501,900		94,890
	Otis Worldwide Corp.	1,334,100		91,319
	Raytheon Technologies Corp.	945,000		73,020
	Honeywell International Inc.	240,000		52,097
	L3Harris Technologies Inc.	240,000		48,643
	Rockwell Automation Inc.	178,000		47,248
	Pentair plc	586,000		36,520
^*	Ryanair Holdings plc ADR	250,000		28,750
	nVent Electric plc	887,900		24,781
^*	Uber Technologies Inc.	24,200		1,319
				11,569,999
Information Technology (28.3%)
	Microsoft Corp.	11,969,218		2,821,983
^*	Adobe Inc.	5,298,257		2,518,632
	Texas Instruments Inc.	13,166,592		2,488,354
^*	Micron Technology Inc.	26,876,014		2,370,733
	KLA Corp.	4,630,030		1,529,762
	Intel Corp.	21,037,767		1,346,417
^{^}	Telefonaktiebolaget LM Ericsson ADR	65,638,926		865,777
¹	NetApp Inc.	11,504,141		836,006
	Intuit Inc.	1,643,850		629,693
	QUALCOMM Inc.	4,332,556		574,454
	HP Inc.	16,279,216		516,865
	Hewlett Packard Enterprise Co.	31,995,996		503,617
	Oracle Corp.	6,789,900		476,447
	Analog Devices Inc.	2,765,900		428,936
	NVIDIA Corp.	787,000		420,203
	Visa Inc. Class A	1,883,100		398,709
^*	PayPal Holdings Inc.	1,240,200		301,170
	Cisco Systems Inc.	5,158,679		266,755
	Entegris Inc.	2,107,022		235,565
	Apple Inc.	1,850,000		225,977
	Applied Materials Inc.	1,660,500		221,843
	Corning Inc.	4,577,400		199,163
^*,1	Plantronics Inc.	3,645,100		141,831
^*	Autodesk Inc.	414,200		114,796
^{*,^}	BlackBerry Ltd.	9,975,500		84,093
	Fidelity National Information Services Inc.	544,000		76,492
	Mastercard Inc. Class A	211,600		75,340

PRIMECAP Fund

			Market
			Value^•
		Shares		($000)
^*	Splunk Inc.	350,000		47,418
^*	RingCentral Inc. Class A	133,950		39,901
	Western Digital Corp.	550,000		36,712
^*	Palo Alto Networks Inc.	112,900		36,361
^*	Keysight Technologies Inc.	234,600		33,642
^*	Dell Technologies Inc.	276,000		24,329
	Infineon Technologies AG ADR	75,000		3,194
^*	Okta Inc.	3,500		772
^*	Arista Networks Inc.	1,500		453
				20,892,395
Materials (1.1%)
	Albemarle Corp.	1,797,835		262,682
	DuPont de Nemours Inc.	1,410,456		109,000
	Dow Inc.	1,635,217		104,556
^*	Freeport-McMoRan Inc.	2,845,700		93,709
	Linde plc	289,200		81,016
^*	Glencore plc	17,229,395		67,650
	Corteva Inc.	1,348,416		62,863
				781,476
Real Estate (0.0%)
	Alexandria Real Estate Equities Inc.	80,000		13,144
	Healthpeak Properties Inc.	140,000		4,444
				17,588
Total Common Stocks (Cost $25,931,799)				72,669,997
Temporary Cash Investment (2.7%)
Money Market Fund (2.7%)
^3,4	Vanguard Market Liquidity Fund, 0.081%
	(Cost $1,995,412)	19,956,049		1,995,605
Total Investments (101.1%) (Cost $27,927,211)				74,665,602
Other Assets and Liabilities—Net (-1.1%)				(825,846)
Net Assets (100%)				73,839,756

Cost is in $000.

•

See Note A in Notes to Financial Statements.

Non-income-producing security.

Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $506,674,000.

Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company.

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 March 31, 2021, the value of this security represented 0.1% of net assets.

Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

Collateral of $526,456,000 was received for securities on loan.

ADR—American Depositary Receipt.

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

PRIMECAP Fund

Statement of Assets and Liabilities

As of March 31, 2021

($000s, except shares and per-share amounts)		Amount
Assets
Investments in Securities, at Value
Unaffiliated Issuers (Cost $24,199,743)		67,786,785
Affiliated Issuers (Cost $3,727,468)		6,878,817
Total Investments in Securities		74,665,602
Investment in Vanguard		2,724
Cash		22
Receivables for Investment Securities Sold		74,866
Receivables for Accrued Income		93,793
Receivables for Capital Shares Issued		6,024
Total Assets		74,843,031
Liabilities
Payables for Investment Securities Purchased		10,833
Collateral for Securities on Loan		526,456
Payables to Investment Advisor		32,502
Payables for Capital Shares Redeemed		431,295
Payables to Vanguard		2,189
Total Liabilities		1,003,275
Net Assets		73,839,756
At March 31, 2021, net assets consisted of:

Paid-in Capital		22,643,729
Total Distributable Earnings (Loss)		51,196,027
Net Assets		73,839,756

Investor Shares—Net Assets
Applicable to 40,155,976 outstanding $.001 par value shares of beneficial interest (unlimited authorization)		6,561,302
Net Asset Value Per Share—Investor Shares		$163.40

Admiral Shares—Net Assets
Applicable to 397,300,941 outstanding $.001 par value shares of beneficial interest (unlimited authorization)		67,278,454
Net Asset Value Per Share—Admiral Shares		$169.34

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

PRIMECAP Fund

Statement of Operations

		Six Months Ended
		March 31, 2021
		($000)
Investment Income
Income
Dividends—Unaffiliated Issuers¹		431,847
Dividends—Affiliated Issuers		20,712
Interest—Affiliated Issuers		521
Securities Lending—Net		766
Total Income		453,846
Expenses
Investment Advisory Fees—Note B		62,685
The Vanguard Group—Note C
Management and Administrative—Investor Shares		5,643
Management and Administrative—Admiral Shares		37,406
Marketing and Distribution—Investor Shares		217
Marketing and Distribution—Admiral Shares		854
Custodian Fees		3,034
Shareholders’ Reports—Investor Shares		6
Shareholders’ Reports—Admiral Shares		30
Trustees’ Fees and Expenses		19
Total Expenses		109,894
Net Investment Income		343,952
Realized Net Gain (Loss)
Investment Securities Sold—Unaffiliated Issuers		4,957,416
Investment Securities Sold—Affiliated Issuers		243,543
Foreign Currencies		(29)
Realized Net Gain (Loss)		5,200,930
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers		8,910,306
Investment Securities—Affiliated Issuers		1,296,917
Foreign Currencies		(616)
Change in Unrealized Appreciation (Depreciation)		10,206,607
Net Increase (Decrease) in Net Assets Resulting from Operations		15,751,489

1 Dividends are net of foreign withholding taxes of $17,374,000.

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

PRIMECAP Fund

Statement of Changes in Net Assets

	Six Months Ended	Year Ended
	March 31,	September 30,
	2021	2020
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	343,952	875,564
Realized Net Gain (Loss)	5,200,930	5,074,768
Change in Unrealized Appreciation (Depreciation)	10,206,607	2,803,462
Net Increase (Decrease) in Net Assets Resulting from Operations	15,751,489	8,753,794
Distributions
Investor Shares	(551,613)	(444,045)
Admiral Shares	(5,760,220)	(4,239,627)
Total Distributions	(6,311,833)	(4,683,672)
Capital Share Transactions
Investor Shares	18,971	(803,660)
Admiral Shares	58,069	(2,214,671)
Net Increase (Decrease) from Capital Share Transactions	77,040	(3,018,331)
Total Increase (Decrease)	9,516,696	1,051,791
Net Assets
Beginning of Period	64,323,060	63,271,269
End of Period	73,839,756	64,323,060

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

PRIMECAP Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	March 31,	Year Ended September 30,
Throughout Each Period	2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$142.86	$133.12	$147.61	$126.84	$107.60	$96.99
Investment Operations
Net Investment Income	.713¹	1.745¹	1.715¹	1.474¹	1.398¹	1.401
Net Realized and Unrealized Gain (Loss) on Investments	34.284	17.947	(6.495)	26.529	23.145	15.103
Total from Investment Operations	34.997	19.692	(4.780)	28.003	24.543	16.504
Distributions
Dividends from Net Investment Income	(1.542)	(1.690)	(1.470)	(1.400)	(1.356)	(1.114)
Distributions from Realized Capital Gains	(12.915)	(8.262)	(8.240)	(5.833)	(3.947)	(4.780)
Total Distributions	(14.457)	(9.952)	(9.710)	(7.233)	(5.303)	(5.894)
Net Asset Value, End of Period	$163.40	$142.86	$133.12	$147.61	$126.84	$107.60
Total Return²	25.65%	15.05%	-2.41%	22.86%	23.75%	17.40%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$6,561	$5,697	$6,095	$7,126	$7,699	$7,588
Ratio of Total Expenses to Average Net Assets	0.38%	0.38%	0.38%	0.38%	0.39%	0.39%
Ratio of Net Investment Income to Average Net Assets	0.92%	1.31%	1.32%	1.08%	1.22%	1.37%
Portfolio Turnover Rate	4%	6%	5%	8%	8%	6%

The expense ratio and net investment income ratio for the current period have been annualized.

1 Calculated based on average shares outstanding.

2 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.

PRIMECAP Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	March 31,	Year Ended September 30,
Throughout Each Period	2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$148.12	$138.02	$153.09	$131.45	$111.52	$100.53
Investment Operations
Net Investment Income	.795¹	1.920¹	1.880¹	1.622¹	1.528¹	1.532
Net Realized and Unrealized Gain (Loss) on Investments	35.534	18.600	(6.756)	27.508	23.981	15.645
Total from Investment Operations	36.329	20.520	(4.876)	29.130	25.509	17.177
Distributions
Dividends from Net Investment Income	(1.716)	(1.853)	(1.647)	(1.444)	(1.491)	(1.236)
Distributions from Realized Capital Gains	(13.393)	(8.567)	(8.547)	(6.046)	(4.088)	(4.951)
Total Distributions	(15.109)	(10.420)	(10.194)	(7.490)	(5.579)	(6.187)
Net Asset Value, End of Period	$169.34	$148.12	$138.02	$153.09	$131.45	$111.52
Total Return²	25.69%	15.13%	-2.34%	22.95%	23.83%	17.48%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$67,278	$58,626	$57,177	$62,361	$50,615	$39,852
Ratio of Total Expenses to Average Net Assets	0.31%	0.31%	0.31%	0.31%	0.32%	0.33%
Ratio of Net Investment Income to Average Net Assets	0.99%	1.39%	1.39%	1.15%	1.29%	1.43%
Portfolio Turnover Rate	4%	6%	5%	8%	8%	6%

The expense ratio and net investment income ratio for the current period have been annualized.

1 Calculated based on average shares outstanding.

2 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.

PRIMECAP Fund

Notes to Financial Statements

Vanguard PRIMECAP Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

Market disruptions associated with the COVID-19 pandemic have had a global impact, and uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of the fund and thus fund performance.

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

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value.

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

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

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

PRIMECAP Fund

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

6. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes, subject to the fund’s regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under either facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread, except that borrowings under the uncommitted credit facility may bear interest based upon an alternative rate agreed to by the fund and Vanguard.

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

PRIMECAP Fund

For the six months ended March 31, 2021, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. PRIMECAP Management Company provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended March 31, 2021, the investment advisory fee represented an effective annual rate of 0.18% of the fund’s average net assets.

C. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At March 31, 2021, the fund had contributed to Vanguard capital in the amount of $2,724,000, representing less than 0.01% of the fund’s net assets and 1.09% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

PRIMECAP Fund

The following table summarizes the market value of the fund’s investments as of March 31, 2021, based on the inputs used to value them:

	Level 1		Level 2		Level 3		Total
	($000)		($000)		($000)		($000)
Investments
Assets
Common Stocks		69,805,163		2,864,834		—		72,669,997
Temporary Cash Investments		1,995,605		—		—		1,995,605
Total		71,800,768		2,864,834		—		74,665,602

E. As of March 31, 2021, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost		27,927,211
Gross Unrealized Appreciation		48,172,212
Gross Unrealized Depreciation		(1,433,821)
Net Unrealized Appreciation (Depreciation)		46,738,391

F. During the six months ended March 31, 2021, the fund purchased $2,658,858,000 of investment securities and sold $8,624,719,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended				Year Ended
	March 31, 2021				September 30, 2020
	Amount		Shares		Amount		Shares
	($000)		(000)		($000)			(000)
Investor Shares
Issued		205,354		1,330		547,781		4,262
Issued in Lieu of Cash Distributions		536,328		3,657		432,110		3,129
Redeemed		(722,711)		(4,709)		(1,783,551)		(13,296)
Net Increase (Decrease)—Investor Shares		18,971		278		(803,660)		(5,905)
Admiral Shares
Issued		2,019,289		12,370		2,426,834		17,481
Issued in Lieu of Cash Distributions		5,395,982		35,507		3,984,207		27,842
Redeemed		(7,357,202)		(46,382)		(8,625,712)		(63,781)
Net Increase (Decrease)—Admiral Shares		58,069		1,495		(2,214,671)		(18,458)

PRIMECAP Fund

H. Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:

			Current Period Transactions
	Sept. 30,				Proceeds		Realized									March 31,
	2020				from		Net			Change in				Capital Gain		2021
	Market		Purchases		Securities		Gain			Unrealized		Distributions				Market
	Value		at Cost		Sold		(Loss)		App. (Dep.)			Income		Received		Value
	($000)		($000)		($000)		($000)			($000)		($000)		($000)		($000)
Vanguard Market
Liquidity Fund		1,421,884		NA¹		NA¹		209			(209)		521		—		1,995,605
Biogen Inc.		2,586,564		77,681		18,047		1,763			(35,880)		—		—		2,612,081
Mattel Inc.		314,153		12,815		3,025		(111)			224,333		—		—		548,165
NetApp Inc.		554,573		—		74,744		30,989			325,188		11,954		—		836,006
Plantronics Inc.		43,480		—		343		(809)			99,503		—		—		141,831
Southwest
Airlines Co.		1,283,631		—		301,317		195,102			570,193		—		—		NA²
Whirlpool Corp.		727,169		1,888		114,117		16,400			113,789		8,758		—		745,129
Total		6,931,454						243,543			1,296,917		21,233		—		6,878,817

1 Not applicable—purchases and sales are for temporary cash investment purposes.

2 Not applicable—at March 31, 2021, the security was still held, but the issuer was no longer an affiliated company of the fund.

I. Management has determined that no events or transactions occurred subsequent to March 31, 2021, that would require recognition or disclosure in these financial statements.

Liquidity Risk Management

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

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

The board of trustees of Vanguard Chester Funds approved the appointment of liquidity risk management program administrators responsible for administering Vanguard PRIMECAP Fund’s Program and for carrying out the specific responsibilities set forth in the Program, including reporting to the board on at least an annual basis regarding the Program’s operation, its adequacy, and the effectiveness of its implementation for the past year (the “Program Administrator Report”). The board has reviewed the Program Administrator Report covering the period from January 1, 2020, through December 31, 2020 (the “Review Period”). The Program Administrator Report stated that during the Review Period the Program operated and was implemented effectively to manage the fund’s liquidity risk.

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Fund Information > 800-662-7447 Direct Investor Account Services > 800-662-2739 Institutional Investor Services > 800-523-1036 Text Telephone for People Who Are Deaf or Hard of Hearing > 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. You can obtain a free copy of Vanguard’s proxy voting guidelines by visiting vanguard.com/proxyreporting or by calling Vanguard at 800-662-2739. The guidelines are also available from the SEC’s website, www.sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or www.sec.gov. You can review information about your fund on the SEC’s website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.





	© 2021 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. Q592 052021

Semiannual Report | March 31, 2021

Vanguard Target Retirement Funds

Vanguard Target Retirement Income Fund

Vanguard Target Retirement 2015 Fund

Vanguard Target Retirement 2020 Fund

Vanguard Target Retirement 2025 Fund

Vanguard Target Retirement 2030 Fund

Vanguard Target Retirement 2035 Fund

Contents

About Your Fund’s Expenses	1
Target Retirement Income Fund	3
Target Retirement 2015 Fund	14
Target Retirement 2020 Fund	25
Target Retirement 2025 Fund	36
Target Retirement 2030 Fund	47
Target Retirement 2035 Fund	58
Trustees Approve Advisory Arrangements	69
Liquidity Risk Management	71

Six Months Ended March 31, 2021
	Beginning Account Value 9/30/2020	Ending Account Value 3/31/2021	Expenses Paid During Period
Based on Actual Fund Return
Target Retirement Income Fund	$1,000.00	$1,052.30	$0.61
Target Retirement 2015 Fund	$1,000.00	$1,060.60	$0.62
Target Retirement 2020 Fund	$1,000.00	$1,092.50	$0.68
Target Retirement 2025 Fund	$1,000.00	$1,113.60	$0.69
Target Retirement 2030 Fund	$1,000.00	$1,132.80	$0.69
Target Retirement 2035 Fund	$1,000.00	$1,151.60	$0.75
Based on Hypothetical 5% Yearly Return
Target Retirement Income Fund	$1,000.00	$1,024.33	$0.61
Target Retirement 2015 Fund	$1,000.00	$1,024.33	$0.61
Target Retirement 2020 Fund	$1,000.00	$1,024.28	$0.66
Target Retirement 2025 Fund	$1,000.00	$1,024.28	$0.66
Target Retirement 2030 Fund	$1,000.00	$1,024.28	$0.66
Target Retirement 2035 Fund	$1,000.00	$1,024.23	$0.71

Vanguard Total Bond Market II Index Fund Investor Shares	37.3%
Vanguard Total Stock Market Index Fund Investor Shares	17.5
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	17.0
Vanguard Total International Bond Index Fund Investor Shares	16.0
Vanguard Total International Stock Index Fund Investor Shares	12.1
Vanguard Total International Bond II Index Fund Investor Shares	0.1

		Shares	Market Value• ($000)
Investment Companies (99.0%)
U.S. Stock Fund (17.3%)
	Vanguard Total Stock Market Index Fund Investor Shares	30,181,497	3,032,335
International Stock Fund (12.0%)
	Vanguard Total International Stock Index Fund Investor Shares	104,290,084	2,098,316
U.S. Bond Funds (53.8%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	588,691,280	6,469,717
	Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	114,048,471	2,942,451
			9,412,168
International Bond Funds (15.9%)
	Vanguard Total International Bond Index Fund Investor Shares	243,505,762	2,775,966
¹	Vanguard Total International Bond II Index Fund Investor Shares	1,544,000	15,440
			2,791,406
Total Investment Companies (Cost $13,599,988)			17,334,225
Temporary Cash Investments (1.0%)
Money Market Fund (1.0%)
¹	Vanguard Market Liquidity Fund, 0.081% (Cost $185,065)	1,850,746	185,075
Total Investments (100.0%) (Cost $13,785,053)			17,519,300
Other Assets and Liabilities—Net (0.0%)			(7,714)
Net Assets (100%)			17,511,586

Cost is in $000.
•	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.

Futures Contracts
			($000)
	Expiration	Number of Long (Short) Contracts	Notional Amount	Value and Unrealized Appreciation (Depreciation)
Long Futures Contracts
10-Year U.S. Treasury Note	June 2021	440	57,612	(1,309)
E-mini S&P 500 Index	June 2021	618	122,593	983
				(326)


	Six Months Ended March 31, 2021
	($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds	145,587
Net Investment Income—Note B	145,587
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds	64,959
Affiliated Funds Sold	543,672
Futures Contracts	9,362
Realized Net Gain (Loss)	617,993
Change in Unrealized Appreciation (Depreciation)
Affiliated Funds	156,154
Futures Contracts	(2,736)
Change in Unrealized Appreciation (Depreciation)	153,418
Net Increase (Decrease) in Net Assets Resulting from Operations	916,998


	Six Months Ended March 31, 2021	Year Ended September 30, 2020
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	145,587	371,700
Realized Net Gain (Loss)	617,993	297,540
Change in Unrealized Appreciation (Depreciation)	153,418	506,784
Net Increase (Decrease) in Net Assets Resulting from Operations	916,998	1,176,024
Distributions
Total Distributions	(479,143)	(378,668)
Capital Share Transactions
Issued	1,799,369	3,038,878
Issued in Lieu of Cash Distributions	453,379	359,137
Redeemed	(2,754,837)	(3,603,059)
Net Increase (Decrease) from Capital Share Transactions	(502,089)	(205,044)
Total Increase (Decrease)	(64,234)	592,312
Net Assets
Beginning of Period	17,575,820	16,983,508
End of Period	17,511,586	17,575,820

For a Share Outstanding Throughout Each Period	Six Months Ended March 31, 2021	Year Ended September 30,
For a Share Outstanding Throughout Each Period	Six Months Ended March 31, 2021	2020	2019	2018	2017	2016
Net Asset Value, Beginning of Period	$14.54	$13.85	$13.52	$13.46	$13.08	$12.59
Investment Operations
Net Investment Income	.121¹	.308¹	.341¹	.334¹	.250¹	.229
Capital Gain Distributions Received	.054¹	—	—	.001¹	.004¹	.007
Net Realized and Unrealized Gain (Loss) on Investments	.585	.696	.533	.107	.422	.692
Total from Investment Operations	.760	1.004	.874	.442	.676	.928
Distributions
Dividends from Net Investment Income	(.135)	(.297)	(.352)	(.327)	(.254)	(.227)
Distributions from Realized Capital Gains	(.265)	(.017)	(.192)	(.055)	(.042)	(.211)
Total Distributions	(.400)	(.314)	(.544)	(.382)	(.296)	(.438)
Net Asset Value, End of Period	$14.90	$14.54	$13.85	$13.52	$13.46	$13.08
Total Return²	5.23%	7.35%	6.75%	3.31%	5.26%	7.54%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$17,512	$17,576	$16,984	$16,613	$16,645	$10,790
Ratio of Total Expenses to Average Net Assets	—	—	—	—	—	—
Acquired Fund Fees and Expenses	0.12%	0.12%	0.12%	0.12%	0.13%	0.13%
Ratio of Net Investment Income to Average Net Assets	1.62%	2.19%	2.54%	2.47%	1.90%	1.78%
Portfolio Turnover Rate	5%	17%	10%	6%	8%	11%
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	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.

	Amount ($000)
Tax Cost	13,785,053
Gross Unrealized Appreciation	3,774,306
Gross Unrealized Depreciation	(40,385)
Net Unrealized Appreciation (Depreciation)	3,733,921

	Six Months Ended March 31, 2021	Year Ended September 30, 2020
	Shares (000)	Shares (000)
Issued	120,420	216,355
Issued in Lieu of Cash Distributions	30,385	25,681
Redeemed	(184,426)	(259,849)
Net Increase (Decrease) in Shares Outstanding	(33,621)	(17,813)

		Current Period Transactions
	Sep. 30, 2020 Market Value ($000)	Purchases at Cost ($000)	Proceeds from Securities Sold ($000)	Realized Net Gain (Loss) ($000)	Change in Unrealized App. (Dep.) ($000)	Income ($000)	Capital Gain Distributions Received ($000)	Mar. 31, 2021 Market Value ($000)
Vanguard Market Liquidity Fund	224,508	NA¹	NA¹	—	—	88	—	185,075
Vanguard Short-Term Inflation-Protected Securities Index Fund	2,953,727	86,149	143,528	1,395	44,708	23,799	—	2,942,451
Vanguard Total Bond Market II Index Fund	6,486,928	414,287	107,129	(3,756)	(320,613)	61,115	60,607	6,469,717
Vanguard Total International Bond Index Fund	2,736,237	147,367	50,342	(1,102)	(56,194)	12,365	4,352	2,775,966
Vanguard Total International Bond II Index Fund	—	15,440	—	—	—	—	—	15,440
Vanguard Total International Stock Index Fund	2,107,062	26,858	446,808	85,497	325,707	26,857	—	2,098,316
Vanguard Total Stock Market Index Fund	3,053,704	116,879	762,432	461,638	162,546	21,363	—	3,032,335
Total	17,562,166	806,980	1,510,239	543,672	156,154	145,587	64,959	17,519,300

Vanguard Total Bond Market II Index Fund Investor Shares	35.9%
Vanguard Total Stock Market Index Fund Investor Shares	19.6
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	15.4
Vanguard Total International Bond Index Fund Investor Shares	15.4
Vanguard Total International Stock Index Fund Investor Shares	13.5
Vanguard Total International Bond II Index Fund Investor Shares	0.2

		Shares	Market Value• ($000)
Investment Companies (99.2%)
U.S. Stock Fund (19.5%)
	Vanguard Total Stock Market Index Fund Investor Shares	28,211,733	2,834,433
International Stock Fund (13.4%)
	Vanguard Total International Stock Index Fund Investor Shares	97,089,750	1,953,446
U.S. Bond Funds (50.9%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	472,249,695	5,190,024
	Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	86,328,694	2,227,280
			7,417,304
International Bond Funds (15.4%)
	Vanguard Total International Bond Index Fund Investor Shares	194,869,710	2,221,515
¹	Vanguard Total International Bond II Index Fund Investor Shares	2,000,000	20,000
			2,241,515
Total Investment Companies (Cost $10,864,855)			14,446,698
Temporary Cash Investments (1.0%)
Money Market Fund (1.0%)
¹	Vanguard Market Liquidity Fund, 0.081% (Cost $150,478)	1,504,834	150,483
Total Investments (100.2%) (Cost $11,015,333)			14,597,181
Other Assets and Liabilities—Net (-0.2%)			(26,039)
Net Assets (100%)			14,571,142

	Amount ($000)
Tax Cost	11,015,333
Gross Unrealized Appreciation	3,604,620
Gross Unrealized Depreciation	(23,109)
Net Unrealized Appreciation (Depreciation)	3,581,511

Vanguard Total Bond Market II Index Fund Investor Shares	30.4%
Vanguard Total Stock Market Index Fund Investor Shares	28.2
Vanguard Total International Stock Index Fund Investor Shares	19.3
Vanguard Total International Bond Index Fund Investor Shares	12.9
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	9.0
Vanguard Total International Bond II Index Fund Investor Shares	0.2

	Amount ($000)
Tax Cost	21,716,678
Gross Unrealized Appreciation	9,037,947
Gross Unrealized Depreciation	(52,177)
Net Unrealized Appreciation (Depreciation)	8,985,770

Vanguard Total Stock Market Index Fund Investor Shares	35.1%
Vanguard Total Bond Market II Index Fund Investor Shares	28.1
Vanguard Total International Stock Index Fund Investor Shares	23.7
Vanguard Total International Bond Index Fund Investor Shares	11.9
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	0.8
Vanguard Total International Bond II Index Fund Investor Shares	0.4

	Amount ($000)
Tax Cost	31,885,642
Gross Unrealized Appreciation	16,337,805
Gross Unrealized Depreciation	(140,280)
Net Unrealized Appreciation (Depreciation)	16,197,525

Vanguard Total Stock Market Index Fund Investor Shares	40.0%
Vanguard Total International Stock Index Fund Investor Shares	26.9
Vanguard Total Bond Market II Index Fund Investor Shares	23.0
Vanguard Total International Bond Index Fund Investor Shares	9.8
Vanguard Total International Bond II Index Fund Investor Shares	0.3

	Amount ($000)
Tax Cost	28,304,434
Gross Unrealized Appreciation	16,047,016
Gross Unrealized Depreciation	(126,808)
Net Unrealized Appreciation (Depreciation)	15,920,208

Vanguard Total Stock Market Index Fund Investor Shares	44.5%
Vanguard Total International Stock Index Fund Investor Shares	30.0
Vanguard Total Bond Market II Index Fund Investor Shares	17.7
Vanguard Total International Bond Index Fund Investor Shares	7.6
Vanguard Total International Bond II Index Fund Investor Shares	0.2

		Shares	Market Value• ($000)
Investment Companies (98.9%)
U.S. Stock Fund (44.1%)
	Vanguard Total Stock Market Index Fund Investor Shares	191,035,888	19,193,375
International Stock Fund (29.6%)
	Vanguard Total International Stock Index Fund Investor Shares	642,263,539	12,922,342
U.S. Bond Fund (17.5%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	693,899,957	7,625,961
International Bond Funds (7.7%)
	Vanguard Total International Bond Index Fund Investor Shares	285,788,310	3,257,987
¹	Vanguard Total International Bond II Index Fund Investor Shares	9,500,460	95,004
			3,352,991
Total Investment Companies (Cost $25,614,738)			43,094,669
Temporary Cash Investments (1.1%)
Money Market Fund (1.1%)
¹	Vanguard Market Liquidity Fund, 0.081% (Cost $464,261)	4,642,810	464,281
Total Investments (100.0%) (Cost $26,078,999)			43,558,950
Other Assets and Liabilities—Net (0.0%)			(13,404)
Net Assets (100%)			43,545,546

	Amount ($000)
Tax Cost	26,079,672
Gross Unrealized Appreciation	17,589,746
Gross Unrealized Depreciation	(116,039)
Net Unrealized Appreciation (Depreciation)	17,473,707

About Your Fund’s Expenses	1
Target Retirement 2040 Fund	3
Target Retirement 2045 Fund	14
Target Retirement 2050 Fund	25
Target Retirement 2055 Fund	36
Target Retirement 2060 Fund	47
Target Retirement 2065 Fund	58
Trustees Approve Advisory Arrangements	69
Liquidity Risk Management	71

Vanguard Total Stock Market Index Fund Investor Shares	49.0%
Vanguard Total International Stock Index Fund Investor Shares	32.9
Vanguard Total Bond Market II Index Fund Investor Shares	12.6
Vanguard Total International Bond Index Fund Investor Shares	5.5

	Amount ($000)
Tax Cost	20,251,461
Gross Unrealized Appreciation	14,556,252
Gross Unrealized Depreciation	(75,656)
Net Unrealized Appreciation (Depreciation)	14,480,596

Vanguard Total Stock Market Index Fund Investor Shares	53.5%
Vanguard Total International Stock Index Fund Investor Shares	36.0
Vanguard Total Bond Market II Index Fund Investor Shares	7.4
Vanguard Total International Bond Index Fund Investor Shares	3.1

		Shares	Market Value• ($000)
Investment Companies (99.1%)
U.S. Stock Fund (53.1%)
	Vanguard Total Stock Market Index Fund Investor Shares	175,788,288	17,661,449
International Stock Fund (35.6%)
	Vanguard Total International Stock Index Fund Investor Shares	589,430,388	11,859,339
U.S. Bond Fund (7.3%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	222,026,311	2,440,069
International Bond Fund (3.1%)
	Vanguard Total International Bond Index Fund Investor Shares	90,518,399	1,031,910
Total Investment Companies (Cost $18,402,327)			32,992,767
Temporary Cash Investments (0.9%)
Money Market Fund (0.9%)
¹	Vanguard Market Liquidity Fund, 0.081% (Cost $315,302)	3,153,159	315,316
Total Investments (100.0%) (Cost $18,717,629)			33,308,083
Other Assets and Liabilities—Net (0.0%)			(2,053)
Net Assets (100%)			33,306,030

	Amount ($000)
Tax Cost	18,717,629
Gross Unrealized Appreciation	14,636,601
Gross Unrealized Depreciation	(49,665)
Net Unrealized Appreciation (Depreciation)	14,586,936