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—September 30, 2021

Item 1: Reports to Shareholders

Annual Report | September 30, 2021

Vanguard PRIMECAP Fund

Contents

Your Fund’s Performance at a Glance	1
Advisor’s Report	2
About Your Fund’s Expenses	5
Performance Summary	7
Financial Statements	9
Trustees Approve Advisory Arrangement	25

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.

Your Fund’s Performance at a Glance

•	Vanguard PRIMECAP Fund returned 29.83% for Admiral Shares and 29.74% for Investor Shares for the 12 months ended September 30, 2021. Its benchmark, the Standard & Poor’s 500 Index, returned 30.00%.
•	The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Countries that have been more successful in containing the virus have generally fared better economically. Swift and extensive fiscal and monetary support from policymakers has also been key to the rebound. Stock returns were excellent for the year under review, reflecting the recovery following the sharp downturn at the start of the pandemic.
•	Value stocks outperformed their growth counterparts, and small-capitalization stocks outdistanced mid- and large-caps for the fiscal year.
•	In the bond markets, yields moved higher across much of the developed world amid concerns about inflation and the prospect of central banks scaling back their bond-buying programs or raising interest rates.
•	The fund’s holdings in the information technology sector contributed most to relative performance for the 12 months. Health care stocks detracted most.

Market Barometer

	Average Annual Total Returns Periods Ended September 30, 2021
	One Year	Three Years	Five Years
Stocks
Russell 1000 Index (Large-caps)	30.96%	16.43%	17.11%
Russell 2000 Index (Small-caps)	47.68	10.54	13.45
Russell 3000 Index (Broad U.S. market)	31.88	16.00	16.85
FTSE All-World ex US Index (International)	24.73	8.49	9.28
Bonds
Bloomberg U.S. Aggregate Bond Index (Broad taxable market)	-0.90%	5.36%	2.94%
Bloomberg Municipal Bond Index (Broad tax-exempt market)	2.63	5.06	3.26
FTSE Three-Month U.S. Treasury Bill Index	0.06	1.14	1.13
CPI
Consumer Price Index	5.39%	2.81%	2.59%

Advisor’s Report

For the 12 months ended September 30, 2021, Vanguard PRIMECAP Fund returned 29.83% for Admiral Shares and 29.74% for Investor Shares, in line with the 30.00% total return of its benchmark, the Standard & Poor’s 500 Index, but ahead of the 26.98% total return of its multi-capitalization growth fund competitors. Relative to the S&P 500 Index, favorable stock selection roughly offset unfavorable sector allocation during the period.

Investment environment

The fiscal year ended September 30, 2021, featured a steady rise in the equity markets alongside an uneven economic recovery. U.S. indexes continued their aggressive upswing—the S&P 500 Index doubled from its March 2020 low to its early September 2021 peak—as last year’s initial bounce, powered primarily by Big Tech and other pandemic beneficiaries, yielded to broader cyclical strength. Oil prices and interest rates rebounded, pushing the energy (+83%) and financial (+59%) sectors sharply higher, while COVID-19 “ground zero” industries such as airlines and cruise lines also outperformed. More defensive sectors, such as consumer staples (+11%) and utilities (+11%), lagged the market but still registered gains.

The improvement in underlying economic activity was less uniform. Following last winter’s alarming scourge, when the country largely retrenched amid several thousand daily COVID-19-related deaths, our springtime reopening signaled a robust economic renewal. More than

150 million Americans achieved “fully vaccinated” status by midyear, and daily deaths plummeted more than 90 percent. The Federal Reserve in June forecasted 7% real GDP growth for 2021, an annual growth rate not seen since 1984.

But the euphoria was short-lived. The highly transmissible Delta variant surfaced, creating yet another wave of infection. Meanwhile, abundant monetary and fiscal stimulus collided with fragile supply chains, inducing worrisome inflation. The recovery’s momentum thus stalled somewhat—the Fed now estimates less than 6% real GDP growth for 2021—and the equity market eventually ceded ground, sliding 5% in September.

Outlook for U.S. equities

Our view on U.S. equities overall remains conflicted. We continue to view them as relatively attractive compared with conventional alternatives. However, we still assess inflation as an underappreciated risk. Treasury yields doubled during the period (the 10-year Treasury yield increased from 0.7% to 1.5%) but remain historically low. The 10-year breakeven inflation rate, a market-based gauge of inflation expectations, finished the period higher than a year ago (2.4%, compared with 1.6%), but a mid-2% reading is hardly a distress signal. The market’s apparent complacency reflects the Fed’s characterization of inflation as a temporary phenomenon.

The market has thus managed to maintain its elevated valuation; the S&P 500 Index trades at 19.7 times price/earnings valuation on 2022 estimated earnings. This valuation metric has stabilized of late, not worsened, with index advances largely mirroring upward revisions to estimated earnings. But absolute valuation levels are historically expensive. Coupled with stubbornly high inflation readings, this dynamic necessarily tempers our outlook.

Portfolio update

The portfolio maintained its substantial overweight positions in health care and industrial stocks; these sectors made up 40% of average assets, compared with their 22% combined weighting in the S&P 500 Index. The portfolio was modestly overweighted in information technology (28% of average assets versus 27% for the index) and consumer discretionary (13% versus 12%), and underweighted in financials (7% versus 11%) and communication services (7% versus 11%). The fund maintained limited exposure to all other sectors, including consumer staples, energy, materials, real estate, and utilities.

Sector allocation was unfavorable during the period. The fund’s overweight to health care (+23% index return) and underweight positions in energy (+83%) and financials (+59%) detracted from results.

Strong stock selection provided an offset, particularly in information technology and financials. Within information technology, outperformance from some

semiconductor holdings—KLA (+75%), Micron (+53%), and Texas Instruments (+38%)—complemented limited exposure to heavyweight Apple (+23%), which lagged the market after more than doubling last year. Within financials, Charles Schwab (+100%) and Wells Fargo (+100%) soared as beneficiaries of both cyclical strength and higher interest rates.

Selection elsewhere was more mixed. Within health care, Eli Lilly (+59%) was unable to offset multiple biopharmaceutical laggards, most notably Amgen (–15%), Novartis (–4%), and Biogen (flat). And in consumer discretionary, a large position in Tesla (+81%, most of which pre-dated its December inclusion in the S&P 500 Index) and a sizable underweight in Amazon (+1%) only partially offset a dramatic decline in Alibaba (–50%), which suffered under increased Chinese regulatory scrutiny.

As of September 30, 2021, the fund’s top 10 holdings made up 35% of assets.

Advisor perspectives

Health care is our second-largest sector weighting and, by a wide margin, our largest overweight position; the fund’s exposure eclipses the benchmark’s average weighting (13%) by 12 percentage points. This positioning proved detrimental during the period, as the sector was unable to keep pace with the market’s vigorous ascent. But we remain confident in our holdings’ long-term opportunities.

When the pandemic unfolded, the U.S. government response was to dig proverbial trenches and, from its foxhole, blindly launch a monetary and fiscal bazooka. This lockdown-heavy reaction surprised us, but perhaps should not have—the same self-preservation instinct underlies the inherent value in better medical outcomes. It also informs our attraction to the biopharmaceutical industry, where innovative drugs and therapies can create immense value. Indeed, in our opinion this common COVID-19 response strategy was destined to fail absent the biopharmaceutical industry (and modern medicine more generally) providing a viable exit path.

We thus hoped the pandemic would highlight the health care sector’s unsung significance—in sharp contrast to its usual position in political and regulatory crosshairs. But even miraculous vaccines and ongoing therapy breakthroughs have been unable to salvage health care’s reputation. The sector is among the least expensive, trading at a quite reasonable 16.4 times 2022 price/earnings at period-end—a nearly 20% discount to the market (19.7 times) and well below its defensive peers, consumer staples (19.4 times) and utilities (18.4 times).

Within this less-favorable context, our own health care portfolio suffered numerous stock-specific setbacks, most notably Biogen’s relapse. One of our largest holdings, Biogen’s stock spiked 38% on June 7, when the FDA granted Aduhelm accelerated approval for the treatment of Alzheimer’s disease. By

period-end, Biogen had squandered its gain, a function of the drug’s disastrous launch amid intense market skepticism.

As with Biogen, we continue to own companies, in health care and elsewhere, that are controversial or unloved. These stocks often feature outsized risks (including binary clinical trial outcomes), unusually opaque futures, and well-worn Wall Street opposition. We do not pursue volatility or opacity or hostility per se; rather, we seek mismatches between current share prices and our assessments of long-term value, and we tend to find these dislocations in such fraught environments.

Conclusion

COVID-19’s unwelcome impact has been more devastating and lasting than we first contemplated. And yet the core of our original conviction has been sustained: Normalcy will ultimately return. The contours of society have no doubt forever shifted, but society’s underlying structure and purpose—our collective humanity—endure. As COVID-19 transitions from pandemic to endemic, we believe that collective humanity, briefly obscured by both virus and fiat, will flourish once more. Our portfolio continues to be positioned for this eventuality.

PRIMECAP Management Company

October 15, 2021

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 September 30, 2021
	Beginning Account Value 3/31/2021	Ending Account Value 9/30/2021	Expenses Paid During Period
Based on Actual Fund Return
PRIMECAP Fund
Investor Shares	$1,000.00	$1,032.60	$1.94
Admiral™ Shares	1,000.00	1,033.00	1.58
Based on Hypothetical 5% Yearly Return
PRIMECAP Fund
Investor Shares	$1,000.00	$1,023.16	$1.93
Admiral Shares	1,000.00	1,023.51	1.57

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 (183/365).

PRIMECAP 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: September 30, 2011, Through September 30, 2021

Initial Investment of $10,000

	Average Annual Total Returns Periods Ended September 30, 2021
	One Year	Five Years	Ten Years	Final Value of a $10,000 Investment
PRIMECAP Fund Investor Shares	29.74%	17.24%	17.88%	$51,803
S&P 500 Index	30.00	16.90	16.63	46,586
Dow Jones U.S. Total Stock Market Float Adjusted Index	32.13	16.82	16.56	46,280


	One Year	Five Years	Ten Years	Final Value of a $50,000 Investment
PRIMECAP Fund Admiral Shares	29.83%	17.32%	17.97%	$260,996
S&P 500 Index	30.00	16.90	16.63	232,931
Dow Jones U.S. Total Stock Market Float Adjusted Index	32.13	16.82	16.56	231,402

See Financial Highlights for dividend and capital gains information.

PRIMECAP Fund

Fund Allocation

As of September 30, 2021

Communication Services	7.0%
Consumer Discretionary	13.2
Consumer Staples	0.2
Energy	1.4
Financials	8.7
Health Care	25.0
Industrials	14.0
Information Technology	29.3
Materials	1.2
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.

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

Schedule of Investments

As of September 30, 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.

		Shares	Market Value• ($000)
Common Stocks (97.7%)
Communication Services (6.9%)
^*	Alphabet Inc. Class A	715,637	1,913,270
^*	Alphabet Inc. Class C	390,661	1,041,233
^*	Baidu Inc. ADR	5,366,078	825,035
^*	Walt Disney Co.	2,877,425	486,774
	Activision Blizzard Inc.	3,884,000	300,583
^*	Facebook Inc. Class A	531,050	180,233
^*	Charter Communications Inc. Class A	202,300	147,185
^*	Take-Two Interactive Software Inc.	333,500	51,382
^*	Live Nation Entertainment Inc.	550,340	50,152
^*	T-Mobile U.S. Inc.	360,800	46,096
	Comcast Corp. Class A	412,369	23,064
^*	Altice USA Inc. Class A	1,068,500	22,139
	Nintendo Co. Ltd.	1,750	836
	Electronic Arts Inc.	5,700	811
			5,088,793
Consumer Discretionary (12.9%)
^*	Tesla Inc.	2,404,700	1,864,797
¹	Sony Group Corp. ADR	14,912,157	1,648,986
^*	Alibaba Group Holding Ltd. ADR	9,597,317	1,420,883
	Ross Stores Inc.	7,941,200	864,400
^*	Amazon.com Inc.	256,480	842,547
	Whirlpool Corp.	3,002,832	612,157
	TJX Cos. Inc.	8,624,500	569,045
^*,2	Mattel Inc.	27,518,338	510,740
	Bath & Body Works Inc.	3,562,414	224,539
^*	Royal Caribbean Cruises Ltd.	1,806,947	160,728
^*	Carnival Corp.	6,154,065	153,913
	eBay Inc.	1,320,000	91,964
^*	Marriott International Inc. Class A	556,710	82,443
^*	Burlington Stores Inc.	248,000	70,325
^*	Victoria's Secret & Co.	1,187,471	65,620
^*	Dollar Tree Inc.	637,000	60,974
^*	Hilton Worldwide Holdings Inc.	423,766	55,984
	Restaurant Brands International Inc.	808,900	49,497
	McDonald's Corp.	191,800	46,245
	Lowe's Cos. Inc.	220,000	44,629
^*	Las Vegas Sands Corp.	712,300	26,070
	MGM Resorts International	553,400	23,879

		Shares	Market Value• ($000)
^*	Ulta Beauty Inc.	21,000	7,579
^*	O'Reilly Automotive Inc.	11,000	6,722
^*	AutoZone Inc.	2,750	4,669
			9,509,335
Consumer Staples (0.2%)
	Sysco Corp.	1,371,300	107,647
	Altria Group Inc.	621,700	28,300
	Mowi ASA	418,000	10,606
	Constellation Brands Inc. Class A	25,700	5,415
	Philip Morris International Inc.	43,300	4,104
			156,072
Energy (1.4%)
	Hess Corp.	6,033,900	471,308
	Pioneer Natural Resources Co.	2,092,700	348,455
	EOG Resources Inc.	1,781,200	142,977
^*,1	Transocean Ltd.	11,863,773	44,964
	Schlumberger NV	75,200	2,229
			1,009,933
Financials (8.5%)
	Wells Fargo & Co.	29,880,027	1,386,732
	Charles Schwab Corp.	16,835,216	1,226,277
	JPMorgan Chase & Co.	7,309,275	1,196,455
	Bank of America Corp.	21,111,032	896,163
	Marsh & McLennan Cos. Inc.	4,844,515	733,605
	U.S. Bancorp	3,592,300	213,526
	Raymond James Financial Inc.	2,257,965	208,365
	Citigroup Inc.	2,047,300	143,680
	Progressive Corp.	924,000	83,520
	CME Group Inc.	375,168	72,550
	Morgan Stanley	625,000	60,819
	Goldman Sachs Group Inc.	152,000	57,461
	Discover Financial Services	182,525	22,423
			6,301,576
Health Care (24.4%)
	Eli Lilly & Co.	18,347,208	4,239,122
^*,2	Biogen Inc.	9,169,553	2,594,892
	Amgen Inc.	9,506,255	2,021,505
	AstraZeneca plc ADR	26,685,968	1,602,759
	Thermo Fisher Scientific Inc.	2,485,129	1,419,829
^*	Boston Scientific Corp.	28,110,044	1,219,695

PRIMECAP Fund

		Shares	Market Value• ($000)
	Novartis AG ADR	11,382,725	930,879
	Roche Holding AG	1,761,013	642,717
	Bristol-Myers Squibb Co.	8,796,513	520,490
^*	BioMarin Pharmaceutical Inc.	6,200,439	479,232
^*	Elanco Animal Health Inc. (XNYS)	13,943,419	444,656
^*	BeiGene Ltd. ADR	1,143,340	415,032
	Abbott Laboratories	3,023,095	357,118
	Zimmer Biomet Holdings Inc.	1,865,030	272,966
	CVS Health Corp.	2,410,000	204,513
	Agilent Technologies Inc.	822,516	129,571
^*	IQVIA Holdings Inc.	442,224	105,930
	Stryker Corp.	389,200	102,640
	Medtronic plc	735,000	92,132
^*	Edwards Lifesciences Corp.	492,100	55,711
³	Siemens Healthineers AG	851,517	55,226
	Sanofi ADR	969,000	46,715
	Alcon Inc.	433,987	34,923
	GlaxoSmithKline plc ADR	548,000	20,939
	Danaher Corp.	54,452	16,577
^*	Waters Corp.	27,030	9,658
	Humana Inc.	19,776	7,696
	UnitedHealth Group Inc.	5,735	2,241
			18,045,364
Industrials (13.7%)
	FedEx Corp.	8,988,058	1,970,991
^*	Southwest Airlines Co.	27,252,878	1,401,615
	Siemens AG (Registered)	8,547,564	1,397,963
^*	Airbus SE	4,844,239	642,229
^*	United Airlines Holdings Inc.	13,081,203	622,273
	Union Pacific Corp.	2,606,600	510,920
	Caterpillar Inc.	2,616,968	502,379
^*	American Airlines Group Inc.	21,210,513	435,240
^*	Delta Air Lines Inc.	9,483,900	404,109
	United Parcel Service Inc. Class B	1,952,970	355,636
	Textron Inc.	3,708,000	258,855
^*	Alaska Air Group Inc.	4,246,500	248,845
^*	TransDigm Group Inc.	343,916	214,800
	Carrier Global Corp.	3,261,300	168,805
	Deere & Co.	400,000	134,028
^*	Lyft Inc. Class A	2,149,970	115,217
	Otis Worldwide Corp.	1,334,100	109,770
	General Dynamics Corp.	549,330	107,685
	AMETEK Inc.	864,750	107,238
	CSX Corp.	3,417,000	101,621
	Raytheon Technologies Corp.	720,000	61,891
	Rockwell Automation Inc.	177,000	52,045
	Honeywell International Inc.	240,000	50,947
	L3Harris Technologies Inc.	227,800	50,171
	Pentair plc	586,000	42,561
	nVent Electric plc	887,900	28,706
^*	Ryanair Holdings plc ADR	250,000	27,515

		Shares	Market Value• ($000)
^*	Uber Technologies Inc.	27,450	1,230
			10,125,285
Information Technology (28.6%)
	Microsoft Corp.	11,421,468	3,219,940
^*	Adobe Inc.	4,996,957	2,876,848
	Texas Instruments Inc.	12,703,192	2,441,681
	Micron Technology Inc.	25,959,974	1,842,639
	KLA Corp.	4,477,240	1,497,682
	Intel Corp.	21,885,787	1,166,075
	NetApp Inc.	9,363,871	840,501
	Intuit Inc.	1,452,700	783,746
¹	Telefonaktiebolaget LM Ericsson ADR	62,505,426	700,061
	NVIDIA Corp.	2,877,560	596,115
	Oracle Corp.	6,639,900	578,534
	QUALCOMM Inc.	4,273,586	551,207
	Analog Devices Inc.	2,755,160	461,434
	Visa Inc. Class A	1,931,100	430,153
	Hewlett Packard Enterprise Co.	30,173,716	429,975
	HP Inc.	15,172,426	415,118
^*	PayPal Holdings Inc.	1,233,470	320,961
	Cisco Systems Inc.	5,158,679	280,787
	Apple Inc.	1,850,000	261,775
	Entegris Inc.	2,021,822	254,547
^*	Splunk Inc.	1,387,501	200,785
	Applied Materials Inc.	1,452,300	186,955
	Corning Inc.	4,253,500	155,210
^*	Autodesk Inc.	464,200	132,376
^*,1	BlackBerry Ltd.	9,975,500	97,062
^*,2	Plantronics Inc.	3,645,100	93,716
	Mastercard Inc. Class A	211,600	73,569
	Fidelity National Information Services Inc.	550,000	66,924
^*	Palo Alto Networks Inc.	112,700	53,983
^*	Western Digital Corp.	695,000	39,226
^*	Keysight Technologies Inc.	233,000	38,280
^*	RingCentral Inc. Class A	133,950	29,134
^*	Dell Technologies Class C	276,000	28,715
^*	salesforce.com Inc.	100,400	27,230
	Infineon Technologies AG ADR	75,000	3,085
^*	Okta Inc.	3,500	831
^*	Arista Networks Inc.	1,000	344
			21,177,204
Materials (1.1%)
	Albemarle Corp.	1,220,235	267,195
	Glencore plc	31,604,371	148,670
	DuPont de Nemours Inc.	1,384,056	94,102
	Dow Inc.	1,610,217	92,684
	Freeport-McMoRan Inc.	2,764,900	89,942
	Linde plc	277,200	81,325
	Corteva Inc.	1,331,916	56,047
			829,965
Real Estate (0.0%)
	Alexandria Real Estate Equities Inc.	25,000	4,777
Total Common Stocks (Cost $25,325,190)			72,248,304

PRIMECAP Fund

		Shares	Market Value• ($000)
Temporary Cash Investments (2.4%)
Money Market Fund (2.4%)
^4,5	Vanguard Market Liquidity Fund, 0.068% (Cost $1,726,129)	17,262,566	1,726,256
Total Investments (100.1%) (Cost $27,051,319)			73,974,560
Other Assets and Liabilities—Net (-0.1%)			(37,233)
Net Assets (100%)			73,937,327
Cost is in $000.

•	See Note A in Notes to Financial Statements.
*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $92,262,000.
2	Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company.
3	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 September 30, 2021, the aggregate value was $55,226,000, representing 0.1% of net assets.
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	Collateral of $95,542,000 was received for securities on loan, of which $95,066,000 is held in Vanguard Market Liquidity Fund and $476,000 is held in cash.
	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 September 30, 2021


($000s, except shares and per-share amounts)	Amount
Assets
Investments in Securities, at Value
Unaffiliated Issuers (Cost $24,528,161)	69,048,956
Affiliated Issuers (Cost $2,523,158)	4,925,604
Total Investments in Securities	73,974,560
Investment in Vanguard	2,575
Cash	476
Foreign Currency, at Value (Cost $0)	51
Receivables for Investment Securities Sold	126,854
Receivables for Accrued Income	85,163
Receivables for Capital Shares Issued	13,554
Total Assets	74,203,233
Liabilities
Due to Custodian	94,684
Payables for Investment Securities Purchased	12,777
Collateral for Securities on Loan	95,542
Payables to Investment Advisor	34,169
Payables for Capital Shares Redeemed	24,494
Payables to Vanguard	4,240
Total Liabilities	265,906
Net Assets	73,937,327
At September 30, 2021, net assets consisted of:

Paid-in Capital	20,623,435
Total Distributable Earnings (Loss)	53,313,892
Net Assets	73,937,327

Investor Shares—Net Assets
Applicable to 34,841,714 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	5,878,428
Net Asset Value Per Share—Investor Shares	$168.72

Admiral Shares—Net Assets
Applicable to 389,093,797 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	68,058,899
Net Asset Value Per Share—Admiral Shares	$174.92

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

PRIMECAP Fund

Statement of Operations


	Year Ended September 30, 2021
	($000)
Investment Income
Income
Dividends—Unaffiliated Issuers¹	765,261
Dividends—Affiliated Issuers	39,777
Interest—Affiliated Issuers	1,041
Securities Lending—Net	1,597
Total Income	807,676
Expenses
Investment Advisory Fees—Note B	130,617
The Vanguard Group—Note C
Management and Administrative—Investor Shares	12,121
Management and Administrative—Admiral Shares	82,108
Marketing and Distribution—Investor Shares	371
Marketing and Distribution—Admiral Shares	1,625
Custodian Fees	3,034
Auditing Fees	32
Shareholders’ Reports—Investor Shares	40
Shareholders’ Reports—Admiral Shares	135
Trustees’ Fees and Expenses	52
Total Expenses	230,135
Net Investment Income	577,541
Realized Net Gain (Loss)
Investment Securities Sold—Unaffiliated Issuers	6,822,136
Investment Securities Sold—Affiliated Issuers	440,815
Foreign Currencies	(159)
Realized Net Gain (Loss)	7,262,792
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers	9,463,440
Investment Securities—Affiliated Issuers	928,633
Foreign Currencies	(263)
Change in Unrealized Appreciation (Depreciation)	10,391,810
Net Increase (Decrease) in Net Assets Resulting from Operations	18,232,143

1	Dividends are net of foreign withholding taxes of $20,434,000.

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

PRIMECAP Fund

Statement of Changes in Net Assets


	Year Ended September 30,
	2021 ($000)	2020 ($000)
	2021 ($000)	2020 ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	577,541	875,564
Realized Net Gain (Loss)	7,262,792	5,074,768
Change in Unrealized Appreciation (Depreciation)	10,391,810	2,803,462
Net Increase (Decrease) in Net Assets Resulting from Operations	18,232,143	8,753,794
Distributions
Investor Shares	(551,613)	(444,045)
Admiral Shares	(5,760,196)	(4,239,627)
Total Distributions	(6,311,809)	(4,683,672)
Capital Share Transactions
Investor Shares	(897,885)	(803,660)
Admiral Shares	(1,408,182)	(2,214,671)
Net Increase (Decrease) from Capital Share Transactions	(2,306,067)	(3,018,331)
Total Increase (Decrease)	9,614,267	1,051,791
Net Assets
Beginning of Period	64,323,060	63,271,269
End of Period	73,937,327	64,323,060

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

PRIMECAP Fund

Financial Highlights

Investor Shares
For a Share Outstanding Throughout Each Period	Year Ended September 30,
For a Share Outstanding Throughout Each Period	2021	2020	2019	2018	2017
Net Asset Value, Beginning of Period	$142.86	$133.12	$147.61	$126.84	$107.60
Investment Operations
Net Investment Income¹	1.183	1.745	1.715	1.474	1.398
Net Realized and Unrealized Gain (Loss) on Investments	39.134	17.947	(6.495)	26.529	23.145
Total from Investment Operations	40.317	19.692	(4.780)	28.003	24.543
Distributions
Dividends from Net Investment Income	(1.542)	(1.690)	(1.470)	(1.400)	(1.356)
Distributions from Realized Capital Gains	(12.915)	(8.262)	(8.240)	(5.833)	(3.947)
Total Distributions	(14.457)	(9.952)	(9.710)	(7.233)	(5.303)
Net Asset Value, End of Period	$168.72	$142.86	$133.12	$147.61	$126.84
Total Return²	29.74%	15.05%	-2.41%	22.86%	23.75%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,878	$5,697	$6,095	$7,126	$7,699
Ratio of Total Expenses to Average Net Assets	0.38%	0.38%	0.38%	0.38%	0.39%
Ratio of Net Investment Income to Average Net Assets	0.73%	1.31%	1.32%	1.08%	1.22%
Portfolio Turnover Rate	5%	6%	5%	8%	8%

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
For a Share Outstanding Throughout Each Period	Year Ended September 30,
For a Share Outstanding Throughout Each Period	2021	2020	2019	2018	2017
Net Asset Value, Beginning of Period	$148.12	$138.02	$153.09	$131.45	$111.52
Investment Operations
Net Investment Income¹	1.345	1.920	1.880	1.622	1.528
Net Realized and Unrealized Gain (Loss) on Investments	40.564	18.600	(6.756)	27.508	23.981
Total from Investment Operations	41.909	20.520	(4.876)	29.130	25.509
Distributions
Dividends from Net Investment Income	(1.716)	(1.853)	(1.647)	(1.444)	(1.491)
Distributions from Realized Capital Gains	(13.393)	(8.567)	(8.547)	(6.046)	(4.088)
Total Distributions	(15.109)	(10.420)	(10.194)	(7.490)	(5.579)
Net Asset Value, End of Period	$174.92	$148.12	$138.02	$153.09	$131.45
Total Return²	29.83%	15.13%	-2.34%	22.95%	23.83%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$68,059	$58,626	$57,177	$62,361	$50,615
Ratio of Total Expenses to Average Net Assets	0.31%	0.31%	0.31%	0.31%	0.32%
Ratio of Net Investment Income to Average Net Assets	0.80%	1.39%	1.39%	1.15%	1.29%
Portfolio Turnover Rate	5%	6%	5%	8%	8%

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 alternate rate agreed to by the fund and Vanguard.

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

For the year ended September 30, 2021, the fund did not utilize the credit facilities or the Interfund Lending Program.

PRIMECAP Fund

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

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

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 year ended September 30, 2021, the investment advisory fee represented an effective annual basic rate of 0.18% of the fund’s average net assets.

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 September 30, 2021, the fund had contributed to Vanguard capital in the amount of $2,575,000, representing less than 0.01% of the fund’s net assets and 1.03% of Vanguard’s capital received pursuant to the FSA. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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 September 30, 2021, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	69,305,093	2,943,211	—	72,248,304
Temporary Cash Investments	1,726,256	—	—	1,726,256
Total	71,031,349	2,943,211	—	73,974,560

Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts:

	Amount ($000)
Paid-in Capital	362,813
Total Distributable Earnings (Loss)	(362,813)

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the deferral of losses from wash sales. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

	Amount ($000)
Undistributed Ordinary Income	693,161
Undistributed Long-Term Gains	5,698,772
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	46,921,959

The tax character of distributions paid was as follows:

	Year Ended September 30,
	2021 Amount ($000)	2020 Amount ($000)
Ordinary Income*	722,975	925,147
Long-Term Capital Gains	5,588,834	3,758,525
Total	6,311,809	4,683,672

*	Includes short-term capital gains, if any.

PRIMECAP Fund

As of September 30, 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	27,053,643
Gross Unrealized Appreciation	48,536,889
Gross Unrealized Depreciation	(1,615,972)
Net Unrealized Appreciation (Depreciation)	46,920,917

F.	During the year ended September 30, 2021, the fund purchased $3,535,472,000 of investment securities and sold $12,169,053,000 of investment securities, other than temporary cash investments.
G.	Capital share transactions for each class of shares were:

	Year Ended September 30,
	2021		2020
	Amount ($000)	Shares (000)	Amount ($000)	Shares (000)
Investor Shares
Issued	348,874	2,168	547,781	4,262
Issued in Lieu of Cash Distributions	536,328	3,657	432,110	3,129
Redeemed	(1,783,087)	(10,861)	(1,783,551)	(13,296)
Net Increase (Decrease)—Investor Shares	(897,885)	(5,036)	(803,660)	(5,905)
Admiral Shares
Issued	3,667,358	21,693	2,426,834	17,481
Issued in Lieu of Cash Distributions	5,395,981	35,507	3,984,207	27,842
Redeemed	(10,471,521)	(63,912)	(8,625,712)	(63,781)
Net Increase (Decrease)—Admiral Shares	(1,408,182)	(6,712)	(2,214,671)	(18,458)

PRIMECAP Fund

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
	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)	Sep. 30, 2021 Market Value ($000)
Biogen Inc.	2,586,564	77,760	79,078	15,802	(6,156)	—	—	2,594,892
Mattel Inc.	314,153	12,815	3,025	(111)	186,908	—	—	510,740
NetApp Inc.	554,573	—	249,140	124,930	410,138	22,401	—	NA¹
Plantronics Inc.	43,480	—	342	(810)	51,388	—	—	93,716
Southwest Airlines Co.	1,283,631	—	383,072	255,800	245,256	—	—	NA¹
Vanguard Market Liquidity Fund	1,421,884	NA²	NA²	65	(273)	1,041	—	1,726,256
Whirlpool Corp.	727,169	1,888	203,411	45,139	41,372	17,376	—	NA¹
Total	6,931,454			440,815	928,633	40,818	—	4,925,604

1	Not applicable—at September 30, 2021, the security was still held, but the issuer was no longer an affiliated company of the fund.
2	Not applicable—purchases and sales are for temporary cash investment purposes.

I.	Management has determined that no events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Vanguard Chester Funds and Shareholders of Vanguard PRIMECAP Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Vanguard PRIMECAP Fund (one of the funds constituting Vanguard Chester Funds, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statement of changes in net assets for each of the two years in the period ended September 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2021 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended September 30, 2021 and the financial highlights for each of the five years in the period ended September 30, 2021 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from the transfer agent or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 19, 2021

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

Special 2021 tax information (unaudited) for Vanguard PRIMECAP Fund

This information for the fiscal year ended September 30, 2021, is included pursuant to provisions of the Internal Revenue Code.

The fund distributed $5,921,941,000 as capital gain dividends (20% rate gain distributions) to shareholders during the fiscal year.

For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund are qualified short-term capital gains.

The fund distributed $722,975,000 of qualified dividend income to shareholders during the fiscal year.

For corporate shareholders, 71.6% of investment income (dividend income plus short-term gains, if any) qualifies for the dividends-received deduction.

Trustees Approve Advisory Arrangement

The board of trustees of Vanguard PRIMECAP Fund has renewed the fund’s investment advisory arrangement with PRIMECAP Management Company (PRIMECAP). The board determined that renewing the fund’s advisory arrangement was in the best interests of the fund and its shareholders.

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

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

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

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

Nature, extent, and quality of services

The board reviewed the quality of the fund’s investment management services over both the short and long term, and took into account the organizational depth and stability of the advisor. The board considered that PRIMECAP, founded in 1983, is recognized for its long-term approach to growth equity investing. Five experienced portfolio managers are responsible for separate subportfolios, and each portfolio manager employs a fundamental, research-driven approach in seeking to identify companies with long-term growth potential that the market has yet to appreciate. The multi-counselor approach employed by PRIMECAP is designed to emphasize individual decision-making and enable the portfolio managers to invest in their highest-conviction ideas. The advisor’s fundamental research focuses on developing opinions independent from Wall Street’s consensus and maintaining a long-term horizon. PRIMECAP has managed the fund since its inception in 1984.

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

Investment performance

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

Cost

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

The board did not consider the profitability of PRIMECAP in determining whether to approve the advisory fee, because PRIMECAP is independent of Vanguard and the advisory fee is the result of arm’s-length negotiations.

The benefit of economies of scale

The board concluded that the fund’s shareholders benefit from economies of scale because of breakpoints in the fund’s advisory fee schedule. The breakpoints reduce the effective rate of the fee as the fund’s assets increase.

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

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.

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 212 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

Interested Trustee¹

Mortimer J. Buckley

Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (2018–present) of Vanguard; chief executive officer, president, and trustee (2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Chairman of the board (2011–2017) and trustee (2009–2017) of the Children’s Hospital of Philadelphia; and trustee (2018–present) and vice chair (2019–present) of The Shipley School.

Independent Trustees

Emerson U. Fullwood

America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Director of SPX FLOW, Inc. (multi-industry manufacturing). Director of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, and Roberts Wesleyan College. Trustee of the University of Rochester.

Amy Gutmann

Born in 1949. Trustee since June 2006. Principal occupation(s) during the past five years and other experience: president (2004–present) of the University of Pennsylvania. Christopher H. Browne Distinguished Professor of Political Science, School of Arts and Sciences, and professor of communication, Annenberg School for Communication, with secondary faculty appointments in the Department of Philosophy, School of Arts and Sciences, and at the Graduate School of Education, University of Pennsylvania.

F. Joseph Loughrey

1 Mr. Buckley is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

Member of the advisory council for the College of Arts and Letters and chair of the advisory board to the Kellogg Institute for International Studies, both at the University of Notre Dame. Chairman of the board of Saint Anselm College.

Mark Loughridge

Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM’s Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

Scott C. Malpass

Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (retired June 2020) and vice president (retired June 2020) of the University of Notre Dame. Assistant professor (retired June 2020) of finance at the Mendoza College of Business, University of Notre Dame, and member of the Notre Dame 403(b) Investment Committee. Member of the board of Catholic Investment Services, Inc. (investment advisors) and the board of superintendence of the Institute for the Works of Religion.

Deanna Mulligan

Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: board chair (2020), chief executive officer (2011–2020), and president (2010–2019) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of the Guardian Life Insurance Company of America. Member of the board of the Economic Club of New York. Trustee of the Partnership for New York City (business leadership), Chief Executives for Corporate Purpose, NewYork-Presbyterian Hospital, and the Bruce Museum (arts and science). Member of the Advisory Council for the Stanford Graduate School of Business.

André F. Perold

Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and co-managing partner of HighVista Strategies (private investment firm). Member of the board

(2018–present) of RIT Capital Partners (investment firm). Member of the investment committee of Partners Health Care System.

Sarah Bloom Raskin

Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Professor (2020–present), Distinguished Fellow of the Global Financial Markets Center (2020–present), and Rubenstein Fellow (2017–2020) at Duke University. Trustee (2017–present) of Amherst College and member of Amherst College Investment Committee (2019–present). Member of the Regenerative Crisis Response Committee (2020–present).

David A. Thomas

Born in 1956. Trustee since July 2021. Principal occupation(s) during the past five years and other experience: president of Morehouse College (2018–present). Professor of business administration, emeritus at Harvard University (2017–2018). Dean (2011–2016) and professor of management (2016–2017) at the Georgetown University McDonough School of Business. Director of DTE Energy Company (2013–present). Trustee of Common Fund (2019–present).

Peter F. Volanakis

Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Chairman of the board of trustees of Colby-Sawyer College. Member of the BMW Group Mobility Council.

Executive Officers

John Bendl

Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2019–present) of each of the investment companies served by Vanguard. Chief accounting officer, treasurer, and controller of Vanguard (2017–present). Partner (2003–2016) at KPMG (audit, tax, and advisory services).

Christine M. Buchanan

Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Treasurer (2017–present) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG (audit, tax, and advisory services).

David Cermak

Born in 1960. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Finance director (2019–present) of each of the investment companies served by Vanguard. Managing director and head (2017–present) of Vanguard Investments Singapore. Managing director and head (2017–2019) of Vanguard Investments Hong Kong. Representative director and head (2014–2017) of Vanguard Investments Japan.

John Galloway

Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (September 2020–present) of each of the investment companies served by Vanguard. Head of Investor Advocacy (February 2020–present) and head of Marketing Strategy and Planning (2017–2020) at Vanguard. Deputy assistant to the President of the United States (2015).

Peter Mahoney

Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

Anne E. Robinson

Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express.

Michael Rollings

Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

John E. Schadl

Born in 1972. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (2019–present) of Vanguard and of each of the investment companies served by Vanguard. Assistant vice president (2019–present) of Vanguard Marketing Corporation.

Vanguard Senior Management Team

Matthew Benchener	Thomas M. Rampulla
Joseph Brennan	Karin A. Risi
Mortimer J. Buckley	Anne E. Robinson
Gregory Davis	Michael Rollings
John James	Nitin Tandon
John T. Marcante	Lauren Valente
Chris D. Mclsaac

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 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.

All comparative mutual fund data are from 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, 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.

Q590 112021

Annual Report | September 30, 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

Your Fund’s Performance at a Glance	1
About Your Fund's Expenses	2
Target Retirement Income Fund	4
Target Retirement 2015 Fund	17
Target Retirement 2020 Fund	30
Target Retirement 2025 Fund	43
Target Retirement 2030 Fund	56
Target Retirement 2035 Fund	69

•	For the 12 months ended September 30, 2021, returns for the six Vanguard Target Retirement Funds covered in this report ranged from 8.48% for the Target Retirement Income Fund to 20.60% for the Target Retirement 2035 Fund. (The funds with target dates of 2040 through 2065 are covered in a separate report).
•	The global economy rebounded faster than many had expected after the sharp pandemic-induced contraction in the spring of 2020. Stock returns were strong and bond yields moved broadly higher.
•	Vanguard Target Retirement Funds are designed to reach an allocation of 70% bonds and 30% stocks within seven years after their target dates. The funds invest all of their assets in Vanguard index funds that seek to match the performance of broad stock and bond market indexes.
•	For the 10 years ended September 30, the funds’ average annual returns ranged from 6.08% for the Target Retirement Income Fund to 11.54% for the Target Retirement 2035 Fund.
•	In late September, Vanguard announced plans to merge each of the Vanguard Institutional Target Retirement Funds into its corresponding Target Retirement Fund. The mergers are scheduled to be completed in February 2022.

Vanguard Total Bond Market II Index Fund Investor Shares	37.4%
Vanguard Total Stock Market Index Fund Investor Shares	17.3
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	17.1
Vanguard Total International Bond Index Fund Investor Shares	16.1
Vanguard Total International Stock Index Fund Investor Shares	11.9
Vanguard Total International Bond II Index Fund Investor Shares	0.2

		Shares	Market Value• ($000)
Investment Companies (98.7%)
U.S. Stock Fund (17.1%)
	Vanguard Total Stock Market Index Fund Investor Shares	25,775,268	2,785,275
International Stock Fund (11.8%)
	Vanguard Total International Stock Index Fund Investor Shares	94,300,603	1,917,131
U.S. Bond Funds (53.8%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	541,978,110	6,026,797
	Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	106,360,940	2,754,748
			8,781,545
International Bond Funds (16.0%)
	Vanguard Total International Bond Index Fund Investor Shares	227,546,447	2,591,754
¹	Vanguard Total International Bond II Index Fund Investor Shares	2,631,079	26,337
			2,618,091
Total Investment Companies (Cost $12,429,893)			16,102,042
Temporary Cash Investments (1.2%)
Money Market Fund (1.2%)
¹	Vanguard Market Liquidity Fund, 0.068% (Cost $199,805)	1,998,148	199,815
Total Investments (99.9%) (Cost $12,629,698)			16,301,857
Other Assets and Liabilities—Net (0.1%)			19,748
Net Assets (100%)			16,321,605

•	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	December 2021	890	117,132	(1,423)
E-mini S&P 500 Index	December 2021	448	96,270	(3,250)
				(4,673)

	Amount ($000)
Paid-in Capital	140,955
Total Distributable Earnings (Loss)	(140,955)

	Amount ($000)
Undistributed Ordinary Income	50,993
Undistributed Long-Term Gains	840,576
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	3,672,159

	Year Ended September 30,
	2021 Amount ($000)	2020 Amount ($000)
Ordinary Income*	335,548	378,668
Long-Term Capital Gains	274,442	—
Total	609,990	378,668

	Amount ($000)
Tax Cost	12,629,698
Gross Unrealized Appreciation	3,678,803
Gross Unrealized Depreciation	(6,644)
Net Unrealized Appreciation (Depreciation)	3,672,159

	Year Ended September 30,
	2021 Shares (000)	2020 Shares (000)
	2021 Shares (000)	2020 Shares (000)
Issued	204,713	216,355
Issued in Lieu of Cash Distributions	38,362	25,681
Redeemed	(380,863)	(259,849)
Net Increase (Decrease) in Shares Outstanding	(137,788)	(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)	Sep. 30, 2021 Market Value ($000)
Vanguard Market Liquidity Fund	224,508	NA¹	NA¹	—	—	134	—	199,815
Vanguard Short-Term Inflation-Protected Securities Index Fund	2,953,727	161,855	420,732	11,064	48,834	94,623	—	2,754,748
Vanguard Total Bond Market II Index Fund	6,486,928	468,786	682,193	(21,689)	(225,035)	114,756	60,607	6,026,797
Vanguard Total International Bond Index Fund	2,736,237	157,773	243,343	(4,316)	(54,597)	22,771	4,352	2,591,754
Vanguard Total International Bond II Index Fund	—	26,493	—	—	(156)	31	—	26,337
Vanguard Total International Stock Index Fund	2,107,062	59,465	690,059	145,326	295,337	52,234	—	1,917,131
Vanguard Total Stock Market Index Fund	3,053,704	142,419	1,262,361	821,830	29,683	37,853	—	2,785,275
Total	17,562,166	1,016,791	3,298,688	952,215	94,066	322,402	64,959	16,301,857

Vanguard Total Bond Market II Index Fund Investor Shares	36.5%
Vanguard Total Stock Market Index Fund Investor Shares	18.7
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	16.2
Vanguard Total International Bond Index Fund Investor Shares	15.7
Vanguard Total International Stock Index Fund Investor Shares	12.8
Vanguard Total International Bond II Index Fund Investor Shares	0.1

		Shares	Market Value• ($000)
Investment Companies (98.6%)
U.S. Stock Fund (18.4%)
	Vanguard Total Stock Market Index Fund Investor Shares	22,115,939	2,389,848
International Stock Fund (12.6%)
	Vanguard Total International Stock Index Fund Investor Shares	80,489,381	1,636,349
U.S. Bond Funds (52.0%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	419,905,785	4,669,352
	Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	79,798,565	2,066,783
			6,736,135
International Bond Funds (15.6%)
	Vanguard Total International Bond Index Fund Investor Shares	176,067,208	2,005,406
¹	Vanguard Total International Bond II Index Fund Investor Shares	2,003,206	20,052
			2,025,458
Total Investment Companies (Cost $9,521,738)			12,787,790
Temporary Cash Investments (1.3%)
Money Market Fund (1.3%)
¹	Vanguard Market Liquidity Fund, 0.068% (Cost $161,511)	1,615,162	161,516
Total Investments (99.9%) (Cost $9,683,249)			12,949,306
Other Assets and Liabilities—Net (0.1%)			17,817
Net Assets (100%)			12,967,123

	Amount ($000)
Paid-in Capital	205,474
Total Distributable Earnings (Loss)	(205,474)

	Amount ($000)
Undistributed Ordinary Income	154,586
Undistributed Long-Term Gains	1,172,558
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	3,266,057

	Amount ($000)
Tax Cost	9,683,249
Gross Unrealized Appreciation	3,266,287
Gross Unrealized Depreciation	(230)
Net Unrealized Appreciation (Depreciation)	3,266,057

Vanguard Total Bond Market II Index Fund Investor Shares	30.8%
Vanguard Total Stock Market Index Fund Investor Shares	27.4
Vanguard Total International Stock Index Fund Investor Shares	18.7
Vanguard Total International Bond Index Fund Investor Shares	13.2
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	9.7
Vanguard Total International Bond II Index Fund Investor Shares	0.2

	Amount ($000)
Paid-in Capital	764,781
Total Distributable Earnings (Loss)	(764,781)

	Amount ($000)
Undistributed Ordinary Income	290,199
Undistributed Long-Term Gains	3,244,672
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	7,753,921

	Amount ($000)
Tax Cost	17,613,281
Gross Unrealized Appreciation	7,754,578
Gross Unrealized Depreciation	(657)
Net Unrealized Appreciation (Depreciation)	7,753,921

Vanguard Total Stock Market Index Fund Investor Shares	34.2%
Vanguard Total Bond Market II Index Fund Investor Shares	28.7
Vanguard Total International Stock Index Fund Investor Shares	23.2
Vanguard Total International Bond Index Fund Investor Shares	12.1
Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares	1.4
Vanguard Total International Bond II Index Fund Investor Shares	0.4

	Amount ($000)
Paid-in Capital	932,436
Total Distributable Earnings (Loss)	(932,436)

	Amount ($000)
Undistributed Ordinary Income	412,498
Undistributed Long-Term Gains	4,605,280
Capital Loss Carryforwards	—
Qualified Late-Year Losses	—
Net Unrealized Gains (Losses)	14,443,683

	Amount ($000)
Tax Cost	26,796,614
Gross Unrealized Appreciation	14,467,067
Gross Unrealized Depreciation	(23,384)
Net Unrealized Appreciation (Depreciation)	14,443,683

Vanguard Total Stock Market Index Fund Investor Shares	39.1%
Vanguard Total International Stock Index Fund Investor Shares	26.5
Vanguard Total Bond Market II Index Fund Investor Shares	23.8
Vanguard Total International Bond Index Fund Investor Shares	10.3
Vanguard Total International Bond II Index Fund Investor Shares	0.3

		Shares	Market Value• ($000)
Investment Companies (98.8%)
U.S. Stock Fund (38.6%)
	Vanguard Total Stock Market Index Fund Investor Shares	131,964,514	14,260,086
International Stock Fund (26.2%)
	Vanguard Total International Stock Index Fund Investor Shares	476,463,020	9,686,493
U.S. Bond Fund (23.5%)
¹	Vanguard Total Bond Market II Index Fund Investor Shares	779,905,000	8,672,543
International Bond Funds (10.5%)
	Vanguard Total International Bond Index Fund Investor Shares	328,882,591	3,745,973
¹	Vanguard Total International Bond II Index Fund Investor Shares	12,019,696	120,317
			3,866,290
Total Investment Companies (Cost $22,497,035)			36,485,412
Temporary Cash Investments (1.2%)
Money Market Fund (1.2%)
¹	Vanguard Market Liquidity Fund, 0.068% (Cost $442,394)	4,424,086	442,408
Total Investments (100.0%) (Cost $22,939,429)			36,927,820
Other Assets and Liabilities—Net (0.0%)			18,304
Net Assets (100%)			36,946,124

	Amount ($000)
Paid-in Capital	978,991
Total Distributable Earnings (Loss)	(978,991)

	Amount ($000)
Undistributed Ordinary Income	367,861
Undistributed Long-Term Gains	4,544,907
Capital Loss Carryforwards	—
Qualified Late-Year Losses	(37,245)
Net Unrealized Gains (Losses)	13,988,391

	Amount ($000)
Tax Cost	22,939,429
Gross Unrealized Appreciation	14,011,921
Gross Unrealized Depreciation	(23,530)
Net Unrealized Appreciation (Depreciation)	13,988,391

Vanguard Total Stock Market Index Fund Investor Shares	43.6%
Vanguard Total International Stock Index Fund Investor Shares	29.6
Vanguard Total Bond Market II Index Fund Investor Shares	18.5
Vanguard Total International Bond Index Fund Investor Shares	8.0
Vanguard Total International Bond II Index Fund Investor Shares	0.3